MoPC Biz Proposal
Jagan Rao
6th October 2008
RecapTechnology
Products Markets
Adoption Segmentation DemograhicsPsycho metrics
Technology
Product
Market
RevenueYear 1 Year 2 Year 3 Year 4 Year 5
CGS
GM
R&DSG&A
OE
SundryInterest
PBT
Volumes
TotalCost
FC
VC
TCBEP
Ratios
-3 0 1 2 3-2 -1
need rel ship
40% 25% 35%
idea Biz plan project
AB
C
GM %%
Mar
ket
Define SpecificationUnderstand Customer
Define Customer
Fuzzy Frontend
Product Spec
Market Strategy
Technology
Opportunity Analysis
Low Cost PC - Comments
• Home PC market & Internet Penetration has been low• Dominated by MNCs because of Brand - Quality & Support• Innovation Or Cost : That is the Question!• Innovation Creates High Margins
– New Products & markets– Edge in existing markets
• Cost (and SP) Improve Margins and is a function of – Sourcing cost, conversion cost, Inventory & distribution /support cost
all of which are a function of Volume. – Innovation (& therefore R&D cost) almost does not figure in this at high
volumes – no point in optimizing this!• Market Parameters
– Target Market Segment : E.g. What was the target segment for the Simputer?
• User segment: Home? Enterprise? Rural?• Need segment – Entertainment? Biz? SOHO?
– Demand (latent/real/) : Is there a latent demand that will propel the biz? (e.g. Small Car and CTV in 80’s or Landlines in 90’s or Mobile in 00’)?
Year
2% 3% 5%9%
13%
97% 98% 97% 95%91%
87%
3%
1716
2345
3124
3810
5047
6341
0%
20%
40%
60%
80%
100%
120%
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
.Notebooks Desktop PC Total PC
Ove
rall
PC
Mar
ket
Siz
e
(In ‘000)
• Notebooks account for 13% PC market, up from 9% in 2005-06.
• Notebook sales grew by 97%, while growth in Desktop sales was only 19%.
Growth in 2006-07 over 2005-06 26%97%19%
Overall PCNotebooksDesktop PC
What is being sold”Notebook vs Desktop sales
6
Where is it being sold?Where is it being sold?Businesses vs. Households Businesses vs. Households (Half Yearly Desktops)(Half Yearly Desktops)
1,831,583 1,640,7401,958,560
1,616,590
2,125,637
1,463,563
510,827476,907
631,574572,140
834,254983,242
0
900000
1800000
2700000
Oct.04-Mar.05
April-Sept.05
Oct.05-Mar.06
April-Sept.06
Oct.06-Mar.07
April-Sept.07
Businesses Households
• Business Sector accounted for 62% of the market; consumption decreased by 17% over H1/2006-07
• Consumption in the households increased by 72% compared to H1/2006-07, accounting for 38% of the sales
Uni
ts
7
H1/2006-07
• Unit sales of MNC brands improved by 33%
• Indian brands registered a decline of 24%, while Assembled declined by 10% in
absolute terms
H1/2007-08
Who is is selling?Who is is selling?Desktop market: Indian, MNC & Assembled Desktop market: Indian, MNC & Assembled
23%
37%
40%
Indian Brands MNC brands
Assembled
17%
48%
35%
Indian Brands MNC brands
Assembled
How to create demand (Volume)?
• We need to Look at – Where are the big Needs? Today and after 2 years– Where are the big Volumes? Today and after 2 years
• What is the affordability?– What is the cost point?– What is the biz model?
• Where is the customer– Where are the big clusters?– How does one attract customer attention?
Volume Analysis : Schools
696,609
B.E
1,465,028
BCom
256,7481,490,7853,772,216122,257198,719469,29155,352
MBBSBScBAMComMSCMAPh.D
Enrollments in 2004
Source: Selected Educational Statistics, Ministry of HRD, N Delhi
Volume Analysis
9 Million Degree Students in 2004
Growth Analysis
Is it a market to be in?
• TAM > 9M• SAM : 1M• Growth : 30%• Period : > 5 years
Generating the Product Spec (for today)
• What is needed in the Product– Office & Windows– Run standard Windows/Linux Apps– Storage– CD/DVD Media– USB to transfer files
• How much will the customer pay?– 50% of tuition or transport fees?– 2X cost of books?
• Likely Biz Models– Retail– Rate contract
Available TodayNeed Who Provides
• Desktop• Laptop• WinMobile
10,000-50,000
• HP• Dell• Acer• Apple
• HCL• iNTEX• Chirag
Possible Differentiators
• Cost• Size• Form factor & ID• Mobility• Power Options
Biz Proposal
Product Alternatives
• Cost reduced Laptop/ Desktop: – Crowded market, no differentiation, not playing to strength
• PC centric Mobile Phone running WindowsMobile with Win32API Layer for XP compatibility– Not feasible
• PC centric Mobile Phone running WindowsMobile or Linux with remote client capability– Initial study shows feasibility: needs to be validated and
optimized to create differentiation
1. What have you identified as the Opportunity? ● All Students 9th upwards will need a PC to learn from the Web,
download tutorials, practice programming etc.● India market alone is projected at 1M users initially growing at
30% CAGR
2. Who are the Stake Holders & Players?● PC Mfr, Sales channels, Support channels● HP, Dell, Acer, HCL, Imtex …
3. Who is your customer and what is the revenue
flow?● Students 9th to Degree/PG● Student -> School/College -> Supplychaiin
Jagan’s Ten Steps
4. What is your product & differentiation value?● Product: MoPC with Remote client● Differentiation :Cost, ID, Mobility
5. How will your customer measure your value● Ability to run PC ware : Windows Apps and Tools● Initial Cost and expandability for the future
6. What is your Business architecture model?● Sell Basic model at nominal profit● License margins off educational software
5. What is your Goto Market Strategy● Sell through book shops : along with books● Sell through institutions● Partner with a large brand
Jagan’s Ten Steps
2. Map a customer centric approach to expanding your product● Accessories● Music, Gaming● New IDs
3. How will you keep a running lead against other entrants?● ?
10. What do you need to execute?● Market Research● Access to Design house● $X for Field Prototype● $x launch● Access to Supply chain
Jagan’s Ten Steps
MoPC
• PC features on a palm sized mobile device
• Community PC concept: Share your home / business PC
• Connect to your home PC over the Internet using Remote PC Client
● Access all you PC appls and SW● Store sessions for future reference.
• Share the PC between several users if you wish
• USB centric connectivity●. Standard USB Memory stick to store additional data. ● Connect a host of accessories including a variety of wireless modems to access your PC remotely on the move.
Study, Stay in touch, Enjoy your music, Play your favorite games with the MoPC!
Mobile PC.
Home PC
MoPC
Study, Stay in touch, Enjoy your music, Play your favorite games with the MoPC!Hardware
●OMAP 2420 Processor●4” LCD display●Full Qwerty Keyboard●6 Internal USB ports for SDD and other accessories●VGA interface●Ethernet interface●GSM/CDMA/Wifi add-on accessory●Camera add-on accessory●Accelerometer add-on accessory●FM radio with recording add-on accessory●Penlight NiMH batteries
Software●Windows Mobile or Unbunto Linux●Anuna Remote PC Client●Pocket Office tools●Media player/recorder
Size & Weight●110X70 MM●100 Oz
ID2ID3
ID4
MOPCCustomer : Students
USP ● PC Compatible● Community PC : Shared cost● Access to PC anywhere● All Mobile Features● Palm Sized● Runs of standard batteries● Various IDs
Why we win:
• Windows
• Sub 5000/-
• Mobile Version of NetPC
• Sharing of PC and associated software
• Service Bundles
Competitor Models
ASUS EEPC Intex Gold BA73411
• Status: Shipping
• Cost : Rs. 14000/-
• Features:
• Linux
Avg. ’09 ASP
Avg. ’09 CPU
Avg. ’09 GM %
‘09 GM ($M)
Launch date July 09
On-Time
Differentiated
GM$
CURRENT STATUS*
Orig Plan Current View
X
X
X
X
X
Market Segments:
Lifetime Units 10 Million
$120
$80
$40
50%
HTC P3400
• Status : Shipping
• Cost : Rs. 17,500/-
• Features
• Linux
• Status : Shipping
• Cost : Rs. 9000/-
• Features
• PocketPC
Product Overview
Novatium Net PV
• Status : Shipping
• Cost : Rs. 2999/-
• Features
• Thin client DUDM
• All Apps on Server
• Wifi/Ehternet
Roadmap (Device, Software, Accessory)
H1-09 H2-09 H1-10 H2-10
$x
$x
$x $x$x
$x
Rs. 4999
Product Architecture
CorePlatformCore
Platform
CorePlatform
CorePlatform
Inpu
tIn
put
Inpu
t
Out
put
Out
put
Out
put
User I/FUser I/FUser I/F
System I/FSystem I/FSystem I/F
Suggested Plan
MRD/PDConcept DeviceOn OMAP
Evaluate/FieldTrail for Remote
PC Client
Proof of conceptRemote Client
Fuzzy Front End Biz Case
Execute
Launch
5M 2M 6M
Funding
Contracts
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