15 Credit hours course with two presentations, one group assignment and 1 individual + final exam.

1. Scenario and strategic planning On Q-Tech Source, the future of Document Imaging Outsourcing Services In Qatar BN926 STRATEGY AND MANAGEMENT OF CHANGE

2. Table of contents 1.0 INTRODUCTION 1.1Scope of Analysis and Time Frame 1.2Background of Organization 1.3Imaging Outsourcing, The Technology & The Service 2.0 MAJOR STAKEHOLDERS 2.1Customers 2.2Vendors 2.3Employees 2.4Government 3.0 TRENDS AND INDUSTRY ANALYSIS 3.1Porter’s Five Forces analysis on the industry 3.1.1 Bargaining Power of Suppliers 3.1.2 Bargaining Power of Buyers 3.1.3 Threat of New Entrants 3.1.4 Threat of Substitute Products 3.1.5 Industry Rivalry 3.2PEST 3.3Q-Tech Source’s Winning Factors 4.0KEY UNCERTAINTIES 5.0DEGREE OF INTERDEPENDCY AMONG KEY UNCERTAINTIES 6.0KEY DRIVING FORCES 7.0SCENARIO THEMES 8.0THE PLAUSIBILITY OF THE SCENARIOS 9.0DECISION SCENARIOS AND IMPLICATIONS 9.1 Scenario 1 – Forces of Sum 9.2Scenario 2 – Intensity of competition 9.3Scenario 3 – Head-on Competition 10.0 CONCLUSION 11.0RECOMMENDATIONS

3. INTRODUCTION what Is imaging ???

4. A growing number of organizations are moving from conventional hardcopy documents towards a digitized Easily accessible and storage saving softcopy. Paper-based information and convert it to electronic images that are stored in a computer electronically Allowing everyone in the organization to access and use the digitized content with ease

5. What is outsourcing? The process of contracting external specialized organizations to carry out certain business processes with the aim of reaching optimum cost and process efficiency.

6. This explains the focus of our assignment “Imaging Outsourcing” at Q-TECH, and the ability to outsource their imaging needs. Q-Tech Source’s vast experience, spanning two decade, they are the market leader in the imaging outsourcing industry in Qatar. A question that raises itself?? But how does Q-Tech source get their potential issues addressed??

7. The answer lies in Scenario Planning Important tool and practice for business survival and success. Foresee the threats that are emerging. Seek out opportunities and grasp better the odds of the future. It allows organization to focus on key issues that will impact their business – survival and sustainable growth

8. 1.1 SCOPE OF ANALYSIS AND TIME FRAME The presentation studies in depth, the key trends and uncertainties and how it would affect the long-term sustainability of Q-Tech Source in Qatar. Due to the unstable and constantly evolving nature of technology, the planning process will be restricted to a 5 year time frame.

9. 1.2 BACKGROUND OF ORGANIZATION They address the specific needs of every organization with key focus on reducing costs and risks while improving speed, efficiency, and security. Currently, Q-Tech Source has the largest imaging capacity in Qatar with a processing capacity of over 3 million pages a month. They are working towards the certification of International Standards Organization's

10. IMAGING OUTSOURCING, THE TECHNOLOGY & THE SERVICE THE IMAGING PROCESS

11. 2.0 MAJOR STAKEHOLDERS

12. 2.1 Customers The customer portfolio also includes government agencies such as the Immigration Department where they process large numbers of visa/passport applications.

13. 2.2 Vendors The vendors mainly compromise of: 1- technology providers such as imaging software products. 2- suppliers of specialized hardware such as high speed scanners and data storage server.

14. 2.3 Employees Q-Tech Source community consists of over 1,500 employees over 5 different locations throughout Qatar, led by a team of professional managers with multi-disciplinary business experience. Seventy-two percent (72%) of the total workforce are directly involved in the imaging outsourcing services.

15. 2.4 Government Qatar National Bank (Government Body – Qatar’s Central Bank) mainly concerned with information security and reliability of the outsourcing operations. One example is the requirement by QNB for outsourcing companies such as Q-Tech Source is to have a disaster recovery centre

16. 3.0 TRENDS AND INDUSTRY ANALYSIS bargaining power of Suppliers Dependent on suppliers, due to uniqueness of technology threat of Substitutes - Potential threat - Volatile technology - Frequent developments - More innovative document solutions threat of new Entrants - Growing interest - China - Less technologically advanced INDUSTRY COMPETITORS RIVALRY AMONG EXISTING FIRMS bargaining power of Buyers - Seek high quality & security - Limited bargaining power

17. 3.1.1 Bargaining Power of Suppliers Q-Tech Source is considerably dependent on suppliers. Once a supplier is engaged, given the uniqueness of the imaging technology, it is somewhat difficult to engage another vendor as there is a long re-learning curve. This gives the suppliers a higher bargaining power over Q-Tech Source and other companies within the document imaging industry.

18. 3.1.2 Bargaining Power of Buyers Although there are other outsourcing companies, Q-Tech Source is the market leader and currently one of the few outsourcing companies who are ISO (International Standard Organization) certified. although the buyers do have some bargaining power but it is somewhat limited.

19. 3.1.3 Threat of New Entrants As the outsourcing industry is profitable and holds a lot of potential, it naturally attracts new entrants However, as they are less technologically advanced, they have yet to become a real threat.

20. The two major factors that discourage new entrants are:

21. 3.1.4 Threat of Substitute Products Threats from Traditional Data Entry solution Outsourcing companies like Fuji Xerox who are still providing traditional data entry services in order to digitize documents are providing alternative solutions to imaging. In contrast their process involves highly manual labor and is less technology intensive, hence cheaper.

22. Continued Potential Threat – Digital Pen Threats from innovative technology Potential Threat – Digital Pen As technology is volatile, There is potential threat of new disruptive technologies e.g. digital pen that captures natural handwriting onto computing device is already available.

23. 3.2 PEST analysis

24. Q-Tech Source’s Winning Factors

25. 4.0 KEY UNCERTAINTIES U1 = What if the repercussion of recession does not stabilize within the next five years? the unemployment rate will increase and there will be reduction in the cost of employing labor cheap data entry clerks and there is a possibility of Q-Tech Source’s customers converting to Data Entry instead of Imaging. recessions may cause IT industry failures

26. U2 = What if q-Tech Source gets involved in Joint Ventures and Mergers? Opportunity that Q-Tech Source can explore. It will allow them to acquire a wider range of competencies to be able to cater for more dynamic offerings They can provide e-document solutions with document automation Such strategic alliances could give Q-Tech Source the competitive edge

27. U3 = What if there is threat from foreign players and disruptive technologies? Foreign competitors for instance from China will be offering similar services at even lower costs. Although they are not very mature in the technology industry as yet, they may emerge as real threats given time for them to gain expertise.

28. U4 = What if the QNB imposes unfavorable legislation? There is a possibility that in the next 5 years, QNB may pass the following legislation:

29. 5.0 DEGREE OF INTERDEPENDENCY AMONG KEY UNCERTAINTIES? U1 = What if the repercussion of recession does not stabilize within the next five years? U2 = What if Q-Tech Source gets involved in Joint Ventures and Mergers? U3= What if there is threat from foreign players and disruptive technologies? U4 = What if the Qatar National Bank imposes unfavorable legislation?

30. The degree of correlation between the key uncertainties

31. CONTINUED

32. 6.0 KEY DRIVING FORCES

33. 7.0 SCENARIO THEMES Scenario 1 (+)Force of Sums in Hostility

34. SCENARIO THEMES Contd Scenario 2 (-) intensity-of Competition

35. SCENARIO THEMES cont’d Scenario 3 (?) - Head-on Competition Under these circumstances Q-TECH will face greater pressure in delivering the desired performance

36. 8.0 THE PLAUSIBILITY OF THE SCENARIOS

37. 9.0 DECISION SCENARIOS AND IMPLICATIONS 9.1 Scenario 1 – Forces of Sums in Hostility (+)

38. 9.2 Scenario 2 – Intensity of competition (-) In order to stop customers from switching to the foreign players Q-Tech needs to :

39. 9.3 Scenario 3 – Head-on Competition (?)

41. Intensity of competition;

42. Head-on Competition.

43. Strategic Alliance, Joint Venture, and Mergers & Acquisition has shown to be one area that could strengthen the survival of Q-Tech Source in these worse times to come. Scenario planning helps synthesize future opportunities and risks

44. 11.0 RECOMMENDATION Cost management Operational excellence for Outsourcing companies is particularly crucial. Strategic Alliances through Joint Ventures or Mergers and Acquisition with software companies

45. END OF PRESENTATION