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EPITAEPITA
IT MarketsIT MarketsBasic Finance and MarketingBasic Finance and Marketing
Oct 11th 2006Jean-Noël GORGE
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AGENDAAGENDA
• Who am I ?:
– Jean-Noël Gorge• [email protected]
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Jean-Noël GORGE ?Jean-Noël GORGE ?
• First job in IT at Olivetti France internal IT department October 69, (program coding)
• Before, MBA from HEC
• Sales and/or marketing positions at :• Bull• Cap Sogeti• Digital• Apple France• Andersen Consulting
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Jean-Noël GORGE ?Jean-Noël GORGE ?
• Today
– President ( and only staff now !!!) of
MarKante Conseils
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MarKante Conseils ?MarKante Conseils ?
• Our clients : IT services companies
– « SSII » – IT departments of major accounts
– Consulting firms (Accenture and the like) mainly dedicated to IT services
– Software editors with strategic positions in consulting and services
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MarKante Conseils ?MarKante Conseils ?
• Our practice :
– Business development• Positioning, targetting, • Marketing (products and services offering, mixes,
alliances etc.)• Sales performance (account management)• Communication
– Merger and acquisition (M&A) for small and very small companies (< 5 M Euros)
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Who are you ?Who are you ?
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Objectives Objectives
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Objectives ?Objectives ?
• To help you get a better return on your investment in tuition fees !
• How ?
– NO TECHNICAL DISCUSSIONS !
– A better understanding of basic forces driving the business of this industry.(and, by the way your future employers)
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Topics discussed ?Topics discussed ?
• Basic economic and business elements more or less relevant for your future (first ?) job:
– Size and growth of IT industry, – Jobs creation– Role and contribution of IT to a company
business– Different players of the IT services industry– IT Jobs, grades, careers in large
corporations .
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Warnings !Warnings !
• This course’s approach is not backed by any academic research
• It covers only professional usage of IT• It is predominantly based on personal
“hands on” experience :– Important : Hw manufacturers, SSII, Consulting, B to B– Average : Editors, distributors, Start Ups, B to C– Indirect : Users
– Sales, Marketing, Communication, management
– No experience or specific skills in organization, finance and HR
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ProgramProgram
• Lecture 1 (Today) :– Major indicators for the IT industry in France– IT contribution and added value to business
• Lecture 2 :– 1960-2006 : majors phases in IT industry development
• Lecture 3 :– IT services industry ( largest employer and recruiter)
• Lecture 4 :– Les autres employeurs
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Program (2)Program (2)
• Lecture 5 :– Zoom or add ons to previously discussed or new topics,
at your request
• Exams
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Questions ?Questions ?
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Major indicatorsMajor indicators
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Macro Economy ?Macro Economy ?
• GNP (PIB in French)
• Nation’s Budget
• Investments (households excluded)
• IT expenditures (household excl.)
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Macro economyMacro economy
• France
• GNP (PIB in French)
• Nation’s Budget
• Investments (households excluded)
• IT expenditures (household excl.)
• Euros 109
• 1700
• 270
• 230
• 75
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IT ExpenditureIT Expenditure
• IT expenditure :
– manufacturing industries + financial industries + administrations ( central and local):
– 75 billions Euros– 4,4 % of GNP– 33 % of total investments of French
economy
• 2005 / 2004 growth:
– 2,5 to 2,7%• 2006 growth (?): 2 to 6 % !!!
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Gross margin and investmentGross margin and investment
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Growth and investment Growth and investment
+1,8%
+3,5%
-10,0
-5,0
0,0
5,0
10,0
15,0
20,0
25,0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004 20
052006
GNP investments
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IT expenditures by industries IT expenditures by industries (%)(%)
25
21
7
15
14
7
11Manufacturing
Finance
Telecom/ media
Government
Transport/ Tourism/ ServicesUtilities
Commerce/ Distrib
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IT expenditures by items IT expenditures by items (%)(%)
34
2015
14
4
13Wages
SW
HW
Subcontracting
R&D
Other
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IT added value to business ???IT added value to business ???
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IT added value IT added value
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IT added value (ctnd)IT added value (ctnd)
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IT added value (fin)IT added value (fin)
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IT and employmentIT and employment
• France (2006, likely to be the same in 2007)
– 60 to 70 000 IT staff recruitments (all levels) of which
– 15 to 20 000 net jobs creations
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IT employment perspectiveIT employment perspective
207 000 new positions (net !) to be filled in France by 2015* Where to go to find candidates ? How to attract and retain ?
Competition tougher than ever between IT and other industries
papy-boom58 000 IT Pros will
retire in Francefrom now to 2015*creation
of 149 000 newjobs positions in
IT from now to 2015*
Scarcity of new graduates
less students taking sciences
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Questions ?Questions ?