SATCO: Framing the Return on Investment
SATCO Satellite Network Quantifies ROI for Major Clients and Prospects
SATCO is a satellite company with the potential to radically improve productivity, efficiency, and output in major sectors of global economies. By working with Bullet Point Network (BPN) to research various national economic, political, and social goals, SATCO was able to quantify their customer’s benefits after a full adoption of their proprietary solution.
SATCO (anonymized here for client confidentiality as SATCO) is a satellite company with a meaningfully different constellation architecture and analytics platform. With a bird’s-eye view that allows satellites to see large areas of the Earth at one time, SATCO’s technology enables users to collect data more efficiently than land-based instruments and add in decision-grade analytics.
The founder of SATCO (“Mr. Smith”) was exclusively focused on building his team, cultivating relationships with key decision makers, and overseeing a multi-year engineering and build program. Working round the clock on these mission-critical tasks left little time to research, model, and create impactful customer presentations.
SATCO’s business plan is ambitious: they plan to make decision-grade analytics available in real time based on its $10 billion satellite network and proprietary algorithms.
In order to attract initial clients and capital providers, SATCO needed to go beyond technical proof: They needed a credible third party to help quantify the customer benefits arising from the full adoption of their revolutionary satellite monitoring and analytics solution.
Key Challenges for bpn
Estimate the ROI from various applications by mapping detailed operational results to a logical economic model.
Raise the bar of SATCO’s analytical framework.
Architect a presentation.
Identify key drivers of potential impact, including commercial applications.
Leverage a combination of existing data and third-party research.
Build credible scenarios around a baseline economic model.
SATCO’s primary goal was to zero in on the economic impact their network could deliver, and demonstrate this to the prime minister and key cabinet-level officials of a country in Asia (denoted as Country A). With publically-communicated long-term objectives and goals, Country A emphasized high productivity “S-curve” industries, which was a key source when BPN constructed the SATCO models. To quantify the impact of SATCO’s technology, BPN completed a number of steps, including:
Employ the BPN project team and SAAS platform to research and model SATCO’s initial six prospective strategic clients: governments, agencies, departments of governments, insurance companies, banks, and other corporations.
Produce an integrated strategic model to credibly quantify a range of opportunities arising from the adoption of SATCO’s solution — such as GDP growth, labor productivity enhancements, safety, and security improvements, as well as other economic and quality of life metrics.
Make its team and technology available to research, model, produce, and deliver a polished final product in both cloud-based interactive presentations and PowerPoint formats
Provides analysis, advice, and the interactive presentations SATCO can use to enhance its commercial decision-making, share with prospects via a secure SaaS link, and incorporate into its overall strategic client strategy.
Identify key milestones across multiple horizons, forecasting 10th, 50th, and 90th percentiles.
In collaboration with the SATCO team, BPN honed in on the key drivers of the target market. Using relevant facts, including soft insights and hard data sets, the BPN team identified the main subsegments of the economy with credible scenarios to be supported by evidence for key drivers, storing them in BPN’s graph database with links to a secure password protected data room. BPN mapped the SATCO subsegment impact to understandable scenarios around three World Bank super-segments: agriculture, manufacturing, and services.
BPN zeroed in on national goals from Country A’s public plan including social well-being and human values, economic prosperity, border control, and food security. BPN quantified each goal and forecasted scenarios on how SATCO would impact each, including quantifying:
Economic prosperity: real GDP per capita up 200% by 2032
Social well-being: social disparity (Gini) from bottom ⅓ to top ⅓ of nations
Human development: Human Development Index (HDI) from 0.74 to 0.80
Environment: greenhouse gas (GHG) down 20% by 2030
Security: Global Terrorism Index (GTI) from top 10% (worst) to bottom 25% (best)
In addition, BPN created a framework for monitoring key drivers, tracking milestones, supporting scenarios with credible logic, and highlighting the ROI potential. Based on these fundamental drivers, credible research and rigorous analysis, BPN built the strategic model, driving everything to integrated economic models with 100 cases and different horizons with varied assumed adoption rates.
Throughout this process, there were two main takeaways:
A strategic partnership with SATCO maximized the odds of success for many of Country A’s public goals, including its overall long-term GDP per capita goal by promoting greater productivity and innovation.
BPN quantified each potential benefit across a range of scenarios, including identifying the key performance indicators (KPIs) to having SATCO execute clearly on its forecasted goals to deliver real results for Country A.
Key drivers, ranked by conviction
For all of SATCO’s client engagements, the final BPN output included a white-labeled presentation for the team to present to the target ministry. In addition, the BPN team produced interactive, live charts for SATCO, including the following key components: key drivers, macroeconomic drivers, long-term GDP, and national financial and operational KPIs.
With management, BPN:
Determined Country A’s upcoming milestones and plans.
Helped SATCO and its customers have a more complete understanding of the key drivers, the range of resulting scenarios, risks, and probable outcomes.
Gave all parties use to a common language and framework for tracking milestones and considering future outcomes.
Delivered a process towards clear understanding, with upsides, downsides, and various potential future paths and outcomes.
Improved probabilistic decision-making by providing expert views on key drivers supported by specific evidence.
Below are selected charts from BPN’s presentation to Country A’s prime minister and key cabinet officials. BPN zeroed in on the national goal of $15k in GDP per capita and ran scenarios based on its impact (e.g. rate of adoption) on key drivers of GDP growth.
SATCO MAKES $15K PER CAPITA GOAL MUCH MORE LIKELY
ENABLE WORKERS TO MOVE TO HIGHER GDP / INDUSTRIES
SATCO LEAPFROGS THE GDP/FARMER PRODUCTIVITY GAP
Since the first presentation for Country A, BPN has continued to monitor every milestone of each ministry and add updated evidence to SATCO’s strategic model with the BPN Briefing. With the goal to provide ongoing monitoring and advice to SATCO, the BPN Briefing systemically monitors progress toward relevant milestones and adds financial analysis and capital markets judgment to SATCO’s operating market knowledge. With support to SATCO’s team, strategic partners, and approved third parties with continued updates, BPN enhanced the company’s capability for more successful customer pitches.
With BPN, SATCO was able to focus on developing its transformational solution and close strategic customers. Using BPN analysis, SATCO was able to clearly convey the potential ROI of adopting its solution. In addition, BPN helped focus the discussion by asking the right questions, provide value-added research and analysis, and enhance the sophistication and credibility of SATCO’s pitch.
Today, in addition to modeling ROI for additional strategic clients, BPN continues to support SATCO with ongoing advice and assistance on modeling key drivers, monitoring macroeconomic developments in its target markets, and identifying compelling ways to attack new additional target prospects.