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2. Business Plan for a New Software Development Company 28 May 2000 The information provided in this business plan is confidential. Please do not disclose it without checking with me first. Thanks.

3. 3 Personal Goal  To build an effective and lasting software development organization  The foundation of this organization will be formed on a set of professional and social values

4. 4 Values  Make and meet commitments  Recognize accomplishment  Teach and learn from each other  Keep a balance in your life  Require quality beyond customer expectations  Act with a sense of urgency  Improve continuously  Communicate without fear of retribution  Play to win-win  Think and act like an owner  Go the extra mile to take care of the customer  Have fun  Give back to the community

5. 5 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

6. 6 Innofy: Innovative eBiz Solutions  A developer of custom software  Focused on eBiz enablement  An international organization, having offices in Washington, Chicago, Singapore, Dubai, Islamabad, Karachi, and Lahore

7. 7 Mission (1) Planned and sustained growth in:  Number of professionals  Revenue per professional  Profits per professional

8. 8 Mission (2) Build lasting relationships with our clients by consistently exceeding their expectations

9. 9 Key Objectives 1 st Year5 th Year No. of Professionals50800 RevenueUS$420,000US$45,900,000

10. 10 Strategy SalesPartnerships with established players DomainFocus on up to two business domains DesignInnovative solutions DevelopmentSpeed; Craftsmanship HR RetentionFocus on prof. growth; Profit sharing HR GrowthOwn training institute; Dubai office

11. 11 Main Risks Short TermSales Long TermGrowth in the number of professionals

12. 12 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

13. 13 Functional Structure Washington Singapore ChicagoIslamabadKarachi Lahore Dubai Corporate Institute

14. 14 Growth in the No. of Professionals 1 st Year2 nd Year3 rd Year4 th Year5 th Year Corporate346810 Design & Development Lahore4296169317490 Sales & Support Singapore23455 Sales & Support Washington310203040 Design & Development Dubai-15354550 Sales & Support Chicago-2345 Design & Development Islamabad--2560100 Design & Development Karachi---45100 Total50130262513800 Institute58111417

15. 15 Legal Structure  The Innofy family will consist of five sister companies: Two registered in Pakistan; One each in Singapore, the United States, and Dubai  Initially, all five will have the same Board of Directors

16. 16 Start-Up Expenses Total start-up expenses (for the Corporate, Lahore, Singapore, and Washington offices) for the 1 st year, including:  Short-term assets (computers, UPSes, generators, furniture, etc.)  Cash required to handle the operations US$1,044,000

17. 17 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

18. 18 Service Description  We will develop custom software  Our key strength will be in business-to- business eBiz enablement (contd.)

19. 19 Service Description (contd.) 1.To start with, we will sit down with our client and will carefully review the business process that she will be wanting to put on the Web 2.Based on our experience, we will suggest a minimal number of necessary modifications that will be required for an effective ePresence (contd.)

20. 20 Service Description (contd.) 3.After compiling the requirements and specifications, we will help the client in devising a deployment plan and an effective training, operation, and maintenance strategy 4.We will develop the software and deliver it to the client after ensuring its quality according to the specifications (contd.)

21. 21 Service Description (contd.) 4.We will help the client train her staff and will provide assistance during deployment 5.We will offer post-deployment support in maintaining as well as enhancing the software

22. 22 Competitive Comparison (1) The competition comes in several forms:  No competition at all: –In-house development –Most significant –Disadvantages: Inefficiency; High employee turn-over –Our advantages: Speed; Cost; Long-term support

23. 23 Competitive Comparison (2)  Big-time management consultants: –Disadvantages: Generalists; They drive their clients; Cost; Lack of innovation –Our advantages: Specialists; Innovative solutions; Speed; Fixed-cost

24. 24 Competitive Comparison (3)  Specialist eBiz consultants: –Focused –Fast –Disadvantages: None, but they are turning down work due to the lack of human resources –Our advantages: None, but demand exceeds the supply by quite a distance

25. 25 Competitive Comparison (4)  Off-shore Software Houses: –Not many –Low cost –Disadvantages: Inefficient; Unfocused; Lack of domain knowledge; Weak marketing –Our advantages: Focused on eBiz; Professional service; On-site presence; Methodology fine-tuned for speed; Partnerships with established players

26. 26 Sales Supplements The business will begin with a corporate Website establishing the positioning, followed by a multimedia CD-ROM and a printed brochure

27. 27 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

28. 28 Summary  We will be focusing on small to medium sized businesses wanting to sell into businesses in the US  We will be targeting businesses who are in a hurry (2-5 months turnaround time) to get on to the Web  Initially we will be flexible about the business-domain that we are going to work in. After the first 2-3 projects, we will be focusing on 1-2 domains only.

29. 29 Market Segmentation Medium-Sized Cos. Established players, who want to take their existing business process on to the Web Standard Rates Small Companies Startups, bringing innovative and fresh business models to the Web Subsidized Rates + Equity

30. 30 Distributing Our Service  Consulting is sold and purchased mainly on a word- of-mouth basis, with relationships and previous experience being, by far, the most important factor  The key to the purchase decisions made by our initial clients and partners will be the trust in the academic qualifications, international experience, and professional reputation of our top management

31. 31 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

32. 32 Strategy & Implementation  Innofy will start its sales effort first in Singapore, then, two months later, in Washington  The focus in Singapore will be on getting eBiz enablement projects through established international players. The emphasis in the US will be on leveraging those initial partnerships.

33. 33 Pricing Strategy  One of the advantages of working in partnership with established players is that our rates will be the same as those for their in-house consultants  The goal is to gradually increase the overall per developer revenue

34. 34 Sales Forecast Details, along with assumptions, in a few minutes

35. 35 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

36. 36 Organizational Structure The company will start with 3 key executives:  CEO  VP Sales  VP Engineering All three will have a high level of international experience and expertise in the development of cutting-edge software

37. 37 Overview  Executive Summary  Company Summary  Services  Market Analysis  Strategy & Implementation  Management  Financial Info

38. 38 Sales & Profits Forecasts Details, along with assumptions, in a minute!

39. 39 Investments NPV @ a discount rate of 17%US$5,125,000 IRR68% 1 st Year2 nd Year3 rd Year US$1,044,000US$1,656,000US$959,000 Returns Over Five Years

40. 40 Financial Worksheet

41. 41 Appendix: The Institute  A for-profit organization, registered as a separate private limited company  Requires an initial investment of PKR20,000,000  Instructors hired on the basis of profit/equity sharing

42. 42 Institute's Output Programs 1 st Year2 nd Year3 rd Year4 th Year5 th Year Short Courses (1-10 days) 1002004007001000 BCS (30 mo) -10+1050+50100+100 Post-BSEE Diploma (6 mo) 25+25 MSCS (12 mo) 25