Why do I need a new Solution ?

We are in the fortunate position of meeting many different businesses and often getting to know them quite well.

Usually it quickly becomes apparent to us, which of these are well managed and which are successful or will become successful.

In general, our observation is that in order to manage an organisation effectively there must be a reasonably good Information Technology system in place. We do not pretend that this is the main driver of success, typically this is driven by good products or services meeting a niche market demand, ideally with a leading position within that niche market and supported by a strong brand.

In some markets which are very cost sensitive and are of a commodity type, then slick IT may even be a driver for success since this may be the only way to drive down costs. With labour costs consistently increasing ahead of inflation (even in India and China labour costs are now rising at dramatic rates of 30%+), it is our belief that it will become more and more important to extract as much value as possible from labour hours to be competitive.

Even with great products or services and good sales and marketing skills, an organisation is unlikely to be successful for the long-term, unless it is managed well. Also it is likely that it will face many crises (think Enron) which may threaten survival. In order to manage any organisation (larger than around 10) in the modern economy slick IT is fundamental.

Analogy: An Organisation's Systems are akin to a Country's Infrastructure

A good way to think of IT for a business is to make a comparison with a country and its infrastructure. In Europe, US and Japan we take for granted a base level of infrastructure including: electricity, telecoms, a reliable legal system, roads, railways, basic education and so on.

Consider the following table, comparing India's economy with that of the UK.

Indian people are just as intelligent as UK people, they live in a democracy which desires wealth growth and innovation, yet even with 18 times as many people their total economy is only 1/3 of the total UK economy on a per capita basis and the UK economy produces 54 times the economic value of the Indian economy (estimated latest figures at market exchange rates).

The main reason for this is India's appalling infrastructure. Without roads, running water, schools, reliable electricity or telecoms it is quite easy to comprehend why their economic performance is similarly appalling.

In our experience, companies which invest in good IT systems, like countries with good infrastructure, produce higher economic returns, especially on a per employee basis.