Task: Prepare/Submit/Approve Business Plan
The purpose of Business Plan (BP or B-Plan) is to compile within one document all the key information, assumptions, plans and objectives that are to be considered before making a Go/No Go decision on launching the IP Solution project (initially), before validating important subsequent investments to enhance the IP Solution once it is launched. B-Plan will also serve as a benchmark against which to assess IP Solution success in the future.
Relationships
RolesPrimary Performer: Additional Performers:
InputsMandatory:
    		Optional:
    • None
    Outputs
      Process Usage
      Main Description

      Business Plan is a document with market information, business objectives/goals for the IP solution, associated investments, and plan/strategies for attaining the goals with supporting information/reasons. While it shall be a comprehensive document, it shall remain high-level.

      Business Plan Document can be used for:

      • Assessing the financial potential/success of the product being conceived
      • Estimating the investments and seeking investment approvals
      • Guidance to formulating product strategies and plans

      Product Management Head shall initiate the business plan preparation after the approval of IP Solution opportunity/idea. Business Plan shall be prepared based on the template and submitted for review and approval. 

      Review and approval authority is defined based on the investments importance: 

      • For investments up to Euro 300K (or 500 person-days of efforts):
        • BU review and approval is mandatory. 
        • BU leader may seek review/approval from SBU optionally.
        • Group IP Board must be informed.
      • For investments over Euro 300K (or 500 person-days of efforts):
        • BU review and approval is mandatory. 
        • Review/approval from SBU before submitting to Group IP Board is recommended but remains a BU Decision.
        • Group IP Board review/approval is mandatory.

      The formal approval of business plan and associated investments shall be the starting point for initiating the IP Solution  development.



      Roles & Responsibilities:

      Responsibility

      Product Management Head, Product Marketing Manager, Product Technical Manager

      Accountability

      Product Management Head

      Consulted

      Solution Architect, Sales Team, Engineering Team, Legal Team, Finance Team

      Informed

       

      Reviewer

      BU Head, SBU Head – or their delegates

      Approval

      BU Head, SBU Head (optional), IP Board

      Trigger/Entry Criteria:

      IP Solution opportunity identified is cleared for preparation of Business Plan. Product Management Head initiates the Business Plan preparation activity.

      Exit Criteria:

      IP Solution Business Plan document prepared and approved.

      Notes:

      • Key factors which can influence the approval process of Business plan include Total Addressable Market Size, Average deal size, estimated GOP and  practicality of the assumptions made.
      • It is critical to assess the business plan on overall profitability as IP solutions/products are expected to deliver increased overall profitability. Business plan shall demonstrate the same comparing with the BU’s average GOP. It shall be substantiated with the information on how this is expected to be achieved.

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      Guidelines
      Tool Mentors