Software Solutions (PTY) Ltd T HIS S O FTWARE P ROPOSAL I S A NARRATIVE DESCRIPTIO N O F T H E SERVICE S O FTWARE SOLUTIONS (PTY) LTD H A S TO O FFER. T H I S P ROPOSAL PUTS T H E B UYER'S REQUIREMENTS I N A C O NTEXT THAT FAVOURS THE S E L L E RS P RODUCTS A N D S E RVICES, A ND E DUCATES T H E B UY E R A B O UT T H E C A PABIL I T I E S O F THE S E L L E R I N S A T I S FYING THEIR NEE DS: SOFTWARE PROPOSAL BY SOFTWARE SOLUTIONS (PTY) LTD. FOR ALL OEMS (ORIGENAL EQUIPMENT MANUFACTURERS) WITHIN THE BOARDERS OF SOUTH AFRICA. 2013/02/15 Page 1 of 7
Software Solutions (PTY) Ltd TABLE OF CONTENTS 1. Introduction/Background... 3 2. Company Profile... 3 3. software Version 2.1 (Current)... 3 4. software Version 3 (In Development)... 5 5. Acceptance Criteria... 5 6. Period of Performance... 5 7. Ownership of Intellectual Property... 5 8. Confidentiality... 5 9. Competition Law... 5 10. Advantages... 6 11. Costs & Payments Terms... 7 12. Conclusion... 7 Page 2 of 7
Software Solutions (PTY) Ltd 1. INTRODUCTION/BACKGROUND The software is developed to offer all subscribed OEMs access to data, allowing comparisons for market research to promote a competitive industry. All this is done from an independent unbiased source using an industry standard without displaying any exchange of prices or market positions. The aim was to develop a system that would help OEM s improve their product s price and quality; thus making the consumer the main beneficiary. 2. COMPANY PROFILE Company Details Contact Person: Fax: Cell: E-Mail: Website: Software Solutions (PTY) Ltd PO. Box 41189, Moreletariff Pretoria, Gauteng, 0044 Mr Gerhard Coetzer (086)510-2374 (082)895-6473 gerhard@mapo-sa.com Software Solutions (Pty) Ltd, is a company duly registered in terms of the laws of South Africa, herein represented by Gerhard Coetzer, duly authorized thereto in his capacity as a member. Founded in 1999 by Mr Gerhard Coetzer under X-Africa Info, the company started with small web-development and PC sales. At that time Mr Gerhard Coetzer was also a free-lance driver instructor of many of the major OEM's, and with many launches of new vehicles and motorcycles came many hours of market research on models and their competitors. He quickly identified the problems with the compiling of these exercises and started laying out the foundation of. 3. SOFTWARE VERSION 2.1 (CURRENT) All OEM s are conducting market research and know the importance of getting the correct information within budget. The system was developed with that in mind, keeping the subscription cost in budget and provides a more accurate and faster system. Not only that! Subscribing OEMs has unlimited use in that they are not limited to once-off comparison research. You can do as many research calculations as you want, on as many of your models with as many competitors as you want, at no additional cost. The system is unique due to s innovative created internet based software that would enable, for the first time, the comparison of prices of similar automotive parts for different makes of motor vehicles. This information can then be used to display the manufacturers market position accordance to its competitors. Page 3 of 7
Software Solutions (PTY) Ltd The software does not share information, no prices or market positions are shared between motor vehicle manufacturers. Each motor vehicle manufacturers can only view their own price and market position in accordance to the average market price of the selected competitors. The system consists of one central database with all OEM s information, subscribing OEMs can then compile accurate comparisons/market research within just a few seconds. The participation of manufacturers is crucial in the concept s success. has therefore made it our main goal to develop a good professional relationship with several manufacturers to ensure market requirements would be met by our software concept. has, accordingly, prepared a draft statement of work agreement (Contract), which it already entered into with the major motor vehicle manufacturers. is CHEAPER, BETTER, FASTER and MORE ACCURATE!!! And ensures client/data confidentiality and good service whilst complying with the provisions stated in the Competition Act. Page 4 of 7
Software Solutions (PTY) Ltd 4. SOFTWARE VERSION 3 (IN DEVELOPMENT) The development of Version 3 of the Software is in process and we are looking to launch in April 2013. The new and more comprehensive Version 3 will include: Parts Basket Comparisons Service Cost Calculations and Comparisons. Maintenance Cost Calculation and Comparisons. Cost of Operation Calculation and Comparisons. And much more.!!!- Only subscribing OEMs will enjoy free upgrades. New subscribers after a new version is launched will see increased costs. 5. ACCEPTANCE CRITERIA The software is developed and designed for OEMs as market research tool. Due to the nature of the data and the confidentiality thereof, the system is not available to any individual or company. 6. PERIOD OF PERFORMANCE The agreement shall commence on the effective date and shall continue indefinitely thereafter, until terminated by either party for any reason whatsoever, with at least 6 (six) months written notice to the other party to that effect. 7. OWNERSHIP OF INTELLECTUAL PROPERTY is, and remains the owner of the Software and all titles, rights and interests in the Software; The License permits the OEM to make use of the Software on more than one computer system, as long as the allocated License will not be used on more than one computer system simultaneously. 8. CONFIDENTIALITY All OEM have sign confidentiality agreements before any negotiations start. Software Solutions value the importance if this and are willing to comply with keeping OEM s data confidential. 9. COMPETITION LAW The agreement comply with all laws and regulations pertaining to the contract, including without limitation the Competition's Act. Page 5 of 7
Software Solutions (PTY) Ltd 10. ADVANTAGES The software was developed to be very unique, the system needed to be better, faster and more cost effective. During the development stages we first identified the current problems one encounters when conducting these market research exercises. We found the following problems and developed the following solutions: Current methods of compiling comparisons is very time consuming and can take from 6-8 weeks for research to be completed. A comparison will take a couple of seconds with software. Outsource company comparison data will be 6-8 weeks old at publication. updates all the prices on the system with the latest price file from the OEM. Outsource company comparison publication is a once-off exercise. They have no solution if data is required at short notice. is updated and available online 24/7. Outsource company s quote for a once-off comparison came to R75,000 excluding VAT. Other companies quoted R35,000 per month for a min contract of 2 years. subscription is a fraction of these costs and offers unlimited access for accurate comparisons at a monthly subscription that is affordable for even the smallest of Manufacturers. Outsource companies gather information from various sources. (Prices may vary from sources). This may cause errors in the comparison that may misrepresent a brand. calculates your market position using the recommended retail price as listed from the Manufacturer's mainframe price tape. Zero error margin! Third party may be bias with comparison result. has a fixed standard baskets and the recommended retail price is used for all OEM's. Parts cannot be removed from baskets and cannot make changes to any OEM's prices. Price files are imported and not typed (No typing errors). Outsource companies do not compare apples-with-apples. The system is designed so that no Manufacturer is misrepresented. This is done by comparing all sections of a vehicle with that of its competitor. The basket design and the "mouse-over" descriptions of the parts baskets make it very Page 6 of 7
Software Solutions (PTY) Ltd clear on what parts are being used for the study. Outsource companies calculate comparisons only on a few (50-70) parts basket items. software forms 12 baskets with 30-40 parts per basket, which provides a much larger spectrum of parts to truly calculate a OEM's position in the market. Outsource companies does not calculate "cost of operations", "service and maintenance costs". If they do the price is astronomically higher. The software includes the calculation of "cost of operations" per vehicle and allows for comparisons between competitors. If you as an OEM had to source the information of the other 5 or 6 competitors, it is very time consuming. In the software the OEM's work is reduced by 75%-80% as the subscribing OEM only has to upload their information, as the other subscribing OEM's information is already on the system. 11. Costs & Payments Terms For performing its obligations and/or services in terms of the agreement from subscribing to Phase I of the software Version 2; the OEM shall remunerate and make the following payments to : an initial payment, of R 25,000-00. (Twenty Five Thousand Rand); per OEM / Group Company and a monthly payment of R 7,500-00 (Seven Thousand Five Hundred Rand), which monthly payment includes the subscription to Phase I (one) of the software; per OEM / Manufacturer and a monthly payment of R 2,500-00 (Two Thousand Five Hundred Rand), which monthly payment includes the subscription to Phase I (one) of the software; per User of the Software and an addition fee will be charged for the import or transferring of data from another format into the Software database. This will be quoted on an hourly rate and per OEM; and!!- Please note that these prices are applicable to Version 2.1 of the Software. Version 3 is due for launch in April 2013 and subscription fees will increase for OEM s not subscribed to. Only subscribing OEMs will enjoy free upgrades. 12. CONCLUSION It is clear that the system is more cost effective than any other system or method of comparisons in the market. The system is by far more accurate and possesses major advantages when it comes to time and cost effectiveness. Page 7 of 7