Volvo Group - IT Sales Opportunities - 2008 by InfinitiResearch

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Volvo is a supplier of commercial transport solutions providing products, such as trucks, buses, construction equipment, drive systems for marine and industrial applications, as well as aircraft engine components. The company is also engaged in providing financial services. The business areas of the Company are Volvo Trucks, Renault Trucks, Mack Trucks, Trucks Asia, Buses, Construction Equipment, Volvo Penta, Volvo Aero and Customer Finance. The business units include Volvo Powertrain, Volvo 3P, Volvo IT, Volvo Logistics and Volvo Parts.

Industry trends and drivers have a direct or indirect affect on IT spending of all companies operating within an industry. For example – increase in sourcing from low cost countries might influence Volvo to relook at their supply chains, resulting in selling opportunities for SCM solutions, collaboration tools etc. Thus, we can conclude that 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 spend information available in ‘TechNavio’, we have computed a ‘criticality score’ for various IT products and services, for Volvo

Various company level developments and events are important indicators of selling opportunities and drive the sales of IT products and services. For example – an acquisition by Volvo 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.

Through an in-depth analysis of industry trends and drivers and company level developments and events, we have made the ‘IT Selling Opportunities Map’ for hardware, software and IT services for Volvo. 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 scores and hence, there is a high probability that Volvo will buy these product

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									  Volvo Group
IT Sales Opportunities - 2008
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                                   Table of Contents
1. Company Overvi ew ........................................................................ 4
  1.1 Bu sin ess Overview .................................................................... 4
  1.2 K ey Figu res ............................................................................. 4
  1.3 Corp orat e Headqu art ers ............................................................. 4
2. IT Sp ending & Depl oyment s ............................................................ 5
3. IT Sal es Op p ortuni ties ................................................................... 6
  3.1 IT Sales Opp ortuni ti es - Software................................................. 7
  3.2 IT Sales Opp ortuni ti es - Hardware ................................................ 9
  3.3 IT Sales Opp ortuni ti es - Services ................................................ 11
4. Sal es Dri vers .............................................................................. 13
  4.1 Being Envi ron men t Fri endly ....................................................... 13
  4.2 Bu sin ess Port folio Man agemen t ................................................... 13
  4.3 Bu sin ess Risk Management ........................................................ 13
  4.4 Cap aci ty Exp an sion .................................................................. 14
  4.5 Collab orati on & Partn ership ....................................................... 14
  4.6 Cost Cu tting & Op eration al Effici en cy ........................................... 15
  4.7 Empl oyee Prod uctivit y & Compen sation Management ....................... 15
  4.8 Geog rap hic Exp an si on ............................................................... 15
  4.9 Imp rovi ng Cu st om er S ervice ...................................................... 16
  4.10 In formati on & Kn owl ed ge Man agemen t........................................ 16
  4.11 Int rodu ci ng New Produ cts ........................................................ 16
  4.12 Merg ers & Acqui si tion s ............................................................ 17
5. Con clu sion ................................................................................. 18
App endix A: K ey IT Deci si on Makers .................................................... 19
  Sweden ...................................................................................... 19
  Fran ce ........................................................................................ 20
  Pol and ........................................................................................ 20
App endix B: Defi nition s .................................................................... 22
  B.1 Soft ware ............................................................................... 22
  B.2 Hard ware ............................................................................... 24
  B.3 Servi ces ................................................................................ 25
App endix C: Meth odol ogy .................................................................. 27
  C.1 Eval u ati ng Cri tical ity Score ........................................................ 27
  C.2 Eval u ati ng Demand Score .......................................................... 30
Oth er Rep ort s in This S eri es .............................................................. 31




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                                   List of Exhibits
Exhibit 2.1: IT Deploym ent Details ....................................................... 5
Exhibit 3.1: Soft ware Sal es Opportunities Map ........................................ 7
Exhibit 3.2: Opp ortunities and Related Sal es Dri vers for Software ............... 8
Exhibit 3.3: Hardware Sales Opportunities Map ....................................... 9
Exhibit 3.4: Opp ortunities and Related Sal es Dri vers for Hardware ............. 10
Exhibit 3.5: ITServi ces Sal es Opportunities Map ..................................... 11
Exhibit 3.6: Opp ortunities and Related Sal es Dri vers for IT Servi ces ........... 12
Exhibit 4.1: K ey Capaci t y Exp an sion Plans ............................................ 14
Exhibit 4.2: K ey Geog rap hic Expan sion Plan s ......................................... 15
Exhibit C1: Cal culation s for Estimating Cri ticality Score ........................... 27
Exhibit C2: Cri tical ity Scores for Various Software Application s ................. 28
Exhibit C3: Cri tical ity Scores for Various IT Hardware Produ cts ................. 28
Exhibit C4: Cri tical ity Scores for Various IT Servi ces ............................... 29
Exhibit C5: Cal culation s for Estimating Deman d Score ............................. 30




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1. Company Overview

1.1 Business Overview
Volvo is a supplier of commercial transport solutions providing products, such as trucks,
buses, construction equipment, drive systems for marine and industrial applications, as well
as aircraft engine components. The company is also engaged in providing financial services.
The business areas of the Company are Volvo Trucks, Renault Trucks, Mack Trucks, Trucks
Asia, Buses, Construction Equipment, Volvo Penta, Volvo Aero and Customer Finance. The
business units include Volvo Powertrain, Volvo 3P, Volvo IT, Volvo Logistics and Volvo Parts.

The group has production facilities in 19 countries, and sales activities in some 180
countries


1.2 Key Figures
The group recorded revenues of $44,572 million (SEK285,405 million) during the fiscal year
ended 31st December 2007 up from $37,767 million (SEK258,835 million) during the fiscal
year ended 31st December 2007. In terms of US dollars, this translates to an increase of
18.0 percent. In terms of SEK, the increase in revenue was 10.3 percent.

The net profit was $2,3
								
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