Case 1 – Strategic Direction
Background
Privately owned IT retailer and systems integration & services provider wanted to separate its integration and services business and expand it nationally. With retail margins contracting, they understood growth opportunities existed within integration and services, but efforts in acquiring larger national accounts were fruitless.
Additionally, existing customers were migrating towards competitors which provided a broader service offering and national presence, matching their growth expectations.
Core issues
Although the company successfully serviced the local small enterprise market, their service offering, local presence and consequent strategic market positioning were inappropriate for the corporate environment.
Importantly, the company lacked the organisational structure and process capability to service national corporate accounts even if successfully acquired.
Solution
The solution was to position the company such that they could provide a market competitive value proposition with a national presence without the capital outlays required for technology infrastructure (in providing additional services) and regional offices.
This was achieved by:
- Re-defining market positioning, value proposition and approach to market acquisition
- Developing a sales and marketing plan, with go to market strategies for national roll-out
- Optimisation of service offering, by rationalising existing services and utilising outsourced / partner services and regional service providers
- Defining operating structures, standards and policies to support new business requirements
Critical success factors
The solution implementation enabled the company to maintain a low cost localised physical presence while controlling service delivery nationally. This was achieved by providing software maintenance online and engaging hardware maintenance partners outside their local area.
Additional services (such as data backup services) were provided via specialist national service providers.
Service quality control was maintained by routing all requests through a dedicated internal service desk.
Results
Within six months the company had acquired 3 new national clients and implemented national technology/networks projects and SLA’s for each (generating $370,000 and a 45% increase in service revenue). As a result of steady growth they are now looking at opening regional offices.
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