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SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUA ITY ASSURANCE
ASSUR
SPECIALISTS
ASSURANCE LISTS QUALITY
ASSURANCE
QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS
ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY
SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE
QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS
SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE
QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS
QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS
ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY
QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS
ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY
ASSURANCE SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY
SPECIALISTS QUALITY ASSURANCE SPECIALISTS QUALITY ASSURANCE
QUALITY ASSURANCE SPECI QUALITY ASSURANCE
UALITY ASSURANCE
QUALITY CE SPECIALISTS
ECIALISTS
ASSURANCE
QUALITY
SPECIALISTS
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
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
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
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Mission
Planned and sustained growth in:
Number of professionals
Revenue per professional
Profits per professional
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Mission
Build lasting relationships with our clients by consistently exceeding their expectations
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Key Objectives
1st Year 5th Year
Number of Professionals 50 800
Revenue US$630,000 US$47,430,000
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Strategy
SalesSell 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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Main Risks
Short Term Sales
Long Term Growth in the number of professionals
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
Functional Structure
Washington
Singapore
London Islamabad Karachi
Lahore
Dubai
Corporate
Institute
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Growth in the No. of Professionals
1st Year 2nd Year 3rd Year 4th Year 5th Year
Corporate 3 4 6 8 10Engineering Lahore 42 96 169 317 490
Sales & Support Singapore 2 3 4 5 5Sales & Support Washington 3 10 20 30 40
Engineering Dubai - 15 35 45 50Sales & Support London - 2 3 4 5
Engineering Islamabad - - 25 60 100Engineering Karachi - - - 45 100
Total 50 130 262 513 800
Institute 5 8 11 14 17
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
US$1,362,000
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
List ofServices
Request for proposal QA Software supplier capability assessment Requirements & specifications document QA User’s 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
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Sales Supplements
The business will begin with a corporate Website establishing the positioning, followed by a printed brochure
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
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 3:1 to 1:2
Estimate of the SQA component of software development spending: $300 billion
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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 client’s) software assured
Our focus will be on software systems for the financial and telecom sectors
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Market Segmentation
Organizations looking for assistance in getting the quality of the software they are developing assured according to world-class standards
Software User Organizations
Software Developer Organizations
Organizations looking for third parties to assist them in getting software of high quality developed
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
SQA in Pakistan: The Opportunity
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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-engineer ratio of 3:1
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Distributing Our Service
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Through On-Site Presence
Through the Internet
Our highly-trained professionals will move to the client’s premise and assure the quality of the software by following Innofy’s high-performance methodology
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Certification Targets
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Year Certification
1 ISO9000
3 CMM Level 3
4 CMM Level 4
5 CMM Level 5
Revenue Growth The key corporate goal of Innofy is tosystematicallyincrease the overallper-SQA-engineerproductivity
An advantage ofworking in partnership with established players is that ourrates can be the sameas those for theirin-house engineers
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
0
20
40
60
1 2 3 4 5
Year of Operation
Targets for Revenue-per-Pakistan-Based SQA-Engineer (1000xUS$)
+20%
+30%+20%
+10%
Revenue Forecast
0
10
20
30
40
50M
illio
n U
S$
1 2 3 4 5Year of Operation
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Exit Strategy
• Listing on the Karachi Stock Exchange/Regional Exchanges/Nasdaq
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
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
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Overview
Executive Summary Company Summary Services Market Analysis Strategy & Implementation Management Financial Info
Innofy Software Labs: Quality Assurance Specialists
Forecasts:Costs, Revenue, Profits
-10
0
10
20
30
40
50
1 2 3 4 5
Year of Operation
Mill
ion
US
$
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Investments
NPV @ a discount rate of 17% US$4,395,000
IRR 55%
1st Year 2nd Year 3rd Year
US$1,362,000 US$2,117,000 US$1,381,000
Returns Over Five Years
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
Financial Worksheet
RevenueLahore 30x42x0.5 630 36x96 3,456 47x169 7,943 56x317 17,752 62x490 30,380Dubai 54x15x0.5 405 70x35 2,450 84x45 3,780 93x50 4,650Islamabad 47x25x0.5 588 56x60 3,360 62x100 6,200Karachi 56x45x0.5 1,260 62x100 6,200TotalCosts for the SQA-Engineering WorkforceLahore 20x42x0.8 672 22x96 2,112 25x169 4,225 28x315 8,820 31x490 15,190Dubai 50x15x0.8 600 56x35 1,960 63x45 2,835 70x50 3,500Islamabad 25x25x0.8 500 28x60 1,680 31x100 3,100Karachi 25x45x0.8 900 28x100 2,800TotalCosts for the Sales and Support WorkforceSingapore 120x2 240 110x3 330 100x4 400 90x5 450 101x5 505Washington 240x3 720 200x10 2,000 190x20 3,800 180x30 5,400 170x40 6,800London 200x2 400 190x3 570 180x4 720 170x5 850TotalCosts for the Corporate OfficeCorporate 120x3 360 134x4 536 151x6 906 169x8 1,352 189x10 1,890TotalProfitP/ S
NPV @ 17%IRR
All currency figures in Thousand US$
8,155
672 2,712 6,685
4th Year
2,730 4,770 6,570
5th Year
(1,362) (2,117) (1,381) 3,995 12,795
1st Year
960
2nd Year 3rd Year
906 1,352 1,890360 536
-216% -55% -13% 15%4,395
55%
27%
630 3,861
14,235 24,590
10,981 26,152 47,430
The number ofprofessionals isshown in bold
Start-up year’sramp-up discountis shown in italics
Number of ProfessionalsRevenue/ProfessionalProfits/Professional
Summary … Company … Services … Market Analysis … Strategy … Management … Financials
-40
-20
0
20
40
60
1 2 3 4 5Year of Operation
Tho
usan
d U
S$
50 130262
513
800
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 US$200,000
Innofy Software Labs: Quality Assurance Specialists
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
AppendixAppendix
