hands 1 strategies for hands exploitation tommaso ricci, eunics s.p.a. hands workshop h elping an...

1

HANDS

Strategies for HANDS exploitation

Tommaso Ricci, Eunics S.p.A.

HANDS Workshop

HELPING

ANSWERS

DECISION

SERVICE

Bologna, June 29, 2007

2 Workshop Bologna – June 29, 2007

Table of Contents

1. Main issues for HANDS dissemination

2. Marketing Analysis– HANDS positioning– Business Model– Offer Definition – EU Market Evaluation

3. Deployment plan

4. Conclusions


1) Main issues for HANDS dissemination

Q:What is the business value of the HANDS project? Q: How to deliver HANDS for the first three years after

the end of the project? Q: Who will distribute and use HANDS? Q: What results/benefits are expected in short, medium

and long term?

The Business Model and Deployment Plan


Table of Contents

1. Main issues for HANDS exploitation


3. Deployment plan

4. Conclusions


STARTING POINTS

The HANDS Consortium has endorsed the strategic decision to make the HANDS software freely available, under general Open Source conditions.

Anyway, there are a number of ways in which commercial services can add value to it and constitute a return of investments for Hands Partners.

Therefore, a detailed set of professional services and a corresponding price-list has been defined in the Hands Product catalogue


MARKETING ANALYSIS

Marketing analysis includes :– Target Market definition – Hands vs Competitors positioning– Offer definition, including services and related price-

list– Emphasis on how services have to be deployed

(Business Process)– and how to position HANDS on the EU market


MARKETING ANALYSIS Target Market

Initially, our main target groups will be EU Public Administrations and Utilities, because:

PB are confident in OSS HANDS, as an OSS application, has no market

competitors, in this sector Leverage Experience and Best Practice related

to PBs application domains European presence


HANDS POSITIONINGvs COMPETITORS

HANDS characteristics put our proposal in a unique position:– NLP technology-based– eGov/eDemo service– Open Source


Business Model


Business Process

HANDS defined two Business Processes; three main actors are involved in the HANDS service delivery:

– Commercial partner(s): supplier(s) for HANDS (technology and service providers).

– Public Bodies: Public Authorities or Utilities, who will Purchase HANDS service to Commercial partners.

– Final Users: The real users of the service, who will use HANDS provided by Public Bodies.

Professional Services will be provided as part of Business Process #1.

The main assumption for Business Process #2 is that services provided by PBs to citizens/customers are free of charge.


THE BUSINESS MODEL

Commercial Partners will provide:– HANDS SW free distribution– A set of related Professional Services– Service Hosting, as ASP

Distributors :– Country Partner– Sales Partner


Professional Services (on site / remote):– Installation on PB’s site– Maintenance (help desk, bug fix, SW upgrade)

through Web, Email, phone, ... – Training activities – Consultancy

Offer Definition:SERVICES CATALOGUE


Offer Definition ASP services

ASP SERVICES (formerly HOSTING) are addressed to those PBs with no ICT infrastructure or requiring a Test Plant; the service fee has been separated into two different voices:

A start-up fee (only for the first year), to install HANDS in commercial partners’ data centre and configuring with logo, fonts and colours of the customers (light customisation).

A yearly fee (including the first one), to guarantee the HANDS availability. It includes also the access to a technical and methodology course, the online support (help-desk, mail system, web forms, etc.), the backup activities for customer’s database, etc.


A BUNDLE is a common set of services from the Catalogue, that fits, at best, different customers’ needs

BASIC BUNDLE– Remote Installation – Distance learning ICT Training– Distance learning Methodology Training– Maintenance (help-desk, bug fixing, etc.)

PREMIUM BUNDLE: As Basic plus 6 days for on-site activities (customisation, onsite courses, etc)

SUPERIOR BUNDLE: As Basic plus 15 days for on-site activities (customisation, onsite courses, etc)

Offer Definition: BUNDLES


Catalogue of Professional Services

ASP services

Includes

Basic B

undle

Bundles

•Superior/Advanced Superior•Premium/ Advanced Premium•Advanced•Basic

OFFER DEFINITION

•Superior•Premium•Basic

Basis for Bundle


EU MARKET Evaluation

•PB’s Market Segmentation•A questionnaire sent by the HANDS Consortium reported:

• WHAT??????•Results from questionnaires have been used to validate the Sales Funnels

•Pilot Testing Sessions performed directly by some PBs reported:•useful feedbacks in terms of HANDS usability and benefits for final users

•Analisys of a sample of Italian utilities; it showed that:•Prospective customers should already have a proper knowledge base•“Big Utilities” IS the market for HANDS•The ASP product IS the product to be promoted


EU Market Evaluation



Market segmentation of Public Administrations and Utilities has been identified from:– market data sources for PAs in Germay, Italy and

UK– market data sources for Multi-Utilities (Electricity,

gas and water supply) by EUROSTAT (updated to Feb 2007)


Market Segmentation

Market Segmentation activity has been made to define a relation between the Public Administrations/Utilities dimensions and HANDS offer. The results are quite similar for Italy and Germany, both for PAs and for Utilities, in terms of absolute and relative numbers, whereas the results are very different for UK.

– About PAs: Germany and Italy have a large number of small and medium

PAs, a small number of big and metropolitan PAs. UK has a large number of big and metropolitan PAs, and small

number of small and medium PAs.– About Multi-Utilities:

Germany and Italy have a large number of small and medium utilities, a small number of big utilities.

In United Kingdom the number of Utilities is almost 10 times lower than in other 2 countries. The analysis showed that in UK there are few Utilities, but with high revenues.


MKGT PLAN - Questionnaire

To support the MKGT analysis HANDS consortium decided to prepare and distribute a specific questionnaire addressed to other Public Administrations

. HANDS’ partners sent about 200 questionnaires and received 62

answers. This is a very good result considering the type of communication (a questionnaire via e-mail, no phone calls or personal contacts), the limited informative material, …

Most interesting results to be considered are:– The number of PAs which have already installed an NLP tools is 8

above 62 (13%) and inside these, 7 PAs (87%) are fully satisfied.– 54 PAs (87%) have already planned investments to improve citizens

and customers relations and 45 of them (83%) have planned investments in the next two years.

– Finally and most important, 49 PAs above 62 (79%) confirmed that HANDS could support their investment strategy; an additional 16 asked for more detailed information.


Table of Contents



3. Deployment plan

4. Conclusions


3) DEPLOYMENT PLAN

1. HANDS Group definition– Hands Partner– Distributors – Partnership Program– Web Site

2. Marketing Strategy for 1-3 years

3. Financial Plan

4. Future Development Plan

5. Promotional Plan


Hands Group : some definitions

HANDS Group: the proposed federated network, created by the HANDS Project Partners after the end of the HANDS Project, in charge of disseminating HANDS around Europe

HANDS Distributors: Country Partner/Sales Partner HANDS Customers: the Public Bodies who will request HANDS

Professional Services to Commercial Partners.

HANDS Enhancements: the new software to be developed for future extensions and increase HANDS Features. These enhancements could be developed by any Partner and will be returned free-of-charge to HANDS Group.


HANDS GROUP:Distributors

There are various distributors’ roles: disseminating HANDS, selling the HANDS professional services, supporting customers, etc.

To support the different levels of participation they are able to perform, the following two partnership programs will be proposed:

Country Partners: companies who want to forge a strategic and unique relationship with Commercial partners to disseminate HANDS and to deliver HANDS professional services in their countries or regions. This level of partners will be able to manage other distributors or developers at country level.

Sales Partners: companies who will only disseminate HANDS and sell HANDS professional services and products, to be delivered by Commercial partners or by other Country Partners.

Companies who want access to a specific program need to be certified, following training courses and demonstrating their ability in supporting and managing Public Administrations and Multi-Utilities as customers.


The HANDS Group will be finalized as a Community of Best practices and Developers

A “deployment agreement” will be signed by HANDS Group Community in order to identify simple rules for managing the overall activity

Professional Services will be delivered mainly by Regulus/EUNICS or by Distributors in their countries

Each distributor will fix its prices and SLA of the services, together with Regulus/EUNICS, according to country and market values; a “distributor agreement” will be signed to support the business in Europe

Expert Partners (e.g. Eurocities, Napier, HANDS Pilot Partner) will support the HANDS dissemination and future Enhancement

The Deployment PlanHANDS GROUP


CommercialPartners

Regulus

Eunics

ExpertPartners

Eurocities

Napier

Pilot Partners

Bologna

Edinburgh

Enìa

Saarbruecken

HANDSGroupDeployment

Agreement TechnicalEnhancers

Distributors

NewCustomers

HANDSGroup

THE HANDS GROUP


Hands Group

The HANDS Group will act as a “Community” and allow people to collaborate and share information

– The Website will allow: Demonstrations, HANDS SW download, request for professional services, trouble notifications, technical support, etc

– HANDS Group will be a “Sharing Community” where not only the software will be shared, but also PBs experiences and databases will be made available.

– HANDS Group will be a “Qualified Community” because each subscriber will have to share or “to add value” for the community in terms of: software, databases, best practice, knowledge, etc.

– Commercial Partners will administer and supervise the Community contributions on the web


HANDS endorses the actions suggested by the EC in order to deliver usable and sustainable e-services for citizen.

The HANDS goals are:to respond positively to citizen and customer demand for more usable servicesto extend accessibility of services through more support and help on websitesto provide accessible information in response to enquiriesto reduce ICT costs by using OSS and already prepared documentationto provide services ready to be used anytime and anywhere on different delivery channels

THE BUSINESS MODEL Proposition:EU Market Evaluation


Based on Market Segmentation, Questionnaire results, Pilot Evaluation,…

HANDS adopted a 1-3 year Strategy for selling Hands Services in some European Countries

THE BUSINESS MODEL Proposition:EU Market Evaluation


Marketing Strategy for Years 1-3

Target Markets Characteristics Priorities

Year 1 Germany High volume Customers

High expected penetration

Language ready

Identify Country Partner to develop and implement Strategic Sales Plan.

Italy High volume Customers


Language ready

Managed directly by the present HANDS commercial Partners.

UK Important market but low volume of Customers

Very low penetration expected

Language ready

Market not planned at present.

Inspect the possibility to develop Strategic Marketing and Sales Plan to be implemented in subsequent years.

Year 2 Austria

Interesting volume Customers

Medium expected penetration

Language ready, to be tuned

Managed directly by the present HANDS commercial Partners.

Ireland Low volume Customers

No expected penetration

English language ready, Gaelic tbp


Inspect the possibility to develop Strategic Marketing and Sales Plan following the UK market plan.


Marketing Strategy for Years 1-3

Year 3 France High volume Customers


Language to be developed

Identify a Sales Partner in France.

Technical services provided directly by the present HANDS commercial Partner. Managed directly by the present HANDS commercial Partner

Belgium Interesting volume Customers

Low expected penetration

Flemish to be completed


Inspect the possibility to develop Strategic Marketing and Sales Plan following the France market plan.

The Netherlands Interesting volume Customers

Low expected penetration

Dutch to be developed


Inspect the possibility to develop Strategic Marketing and Sales Plan following the France market plan.


SALES FUNNEL

Discovering

Qualifying

50%

Evaluating

25%

Ordering50%

Recurring Customers

Communicating33%

HANDS50%

Offering BusinessProducts

0

50

100

150

200

250

Pessimistic Realistic Optimistic

First Year

Second Year

Third Year


Indicative Financial Plan

Based on Marketing Strategies,a Service Catalogue and Price-List and a Sales Funnel, HANDS has developed a Financial Plan

A Break Even analysis table shows that HANDS partners will reach the break even point within the third year

Also the Country Partner in Germany, will be able to reach a positive result starting from the first year of activity.

Also the Sales Partner in France, will be able to reach a positive result starting from the first year of activity.


HANDS - BUSINESS FIGURESCOMMERCIAL PARTNERS

Break-Even Analysis

-€ 600.000,00-€ 500.000,00-€ 400.000,00

-€ 300.000,00-€ 200.000,00-€ 100.000,00

€ 0,00€ 100.000,00

€ 200.000,00€ 300.000,00€ 400.000,00

First Year SecondYear

Third Year Fourth Year Balance

Cash Flow

-€ 150.000,00

-€ 100.000,00

-€ 50.000,00

€ 0,00

€ 50.000,00

€ 100.000,00

€ 150.000,00

€ 200.000,00

€ 250.000,00

€ 300.000,00

€ 350.000,00

First Year Second Year Third Year

Cash Flow

Profit & Loss

-€ 200.000,00

-€ 100.000,00

€ 0,00

€ 100.000,00

€ 200.000,00

€ 300.000,00

€ 400.000,00

€ 500.000,00

First Year Second Year Third Year

Pessimistic

Realistic

Optimistic


Future Development Plan

New Features will increase and extend the HANDS value proposition; e.g.:

Adding new domains and creating sets of base documents;

Adding new languages; Adding new delivery channels (mobile phones pages,

digital television, etc.); Extending functionalities according to PBs requests; Creating sales-marketing toolkits; and sharing everything in the HANDS group


Promotional Plan

Communication efforts and campaign strategies, for the first year, will be focused mainly on promoting HANDS, selling Professional Services and identifing new Distributors.

the logo, name and message (“Questions in your minds, answers in your HANDS”) will be copyrighted

HANDS White Paper will be used outside of the consortium for promotional activities

The HANDS Group web site will be the main asset for marketing strategy, together with the help of Pilot Partners in disseminating their success stories. As soon as the web site is online, Regulus will register HANDS in all web sites for Open Source databases and repositories;

Fairs, conferences, congresses etc. will be used to increase HANDS knowledge and sales.

Additional Distributors for European countries will be selected.


Table of Contents



3. Deployment plan

4. Conclusions


Conclusions

The aim of the project was to perform a market validation process to investigate the administrative and economic viability of the “HANDS service” product. Also to identify the conditions for its future deployment on a European scale.

HANDS potentially met the objective by:

assuming the strategic decision of adopting Open Source Software model in the Public Body sector,

Defining the HANDS Group as the main actor of HANDS deployment, Identifying the Hands Community organizational plan, Defining the Hands Business model and process, Defining a corresponding Deployment plan and Promotional Plan, Establishing a 3 year - Market Strategy for Hands dissemination and deployment in Europe, Defining New features which will increase and extend the HANDS value proposition.

The Financial Plan shows a positive business development, with a Break Even point foreseen for Commercial Partners within the next 3 years.

Depending on the market evolution, the strategy will be continuously adapted to face the new challenges


Demonstration

Would you like to see our PROJECT at work?

PLEASE MEET OUR EXPERTS AT THE LIVE DEMONSTRATION DESK

41

HANDS

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hands 1 strategies for hands exploitation tommaso ricci, eunics s.p.a. hands workshop h elping an...

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