Entrepreneurship & New Ventures – EPR 511

Final Project

Human Resources Software Company

Done by:

XXXXX

XXX

Submitted to:

XXX

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Table of Content

Abstract ………………………………………………………………………………………………………………….. 3

Introduction ……………………………………………………………………………………………………………. 4

Company profile …………………………………………………………………………………………………….. 7

About us: ……………………………………………………………………………………………………………………….. 7
Our Mission: …………………………………………………………………………………………………………………………………………….. 7
Our Vision: ……………………………………………………………………………………………………………………………………………….. 7
Values: ………………………………………………………………………………………………………………………………………………………. 7

The Strategist of the project ……………………………………………………………………………………. 9

Opportunity Recognition and the Opportunity Assessment Plan …………………………… 9

Opportunity checklist: ………………………………………………………………………………………….. 18

The Business Model Canvas …………………………………………………………………………………. 19

Our packages are: ………………………………………………………………………………………………… 25

Actions framework (Eliminate, Reduce, Rise and Create)……………………………………. 29

Feasibility Analysis ………………………………………………………………………………………………. 30

Financial Feasibility:…………………………………………………………………………………………………. 31

Conclusion ……………………………………………………………………………………………………………. 43

References …………………………………………………………………………………………………………….. 44

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Abstract

Three co-founders combining their professional and educational skills to form a business

startup of Human Resource Software Company. According to the development of technology

and the new Saudi Arabia‘s vision of 2030, it helps the companies to look for improvements

and challenges to enter the global market. Nowadays most companies look to eliminate the

waste specially by decreasing the expenses as much as they can. The future innovation in

technology will eliminate various jobs in market, and one of the jobs eliminated will be

human resource jobs because companies will depend more in technology than staff of

employees. Our objective is to give our clients all Human Resources services that make them

successful. Our services will give the clients the right way to compete on the global market

because our employees have an experience and knowledge of the trends in global market and

we will fulfill that need with developing unique resources to makes our services more

professional. The main objective of our project is to make the local companies compete on

the global market and be the leader of Human Resources software services in Saudi Arabia.

We choose this project because we researched for the demand of a need of HR software in

the market of KSA by providing service to the employees saving their cost and time.

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Introduction

• What Is Entrepreneurship?

Developing a HR Software which will be focused on creating a workplace that

complies with government regulations for compliance, safety, and health providing

legal protection for your company. Regulations changes often by the government,

which is where a dedicated HR software company team can help ensure you‘re in

compliance with government laws.

• Corporate Entrepreneurship

Corporate entrepreneurship involves vast business structure which is followed based

on the hierarchy of the business organization.

• Stages to Establish Startups Firms

1. Concept research

2. Detail analysis of market

3. Feasibility study

4. Creating and establishing plan

5. Starting up the business

• Factors Influencing an Entrepreneur

Economic factors, Political Factors, Social factors, Geographical factors

• Creativity and the Business Idea

It generally involves creating the human resource requirement and need in the

domestic market and standing based on the need and demand of the market.

• Trends

Personalization, Development of user-friendly software, Hiring professionals,

implementation and generation

• Sources of New Ideas

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Each day new rules and regulations are implemented by the MOL thus generating the

idea by providing the required service is very important to keep the track in the

market for the HR needs.

• Opportunity Assessment Plan

It is a plan in which the opportunities are found and the implementation is done based

on the business model.

• Strategy & Innovation

The software technology will help HR departments. Human Resource Information

Systems to track employee time, recruit new employees, manage paychecks and

benefits, automate administrative tasks, track compliance, keep records, and much

more. However. HRSC will have all the features that are required to be part of Saudi

Labor market and it doesn‘t mean your company needs to spend the extra cash to

purchase everything. Your HR can take some services if he feels that work is

overloaded for him.

• Blue Ocean Strategy

Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open

up a new market space and create new demand. Blue ocean strategy will help Human

resource Software Company to expand and grab the customers in the market. As this

strategy is basically about creating and capturing uncontested market space, thereby

making the competition irrelevant. Basically, Human resource Software Company

will create the desire and demand for the Human resource as already the market is

facing this issue because of lack of professionalism. So, it will help Human resource

Software Company to capture the market as it will be the innovation which will be

solving the problems of the companies in HR. The blue ocean strategy is based on the

view that market boundaries and industry structure are not using the given Human

Resource plans and it can be reconstructed by the actions and beliefs of the innovative

players in the market. In blue oceans, Human resource Software Company will create

the demand rather than following old process. There is ample of opportunity for the

growth of Human resource Software Company that is both profitable and rapid. The

key to Human resource software business success is to define the terms of

competition and move into the “blue ocean,” where the space for HR tools are for

Human resources only. The goal of these strategies is not to beat the competition, but

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to make the competition irrelevant so that HR can not only benefit but also expands

its areas of operations.

Traditional Human Resource Human Resource software Company

Low System adoption

High cost

Made from Firms own strategy

Involved Less numbers of Labor

Need Time

Takes more days to solve

Simplifying the work on System

Low cost

Works on Domestic Requirement

Involves more numbers labor

Informs about time

More work in less time

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Company profile

About us:

We aim to provide services for local and multinational, small and medium size companies

with online services. Our business includes dealing with companies by providing services

such as; hiring, contract, training, attendants, terminations, transfers of sponsorship,

performance appraisal services, rewards and benefits, compensation and planning with

policies and procedures.

Our Mission:

―Be a leader by providing excellent HR software services to customers to become the global

king in the Human Resources software services industry.‖

Our Vision:

To become the leading HR software services company offering word class solutions.

Values:

 Clients

Our priority is to satisfy our clients by providing solution in HR needs with affordable

prices.

 Honesty

To be truthful and trustworthy in all types of business dealings.

 Integrity

We act ethically and professionally.

 Passion

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We are energetic and driven to do the best we can for our clients

 Partnership

We add value to our client’s businesses and establish long relationships based on trust

and respect.

 Proactive: Whether you manage schedule workers or staff at a medium size or small

company, HR Software company saves your time, money and effort. Support service

for small businesses.

 Innovation: The world of work is changing at an un expected rate. The question

before HR professionals is not whether they should adapt to these changes or follows

with the old methods of HR strategy, to keep pace with the needs of the business HR

software company is born. We are prepared to take hold of the changes and

innovations into the future.

 Capability: We have the skills, ability, aptitude and knowledge which you as

customers look for in relation to the job. We know that lack of capability will lead to

unsatisfactory HR performance which in turn is likely to cause problems for both

managers and colleagues. We have the capability to solve these problems. In HR your

staff might be underperforming due to overload we give support to them to improve

to the required standard of competence. Our policies are to set commitment and

responsibilities in all HR area and provide you with information and guidance on how

to solve this HR issues.

 Development: We understand that Human Resource and Learning are the part of a

healthy culture in professional growth, and working of organization. We help

support HR and learning staff in their critical roles by providing training, consulting,

and guiding them in this area. We connect with your teams in HR and learning so as

to create a development to connect and post issues for real-time solutions.

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The Strategist of the project

 The company innovation space:

1) The competitive services presently available filling this need and their feature and

prices: (Radical doing something different) what makes the company different

from others is it will provide Human resource solutions to the small and medium

sized companies with the human resource planning and service. It will not only be

limited to companies but also client who are actually working in HR in their

respective firm by making their work load less and giving or helping them to

create efficiency in working.

2) The companies in the service market space and the unique selling proposition of

this service: There are some in the domestic market that provide this kind of

services but we are the only company that provides packages with suitable price

for startup companies. The price we offer includes all services that come in HR

whereas the other companies do the work of outsourcing only. We have our own

software which will guide the person using the step by step work to make the

work easier for them.

Opportunity Recognition and the Opportunity Assessment Plan

1. The major section (Market need filled, social condition underlining the market need,

any data available to describe the market need, the size, trends and characteristics of

the domestic market, the growth rate of the market)

HR in Saudi Arabia is evolving at a fast rate to keep up with the global market trends

and improvement in the local digital transformation that is taking place with the

introduction of vision 2030. The country‘s educated and youthful workforce is

accepting and operating well with new digital transformation journey by observing

the changes in the international. Attracting, engaging, developing and retaining talent

is reshaping the current Human Resource position, role and expectation in the

kingdom of Saudi Arabia. The following data show the need of HR requirement in the

domestic market.

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The above data shows the country has 54.5% of the youth group which will be in the

employment sector. Thus, creating a demand and need of the HRS for different types

of firms.

The Labor Market results for Q3, 2018 showed that total number of employees

reached 12,688,042 individuals, out of which the private sector employed 70 percent

in the domestic market.

The illiteracy rate in the Kingdom of Saudi Arabia was 60 percent in 1972, but in

2018, the illiteracy rate was less than 5.6 percent.

Thus, from the data it can be said that the youthful society, educated talent and a

nationwide transformation will influence HR trends in KSA.

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The data collected by KPMG helps us in formulating or finding that will there be

demand for our company service or not?

The above data shows that 63% of the human resource position holders of the firms

agree that they are initiated with the new changes in the government rules and

regulations where as 42% accepts that they cannot do the tasks which are to be

followed by the company as per MOL rules.

It can be seen that 60% of the HR managers are not able to do their tasks because of

the required capability or skills it means that 60% only have degrees but no practical

experience of the HR work.60% cannot do HR tasks related to IT or they lack

computer skills. 33% are not able to accept the exposure in their work place. So, these

findings show us that business will need Human resource software company to take

their service which will cover up their areas of lankiness. The Chart below shows the

Perceived value of HR capabilities to the enterprise, top five Saudi Arabia vs Global

(in %)

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.

Human resource is now required at every level of the organization and play a key role

in top management decision making. By introducing Human resource software, the

managers will find ways to cut costs and increase service by efficiency.

2. Minor section:

 What is exciting about this opportunity?

Organizations in Saudi Arabia are facing significant challenges especially due to

continuous changes in the external environmental factors. Technological,

economical, demographical and political factors are affecting how organizations

operate especially in Human resource department. In responding to the external

challenges, Human resource Software Company will take measures particularly

related to workforce to adapt to change and minimize the effects on the small and

medium sized business organizations.

 How this Environment trend effect our business:

 Economic trend:

The new Vision of Saudi Arabia 2030 will increase the competitions between local

companies because of being under global standards. Nowadays. Saudi Arabia is changing

to become beyond oil, and by this changing the country will depend more on technology,

so the companies need to apply HR software systems to eliminate their expenses. Our

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clients will have a great human resource management services packages that will increase

their HR performance by an excellent price with high quality.

 Social trends:

With the changes taking place in the social trend of the kingdom, the human resource

management by firms also needs to change. The women are now working shoulder to

shoulder with females in all the areas of the business structure. Our company human

resource software does not do any discrimination with gender and is keen on simplifying

the task for both males and females. People are more willing to use social media to

cooperatives and with all the introduction of new services in the market. Using social

media and being updatable will help us to attract clients. Being a part social

responsibility for example; volunteering and events will increase the trust between us and

the clients. Helping the companies is one of our goals to have a successful company.

 Technological advances:

As we wrote on the economic trends that Saudi Arabia now is changing and the new

vision is helping us to become a global competitor. The technology in Saudi Arabia is

updateable and most of the companies now are eliminating their expenses and depending

more in technology than human. So our company will afford the clients with new and

updatable services. For example, using training program through online class system.

Registered via mobile application. Using Cloud system to protect the data. All this

process will Save time and money.

 Political and regulatory changes:

The Ministry of labor has changed the old laws and created new changes in the

employment regulations which are affecting a lot of the companies. Most of the

companies now are eliminating their staffs so that they meet the Saudization laws in their

company‘s size and number of employments. Also, the taxation system is affecting the

savings of company as they have been imposed with collection of 5% VAT and with this

the effect is seen on medium and small size companies. Our services will help those

companies to get their work successfully done without any extra payment for extra

employees.

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 How does the service idea fit into the background and experience of the management

team?

The Professional HR teams of the company have a full knowledge and background of

human resource management. The co-founders are graduates of human resource

bachelor‘s degree program and they have a master in business administration which is

specialized with HR, so they have gained vast experience and with that a knowledge of

the business, they will manage and organize their work. They are able to improve their

business and they have the ability to solve their problems. The company idea is fitting the

co-founder human resource knowledge.

 What business skills and experience are present and needed?

The business skills that the company need are as follows:

Human recourse skills

MIS skills

Management skills

Organizing skills

 Is there someone who has these needed skills and experience?

As co-founders we have most of these skills. Our service includes hiring a management

information system which will combine a team of employees to design the packages of

services for us. One of the co-founders is a finance graduate and she will do the financial

plan and how to have a finance system on the company. Also, we will hire a manager

who has a management and organizing skills to help us on managing our company to

achieve our goals.

 What are the successful steps to launch the business? (Planning, Organizing, Staffing,

Directing and controlling)

Planning: It is the basic function of Human Resource management. Planning helps with

finding out a future course of action & deciding in advance the most appropriate course of

actions for achievement of pre-determined goals. Planning is determination of courses of

action to achieve desired business goals. planning is a systematic thinking about ways &

means for accomplishment of human resource management.

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Organizing: Human resource software will bring together physical, financial and

productive relationship amongst different size of businesses for achievement of HR

goals. To organize in Human Resource Software Company, it involves determining &

providing human and non-human resources to the organizational structure.

Organizing involves:

 Identification of Human Resource activities.

 Classification of grouping those activities in different groups.

 Assigning of tasks.

 Delegation of authority and responsibility to the staff.

 Coordinating in delegations.

Staffing: Staffing involves hiring of proper and qualified employee for the Human

Resource software so that the main aim and objective is established. The main

purpose of staffing is to put right man on job Staffing involves:

 Manpower Planning (estimating man power and to choose the person and

giving the right place)

 Recruitment, Selection & Placement.

 Training & Development.

 Remuneration.

 Performance Appraisal.

 Promotions & Transfer.

Directing: Directing is guiding the work in from the first process to the last. As

without guidance no work can be successful. Direction is that aspect of management

which deals directly with influencing, guiding, supervising, motivating sub-ordinate

for the achievement of Human Resource software goals. Direction involves

supervision of staff, Motivation, leadership and communication.

Supervision- implies overseeing the work of subordinates by HR professionals. It is

the act of watching & directing how the work is done by the HR staff.

Motivation- it involves inspiring, stimulating and encouraging the sub-ordinates with

monetary, non-monetary incentives.

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Leadership- it is the process by which HR manager guides and influences the work of

subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from

one person to another. Human resource Software Company will communicate so that

things work as per the service required.

Controlling: is measurement of performance against the standards and correction of

performance to ensure achievement of Human resource software. The purpose of

controlling is to ensure that everything occurs with the standards. Controlling is the

process of checking whether or not proper progress is being made towards the

objectives and goals. Controlling has following steps:

 Checking of standard performance.

 Measurement of performance.

 Comparison of performance with standards

 Determining the sequence of activities and putting these critical steps into some

sequential order:

 Human Resource Software Company will include the following activities in

sequential order:

 Establish the organizational structure

 Planning Human resource

 Manage performance

 Training and development

 Personal relation

 Supply of services

 Identifying what will be accomplishment in each step

 Establish the organizational structure

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First and foremost, step is to establish a structure through which the business

will operate. It includes the structure of functional department, organizational

structure etc.

 Planning Human resource

In this Human Resource software will decide how much of the work force will

be required in the staffing process so that the basic management function is

performed.

 Manage performance

In this HRSC will see what are the sales plan, how the business is opting the

plans and what strategy is followed so that performance work increases and

plans are implemented.

 Training and development

Based on the requisites of the orders from different business requirement the

training and development will be implemented so that the new or working

staff does not follow as a work load on them and instead does the work on or

before the dead line.

 Personal relation

In this the company will create personal relations with its small and medium

sized business so that the the revenue for the firm is generated.

 Supply of services

Once things go as per plan the supply of services can be varied based on

timely manner.

 Determining the time and acquiring the cost, the total amount of time and cost

which might occur at each step, identifying the source of getting the finance.

An assumption is that the administrative costs will not exceed 20% of the total

staff costs approximately 2000SR.

Staff costs do not exceed 60% of the total sales value approximately 20000SR

Staff costs do not exceed 40% of the value added that is 5000 SR

Total estimate cost of creating the software will be 10000 Sr

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Opportunity checklist:

Customer

Small and

medium sized

business,

HR employs

Competition

Human

resource

service

providing

firms

Vendors

Software,

Firmware

Government

State,

Local,

International

Global

environment

No

environmental

effects

involved

Trend

Human

Resource

software and

usages

Market size

Small and

medium sized

business firms

Price

Ranges from

500sr to

1500Sr

Market

growth

Based on

employment

trend

Distribution

From Top

level to

medium level

management

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The Business Model Canvas

Value Proposition: our value proposition is to deliver online service related to Human

Resources and we provide it 24/7 with affordable prices so it can suet small and medium

companies.

The collection of Human resource software we offer will meet the needs of the companies.

Human resource software company value proposition is what distinguishes it from the HR

field. There is no such firm with this innovative idea in the kingdom. Human resource

software company will provide value through various elements such as newness,

performance, customization, “getting the HR work done on time”, less price, cost reduction,

risk reduction, accessibility, and convenience/usability by the HR department.

The value propositions will be in two forms:

 Quantitative – price and efficiency

 Qualitative – overall business or employee experience and outcome

Business companies as customers will be able to solve their HR problems by an app and our

software. With a single click by them they will get a confirmation of their requirement and

contacted by our employee to collect more information. The free employees will be notified

by the software to the computer operating system which will help the customers to know how

much cost and time will be incurred.

Customers: Human resource Software Company believes in the term ―Customer is king‖ and

for this customer oriented and easy interface application will make it easier for the customers

to take the benefit of the services offered by Human resource Software Company.

 Customer Segments:

We have different segments such as: small and medium companies, Candidates,

Employees and Managers there will be a user interface in the software which will

make the working easy for all the above segments of customers and their work will be

easily handled by our HR team. The main job will be providing the HR solutions to

the business customers.

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 Customer relationships:

To build relationships with customer we will give them membership, automated

system and club to keep them close and know their needs. To ensure the survival and

success of Human resource Software Company, Human resource Software Company

identifies the type of relationship it should create with their customer segments. Now

a day‘s widely used methods are used to contact or create interest in the business.

Various forms of customer relationships include:

 Personal Assistance: Assistance in form of employee-customer interaction. Such

assistance will be performed during sales and/or after sales.

 Dedicated Personal Assistance: The most intimate and hands-on personal

assistance in which a sales representative will be assigned to handle all the needs

and questions of a special set of clients in the HR.

 Self Service: This type of relationship involves indirect interaction between the

Human resource Software Company and the clients. Human Resource Software

Company will provide the tools needed for the customers to serve themselves

easily and effectively with proper guidance on the software user interface.

 Automated Services: A system similar to self-service but more personalized as it

has the ability to identify individual customers and their preferences. Human

resource Software Company will be making changes based on suggestions based

on the …