Product Development Plan

Sample eClaim System

{Author Name}

Executive Summary

Year 1 Year 2 Year 3 Year 4 Year 5

Sales 2 1 3 4 5Net Profit before Tax

31000$ 251000$ 951500$ 1236520$ 1321450$

Investment

25100$ 99010$ 89010$ 59010$ 29910$

Employment

24 21 7 6 5

Risk 4.3% 2.3% 1.2% 1.2% 1.2%

Executive SummaryThis plan is about a Transactions Management System that targets insurance sector to automate processing, tracking and tracing Incurrence claims.

The main objectives of this plan are the following:

1. Make {Your Organization Name} among the top three leaders in the market who provide automation solutions for insurance sectors.

2. Increase the revenue of {Your Organization Name} by 1854,321$ during 5 years.

3. Strengthen the presence of {Your Organization Name} in the MENA region.

Objectives

Product Description

Sample eClaim System is a Transactions Management System that is used primarily for tracking and tracing Incurrence claims across different departments and sections within one or a group of Incurrence companies. The system automates such workflows and facilitates transactions’ monitoring and processing.

It also helps in balancing workload as well as managing and evaluating employees’ performance, among many other benefits. On the other hand, applicants may use the system to check the status of their applications/transactions.

Product Definition

• Customizable work queues with simplified drag-and-drop workflow design.

• A personal, client-configurable business decision engine.

• Trend-seeking data analytics and reporting tools.

• Claims portal for accelerated, secured, real-time access to bill review data.

• Electronic billing and payment processing.

• Quick searches by bill, claim, or provider

• Views of bills waiting for review

• Adjuster authorization of bills

• Productivity tools such as alerts, watchlist, reminders.

Features

• Easy-to-use application interface

• Leading-edge technology

• Enhanced value via multiple partnerships

• Scalable application

Non-Functional Features

eCliam will provide the target customers with the following benefits:

• Improve Customer Service

• Increase loyalty

• Increase efficiencies

• Save money & time

• Reduce human mistakes

Benefits to Customers

Market Analysis

21%

28%23%

15%

13%

Market Segments

Full Line Insurance Insurance BrokersProperty & Casualty Insurance ReinsuranceLife Insurance

Target Market The Target Market is the insurance sector with more emphasis on the Insurance brokers and Property & Casualty Insurance segments.

The insurance industry - especially in the Middle East - is currently in a low or no-growth market so the key imperative of this industry is to accelerate performance for profitable growth through focus on informed interactions, streamlining operations and delivering enterprise resilience.

As part of  the effort of the insurance companies to develop customer-centric visions that will allow them to retain their customers and grow their business, there is a need to benefit from embracing IT automation solutions through:- Delivering enterprise resilience- Streamlining operations and improve agility- Accelerating performance- Managing and reducing risk through formalizing traceability

Market Needs

Insurance companies are operating in a difficult environment. Interest rates are low, affecting returns on assets under investment, and many consumers are finding traditional life and/or annuity products hard to afford. Insurance companies are under pressure to bring new products – such as policies with lower face value – to market more quickly, and to speed up the underwriting process to reduce the chances of a new customer withdrawing his or her application.

In trying to deal with these challenges, however, Insurance companies are working within the limitations of outdated systems – often a patchwork of legacy systems stitched together following a series of mergers and acquisitions. The costs of outright system replacement can be daunting, and customized solutions can be both expensive and imprecise. However, the benefits of automated systems for new business and underwriting – in terms of speed, accuracy, cost reduction and improved service – are compelling, as well.

Under such circumstances, it is not surprising that the software as a service (SaaS) delivery model is gaining in popularity. The growth of SaaS models for automated systems might best be described as slow and steady. Recent surveys have indicated that more than a third of insurance customers currently use some form of SaaS, and 20 percent plan to adopt such a model within the next 12 months.

Market Trends

• The Market Potential is about 15 deals during the first 5 years with average of 3 deals per year.

• The demand for SAAS deployment model is expected to increase as it has the less upfront investment.

Market Potential

Year 1 Year 2 Year 3 Year 4 Year 50

0.51

1.52

2.53

3.5

SAASOn-PremisisPay-AS-You-GoD

eals

• Scalability• IntegrationProduct

• Many Pricing ModelsPrice

• Gulf• Middle eastPlace

• Events• NewslettersPromotion

Marketing Mix

Since this type of products requires special focuses on developing long-lasting relationships with clients, the Marketing Orientation that will adopted is Relationship Marketing.

The  marketing strategy should include branding, customer service training, community and media relations, social media, newsletters, blogs, referral programs and frequent buyer incentives. These marketing efforts are investments in the promise of long-term sales.

Moreover, with such business, acquiring new customers can cost as much as five times more than retaining current customers. So, the financial payoff to investing in long-term client relationships becomes clear.

Marketing Orientation

Competitive Advantages (current)

{Your Organization Name} already has the needed technical expertise and resources to develop and deliver Vertical Applications and Supporting Systems.

Competitive Advantages (to be developed)

{Your Organization Name} experts need to do research to build a comprehensive understanding of the special needs of the insurance sector.

Organizational Analysis

• location of offices: USA

• Online presences: {Web Site}

• Key personalities:

• Last event: N/A

• Ownership: {Owner}

• Organizational structure: Matrix-based

• Products: Business process management and Intelligent data capture.

• Patents and licenses: N/A

• Quality control conformance: ISO 9000

Competitors Profiles - {Competitor 1}

• location of offices: USA

• Online presences: {Web Site}

• Key personalities: N/A

• Last event: N/A

• Ownership: N/A

• Organizational structure: Matrix-based

• Products: Business process management and Intelligent data capture.

• Patents and licenses: N/A

• Quality control conformance: CMMI

Competitors Profiles - {Competitor 2}

eClaim {Product1} {Product2}

Strengths

• Expertise already developed for similar products

• Located in the gulf

• Strong technical support teams.

• The product is very user friendly

Weaknesses

• Rapid change in market trends

• The product is flexible enough to be integrated with backend systems

• The product does not support all types of claims

Competitive Analysis 1/2

Competitive Analysis 2/2eClaim {Product1} {Product2}

Cost 2 2 2

Technology 3 3 3

Sales Force 3 2 3

Distribution 2 2 2

Pricing 4 3 2

Financial Strength 4 3 3

Promotion/Advertising

3 3 3

Location 4 1 1

Product/Service Quality

3 1 2

Total 28 20 21Scale:

4 = Best 3 = Good 2 = Fair 1 =Poor

Feature eClaim {Product1} {Product2}

User friendly

Notification Engine

Customized Workflow Module

BYOD

Built-in document scanning and data entry application

Features Comparison

87%

13%

{Competitor 1}{Competitor 2}

Current Market Shares

Year 1 Year 2 Year 3 Year 4 Year 50

10

20

30

40

50

60

70

80

90

100

{Your Organization Name}{Competitor 1}{Competitor 2}

Estimated Share

Product Development Plan

The action plan is detailed in a separate file.

Action Plan

Department/Function Level Head count

Management, administration & business development

Senior 2

Secretary 1

R&D & Implementation Senior 3

Junior 6

QA 3

Finance & Sales Senior 4

Junior 4

Marketing & Research Senior 2

Junior 2

Operations & Support Senior 1

Junior 2

Human Resources

Position Count Date

Senior Software developer (web)

1 1/1/2017

Junior Software developer (WCF)

2 1/3/2017

Financial controller 1 1/8/2017

Marketing Specialist (Media) 2 1/9/2016

Staffing Plan

The below table highlights the additional staffing requirements

Performance Area

Performance Measures

Target Time Frame

Financial Performance 

 Financial targets are met quarterly

Revenue of 120654

Year 2 

Revenue of 321654

Year 3

Revenue of 521054

Year 5

Customer and Market Performance 

 Continuous collaboration with the customers

Establish long-term relationship with the customersCustomer retention

Evaluated yearly 

Internal Efficiency and Effectiveness 

• Deadlines are respected

Max usage of the resources 

Evaluated yearly

Long Term Development and Innovation 

• On time delivery• Quality of

deliverables

Provide a complete a bug-free product that satisfies the customer needs

 6 months

Performance Objectives

Product Technical Specifications

•WCF•Web API•RPC•Web services•SOAP•Others

•CRM •ERP•Others

•PC• IPAD•Mobile•Others

•SQL server•Oracle•Others

Data Storage

Supported Devices

InteroperabilityIntegration

Solution Architecture

The product will be build using the following technical resources:

• Latest .NET framework

• C# language

• Latest SQL server for system data

• Fail-over Clustering

Technical Resources

Marketing Plan

The following pricing models are supported:

1. On-Premises model: Traditional perpetual licensed software deployed at customer's facilities.• Basic Setup: 123405 $

• Annual maintenance: 10000$

• Branch Setup: 5200$

2. Subscription SAAS model : Combines a software subscription model with cloud deployment. • Basic Setup: 4405 $

• Annual fees: 35055$

• Branch Setup: 1800$

3. Pay-as-you-go model : Customers pay for actual usage based on transactional metrics.• Basic Setup: 9405 $

• Branch Setup: 1800$

• Transaction rate: 0.2$ to 0.9$

Pricing Strategy

Sales/Financial Analysis

The product is projected to show profitability (breakeven) when any of the following deals is made:

1. 2.5 deals from On-Premises model

2. Or 6 deals from Subscription SAAS model (after 14 months)

3. Or 5.2 deals from Pay-as-you-go model (with 5410 transaction per month)

Financial/Business Cases

Pre-Launch Post-Launch

6 months Day 0 Year 1 Year 5

Revenue Forecast

0 $ 0 $ 92000 $ 2358700 $

Net Revenue 0 $ 0 $ 23050 $ 215400 $

Development Cost

0 $ 250250 $ 50000 $ 7121 $

Operations Cost 0 $ 22870 $ 19400 $ 18400 $

Marketing&Sales Cost

5000 $ 22620 $ 7200 $ 7620 $

Financial Projections

Year 1 Year 2 Year 3 Year 4 Year 5

Dubai 1 0 1 0 0

Kuwait 0 0 0 0 1

Egypt 0 0 0 0 2

Turkey 0 0 1 1 0

Tunisia 1 1 1 0 0

KSA 1 2 0 0 0

Sales Distribution (Deals)