Attractiveness of Venturing into Online Document Processing Business by Aditya Zutshi

2011 Report on Attractiveness of Venturing into Online Document Processing Business Submitted By: Aditya Zutshi (09BM8005) & Jatin Grover (09BM8022), Vinod Gupta School of Management, IIT Kharagpur For the course â&#x20AC;&#x153;e-Commerceâ&#x20AC;?, taken in MBA IV Semester

Table of Contents Prologue .................................................................................................................................................. 3 Online Document Processing Tools ........................................................................................................ 3 Advantages of Online Document Processing.......................................................................................... 4 Features Offered by Online Document Processing Tools ....................................................................... 5 Online Document Processing Tools in the Market ................................................................................. 6 Google Docs: ...................................................................................................................................... 6 Window’s Skydrive: ........................................................................................................................... 7 ThinkFree Office:................................................................................................................................ 7 Zoho: ................................................................................................................................................... 7 Etherpad: ............................................................................................................................................. 8 Features Missing in Online Document Processing Tools ....................................................................... 9 Business Models – Online Document Processing Tools......................................................................... 9 Advertisement Centric: ....................................................................................................................... 9 Storage Centric.................................................................................................................................... 9 Industry Analysis - Porter’s Five Force ................................................................................................ 10 Barriers to Entry................................................................................................................................ 10 Suppliers Bargaining Power ............................................................................................................. 10 Threat of Substitutes ......................................................................................................................... 11 Competitors ....................................................................................................................................... 11 Bargaining Power of the Buyers ....................................................................................................... 11 PEST Analysis ...................................................................................................................................... 11 Political ............................................................................................................................................. 11 Data Protection and Privacy .................................................................................................. 11 Security ................................................................................................................................. 12 Legal ..................................................................................................................................... 12 Economic .......................................................................................................................................... 12 Social ................................................................................................................................................ 12 Technological.................................................................................................................................... 12 CloDocs-Our Online Document Processing Tool ................................................................................. 13 Introduction ....................................................................................................................................... 13 Why Target Corporate Customers?................................................................................................... 13 What We Will Offer? ........................................................................................................................ 14 Why People Won’t Use Open Office Instead? ................................................................................. 14 Market Penetration Strategy ............................................................................................................. 14 Software Development...................................................................................................................... 15 Expected Financial Performance .......................................................................................................... 15 Our Recommendation for This Investment ........................................................................................... 16

Prologue Dr. Singh from IIT Kharagpur was in a fix. He was supposed to give a presentation infront of 100 delegates from various organizations during the Management Development Programme, which was scheduled to begin in half an hour. However, at the last minute, his laptop stopped working. However, he remembered that he had uploaded his presentation on the online document processing account. Now, he simply had to open his account and play the presentation. Online Document Processing helped Dr. Singh excape embarrassment! In the sections that follow, we will discuss what Online Document Processing Tools are and the attractiveness of investing in that business. Online Document Processing Tools An online office suite or online productivity suite is a type of office suite offered by websites in the form of software as a service. They can be accessed online from any Internet-enabled device running any operating system. This allows people to work together worldwide and at any time, thereby leading to international web-based collaboration and virtual teamwork. Usually, the basic versions are offered for free and for more advanced versions one is required to pay a nominal subscription fee. Applications are often developed on the Web 2.0 paradigms with leverage on the existing developer community. Players come from both the commercial software market and from the open source, free software communities. An Online Document Processing Tool is primarily an easy-to-use online word processor, spreadsheet and presentation editor that enables a user to create, store and share instantly and securely, and collaborate online in real time. A user can create new documents from scratch or upload existing documents, spreadsheets and presentations and share with others. There's no software to download, and all the work is stored safely online and can be accessed from any computer. All that is required is a browser and an internet connection.

Advantages of Online Document Processing An Online Document Processing Tool helps a user migrate from the desktop to 'the cloud' seamlessly. A user can create, edit, save, search and download documents from anywhere and make desktop as sparse as possible, both in data and software. A user can take the cloud with him wherever he goes. Every change a user makes in the online document is saved to the cloud. Even when the internet connection is lost, some features are sacrificed, but a user can still access documents. Everything is done through the web browser. A user doesn't have to remember to save his documents locally before packing his laptop for a trip. These tools have sharing features which enable users to decide exactly who can access and edit documents. This also aids todayâ&#x20AC;&#x2122;s workplace with geographically distributed teams. These tools have an advantage of not needing to save the work regularly. Automatic version control is yet another feature that comes along. The use of these tools also removes the need of buying office suites like Microsoft Office. This in turn saves money and helps reduce piracy. The online document processing tools today offer the state-of-the-art features, compatible to low end computers, which canâ&#x20AC;&#x2122;t run packages like Office 2010. Thus these tools offer a chance to lower and lower-middle segment of the population to use the latest features without making any investment on the hardware. Such tools also offer the convenience of accessing the data from anywhere and at anytime. The documents stored on these tools are not only secured against loss or accidental deletion but also have the feature of customizable permission for shared users which allow only authorized users to access or edit the document. Therefore, such a tool can effectively be used in todayâ&#x20AC;&#x2122;s global workplace with high dependence on globally distributed workforce. Online Document Processing Tools have the feature of AutoBack Up in which the documents are stored on the secured server as the user seamlessly works on the tool. Moreover, regular back-ups are taken to further guarantee the security. These tools offer the facility of Collaborative Editing. This feature can be effectively used in case of a globally distributed team to work with your team members from different geographical location on a document. Moreover for working in such a team, the feature of Automatic Version Control becomes very crucial. Many a times, locating a document previously stored becomes difficult. An online document processing tool offers the feature to search for documents using short and easy keywords. Managers at a senior level are often noted to use multiple machines for office and personal use. Use of an online document processing tool helps maintain compatibility across different operating systems.

Features Offered by Online Document Processing Tools  Create, format documents online with a powerful editor  Access, edit, and share (by email address) documents online from anywhere with whomever you choose  Periodic auto-saving of your documents to prevent data loss  Export documents to your desktop in different formats  Import documents in different formats.  Post your documents to your blogs (Blogger, LiveJournal, Typepad, WordPress) directly  View, edit and save documents available on the web directly (no need to download documents to your desktop & then open them using desktop-based software)  View your documents revision history, compare versions and revert to any version of your choice  Publish your documents online for public view  Tag your documents for easy access  Lock your documents while working in shared mode

Online Document Processing Tools in the Market

Google Docs: Google Docs is a free, Web-based word processor, spreadsheet, presentation, form, and data storage service offered by Google. It allows users to create and edit documents online while collaborating in real-time with other users. Google Docs combines the features of Writely and Spreadsheets with a presentation program incorporating technology designed by Tonic Systems. Data storage of any files up to 1GB each in size was introduced on January 13, 2010. Google Docs is Google's "software as a service" version of an office suite. Documents, spreadsheets, forms and presentations can be created within the application itself, imported through the web interface, or sent via email. They can also be saved to the user's computer in a variety of formats (ODF, HTML, PDF, RTF, Text, and Microsoft Word). By default, they are saved to the Google servers. Opened documents are automatically saved to prevent data loss, and a revision history is automatically kept. Documents can be tagged and archived for organizational purposes. The service is officially supported on recent versions of the Firefox, Internet Explorer, Safari and Chrome browsers running on Microsoft Windows, Apple OS X, and Linux operating systems. There is a limit on how much a user can store on their account. Individual documents may not exceed 1GB as of 13 January 2010, embedded images must not exceed 2MB each, and spreadsheets are limited to 256 columns, 200,000 cells, and 99 sheets. In September 2009, an equation editor was added which allows rendering in LaTeX format. However, Google Docs lacks an equation numbering feature. Google Docs serves as a collaborative tool for editing amongst users and non-users in real time. Documents can be shared, opened, and edited by multiple users at the same time. In the case of spreadsheets, users can be notified of changes to any specified regions via e-mail. The application supports two ISO standard document formats: OpenDocument (for both opening and exporting) and Office Open XML (for opening only). It also includes support for proprietary formats such as .doc and .xls. Google Docs is one of many cloud computing document-sharing services. The majority of document-sharing services require user fees, whereas Google Docs is free. Its popularity amongst businesses is growing due to enhanced sharing features and accessibility. In addition, Google Docs has enjoyed a rapid rise in popularity among students and educational institutions. Google Docs also incorporates the ability to write code within documents in a similar way to VBA in Microsoft Office. Code can be written in two scripting languages, Java or Python, and either activated by user input or by a trigger in response to an event. Beginning in April 2008, Google Docs permitted offline access to and editing of documents via Google Gears. However, in May 2010 this feature was temporarily removed. On December 7, 2010, in connection with the launch of the Chrome Web Store, the Google Docs Blog announced that offline access would be returning in early 2011 with the use of HTML5. Mobile Google Docs allows mobile phone users to browse their Google Docs documents in a mobile browser. Users can view and edit documents and spreadsheets. Neither presentations nor PDF files can be viewed, although websites other than Google can be used for this purpose. Versions of Google Docs for the iPhone and Android include functionality for editing spreadsheets and viewing presentations, along with an interface designed specifically for the device. However, open format database files cannot be viewed

or edited. In the latest version of google docs, mobile users are now able to create and edit google Docs formated documents and spreadsheets. Windowâ&#x20AC;&#x2122;s Skydrive: Windows Live SkyDrive (initially Windows Live Folders) is part of Microsoft's Windows Live range of online services. SkyDrive is a File hosting service that allows users to upload files to cloud storage and then access them from a web browser. It uses Windows Live ID to control access to the user's files, allowing them to keep the files private, share with contacts, or make the files public. Publicly-shared files do not require a Windows Live ID to access. The service offers 25GB of free personal storage, with individual files limited to 50 MB. A Silverlight-based tool can be installed to allow drag-and-drop uploading from Windows Explorer. Up to five files can be uploaded each time if the tool has not been installed. Windows Live Office is part of SkyDrive that allows users to upload, create, edit, and share Microsoft Office documents directly within a web browser using Office Web Apps. It includes light-weight versions of Microsoft Word, Excel, PowerPoint, and OneNote, and provides functionalities for users to collaborate on the documents stored on SkyDrive. ThinkFree Office: ThinkFree Office by Haansoft ThinkFree Co. Ltd., a subsidiary company of Haansoft Corporation, is an office suite written in Java that runs on Windows, Linux, Macintosh and Android platforms. ThinkFree Office includes a word processor (Write), a spreadsheet (Calc), a presentation program (Show), and a WYSIWYG HTML and blog editor (Note). ThinkFree Office reads and writes to Microsoft Office file formats (.doc, .xls, and .ppt). ThinkFree Office has a look and feel similar to the prevalent Microsoft Word, Excel and PowerPoint, providing a degree of familiarity to users of those applications. ThinkFree Online is a webbased edition that runs Write, Calc, Show and Note in a browser using a mix of Java applet and Ajax technologies. It is free to use for a 30 day trial period, except for users in Australia and New Zealand, where only paid members of BigPond may use the service. A way around this is to click on the already have account button at the start page and then click sign up. Each user is allotted 1 GB of online storage space for saving documents. ThinkFree Online lets users collaborate on documents with others, publish to a blog or the web. ThinkFree Online also keeps a version history per document of the changes that are made. The Java applet version, or Power Edit mode, exists for all three applications, and appears to be an applet port of the original desktop versions written in Java. Ajax-based Quick Edit mode (offered for Write and Show only) can run without the need of starting up an applet. Also, ThinkFree Online supports a synchronization manager utility to keep documents on the desktop, online and mobile workspaces automatically updated. Zoho: The Zoho Office Suite is a Web- based online office suite containing word processing, spreadsheets, presentations, databases, note-taking, wikis, CRM, project management, invoicing and other applications developed by ZOHO Corporation (formally AdventNet Inc.), a US-based company. It was launched in 2005 with a web-based word processor. Additional products, such as spreadsheets and presentations, were incorporated later into Zoho. Zoho applications are an example of Software-As-A-Service (SaaS) or Cloud Computing

applications, whereby software utilities are hosted on remote servers rather than on personal computers. The user accesses the utilities via a web browser. Zoho applications are free to use at the entry-level and require a fee for more extensive or professional use. Etherpad: EtherPad is a web-based collaborative real-time editor, allowing authors to simultaneously edit a text document, and see all of the participants' edits in real-time, with the ability to display each author's text in their own color. There is also a chat box in the sidebar to allow meta communication. First launched in November 2008, the software was acquired by Google in December 2009 and released as open source later that month. Several servers now use the EtherPad software. Further development is coordinated by the EtherPad Foundation. Anyone can create a new collaborative document, known as a "pad". Each pad has its own URL, and anyone who knows this URL can edit the pad and participate in the associated chats. Password-protected pads are also possible. Each participant is identified by a color and a name. The software auto-saves the document at regular, short intervals, but participants can permanently save specific versions (checkpoints) at any time. A "time slider" feature allows anyone to explore the history of the pad. The document can be downloaded in plain text, HTML, Microsoft Word, or PDF format. Automated markup of JavaScript code was made available shortly after the launch. EtherPad itself is implemented in JavaScript, on top of the AppJet platform, with the real-time functionality achieved through Comet streaming. At the time of its launch, EtherPad was the first web application of its kind to achieve true real-time performance, a feat previously only achieved by desktop applications such as SubEthaEdit (for Mac), Gobby, or MoonEdit (both cross-platform). Existing collaborative web editors at the time could only achieve near-real-time performance.

Features Missing in Online Document Processing Tools  Service Level Agreements: None of the freely available tools offer Service Level Agreements (SLA). You use it as it is and you are responsible for all the data loss or drop connections yourself.  Application Compatibility: To use desktop version of the Office Applications and Web Application interface at the same time, you need to consider application compatibility. Some applications like SkyDrive only support Office Web Apps and don’t work with Office 2003, OpenOffice and etc.  Desktop Integration: None of the applications provide native desktop integration. Instead, they rely on 3rd party desktop tools that sync and backup. A native desktop integration with features like Drive mapping – map a network drive to the online storage, Auto sync – sync local documents to online storage and back again automatically every 15 minutes is what lacks in these applications. Business Models – Online Document Processing Tools

Advertisement Centric: 1. SkyDrive is AD centric. When you log into SkyDrive, you can see big banners on every page. 2. They offer huge storage at no cost. SkyDrive offers 25 GB free storage. Storage Centric 1. Google Docs isn’t AD centric. It does not show advertisements. 2. Google Docs offers much less free space with paid storage upgrade. Selling storage is part of the Google Docs’ business model

Industry Analysis - Porterâ&#x20AC;&#x2122;s Five Force

Barriers to Entry In this section, we will discuss how lucrative the industry is in terms of the barriers to entry for other players in the market. If the barriers to entry are low, a lot of competition can be expected to develop in time, as the product category gradually diffuses. The business of Online Document Processing Tools has a high barrier to entry. This means it is not easy for a company to venture into this business line. This business requires a lot of time to design the artitecture of the product, and introducing the product with a unique positioning that captures well the untapped needs of the consumers. The requirement of high functional, technical and consumer knowledge makes this business line a tough venture. The economies of scale are very relevant in this business. With the need of a significantly high investment for setting up the data centres and servers and the manpower, the number of customers who use the product become all the more important. Thus, the barriers to entry being high, this business line is lucrative on this dimension. Suppliers Bargaining Power Ads are a reliable source of income. As long as the company maintains its market dominance supplier bargaining power will remain low. For a company in this business, the need for suppliers is regularly for advertisements. The other requirement like hardware is not frequent. Taking the case of advertisements, they are critical to bear part of the costs incurred. If the product is popular among customers, there will be no problem in getting the advertisements and therefore the bargaining power of the supplier will be low. Hence on this dimension, the business line is lucrative.

Threat of Substitutes The major threat to this business is from substitute softwares like Microsoft Office. These are popular substitutes and are usually traditionally more acceptable. It is therefore imperative to position the service in such a way that the criteria that consumers use to evaluate both the substitutes get in favour of the Online Document Processing Business. Doing this, the thread of substitutes can be significantly reduced. Competitors There are a number of competitors today in the market in the Online Document Business. Most of them offer more or less similar features to the consumers. What is critical is to find the untapped need of the customers with such pre-existing softwares. Thus, on this dimension, the business is not very lucrative. But if properly handled, the effect of competitors can be significantly reduced. Bargaining Power of the Buyers Buyers are the consumers who pay for this dervice. Today, they have a wide choice of products. With the increase in piracy and also in free open source applications, the consumers are becoming more and more resistant to pay for the services. For the same reason, it is important that the offering is such that it offers very high opportunity cost for a consumer to not use it. PEST Analysis

When entire data processing is taken on internet then it has far reaching Political, Economical, Social and Technological consequences. Therefore, it becomes extremely important to examine these aspects closely before making a decision of entering into the sector of Productivity Tools. Political ď&#x201A;ˇ

Data Protection and Privacy- When data is taken on cloud then it is stored in different data centres located in different countries. Every country is governed with different laws as far as data protection is concerned which makes data protection highly tedious and complicated. Some of the examples are stated below: o o

USA- Consumer Internet Privacy Protection Act: ISP needs to get permission of the subscriber before disclosing his personal information to the third party. UK- Data Protection Act of 1984: Persons and Organizations which store personal data must register with the information commissioner. Personal data can be obtained for only one specified and lawful purpose. India- Section 72 of IT Act, 2000: It provides protection against breach of confidentiality and privacy of data.

China- Article 40 of China constitution: Police and other authorities can intercept communication when state secrets or criminal investigations are involved. But concept of state secret is highly expansive. In China privacy violation can only be considered if reputation of an individual is also violated or affected.

Globally some measures are being taken to resolve these issues like: o

o o

US-China Internet Industry Forum (USCIIF) of Microsoft & Internet society of China discussed importance of transparency and international cooperation in internet policy matters specific to cloud computing. US & EU are working on US-EU safe harbour. It is a streamlined process of US companies to comply with EU directives on protection of personal data. At IAPP Europe Data Protection Congress, President of Microsoft International has talked of “Privacy-by-design” where users can control information.

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Security- Due to centralization of data, security can be improved as it becomes easier to manage. E-Bay and ING founded Cloud Security Alliance to promote the use of best practises for providing security with cloud computing.

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Legal- Cloud computing and internet based productivity tools have resulted in reduction in privacy. US & China in USCIIF have agreed on exchanging enforcements of IPR and prosecution of cyber crime.

Economic  Upto 80% cost reduction can be achieved by using internet based productivity tools because of supply side economies of scale, demand side economies of scale and multi-tenancy which allows splitting the cost of managing applications across users.  Centralized hardware, infrastructure and maintenance requirement reduces costs.  Rise of SMEs in emerging markets have made productivity tools attractive. Social    

Demographics- Younger generation spending more time on web is a noteworthy demographic change making such tools attractive. Education and internet penetration is increasing at a very fast pace. Open source productivity tools give ample opportunities to aspiring young entrepreneurs. Viable option for environment conscious customers.

Technological  Productivity tools have an impact of value chain since sharing hardware among multiple tenants improves utilization and increases speed.  They also have an impact on product offerings because of reliability, scalability, security, cheaper maintenance, and device and location independence.  Rate of technology diffusion is very because everything is on web and cost effective.

CloDocs-Our Online Document Processing Tool Introduction The key to success in a new product/service development is to offer a unique value proposition, which taps the unsatisfied needs of the consumers. With the existence of a number of successful online document processing tools, our product would target the corporates specifically, which is a segment specifically for which no online document processing tool has been designed and offers a huge and a fast growing potential. Why Target Corporate Customers? The ITES-BPO industry has witnessed significant growth, driven by increased offshoring by firms in America and Europe. Within ITES service lines, customer care and finance have been the two fastest growing segments. Apart from these two, some other important segments in the outsourcing industry include human resources, payment services administration and content development. While presently customer care remains the largest service line, finance and administration services are expected to grow significantly over the next few years. The global ITES and BPO market is growing at around 9 per cent. India presently accounts for 28 per cent of IT and BPO talent among 28 low-cost countries in the world. India will need a 2.3 million IT and BPO workforce by 2010 to maintain its current market share. Such a large workforce in India is mostly using the traditional desktop document processing applications like Microsoft Office. This is because of the following reasons: 1. Service Level Agreements: None of the freely available tools offer Service Level Agreements (SLA). You use it as it is and you are responsible for all the data loss or drop connections yourself. Moreover, there is no agreement made by the product developers that the data uploaded will have a non-disclosure agreement. This is quite a risk for a corporate customer. 2. Application Compatibility: To use desktop version of the Office Applications and Web Application interface at the same time, you need to consider application compatibility. Some applications like SkyDrive only support Office Web Apps and don’t work with Office 2003, OpenOffice and etc. This becomes a roadblock for corporate customers at times. 3. Desktop Integration: None of the applications provide native desktop integration. Instead, they rely on 3rd party desktop tools that sync and backup. A native desktop integration with features like Drive mapping – map a network drive to the online storage, Auto sync – sync local documents to online storage and back again automatically every 15 minutes is what lacks in these applications.

What We Will Offer? We plan to offer a complete online document processing solution which would be primarily targetted to the corporates. The fast growing companies in India spend a huge amount on buying such softwares. For a company of the size of TCS, to set up Microsoft Office for each of its employees (considering total of 150000 employees) machine, it would cost approximately 375 Crore Indian Rupees! (Source: http://www.microsoft.com/licensing/mla/quickquote.aspx). Our Product will be totally customized to suit the needs of the corporate professionals. Our product would sign non-disclosure agreements with each company it signs a contract with and will have a service level contract to guarantee the promised service level. With our product, customized for the corporate customer, we will be able to bring down the cost incured to the company, very significantly. Why People Wonâ&#x20AC;&#x2122;t Use Open Office Instead? The drawbacks of OpenOffice affect its performance significantly. The main problem that frequent users face is the CPU time and memory usage. OpenOffice.org is much slower compared to Microsoft Office and occupies more memory. OpenOffice.org also has limited fonts. Though it works across multiple platforms, the necessary fonts need to be installed in the system. The support for this software is also through the informal user and developer community. This makes it unreliable when you compare it to a paid application. For these reasons, OpenOffice, despite being open source software isnâ&#x20AC;&#x2122;t being used by companies.

Market Penetration Strategy We will target the IT/ITES Companies to begin with. The IT Companies use the document processing softwares most regularly. Moreover, the IT Companies are more liberal to using new technologies and experiment and success of our product in this industry would become a good case study for other industries. To begin with, we will pursue the following IT Companies to sign a contract for setting up the online document processing system for them: eTime Media & Technologies Tata Consultancy Services Tech Mahindra Oracle Financial Services Larsen & Toubro Infotech

Infrasoft Technologies Wipro Technologies Mastek Lionbridge Hexaware Technologies

3i Infotech Ltd olta India td Accenture Patni

Fidelity International Eclerx Intec Microsoft

Wipro Infotech

Mahindra Satyam

India has approximately 25 Lakh people working in the IT/ITES Industry. Approximately 70,000 people join the Indian IT Industry every year. This means that every year, about 70,000 new machines are purchased and there is a requirement of the same number of document processing softwares (Ignoring attrition in the company). This indicates that not only is the market size huge but it is growing very fast. Our company would aim at signing contract with the above companies.

Software Development We will employ our team of experience software engineers who would be co-located. We will follow the Agile Software Development Concept for developing this productivity tool. Agile software development is a group of software development methodologies based on iterative and incremental development, where requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. This will be in accordance with the following principles: 1. Customer satisfaction by rapid delivery of useful software 2. Welcome changing requirements, even late in development 3. Working software is delivered frequently 4. Working software is the principal measure of progress 5. Sustainable development, able to maintain a constant pace 6. Close, daily co-operation between business people and developers 7. Face-to-face conversation is the best form of communication (co-location) 8. Projects are built around motivated individuals, who should be trusted 9. Continuous attention to technical excellence and good design 10. Simplicity 11. Self-organizing teams 12. Regular adaptation to changing circumstances Agile development has been widely documented as working well for small (<10 developers) co-located teams. Risk analysis will also be used to choose between adaptive (agile or valuedriven) and predictive (plan-driven) methods. It has been found that Agile software development projects have a 71.5% success rate whereas traditional projects have 62.8% success rate, and offshored software development projects have 42.7% success rate. (Source: http://www.ambysoft.com/surveys/success2007.html) Expected Financial Performance As against approximately Rs. 25,000 per Microsoft Office Licence, we will price our tool at Rs. 250 per user per Month. For a year, the company will have to pay Rs. 3000 per employee for using the services. This means that if Microsoft Office was being billed per year, life of Microsoft Office would be 25000/3000=8 years. However, Microsoft usually launches a new version of Office every 3 years. Therefore, our tool will bring down the cost for our clients and would motivate them to try our product. Our pricing is very affordable, considering the prevailing rates of other productivity tools. (Source:http://www.practicalecommerce.com/articles/2605-39-Online-Productivity-Tools-toGo-Officeless). Assuming that in the first year, we will be able to sign a contract with 2 companies with 10,000 employees each, we will generate a revenue of 3000*2*10000 = Rs. 6 Crore. This will cover all our development and running costs. We expect to break even within a year. The retained earnings will be used for development and marketing expense for the next year.

Our Recommendation for This Investment On analysing the industry on different dimensions, we come to the conclusion that overall, the industry is lucrative and investing in the Online Document Processing Business will be profitable and sustainable. We recommend investing in this business.