Precise Software Solutions Case Solution

Case Solution

When and the way should a powerful introduce a cutting-edge awesome product? Introduce too early and functionality may not be there, too far gone and effective competition may seem. Precise Software Solutions, located in Westwood, MA, can be a small, growing company getting a effective--although narrowly specific--software product for database performance management. In 1999, it had the roots of something totally new with considerably bigger functionality and market appeal. However, this awesome product would potentially attract another audience within the client's IT organization. Once management decides when you introduce the item, it needs to also choose to get this done. Particularly, if the should product be provided utilizing it . sales pressure as other effective products? Or, would the business be best creating a separate group specific as of this new audience? Finally, it needs to also choose to cost the item. Its current products have previously created sales of $15K to $25K. The firm feels that the requirement for this awesome product may be five occasions this amount. Is this fact possible? Will the identical sales staff work? Teaching Purpose

Excel Calculations

Questions Covered

1. Should Alon plan on introducing Insights at OpenWorld 2000? Why or why not?

2. What should Precise’s sales strategy be for Insights? Should they launch a separate salesforce for the new product or sell it through their existing sales force? How good is theircurrent sales force?

3. How will the SQL sales force react to the introduction of Insights? Will this differ if welaunch Insights in time for OpenWorld or not?

4. What is the difference between selling their current core product – Precise/SQL – andselling the new Insight product?

5. Keeping in mind the limited functionality of the first version of the product, how shouldinsights be priced? How should precise think about segmentation for this new product?

6. Develop an ROI model for the Precise/SQL product. Compare this to the price they arecharging for the product. Of what use are these data in developing an ROI for Insights?

7. What is the value of precise software’s products for its customers? Is it getting the value?