Polyphonic Hmi Case Analysis
Definition of the problem:
“Hay más probabilidades de ganar en Las Vegas que en el sector de la música” stated Ric Wake, an Independent music producer.
In a US market where sales growth is declining by 10.4% in 2002, this situation weakens deeply the whole music industry and opens to the door to a change of pattern in the way executives of this industry predict future “hits”.
Polyphonic HMI, a technology company, relies on a single marketable revolutionary product: Hit Song Science. HSS is artificial intelligence software that can assess the “hit” potential of a song thanks to an extensive analysis of millions of songs. This tool is the first of its kind to predict future “hits” with 80% accuracy which means a tremendous increase of customer’s functional and economic value. If successfully launched, this disruptive innovation could even change the rules of the game in a $32 billion industry.
If the company can also rely on an experienced management team and on well respected music industry “insiders”, the record company executives have showed skepticism during the first sales presentations. Most of them are for the moment reluctant to consider the use of science to quantify artistic value as growth leverage and are not willing to change the way they do business.
By late 2003, Polyphonic had not been successful and the company is operating on a very tight budget of $150 000 for the launch of HSS. Its fragile financial health (and no longer paid CEO) requires a quick definition of a target and positioning to leverage this opportunity and generate revenue.
Is there a business opportunity for HSS?
• Polyphonic HMI SWOT Analysis (Exhibit 1)
There’s definitely a strong business opportunity for HSS software mainly because of the following reason: Major record company, in particular, spend a lot of money to market music: having a single in the “Billboard Top 40” is essential to make money out of an album and this require high investment: a single cost at least
“Hay más probabilidades de ganar en Las Vegas que en el sector de la música” stated Ric Wake, an Independent music producer.
In a US market where sales growth is declining by 10.4% in 2002, this situation weakens deeply the whole music industry and opens to the door to a change of pattern in the way executives of this industry predict future “hits”.
Polyphonic HMI, a technology company, relies on a single marketable revolutionary product: Hit Song Science. HSS is artificial intelligence software that can assess the “hit” potential of a song thanks to an extensive analysis of millions of songs. This tool is the first of its kind to predict future “hits” with 80% accuracy which means a tremendous increase of customer’s functional and economic value. If successfully launched, this disruptive innovation could even change the rules of the game in a $32 billion industry.
If the company can also rely on an experienced management team and on well respected music industry “insiders”, the record company executives have showed skepticism during the first sales presentations. Most of them are for the moment reluctant to consider the use of science to quantify artistic value as growth leverage and are not willing to change the way they do business.
By late 2003, Polyphonic had not been successful and the company is operating on a very tight budget of $150 000 for the launch of HSS. Its fragile financial health (and no longer paid CEO) requires a quick definition of a target and positioning to leverage this opportunity and generate revenue.
Is there a business opportunity for HSS?
• Polyphonic HMI SWOT Analysis (Exhibit 1)
There’s definitely a strong business opportunity for HSS software mainly because of the following reason: Major record company, in particular, spend a lot of money to market music: having a single in the “Billboard Top 40” is essential to make money out of an album and this require high investment: a single cost at least