Elevation Insights ™ | Developing a Business Case

© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™ 1© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™

Elevation Insights™

Developing a Business CaseMarket size estimations for new opportunities

© Elevation Insights™ 2012-2014. All Rights Reserved.A Chirala Holdings™ Subsidiary & partner of Crescendus™ 2

Developing Business Cases for New OpportunitiesProducts, Markets, Technologies, Partnerships, Resource Allocations

Mandate initiated by:This Mandate is generally requested by any of the following senior management personnel within a company:CEOVP MarketingVP Sales

Executive Level Mandate

Internal Company Mandate Description:

1. We need to build a company wide solution to evaluate new opportunities and supporting business cases to justifyGo/No-Go decisions

2. The business cases should cover market size estimations for the following contentious issues that we normallyface each year:

• Estimating market size potential for new products/services• Estimating overall market opportunity in a given market or country before deciding on sales territories or

quotas• Determining the market size of new technologies or products that are introduced to us via the business

development team• Market size estimations during strategic partnerships, joint ventures and M&A• Market potential analysis while negotiating distributor rights• Internal resources allocation and managing budget turf wars

3. The above information should be presented at our monthly executive meetings and be maintained currentthroughout the year


Internal Team Meeting (scheduled by Executives within your company)

• Marketing Manager• R&D Manager• Engineering Manager• Product Manager (s)• Business Development Manager• Manager, Strategy• Chief/Key Scientists and Engineers• Legal Counsel• Finance Controller• Director, Sales

• If you are working within a matrix (e.g.subsidiary of a large company), you also maybe dealing with other corporate and sharedservices personnel

• VP Marketing• VP Sales• VP Strategy

• CTO• CFO• VP R&D• VP Engineering• VP Operations• VP Business or Corporate Development• Business Unit Leaders• Country Leaders• Director, Marketing• Director, R&D• Director, Engineering• Director, Product Development• Division Financial Controllers

The task requested by the Executive Team is highly strategic and will impact a wide range of business units & internalprocesses. As a result, collaboration & joint buy-in from senior management leaders will be key from the early stage ofproject deliberations.

Note- The composition of teams and titles varies by company, depending upon it’s size, offerings, markets & specificcompetitive situation. As the scope of the project expands, additional team members may be required.

Internal Team Involved(Core)

Supporting Team Members(as needed)

Team Leaders


Tasks discussed within Internal Team Meetings (by Core Attendees)

DEFINING PROJECTSCOPE

1. Selecting a shortlist of the most common situations encountered by the companyduring the course of the year that require detailed market size evaluations (e.g.topics mentioned within the internal executive mandate)

2. Evaluate current pros/cons of existing system (status quo analysis of market sizeestimations)

3. Level of detail required to evaluate different opportunities, as demanded by thevarious stakeholders

4. Initial ideas pertaining to building and maintaining a system that can act as acommon information intelligence repository for the various stakeholders

1. Target end user identification (e.g. B2B, B2C), application/market segment areas& consumption information (top down or chain ratio/bottom up/actual purchases)

2. Economic, industry & demographic statistics along with proportional filters3. Historical/Industry benchmarks and adoption curves (growth rates) for reality

check and controlling irrational forecasts4. Identifying and ranking competitor intensity by target market segment

INFORMATION COLLECTION& DUE DILIGENCE

METRICS FOR ANALYSIS &RECOMMENDATIONS

1. Creating a single, unified market size information evaluation template document2. Populating the template document with above global information sources and

ranking information by confidence levels (including weighted attributes)3. Identifying key developments and offering recommendations for action

EXECUTION ISSUES& NEXT STEPS

1. Constant template document updates (e.g. new information from various globalsources) to keep the template document current

2. Preparing presentation slides for executive meetings and strategic planningsessions

3. On-going revisions to template document and presentation slides, based onfeedback from the various executive meetings

Key Tasks


Information Needs required to complete your “Next Steps”

Information Requirements

• Build user requirements for a unified market size assessment template document, that will be used byvarious stakeholders across the company

• Populate the template document with complex information pertaining to various global sources ofinformation

• Complex information collection and analysis requirements include:• Target segment customer surveys, interviews, focus groups• Interviews with key opinion leaders• Comprehensive statistics

• Economic, demographic, industry, regulations• Access to > 1000 indicators including critical data pertaining to fastest growing segments

• Market potential and actual addressable market reality check analysis by comparing tohistorical/industry benchmarks based on adoption curves (what was originally promised andwhat really resulted, including examples of how far management was off targets)

• Competitor Intelligence by various market segments• List of competitors and their product portfolios, investments, market strategies• Sales figures and growth rates by products and geographic regions

• Market share information (if available)• Diagnosis of historical actual territory data to re-assess market potential (e. g. for sales

distributor contracts)• Market flux analysis (e.g. monitoring entry and exit of customers, competitors & M&A)• For B2C customers, review of end customer’s strategic plans and executive briefings, and

estimating market potential and actual addressable markets for your products and services• Global field visits to validate concepts

• Detailed analysis of diverse sets of information weighted by confidence levels and appropriate weightedattributes

• Preparing presentation slides for executive meetings

COMPLEXeconomic, industry,demographic,Customer andtechnology SOURCESWITH FREQUENTUPDATING NEEDS


Execution Options: Internal “do-it-alone” Approach vs. External Help

Internal Approach

10-15 >100Primary MarketSegments andApplication Areas

PotentialInformationSub-Types & Updates

Note- Actual data figures can vary greatly, depending upon industry space.

X

Strain on Resources

• 15 plus senior management & their team members willneed to spend extensive amounts of time, in addition totheir regular duties.• Real Costs incurred.• Information gathering, analysis & reporting challengesadd additional pressures, lowering productivity.

Frequent Information UpdatesRequired

External Help: Elevation Insights™Elevation Insights™ can assist you with the following efforts:• Help define the scope of the market size estimation project• Develop the assessment template document• Perform the comprehensive task of collecting and analyzing global information requirements for market size estimations,

including global visits to validate the assumptions• Prepare executive level presentation slides based on the latest global intelligence data• Maintain the on-going information intelligence and insights requirements of the template document

We also encourage you to check our related business and technology services from Crescendus™.

Access to global technology & commercial intelligence


Decision Time: Let your internal ROI guide you!

Time Cost Decision•Internal Meetings

•Initial strategy discussions•Setting up of internal program office & workstreams•Follow-up strategy discussions•Information gathering•Information review & analysis•Conference calls•Data analysis & reporting•Series of follow-up discussions to review marketsize data, and analysis• Decision meetings to go over recommendations• Call to Action set of meetings & preparationmaterials• Updating above materials with new information& re-do above decision making process.

• Internal Email Chains/Calls• Regular Duties Impact

• Overtime to focus on regular duties• Productivity & potential revenue impact onexisting responsibilities• Stress on your current team•Potential attrition of top performers

•On-Going Maintenance• To keep information intelligence current &update data analysis & reporting

•Key Parameters

• Total number of meetings• Total time spent on attending meetingsand completing meeting tasks (incl. emailtime, conference calls, presentationreports, target documents, informationcosts)• Total number of attendees/meetingalong with composition (e.g. VP, Director,Managers)• Calculate total cost based on total timeand fully loaded cost figures by variousattendees, for all the tasks involved incompleting the project.

Use Fully Loaded Cost Figures:Manager level: $100-125/hourDirector level: $150-200/hourVP level: $250-350/hour

Note:Placing a cost figure on all your internalactivities will highlight the true cost ofcompleting a task. This is often ignoredwithin internal company settings whiledealing with salaried employees.

Situation 1If your internal total costs, seniormanagement availabilitybandwidth, and timelines areacceptable to your company,then it is prudent to complete theproject internally without anyexternal help. A key assumptionhere is that your company has allthe right skill-sets to completethe project.

Situation 2If the right skill-sets areunavailable within your companyor the timelines and total internalcosts are not acceptable, thenwe recommend seeking externalhelp.


If your company is currently facing some of the challenges mentioned in thispresentation, we encourage you to contact us.

Telephone:1-(865)-332-0942Email:[email protected]:www.elevationinsights.com

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