MM ENTREP - Final Paper

8/10/2019 MM ENTREP - Final Paper

http://slidepdf.com/reader/full/mm-entrep-final-paper 1/30

ATENEO GRADUATE SCHOOL OF BUSINESS - MBA MIDDLE MANAGER PROGRAM

MM ENTREP Final Paper

–

Starting up an IT Consulting/SoftwareDevelopment Family Business (confidential)

Jeffrey Mendoza (M120074);Section M14;Professor: Dr. George Fong

12/1/2014




Starting up an IT Consulting/Software Development Family Business (confidential)


of 30

Overview – My Genuine Interest in Technology

I had always had the interest in technology since I learned how to use the computer when

I was 6 years old. I remember my Father teaching my typing in the keyboard and doing some

drawings using a program long ago. It was very vivid for me and I have used that experience in

computers when I was studying until I became part of the workforce. And my interest in

Information Technology (IT) has grown ever since because it represents the improvements done

in the present and the potential that lies beyond in the future. The realization that everyone is

using technology to communicate and to make things more efficient shows that there is

opportunity to conceive a business in this area, and many has tried and attempted to do so. Somesucceed and have very good business (as we see so many software development companies

awarded with contracts with different government and private organizations nowadays), while

some struggle just to find potential customers.

Therefore, if I ever to a start up IT Software Development business, I need to make sure

that it has the right focus, business model, target market, and direction that it needs in order for it

to thrive and be successful. Being in the corporate setting and have worked for several BPO and

IT companies and industries, I am able to see what customers and clients look for in the process

of working and implementing software development contracts. Having clear customer

requirements are the key to success. And clear customer requirements are the basis of delivery

and expectation setting. It serves as an indicator if customer satisfaction and delight will be

achieved or not. And often times and if not always, the development of the software is done

through project management and a team that will plan and execute the deliverables. This

concretely stresses out that I would need to have a good team to make it all work. Also, another

thing to consider in the IT Software Development Business is that there is a constant need to

market your capabilities to potential customers. Seeing that there are already big companies that

would take out the rest of the opportunities present, one value add of start-up IT Companies is

that the agile and more flexible turnaround that they can use as an advantage. Lower

development cost, speed of delivery, and the accuracy of the development (Having very few or

no bugs) would also be a huge driver of renewed and continual relationship with customers.






of 30

In this Final Paper, I am to structure and organize what needs to be in place in our start-

up company, and be able to apply the learning we have gained from our Entrepreneurship class.The concept of family business will also be incorporated, as this will be a venture with one of my

cousins. I plan to share to him what I have learned and hope to professionalize our operations

from the very beginning.

Important Note: In writing this paper, I will be disclosing some information that is

sensitive and confidential to the success of our business venture. I would also humbly request

that it may be only for Dr. Fong’s eyes only. This is for me to apply our learning in class into a

more realistic and viable scenarios that can further help and enhance our potential business.Evaluating this paper in confidence would be greatly appreciated, as the nature of the IT business

is sometimes to the advantage of the one who has first worked on the project (virtue of being

first). And going forward, succeeding projects and clients would highly depend on how well we

took care of the relationship with the initial project/client. Word of mouth is powerful in

business, and same goes with the IT Business.

Opportunity Seeking

My first cousin and I have been looking into possible opportunities for the last 5 years,

and most of them have been failures. One was to put up a start-up online gaming company that

was sidetracked and put to a halt because of backing out of the investors at the last minute.

Another opportunity missed was a small call center company Operations that did not pushed

through because we did not have the enough people to run it. And so many other little projects

that did not happen because we were not ready or the resources are not there. But the good thing

about all of this is we have it charged to experience. There were many sacrifices that were

already made (Financial, Time, Effort, etc), but still moved forward. What we put to ourselves

mentally is that we did not stopped, thinking that the next opportunity is right around the corner

and we just have to keep on looking. I am also inspired by the stories of other technology






of 30

founders like Hewlett-Packard (HP)1, who in a garage started their business of innovating and

working with technology.

And from taking our ENTREP sessions, the one thing that stands out in the topics of

opportunity seeking is the three fundamental questions whenever an individual eyes a particular

business venture. It serves as the high level litmus test in which a business opportunity is gauged.

And the following questions would come from the following:

1. Do I have the right opportunity?

2. Do I have the right team?

3.

Do I have the right resources?

Do I have the right opportunity? To answer this question, I have to genuinely state what

my passion is. And as mentioned in the paper, that it has to be something in relation to IT. If not

IT, I would be denying myself of my true interests at heart. The good thing is that the

opportunity to be discussed in this paper is a good fit for both me and my cousin. Both of us are

self-learned technologists and have the passion for technology. After years of searching, an

opportunity came from a foreign contact from Denmark that my cousin met in one of his

business meetings who was looking to partner locally in the Philippines. This is to develop a

software website dashboard for their data mining/ data warehouse system (Kapow is the name of

their system2). This information is then used by government institutions to track down, criminal

and terrorist news, trends and activity over the internet. Their system extracts web metadata from

the websites, news feeds, social media sites and then creates a database that can be used to gather

information.

To make sure that the opportunity was legitimate, I have met the person myself and

learned that he has initial work which was done in Malaysia. In further interviews and dialogue

1 HP History - http://www8.hp.com/us/en/hp-information/about-hp/history/overview.html

2 Kapow Software - www.kapowsoftware.com

http://www8.hp.com/us/en/hp-information/about-hp/history/overview.html



http://www.kapowsoftware.com/










of 30

with him and my cousin over a dinner meeting, he mentioned that he has tried partnering with

other start up IT companies for his requirement but has miserably failed. This was because thesoftware developers whom he partnered wither either declined because they have not agreed on

the price or in some instances that the Malaysian contractors he worked with were only saying

the limitations and only talking about professional fees and price. Despite agreeing to high fees,

the deliverables were not delivered on time and some of the developers left the project during the

development phase. Therefore, I would say that we have the right opportunity due to the fit for

both us and the foreign client who is in need of software development services. It is very timely

as well in the point in our careers as we have honed the necessary skills needed to get the job

done.

Do I have the right team? In reflection to this question and to the opportunity at hand, my

cousin and I have significantly have learned from our previous mistakes. We both acknowledged

the fact that the more better people we get into our team, the more better position we will be in

landing and succeeding in the project and operations going forward.

In terms of profiling and skills, my cousin and I are complementary and can work both

professionally and personally. Since I have worked in an IT software development corporate

environment, I would have the necessary Software Development Life Cycle (SDLC), Project

Management (Fortunately I am a certified Project Management Professional) skills needed to run

the IT Software Development business. And at the same time, being in different IT companies, I

am aware of how software projects are run, developed, and provided to the customer. I have also

experienced in communicating and talking to IT executives (Management) and Developers

(Technical) and able to bridge the gap in terms of communicating the right message to both

management and technical people.

My cousin also has an IT background as well and has been into IT infrastructure and

Software Development. As previously mentioned he is an IT Manager in a law firm here in

Metro Manila and has expanded his contacts due to the supplier network that he has built. Based

on his traits, he is very entrepreneur-like: He opened a computer shop, but closed it due to other






of 30

focuses needed. And soon, he worked on other small businesses and projects to keep his earnings

up. He has built several websites with databases as projects and is very active in delivering projects as fast as he can.

Both of us will be at the core of this start-up company that we are building. We will be

the ones founding it and will drive its success. However, the team is also expanded to other

members to expand our technical capabilities and bandwidth so that we can further get more

businesses. We have hired 2 IT Developers who are very proficient in Java and Database

Technologies. They will be tasked to be developing the programs and application through JBoss

Developer Platform3

for initial projects and will have a learning path for emerging technologiesto be used going forward.

There are also close contacts who we are speaking to right now, that will handle legal,

admin functions for the startup company. All of these resources are people we trust, and we

would need to tow them to the same direction that we all have to be in for the company to

succeed. And because of this, I would answer “Yes”, we have the right team in place right now

for the said “right” opportunity of doing a startup Software IT business.

Do I have the right resources? This question poses our capability to generate the

necessary funding for our business venture. To me the fortunate thing about the current potential

engagement is that we have an investor that would put mobilization funding to start the

development of the Software Dashboard project that was agreed with him. The investor has

currently wired $8,000 USD for the mobilization of the team (procurement of PCs, refurbishing

an office and initial salaries of the 2 developers can be accommodated for). The registrations

with local government will also be handled by our Team using the mobilization Funds.

Depending on the success of the project (and ensuring all the initial requirements of the

program/dashboard are fulfilled), an additional $10,000 USD will be awarded to the team to and

2-3 projects will be given to the team as work to be fulfilled.

3 http://www.jboss.org/






of 30

For our incorporation to the company, my Cousin and I would need to fund the company

P100,000.00 PHP on our own pocket/expense to make sure that we have cash on hand foroperational purposes.

In urgent scenarios, there are opportunities to get business loans from Financial

Institutions such as banks to make sure that the funding preparations would not be an issue.

Therefore, the answer to this question is also a “Yes” because of the fact the resources are

coming from different mechanism (Personal Cash, Financial Investment, and Financial Loan).

To the entrepreneurial mind, we as a team should always find a way in terms of financing our

Operations. The positive side in IT is that the capital expenditure (particularly in computer and

software) is usually significant at the beginning, but the returns and depreciation of equipment is

manageable provided the revenue stream and projects are continual.

Considering Morato’s Book on Opportunity Seeking4, several other factors should be

considered and to make sure the business opportunity is viable and has a market that can be

tapped into for future projects:

1.

Macro-Environmental Sources: Global terrorism is now an issue in the different parts ofthe Globe. Terrorist/Radical Organizations such as ISIS, ISIL, and Al-Qaeda are often

mentioned in the global news recently. Therefore, more security measures are in needed.

And information is vital for government institutions as a means of keeping pace or being

ahead of the curve in terms of gathering information. This validates that the opportunity

mentioned in this paper has potential due to the fact that creating a software dashboard

for government institutions, and having opportunities for software maintenance and

upgrade are options to get more business relationship from these government institutions.

4 Dr. Eduardo A. Morato Jr. – A Trilogy on Entrepreneurship, Book One – Preparing for

Entrepreneurship, The Many Sources of Opportunity, pp. 7-24.






of 30

2. Industry and Market Sources – in analyzing this opportunity from this perspective, it is

important to us to realize that the work is being outsourced. The investor, seeing that thesoftware development would be more cost-effective if done by Asians rather than

Americans or Europeans. Also the fact that he disclosed to us in our initial discussions

that Filipino IT Professionals are very hardworking and the quality of work is at par with

the rest of the top professionals in the world. This feedback from the investor was

mentioned in comparison to other Asian IT counterparts that have limited capabilities and

do not have the right attitude to work with. Also the concept of outsourcing is not new to

the country. Outsourcing also has an advantage to foreign investors. Having to partner

with small local companies, they would be able to immediately establish a local footprint

that knows the environment, the capabilities and the resources to be able to do business

and expand the operations more efficiently.

3. Consumer Preferences, Piques and Perceptions – for IT programs to work well with its

users, IT developers need to fulfill the programming and coding to match the customer’s

requirements and expectations. Commonly, IT programs or websites must be user

friendly, it has to process data fast, and has all the information accessed with ease and

must be very intuitive. Working on these common preferences would be a plus in

marketing programs that had successes with customer requirements. On top of these user

preferences, the IT programs or websites or applications must be able to withstand

significant amounts of data and concurrent usage to make sure that the continuity and

efficiency of the application is consistent. Therefore putting up a software dashboard that

is intuitive for the user is a must, and meeting specific requirements and preference of the

customer must be one of the priorities of the software company that we will be

establishing. Flexibility and accuracy to customer preferences therefore is an important

item for our IT Company. I would definitely agree that this opportunity of ours is aligned

to Morato’s Book mentioning that: “Before the customer is won over, there is first a

battle for his or her mind. Next, there is a battle for the heart. Finally there is the battle

for the wallet.” The battle of the mind is more on the specific requirements needed by the






of 30

customer. The battle for the heart is the relationship building in creating the IT

application, and the battle for the wallet is making the IT Project cost effective anddelivery is done on time and within budget.

4. New Knowledge as Sources – For the identified opportunity, it has further potential to

expand as new and emerging technologies come out very fast. In relation to this

opportunity. Technologies such meta name robots5, Business Intelligence, and Big Data

Analytics6 technologies are very important competencies and skills that our company

should have in order to remain competitive. Other than these technologies already

released in the market, our team should be on the lookout for the next generation

technologies that would help us be in a position for success.

5 Meta Name Robots - http://www.metatags.org/meta_name_robots

6 Big Data Analytics - http://searchbusinessanalytics.techtarget.com/definition/big-data-

analytics

http://www.metatags.org/meta_name_robots



http://searchbusinessanalytics.techtarget.com/definition/big-data-analytics












of 30

Opportunity Screening

In reference to Chapter 2 of Dr. Morato’s Book (Opportunity Screening), 7I would wish

to apply the guide questions for self and opportunity matching, and other important criteria to

validate for the IT Business that I am embarking on and heavily considering:

1. Do I have the drive and tenacity to pursue this business to the end? Yes. I have seen so

many IT projects in my corporate experience (12 years of it) that I believe that I am ready

to use the same knowledge, attitude and tenacity to pursue this IT Business.

2.

Will I spend all my time effort and money to make the business work? This is conditional

Yes. Since I am still currently working for a company, I would definitely make time for

this to work. However, seeing financial independence and a family business as my goal, I

have to make a plan to transition from the corporate employed life into the family

business we are trying to establish. I would need by cousin/business partner to work with

me in getting me aboard as soon as I can.

3. Will I sacrifice my existing lifestyle, endure emotional turmoils and forego my usual

creature comforts to succeed in this business? A definite Yes. I came from a family of

humble beginnings and hard work. I know what it feels to be in a position of simple

living but still enjoying life. This is not a problem for me.

7 Dr. Eduardo A. Morato Jr. – A Trilogy on Entrepreneurship, Book One – Chapter Two:

Opportunity Screening, p.25 – 60.






of 30

Further screening to ensure validity and viability of the business: Using the 12 Criteria, I will

directly compare it to another opportunity I would like to pursue, which is opening a hobby shop because it is one of my passions.

12 Opportunity Screens for the IT Consulting/Software Development Family Business vs

Opening a Hobby Shop (Also one of my interested opportunities):

Opportunity Screen %

Weight

Hobby Shop

Score (1Low-

5High)

IT Business

Score(1Low

– 5High)

Comments/Evaluation

1.

Relevance to

the Vision

Mission and

Objectives of

the

Entrepreneur

20% 3 5 My VMO (Drafted upon the creation of this

Paper):

My Vision: To be financially independent by

the year 2020

My Mission: Inspiring Innovative Solutio

through Technology

Objectives:

-

Establish IT Family Business as a

vehicle for financial independence

- Obtain projects outside of the count

to establish Global Presence

- Capture Portfolio of Complet

Projects to showcase capability an

experience of the company

For this business opportunity, this is ve

relevant and makes sense.

2.

Resonance to

Values

15% 3 5 Values of utilizing my skills and talents

pursuit of technology and a business are mo






of 30


Weight

Hobby Shop

Score (1Low-5High)

IT Business

Score(1Low – 5High)

Comments/Evaluation

leaning towards the IT Business. Howev

both would definitely require hard work an

perseverance, but I would be able to practi

it more with the IT Business opportunity.

3. Reinforcement

of Existing

Enterprise

Strategies or

Entrepreneurial

Interests

10% 5 5 Both are equal due to the fact that m

Entrepreneurial Interests for bo

opportunities are high.

4. Revenues 10% 2 4 The IT Business would have significa

revenues as compared to the Hobby Sho

provided that the Primary Target Market

properly identified.

5. Responsivenes

s to Customer

Needs and

Wants

5% 3 5 Meeting and being flexible to Custom

requirements are more significant in the

Business opportunity vs. the Hobby Sho

Business.

6. Reach 5% 3 5 IT Business would have faster Glob

presence when managed properly

compared to the Hobby Shop. The reason alis because target customers are governme

institutions of different countries (Local an

Foreign)

7. Range 5% 4 4 There is a high range of products to be offer






of 30


Weight

Hobby Shop

Score (1Low-5High)

IT Business


Comments/Evaluation

by a Hobby Shop and would also depend o

Seasonality and Popularity. On the other Han

the IT business would have extensive ran

due to the supposed and assumed flexibility

the company to meet client requirements.

8. Revolutionary

Impact

5% 3 5 Compared to the Hobby Shop Business. T

IT Business would have more revolutiona

impact due to the use of Technology f

creating solutions

9. Returns 5% 3 5 Returns would be higher in the IT busine

due to the defined timeline of completion

projects. There is also a potential f

incentivizing the project for exceedin

client/customer expectations

10. Relative Ease

of

Implementatio

n

10% 3 4 Although not that hard, but not easy as we

IT Businesses is easier to set up due to th

minimal Space Needed, Dependency f

Hobby Shop is for the merchandise supplie

and location; Dependency for IT Business

getting the right team, and the rig

equipment.11. Resources

Required

5% 3 4 More People are required in a Hobby Shop

run daily operations. Whereas IT business c

run on a much leaner scale. And individua

can have multiple functions at the same time






of 30


Weight

Hobby Shop

Score (1Low-5High)

IT Business


Comments/Evaluation

12. Risks 5% 3 4 Risks are higher with IT because current

there is investor that would help support t

financial requirement to start the compan

Which would mean that there is a stake th

needs to be fulfilled properly by the compan

to make sure that business is afloat. Also, th

risk for IT business is the delays in th

fulfillment of IT projects that will result

possible penalties and loss in revenue.

Total Score 100% 3.15 4.65 Based on the 12 Opportunity Screenin

Criteria, The IT Business is more viable bas

on the assessment.

Item # Criteria Weight % Hobby IT Hobby Score IT Score

1 Relevance to VMO 20% 3 5 0.6 1

2 Resonance with Values 15% 3 5 0.45 0.75

3 Reinforcement of exsiting… 10% 5 5 0.5 0.5

4 Revenues 10% 2 4 0.2 0.4

5 Responsiveness to Customer… 5% 3 5 0.15 0.25

6 Reach 5% 3 5 0.15 0.25

7 Range 5% 4 4 0.2 0.2

8 Revolutionary Impact 5% 3 5 0.15 0.25

9 Returns 5% 3 5 0.15 0.25

10 Relative Ease of Implementation 10% 3 4 0.3 0.411 Resources Required 5% 3 4 0.15 0.2

12 Risks 5% 3 4 0.15 0.2

TOTAL 100% 38.00 55.00 3.15 4.65






of 30

Feasibility/Viability Study for the IT Consulting/Software Development Family Business:

For the Feasibility Study, Our Team has already engaged with the investor and reached with anagreement to create a Website/Frontend application that will be able to communicate with the

Kapow database. This Prototype will have the following requirements as defined by the

investor/client.

Initial Project Requirements:

1. The prototype website should have viewing content aggregated by Kapow Database

2. The prototype website should have alerts to new content or content that was defined to bealerted

3. The prototype website should have the ability to perform Searching content

4. The prototype website should have the ability to perform Analytics of data (keyword

occurrences, etc)

5. The prototype website should have the ability to create reports based on user chosen content:

a.) Predominantly for analysis/ reporting, and

b.) To create evidence for the prosecutors/enforcement

6. This prototype system will be used by upwards of 8 divisions, but to begin with probably 1

maybe 2-3. If there are multiple divisions, with multiple users, then there are also different

instances of the system - or access roles.

7. The prototype system should have an underlying architecture that needs to be in place

8. The prototype system should ensure the functionality/usability in place namely:

a.) Indexing / database (Search and alert)

b.) User roles (approximate of 18 analysts and a 2-3 managers)






of 30

c.) workflow for content / usability (presentation)

d.) Static data analytics / trend

e.) Reporting

Resources In place: 2 Senior Developers, 1 Junior Developer

Timeline: Project was provided last October 2014. Expected Delivery is December 15, 2014.

Progress as of November 30, 2014: Project is currently on track based on the agreed timeline.

Use Cases were created to properly translate and represent business requirements to technicalrequirements. Functionality of Prototype system is now working based on Requirements 1-6

presented above. Integration to the IT architecture would be the next step. Also, look and feel of

the website is properly established to confirm with the client.

Value Add Created: Developers who created the project used meta name robots to fetch

information faster. Usage of Java as technology enabled web analytics, graphing and visual

aesthetics more appealing and enticing to the user.

Based on the Feasibility/Pilot Project in place for our team, it would be seen that the project is

done with minimalistic resources and effort. The key to the feasibility of the project is the

developers that built the project. We made sure in their contracts/agreements that they are

incentivized based on the output that will be provided. This would ensure that even outside the

core team of developers that we have, we would be able to attract talent within our respective

networks who can help be part of our future projects.






of 30

- Reusable IT and Project Management Assets – Having these items in place would help

developers save significant time during the phases of a project. This can be in the form ofreusable code and code shells made by the developers in previous projects. It can also be

based on the Project Management Templates (Project Management Plans, Gantt Charts,

estimators, etc.) and other Software Engineering templates that can re-utilized for

succeeding projects.

- End User Support Post Launch – This is also critical as part of hand holding and turn

over with the client and customer once the application or website is completed. It also

presents new opportunities for the company because possible enhancements are identified

by the customer and this will generate additional work . IT Service Management is also

needs to be performed (Change, Incident, Problem Management) to ensure that the

deployed application is running and supported.

- Research of Emerging Technologies – Knowing the latest trends and available

technologies would keep the company significant and up-to-date. Ensuring knowledge,

skill and competency on the emerging technologies would be an advantage against thecompetition.

- Hiring and Keeping the A-Team - Skilled Technologists and Developers need to be

part of the team and taken cared of well in terms of compensation, incentives and

benefits. Knowing how to screen the right talent is also important. The potential A-Team

candidates are the ones who are aligned to your Vision Mission and Objectives, has a

great positive attitude and is a team player and are leaders in their own way. This would

not be an easy task, but if done properly will help increase the credibility of the company.

- Adhering to Global Project Management and Software Engineering Standards –

Through this priority, the company will be able to professionalize the work being

performed and will be up to par anywhere in the world. Standardization also positions our

company to be competitive and structured in operationally and strategically.






of 30

Our Value Proposition (Morato)9

To ensure that the IT Business opportunity presented in this paper has identity and delivers value

to its customers, an entrepreneur must need to define the Value Proposition that would make the

business thrive and become successful. I will employ the guide questions from Morato as a

means for me to be able to extract the Value proposition for our company’s product/service.

a. Who are the customers who most prefer the product or service? What is their consumer

profile? What is their buying behavior?

The customers of the system would be the police and security/safety departments from

government institutions who are in need of a software dashboard that can pull and create

business intelligence data from the Kapow server. The end users on the other hand are the

analysts who will use the data to monitor key words and topics that are priority one in the

police/security safety departments.

The consumer profile would match the government that will potentially use the

dashboard. Initially, the prototype created was intended for the Malaysian Police

Department, to whom our Investor/Foreign Contact has ties with.

Because of this, the Malaysian Police Department would have budget allocated for

Technology improvements that will be awarded to the contractors that will be able to

deliver the business requirements at a reasonable cost.

b. What are the specific attributes or features of the different competitor’s products?

Due to the significant number freelance developers and start up IT companies, the

attributes to be considered in this question would be the companies that are competitors

with our partner (Kapow). One of the main differentiator of our application is the access

9 Dr. Eduardo A. Morato Jr. – A Trilogy on Entrepreneurship, Book One – Chapter Three:

Opportunity Seizing.






of 30

and the partnership with Kapow Software as the source of the Big Data that the software

prototype will use to extract the data that will be used by the end users. From user/crowdsource feedback over the internet10, the following competitors of Kapow are:

o Talend Data Integration - There is an open source version which allows you to

get started. It has 100s of connectors to connect to Salesforce, SAP, Oracle,

ODBC, JDBC, XML, Access, flat files. Also a whole host of other components

WebServices, FTP and Email. The transformation tools allow you to manipulate

data. The paid for version includes Data Quality tools, Management &

Monitoring of data integrations but I have to say I've only needed to upgrade once

for a client. It is incredibly powerful for what you get. What I also love is that its

built in Eclipse and I know that if if doesn't have a component I can always write

one. It has an App Store where users have contributed components. Unlike

competitors you can easily go under the covers and write simple Java code to

manipulate your data. – Francis P, Consultant in Computer Software.

o Starfish ETL - Starfish ETL pre-built products maps significantly reduce data

migration effort. The product enables point-and-click configurations, while

maintaining the ability to perform complex data transformations. The product has

substantially improved our data migration offerings - what may have taken days

in the past, can now be accomplished in hours. We have used this product in

projects ranging from very large corporate data consolidation to small CRM start-

ups where contact data is imported from Excel spreadsheets. Starfish ETL

provides the flexibility needed to do both - very cost effectively. The product has

reduced our consulting costs, while increasing client satisfaction – William Z.

Business Partner in Information Technology and Services.

o TIBCO ActiveMatrix - Compared to other integration tools, there are 3 things

that I like best about Tibco ActiveMatrix tool 1. It is a Fourth Generation Tool

(4GL) with immense drag and drop features. This enables the developer to

10 https://www.g2crowd.com/products/kapow/competitors/alternatives

https://www.g2crowd.com/products/kapow/competitors/alternatives









of 30

visualize the bigger picture rather than worrying about environment related minor

details. 2. It is a highly stable tool and haven't seen many issues of the toolcrashing during development as I have seen with other Integration Suites 3.

Shorter learning curve - the integrated Help and examples provide self learning –

Janita S. User in Management Consulting

c. How is the product or services marketed? What marketing channels are used?

The product is marketed through technical evangelists that schedule appointments to the

target customers

Online presence websites and trial software downloads are usually in place for these

products to be available and tried by potential users and customers. Additional features

for the data migration tools are further unlocked once payment are received from the end

user. For more high level large deployments, Referrals and connection/contact list

through government officials serve as their means in presenting into the Government for

doing a road show of the capabilities of the tool.

d. What is the market performance of the different products in the market place?

No information provided by Kapow to our team as of the moment, but there is a need and potential market due to the Factors stated in this paper.

e. What are the strengths and weaknesses of the competing products and services?

Strengths observed are:

o Usability

o Varied Functionality

o Customer Support

Weaknesses observed are:

o Price need to be paid

o Complex User Interface

o Limitations in functionality

o Integration compatibility with existing systems.






of 30

Conceptualizing the product or service offering:

To further strengthen our product and service offering in Software IT Business, we need to

consider the following areas as per Morato’s book:

1. Create a concept similar to the winning products and ride with the obvious market

trends – Since the applications created for clients are based on the customized

requirements. The similar approach winning/products and service IT has is adapting to

software engineering and development methodologies such as Agile Software

Development and CMMI (Capability Maturity Model Integration).

2. Find a market niche that has not been filled by the competitors – an intuitive

dashboard for Kapow big data migration is not yet readily available in the market.

Therefore the prototype in itself is a niche, because our company will be the first to build

it and we will be able to market it.

3. Conceptualize a product in a positioning category where the participants are rather

weak. – Similar to point #2

4.

Conceptualize a product that would change the way customers think. – Similar to

point #2

Designing, Prototyping and Testing the Product

For the company’s prototype as an example in this paper, it was designed and tested using the

use cases that were created based on the customer’s requirements. On each functionality of that

was identified, it is then encoded through JBOSS platform and further compiled, tested, and run

to ensure the testing made rigorously before implementing the system as a whole.

Implementing, Organizing and Financing

Also according to Morato, further considerations in setting up the IT Software Development

Business should include the following items:






of 30

1. Choose the correct technology, the one that would produce the outputs that would

meet the quality specifications of the customers – Web applications using Java andJavascript will be the approach to be taken. Integration of social media sites will also be

used as it is necessary to get all the metadata available from these sources.

2. Choose the right people who can perform the technical and the managerial

functions necessary to realize the desired end results. – Our 2 IT Developers are very

skilled in Java and Javascript and has already several completed projects on their belt. On

the other hand, I can contribute using my project management professional certification,

and my cousin has the hardware and software architecture knowledge to integrate and

manage the developers. As a team, we will be able to achieve the necessary results

needed for the operational and management aspects of the project.

3. Design the operating workflows that would assure the effective, economical, and

efficient production of the outputs

4.

Specify the systems and procedures that would govern the enterprise, motivate and

discipline the workforce and satisfy the customers

To aim to achieve items 3 and 4 above, the suggested high level operating

workflows/business model would be:






of 30

Lead Generation Business AnalysisDesign and

Development

Delivery and

Deployment

Business

Development

Support and

Maintenance

Support Management Process

Strategy and Policies

Strategy and Policies would be the Management bylaws and guidelines of the policy

that will be abided in the course of the operations. This will be created initially by myself

and my cousin and will be signed off by both of us.

Lead Generation, Business Development Processes would be the backbone of our sales

team and together with our existing client and his contacts. Through these processes,

there would be eventual leads and needs from customers and having business

engagements with them would be crucial in order to commission a project.

Business Analysis process would then continue the locked in engagements and

translating client/end user requirements into functional and technical requirements that

will be captured. These requirements will be the key to ensuring customer satisfaction by

achieving every requirement that was defined.

Design and Development processes would be the actual creation of the IT application or

solution that was agreed upon in order to fulfill the client/business requirement. A project

plan with resource and duration estimates need to be in order. In addition, lead times for

procurement of necessary software and hardware need to be in place to make sure that the

project plan and the development would be on time and on budget as well.






of 30

Delivery and Deployment Processes will ensure that the proper training, handover of all

deliverables and closure of payments will be made. Client Signoff will be obtained.Project Closure will be done through post mortem and lessons learned.

Support and Maintenance Processes will provide the necessary post deployment

assistance to the customer/client after the IT application has been delivered. The scope of

the said support and maintenance would vary from the agreed upon work from the

inception and planning of the project.

Support Management Process will comprise of the support functions that will help in

the fulfillment of the project such as (but not limited to) Administration, Human

Resources, Training, Legal, Project Management, Finance and Accounting, and

Marketing. Since the initial identification was only for the development and core team,

these support management functions will be fulfilled already by me and my cousin, and

then further get the A Team that would help cover, take ownership, and manage these

processes.

5. Design the organizational architecture that would allow the people to function at

their best.

Depending on the hiring and the functionality of the teams, the ideal or suggested

organization structure would be more of a Matrix or Project Based Organization, with me

and my cousin as the overall accountable and management of the work being done. A

suggestion of the said idea would be the following:






of 30

Jeffrey Mendoza

Operations/Project

Management Director

Elvin Mendoza Jr.

Chief IT Architect

Joseph Mendiola

Senior Software

Developer

Michelle Anne Cruz

Software Developer

Software Development Team

For the Support Functions, it will be developed further on and can even be shared by both me

and my cousin until we get the right people to support us.

Further Insight and elaboration of our Value Proposition on our Software Product can be further

evaluated from our learning in our Marketing Class, where Mr. Nick Lansang was our Professor:

a. Consumer Insight on the Product (Based on my 11 years of corporate experience

with software and users and clients):

- Emotional/Psychological Consumer Insight: End users want applications to be secure

and available when it is needed.

- What Disappoints? Applications disappoint when the product created does not conform

to the specifications.

- What Irritates? End-user is irritated when Software application crashes

- What Annoys? Need to input several times, and if end user is unable to find the right

information right away. Software latency may also annoy end user.- What Bothers? End users worry if the application is secure and might be vulnerable to

hacks and malware.






of 30

b. Value Offering/Proposition:

o Points of Parity – The Application/System is created based on customer

requirements

o Points of Difference – The System is intuitive, faster, and is delivered on time or

earlier than scheduled.

o Functional Value – The System/Application uses latest and tested technologies

used in Software development (Java, JavaScript), much faster web browser

loading times.

o Psychological/Emotional Value: - The system is reliable, fast and secure.

Establishing the Company Foundation

By undergoing the process of Opportunity Seeking, Screening and Seizing, I am now

able to further suggest what my perspective on what our company should stand for. Thus, laying

the foundation of Mendoza Systems and Software Development, Inc. (MSSD, Inc. Name shall be

further be finalized and shall be registered in SEC and will work together with my cousin to

arrange it).

Vision/Mission Draft:

1. Vision: – To be a globally competitive and innovative Filipino technology company

2. Mission:

– To establish local IT presence and implement local projects by 2017

– To be able to conduct business and implement projects in 5 Asian Countries by 2020

3. Objectives:

a. Registration of Company by 2015

b. Completion of Initial Project Prototype by Q1 2015

c. Register Trademark of successful prototype with IPO by Q1-Q2 2015






of 30

Mutual Partnership Agreement:

As suggested prior to the actual business engagement with the company, I must need to be

assured of a mutual Partnership agreement. It is to make clear on the division of work,

responsibilities, benefits, that my partner and I will be working on. This partnership also should

serve as the basis of the ownership and scope of the involvement within the company. I would

also suggest putting in writing the transition plan that needs to be made to put myself out of the

corporate employment and focus into the family business going forward.

The said mutual partnership agreement 11should contain sign off and details of (but not limited

to) the following:

1. Nature of Business

2. Name of Business

3. Day-to-Day Operation – equal rights to manage and control, cap of approvals to be

established

4.

Capital Contribution – Needs to be confirmed how much capital infusion I would need to put into the company (initial suggestion was P100,000.00 PHP, but this is subject to

further discussion with my partner. There was a verbal arrangement of 15% Share of the

company will be under my name, but then again it is subject to further discussion and

agreement.

5. Profits and Losses

6. Term/Termination

7.

Disputes

8.

Withdrawal/Death of Partner

9. Non-Compete Agreement

11 Partnership Agreement - www.entrepreneur.com/formnet/downloads/leg04.doc

http://www.entrepreneur.com/formnet/downloads/leg04.doc









of 30

Family Constitution:

Through further discussions with my business partner and cousin, he agrees that establishing a

family constitution early on is important to establish our legacy as a family business and to

ensure its growth and sustainability. The goal is to take care and to ensure that the vision is still

in sight and that it is on the road to realization. The following Family Constitution Contents

would be further discussed and incorporated. Further review will be done with a Legal Counsel

to ensure all aspects are covered and all items are agreed upon as it was written down.

Family Constitution entries in no particular order or priority/preference:

1. Criteria on how to join the family business

2. Guidelines in ensuring harmony in the family business

3. Guidelines in business planning

4. Dividends Policy

5. Family Compensation

6. Family Issue Management

7. Business Issue Management

8. Criteria in establishing/joining Family Council

9. Family Council Meeting Agenda

10. Cash Flow Management

11. Succession Planning






References:

I nternet Website References and Articles

JBOSS - http://www.jboss.org/

HP History - http://www8.hp.com/us/en/hp-information/about-hp/history/overview.html

Kapow Software - www.kapowsoftware.com

Kapow Competitors - https://www.g2crowd.com/products/kapow/competitors/alternatives

Meta Name Robots - http://www.metatags.org/meta_name_robots

Big Data Analytics - http://searchbusinessanalytics.techtarget.com/definition/big-data-analytics

Richard Branson on Crafting Your Mission Statement -

http://www.entrepreneur.com/article/227507

Gold Plating Definition - http://en.wikipedia.org/wiki/Gold_plating_(software_engineering)

Jay Ebben, PH. D. - Developing Effective Mission and Vision Statements -http://www.inc.com/resources/startup/articles/20050201/missionstatement.html

Partnership Agreement - www.entrepreneur.com/formnet/downloads/leg04.doc

Book Chapters/Pages that were used for reference:

Dr. Eduardo A. Morato Jr. – A Trilogy on Entrepreneurship, Book One – Preparing for

Entrepreneurship, The Many Sources of Opportunity, pp. 7-24.

Dr. Eduardo A. Morato Jr. – A Trilogy on Entrepreneurship, Book One – Chapter Two:

Opportunity Screening, p.25 – 60.

Dr. Eduardo A. Morato Jr. – A Trilogy on Entrepreneurship, Book One – Chapter Three:

Opportunity Seizing.

http://www.jboss.org/




















http://en.wikipedia.org/wiki/Gold_plating_(software_engineering)



http://www.inc.com/resources/startup/articles/20050201/missionstatement.html















MM ENTREP - Final Paper

Documents

Transcript of MM ENTREP - Final Paper