A BUSINESS MODEL FOR A NEW IT COMPANY (ISSEG)

Dr. TALAAT REFAAT

SHERATON CAIRO

BUSINESS STRATEGY FOR ISSEG

BACKGROUND

ISS is an IT company stablished outside Egypt. It is a SoftWare company interests in Oracle Applications.

The Owners of ISS were thinking about expanding there work by establishing ISS in Egypt (ISSEG) with Egyptian partner's.

Several meeting were held for this purpose at SHIRATON CAIRO.

The following is a real presentation in this context. SDM Methodology was utilized to give insights while negotiation.

INTRODUCTION

To establish a frame work for ISSEG business strategy.

To limit the domain / scope of work.To organize our thoughts & ideas.To get the BEST time utilization.To decide on different issues.

TOPICS OF DISCUSSION session # 1

Mission statement for ISSEG.Vision statement for ISSEG.Environment of ISSEG.Goals of ISSEG.Business plan for ISSEG.

TOPICS OF DISCUSSION session # 2

Oracle partnership agreement.Appointing an accountant.Appointing a lawyer.Key personnel .Company formation.

TOPICS OF DISCUSSION session # 3

Site specs & selection criteria.Furniture specs & selection criteria.Computer system requirement.IT Graduates selection criteria.Training programs , Training policy.

session # 4

Alternative site visits.

TOPICS OF DISCUSSION session # 5

Budget (20-25 graduate trainees).Estimate funding requirement.Proposed size for investment.Shareholding & profit proposal.ISS role ,,,,,ISSEG role.Conclusion .

TOPICS OF DISCUSSION session # 1

Mission statement for ISSEG.Vision statement for ISSEG.Environment of ISSEG.Goals of ISSEG.Business plan for ISSEG.

MISSION STATEMENT FOR ISSEG

“ To Setup a pool of Oracle Software Specialists capable of consultation assignments as well as Performing a full or a part of Software development Cycle.”

VISION STATEMENT FOR ISSEG

“ Quantitative approaches , Methodologies , International standards , Recent tools , Commitment , Best utilization of resources ,,,, ,,,, ,,,, Become common terminology that everyone in ISSEG adopts in order to help him achieving his objectives.”

ENVIRONMENT OF ISSEG

There are many dimensions

of ISSEG environment. One approach is to view

ISSEG as follows :

ENVIRONMENT OF ISSEG (cot.)

The need for setting up such organization.

Strengths of ISSEG.Weaknesses of ISSEG.Threats facing ISSEG.Opportunities for ISSEG.

GOALS OF ISSEG

In the frame of the characteristics of the current situation in ISS, the mission statement ,the vision statement of ISSEG ,and the Environment of ISSEG ; there are three GOALS .

GOAL #0 (G0): TO ESTABLISH :

Mission statement ,vision statement , Goals ,

Policies , Procedures ,Adequate Organization ,Objectives , Scope of work , &Job analysis & Job description.

GOAL #1 (G1):

G1.1 : To select and establish a suitable site for ISSEG in Cairo.

G1.2 : To select and recruit IT graduates.

G1.3 : To select , acquire , and install computer system (H/W ,S/W, Cabling ).

GOAL #1 (G1) (cont.):

G1.4 : To group the employees into three categories : Oracle Financial , Oracle Tools , Web Applications Design.

G1.5 : To train them.

GOAL #2 : G2 :

G2.1 : To manage ISSEG in Cairo. G2.2 : To build a good

reputation.G2.3 : To maintain an

atmosphere of LOYALTY and BELONGING among the employees.

ISSEG BUSINESS PLAN

1. Site selection.2. Furniture acquisition.3. Computer system acquisition.4. Recruitment.5. Training.

ISSEG BUSINESS PLAN (cont.)

6. Mission Statement ,Vision Statement& Goals Establishment. 7. Policies & Procedures Establishment.8. Objectives , Scope of work , Job analysis & Job description Establishment.9. Organization Structure.

C1 C2 C3 C4 C5

1.1

SITE SELECTION

ISSEG BUSINESS PLAN 1

C1: site specs& selection criter.C2: avail. budget.C3: cash flow.C4: constraint(s).C5: ISS policy. I1.1 I1.2 I1.3 I1 :site offers I1.4 I1.5 I1.6 I1.7

specific site O1

contract(s) O2

SITE SPECS

1. Level : High ( IBM, Oracle, WTC) Medium. Poor.2. Meter square / man.3. No. of employees now / seen future.

CRITERIA FOR SITE SELECTION

C1.1 Location : Cairo down town / Heliopolis / New cities / Free zone.C1.2 Type ( business center / non )C1.3 Building features / facilities.C1.4 Rental VS owned.C1.5 Cost.

C1 C2 C3 C4 C5 C6

1.2

FURNITURE ACQUISITION

ISSEG BUSINESS PLAN 1

C1: site specs.C2: avail. budget.C3: cash flow.C4: constraint(s).C5: ISS policy. C6: furniture specs. I2.1 I2.2 I2.3 I2: furniture offs I2.4 I2.5 I2.6 I2.7

furniture O3

contract(s) O2

j

C7 C2 C3 C4 C5

ISSEG BUSINESS PLAN 1

C7: techn.dev.trendsC2: avail. budget.C3: cash flow.C4: constraint(s)C5: ISS policy.

I3: org. objectives I4: org. chart , funcs, respons. I5: environmentI6: users nature I7: computer offers

feasibility of auto O4detail descr/e.sys. O5logical des. /n.sys. O6new comp. sys.str. O7comp. sys. specs O8

COMPUTERSYSTEMACQUISITION

1.3

MAIN ACTIVITIES FOR COMPUTER ACQUISITION

Preliminary study of ISSEG. Feasibility study for automation. Requirement evaluation &

logical design. Computer system design &

specs. RFP preparation. Computer system eval.&

selection. Negotiation & contracting.

j

C8 C2 C3 C4 C5

ISSEG BUSINESS PLAN 1

C8: grad.eval. criterC2: avail. budget.C3: cash flow.C4: constraint(s)C5: ISS policy.

I8: advertise/specsI3: org. objectives I4: org. chart , funcs, respons. I5: environmentI6: users nature I9: candidates.

winner candidates O9

manpower dB O10

RECRUIT-MENT.

1.4

CRITERIA FOR CANDIDATES SELECTION

Total experience. Related experience. Education. Appearance. Oral comm. skills. Stability of current job Stability of total

experience.

Software skills. Hardware skills. LAN skills. Oral examination. Salary requirement. Others.

j

C8 C2 C3 C4 C5

ISSEG BUSINESS PLAN 1

C8: tutors avail.C2: avail. budget.C3: cash flow.C4: constraint(s)C5: ISS policy.

winner candids. I11: training sched. I12: training materials & facilities.

qualified empl. O11

TRAINING

1.5