Business Plan for A Software Quality Assurance Company

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Business Plan for a New Software Quality
Assurance Company

• 28 August 2005
• The information provided in this business plan is
  confidential. Please do not disclose it to
  anyone without checking with us first. Thanks.

Innofy Software Labs Quality Assurance
Specialists
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Personal Goal

• To build an effective and lasting software
  quality-assurance organization
• To found it on a set of shared professional and
  social values

Innofy Software Labs Quality Assurance
Specialists
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Values

• Make meet commitments
• Recognize accomplishment
• Communicate without fear

• Improve continuously
• Teach learn from each other
• Act with a sense of urgency

• Play to win-win
• Require quality beyond customer expectations
• Deliver more than what was promised

• Think act like an owner
• Keep a balance in your life
• Have fun
• Give back to the community

Innofy Software Labs Quality Assurance
Specialists
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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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Innofy Software LabsQuality Assurance Specialists

• A provider of quality assurance services that
  cover the complete software life-cycle
• Focused on the financial and telecom domains
• Headquartered in Dubai, Innofy will have sales
  and support offices in Singapore, Washington and
  London, and engineering centers in Dubai, Lahore,
  Karachi and Islamabad

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Mission

• Planned and sustained growth in

• Number of professionals
• Revenue per professional
• Profits per professional

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Mission
Build lasting relationships with our clients by
consistently exceeding their expectations
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Key Objectives
1st Year 5th Year
Number of Professionals 50 800
Revenue US630,000 US47,430,000
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Strategy
Sales Sell to Asian operations of US businesses Leverage them to get work from their parents
Domain Focus on no more than two biz domains
Cultural focus Speed through innovation Craftsmanship
HR retention Ensure prof. growth Share ownership
HR growth Separate training institute Dubai center
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Main Risks
Short Term Sales
Long Term Growth in the number of professionals
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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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Functional Structure
Singapore
Lahore
Corporate
Washington
Dubai
Institute
London
Islamabad
Karachi
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Growth in the No. of Professionals
1st Year 2nd Year 3rd Year 4th Year 5th Year
Corporate 3 4 6 8 10
Engineering Lahore 42 96 169 317 490
Sales Support Singapore 2 3 4 5 5
Sales Support Washington 3 10 20 30 40
Engineering Dubai - 15 35 45 50
Sales Support London - 2 3 4 5
Engineering Islamabad - - 25 60 100
Engineering Karachi - - - 45 100
Total 50 130 262 513 800
Institute 5 8 11 14 17
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Legal Structure

• The Innofy family will consist of six sister
  companies Two registered in Pakistan One each
  in Singapore, US, UAE and the UK
• Initially, all six will have the same Board of
  Directors

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Start-Up Expenses

• Total start-up expenses (for the Corporate,
  Lahore engineering center, and the Singapore and
  Washington sales and support offices) for the 1st
  year, including
• Short-term assets (computers, UPSes, generators,
  furniture, etc.)
• Cash required to handle the operations
• US1,362,000

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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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Service Description

• We will provide quality assurance services
  covering the complete software life-cycle
• Our distinguishing feature will be the rapid pace
  of our assurance process
• We will focus on the financial telecom
  services domains

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Verification, then Validation

• The focus during the first three years of
  operation will be on verification, i.e. testing a
  design against specifications, testing code
  against design, etc.
• Starting in the 4th year, activities related to
  validation, i.e. testing against operational
  goals, will commence

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List ofServices

• Request for proposal QA
• Software supplier capability assessment
• Requirements specifications document QA
• Users manual QA

• Operation maintenance manual QA
• Software development plan QA
• Acceptance testing document QA
• Test plan QA

• System architecture document QA
• Detailed design document QA
• Coding standards QA
• Design compliance QA

• Black-, gray-, white-box testing
• Automated testing
• Load testing
• Integration testing

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Competitive Comparison (1)

• The competition comes in several forms
• No competition at all
• In-house SQA team
• Most significant
• Disadvantages Inefficiency High employee
  turn-over
• Our advantages Focus Speed Cost Long-term
  support

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Competitive Comparison (2)

• Large, international SQA companies
• Disadvantages Generalists They drive their
  clients Cost Lack of innovation
• Our advantages Specialists Innovative
  solutions Speed Fixed-cost

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Competitive Comparison (3)

• Off-shore SQA Companies
• Not many, yet!
• Low cost
• Disadvantages Inefficient Unfocused Lack of
  domain knowledge Weak marketing
• Our advantages Domain focus Professional
  service On-site presence Methodology
  fine-tuned for speed Partnerships with
  established players

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Sales Supplements

• The business will begin with a corporate Website
  establishing the positioning, followed by a
  printed brochure

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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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The Worldwide SQA Opportunity

• Annual world-wide spending on software is
  approaching a trillion dollars
• The developer to SQA-engineer ratio in reasonable
  software development organizations ranges from
  31 to 12
• Estimate of the SQA component of software
  development spending 300 billion

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Summary

• We will be focusing on small to medium sized
  projects
• We will be targeting businesses that are in a
  hurry (2-10 week turnaround time) to get the
  quality of their (or their clients) software
  assured
• Our focus will be on software systems for the
  financial and telecom sectors

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Market Segmentation
Software Developer Organizations

• Software User Organizations

• Organizations looking for assistance in getting
  the quality of the software they are developing
  assured according to world-class standards

Organizations looking for third parties to assist
them in getting software of high quality developed
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SQA in Pakistan The Opportunity
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SQA in Pakistan 2002 Survey
Number of Developers Number of SQA-Engineers Deficit
Survey sample 394 74 57
Estimate for the whole country 5000 939 728
With respect to a suggested developer-to-SQA-eng
ineer ratio of 31
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SQA in Pakistan The Opportunity

• There is a clear deficit, widening at a rate
  greater than the rate of growth of the industry
• The deficit has resulted in an industry-wide
  weakness in quality, and correspondingly, rates
• The local software export companies will very
  much appreciate any effort that can help them
  improve their rates

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Distributing Our Service
Through the Internet
Through On-Site Presence

• Software-to-be-assured will be delivered to one
  of our engineering centers through the Internet,
  and the results will be delivered through the
  same channel

Our highly-trained professionals will move to the
clients premise and assure the quality of the
software by following Innofys high-performance
methodology
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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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Why Pakistan?

• Majority of SQA activities require little
  knowledge of software development expertise
• The key requirements for that majority are
  analytical skills and domain knowledge
• Innofy will hire persons with superior analytical
  abilities and domain knowledge in her focus areas
  from the engineering, banking and finance
  professions. Pakistani institutions possesses a
  record of producing professionals of high-quality
  in these disciplines

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Selling Our Services

• Our services will be sold and purchased mainly on
  a word-of-mouth basis, with relationships and
  past experience being the important factors
• The key to a favorable decisions made by our
  initial clients and partners will be the trust in
  the international experience, professional
  reputation and academic qualifications of our
  executive team

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Sales Strategy

• Innofy will start its sales effort first in
  Singapore, and then in Washington
• The focus in Singapore will be on getting
  projects through established international
  players
• The emphasis in Washington will be on leveraging
  those initial partnerships

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Certification Targets
Year Certification
1 ISO9000
3 CMM Level 3
4 CMM Level 4
5 CMM Level 5
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Revenue Growth

• The key corporate goal of Innofy is to
• systematically
• increase the overall
• per-SQA-engineer
• productivity
• An advantage of
• working in partnership
• with established
• players is that our
• rates can be the same
• as those for their
• in-house engineers

10
20
30
20
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Revenue Forecast
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Exit Strategy

• Listing on the Karachi Stock Exchange/Regional
  Exchanges/Nasdaq

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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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Organizational Structure

• The company will start with 3 key executives
• CEO
• CTO
• CMSO
• They will have a high level of international
  experience, excellent professional reputation and
  expertise in software development and quality
  assurance

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Overview

• Executive Summary
• Company Summary
• Services
• Market Analysis
• Strategy Implementation
• Management
• Financial Info

Innofy Software Labs Quality Assurance
Specialists
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ForecastsCosts, Revenue, Profits
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Investments
1st Year 2nd Year 3rd Year
US1,362,000 US2,117,000 US1,381,000
Returns Over Five Years
NPV _at_ a discount rate of 17 US4,395,000
IRR 55
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Financial Worksheet
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Number of ProfessionalsRevenue/ProfessionalProfi
ts/Professional
800
513
262
130
50
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Appendix The Institute

• A for-profit organization - registered as a
  separate private limited company in Pakistan
  focused on the training of SQA personnel
• Requires an initial investment of US200,000

Innofy Software Labs Quality Assurance
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Institute's Output
Program 1st Year 2nd Year 3rd Year 4th Year 5th Year
Short Courses (1-10 days) 100 200 400 700 1000
Post-BSEngg Diploma (6 mo) 40 80 150 300 500
Appendix
Appendix