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Business Overview & Proposed Strategy Bruce Cardinal Gale Group Corporate Division May 21, 1999 Confidential and Proprietary. Do Not Distribute.

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Presentation on theme: "Business Overview & Proposed Strategy Bruce Cardinal Gale Group Corporate Division May 21, 1999 Confidential and Proprietary. Do Not Distribute."— Presentation transcript:

1 Business Overview & Proposed Strategy Bruce Cardinal Gale Group Corporate Division May 21, 1999 Confidential and Proprietary. Do Not Distribute.

2 Corporate Division Overview ComputerSelect Results The IT Market Opportunity Sierra Concept Overview Sierra Plan Next Steps Agenda

3 Leverages current assets IT customer base ComputerSelect brand Product and company content Market dynamics attractive Fastest growing U.S. industry High rate of change increases demand for information High risks associated with wrong decisions New opportunity for Thomson Why IT Vertical? Corporate Division

4 Changes in Customer Base 9,710 8,593 6,178 4,781 4,391 The number of customers is dropping as we target higher dollar accounts and spend less effort on smaller CD sales ComputerSelect

5 Percentage of Total Revenues The Gale Corporate Division generated revenues of $40 million in 1998 Resellers 57% ComputerSelect 25% InSite 18% $40 Million Lines of Business Corporate Division

6 Changes in Revenue Base Loss of CS CD customers is major reason for revenue decline CS Web is growing at an increasing rate ComputerSelect

7 Average revenue per customer is rising as the mix shifts to more web sales Sales Trends ComputerSelect

8 Majority of CS Web sales are small installations...1 to 3 concurrent users Breakdown of CS Web Accounts 6 or More Concurrent $14,395+ Standalone $1,550 1 Concurrent $2,995 3 Concurrent $7,595 ComputerSelect

9 Source: OES 1996 Employment Statistics Outsell Jan. 1999 Target Market Size The IT Market Opportunity

10 Research and Advisory Services The IT Market Opportunity

11 Major IT Publications 1 CMP acquired by Miller-Freeman in April 1999 The IT Market Opportunity

12 New Content Customer Experience Market Research Panel (IntelliQuest) Expert Opinion Licensed content (Giga or Gartner) Training Resource Center Original content Links to CBT sites and Amazon.com Bug Reports and Alerts Original content Cambridge/IT Group support Web Search Results Aeneid technology Integration of Indices Computer Database and DataSources Outside experts (Giga/Gartner) Expanded journal coverage (80+) Content Sources Existing Content Computer periodicals (100+) DataSources product data Indexing and term mapping from Computer Periodicals Database and DataSources Project Sierra

13 1 Assumes 4% penetration of IT user market Economic Model Project Sierra

14 Announce InSite transfer May 24 Re-focus sales force on ComputerSelect Present MBDI June 7 Further validate market opportunity June 15 Market analysis and research ComputerSelect customer feedback OCTO and Thomson CIOs Verify cost model June 30 Negotiate panel and IT analyst deals Clarify internal editorial/development costs Negotiate ZDNet partnership June 30 Commence implementation June 30 Create phased development plan Implement Phase 1 Next Steps Project Sierra

15 New Technology needed by organization Technology Purchasing Process

16 Research and identify technology and vendor options Research using third party data Search Web for vendor sites and user groups Network with peers New Technology needed by organization Technology Purchasing Process

17 Create “short” list (3 - 5 Vendors) Conduct research on vendors Compare products (specs, integration) Research cost-of-ownership issues Evaluate aftersale support Research and identify technology and vendor options Technology Purchasing Process New Technology needed by organization

18 Obtain customer references Look for bug information Refine cost-of-installation model Investigate and purchase training Select vendor and deploy technology Technology Purchasing Process Create “short” list (3 - 5 Vendors) Research and identify technology and vendor options New Technology needed by organization

19 Maintain new technology Follow developments at vendor Monitor bug alerts Evaluate potential upgrades Obtain ongoing training Create “short” list (3 - 5 Vendors) Research and identify technology and vendor options Select vendor and deploy technology Technology Purchasing Process Select vendor and deploy technology Create “short” list (3 - 5 Vendors) Research and identify technology and vendor options New Technology needed by organization

20 PROJECT SIERRA Technology Purchasing Process Maintain new technology Select vendor and deploy technology Create “short” list (3 - 5 Vendors) Research and identify technology and vendor options New Technology needed by organization


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