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PALANTIR TECHNOLOGIES : business model Key Issues & Analysis ACQUIRE, EXPAND, AND SCALE Acquire Less than $100,000 Although the company's profits are rising, it has a lot of operating expenses that include R&D and management expenses, leading to the company not being profitable Phase Costumer
Rev Expand More than
$100,000 account contribution negative negative Positive More than
$100,000 Scale The first two steps focus on developing and understanding customer needs and have no time limit<br>
05
Industries The company is optimally developing platforms in 36 industries Unique value proposition Key Issues & Analysis Palantir provided software platforms for human-driven machine-assisted analysis of real-world data. Infrastructure of data modeling search and compute artificial intelligence and machine learning The company provides high-level security, a unique value proposition to governments and commercial companies and therefore they make up the majority of its profits. But the company is scattered across many industries IL 5<br>
06
Market There is significant potential in a market that has grown especially after the corona Key Issues & Analysis THE four big:
IBM, Apple, Amazon, Microsoft Potential<br>
07
Competition The company's main competitor is Tyler Technology - options to overcome the challenge: geographical expansion, unique features and upgrade to IL 6 Key Issues & Analysis IL 5 Geographic markets Competitive arena Amazon Japan, USA, UK and France IBM There is an option for geographical expansion to Canada, Europe and Asia (in Western countries) Oracle Microsoft Disa AWS Going up to IL 6 will give a significant competitive advantage PALANTIR Google Tyler Tech open platform Close platform Identical features Non-Identical features Amazon ZSCALER Alteryx<br>
08
Alternatives Business Model Industries Organizational Structure<br>
09
Free trial
What?
Give new customers a free trial period to attract them to the company. Business as usual
What?
Continue with the current pricing method. Pay for what you get
What?
Change the pricing method so that it is profitable from the first moment. Business Model Alternatives<br>
10
Business Model YES NO Alternatives<br>
11
Business Model YES NO Alternatives Continue with the system you work with right now
But put a time limit for the Acquire and Expand phases.<br>
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Power to the government
What?
Continue to be based on activity with the US government sector.
Why?
This is the most profitable field for you. The free market
What?
Focus on the business sector and expand your business to new places in it.
Why?
This is the market with the greatest growth potential. In every household
What?
Start and penetrate the realm of private households.
Why?
Will allow you to expand your sources of income. Industry and Competition Alternatives<br>
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Industry and Competition YES NO Alternatives<br>
14
Industry and Competition YES NO Alternatives Focus on the business and government sector
Increase your control over the government market invest in entering IL-6.
Earn more from the business market focus on specific industries.<br>
15
General workers
What?
Employees will engage in ongoing tasks related to various industries based on their job definition.
Why?
In order to create an organizational structure based on areas of work. Industrial workers
What?
Employees will engage in ongoing tasks related to specific industries based on accumulated training and knowledge.
Why?
In order to create an industry-based organizational structure. Organizational Structure Alternatives<br>
16
Business Model YES NO Alternatives<br>
17
Business Model YES NO Alternatives<br>
18
Business Model YES NO Alternatives Changing the organizational structure to one that specializes in specific industries.
The organizational change will prevent the expansion of the sales department and will help it specialize with the current workforce.
PR activity will be required in order to penetrate these markets faster.<br>
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Recommendation Business Model Industries Organizational Structure Recommendation<br>
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Recommendation Business Model Industries Organizational Structure Recommendation<br>
21
Recommendation Acquire Limitation to 12 months Expand Limitation to 12 months
+
Possibility of extension for 12 months Reducing non-profit phases Recommendation<br>
22
Recommendation Business Model Industries Organizational Structure Recommendation<br>
23
Recommendation Mapping profitable industries Recommendation Investment in selected industries<br>
24
Recommendation Mapping profitable industries Mapping of profitable industries and industries with profitability potential Industry selection Recommendation<br>
25
Recommendation Investment in selected industries Achieving IL-6 for Classified Secret National Security Systems Development of unique and industry-adjusted features Recommendation<br>
26
Recommendation Business Model Industries Organizational Structure Recommendation<br>
27
Implementation Plan Recommendations Product manager sales engineering Product manager sales engineering Product manager sales engineering<br>
28
Recommendation PR Improving public opinion about the company
The contribution during the Corona crisis
State Security Assistance Recommendation<br>
29
Implementation Plan Implementation Updating customers in phases A and E in the new business model
Updating our non-paying customers in transition to paid plans
Characterization of similar industries
Mapping the profitability and potential profitability of the various industries
Research and development for relevant features for selected industries (IL-6 standard, sound analysis)
Reorganization of departments
Recruitment of a team of product managers
Outsourcing to PR Deepening the entry into industries with high profitability potential
Continue to develop unique features
KPI for organizational change<br>
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Implementation Financial Projections – Income Formula:
Business model:
Acquire – decrease the length of the contract to 1 year - 25% of revenues . Means min. annual revenues increase et least 50K per company
Expand – decrease the length of the contract to 1 year + additional year in needed/ asked - 25% of revenues. Means min. annual revenues increase et least 50K from company
Scale - leave the same – 50% of revenues
The annual growth of software industries is 4%.
Palantir’s last year (2020) growth was 49% , we estimate the organic growth :
First year 30% , Second 20% ,Third: Stable 10 % , Forth : 10 %, Fifth 10%
The annual growth is bigger than the market due to aggressive PR and changing public image Financial Projections You will continue with your current customers even the strategic change<br>
31
Implementation Financial Projections - Expenses Formula:
Organizational structure – divide the R&D to 10 top industries Financial Projections Focusing on specific industries decreases the expenses on R&D<br>
32
NPV 189M$ - Positive cash flow Implementation Financial Projections- NPV Financial Projections<br>
33
Risk & Risk Mitigation Probability Impact Prejudices Risk & Risk Mitigation<br>
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Risk & Risk Mitigation Probability Impact Prejudices Risk & Risk Mitigation New industries<br>
35
Risk & Risk Mitigation Probability Impact Prejudices Risk & Risk Mitigation government contracts New industries<br>
