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Example executive summary with formatting explained in parentheses.

TIDAL POINT (title)

Phoenix, Arizona

www.tidalpoint.com

Contact: _______

Stage: Pre-launch

Industry Software Product NAICS Code: 511210

Software Consulting NAICS Code: 541512

Mission Statement (bold header)

To empower our customers by providing them with better control of their IT systems through efficient, rational, and cost-effective delivery of IT products and services. And do so by becoming our clients' most trusted advisor and partner by sharing knowledge and best practices.

Problem Being Solved (bold header)

Nature of Problem: When it comes to replacement of their legacy IT systems, insurance companies struggle with cost and effort overruns, which makes the cost of transformation and cost of ownership significantly higher.

Market Segment: There are approximately 300 mid-sized to large insurance companies that need to replace their legacy IT systems. The segment growth rate is estimated to be 7% CAGR, and the total IT budget by year 2015 for COTS product and services is estimated to be USD $17.5 billion.

Importance: There is an unmet need for insurance software product providers who can combine the follow-up services required for product integration and implementation into insurance companies' operational landscape. We will offer a suite of services to the companies along with consultants and experts who can enable a smooth transition for insurance companies.

The Solution (bold header)

We will provide a customized off-the-shelf product along with the services required to integrate this product into an insurance company's operational landscape. The product will be Tidal Point Policy Administration system; this system can cover all major business lines and provide an end-to-end processing capability which includes distribution, new business development, underwriting, claims, and reinsurance. The services provided will include data migration, implementation, business analysis, process consulting, and IT strategy consulting.

USP

 Provide an integrated suite of services to the clients without having them organize different activities related to legacy system transformation.

 Overall cost and time will be reduced for the clients due to:Reduced time and efforts in issuing multiple RFPs and RFIs.Speed to start will improve as one vendor will provide all the services.

 More effective approach as all the services would be provided by a single vendor, which will give clients better control and ease of managing the transformation.

 Lower cost of ownership for the customers.

Competition

 IBM, CSC, Guidewire, Accenture (Duck Creek), MajescoMastek, Camilion, Exigen, lnsurity, AQS, CGI, Cover-All

Market

 400 Property & Casualty (P&C), Specialty and Life Insurance companies in the U.S. market.

Market Segment

 Software (NAICS 511210): Insurance COTS product market estimated to be $17.5 billion by year 2015. Insurance software services, including consulting market, are estimated at $40.9 billion by 2015.

 Software consulting (NAICS 541512): Insurance software consulting services are estimated to be $41.0 billion by year 2015.

 Approximately 300 insurance companies (direct carriers) need to replace their legacy IT systems for at least one class of business.

Marketing Plan

 Advertisements through industry publications such as Insurance & Technology.

 Participating in industry conferences and sponsorship of these events.

 Personal contacts and outside sales.

Price

 COTS product: $1,250,000

 Business analysis: $650,000

 Implementation: $700,000

 Process consulting: $200,000

 Data migration: $200,000

 IT strategy: $150,000

Financial Summary

Back to Figure

The relationships are as follows:

 Chart 1: No channel members. Firm cost equals $1.00. Markup on cost equals 20 percent, which leads to Consumer selling price of $1.20.

 Chart 2: One channel member. Firm cost equals $1.00. Markup on cost equals 20 percent and leads to Channel member selling price of $1.20. Markup on selling price equals 33 and one-third percent. Markup on cost equals 50 percent. These lead to Consumer selling price of $1.80.

 Chart 3: Two channel members. Firm cost equals $1.00. Markup on cost equals 20 percent, which leads to first Channel member selling price of $1.20. Markup on selling price equals 10 percent. Markup on cost equals 11 percent. These lead to second Channel member selling price of $1.32. Markup on selling price equals 33 and one-third percent. Markup on cost equals 50 percent. These finally lead to Consumer selling price of $1.98.