mpcbiz
DESCRIPTION
Mobile PC Incubation PresentationTRANSCRIPT
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MoPC Biz Proposal
Jagan Rao
6th October 2008
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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
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Opportunity Analysis
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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’)?
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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
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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
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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
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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?
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Volume Analysis : Schools
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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
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Growth Analysis
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Is it a market to be in?
• TAM > 9M• SAM : 1M• Growth : 30%• Period : > 5 years
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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
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Possible Differentiators
• Cost• Size• Form factor & ID• Mobility• Power Options
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Biz Proposal
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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
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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
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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
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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● $x launch● Access to Supply chain
Jagan’s Ten Steps
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MoPC
• PC features on a palm sized mobile device
• Community PC concept: Share your home / business PC
• Connect to your home PC over the Internet using Remote PC Client
● Access all you PC appls and SW● Store sessions for future reference.
• Share the PC between several users if you wish
• USB centric connectivity●. Standard USB Memory stick to store additional data. ● Connect a host of accessories including a variety of wireless modems to access your PC remotely on the move.
Study, Stay in touch, Enjoy your music, Play your favorite games with the MoPC!
Mobile PC.
Home PC
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MoPC
Study, Stay in touch, Enjoy your music, Play your favorite games with the MoPC!Hardware
●OMAP 2420 Processor●4” LCD display●Full Qwerty Keyboard●6 Internal USB ports for SDD and other accessories●VGA interface●Ethernet interface●GSM/CDMA/Wifi add-on accessory●Camera add-on accessory●Accelerometer add-on accessory●FM radio with recording add-on accessory●Penlight NiMH batteries
Software●Windows Mobile or Unbunto Linux●Anuna Remote PC Client●Pocket Office tools●Media player/recorder
Size & Weight●110X70 MM●100 Oz
ID2ID3
ID4
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MOPCCustomer : Students
USP ● PC Compatible● Community PC : Shared cost● Access to PC anywhere● All Mobile Features● Palm Sized● Runs of standard batteries● Various IDs
Why we win:
• Windows
• Sub 5000/-
• Mobile Version of NetPC
• Sharing of PC and associated software
• Service Bundles
Competitor Models
ASUS EEPC Intex Gold BA73411
• Status: Shipping
• Cost : Rs. 14000/-
• Features:
• Linux
Avg. ’09 ASP
Avg. ’09 CPU
Avg. ’09 GM %
‘09 GM ($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
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Roadmap (Device, Software, Accessory)
H1-09 H2-09 H1-10 H2-10
$x
$x
$x $x$x
$x
Rs. 4999
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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
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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