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Bart De Pelsmaeker (Unlicensed)

Bart De Pelsmaeker (Unlicensed)

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titlereadme

Be concise and precise.

The purpose of this doc Business Justification - Background is to give the team and stakeholders a succinct view on the problem space:

image-20240216-170019.png

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titlereadme for Problem section

When writing about the problem, you will also write about the customer segment. They are heavily associated with each other.

In this section:

  • unmet needs:

  • solution outline

Customer segment

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titleUnmet needs:

What problem do we solve? See if we have answers for these topics / questions:

  • Unmet needs - succinct description

    • When there is no problem, it is highly unlikely that there is a business

    • Try to describe the needs un terms of jobs the customer needs to do (Job-To-Be-Done) format.

    • Pains / Gains (try to use bullet points)

  • Existing alternatives - if applicable, and why they fail to deliver a solution

  • Why does the customer have to solve the problem now? Is there an urgent reason-to-act?

  • Is this problem at scale or local/trivial?

Start writing here:
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titleWhy UCF is better or worse positioned to solve the need

Why would we not be well positioned?

We do not have an existing footprint

We do not have direct access to the end-customers

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titleValidation and proof points:

Do we have validation of the needs?

Beyond internal conversations, discussions with partners and friends.

Industry stats

e.g. research reports, general industry numbers,…

Customer discovery interviews

Real customers, face-to-face

Solution outline

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titlePreliminary solution outline: (@product)

Use high-level descriptions of capabilities, use bullets, this is not PRD phase

  • Outline of key capabilities to address the unmet need (not technical)

Start writing here:

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titleSize of market (TAM, SAM, SOM) (@sonny)

Total Addressable Market (TAM)

The whole universe of state agencies who experience this need.

The average number of agencies per state is 150. Which more or less would bring us to 7,500 potential customers in this initiative.

Serviceable Available Market (SAM)

The part of this market that we can realistically reach and convert in a medium- to long-term.

If we assume that we can close 2% of that business that is 3 deals per state. Not accounting for a price increase that is 3 agencies x 50 states = 150 CCH Accounts. 150 accounts x $10,000 = $1.5M annually

Serviceable Obtainable Market (SOM)

What can we realistically capture of this market in 18-24 months after solution launch? What are our beach-heads? Taking into account our

  • Competitive advantage

  • Current market penetration of competitors

  • Our marketing and sales' need for time to reach the customers in (pre-)buying mode

These bits of info might help us to get clarity

  • when are states renewing the contracts - EOY or throughout the year

    • no set date - dates are unique to customer

  • are these multi-year contracts

    • mix - ServiceNow leaning to 3-yr contracts

  • which ServiceNow contracts are how many are up for renewal this year

  • ramp-up: when we have the mapping ready, what are our next steps in sales

    • proposal decision cycle: how long

      • 30 -60 days on average

    • is there a testing period from partner side

      • no

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