A template that covers basic elements of product development plan for a sample software product.

1. Product Development Plan
{Author Name}

3. Year 1 Year 2 Year 3 Year 4 Year 5
Sales 2 1 3 4 5
Net Profit
beforeTax
31000$ 251000$ 951500$ 1236520$ 1321450$
Investment 25100$ 99010$ 89010$ 59010$ 29910$
Employment 24 21 7 6 5
Risk 4.3% 2.3% 1.2% 1.2% 1.2%
Executive Summary
This plan is about aTransactions Management System that targets insurance sector
to automate processing, tracking and tracing Incurrence claims.

4. The main objectives of this plan are the following:
1. Make {Your Organization Name} among the top three leaders in the
market who provide automation solutions for insurance sectors.
2. Increase the revenue of {Your Organization Name} by 1854,321$ during 5
years.
3. Strengthen the presence of {Your Organization Name} in the MENA
region.
Objectives

6. Sample eClaim System is a Transactions Management System that is used
primarily for tracking and tracing Incurrence claims across different
departments and sections within one or a group of Incurrence companies.
The system automates such workflows and facilitates transactions’
monitoring and processing.
It also helps in balancing workload as well as managing and evaluating
employees’ performance, among many other benefits. On the other hand,
applicants may use the system to check the status of their
applications/transactions.
Product Definition

7. • Customizable work queues with simplified drag-and-drop workflow
design.
• A personal, client-configurable business decision engine.
• Trend-seeking data analytics and reporting tools.
• Claims portal for accelerated, secured, real-time access to bill review
data.
• Electronic billing and payment processing.
• Quick searches by bill, claim, or provider
• Views of bills waiting for review
• Adjuster authorization of bills
• Productivity tools such as alerts, watchlist, reminders.
Features

8. • Easy-to-use application interface
• Leading-edge technology
• Enhanced value via multiple partnerships
• Scalable application
Non-Functional Features

9. eCliam will provide the target customers with the following benefits:
• Improve Customer Service
• Increase loyalty
• Increase efficiencies
• Save money & time
• Reduce human mistakes
Benefits to Customers

11. 21%
28%23%
15%
13%
Market Segments
Full Line Insurance Insurance Brokers
Property & Casualty Insurance Reinsurance
Life Insurance
Target Market
The Target Market is the insurance sector with more emphasis on the Insurance brokers
and Property & Casualty Insurance segments.

12. The insurance industry - especially in the Middle East - is currently in a low or
no-growth market so the key imperative of this industry is to accelerate
performance for profitable growth through focus on informed interactions,
streamlining operations and delivering enterprise resilience.
As part of the effort of the insurance companies to develop customer-
centric visions that will allow them to retain their customers and grow their
business, there is a need to benefit from embracing IT automation solutions
through:
- Delivering enterprise resilience
- Streamlining operations and improve agility
- Accelerating performance
- Managing and reducing risk through formalizing traceability
Market Needs

13. Insurance companies are operating in a difficult environment. Interest rates are
low, affecting returns on assets under investment, and many consumers are
finding traditional life and/or annuity products hard to afford. Insurance
companies are under pressure to bring new products – such as policies with
lower face value – to market more quickly, and to speed up the underwriting
process to reduce the chances of a new customer withdrawing his or her
application.
In trying to deal with these challenges, however, Insurance companies are
working within the limitations of outdated systems – often a patchwork of legacy
systems stitched together following a series of mergers and acquisitions.The
costs of outright system replacement can be daunting, and customized solutions
can be both expensive and imprecise. However, the benefits of automated
systems for new business and underwriting – in terms of speed, accuracy, cost
reduction and improved service – are compelling, as well.
Under such circumstances, it is not surprising that the software as a service
(SaaS) delivery model is gaining in popularity.The growth of SaaS models for
automated systems might best be described as slow and steady. Recent surveys
have indicated that more than a third of insurance customers currently use some
form of SaaS, and 20 percent plan to adopt such a model within the next 12
months.
MarketTrends

14. • The Market Potential is about 15 deals during the first 5 years with
average of 3 deals per year.
• The demand for SAAS deployment model is expected to increase as it has
the less upfront investment.
Market Potential
0
1
2
3
4
Year 1 Year 2 Year 3 Year 4 Year 5
Deals
SAAS
On-Premisis
Pay-AS-You-Go

15. Marketing Mix

16. Since this type of products requires special focuses on developing long-
lasting relationships with clients, the Marketing Orientation that will
adopted is Relationship Marketing.
The marketing strategy should include branding, customer service training,
community and media relations, social media, newsletters, blogs, referral
programs and frequent buyer incentives.These marketing efforts are
investments in the promise of long-term sales.
Moreover, with such business, acquiring new customers can cost as much as
five times more than retaining current customers. So, the financial payoff to
investing in long-term client relationships becomes clear.
Marketing Orientation

17. Competitive Advantages (current)
{Your Organization Name} already has the needed technical expertise and
resources to develop and deliverVertical Applications and Supporting
Systems.
Competitive Advantages (to be developed)
{Your Organization Name} experts need to do research to build a
comprehensive understanding of the special needs of the insurance sector.
Organizational Analysis

18. • location of offices: USA
• Online presences: {Web Site}
• Key personalities:
• Last event: N/A
• Ownership: {Owner}
• Organizational structure: Matrix-based
• Products: Business process management and Intelligent data capture.
• Patents and licenses: N/A
• Quality control conformance: ISO 9000
Competitors Profiles - {Competitor 1}

19. • location of offices: USA
• Online presences: {Web Site}
• Key personalities: N/A
• Last event: N/A
• Ownership: N/A
• Organizational structure: Matrix-based
• Products: Business process management and Intelligent data capture.
• Patents and licenses: N/A
• Quality control conformance: CMMI
Competitors Profiles - {Competitor 2}

20. eClaim {Product1} {Product2}
Strengths
• Expertise already
developed for
similar products
• Located in the gulf
• Strong technical
support teams.
• The product is very
user friendly
Weaknesses
• Rapid change in
market trends
• The product is
flexible enough to
be integrated with
backend systems
• The product does
not support all
types of claims
Competitive Analysis 1/2

21. Competitive Analysis 2/2
eClaim {Product1} {Product2}
Cost 2 2 2
Technology 3 3 3
Sales Force 3 2 3
Distribution 2 2 2
Pricing 4 3 2
Financial Strength 4 3 3
Promotion/Advertising 3 3 3
Location 4 1 1
Product/Service Quality 3 1 2
Total 28 20 21
Scale:
4 = Best 3 = Good 2 = Fair 1 =Poor

22. Feature eClaim {Product1} {Product2}
User friendly   
Notification Engine   
Customized Workflow
Module
  
BYOD   
Built-in document
scanning and data
entry application
  
Features Comparison

23. 87%
13%
{Competitor 1}
{Competitor 2}
Current Market Shares

24. 0
10
20
30
40
50
60
70
80
90
100
Year 1 Year 2 Year 3 Year 4 Year 5
{Your Organization
Name}
{Competitor 1}
{Competitor 2}
Estimated Share

26. The action plan is detailed in a separate file.
Action Plan

27. Department/Function Level Head count
Management, administration & business
development
Senior 2
Secretary 1
R&D & Implementation Senior 3
Junior 6
QA 3
Finance & Sales Senior 4
Junior 4
Marketing & Research Senior 2
Junior 2
Operations & Support Senior 1
Junior 2
Human Resources

28. Position Count Date
Senior Software developer (web) 1 1/1/2017
Junior Software developer (WCF) 2 1/3/2017
Financial controller 1 1/8/2017
Marketing Specialist (Media) 2 1/9/2016
Staffing Plan
The below table highlights the additional staffing requirements

29. Performance Area Performance
Measures
Target Time Frame
Financial
Performance
Financial targets are met
quarterly
Revenue of 120654 Year 2
Revenue of 321654 Year 3
Revenue of 521054 Year 5
Customer and
Market Performance
Continuous collaboration
with the customers
Establish long-term
relationship with the
customers
Customer retention
Evaluated yearly
Internal Efficiency
and Effectiveness
• Deadlines are
respected
Max usage of the
resources
Evaluated yearly
LongTerm
Development and
Innovation
• On time delivery
• Quality of
deliverables
Provide a complete a
bug-free product that
satisfies the customer
needs
6 months
Performance Objectives

31. Solution Architecture

32. The product will be build using the following technical resources:
• Latest .NET framework
• C# language
• Latest SQL server for system data
• Fail-over Clustering
Technical Resources

34. The following pricing models are supported:
1. On-Premises model: Traditional perpetual licensed software deployed at customer's
facilities.
• Basic Setup: 123405 $
• Annual maintenance: 10000$
• Branch Setup: 5200$
2. Subscription SAAS model : Combines a software subscription model with cloud
deployment.
• Basic Setup: 4405 $
• Annual fees: 35055$
• Branch Setup: 1800$
3. Pay-as-you-go model : Customers pay for actual usage based on transactional metrics.
• Basic Setup: 9405 $
• Branch Setup: 1800$
• Transaction rate: 0.2$ to 0.9$
Pricing Strategy

36. The product is projected to show profitability (breakeven) when any of the
following deals is made:
1. 2.5 deals from On-Premises model
2. Or 6 deals from Subscription SAAS model (after 14 months)
3. Or 5.2 deals from Pay-as-you-go model (with 5410 transaction per
month)
Financial/Business Cases

37. Pre-Launch Post-Launch
6 months Day 0 Year 1 Year 5
Revenue Forecast 0 $ 0 $ 92000 $ 2358700 $
Net Revenue 0 $ 0 $ 23050 $ 215400 $
Development Cost 0 $ 250250 $ 50000 $ 7121 $
Operations Cost 0 $ 22870 $ 19400 $ 18400 $
Marketing&Sales
Cost
5000 $ 22620 $ 7200 $ 7620 $
Financial Projections

38. Year 1 Year 2 Year 3 Year 4 Year 5
Dubai 1 0 1 0 0
Kuwait 0 0 0 0 1
Egypt 0 0 0 0 2
Turkey 0 0 1 1 0
Tunisia 1 1 1 0 0
KSA 1 2 0 0 0
Sales Distribution (Deals)