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coOptimum: Objectives and Strategy.



Objectives

coOptimum’s has the following strategic objectives:

• To create the conditions where the full TPM market opportunity is realized. This means that we want to see adoption by 9½~15 million users, with a peak market revenue for software licenses of $7½~11 billion;
• That coOptimum-based products earn a market share of 30% or better of available software license revenue on a sustainable basis;
• That coOptimum is able to sustain a net earnings margin (net earnings over gross license revenue, including partner revenue) of 20% or better;
• That coOptimum becomes cashflow positive within 4 years of beginning product development;
• That the expected rate of return for initial investors is 15 times or better over 5 years.

Under these targets, we would aim for coOptimum to reach peak annual earnings of $450 ~ $660 million.


Strategy

coOptimum’s core strategy is to assemble a center-of-excellence to the develop the market’s first and foremost Integrated TPM (ITPM) packaged software application. The center-of-excellence will be composed of experienced developers and designers who will use their skills and knowledge to create innovative and practical tools that can be used within the ITPM application. The center-of-excellence will keep the application fresh and competitive throughout the market lifecycle. It will define the TPM category and be the premier provider of solutions.

The product and pricing strategies ensure that the ITPM application can be purchased and exploited very quickly and simply by the early-adopting business teams within an organization. As the number of teams grows, the ITPM system can evolve without disruption to the early users. The objective is to allow team leaders to start experimenting with the application without the need for time-consuming capital purchasing requisitions or significant IT involvement. Initial teams will be able to operate without having to install local servers. Customers purchasing the ITPM application from their CPM vendor will install a version that is pre-integrated with that vendor’s products.

The distribution strategy is to build up a diverse portfolio of channels. Channels fall into two classes: direct and partner. The early-stage strategy is to partner with established CPM vendors (specialists or enterprise software companies that include CPM and BI as part of their product mix). A separate channel team will be established for each partnering CPM vendor and the potential TPM users within their existing customers will be considered as a separate market segment.