Case Study #7: New Product Launch

Introduction and Background
A client of GlobalWare Solutions is a market leader in visual computing technology. Its graphics and communications processors have broad market reach and are incorporated into a wide variety of computing platforms, including consumer digital-media PCs, enterprise PCs, professional workstations, digital content creation systems, notebook PCs, military navigation systems and video games consoles.

This is the first software product for a mainly hardware driven company and the first direct offering to clients without using third party sales channels. A few key challenges for this release included:

  • The Company did not want to handle the responsibility of paying sales tax or VAT
  • The new product is a low cost product $24.95 (OEM upgrade) and $49.00 (direct sale through try and buy) and the Company needed to provide minimal direct customer support.
  • The Company wanted to leverage it's own download infrastructure as part of the delivery process.
  • Multi-layer upgradability was necessary in order to accommodate different purchase points.

GlobalWare created a custom solution that allowed the Company to achieve their compliance needs in reducing the risks associated with electronic software distribution, in this case with potentially high penalties. GWS' PowerCommerce team rapidly customized our SalesAgent product and added functionality that the client required.

Because the product is going to be used in it's direct and OEM fashion in many venues (including handouts) GlobalWare needed to track multiple buying points. GWS achieved a tracking scheme for reporting royalties by inserting Source Codes into the product wrapper that would report which source provided a successful distribution and conversion of the product. These source codes allowed the Company to obtain channels that could distribute the product with the promise of revenue on the backend. This gave the Company more options for distribution and a greater potential base for revenue development.

GlobalWare also administered the sales tax and VAT taxes burden for the Company. Utilizing a separate merchant account for the Company, GlobalWare created and handled all credit card processing. This solution decreased the Nexus footprint that would have been larger had the Company provided these services themselves. <

Based on the other offerings and technology offered in the market, GlobalWare's PowerCommerce product and its SalesAgent were the only providers in the industry that had the flexibility and capability to meet the needs of the Company in developing this solution. In so doing, the Company launched the product and exceeded all revenue expectation.

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