PBP

PBP – Status March 11, 2015
This document is both a meeting report and a status report.
It is related to the business discussed between BCI, PBN, PGE (no need to explain who and what here).
As a working document, it is neither accurate, nor well structured.

Market size

Question: Belgium? Benelux? Selected countries? All Europe?
Answer: PBP targets “All Europe”. It is an European project. Hence:
- wide scale automation is critical
- client prospection should be “industrial”
- data human contribution should be minimized

Key figures were taken from “Annual Public Procurement Implementation Review 2013 – based on information collected for 2011.”

The figures include MS (member states) expenses, and not EU institution direct expenses.

Various interesting figures. One of them is 447M€ (global amount 2011),

270 K contracting “auhorities/entities” (the wording is ambiguous).
… assumption: 90K authorities + 180K contracting suppliers entities
… assumption 3x(180K contracting) = 540K submitting entities

The rich notes provided by BCI “Public procurement in Europe Cost and effectiveness” and “Public Procurement Statistics” give valuable complementary information to the analysis above.
It is not used in this document yet.
It will be used to further tune several analysis angles.
Should be read by the three founders (?) before next meeting.

Revenues generated by “competitors”

Known competitors (Belgium) :
EBP
Govex
Question: competitors in other countries??? (for BCI) Newcomers???

TBD (to be done) : detailed analysis of service provided by competitors.
Review of EBP with Rodolphe Gonze.

Revenues generated by competitors:
EBP : 4000 clients 1200 €/year-client : 4.8 M€/year.
Govex : 1500 clients ???/year : ….

Acquisition process assumptions

Time to turn a prospect into client: ~6h
Time to lose a prospect : ~2h
Success ratio: 20%
Global ratio: 14h prospection time / acquired client

Expected revenue per client acquired : 5 year x 1200€/year : 6000 €.
6000€ for 14h of commercial efforts is a comfortable ratio!
But of course the commercial efforts are just a part of the recurring business expenses.

Client number : target

Among 540.000, how many may be targeted?
Some are too small (not ready to pay)
Some are too big (but they rae not numerous).
Many have their own information gathering process, mostly artisanal and human.

20% “targettable”: 54.000 potential subscribers.

Market share? To be discussed
Acquisition speed? To be discussed

10% market share after 5 years (5400 submitting entities) would be enough to ensure a comfortable return, around 5400x1200 €/year ( 6.5 M€/year). Realistic... ?

Expenses Overview

• marketing
• commercial
• software development
• operations (data filling)
• technical operation (servers, connections...)
• support
• management

Figures should be assumed (as function of client number).
This should be part of a business plan.

Legal Context

PBN mentioned that some of the TED legal foundation should be revisited and redefined in 2016 by the EU administrations.

We should acquire a good knowledge of this point, especially if it affects the way the TED content will be published (to be done by PBN?).

Development Overview

1. Analysis step
1.1. Review of concurrent front-end : strengths & weaknesses
1.2. Data analysis : content
1.3. Data analysis : extractability
2. Data structure (database design)
3. Extractor
4. Front-end (functional)
5. Front-end (sexy with designer)
6. Promotional web site
7. Client operational web site
8. Push process (email)

Quick and dirty evaluation:

PGE able to do all the stuff except

• designer tasks,
• some parts of the web site
• online subscription payment

- Analysis : ~ 10 days
- Step 2-8 : … 6 ...9... months to get a working solution (evaluation to be more accurate after analysis steps)

[ prospection & client management tools for internal purpose ? Maybe a standard CRM... ]

Finance Overview

Questions to founders

• financial capacity
• short term working availability
• long term working availability
• priority ?
  • Long term shareholding (aiming at share dividend)
  • Short term shareholding (aiming at quick sell and gain)
  • Working revenues
• capacity to attract external investors