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