> how to proceed before the team starts on building this tool.

So far, neither you nor your company have built anything.

Relative to the Market opportunity. This platform could be a nice new line-of-business for your firm with the potential for a carve out down the road. Build your business case and pitch the CEO on the Big Idea.

Incidentally, worth checking if that $50K seed money comes with any restrictions. Obvious, conflict of interest if future potential customers are his direct competitors.