It services, it consulting and outsourcing in central europe

German labour market & IT services

German Employment Index June 2011
Source: Monster.com

Cloudcomputing a bigtrend in ITservices

Body leasingrevenues 2010 GermanySource: Lünendonk
- Hays 370 Mio.
- Allgeier 158 Mio.
- Gulp 152,4 Mio.
- GFT 131,6 Mio.
- Reutax 130 Mio.
- Harvey Nash 62 Mio.
- 1st solutionconsulting 42, 3 Mio.
- Solcom 40,7 Mio.
- top itservices 38,9 Mio.
- QUEST 38,9 Mio.

German ERP market = SAP

SAP Integrators in Germany andtheirshareofthemarket

Revenuesofthemidsized German SI`s 1,8 Billion Euro.
- 27 % IT Consulting
16 % standardsoftwareprojectsandsystemintegration
14 % individual softwaredevelopment
7 % projectmanagement
Maintenance, outsourcingandmanagement-consultingplayed
a minorrole
BI, CRM, process-innovationandsecurityarethe top trends
Theirmostimportantcustomersegmentsare:
32 % Banking and Insurance,
21 % Industrial
17 % Telcos
6 % Energy, Transportation andLogistic

Do you need a strategy?

Strategy
Effective
Ineffective
Die
(quickly)
Thrive
Efficient
Tactics
Die
(slowly)
Survive
Inefficient

A Salesperson
Stupid
Clever
  

Lazy
  
  

Hard
Working

Understand the sources of competitive advantage
Superior
position
Costs
Differentiation
Protected niche
Superior
resources
Superior
skills
Coverage
Economies of scale
Financial structures
Shared experiences
Global / International
Specialised knowledge
Customer orientation
Trade relationships
Technical expertise
Flexible organisation

Strategic positioning

Competitiveadvantage
Customers perceiveyourofferasunique
Youhave a costadvantage
Differentiation
Cost Leader
Strategic focus
Market
Focus on a smallersegment
Niche

Relative cost
Low
High
High
Outstanding
Success
Niche
Differentiation
Lowest
cost
Disaster
Low
Strategic positioning

Choosing a path to improve competitive position
…and then gained a cost
advantage through volume
Differentiation
McDonalds
… and subsequently rationalised
its process so as to improve
productivity while retaining its
differentiation
McDonalds initially
developed a niche in the
fast-food business
...
Cost leadership

Choosing a path to improve competitive position
Differentiation
Japanese
automobile
industry
…and subsequently
invested its cost advantage
into high quality, broader
lines and more versatility
The Japanese automobile
industry initially developed as
a low-cost, narrow-line,
average-quality competitor….
Cost leadership

Nichestrategy
Whatcanbe a beachheadforIntrasoft?
The Allied landing in Normandy was the largest amphibious invasion in history. Allied armies were greatly outnumbered by the Axis, particularly during the first few days. The Axis armies, however, were spread over thousands of miles of coastline. By concentrating the invasion on five small beaches, the Allies developed local superiority. Before the Axis could focus sufficient force on the landing grounds, the Allies had established a beachhead and had landed sufficient forces to defend it.

Differentiation andtheservicemarketing mix
from 4P to 7P

Capabilities and resources

The traditional professional services model
Industryexpertise
Domain expertise /
Practisearea

27
Customer / market oriented SWOT Analysis
The New Rules:
Strengths and
Weaknesses must
be recognized by
customers
Opportunities and
Threats exists in
the environment,
not because of us
Strengths
Weaknesses
Conversion
strategies
Matching
strategies
Conversion
strategies
Opportunities
Threats

Resources and Capabilities
Resources:
• tangible and intangible assets of a firm
» tangible: factories, products intangible: reputation
four general categories
(Financial, Physical, Human, and Organization
• used to conceive of and implement strategies
Capabilities:
• a subset of resources that enable a firm to
take full advantage of other resources
» marketing skill, cooperative relationships

29
The VRIO Framework
If a firm has resources that are:
• valuable,
• rare, and
• costly to imitate, and…
• the firm is organized to exploit these resources,
then the firm can expect to enjoy a sustained competitive advantage.

30
The VRIO Framework
Costly to
Imitate?
Exploited by
Organization?
Competitive
Implications
Economic
Implications
Valuable?
Rare?
Below
Normal
No
No
Disadvantage
Parity
Normal
Yes
No
Temporary
Advantage
Above
Normal
Yes
Yes
No
Above
Normal
Sustained
Advantage
Yes
Yes
Yes
Yes

31
International Application of the VRIO Framework
The International Context
Two Reasons for International Expansion:
1) to exploit current resource and capability
advantages in a new market
2) to develop new resources and capabilities in
a foreign market

32
International Application of the VRIO Framework
The International Context
Critical Caveat:
• resources and capabilities that generate
an advantage in one market may or may
not generate an advantage in a new market
Firms should re-apply the VRIO framework
when entering new markets!!

Markets and segments -
selection and strategy

Market / segment selection criteria
Selectively
Invest /
Invest in
Capabilities
Invest /
Grow
High
- Size
- Growth
- Profitability
- Competitive intensity
Market / segment
attractiveness
Maintain/
manage for
sustained
earnings
Manage for
Cash /
Withdraw
Low
High
Low
Business Strengths
- Product Range
- Product Efficacy
- Service Quality (Including distribution)
- Price
- Associated Services (e.g. Technical advice)
- Reputation / Image

Programme guidelines suggested for different positioning on the directional policy matrix
Opportunistic
development
Invest selectively
in share
Market Share
Differentiation - line
expansion
Products
Aggressive - price for
share
Price
Aggressive
marketing
Promotion
High
Limited coverage
Distribution
Market / segment
attractiveness
Tight - but not at expense
of entrepreneurship
Cost Control
Invest
Production
Low
Invest
R & D
Invest
Personnel
High
Low
Business Strengths
Fund growth
Investment
Invest
Working Capital

Competitivepricingstrategies
High
Price
Leader
Skimmingthecream
High
Low
Opportunityreducecosts
Opportunitytodifferentiate
Follow the
Leader
Penetration
Low

Value Drivers – Dimensions of Competence
Customer Intimacy
PROSPERITY
SUCCESS
SURVIVAL
Operational
Excellence
Product
Leadership

Value Drivers - Internal competence dimensions
(This tool is not specifically concerned with e-commerce, but
it is an essential starting point for later diagnostic tools)
Customer Intimacy
Targeting markets precisely and
tailoring products and service to
the needs of specific customer
groups, exceeding expectations
and building loyalty (e.g. Cable
and Wireless)
1. Score your company out of 10on your current position againsteach of these three dimensionsand join the lines up.
N.B.
Score yourself 1-3 if you arecurrently below the minimumlevel required in your market
Score your 4-6 if you arecurrently as good as the average in your sector
Score yourself 7-10 if you currently exceed the averagein your sector.
2. Score your company out of 10on the position you would needto attain in, say, 3 years time against each oftheir dimensions in order toensure your continuing prosperity.
3. On a separate sheet, list some of the main strategies you will need to implement to achieve the desired positions.
These will be useful for completing the next diagnostic exercises.
Customer Intimacy
10
9
8
7
6
5
Prosperity
4
3
Success
2
1
Survival
1
2
1
3
2
4
3
5
4
6
5
7
6
8
7
9
8
10
9
10
Product
Leadership
Operational
Excellence
Product Leadership
Continuing product innovation which meets customer needs. This implies not only creativity in developing new products and enhancing existing ones, but also astute market knowledge to ensure they sell (e.g. Johnson and Johnson, 3M)
Operational Excellence
Enabling products and services to be obtained reliably, easily and cost-effectively by customers, implying focus on business processes to outperform others, delivering low costs and consistent customer satisfaction. (e.g. Dell, Wal-Mart, Federal Express)

What is the professional services Expert saying?
Or
did we do our brainstorming well?

Professional Services Positioningper David Maister et. al.
Brains (expertise) firms, which provide service to clients who wish to retain “the smartest kid on the block”–at almost any cost. These firms give their clients new ideas.
Strong-idea (brains) firms, which are organized to deliver singular expertise or innovation on unique projects. The project technology of strong-idea firms flexibly accommodates the nature of any assignment, and often depends on one or a few outstanding experts or “stars” to provide the last word.
Gray-hair (experience) firms, which customize ideas, but rarely are positioned at the cutting edge. Clients of these firms recognize that the problems they themselves face have probably been dealt with by other companies; the client therefore seeks an organization that can offer know-how based on past experience.
Strong-service (gray-hair) firms, which are organized to deliver experience and reliability, especially on complex assignments. Their project technology is frequently designed to provide comprehensive services to clients who want to be closely involved in the process.
Procedure (execution) firms, which service clients who know that their problems can be handled by a broad range of firms and who are seeking a professional firm that can give them a prompt start, quick disposition and low cost.
Strong-delivery (procedure) firms, which are organized to provide highly efficient service on similar or more-routine assignments, often to clients who seek more of a product than a service. The project technology of a delivery firm is designed to repeat previous solutions over and over again with highly reliable technical, cost and schedule compliance.

Professional Services Positioningper David Maister et. al.
Practice-centered professionals, who see their calling as “a way of life, ” typically have as their major goal the opportunity to serve others and produce examples of the discipline they represent. Their bottom line is qualitative: How do we feel about what we are doing? How did the job come out?
Business-centered professionals, who practice their calling as “a means of livelihood,” more likely have as their personal objective a quantitative bottom line, which is more focused on the tangible rewards of their efforts: How did we do?

Ourofferingsfor ICT servicecompanies

1. Sales and customer management support. We can support and assist you and your employees in any opportunities you are pursuing. We can support you in setting up and optimizing strategic opportunity management initiatives as well as strategic account management plans. In case that there are skill gaps we can also help you to develop any missing skills of your employees.

2. Marketing and product management support. We can support you in any marketing and product management activities. We can help you align your marketing and sales messaging, develop appealing USP´s, as well as overall company and product collateral.

3. Business consulting to your clients. We will support you with customer presentations and engagements as a business matter experts for customer management, sales and service. We can provide customers and prospects of yours with consulting and analysis around these topics. You can either give these services to your clients free of charge or have them pay for the service.

4. Business development support. We can help you approach CEE Headquarters of major companies and establish your company as a strategic partner of choice. Furthermore we will help develop certain CEE markets in which we have customer and partner networks ( Czech Republic, Slovakia, Austria, Germany, Switzerland, Poland, Hungary, Romania)

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It services, it consulting and outsourcing in central europe

by Aristoteles Kabarganos on Jul 30, 2011

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It services, it consulting and outsourcing in central europe — Presentation Transcript