The BSG Business Case Model

BSG views all fundamental research as being part of a process of developing and analyzing a Business Case. The Business Case methodology can be applied to the analysis of, for example: a market or market segment, a company, a technology or new product area, or other similar aspects of the industry. The Model works through a series of disciplined steps to drive to the best business conclusion. These steps are shown in the following diagram:

BSG provides a systematic analysis of the business case in each of the critical potential growth areas, which cut across the universes of digital media, telecom, wireless, IP and cable/satellite. This involves examining:

1) The Revenue Model – who is the customer base, who pays now, who is going to pay for the service or product in the future, how much.

2) Market Forecasts are evaluated to determine whether they are realistic and use a plausible model.

3) The Value Chain is identified; who are the stakeholders in the business, how is this changing, what are the expectations of established and new players.

4) Profit Economics are then estimated to determine if there is a likely adequate return based on expected investment levels and the expectations of the various stakeholders.

5) Competitive Dynamics are weighed to determine ease of entry, likely participants.

6) Inflection Points are defined – the level of volume and revenues needed to make the service or product a success, a major success.

7) Metrics for evaluating this service or product category are defined.

8) Risks to the model are evaluated including market, competitive, technological, financial, legal/regulatory and exogenous risks.

9) Conclusions are presented as a succinct summary of the likely future for the market segment plus strategies for different participants to optimize their position.

Subscribers to the each of the four BSG programs receive detailed reports, according to each program's schedule. Each one is prepared in the format of a Business Case for the area under study. Each one includes a Key Factors Assessment Model of the area being analyzed as well as a Risk Weighting Model for each area. These Models take into account the fact that there are distinctive issues presented by each area. The senior managers of BSG, Al Boschulte and Victor Schnee participate in the research, preparation and editing of each report.

Expertise, The BSG Advantage

In addition to its innovative methodology, BSG also combines a level of expertise that is unchallenged in the industry. Knowing a lot about technology, or marketing, or specific product segments is not enough today. Today all research must ultimately focus on How Value Creation Occurs.

BSG is unique in that it has been formed by two of the most experienced experts in the history of the telecommunications/wireless/media industry – Al Boschulte, the former CEO of NYNEX Mobile (now part of Verizon Wireless) and Victor Schnee, founder of Probe Research and a profound forecaster of industry change over two decades.