EPITA IT Markets Basic Finance and Marketing Oct 11th 2006 Jean-Noël GORGE

AGENDA Who am I ?: Jean-Noël Gorge j-n.gorge@wanadoo.fr

Jean-Noël GORGE ? First job in IT at Olivetti France internal IT department October 69, (program coding) Before, MBA from HEC Sales and/or marketing positions at : Bull Cap Sogeti Digital Apple France Andersen Consulting

Jean-Noël GORGE ? Today President ( and only staff now !!!) of MarKante Conseils

MarKante Conseils ? Our clients : IT services companies « SSII » IT departments of major accounts Consulting firms (Accenture and the like) mainly dedicated to IT services Software editors with strategic positions in consulting and services

MarKante Conseils ? Our practice : Business development Positioning, targetting, Marketing (products and services offering, mixes, alliances etc.) Sales performance (account management) Communication Merger and acquisition (M&A) for small and very small companies (< 5 M Euros)

Who are you ?

Objectives

Objectives ? NO TECHNICAL DISCUSSIONS ! To help you get a better return on your investment in tuition fees ! How ? NO TECHNICAL DISCUSSIONS ! A better understanding of basic forces driving the business of this industry. (and, by the way your future employers)

Topics discussed ? Basic economic and business elements more or less relevant for your future (first ?) job: Size and growth of IT industry, Jobs creation Role and contribution of IT to a company business Different players of the IT services industry IT Jobs, grades, careers in large corporations .

Warnings ! This course’s approach is not backed by any academic research It covers only professional usage of IT It is predominantly based on personal “hands on” experience : Important : Hw manufacturers, SSII, Consulting, B to B Average : Editors, distributors, Start Ups, B to C Indirect : Users Sales, Marketing, Communication, management No experience or specific skills in organization, finance and HR

Program Lecture 1 (Today) : Lecture 2 : Lecture 3 : Lecture 4 : Major indicators for the IT industry in France IT contribution and added value to business Lecture 2 : 1960-2006 : majors phases in IT industry development Lecture 3 : IT services industry ( largest employer and recruiter) Lecture 4 : Les autres employeurs

Program (2) Lecture 5 : Exams Zoom or add ons to previously discussed or new topics, at your request Exams

Questions ?

Major indicators

Macro Economy ? GNP (PIB in French) Nation’s Budget Investments (households excluded) IT expenditures (household excl.)

Macro economy France GNP (PIB in French) Nation’s Budget Investments (households excluded) IT expenditures (household excl.) Euros 109 1700 270 230 75

IT Expenditure IT expenditure : manufacturing industries + financial industries + administrations ( central and local): 75 billions Euros 4,4 % of GNP 33 % of total investments of French economy 2005 / 2004 growth: 2,5 to 2,7% 2006 growth (?): 2 to 6 % !!!

Gross margin and investment

Growth and investment 25,0 20,0 15,0 10,0 5,0 0,0 -5,0 GNP investments +3,5% +1,8% 0,0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -5,0 GNP investments -10,0

IT expenditures by industries (%)

IT expenditures by items (%)

IT added value to business ???

IT added value

IT added value (ctnd)

IT added value (fin)

60 to 70 000 IT staff recruitments (all levels) of which IT and employment France (2006, likely to be the same in 2007) 60 to 70 000 IT staff recruitments (all levels) of which 15 to 20 000 net jobs creations

IT employment perspective papy-boom 58 000 IT Pros will retire in France from now to 2015* creation of 149 000 new jobs positions in IT from now to 2015* Scarcity of new graduates less students taking sciences 207 000 new positions (net !) to be filled in France by 2015* Where to go to find candidates ? How to attract and retain ? Competition tougher than ever between IT and other industries

Questions ?