Page 1 Jean-Noël Gorge 3 mai 1999 1/58 MarKant e c o n s e i l s Jean-Noël Gorge, oct 25th 2006...

Jean-Noël Gorge 3 mai 1999 1/58

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Jean-Noël Gorge, oct 25th 2006 1/35

EPITAEPITA

IT MarketsIT MarketsBasic Finance and MarketingBasic Finance and Marketing

Lecture #3Oct 25th 2006

Jean-Noël GORGE


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Previous week V.I.P.Previous week V.I.P.(Very Important Points)(Very Important Points)


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+6 à +8% (e)

+1,8%

+3,5%

-10,0

-5,0

0,0

5,0

10,0

15,0

20,0

25,0

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004 20

052006

PIB L&S Investissement


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HW

MatureTechno.

Emerging techno.

Users

Cyclephase

60's 70's 80's 90's 2000's


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Towards integrationTowards integration

Each layer comes on top, previous layers never disappear !!!(See millenium bug)

70's

MainframesCobol 370CICS etc

80's

Minis & department's IT (VAR Digital, HP, DG)

90's 2000's

Micros( Client/Server, ERP)

60's

Assembler & Co


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Digital TimesDigital Times

Industrial Era

Napoléon IIIRailways

Digital Era

ChiracInternet

Mass production, « Pushed » flowsRaw MaterialsHeavy « tangible » investments Taylorism/Marxism

Networked OrganizationsPulled flows « On demand »Fast and leanInformationImmaterial


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Industrial times IT challengesIndustrial times IT challenges

Design/Engineering

Logistics

Purchasing

Sales

Finance

Mktg-Comm

Problem =

Integration

Solution=

"re-foundation"

= ERP

Design/Engineering

Manufacturing


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Need

for Internal

Integration

Company A

Digital times IT systemsDigital times IT systems

xxNetConception

Fabrication

Logistique

Achats

Ventes

Finance

Mktg-Comm

Need for external integration

Company BDesign/Engineering

Logistics

Purchasing

Sales

Finance

Mktg-Comm

Design/Engineering

Manufacturing


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Questions ?Questions ?


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IT Cycles and Software ServicesIT Cycles and Software Services


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Components

Hours+

Hourly Rates+

TimeSheets

60's


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Software services Software services business basicsbusiness basics

• Fondement du « business model » dit « un homme, une heure, un euro », ou

(1xn) (1xt) (1xp) = Revenues (CA)

• N = effectif

• T = taux d’activité, rapport entre jours (heures) facturés et jours (heures) facturables, bref le « tace »

• P = prix, tarif, tjm


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Components

Hours+

Hourly Rates+

TimeSheets

60's

Componentsintegration

70's

Components+

Fixedquotes

(Specs, Prices,planning


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80's


Components

Hours+

Hourly Rates+

TimeSheets

60's


70's

Components+

Fixedquotes


SystemIntegration

CI+

1/3rd partiesSystems(minis)


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90's


80's

Components

Hours+

Hourly Rates+

TimeSheets

60's


70's

Components+

Fixedquotes


SystemIntegration

CI+


ServicesIntegration

Consulting+

Build+

"Run"


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S I +

Long termDeals

+Embedment

2000's


90's80's

Components

Hours+

Hourly Rates+

TimeSheets

60's


70's

Components+

Fixedquotes


SystemIntegration

CI+


ServicesIntegration

Consulting+

Build+

"Run"

Business Integration


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« SSII » : a short story « SSII » : a short story

Mainframes 370's Minis CS Internet

S I +

Long termDeals

+Embedment

2000's90's80's

Components

Hours+

Hourly Rates+

TimeSheets

60's


70's

Components+

Fixedquotes


SystemIntegration

CI+


ServicesIntegration

Consulting+

Build+

"Run"



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Projects / Deals size (M€)

> 50

2510

2

ComponentsComponentsintegration

SystemIntegration

ServicesIntegration



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?>30?>50?

>80100

Share of prime contractor in project /deal value (%)



SystemIntegration

ServicesIntegration



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Cap Gemini…………. Bossard …..

Andersen Consulting …. AccentureIBM

Ernst & Young

Integration : CompetitionIntegration : Competition

EDS + AT Kearney


SystemIntegration

ServicesIntegration



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Competitive fight Competitive fight

Cost / PricesFree Lances / Temps

Remote selling«Commodity»

Closeness

Difficulties

Dilemma

Added ValueCustomer’s

CoreBusiness


SystemIntegration

ServicesIntegration



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Strategies’ convergenceStrategies’ convergence

B I Manufacturers

Editors Outsourcing

Each group builds on its own components, butall seam to move towards BI

SSII

Cap GeminiAccenture

MicrosoftOracleSAP

EDSADPFirst DataATOS

IBMBullHP


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ComponentsComponentsIntegration

SystemIntegration

60's

Services Integration

70's 80's 90's 2000's

BusinessIntegration

Business Integration Business Integration

In the « digital World »If we stop, our clients stop =>

Services Share (CBR)

permanentActions

365/7/24Sharing risks

& gains


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SSII in the 2000’sSSII in the 2000’s

• Business Integration :

– 1° What is our (monthly, quarterly...) share of each customer expenditure in C+B+R ? How do we get maximum coverage ?

– 2° Which strategic functions or information are outsourced to us by each customer ?

– 3° How do we control (defend) and expand our services share for each customer ?

– 4° How do we manage not to be substituted in our core offerings ?

– 5° Offering every possible service, not producing all of them

– 6° What is our position in each customer’s Galaxy ?


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C B R Services portfolioC B R Services portfolio

System-Management , Entreprise infrastructures

Entreprise Applications Management

CHANGE

Pac

kag

eU

pg

rad

es

Bu

sin

ess

Bre

ak t

hro

ug

h(M

&A

, S

pin

Off

, ..

.)

New

Mo

du

les,

New

Fu

nc

tio

ns

Arc

hit

ectu

reE

volu

tio

n

Use

rs S

up

po

rt&

Tra

inin

g

Co

mp

on

ents

Inte

gra

tio

n

User Support (Call Center / level 1)

Enterprise Effectiveness

Enterprise Program Management

Ro

ll O

ut

Fir

st B

uil

d

BUILD(projets)

RUN


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HR and Critical factorsHR and Critical factors

Profit sources

– 60's Programmers

– 70's AP Cobol

– 80's Graduates

– 90's Consultants

– 2000’s « Informationworkers »

Strategic skills & know how

Recruiting, retaining

Project management

Tools, alliances (VAR…)

Methodology, global vision

CRM, KM


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Another look at Services Another look at Services Segmentation in IT Segmentation in IT

consultingconsulting

Strategy

Processes

H R

Technologies


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In the following slides, companies In the following slides, companies names may be erroneousnames may be erroneous

M&A, LBOs, Names Changes etc.


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Strategy

Processes

H R

Technologies

What to do ? = Strategy

How to do it ? = Consulting

We will make it for you ! = Services Integration

We will run it for you ! = Business Integration

From Strategy to OperationsFrom Strategy to Operations


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Group (or family) Group (or family) 11

Strategy

Processes

H R

Technologies

Anglo-Saxons Strategists :

McKinsey, Bain, BCG, AT KearneyBooz Allen, BraxtonMercer Management Consulting

French Strategists :

Mars & Co, OC& C, Statorg, Telesis...


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Group (or family) Group (or family) 2

Strategy

Processes

H R

Technologies

French generalists :

Eurogroup, Quadran, AlgoeCegos, l'ex Eurequip, SolvingOrgaconseil, SV & GM ...

Former accountants or auditors

PWC Developpements,Ernst & Young Entrepren.Ineum PMO, KPMG Fidorga


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Group (or family) Group (or family) 3 3

Strategy

Processes

H R

Technologies

IT integrators:

Accenture,CSCIBM Consulting, EDSCap Gemini : (Skill conseils + Bossard + Gemini + Ernst)CSC + KPMGAtos ConsultantsSteria consultantsSopra Consultants- MegaUnilog ConsultantsOracle ConsultingSAP ConsultingMicrosoft Consulting Services


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Group (or family)Group (or family) 4

Stratégie

Processes

R H

Technologies

HR specialists

PA Consulting, William M. Mercer,Hay Management, DDI, Bernard Juilhet,Bernard Brunhes, Cemis, Francis Vidal, HGC, IDRH, Insep, Atefo, QuaternaireHerbemont César, Altedia


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Growth factorsGrowth factors

Strategy

Processes

H R

Technologies

Technology breaktroughs and «waves»GlobalisationPrivatisationsM&ACompetition

Cost cutting(Re) OrganisationProceduresCoaching

Steady growth

Regular, « soft » growth


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Questions ?Questions ?

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