Dave Christian, President
Mark Dorfman, CFO
Scott Testa, COO
Product Line or Service Mindbridge has developed software that
allows organizations to easily build and maintain an intranet. Mindbridges prominent
position in the custom web application development market has lead us to conclude that
there is a market for several core Foundation Applications as "shrink-wrapped"
applications. These applications include Company Directory/Employee Information, Expense
Reports, Time Sheets, Threaded Discussions, Group Scheduling. Mindbridges
"Instant Intranet" software is built in Java to provide maximum flexibility and
Mindbridges current customers include Eli Lilly, GE Medical, Bell-Atlantic,
Harris, US Army Corp of Engineers and Better Homes and Gardens Online.
Technology/Proprietary Rights Mindbridge plans to protect and
exploit its proprietary core technology. It will rely on a combination of copyright,
trademark, and contractual provisions to protect its intellectual property rights in its
Market Opportunities Our industry is expecting huge growth.
According to Forrester, "(The) next generation services to build and manage
distributed infrastructure and ECommerce/Internet will account for $173 billion of the
market in 2002." While various research firms measure growth differently, they agree
that the current Intranet software market size is approximately $2 billion dollars and
will grow to $12-20 billion in the year 2000. The International Data Corporation says
"in 1996, the nearly $19 billion spent on Internet and Intranet products and services
was equivalent to 26% of the marginal growth of the entire IT industry." RHI
Consulting found, in a survey of 1400 CIOs of firms with 100 or more people, that
66% of them either have an Intranet in place or plan to develop one over the next three
years. While the specific niche, which we are addressing, may only occupy a small portion
of these industry projections, we believe the market will exceed the current
"GroupWare" solutions being sold today.
This software will provide the following value propositions of Low Cost of Entry,
Universal Access, Lowering the cost of IT, Improved Productivity, Low Cost of Training and
the Emotional Satisfaction of decision-makers being able to correctly say with pride that
they have implemented a Java-based Intranet.
Marketing/Sales and Distribution It is our current thinking to
pursue a "Netscape like" distribution strategy of:
1) Making this software available for free download over the Internet.
2) Bundling this software with as many system/database/server vendors as possible.
3) Legally license this software for 90 days of use only.
4) Make no attempt to enforce this license other than by restricting the number of
support calls per serial number.
The key to conquering this market will to be to align ourselves with significant
players in the market. According to the Yankee Group, "Traditional minicomputer and
mainframe system providers IBM, Digital Equipment Corp., and HP are all
entering into alliances or making acquisitions that will help them crack the burgeoning
market for Intranets." In addition to these players, we will be targeting System
Vendors like Apple, Netscape and SCO. We will also target the database vendors like
Oracle, Informix and Sybase and the PC server Vendors like Compaq, Dell, NCR and Micron.
Mindbridge will institute a major public relations campaign. The investments in public
relations will have a positive influence by establishing brand recognition. Initially we
plan to develop a "two-tiered" sales channel strategy. This is mandated by the
fact that average sale is going to be under $10,000.00. This sales force will consist of a
small number of individuals whose sole function will be to sign-up Value Added Resellers.
In conjunction with this a telesales force shall be developed and compensated to ensure
that all (or most) sales occur within the Channel.
The final sales strategy we will pursue is that of OEM sales. This software will be
architected in such a way to make customization for the major Internet/Intranet players
relatively straightforward. Although it is difficult to forecast at this point, OEM sale
could make up a large part of our sales volume and revenue.
Competition Direct competitors include Intrablocks,
Intranetics, Oblix Inc., Lotus/IBM Notes and IntraActive. The security architectures and
the limited flexibility in these competing products was found by Mindbridge to be so
deficient that it requires a response in the marketplace for a product like ours.
Microsoft and Netscape do not currently have products that directly compete in this space
but, we foresee them entering this market within one year.
Manufacturing The manufacturing of the software disks and
manuals will be outsourced.