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OPERATIONAL MANAGEMENT SOLUTIONS Business Opportunity Analysis


Business Strategy 1

Business Strategy 2

Business Strategy 3

(Partner with Existing Company)

(Investment in Venture)

(Independent Start-up)

Charateristics

Charateristics

Charateristics

Partnership with established organisations.

Investor to invest capital into business venture.

Limited owner investment.

Mutually beneficial relationship.

Slower growth.

Slow growth based on project contracts won.

Reasoning

Reasoning

Reasoning

Shared services .

Start-up capital.

Limited start-up capital.

Relative fast growth. Immediate market reputation and client relation ships. Management expertise.

REQUIREMENTS – EXPERT RESOURCES

The new venture business case explore three start-up strategies in terms of financing and non-financial investment.

Start-up capital. Client contacts and references Expanded geographical and services capability

2


VISION To become leader in the operational systems market space within the African region - by delivering relevant solutions to our clients that will bring long term sustainable value to all parties concerned

3


Wisdom Knowledge Information Data

Group Executives

Processes Strategize & Envisage

Group Management Finance Dept.

Plan & Report

Engineers, Plant Managers, Prod. Planners

Analyze & Optimize

Operators, Supervisors

Operators, Supervisors

Assets

Monitor

Execute

Enterprise

OMS

Technology Business Intelligence (BI)

Site

Enterprise Resource Planning (ERP)

Area

Manufacturing Execution System (MES)

Unit

Equipment

SCADA

Programmable Logic Control (PLC)/DCS

BUSINESS CONCEPT - OMS IN THE ORGANIZATION

People

4


BI Plan & Schedule

ERP Improve

OMS

Execute

Analyze Performance

Plant Control

Monitor Performance

Collect Data

BUSINESS CONCEPT - BUSINESS PROCESSES

The business processes extend across more than one enterprise domains - All domains need to function in synchronism with each other.

Field Devices

5


Start-up Capital / Supporting Services

OMS Business Case

Solid Strategy

BUSINESS CONCEPT - KEY SUCCESS FACTORS OVERVIEW

Intellectual Capital

6


Intellectual Capital Attract and retain best people

Develop key resource retention strategy

Support for business start-up Capital required for start-up

OMS Business Case Develop resource plan (critical mass of key skills)

Business Context

Support services for startup

Value Analysis

Business Start-up Justification Go-to-market Strategy

Delivery Strategy

Long Term Sustainability

Relevant Solutions

Solid Strategy Develop strong marketing and delivery strategies

BUSINESS CONCEPT - KEY SUCCESS FACTORS DETAILS

Start-up Capital / Supporting Services

7


The business principles that have to be in place for this venture to be successful are; • Focus on end-state value drivers – long term sustainable value add. • Truly vendor independent. • 60/40 Project – Solution maintenance “outsource” business model. • Competitive pricing model. • Attract and retain the best people within this market sector.

Industry Focus The industry verticals that will initially be focused on are: • Mining • Metals • Manufacturing (Products) • Telecommunication and High Tech

BUSINESS CONCEPT

Business Principles

Services Focus • Operational Management Systems • Manufacturing Execution Systems • Management Information Systems • Laboratory Information Systems • Fleet and vehicle tracking systems • Process Optimisation • Expert Systems • Process Optimisation • Energy Optimisation • Control loop monitoring and optimisation • Enginery Optimisation

8


Location

Qualifications

Years Relevant Experience

Freddie Kruger

Namibia

B.Tech Eng. (Elec)

16

Rudolph Mocke

Namibia

B.Sc (Comp Sci & Phys)

8

Antonette Coleman

Namibia

B.Com (Informatics)

6

Shitongeni Kakehongo

Namibia

N.Dip (IT-Software Development)

5

Willem van Greunen

Namibia

N.Dip (IT-Software Development)

6

South Africa

B.Eng. (Mett) M.Eng. (Proj.)

10

Resource

Johann Kruger

REQUIREMENTS – EXPERT RESOURCES

COMPETI TION

One of the key success factors for this venture is to attract the best talent and retaining these key resources within the organisation through innovate management strategies.

(In progress)

Gerrit Smit

South Africa

B.Eng (Chem) Dip. Prod. Mngmnt

8

Rosalind Cameron-Dow

South Africa

M.Tech Eng. (Chem)

8

9


Expert skills combined with extensive experience is scarce within the OMS market in the Southern African region. The group of potential resources available have the following specialised general skills within the market segment: • Laboratory Information Systems • Reporting • Dashboards/KPI /KVD • Workflow Management • Custom Development

Operational Management Systems (OMS) • • • • • • •

Management Information Systems Tracking Batch management Logistics OMS Live information Production Planning Quality Management

Optimisation • • • • • •

Process Optimisation Energy Optimisation Control Loop Optimisation Expert Systems and Advanced Process Control Advanced Process Simulation Mass balance reconciliation and metals accounting

System integration • Custom • OPC • Web services

BUSINESS CONCEPT - CURRENT SKILL SET

General

Delivery Management •Project Management •System Lifecycle Management

10


Opportunity Saldanha Steel Level 2 Replacement Saldanha Steel Level 2 Support Skorpion Zinc OMS Support Outsource

Xstrata Coal OMS Development and Deployment Xstrata Coal OMS Support Exxaro OMS Exxaro OMS Support Kumba OMS Kumba OMS Support BHP Manganese OMS Development and Deployment BHP Manganese OMS Support

Estimated Value

Duration

R 5, 000,000.00 Over 2 years

Estimated Start Date 2009

R 300,000.00

Per year

2010

R 800,000.00

Per year

2009

R 35,000,000.00 Over 5 years R 800,000.00

Per year

R 10,000 000.00 Over 3 years R 500 000.00

Per year

R 5,000,000.00 Over 2 years R 500,000.00

Per year

R 10,000,000.00 Over 2 years R 500,000.00

Per year

2010 2011 2010 2013 2010 2013 2010

MARKET OVERVIEW - OPPORTUNITIES

COMPETI TION

The following project opportunities currently exist within the Southern African market that we are aware of and that we feel confident in getting access to bidding for these projects:

2013

This shows a project pipeline of nearly R 68 million over the next 5 years with a potential margin of 30 – 35 %

11


Well Established

Industries

Gijima AST

Yes

COMPETI TION

Market Reputation

Yes

Average

All

BTG

Yes

Yes

Average

All

BCX

Yes

No

Average

All

Deloite

Yes

No

Strong

All

Accenture

Yes

No

Strong

All

MES Africa

Yes

Yes

Average

Petro Chem Paper & Pulp

EOH

No

Yes

Average

All

Mincom

No

Weak

Mining

Matrikon Moore

No

Average

Mining

Yes

BluESP

No

Yes

Strong

Petro Chem Paper & Pulp Energy

ABB

No

Yes

Average

Petro Chem Paper & Pulp

Honeywell

No

Yes

Strong

Petro Chem Paper & Pulp Energy

Siemens

No

Yes

Strong

All

MARKET OVERVIEW - COMPETITORS

Vendor Independent

Product Division

12


Threat of existing competitors adjusting their strategies to follow our strategy. Higher than desired resource turnover. Complex business model and strategies result in lower and expected margin.

Main Challenges in developing and implementing the business strategies. Establish project pipeline with a substantial number of opportunities with High Win Probability. Develop solid go-to-market and delivery strategies Formalise business relationships / partnerships to enable business strategy. On-board the key expert resources at the right time.

CHALLENGES AND RISKS TO OVERCOME

Long term sustainability of OMS market is over estimated.

RISKS AND

REWARD

S

Risks identified

Development of key resource retention strategy.

13


Adjust business plan based on analysis results and latest information

Venture Due Diligence

Analyse viability of business case

Implement business strategy

Establish formal relationships and formalise project pipeline

ESTABLISHING THE BUSINESS PLAN

July 2009

Develop Strategy / Review Strategy

Develop / refine business case 1 Months

14


Business Case