Strategic Analysis for Palantir's Expansion Into the Commercial Sector
Explore the strategic plan for Palantir's expansion into the commercial sector, including situational analysis, business recommendations, implementation strategies, and financial forecasts to achieve sustainability and growth. Key issues like consumer concentration and corporation focus are addressed alongside recommendations to attract new corporate clients via partnerships and maintain government sales while refining the corporate product. The vision is to become a leader in human-driven machine-assisted analysis across industries through a 5-year growth strategy.
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PALANTIR JOHN MOLSON CASE COMPETITION Noxolo Gqada -Situational Analysis Egla Ntumba -Business Analysis Topaz Booysen -Implementation Rashay Makan -Financial Forecasts Plan for XXX, to drive XXX.
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS SITUATIONAL ANALYSIS HIDING IN PLAIN SIGHT GROWTH COMMERCIAL SECTOR COVID EFFECT PALANTIR Government security & other PRODUCT MARKET/INDUSTRY POST-PANDEMIC ? 2
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS HOW WILL PALANTIR EXPAND INTO COMMERCIAL SECTOR TO ACHIEVE SUSTAINABILITY? 3
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS VALUE PROMISE A 5 year growth strategy into the commercial sector by improving access to our product range and attract new commercial clients. 1 2 3 Deliver solutions for everyday problems Deliver $ 6.3B REVENUE in 2026 (40% increase) Deliver Commercial clients contribute 40% REVENUE by 2026 (10% increase) = LEADER IN SPECIALIZED HUMAN DRIVEN MACHINE ASSISTED ANALYSIS - ACROSS INDUSTRIES $ 536 M Profit strategy over 5 years 4
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS KEY ISSUES GOVERNMENT FOCUSSED Majority of consumer base 70% Exposed to risk ! CONSUMER CONCENTRATION CORPORATES ARE LEAN Build own tech Lost clients: Coke, American Express ! CORPORATES ARE PRICE- SENSITIVE LIMITED NON-TECH TEAM Good product focus Poor distribution and industry networking ! ENGINEER-FOCUSSED TEAM 5
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS RECOMMENDATION SUMMARY 1 2 3 ATTRACT NEW CORPORATE CLIENTS VIA PARTNERSHIPS CONTINUE SALES TO GOVERNMENTS DECONSTRUCT CORPORATE PRODUCT: FOUNDRY Expert Existing product Decrease barrier to entry: cost Experts High revenue driver Happy with product Distribution network Corporate partner DO NOT CHANGE ONGOING MEDIUM TERM LONG TERM 6
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS SOFTWARE INDUSTRY OVERVIEW $396.7B Software industry Size INDUSTRY TRENDS Increased spending on software Increased need for data security $56B Commercial sector size GROWTH DRIVERS Evolving customer expectations Consumer lifetime value CORPORATE CUSTOMER NEEDS Information on consumer trends and behaviour Increased revenue per consumer 2.8% CAGR (2021 - 2026) CORPORATE CLIENTS HAVE AN INCREASING NEED FOR SOFTWARE SOLUTIONS 8
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS MARKET SEGMENTATION Governments 11% Households 25% Corporations 30% Corporations control 89% of market Corporations 64% Governments 70% THERE IS AN OPPORTUNITY TO EXPAND INTO THE COMMERCIAL SECTOR 9
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS CORPORATE CUSTOMER OVERVIEW CUSTOMER PROFILE CUSTOMER NEEDS VALUE PROPOSITION Large corporate Access to large data pools Risk averse Efficiency 5 IL security clearance Customer insight Packaged solution Efficiency Cyber data protection Customer insight Value for money THERE IS AN OPPORTUNITY TO OFFER AN ENTRY LEVEL OPTION TO EXISTING TARGET CONSUMER 10
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS IMPACT OF PRICING MISALIGNMENT Separate Solutions Turnkey Solution Analytics platform Analytics platform Interactive data visualisation Interactive data visualisation Lost 30% Predictive analytics Predictive analytics Acquired 30% Geo Intelligence Geo Intelligence THERE IS AN OPPORTUNITY TO DECONSTRUCT OUR EXISTING PRODUCT TO CREATE A LOWER POINT OF ENTRY 11
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS PARTNERSHIP OPPORTUNITY Analytics platform Interactive data visualisation Predictive analytics Geo Intelligence Palantir H H H H Amazon L L L L Software L Qlik M L L Tableau M H FICO L H Keys High (H) Medium (M) Low (L) THERE IS AN OPPORTUNITY TO PARTNER WITH EXISTING COMPETITORS IN NON-COMPETITIVE SEGMENTS 12
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS BUSINESS MODEL ANALYSIS ACQUIRE EXPAND SCALE (1 year) (6 months) (1.5 years) Most value created ACQUIRE EXPAND UPSELL SCALE VENTURE CAPITAL IS THE BEST SOURCE OF QUICK CAPITAL FOR A STARTUP 13
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS ADVANTAGES OF VENTURE CAPITAL FUNDING STRATEGIC GUIDANCE Entrepreneurial guidance on key decisions ADVANTAGES OF VC FUNDING EQUITY OWNERSHIP Skin in the game ACCESS TO MARKET Access to strategic partners/ customers VENTURE CAPITAL IS THE BEST SOURCE OF QUICK CAPITAL FOR A STARTUP 14
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS RECOMMENDATION SUMMARY 1 2 3 ATTRACT NEW COMMERCIAL CLIENTS VIA PARTNERSHIPS CONTINUE SALES TO GOVERNMENTS DECONSTRUCT COMMERCIAL PRODUCT: FOUNDRY Expert Existing product Decrease barrier to entry: cost Experts High revenue driver Happy with FULL TURN-KEY product Distribution network Corporate partner DO NOT CHANGE ONGOING MEDIUM TERM LONG TERM 16
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS RECOMMENDATIONS AND ALTERNATIVES REVENUE DIVERSIFICATION COMMERCIAL VIABILITY: GROWTH CONSUMER NEED: PRICE SENSITIVE TEAM: INTERNAL CAPABILITY CRITERIA: Government campaign: Alt 1 Pay per view Deeper market penetration New product for Alt 2 International expansion Government: Public Healthcare Alt 3 International expansion Diversify: End-consumer B2C Corporate product: Deconstruct Foundry 1 2 Attract new commercial clients 17
SITUATIONAL ANALYSIS 1 BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS RECOMMENDATION 1: CORPORATE PRODUCT SHORT TERM WHY? SELL PRODUCTS AIMED AT CORPORATES EXISTING corporate product Create a RANGE - value for money PRICE SENSITIVITY WILL DROP BTE STRATEGIC DRIVER Value for money -expert product client really needs Short trial period -short period to extract value WHY? Consumer decision making process WHY? BUSINESS MODEL PAY PER MODULE ANNUAL SUBSCRIPTION FEE UPSELL TO FULL TURN-KEY PRODUCT (UP TO $100 million annually) Shorten payment cycle IMPACT: $ 6.3B REVENUE BY 2026 18
SITUATIONAL ANALYSIS RECOMMENDATION 2:ATTRACT NEW COMMERCIAL CLIENTS 2 BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS MEDIUM TERM EXPAND COMMERCIAL CLIENT NETWORK Service corporates in need of product either : Modules ( large-medium size) Full TurnKey solution (large) WHY? Increase access to market HOW: PARTNERSHIPS Corporates require data solutions on cloud based system NEED DATA PARTNER: E.G tableau Cloud based service provider (global) Access to Corporate clients on cloud based systems Non-competing WHY? Commercial client distribution network SELLING DRIVER Partner: Commission incentive, value -add to end consumer WHY? Value-add IMPACT: 40% OF REVENUE DRIVEN BY COMMERCIAL CLIENTS 19
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS 1.1. DECONSTRUCT FOUNDRY INTO 4 KEY COMMERCIAL PRODUCTS FOUNDRY 1 3 2 4 FOUNDRY ANALYTICS FOUNDRY PREDICTIVE FOUNDRY GEO FOUNDRY VISUALISATION LOWER PERCEIVED BARRIER OF ENTRY AND INCREASED TIME TO PURCHASE 21
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS 1.2. UPSELL NEW COMMERCIAL CLIENTS IN TARGETED INDUSTRIES YEAR 1 YEAR 2 YEAR 3 CURRENT ACQUIRE EXPAND SCALE Negative Margin Negative Margin Positive Margin PROPOSED ACQUIRE EXPAND SCALE UPSELL Negative Margin Positive Margin 22
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS 1.2. UPSELL NEW COMMERCIAL CLIENTS IN TARGETED INDUSTRIES Aerospace and defense INDUSTRY CRITERIA Airlines Large market size and growth Value data security and regulation Have strong use/appetite for products Complementary cross-industry data Pharmaceutical and healthcare Supply chain Automative SALES TEAM FOCUS/EXPERIENCE + INCREASE DEPTH OF INDUSTRY DATA = DOMINATE INDUSTRIES 23
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS 1.2. UPSELL NEW COMMERCIAL CLIENTS IN TARGETED INDUSTRIES SALES TEAM ENABLEMENT Sales team expansion Sales team training: Relationship management Product training Comission incentivisation TECH AND DATA ENABLEMENT COLLATERAL Automated maturity triggers In-platform notifications Data management best practices 24
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS 2. ATTRACT NEW COMMERCIAL CLIENTS VIA PARTNERSHIPS PARTNER CRITERIA Assign 10% of sales team to Partner acquisition Low competency in 4 product areas Sizeable product reach Prioritise connections to target partners in recruiting sales members TABLEAU: 1% X 15 000 customers 150 new clients Leverage leadership connections 25
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS IMPLEMENTATION ROLL-OUT PLAN 2022 2023 2024 2025 2026 COSTS: PRODUCT DEVELOPMENT 1.1. PRODUCT DECONSTRUCTION RECRUITMENT 1.1. SALES UPSELLING SALES TRAINING 2. SOFTWARE DISTRIBUTOR AGREEMENTS TARGET ________ $75 Mil 26
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS $75 million investment over 3 years funded via debt facility 28
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS Additional $140 million loss over 5 years 29
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS $536 million profit strategy over 5 years 30
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS KEY RISKS AND MITIGATIONS RISK IMPACT LEVEL POTENTIAL RISK CONTINGENCY PLAN Invest in further sales initiatives Failure to gain technology clients 1 HIGH MEDIUM Product Development 2 Value Proposition Risk PR and Relationship Investment 3 LOW Data Privacy Concerns 31
HOW WILL PALANTIR EXPAND INTO COMMERCIAL SECTOR SUSTAINABLY? COMMERCIAL PRODUCT OFFERING: FOUNDRY RANGE ATTRACT CORPORATE CLIENTS 1 2 3 Deliver solutions for everyday problems Deliver $ 6.3B REVENUE in 2026 (40% increase) Deliver Commercial clients contribute 40% REVENUE by 2026 (10% increase) = LEADER IN SPECIALIZED HUMAN DRIVEN MACHINE ASSISTED ANALYSIS - ACROSS INDUSTRIES $ 536 M Profit strategy over 5 years 33
2022 GSB GROUP 5 | RECOMMENDATIONS 4 | KEY ISSUES 3 | VALUE PROMISE 2 | OWNERS CONUNDRUM Noxolo Gqada Egla Ntumba ANALYSIS Topaz Booysen Rashay Makan Thank you STATE CURRENT
SITUATIONAL ANALYSIS BUSINESS ANALYSIS RECOMMENDATIONS IMPLEMENTATION FINANCIAL FORECASTS SUMMARY OF KEY FINANCIAL DRIVERS BUSINESS MODEL REVENUE DRIVERS XXX XXX XX XXX XXX XX XXX XXX XX XXX XXX XX
