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Assignment 4
Assignment 4
Should Alon plan on introducing Insight at Oracle Openworld 2000? Why or Why
not? What business outcomes he intend to attain with Precise Insight?
What should Precise strategy be for insight? Should they launch a separate sale
force for the new product or sell it through their existing sales force? How good
is their current sales force?
The buying process is quite different. DBAs bought SQL because it helped her to
win ‘blamestorming’ session. But the sales of INSIGHT is based on an
understanding of CIO’s pain points.
There can be problem of ‘cross-product’ effect. Sales team might not be able
to allocate the right amount of effort to sell INSIGHT and SQL simultaneously.
What value is Precise SQL delivering to its clients? Develop an ROI model for
Precise SQL product.
ROI model for Precise/SQL
DBA Saving:
Hardware saving:
Assuming annual interest rate = 10%
Cost of capital saving = 143000*.10*3*.6/12 = $21450 Saving due to
User saving:
No. of daily transaction per user = 194000/215 = 903 trans/user Daily end-user
response time per user = 903*15 =13545 sec/user
3.76 hours/user/day Improvement in end user response time = .25*3.76 = 0.94 hours
% of response time saved per user = .94/8 = 11.75% of time Saving per
user = 30000*.1175*1.33 = 4688/user/year Total user saving = 4688*215 =
$1007920/year
We would recommend value based pricing approach. That means a price for
a customer should be proportional to the perceived value derived by the
customer from the solution