Business Case - Erp Market

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Vietnam ERP Market: Software Development?
Business Case

Contents:
Introduction
1. Define the opportunity
2. Identify the alternatives
3. Gather data and estimate time frame
4. Analyze the alternatives
5. Make a choice and assess the risk
6. Create a plan for implementing your idea
7. Communicate your case
Appendices
References

Introduction
Company X is a medium-sized software development company that is experiencing a slowdown in business right now because of the global economic downturn. Senior management is considering expanding its product offerings and is taking a look at the market to determine potential areas for entry. At a recent meeting, Mr. Loc brought up the enterprise resource planning (ERP) systems market. After much discussion they decided they should take a serious look at this market because they saw great potential. They have set aside a small team to research the ERP market and determine what modules they should develop, if any. Company X’s team of software engineers is currently underworked and they will have to consider layoffs soon unless they can get something fresh going within the company. This may be just what they need to get their organization growing again.

1. Define the opportunity
Describe the situation and the business objectives that your proposal will affect. A. Identify a problem or opportunity
There are more than 500,000 small and medium-sized enterprises (SMEs)(<300 employees) in Vietnam. The demand from these enterprises for ERP systems is quite immense and only increasing. Currently, the famous ERP software systems, such as SAP, Oracle, and Microsoft, are too expensive for the Vietnamese market. The market here also has difficulty using the open source ERP software because it lacks customer support. Furthermore, the unique language, laws, and customs mean that a custom software package is required specifically for the Vietnamese market. There are several Vietnamese companies providing ERP software for SMEs in the local market, however, with the demand increasing we are interested in assessing if we should develop software to compete and/or what module(s) to develop. B. Craft an opportunity statement

Which ERP software module should we develop for SMEs in Vietnam to capitalize on the growth in demand? Or is it unwise to enter the ERP market at this time? C. Identify your business objectives in pursuing the opportunity Our business objectives in pursuing this opportunity include: ● Research and analyze the market, determine what modules are attractive ● Determining the cost of developing the software

● Determining the cost of getting the product to market and selling ● Estimating revenue from the software in the first 6, 12, 24, and 36 months ● Estimating the profit margin of the product
● Determining the size and growth prospects of the market
D. Prioritize your objectives
In order of importance, our objectives are:
1. Determining the size and growth prospects of the market for ERP modules 2. Estimating revenue from the software in the first 6, 12, 24, and 36 months 3. Determining the cost of developing the software and getting it to market E. Assign metrics to your objectives

Metrics for our objectives include:
1. Determining the size and growth prospects of the market for ERP modules a. Metric: Number of SMEs in the market for ERP software
b. Metric: Software demand trends and projections
c. Metric: Competition in the market, as well as potential new entrants d. Metric: Total revenue for the ERP industry in Vietnam
2. Estimating revenue from the software in the first 6, 12, 24, and 36 months a. Metric: Estimated market share in each period
b. Metric: Estimate the number of licenses sold in each period c. Metric: Develop pricing scenarios for licenses
3. Determining the cost of developing the software and getting it to market a. Metric: Labour and overhead cost to develop working software beta b. Metric: Marketing and sales cost for getting product...
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