(1) The document proposes a Software as a Service model called "3Steps" to provide business automation applications to small and medium enterprises (SMEs) via the web at a lower monthly cost compared to traditional software licensing. (2) It analyzes the Egyptian SME market and finds a need for affordable IT solutions. (3) 3Steps aims to help SMEs increase revenues, reduce costs and build customer relationships by offering integrated applications hosted remotely.

1. 3Steps
(1)
SME is a popular acronym for Small to Medium Enterprises.
(2)
BMI is an acronym for Business Monitor International which is well known business intelligence agency.
IInnttrroodduuccttiioonn
Imagine that you are an SME(1)
entrepreneur with a limited capital, yet you can have full set of
expensive software for your business without paying a vendor, installing complex IT infrastructure
or hiring expert IT technicians.
Our focus is the problem of SMEs inability to employ expensive software due to the limited capital
or the risk of failing to achieve the promised return of investment after utilizing certain solution
because of mismanagement or the deficiencies in the IT department.
According to BMI (2)
Egypt IT report 2008, “more than 50% of the regional business community
comprising SMEs, this sector is likely to emerge as the main driver of enterprise application
spending over the next few years”.
Our team has domain experience acquired from working in companies like EDS, Asset, Giza
Systems, EDC and Reckitt Benckiser Egypt, beside our experience in Software Engineering,
Operation Research, Sales, Finance and Remote Deployment.
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SMEs avoid dispelling a considerable amount of their limited capital in:
 Building complex IT infrastructure.
 Managing and paying for an IT department.
 Purchasing or developing expensive software.
 Maintaining and upgrading already deployed solutions.
As a result, they fail to make use of technology and lose competition to other company which is
more tech savvy. Due to the emergent awareness, SMEs would rather have fast IT solutions at
lower costs, with minimum effort and a feasible return of investment.
TThhee SSoolluuttiioonn
What do we offer?
“3Steps” offers Integrated Software as a Service suite (unlike Software as a Product) which is
managed from central location rather than at each customer's site, enabling customers to access
applications remotely via the web.
We provide business automation applications to be used through the web as a rentable service.
The offered service suite designed to help entrepreneurs achieve three goals; increase revenues,
reduce costs and build strong customer relationship.
BySheriefShawkyraken123@
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BySheriefShawkyraken123@
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2. (1)
CAPMAS is an acronym for Central Agency for Public Mobilzation And Statistics.
(2)
CAGR stands for Compound Annual Growth Rate.
The Benefits
The service is multi-tenable which eliminates the cost of having in-house IT systems.
The centralized architecture simplifies the required infrastructure to run the service.
Software as a Service alleviates customers of maintenance and upgrading operations.
Service Model
 Accounting Information System as a Service.
 Business Process Management System as a Service.
 Business Intelligence Applications as a Service.
 Sales Force Management System as a Service.
Service Prospect
The prospect of the service ranges from small to medium enterprises. The addressed SME types are
Trading, Manufacturing and Service. They will be charged on monthly subscription basis that can
be expanded or contracted as needed.
MMaarrkkeett AAnnaallyyssiiss
Market Size
BMI Egypt IT report 2008 stated that,
“IT services were worth around
US$978mn in 2007, accounting for about
24% of Egypt’s total spending on IT.
A market CAGR (2)
of 14% is projected for
the next period through to 2012”.
The richest local IT market compared to
other verticals.
Market Growth
BMI Egypt IT report 2008 forecasted that,
“SMEs are likely to lead spending growth,
with manufacturing and trading firms seeking
efficiencies by making the transition from
manual environments to full automation of back-
office systems”. The report states that during the
next five years, a high SMEs demand is
anticipated in CRM, ERP and Business
Intelligence, those categories construct the main
theme of our Software as a Service model.
Market Entry
The entrepreneurial nature of the prospect indicates that business owners manage their own IT
activities; owing to that fact, we can enter the market by announcing free training workshops on
how to use the service at public SME support events. SMEs receive support services from the
government like ITIDA’s Industry Support program.
79.82%
40.19%
52.71%
20.19%
45.18%
15.38%
0%
20%
40%
60%
80%
100%
Computer Usage Internet Usage LAN Usage
Medium Company
Small Company MCIT 2009
SMEs ICT Demographics
Medium
Small
SME Distribution
CAPMAS (1)
2002
16%
15%
69%
Trading
Manufacturing
Service
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BySheriefShawkyraken123@
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3. (1)
Green IT has better environmental impact.
TThhee CCoommppeettiittiivvee AAddvvaannttaaggee
Indirect Competition
Those who deliver midmarket oriented solutions like Oracle and SAP. The following quality metrics
are our competitive advantage against indirect competitors who deliver Software as a Product.
 It’s far less expensive when considering the cost of hardware and human resources.
 Upgrading the software doesn’t present added expenses on the subscriber.
 Service subscription can be elastic enough to adapt to customer needs.
 The service can be available to subscribers in a matter of minutes.
 It’s greener (1)
which is more compliant with current government attitude.
 Accessible from places rather than the workplace like home.
 The possibility of delivering the service to mobile devices is easily open.
Direct Competition
We also have competitive advantage against
direct competitors like Google and Sales Force
(Both are cloud computing giants) due to:
 The currency value difference.
 The language.
The magic quadrant on the right doesn’t necessarily
reflect the reality; it is just for illustration purposes of
indirect/direct competitors in case they approached the
regional midmarket.
TThhee RReevveennuuee MMooddeell
License based service with 4 types of licenses each of which has different price.
Licenses
Type Description
SubscriptionCategories
Type Description
A
Opens basic modules in one
application with practical disk
space
Free
Limited trial + How to use the
service workshops + Online
customer support
D
Opens all modules in more than
one application with unlimited
disk space
Module
Integrated functionality that
delivers certain business
requirements
B & C
Licensed to a custom module and
disk space subscription
Disk Space
The storage area that holds the
customer’s business data
Service Agreement
 For every subscriber, limited set of devices will be allowed to use the service.
 User sessions will be monitored to avoid service abuse.
 Every module might have separate authentication credentials.
 The service level agreement shall identify:
 Periodic data backups to be shipped to the customer.
 System availability and fail over window in case of disaster.
 Data confidentiality terms.
 Proactive notification of system upgrades and scheduled changes.
Ability to Execute
CompletenessofVision
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4. (1)
Business Intelligence and Business Process Management are sub-disciplines of Operation Research.
TThhee FFiinnaanncciiaall SSuummmmaarryy
Positive cash flow starts at the 2nd
year. Each customer might lease many licenses. Sales strategy in
those 5 years consists of 2 milestones, price of licenses drops to 50% in the 2nd
milestone.
TThhee TTeeaamm
Our team covers the strict technical aspects of the project. Regarding the business model, two of our
team members have the required work experience and the academic background. Currently we
don’t have customer support experience but we are planning to cover it in later project phases.
Popular Projects Participation
Mubasher Info. Arabian stock exchange agency, its user count exceeds 200,000 users.
Vodafone E-payment Gateway. Multi electronic payment gateway that serves millions of cell
phone network subscribers daily.
CNBC Arabia portal. CNBC is a well known financial TV channel that has worldwide viewers.
Vodafone DCA. Countrywide distribution channel management and monitoring system.
General Motors GQTS. Supply chain management system used by GM worldwide suppliers.
Work Experience
Software Engineering
Five years of working experience in companies like EDS, Asset, EDC
and Giza Systems.
Remote Deployment
Two years of working experience in deploying and administering
applications remotely.
Finance Two years of Accounting experience using Oracle JD Edwards.
Sales Two years of sales experience in two different companies.
Academic Degrees
Software Engineering
Two B.sc degrees and Master degree in Computer Science from
Faculty of Computers and Information Cairo University.
Operation Research (1)
B.sc degree in Decision Support from Faculty of Computers and
Information Cairo University.
Finance B.sc in Accounting and CMA candidate.
Milestone1 Year 2011 2012 2013
Milestone2
2014 2015
Revenues (M) 0.07 0.40 0.87 1.48 4.17
Cost (M) 0.32 0.37 0.45 0.47 0.59
Net Income (M) -0.25 0.03 0.42 1.01 3.58
Total License Units. 50 150 223 932 1979
License Price Price
A 200 100
B 500 250
C 1000 500
D 3000 1500
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