Kuehne and Nagel-IT Sales Opportunities-2009

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Kuehne and Nagel
IT Sales Opportunities - 2009
                                                                                  Co nd Nag - 0 2 0
                                                                           Ku eh ne ampa ny el2- 0 8 0 9




                                   Table of Contents

1. Company Overvi ew ........................................................................ 4
   1.1 Bu sin ess Overview ................................................................... 4
   1.2 K ey Figu res ............................................................................ 4
   1.3 Corporate Headqu arters ............................................................ 4
2. IT Spending and Depl oymen ts ......................................................... 5
3. IT Sal es Opportunities ................................................................... 6
   3.1 IT Sales Opportuniti es - Software ............................................... 7
   3.2 IT Sales Opportuniti es - Hardware ............................................. 10
   3.3 IT Sales Opportuniti es - Services ............................................... 12
4. Sal es Drivers .............................................................................. 14
   4.1 Bu sin ess Au tomation ............................................................... 14
   4.2 Catering to In creasin g E - Commerce Bu sin ess ............................... 14
   4.3 Cu rren cy & For ex Man agemen t .................................................. 15
   4.4 Customer Service ................................................................... 15
   4.5 Facilities, Capacity & Coverage Expan si on .................................... 16
   4.6 Gaining Effi cienci es in Reverse (Aftermarket) Logistics ................... 16
   4.7 Helping Clien ts with En viron men t Fri endly Practices ....................... 17
   4.8 In crease Empl oyee Produ ctivity ................................................. 18
   4.9 Offerin g End -t o-En d Soluti on s ................................................... 18
5. Con clu sion ................................................................................. 20
Appendix A: K ey IT Spen ding Deci sion Makers ....................................... 21
   Switz erland ................................................................................ 21
   Hon g K on g ................................................................................. 21
   Au stria ...................................................................................... 21
Appendix B: Definition s .................................................................... 22
   B.1 Software .............................................................................. 22
   B.2 Hardware ............................................................................. 24
   B.3 Servi ces ............................................................................... 25
Appendix C: Meth odol ogy .................................................................. 27
   C.1 Evalu ating Criticality Score ...................................................... 27
   C.2 Evalu ating Demand Score ........................................................ 30




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                                  List of Exhibits

Exhibit 2.1: IT Deployment Details ....................................................... 5
Exhibit 3.1: Software Sales Opportunities Map ........................................ 7
Exhibit 3.2: Opportunities and Related Sal es Dri vers for Software ............... 8
Exhibit 3.3: Hardware Sales Opportunities Map ...................................... 10
Exhibit 3.4: Opportunities and Related Sal es Dri vers for Hardware ............. 11
Exhibit 3.5: IT Services Sales Opportuniti es Map .................................... 12
Exhibit 3.6: Opportu nities and Related Sal es Dri vers for IT Servi ces ........... 13
Exhibit C1: Calculation s for Estimating Cri ticality Score ........................... 27
Exhibit C2: Cri ticality Scores for Various Software Application s ................. 28
Exhibit C3: Criticality Scores for Various Hardware Produ cts ..................... 28
Exhibit C4: Criticality Scores for Various IT Servi ces ............................... 29
Exhibit C5: Calculation s for Estimating Deman d Score ............................. 30




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1. Company Overview

1.1 Business Overview
Kuehne and Nagel (KN) operates as a Switzerland based logistics and transport company.
KN's strategic business operations include global sea freight, air cargo transportation, rail,
road logistics consisting of European overland transportation facilities, and contract logistics,
which includes warehousing and distribution services. The company provides logistic
solutions to a range of industries such as aviation, automotive, fast moving consumer
goods, healthcare and pharmaceuticals, high tech engineering, industrial, retail, and oil &
gas. KN provides services in almost 100 countries across Europe, America, Asia-Pacific,
Middle East, and some parts of Africa.




1.2 Key Figures
KN recorded a turnover of $18,633.5 million (CHF 20,975.0 million) during the fiscal year
ended 31st December 2007 up from $14,928.2 million (CHF 18,194.1 million) during the
fiscal year ended 31st December 2006. In terms of US dollars, this translates to an increase
of 24.8 percent, which is mainly attributed to exchange rate fluctuations. In terms of Swiss
Franc, the increase in revenue was 15.2 percent.

The net earnings was $473.9 million (CHF 533.5 million) in fiscal year 2007 up from $376.7
million (CHF 459.2 million) in fiscal year 2006, an increase of 25.8 percent in terms of US
dollars. In terms of Swiss Franc, the increase in net earnings was 16.1 percent.

The company’s total assets increased to $5,719.9 million (CHF 6,438.7 million) in fiscal year
2007 from $4,689.0 million (CHF 5,714.9 million) in fiscal year 2006.

KN employed 51,075 people in fiscal year 2007, up from 46,290 in fiscal year 2006.


1.3 Corporate Headquarters
Kuehne + Nagel House
P.O. Box 67
CH-8834 Schindellegi
Switzerland
Tel: +41-0-44-786-95-11
Fax: +41-0-44-786-95-95
www.kuehne-nagel.com




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Description: Kuehne and Nagel (KN) operate as a Switzerland based logistics and Transport Company. KN's strategic business operations include global sea freight, air cargo transportation, rail, road logistics consisting of European overland transportation facilities, and contract logistics, which includes warehousing and distribution services. The company provides logistic solutions to a range of industries such as aviation, automotive, fast moving consumer goods, healthcare and pharmaceuticals, high tech engineering, industrial, retail, and oil & gas. KN provides services in almost 100 countries across Europe, America, Asia-Pacific, Middle East, and some parts of Africa. Industry trends & drivers have a direct or indirect effect on the IT spending of all companies operating within the industry. For example – growth in demand for data services might influence companies to upgrade their networks to support faster data transfer. Thus, we can conclude that the industry spending on any particular IT product or service is an important indicator of the criticality of that product or service for the industry. Based on the IT spending information available in ‘TechNavio’, we have computed a ‘criticality score’ for various IT products and services, for the transportation industry. Various company level developments & events are important indicators of selling opportunities and drive the sales of IT products and services. For example – an acquisition might result in opportunities for IT migration and integration services. By tracking these sales drivers (using ‘TechNavio’), we have arrived at a demand score for each product and service. Using ‘criticality scores’ and ‘demand scores’ for various IT products and services, we have constructed the ‘IT Sales Opportunity Map’ for hardware, software, services & communications categories. These maps have been divided into four zones representing Level I, Level II and Level III opportunity areas. Level I opportunity areas have the highest s
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