DOCUMENTUMGroup 3

Jahid | Kamaljeet | Kunal | Mohan | Shrikant Pathak

RELEVANT FACTS

Documentum – a startup providing document management software (Unstructured Data)

Xerox has 80% equity stake in exchange for technology, office space and $ 4 mn commitment

First opportunity came from Boeing for its aircraft training manual project through its partner Frame Technology (which provided publishing s/w to Boeing)

Syntex, a pharmaceutical vendor became its second customer to reduce NDA time

Oracle – already a market leader by following horizontal strategy in IT

PROBLEM DEFINITION

How to take the technology product to mainstream market

Financial projections showing lack of profitability at its current rate of customer acquisition

Firm lacking direction as to how to enter the marketplace (horizontal strategy / vertical strategy)

ALTERNATIVES (1)

Market the technology verticallyPositives

Leverage available resources more effectively High focus on a particular segment Less risky and cost-effective

Negatives- Lack of clarity on which vertical application to

target- Competitors may exploit the unexplored markets- Lack of support from VCs

ALTERNATIVES (2)

Take the horizontal strategy as proposed by VCs

Positives- Big payoffs due to the big market opportunity- Disable competitors from entering the market- Expand customer base

Negatives High risk involved Non-availability of resources and capabilities No focus on a particular segment

MOORE’S METHOD OF MARKET SELECTION

Allows everyone to be a part of the growth story

Selects the market based on three critical success factors Economic Buyer Compelling reason to buy Whole product

Takes into account important criteria for rating the application

Does not let the individual guts to take over the decision making

SHOULD DOCUMENTUM ACCEPT M&M

Insurance sector scores the lowest among the five sectors based on Moore’s method

Scores the lowest in Partners & Allies, a critical factor that played a major role in Boeing and Syntex

There is already a competition in this segment and it is also not fit with the current company positioning

But insurance is a big market and they can capture the market through customer references

By providing solution to multiple sectors, they can leverage to multiple sectors and they can form a whole product to address the mainstream market