Team Computers - 2008

8/8/2019 Team Computers - 2008

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t:EAM Computers 2008-09

Ranjan Chopra, Director of t:EAM Computers Pvt. Limited (t:EAM), a Delhi basedsystems integrator and solution provider, was planning the next leap for thecompany. Sitting alone in a holiday resort in Spain; where he had arrived early

morning in March 2009, to participate in a global conference in the field ofInformation Technology. He wanted to re-evaluate and critically examine themarathon discussion with his core managers and his advisory team which heconcluded just before he boarded the flight to Spain from New Delhi. He hadswitched off his mobile, informed the reception of the resort and had put up thedo not disturb sign in front of the door, so that he was not disturbed in histhoughts

Ranjan recounted the progress of t:EAM from its inception. With a seed capital ofRs 18000 from his end and a contribution of 36000 from two of his friends, hebegan t:EAM Computers in 1988. In its initial days, the company began with

repairing of computer hardware and took advance payment for the servicesrendered. Since capital was an issue, his strategy was to take payments inadvance for the annual maintenance contracts (AMCs) and fortunately he hadsome angel customers who agreed to do so. Within a year, the companygarnered a turnover of Rs10 lakh and had a t:EAM of 30 people.

Things were shaping in accordance to the plan until 1990 when his partnersdecided to move out, which became the first turning point in his career. Herecalled that one of the partners wasn't really active and wanted his money backand the second partner had a family business of chemicals, and wanted to jointhe business. So, he was left behind to manage everything on his own and

decided it was time to re-structure the organization. He was helped in this byDeepanker Roy, his friend. Together they created a four layered structure withinthe organization. This exercise helped t:EAM organize itself into a more compactand professional organization.By early 90's, t:EAM was clearly servicing its way up the ladder and emerged asthe only player in the market (in Delhi) to provide service for laser printers. As aresult, the organization came to be tagged as the Laser King. t:EAMs corevalue proposition was the service support it offered and people trusted them.t:EAM's market leadership in the Delhi was evident when it clocked a turnover ofRs 3 crore in 1995 by providing only services. Ranjan could conceive at thatpoint that laser printers would be commoditized in near future, which meantvolumes would go up and prices will go down. So he started to look for otheravenues. t:EAM's next strategy shift began in right earnest when HewlettPackard (HP) established a direct presence in India. Ranjan saw HP India'saggressiveness in the market and felt that the growth phase won't last for long fort:EAM as its customer base at that point of time was primarily the ones who wereprice conscious (so any one offering a better price like HP was, they would

Draft Version of case prepared by Profs. Ashok Kapoor & Jaydeep Mukherjee,

Management Development Institute, Gurgaon, India1


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switch). So he decided to change track and orient t:EAM to customers looking forlong-term relationship and thus started focusing on the mid-market segment.

The company gradually went on to partner with IBM, Lenovo, Acer, HP and otherplayers in the market. However, Chopra was not satisfied with this and was

looking at ways to move into the next league. This hunger paved way for his nextleap in 2005 into the Business Intelligence (BI) market.

Ranjan felt satisfied that t:EAM had emerged as a large Information Technology(IT) infrastructure and solution provider, supporting more than 600 mid marketcustomers across the country by end of 2008. t:EAM had been driven by acustomer-oriented approach with focus on impeccable standards of operationalexcellence, seamless integration of project aspects and providing tailor-madesolutions that met clients' needs. t:EAM continually redefined quality and commitsto deliver the best to its clients as well as meet and exceed their expectations. Hefelt that his company had the best in class global processes and had kept pace

with the evolving needs of its clients & the ever changing strides of the ITindustry. He felt that the fact that t:EAM was successful, could be evident only bythe satisfaction level of its customers and associates. With a massive andintensive network spread across the Indian sub-continent, t:EAM was the premierservice provider to all IT solutions with expertise in the following domains:

Infrastructure Management Services (IMS)Infrastructure Build Solutions (IBS)Information Services (IS)Business Applications & Consultancy Solutions (BACS)

He believed that so far the company had been essentially a sales drivenorganization and for good reasons too. Now there was enough stability ofbusiness and the time was right to change tracks and transform itself into amarketing driven company. The minimum that he expected the strategy shifttowards marketing orientation to deliver was: sustainable, profitable growth forthe company. He felt that t:EAM would be in a position to offer its customersbetter top-line, process management, cost management and operating efficiencyresulting in better bottom-line through its IT infrastructure management andsupport services. While most industries and companies in the world was copingwith the recession in the economy post 2008 financial meltdown, he felt, it waspossibly the best thing that could have happened to t:EAM.

Ranjan felt that the growth and financials of the company in the last few yearshad been good and qualitatively he was also able to make t:EAM Computers aforce to reckon with in the current market space it operated in, and achieved areasonable degree of industry recognition.

For his part Ranjan had been a multifaceted and multi-talented individual. He hadpenchant for technology, music, and sports and was quite proficient at playing




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the Saxophone. He had been the mainstay of the sales performance of hiscompany. He rarely missed impressing the clients with his consumer focus andclarity of purpose, and had very high rate of conversion with his sales pitches. Hehad been actively trying to develop his people. In the last seven months, whenthe economy was on slowdown, he had organized at least a dozen two day

training programs for his top management team by using the services of bestfaculty resources in the country. Not only that, he had himself participated ineach of the programs along with the participants to ensure commitment andlearning from the participants. He had deliberated a lot and had reached a clearunderstanding that retention and development of his employees was a muchbetter option for him than hire and fire. His frustration had been that, even afterall his efforts, the management team of t:EAM was unable to imbibe the go getter attitude, where they were able to sell, up-sell, and cross sell the entiret:EAM product portfolio.

Just then, his e-mail poped up a news article from one of the leading newspapers

in India (given in annexure 1a), he read the same quickly, felt a bit happy andrealized the urgency to finalize his plans. He felt that the recession in the globalmarket was the best time to plan and prepare for the good times. He startedfocusing again with renewed vigor on his planning, got into finer details

Business Mix

By 2007-08, t:EAM had grown into an Rs 230 Crore company. Growing at therate of 70 percent, the IBS division was focused on building infrastructuresolutions like data centre, networks and had strategic tie-ups with vendors likeCisco, Acer, Lenovo, HP and IBM in this space. The IMS space was more onensuring application / infrastructure uptime and availability.

Both IS and BACS were fairly new divisions for the company. BACS as a divisionwas started two years back and had tie-up with Microsoft for ERP and CRM.Ranjan felt that it was still in the early stages of building the foundation. Thebeginning had been good so far with at least one project per month in the lastone year. Most of these projects had been in the services sector.

The company created the IS division last year and was looking to tie-up withsome Business Process Management platform vendors. One of the keyhighlights had been a project for Fullerton India Credit which was worth Rs 1crore. Though it's been only a year since t:EAM started with IS, and were in theearly stages of formation of tie-ups, this project had been a major winner forthem. The business revolved around non-core banking processes like the loancalculator and profitability calculator.

In late 2005, t:EAM had also set up a US subsidiary to focus on InformationServices. It has been able to acquire about 18 customers and has partnered witha company in the ocean transportation for dash board applications. The US




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subsidiary generated $1 million last year and t:EAM was constantly looking to tie-up with product companies. With the state of the US economy, it hasn't set anytargets for this business.However, with a customer base of over 1200, records prove that t:EAM acquired

5 new customers every week on an average.

Future plansFor the year 2009, t:EAM intends to get into business transformation services.For this, it is looking to tie-up with consulting companies like McKinsey. Themanagement feels that these consulting companies would be responsible toprovide strategy to customers on what business they should be in. Once this isdone, we will help the customers implement that strategy.On the IS side, t:EAM will be moving into BI 2.0 and will also move advance leveldashboard design. It will be developing products and solution accelerators meant

for specific verticals that can be deployed easily.The company will also focus on IS and BACS and is actively looking at tying withplatform vendors (the actual reason to attend the conference for Ranjan). Withpresence across 40 cities, the company was looking to settle for a turnoveranything between Rs 230 to Rs 300 crore in 2009. In the beginning of the year, itwas going at Rs 25 crore a month but now with the slowdown, it has gone down.However, t:EAM is still expecting to grow at 15 to 20 percent while the market isgrowing at 10 percent.

Innovation and processes at t:EAMt:EAM has developed some in house tools for infrastructure support likeSmartDesk, which essentially is a system to track Service Level Agreements(SLAs). Similarly, there is yet another tool developed called Unidesk. This toolhelps not only IT issues but also HR and administration issues can be loggedand resolved. All these innovations have put us far ahead of most people we areaware of, the top management t:EAM believes.Also unique is its classification of customers. Based on the IT spend andbusiness potential, customers are classified into platinum, gold and silver. Thisclassification process is unique and helps t:EAM manage its customers betterand effectively. A platinum customer may not be a big company, however their ITspend may be substantial (for t:EAM).One of the most interesting innovations has been the 'CXO Cockpit'. It is more ofa decision support system for the company. Every CEO or a CXO should havesomething like where information is available on fingertips in the form ofdashboard, which is easy to assimilate and quick to decide to. Based on this wethought we should also have something like this which can give us insights,without having to ask for reports but is right there on the display.




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On the services side, the company started with helpdesk or a 'tech BPO' as theyrefer to it this year. Instead of sending the technical people on site, they thoughtof introducing tele-support to manage customer calls remotely. This is done outof our offices in Delhi and Mumbai.

Critical Challengest:EAM Computers have been expanding rapidly in the last few years, and thusthere was a need to quickly induct the new recruits in the organization and letthem go to client organization. Consequently the organizational culture was notgetting imbibed in the employees and the customers were also getting differentimages of t:EAM based on who was interfacing with them on behalf of t:EAM.Worse still, they were sometimes getting different and contradictory perceptions.This was inducing huge variability in the perception about t:EAM in the minds ofthe consumers. With increasingly competitive market place, a distinct image of

the company was almost a pre-requisite to the vision of sustainable, profitablegrowth for the company. The problem was inherent in the market condition ofintense competition among the firms and high degree of employee turnoverwhich plagued the industry.

One of the ways to mitigate the problem was to position the organization verysharply in the minds of the customers. However the positioning had to beconsistent with the currently held perceptions and credible at the same time. Thebigger challenge was to arrive at such a positioning.

Ranjan had been thinking about the same and decided that the best way toresolve the issue would be to seek help of experts who were not part of thet:EAM Computers system, who could bring in fresh perspectives andcommissions a research study to arrive at a solution. He was clear that therewere many stakeholders in the positioning exercises, though he believed intaking opinion from all, he was also aware that democratic process may notalways be the best way to arrive at a business decision. It was a CEOs duty todefine the positioning and cascade it down the rest of the organization. So hewas ready to exercise the choice but needed some key insights which would helphim arrive at an optimal solution.

The Positioning Research Team (PRT) comprised of two members whosuggested an in depth stakeholder interview process and sought some specificdata to arrive at the possible positioning platform for t:EAM. The data provided tothem (Annexure 4 to 8) and the following are some of their findings:

Ranjans concernThe clear and unique positioning was vital for customer awareness and afocused Brand Building Exercise of t:EAM. Building the brand was important for




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t:EAM to be able to upgrade to the higher end of the value chain, and explore thefuture opportunities that may come up.

So far the brand management with the key accounts was managed by Ranjanonly, with a few senior members of the company. However with the growing

business, unless the synergy was maintained, it was unlikely to be a sustainablebusiness model for t:EAM.

Ranjans concept of t:EAMs positioning was like that of Fine Dining Experiencein a restaurant business. He was confident that the scope of IT was muchbeyond the applications that were running currently across the industries. Thenature of IT is likely to keep changing; however the need is likely to remain. Thatfundamental need satisfaction is to be ingrained in the spirit of the t:EAM andvalue systems so that the customers truly experience the positioning statementof t:EAM in every interaction, reinforcing the same with every interface witht:EAM, directly or indirectly.

To be successful in positioning exercise, there has to be articulation andinstitutionalization of the positioning by each and every employee to manifest ineach and every interaction with the stakeholder. So there was need to haveconsiderable degree of the internalization.

One of the core values which Ranjan himself and the core t:EAM had tried overthe years to ingrain in the culture of the organization was the concept thattogether every one achieves more and the typical process of achieving the

same was: Coming together Remaining together working togetherachieving together

Human Resource t:EAMs perspectiveConsidering the manpower turnover which was the accepted norm in the ITindustry in India, the t:EAM Computers recruitment process was designed forgood employee retention. For recruitment, they followed standard processes liketechnical skill evaluation through IQ and EQ tests and interview process. One ofthe cornerstones of the selection process which was implemented in theinterview stage has been to pick up people who have demonstrated stability andalso the need for the specific job in question; the factor was articulated ascommitment to t:EAM.

However the huge human resource expansion which t:EAM was coping with(Projected numbers given in Annexure 3), there was a need to be flexible withthe recruitment criteria. So the ideal profile was more an exception than norm inthe business especially in 2007 -08.

Perspective of Senior Management t:EAM of t:EAM




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The senior management t:EAM of t:EAM were administered a questionnaire tofind out their understanding of the positioning t:EAM Computers currently haswith its customers and stakeholders and also, what it should be after three years.The following is the summary of their responses:

Current positioning enjoyed by t:EAM

1. IT Infrastructure Management Company2. IT solution provider in one roof3. Ethical and transparent company4. Economical5. Flexible and professional organization6. Trusted vendor7. IT services company8. Reliable paymaster9. Company that has retained old people

10.Master dealer for IBM, HP products11. Not good on time-lines committed12.Adds value13.All India Network14.Different solutions that they can provide to the problem15. No risk and secure investment

What is the positioning expected after three years also drew interesting set ofresponses:

1. Global infrastructure Management Company like Infosys.

2. Bigger in size and spread out globally3. Top most system integrators in the Indian Market4. Well trusted partner for solving 80% of the customers IT needs.5. Less expensive but more customer service focused6. Complete end to end service provider for IT needs7. Works for the growth and benefit of its customers, offering lower total cost

of operations8. Process driven9. Highly skilled engineer10.Committed to customer delight11.Good on time-lines & quality of work12.Beyond Box13.Top employer14.Should be at least Rs. 500 Crore company15.Customer is the first priority

A cursory look at the above did reveal that no coherent idea about the future ofthe company was there in the top management which could be because of thefollowing:




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1. There was no systematic attempt at mapping future growth plan as anintegrated company.

2. There was no need to have a unique goal as the SBUs have beendifferent and were better suited to pursue different goals.

3. It was possible that the industry was too dynamic to plan for a long termstrategy, better to be flexible and decide based on the emergentsituations.

4. There was an underlying common spirit which is not formally shared andnot apparent to a casual observer and even to the top management

5. It was top driven organization with the wisdom flowing from top, so therewas divergence in the senior management t:EAM.

The interpretation of the above could be that, there was scope to arrive at aunified positioning and the exercise could help transition the organization to asynergistic pursuit of goals and help catalyze its growth. However, challenge was

that, was the data adequate in generating the business plan for the next three tofive years and developing a positioning statement which could be a good startingpoint for the pursuit. The organization structure was that such issues could bequickly addressed. The February 2009 report from Gartner about the CIOpriorities is given in Annexure 9 & 10.

Ranjan was convinced that a thoughtfully conceived positioning platform whichwas well engrained in the DNA of the organization would be one of thecornerstones of t:EAMs future prosperity. But the key issue was the options ofpositioning platform he could possibly adopt? What would be the ideal one whichhe should adopt for t:EAM Computers and what should be the criteria for the

selection?

Current Competitive positioning of t:EAM computerst:EAM Computers define their business space as providing holistic Solution to itscustomers which include

Create IT Infrastructure

Guarantee Uptime

Support Business Applications

Business Process Transformation.

Reporting and Business Analytics

Predictive Analytics

t:EAM Computers promise their customers essentially the capability to think,build and operate the business solutions envisaged/required for serving theircustomers.

Think IT Consulting




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Identifying ready-made solutions as building blocks Systems Architecting and Design

Build Integration of various software & systems Development of new applications

Implementation

Operate Uptime and availability Assurance Managed Services Remote Infrastructure Management

There is a possibility of multitude of competitors at local regional and all Indialevel as well as global competitors. Similarly t:EAM is exploring the businessopportunity essentially in India as well as elsewhere in the world. The competitionfor t:EAM is then essentially at two levels, the conventional system integratorsand solution providers as well as the internal IT department of the organization.

The micro level understanding of the business space of t:EAM can beunderstood as per the following also:Infrastructure

Solutions- Computing Devices, Networking: LAN/WAN, Servers/DataCenter, Storage: SAN / NAS, Security Solution.

Services- Uptime and availability

Software ServicesSolutions- ERP,CRM, BPM (Business Performance Management), HR-IS.

Information Services

Services- Business Intelligence, Customer/ Finance Intelligence,Supply Chain Intelligence.

Solution accelerators

Re-use knowledge and intellect for quick deployment of solutions.

Market research data on competitive landscape

The marketing team of t:EAM surveyed the Chief Information Officers (CIO) of aset of sixty companies in a conference held in Kathmandu during early 2009. Thefollowing set of data could be culled out:

i. Key challenges faced by them:

Cost control

Decrease in the customers for the business

Surge in demand on IT support services from within the organization

Resource optimization and waste reduction

Reducing the IT response time




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Higher focus on efficiency because of economic downturn

Integrated IT solution for the entire business

Integrating the different systems within the IT setup

Increasing profitability

Providing innovative solutions to business problems

Increasing competition in the business Collection of accounts receivables

Keeping pace with growth

ii. Their satisfaction with their existing IT vendors

High 27 respondents

Moderate to High 9 respondents

Moderate 10 respondents

Moderate to low 0 respondent

Low -1 respondent

iii. Current vendors

IBM, HP, Lenovo, Dell, Acer, HCL (CMS), Sony, Siemens

t:EAMS, SUN, Cisco, Wipro, Sify, Reliance Communication

Microsoft, SAP, SAS, Oracle, Sybase

Symantec, Autocad, Datacraft, Futurenet Technologies, Kripa Electronics,t:EAM, INMAC, Juniper

Key challenges before t:EAM top management t:EAMs perception

The meeting of top management representing the Finance, Strategy, InformationTechnology, Marketing, IMS and IBS businesses of t:EAM was held tobrainstorm on the challenges faced by t:EAM Computers. The followingemerged:

1. The risk paradigms of the businesses were considerably different withindifferent SBUs of t:EAM as well as their respective customers.

a. IBS: It is about designing transaction around product, price anddelivery. The risk is taken by t:EAM and the buyers are just using

the facility (hardware) provided by t:EAM. The exit barrier is low forthe customer and high for t:EAM. As per the prevalent perception ofthe group, IBS was a very well established business and that helpsthe company manage the margins, though the economic slowdownhad shown that the perception may be far removed from reality.

b. IMS: The risk is taken by the customers is very high as t:EAMoperates their hardware and maintains the IT infrastructure. Thereis considerable amount of mission critical tacit knowledge which is




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outside the domain of the customers. While t:EAM does not havereally much at stake as they typically do not own the infrastructureor the business results.

c. BACS and IS: Here the customer takes a lot of risk as the service istime consuming and has financial implication. It affects their

business and competitiveness. The same is the case of t:EAM,where the customers typically can hold back payment in case notsatisfied, and t:EAM has to invest a lot of effort and time in thesolution.

2. The businesses are very different in the core competency required todeliver value to customers. The chances of cross selling if harnessed (sofar it has not been) are going to help the brand or not? For example if theIBS customer who is seeking a solution in the IS field, it is possible thatt:EAM is unable to match their expectations, jeopardizing even IBSbusiness. This also stems from the fact that the IBS and IMS businessesare well established and t:EAM has considerable expertise in delivering on

customer need, and that need not be the case for the IS and BACSbusinesses. As far as t:EAM was considered, the IS and BACS could beseen as incubation businesses and even experimental businesses whichmay not remain in future (unless it is able to perform well).

3. The different businesses are at different stages of product life cycle. In

t:EAM, the sequence of getting into business has been IBS IMSBACS and IS, however in the overall IT market, IBS and IMS are a maturebusiness, BACS is in decline stage, IS in growth stage.

4. IBS is a trading operation, IMS is standard services, BACS is applicationand IS business is customized service applications. The overlap of thecustomers is also quite interesting, in terms of number of customers who

do businesses with one or more of the SBUs of t:EAM and the value ofthe business for 2007 (Annexure 12)5. The perception about what t:EAM Computer stood for was also varied: It

ranged from An integrated solution provider using IT enablement to helpcustomers maximize their objectives anywhere in the world to A goodplace to work, nice, comfortable and like a family

Ranjan was seriously thinking about the feasibility and sustainability of some ofthe positioning platforms he had been thinking about for quite some time, orshould there be something else? The choices which were in his mind (not in anyparticular order):

a. The IBM and Accenture of mid sized companies (High performancedelivered, agility and speed)b. Trusted solution partnerc. A true service providerd. A trusted advisor and executionere. One stop solution to all information needsf. SEVA (Simplicity, Equity, Velocity & Authenticity)




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He knew that it was time to take a call at least on the conceptual level, while theexact phrasing of the positioning statement could be sharpened by the mediaprofessionals to a crisp one liner which would have high impact. Would it be agood idea to focus on a few targeted companies and provide them integratedsolution across the IT landscape or continue as it is? He was also considering

whether his future business would come from a large number of small customersor a small number of large customers? Was it possible to run his businessesunder one business or was it better to run them as separate businesses? Wouldthese choices really impact his positioning statement or the positioning statementwould help resolve these choices? He looked at the P&L statement of t:EAM(annexure 13) and was contemplating the changes the positioning exercise canbring about in the same

Attachment 1a)




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Ranjan Chopra is the most powerful channel partner

Tuesday, January 20, 2009

There has been an upheaval in the power club of the channel this year, withseveral people who had made it to the list of the Most Powerful Channel Partnerin 2008, missing in the same list in 2009. But one person has not budged hisplace of pride and that is Ranjan Chopra of t:EAM Computers. Chopra hastopped the list for the second year in a row.

This is the third year that DQ Channels has released the list of the 10 MostPowerful Channel Partner in the Indian IT industry. These people have carved aniche for themselves in the channel community. While the vendors refer to them

before planning strategic decisions, their peers look at them for guidance andinspiration.While coming up with the list, the thumb rule was to focus on the people and not

just the company. DQ Channels gathered feedback from representatives of over25 vendor companies as well as national distribution houses, asking themto give the names of five channel partners who are a crucial cog in their wheel.




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Revenues were not the sole criteria for selection. Instead, these respondentswere asked to focus on how well the contender has grown his company, theinnovation he brings to his business, his negotiation skills, his charisma, hisability to deal with difficult situation and his progress over the years.

Once the names started pouring in, DQ Channels selected those names thatcame up repeatedly. After culling the top 10 names, DQ Channels traced theorder in which they featured on the nominations tendered by the vendors andranked them accordingly.

http://dqweek.ciol.com/Top-Stories/Ranjan-Chopra-is-the-most-powerful-channel-partner/109259/0/

Annexure 1 (Sales Turnover)

Year IBS IMS IS & BACS

2005-06 91.26 0.26 0.71

2006-07 118.35 13.36 4.10

2007-08 157.47 17.42 7.98

Annexure 2 (Projected Sales Turnover)


2008-09 157.00 23.00 8.002009-10 200.00 40.00 20.00

2014-15 1,800.00 200.00 200.00

* The planning cycle is April March period.

Annexure 3 (Manpower Details, Actual and Projected*)


2005-06 77 599 34

2006-07 134 776 98

2007-08 196 975 158

2014-15* 200 5000 500

Annexure 4 (Organizational Structure 2008)


http://dqweek.ciol.com/Top-Stories/Ranjan-Chopra-is-the-most-powerful-channel-partner/109259/0/http://dqweek.ciol.com/Top-Stories/Ranjan-Chopra-is-the-most-powerful-channel-partner/109259/0/http://dqweek.ciol.com/Top-Stories/Ranjan-Chopra-is-the-most-powerful-channel-partner/109259/0/http://dqweek.ciol.com/Top-Stories/Ranjan-Chopra-is-the-most-powerful-channel-partner/109259/0/


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Management Development Institute, Gurgaon, India

Shared CorporateResource

Ranjan Chopra

HRDeputy Manager

Internal IT Administration

Assistant

Trainee

Executive

t Assistant

Trainee

Executive

Assistant

Trainee

Executive

15


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IBSGeneral ManagerMahesh Tomar

ProductDeputy

Manager

SalesDy Mgr

Operations

IBM /Lenovo

POWERetc.

HewlettPackard

Logistics

ProjectInstallation

Purchase

Stores

West

South

North

Internal sales

Girish Goel(SBU Head)

SAS(Staff Augumented

Services)Break Fix

Project (Acer& New Projects

ManagedServices

BusinessDevelopment

16


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BACSKartik

(SBU HEAD)

Product Sales delivery Sales

FunctionalProjects Technical

ISA.Rajendran(SBU Head)

DeliveryProductPre-sales

SalesInternational

Sales

GoogleBI

QView

17


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Annexure 5 *(Number of Customer Details, Actual and

Projected)

Year #IBS

Reg

#IBS

OT

#IMS

Reg

#IMS

OT

# ISReg

# ISOT

#BACS

Reg2006-07 208 820 355 12 16 29 3

2007-08 388 689 238 18 39 29 9

2008-09884 147 276 5 62 3 13

2014-15

1000 500 500 200

*Each business has its own customers and if there is overlap, it is more by chance than design*OT = One Time customer*Reg = Regular customer

Annexure 6: Top 10 Customer (Sales volume) details in Rs Lacs

Name of Company 2004-05Turnover

2005-06Turnover

2006-07Turnover

WPP 627.10 695.90 1,741.78NIIT 266.01 819.33 1,008.00HUt:EAMH/VODAPHONE(IBM) 277.47 470.70 842.41AMEX 505.52 323.23 736.13t:EAMSL 222.08 272.16 423.12YAHOOINDIA 502.64 370.78 407.60REDIFF 152.62 356.28 353.06MAXNEWYORK 88.78 313.70 275.18QUINTILES 91.18 104.34 209.49ESPN 34.36 67.53 166.74JCB 117.03 269.41 130.66MCHINSEY 167.30 190.56 126.27MET 89.58 107.91

LLOYDS 15.18 23.17 107.17BEL 209.22 139.60 96.52OSSS 2.04 49.36 93.77K&N 27.59 53.52 92.99LIFUNG 41.93 51.86 73.37PPDIM 3.28 18.55 70.02PERFETTI 22.18 11.86 69.24

Annexure 7 (Top Vendors/Partners of t:EAM Computers)




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1. HP

2. Microsoft3. CISCO

4. Qlicktech

5. IBM6. Lenovo

7. Acer

Annexure 8

Annexure 9




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Annexure 10 (CIO Technology Priorities for 2009)

1. Business Intelligence (BI) applications (analytics, data mining)2. Servers and Storage Technologies (including virtualization)3. Entreprise Applications (ERP, SCM, CRM, etc)4. Legacy application modernization, upgrade or replacement5. Collaboration technologies6. Networking, Voice and Data Communications (including VOIP)7. Security technologies (access control, authentication, etc)8. Technical Infrastructure management and development9. Document management10.Service oriented applications and architecture (SOA, SOBA)

Note: in the survey, respondents chose their top five issues (not in any order). Thesepriorities are ordered based on the percentage of respondents who includedeach issue in their top five.

Annexure 11:




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t:EAM Sales Analysis

Figures in Rs Crores

2008-09 2008-09

Sale

GrossMargin

Sales:Top 25accounts Sale

GrossMargin

Sales:Top 25accounts

IBS 131 10 69.55 156 15 75

IMS 20 15 11.58 17 15 9.62

IS 6.4 3.2 6 9.4 5 7.9

BACS 1 -0.1 1 0 0 0

Total 158.4 28.1 182.4 35

Annexure 12: Customer overlaps across SBUs in t:EAM 2008-09(Sales figures in millions of Rs., customers in units)

SBU Group IBS IBS IMS IMS IS IS BACS BACS

Venn Status Sales#Cust. Sales

#Cust. Sales

#Cust. Sales

#Cust.

Total13,727.4

6 13242,279.6

1 611714.4

6 93132.6

0 30

IBS 2,832.27 817

IMS 174.36 147

IS 230.26 22

BACS 15.46 3

IBS & IMS 9,813.72 422 1,653.81 422

IBS & IS 156.37 17 159.72 17

IBS & BACS 8.61 4 23.93 4

IMS & BACS 0.04 1 0.23 1

IS & BACS 3.21 5 28.84 5

IBS & IMS & IS 718.58 31 389.05 31 269.63 31

IBS & IMS & BACS 5.20 1 35.51 1 4.49 1

IBS & IS & BACS 154.22 7 39.38 7 47.73 7

IBS & IMS & IS &BACS 38.49 6 26.85 6 12.26 6 11.92 6




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Annexure 13 (Abridged P& L Statement)All figures in million Rs. (rounded off)

2007-

08

2006-

07

2005-

06Sales 1831.69 1352.01 1013.51

Other Income 3.66 3.29 3.26Total Income 1835.36 1355.31 1016.77COGS 1410.88 1076.19 793.88Cost ofmaintenanceservices

40.81 29.33 25.52

Personnel cost 198.66 152.00 111.93Administrative &Selling Expense

84.78 65.31 51.29

TotalExpenditure

1735.13 1322.83 982.63

PBIDT 100.22 32.47 34.14Interest &FinancingCharges

12.00 5.57 1.80

Depreciation /Amortization

10.98 7.91 4.39

PBT 77.23 18.99 28.76PAT 48.18 12.26 18.29

Draft Version of case prepared by Profs. Ashok Kapoor & Jaydeep Mukherjee, 22

Team Computers - 2008

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