Atomic LocalizationAtomic Localization

Serge GladkoffSerge GladkoffPresidentPresidentLogrus InternationalLogrus International

A Self-Organizational Virtual Vendor ModelA Self-Organizational Virtual Vendor Model

What triggered this recent advertisement ?

Everybody is after their prey (Actual industry ad.)

• Certain capacity• Certain scalability• Good skill set and talent• Stable and reliable operations• More than 5 years in business or created by industry veterans• Certain technology platform• Basic sales process• Answers most issues of Very SmallAnswers most issues of Very Small• Ready and hungry for growthReady and hungry for growth• Limited by financing and developmentLimited by financing and development• Size is about $1M annualSize is about $1M annual

Overheated “Atom” has will and energy to create links and bondsOverheated “Atom” has will and energy to create links and bonds

Sustained Small is SeedSustained Small is Seed

New economy is Atomic

• Large corporations are created due to the notion that “the sum is greater than its parts”.

• In New Economy the parts are about to become greater standing by themselves…

ATOMICATOMICReforming the Business Landscape into the New Structures of TomorrowReforming the Business Landscape into the New Structures of Tomorrow

Roger Camrass and Martin Farncombe Roger Camrass and Martin Farncombe

Atoms self-organize

• Atoms already know each other.• Atoms start talking to themselves to align their

interests so as to answer clients needs.• New distributed production platform starts to

form to provide services and solutions that are beyond the scope of single Atom.

Atomic Corporation is born•…and the new sum is going to be much greater than its previous corporate configuration.

Virtual Atomic Localization platform is the vehicle for Atoms to function as Virtual Corporation.

The New “Corporation”

… is going to look like this:

• Consists of smart “atoms”, Consists of smart “atoms”, achieving better quality and achieving better quality and greater productivitygreater productivity

• Is going to be slimmer and Is going to be slimmer and more efficient, aimed for client more efficient, aimed for client value, not for shareholders value, not for shareholders valuevalue

• Relationships are becoming a Relationships are becoming a keykey

LLA is “Atomic MLV”

Microsoft

EMCHP

Production

• Production is catered solely by Atom• Atom is responsible for quality and deadlines• Atom is responsible for contingencies within

Alliance, or else agrees to yield his interests to alternatives chosen by the client

• Atom advertises its resources to Alliance for planning purposes

Non-competing mechanism

• Atoms claim and negotiate the borders of their “vital interests”

• The borders are drawn and atoms respect them for each other

• Atoms with wider interests or caution are “associate” members

• The world is too large for conflict to arise; if the growth will push borders, they will have to be renegotiated.

Pricing made simple

• Unified cross-alliance purchasing rates• No restriction whatsoever on Atom external

rates• Atom can sell his own services cheaper or

dearer. In theory client can renegotiate the entire price list with Alliance members; but it’ll take lots of time and effort, because entire price list is well balanced.

Standard interfaces are key!

• Legal: Pre-arranged contractual relationships• Resource management interface• Communication and file transfer interfaces• Costing and payment interfaces

Common processes

• Unified translation process (in place)• Unified QA process (in place)• Unified QA service (in place)• Synchronized sales and marketing process (in

place)• Common workflow platform (future)• CRM (future)• Centralized service systems and centers (future)

Addressing liability issue

• Logrus is US Type C Corporation with 15 years in business.

• D&B DUNS Number: 964894976.• Logrus addresses liability issue by obtaining

insurance.• A liability clause is in LLA documents.

…LLA is evolving:

There are no limits to self-organization!

Why LLA works• Every intermediate deliverable is contractually on

time• No need to control, manage or finance atoms• Aim is for efficiency, not for “shareholders value”• Lower management overhead – client is buying

more better management at lower cost• Self-organization mechanism blocks useless

programs.• SLV quality is better than MLV – clear, direct

path to service provider• LLA is slimmer and cost-effective for the client

Alliance appeal

• Pricing benefits for projects of scale• Anyone can start using the Alliance – any LLA

hub, any client – Alliance is not a company, it’s unified economical quality production platform created to provide distributed production.

It’s happy to get work on board.

LLA is already of scaleAtomic structure by definition is NOT one company.

But the entire system is of scale.Member TurnoverLogrus $*,*MTexel $*,*MES $*,*MIdea Factory $*,*MPuntoLOC $*,*MText & Form $*,*MVerterIT $*,*MORCO $*,*MTranslation From To $*,*M

Total: $14.5M

Customer size and type

• From $10K annual…• …to $20M annual business (the size of LLA)

• Mid-Market is completely covered.• Large corporate client is mostly covered.• Atomic model answers well both to centralized

and distributed purchasing policies.

Who benefits the mostWho benefits the most

• Logrus IS THE LLA AuthorityLogrus IS THE LLA Authority• However, Alliance does not restrict AtomsHowever, Alliance does not restrict Atoms• All Atoms can be the client hubAll Atoms can be the client hub• Whoever uses Alliance most, pulls the cloud of Whoever uses Alliance most, pulls the cloud of

influence to himselfinfluence to himself

Thank you!