01consulting Market Research Methodology

If you are not familiar with market research in Enterprise Software, let us tell you first about some of the easiest ways of estimating a market, also known as macro-analysis:

  1. Ask others : primary research , interview with experts, interview with vendors. In short, one way is to rely on other people’s statements.
  2. Estimate based as a fraction of a bigger market or as an extension of a smaller market. (example: The VR gaming market is a certain fraction of the whole gaming market).
  3. Mix the results of existing analysis and report a median.

We don’t rely on any of the above, at the beginning, but rather build the market valuation ground up; we identify the top 30 companies running business in this space and work hard on each and any of them to find their sales and their unit volumes. The market valuation is just slightly bigger (not much) than the sum of the numbers of this group. This method is the hardest one, but the only method which guarantees the real results. That said, after this micro-analysis we do use the macro-analysis methods to challenge our findings and re-analyze and correct them by iteration if needed.

This report has been prepared under the same methods as other 01consulting reports prepared since 2004 covering Enterprise Software Markets Worldwide. That is the fundamental ground raw data is sourced from some Primary Research and a lot of Secondary Research. The raw data is then corrected or estimated when unavailable. In fact in many fields especially in emerging markets like VR, secondary data is both scarce and conflicting. 01consulting Management has decades of experience both in software market analysis and as serial entrepreneurs in innovative new technologies. We know product launch tactics and market reactions to innovative products as well as vendor’s communications about these reactions. We know how to estimate sales numbers from public data such as number of downloads of an app, last round valuation, customer profiles, number of employees, fund raising elevator pitches (or quarterly reports for public companies), etc. Thus an important part of corrections on the initial raw data is done based on management appreciation, judgment and estimation. This is a hard work but we love doing it. As a final step, numbers are benchmarked against other third party analysis and viewed top down before being recycled in case of large gaps either to end up with the same findings or to correct some hypothesis. In other words external sources (usually publicly available) are used as a quality assurance process before final reporting.

Despite the attention to detail and the huge amount of work by 01consulting’s leadership, errare humanum est , mistakes happen. Please feedback any imperfection or error that you may see.

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