Intag Classified Documents
Classified Document Number 7
Number: 007
Date: Jan 2000
meroAuthor/s: Juan Chamero

E-mail: jach@aunmas.com


Subject: Systems

Consulting Business Model

How to sell Systems and Intelligence in Internet

The idea to implement a Consulting firm to sell Systems Solutions and Intelligence applications in Internet was born along year 1999. The "dot com" applications were in the summit and new and raw undertakings launched almost without money could go upwards of a sudden in a rampant explosion even to eclipse sound businesses. At that time, one of our clients launched a humble Spanish Portal gathering 45,000 dollars with a bunch of friends and their families and go upwards so fast to have a 2,500 millions dollars market value in less than one year!. However, a deep approach to many of these undertakings show us that we were perhaps in the middle of a giant bubble of illusions, a second Gold Fever but not sustained by something as real as gold.

Sound systems approaches were overlooked at that time. However, for studious and perseverant people the Web space resembled a real time lab of many sites destined to fail soon as it happened of a sudden as it begun. At least you could study what not to do in the near future. With that presumption in mind, the same people that founded Intag created a business model draft to build more solid Websites using Expert Systems and Intelligent Agents. This idea gave place to the IBMind Project, which was then changed to a more elaborated Intag Project. IBMind stands for Internet Business Mind (Mind stands for Maps and Intelligent Design besides), but with an acronym too close to IBM.

Business Model:

Business Model

 

 

 

IBMind is a Consulting Company focused on the Design and implementation of Intelligent Agents for the Latin American B to B (Business to Business) e-market. Its sales policy will be initially oriented to those companies involved in the B to C (Business to Customers) market to help them to captivate and to maintain as many customer as possible with the lowest cost. And within this market there is still another important niche: the Pymes’ market, which stands for Small and Medium Enterprises in Spanish.

 

 

Income source

 

In the beginning the unique source of revenue will be the selling of Expert System Packages to the companies involved and/or trying to enter into the Latin American B to C market. In this sense we depict two kinds of clients:

 

·         American investors and/or American enterprises interested in the Latin American B to C e-market

 

·         Latin American investors and/or Latin American enterprises interested in the Latin American B to C e-market launched either locally or from USA.

 

 

Selling Approach

 

The selling approach will be the classical in the consulting arena: by proposals backed up by:

 

·         A sound living demo

·         “At least One” successful application basement

·         A public technical brochure copyright protected

·         Some key publications in technical reviews featuring the package

·         A technical presentation of the package in an IT/e-commerce Congress is desirable

 

 

Other By Product income sources

 

As the product is at large intelligence each Expert System designed and implemented for clients as a By Product will enrich us as a with knowledge and business strategic information, what justify the name Intelligent Business Mind of the company. Like in the case of The Economist, the core of its business sites on its IEU Intelligence Economical Unit, in our case we hope that most of the revenue outcome in the near future will come from the intelligent By Products. 

 

As the product we sell is an Intelligent Agent that acts as a gateway in between the enterprise and its customers the Expert System implemented has the basic knowledge and basic information this particular niche of the market needs. Each market defines its major subject of interest, namely: health, auction, personal finance, investment, antiques, collections, sports, entertainment so we get as a by product of the Expert Systems the basic knowledge and critical information for those subjects. Of course the “customized” packages belong to our clients but the basic knowledge and a big deal of the critical information we acquire as a professional experience belong to us.


Only to give our investors an idea we expose here some possible By Products:

 

·         Editing of Tutorials, Guides and Manuals on account of the extremely dense quote of knowledge and critical information we acquire as a result of our professional work.

 

·         Creation and breeding of SB-DB’s Strategic Business Data Bases for type of industry and for type of solution (vertical markets).

 

·         Business opportunities in the Latin American market. Latin American countries are developing countries with some difficulties to enter into the massive Internet market because lack of economical solutions. For instance it is unthinkable in this moment to offer locally to the Pymes a massive Virtual Office Kit at an affordable price but it could be made possible with our participation as a friendly link of that particular value chain.

 

 

As these many other opportunities will come out of the lack of “economic size” of most of the Latin American markets. For instance the Commodities Market for traditional and non-traditional commodities is now undervalued because lack of opportunities of the planters and producers to open new channels to market worldwide their products.

 

Note: The traditional Latin American traders belong to the buyers and sellers of the North hemisphere, are old fashioned but still are ruling the Lion’s part of the cake. Internet as a global equal opportunity tool is creating new efficient channels directly connecting producers with consumers. Pymes by millions are eagerly waiting for them and our firm could be one facilitator for that purpose.

 

 

Comparison of Competitive Scenarios

 

 

Web Developing

 

We could not devise a competitive scenario for our product yet. Most of the B to C enterprises build their sites to accomplish their goals by their own with their own staff and eventually complementing their job with web developers contractors. Taking a look to the web developing side the market offer thousands of them covering an ample spectrum of micro specialization mainly oriented to the design yet not to the content.

 

 

IT Consulting

 

The IT Consulting arena cover the whole spectrum of vertical and horizontal e-markets being the web development only a tool to approach to their customers. The customer site is considered a golden “free” gift to decor the solution implemented and made by their own staff.

 

What are the Artificial Intelligence Consultants doing then?. Most of them work as Top Experts designing and implementing Security Systems and Intelligent Agents for the Governments and for big Corporations. We could not find any of them working to facilitate the B to C business.

 


Competitive drawback

 

For as our product is useful and of easy and fast implementation our pioneering will be rapidly imitated by many professional and consulting firms as it happens in the life cycle of the original and successful utilities. If we start with a package named for instance MEXICO, which stands for Metodología de Extracción de Información y Conocimiento Online in Spanish, we will hear pretty soon of dozens of similar and perhaps better packages (for instance EXIST for Expert and Intelligence System for Trade and many others) so our main advantage will be being the first.

 

We are not able then to objectively foresee our competitive scenario but surely we are going to have it very soon. In the meantime we are going to list some key facts to have in mind relating to the competitiveness:

 

 

Competitive Key Facts

 

Strengh

Our methodology uses well-known and proven ideas: Expert Systems, Thesaurus and Content Value. All these ideas were always present in IT and lately in Internet but concerning Internet they were put aside in the last four years along the boom of the domain .com (nobody knows why!). Our product could be considered the reborn of an “old implicit methodology” eventually strengthen by the failure of the searching engines as intelligent agents.

 

If four years ago the Web had let’s say a mix of 90% of knowledge and 10% of information, 95% objective and naive now it should have 10% of knowledge and 90% de information but noisy: 95% subjective and commercially speculative. On account of this characteristic the only way of getting the appropriated sum of knowledge and information from Internet is to design a methodology that considers the mediation of a human or quasi-human intelligence.

 

Target clients

 

·         Private Sector:

 

·         The big media LA enterprises, for instance GDA, Grupo de Diarios América, newspapers Clarín and La Nación from Argentina.

·         Foreign and local Economic Groups that acquired big enterprises of services to the public sector by the process of Latin American “privatization”.

·         Banks and Financial Institutions like the holders of Pensions and Retirement Funds that want to diversify their risk taking into account the expected Jubilee Year 2.000 and the local money loss of parity against the dollar.

 

 

·         Public Sector:

 

·         LA National Governments compromised by national policies and/or by multilateral/regional agreements with the empowerment of their Pymes, for instance Brazil, Mexico and Argentina.

·         NGO’s (ONG’s in Spanish) and NPO’s compromised with the LA countries development.

·         Regional, national or local Chambers of Industry and Commerce compromised with the training, upgrading and general empowerment of Pymes.

·         Universities compromised with plans and programs to help the Pymes and to eradicate the poverty.

 


Things that make it sticky

 

·         Managed by Spanish speaking people.

·         Very high information and knowledge efficiency: you may find what you are looking for, what you need, in matter of seconds, friendly, plenty of useful labeling and tagging and everything in Spanish.

·         One hundred per cent customizable.

·         Relatively small amount of investment.

 

 

Smartest Move

 

·         Copyright of the methodology

·         Implement a living demo

·         Being launched at Miami.

 

 

Vulnerabilities

 

·         It’s easy to imitate, to emulate (not to copy).

·         Strong dependence of the founder presence, mainly within the first year of life of the Consultant firm.

 

 

Missing Pieces

 

·         An American counterpart, a professional assigned by the investors who knows pretty well the American commercial establishment to act as backup of the founder

·         A contact to the technical publishing American media to spread the idea.

 

 

The Buzz

A crazy will of success.

 



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