1221 Delmart Road, Santacruz West, Mumbai 400025, India
Business Plan
percept c o n s u l t a n c y
Arjun Vora 1221 S State Street, Ann Arbor, MI 48104 Phone: 1 734 546 1782 email: arjunmv@umich.edu
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TABLE OF CONTENTS Executive Summary.........................................................................................................................................4 The Idea...........................................................................................................................................................5 Why is the time right for Percept Consultancy!...............................................................................................6 Investment Needs............................................................................................................................................9 Services and Processes..................................................................................................................................10 Types of Services............................................................................................................................................10 Ideology and Processes..................................................................................................................................13 Market Strategy.............................................................................................................................................14 Organizational Structure................................................................................................................................16 Company Hierarchy........................................................................................................................................17 Key Personnel................................................................................................................................................17 Critical Risks – and our Contingency Strategies...........................................................................................19 Operational Risks...........................................................................................................................................19 Organizational Risks.......................................................................................................................................19 Future Prospects...........................................................................................................................................20 Financial Indicators.......................................................................................................................................21 Appendix.......................................................................................................................................................22
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EXECUTIVE SUMMARY Design Consulting that concentrates on providing user experience research, interaction design, graphic design and design management skills is a relatively new industry in the Indian Market. Today's market is inundated with products but new age customers are not just looking for tools to complete their tasks. Instead they are looking for simple, thoughtful digital products that will add value and joy to their quality of life rather than take away from it. That’s one of the reasons for the shift from Profit Centered Business process to the User Centered Design process in the market. Currently biggest challenge in the IT Market is to develop solutions that use technology to meet user needs and improve user experience. India is a leader in software development services and the number of students that graduate from colleges in India every year is bigger than the population of France. In spite of the wealth of human resources and technical infrastructure in India, the software industry lacks a strong global impact and is in need of high quality design, strategic and business consulting to drive their industry to produce innovative solutions with a strong local and global impact. Percept Consultancy’s goal is to deliver local companies and foreign companies investing in India with appropriate, actionable, and tangible design strategies to help them develop new and innovative avenues for growth, grounded in business viability and market desirability. Percept Consultancy’s advantage over its competitors is that it works closely with clients to provide high level design solutions that integrate market research data with the company goals. We estimate profits of approximately INR 6,500,000 by the end of year 1. The company plans on taking an approximately INR 5,000,000 loan and raising an additional INR 5,000,000 in loan to invest in long-term assets. The company does not anticipate any cash flow problems arising and is expected to make profits of approximately INR 20,000,000 by the end of year 5.
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percept c o n s u l t a n c y
THE
IDEA
Thinking like a Designer and following a User-Centered approach can transform an organization’s products, services, processes and strategies and enable them to innovate, grow and build their businesses. This approach, which Percept Consultancy calls Design Analysis brings together the intuitive, user centered, creative approach and the rational, strategic, statistical approach to form an integrated process to create innovative and efficeint solutions for our clients.
The Design Analysis approach aims at combining our expertise in Strategic and Business Analytics, Design Thinking and Innovation, and Technological Advancements. We aim to tap into the rapidly growing Software Organizations in India, and the Global Multinationals investing in India, by providing them design soltutions customized and personalized for the Indian Market.
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WHY THE TIME IS RIGHT FOR PERCEPT CONSULTANCY !
Percept Consulting is in a very lucrative market in a rapidly growing economy. The current trend in the Indian Software market towards an increase in investments of global organizations, rapid increase in local entrepreneurs, and competition amongst existing companies, presents the need for an increased demand for services and products that are customized to the Indian Market and which will enable companies to stay ahead of the pack. Rapid Growth The service sector in India has been growing at a fast pace and now contributes more than 50% to the GDP of the country (study by the Associated Chambers of Commerce and Industry in India). Propelled by the increasing demand for consultancy services, both domestic and foreign firms, specialist consulting experts are required who can provide their core skill and competence in designing software solutions that meet the target market’s requirements and add value to the user. The initial stage of our venture will target the budding software organizations in Bangalore, Mumbai and Delhi. Shortage of Specialized People With the excess staff being cut down, most budding software firms lack the specialized strategic designing resources and the local market research analysis to handle the benumbing rate of technological and market change in India. Hence Percept Consultancy seeks to use its specialized knowledge base, professional competence and its extensive familiarity with the local market to meet the demands of the software clients. We interviewed top software executives in six emerging software metropolitan cities in India, and software executives at organizations in two of
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percept c o n s u l t a n c y the primary cities that invest in India. Our analysis showed that biggest requirements of these organizations are the deep insights into the cultures and needs of the local users, a thorough understanding of the competitors and finally customized design solutions that tap the growing trends in the Indian Market. Our services will offer clients high quality, timely and customized design solutions that our tailored to their target audience, in turn leading towards their growth, benefiting the overall economy.
Survey Results - Software Organization Needs from a Design Consultancy Firm in India 10 9 8 7 6 5 4 3 2 1 0
Mumbai
Delhi
User Culture
Banglore Market Needs
Chennai
Pune
Competitors Info.
New York
London
Growing Trends
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One Stop for all Solutions In its early stages, Percept Consultancy may not be able to compete in size, but we will still offer the client a one-stop shopping platform by outsourcing a part of the client’s project to another firm (we aim to acquire a software development firm in during our fourth fiscal year), while maintaining responsibility of the overall project. We aim to create a win-win agreement with companies we acquire which will help us drive the wheels of our expansion and dominance as a design consultancy that provides complete solutions to their clients.
HOW DOES PERCEPT CONSULTANCY STAND OUT FROM THE COMPETITION? With the rapid proliferation of software organizations in India, arises the need for strategic, design and business consultancy firms to guide and direct the operations of the software organization. However, instead of using a User Centered Approach to add value and joy to the end users of the products and services developed, most consultancy firms use the Profit Driven approach to guide their clients. User Experience Design and Human Computer Interaction, though widespread in the West, is a relatively new and emerging area in the Indian IT Industry. This has led to the inception of a few Design Consultancy firms to Clients and Percept Design stands out from the rest of the Competition. We Provide our clients with complete solutions and greater specialization The founding committee of Percept Consulting consists of individuals having immense and diverse educational and professional experience. We seek to provide our clients with complete solutions to their problems. Operating from this perspective, Percept Consultancy would conduct market research and target user study, use a mix of analytical tools and generative techniques to
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percept c o n s u l t a n c y help clients see how their new or existing operations can look in the future, build road maps for getting there, develop hi fidelity working prototypes and implement the software products using services from our partners. Excellent Collaborative Model and High Level of Transparency to Client Clients want to know what the consultants are doing and in order to overcome the effects of the reputation commons problem for consulting Percept Consultancy uses a extremely collaborative agile process with the clients and provides them with a summary of the Return on Investments of their previous projects (maintaining client confidentiality). All of Percept Consultancy’s work would be done in consideration of the capabilities of our clients and the needs of their customers. As we iterate toward a final solution, we seek to assess and reassess our designs. We further plan to use a Consultant’s Scorecard - a systematic way to develop a balanced perspective on the success of the consulting projects undertaken by Percept Consulting (Reference). In order to evaluate and recognize how Percept Consultancy stands out from the rest of the market, clients can use this Scorecard to see the monetary payoff, intangibles such as client and customer satisfaction, and the success of a previous project to examine the cost versus the benefits.
INVERSTMENT NEEDS The members of the Founding Committee would invest INR 15,000,000 and the company would take an unsecured loan from GSAM Industries of INR 5,000,000.
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percept c o n s u l t a n c y Investment and Percentage Share 3,000,000 16%
5,000,000 26%
3,000,000 16%
2,400,000 13%
5,600,000 29%
Arjun Vora
Tom Wilson
Divye Bokdia
Harsh Bhutta
GSAM Industries
SERVICES OFFERED Our services will be uniquely and precisely positioned to offer client’s a tailored, high quality timely and accurate design solution that will be customized to the target markets’ needs.
CULTURAL INNOVATION When Divye, Tom and I interviewed executives in software development firms in India and abroad, nearly all of them ranked the importance of Cultural Knowledge about the target market as one the most important factors in developing successful solutions in India. This, they believed was inside information which was difficult for them to get hold of, and were always looking for methods to tap into this valuable information while developing solutions.
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percept c o n s u l t a n c y We would use localized research methods and provide the target users’ behavioral patterns, lifestyle and product needs. We would present an objective and detailed data analysis of the cultural model that guarantees the validity and practicality of innovative concepts. We possess a professional designer team that brings enterprises the competitive edge by combining user experience study and innovative concepts to design solutions customized to the market. We aim to spend considerable time in the field, living and working with the target users to ensure that all concepts and solutions are practical, scalable, culturally appropriate, and sustainable.
TARGET MARKET RESEARCH This area of service is anticipated to be extremely helpful for foreign clients developing solutions for the Indian Market. We will use varied research and auditing techniques to uncover and understand the needs of the market and the current market status. On the basis of this research and analysis, we would guide the clients with a recommended strategy for their product’s development.
Our methods include business model prototyping and data visualization, allowing the clients a comprehensive snapshot, growth and trends of their target market
The qualitative research would use survey design and implementation, to provide clients with a thorough analysis backed in depth user study for a qualitative study of user needs.
We would use the analysis from the target market research to develop an innovation strategy, process and concept design to guide the clients to develop their solution.
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percept c o n s u l t a n c y INTERACTION DESIGN We will employ our Design Analysis and user-centered design techniques to design solutions that are intuitively structured and highly usable. With individuals in our team, extremely strong in graphics design skills, we will also uniquely combine these techniques with cutting edge visual design to powerfully connect the client’s brand with its target users.
By focusing on an iterative design processes rather than linear practices, we can shed light on new options and explore the various alternatives during our early stages of product design.
We will work iteratively with the client to develop the interface design and the look-and-feel of the product to ensure that the product is not only in sync with the client’s vision but one that succeeds in meeting specified business and marketing objectives.
USABALITY EVALUATION Since the products and services offered by an organization are constantly evolving, we intend to offer a range of evaluation and testing techniques to help the client stay competitive and compelling in their marketplace. Our team would provide services to evaluate the clients’ product and services based on the market requirements, user needs, heuristics and competitor research. We would stand out from our competitors by following an approach that involves performing not only Usability Testing and Expert Reviews, but a whole set of evaluation system specialized for the client’s operation. Since both Divye Bokdia and Tom Wilson have more than eight years of global experience in the Usability field, we possess the competency to provide world class usability services.
Percept Consultancy would help clients find the concept design and usability problems in their products and services through the scientific research and evaluation.
Provide customized user experience evaluation solutions to meet an enterprise’s actual needs
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Integrate evaluation findings with corresponding solutions into an enterprise’s working process and methods.
IDEOLOGY AND PROCESS
The Design Thinking approach that we seek to follow is best thought of as a system of overlapping spaces rather than a sequence of orderly steps. The three spaces are – discover, design and develop.
Discovering is thinking about the problem or opportunity that motivates the search for solutions. We identify new and innovative ways to support the users by uncovering latent needs, behaviors, and desires. During this process our team would generate, develop, and test our ideas.
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percept c o n s u l t a n c y Once we envision new concepts, features and brands, and have agreed on the strategic roadmap for the project we would design the products, services, and interactive experiences that bring them our design concepts to life. We would use a combination of creative expertise, technical innovation and sound user-centered design principles to design solutions driven by innovation. Eventually, we develop our design solutions based on the client requirements. We do this using high-fidelity prototyping techniques. We aim to acquire a software development firm at the end of our third fiscal year to develop and deploy software solutions that have been designed using our Design Analysis Process and thus we ensure we have the users' best interests at heart. This is the final path that leads from the project stage into people’s lives.
MARKET STRATEGY
Since the organizational application of Design Consultancy is still in its inception in India, our marketing strategy will be based mainly on ensuring that our prospective clients know what needs the services are able to fulfill - making the right information available to the right target client. Though consulting firms in India have a significantly lower cost structure and high adaptability, they are hindered by low quality assurance, lack of market intelligence and low level of research and development. We, thus intend to implement a market penetration strategy that will ensure that we are well known and respected in our respective industry. Our transparency and demonstrated success using the Consultant’s Scorecard will not only help convince clients once they approach us but also tap in clients by word of mouth publicity. To meet with the current market competition, we will ensure that our services' prices during the initial years of our launch are flexible and take into consideration our clients’ budgets. To further
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percept c o n s u l t a n c y emphasize on how quality of services sets us apart from the rest of the competition, the marketing will convey the sense of quality in every picture, promotion, and publication.
BOOSTING THE CLIENTS’ CONFIDENCE As our Market Research informs that organizations is India are still uncertain about the benefits of Design Consulting and since people are fickle and are frequently hesitant to invest in a service they know little about, we would create a marketing campaign that emphasizes the value and quality of our services. The resulting boost in client confidence will likely translate into more projects and an increase in cash flow. CREATE AWARENESS Our Marketing Strategy would aim at a campaign designed to promote our services in as many ways as possible. We would create events, participate in industry specific workshops, and create a buzz by blanketing the local airwaves by focusing on strategies aimed targeted towards our prospective clients. Hosting an event such as a Usability Workshop or Design Competitions would provide a great way to gain face time with key clients and prospects as well as help us in getting our company name circulating. BIENG TRANSPARENT AND TELLING OUR COMPANY STORY Our Market Research revealed the Reputation Commons Problem, due to which most design consultancy firms in India are considered to provide low quality of services. Since this is a common problem it is difficult for one firm to change the clients’ perspectives. Hence we believe that it is important to connect with our clients emotionally which gives us the best way to get noticed in the market. Our company website would present work samples and case studies and details of how our organization culture, process and solutions met client needs. We would
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percept c o n s u l t a n c y publish tips, and share our expertise through public speaking in seminars and conferences to let our clients know that we are experts in this field and use that to boost our credibility and value.
JOINING STRATEGIC FORCES WITH OTHER BUSINESS To gain a more global reach and tap into markets where our company has relatively lower presence, we plan to join forces and finances with other businesses geared towards that target market. This would be a win-win agreement where Percept Consultancy would offer the partnering firm services in its area of expertise and use their competence in unknown markets as a strategic advantage to make relations with new clients. Further, partnering with complementary businesses and putting together promotion, offers and even stalls at global events such as the Usability Professionals Association would afford better prizing, bigger ad space, and wider market reach through a joint effort.
ORGANIZATIONAL STRUCTURE
Our technical team has on average more than 5 years of experience on the field. Most of them have their roots in Indian local culture, and they have a grasp of the most advanced design consulting methods and tools. They have abundant international project experience, as well as a thorough understanding of Indian corporate cultures. They have a solid academic background, and keep themselves updated in the practice and are constantly exploring better methods for our clients. COMPANY HIERARCHY
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percept c o n s u l t a n c y Our company does not have a strict top down hierarchy and projects are handled in on a team basis- each team headed by the Project Manager. Each member of Lead Researcher/Interaction Designers is made Project Managers in a round robin sequence – allowing constant learning and evolution of company employees. The Project Manager reports to the User Experience Director. The teams are made up diverse individuals having varied expertise – User Experience Researcher, Interaction Designers and Graphical User Interface Specialists. The Business Development Director handles the business relations while the Administrative Director works with the HR team to manage the Organization’s administrative issues. The following is a company organizational structure: General Manager Business Development Director
UX Director
Administrative Director
Project
Project
Manager
Manager
User Experience Researcher
User Experience Researcher
Technical Support Manager
Interaction Designer
Interaction Designer
Recruiting Manager
GUI Specialist
GUI Specialist
HR Specialist
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percept c o n s u l t a n c y KEY PERSONNEL General Director: Arjun Vora Founder, Percept Consultancy – Responsible for Management and oversee of Company Operations, Developing Business Relationships, and Directing the Marketing Budget He has worked at Aero Global Consulting as the Chief Technology Officer for 3 years. He is currently the president of UPA, India. He is currently pursuing his Masters in Human Computer Interaction at the University of Michigan of Michigan and works full time at Visteon Corporation as the Head of the Human Machine Interaction Department.
User eXperience Director: Divye Bokdia Founder, Percept Consultancy – Responsible for overlooking the projects, mentoring the Project Managers, developing patents and research material, interacting with clients to gather project requirements, and presenting final design solutions to client. He has had eight years of professional experience and his research interests include using intelligent systems to personalize user experience. He is currently pursuing his Masters in Human Computer Interaction and Social Computing at the University of Michigan of Michigan and works full time as a Usability Director at Tipping Point Partners LLC.
Business Development Director: Tom Wilson
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percept c o n s u l t a n c y Founder, Percept Consultancy – Responsible for initiating client contact, negotiating client services, conducting and attending seminars, workshops and conferences to bring in domestic and global projects He has held the position of the Chief Consultant to Embark Design Consultancy, United Kingdom and is a Founder of the Business Development Program at Oxford University. He has done his undergraduate in Information Technology and completed his MBA in Harvard University. Administrative Director: Selina Cornelio Responsible for managing the administrative issues, develops and maintains the company budget, advices and manages recruiting, conducts company conferences and annual meetings Has worked for more than 6 years as a business development and marketing head in the training and user experience industry She has completed her Graduate in Commerce and Arts from St Xavier’s College in Mumbai and is currently doing an e-MBA from the London Business School.
CRITICAL RISKS - AND OUR CONTINGENCY STRATEGIES Though we have developed a detailed strategic and financial plan for the first 5 years of Percept Consultancy, what if things don’t work out as planned? As with any new business there are certain risks we need to recognize. We have developed contingency plans for some problems that may arise if things do deviate from our intended course. OPERATIONAL RISKS
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We are not able to acquire/partner with a Software Development Firm within the first four years
Our Usability Labs are not developed with the required and planned time frame
If the capital is slow, the founding team will invest money with loans from our banks and/or our family. We will cut down on expenses by reducing the salaries of the founding team by up to 40%. Even in the case we do not acquire the services of a Software Development Firm, we will continue our promise to our clients by outsourcing our development projects to another firm. Our financial projections enable us to purchase another office space during the second fiscal year since our launch. However, if the Usability Labs are not developed due to financial to other reasons, we will utilize the facilities of a partnering firm and conduct our Usability Tests in their Labs. ORGANIZATIONAL RISKS
Any of the Founding Members resigns
Human Resources issues such as employees quit the firm before project completion
Employees slack at work due to demands for hike in salary
The Founding Members are required to inform the Founding Committee atleast 8 weeks before resignation. Further, a Founding member cannot receive any return on Investment until the Company breaks even. Employees are provided with voluntary Stress Control sessions, free Yoga coupons to create a stress free and positive environment. Employees are asked to share their work and participate in training programs in order to facilitate organizational learning.
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percept c o n s u l t a n c y MILESTONES AND FUTURE PROSPECTS ACHIEVED
Website Developed
Team Arranged, Office Plot Located and Bought, Market Research and Business Plan Developed
PHASE 1
Setting up the office at the Mumbai Location
Completing the interactive website of Percept Consultancy
Organizing the UPA Conference at Mumbai to gain publicity and awareness
PHASE 2
Attract our clients and complete the required services timely and accurately
Revenue of INR 20,000,000 achieved
Purchase new Design Labs for Usability and R & D
FINANCIAL INDICATORS Key Financial Indicators as per the projections attached:
Percept Consulting would launch with a INR 15,000,000 investment from its founders and a INR 5,000,000 unsecured loan from GSAM Industries.
Percept Consulting makes INR 20,000,000 in revenue in the first year with a net profit of INR 6,410,000.
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percept c o n s u l t a n c y 
We would raise another INR 5,000,000 loan during the second year of operations and purchase an additional office plot which will serve as the Usability Labs of Percept Consultancy.

We plan to purchase TS Consulting during the fourth year of operations.
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