Information Technology Business Analysis Report

BUSINESS CASE REPORT OF THE XY COMPANY 

Information Technology Business Analysis Report

The Analysis:

The purpose of this performance report it to outline the progress of the company with the background information on innovation and innovation development, and establish corrective measures with the importance of innovations for the organization, the focus of the vision, corrective measures of the Team management, and this report focused on the operations and business management department on 5 years performance-based analysis.

 

Executive Summary:

XY is one of the new raising software and hardware solutions providing company provides a diverse variety of IT equipment, software, and services. Among its clientele are several governments, huge corporations, small businesses, and consumer marketplaces. Third-party software and hardware are also sold by XY. XY is known in particular for its and customization approach, as well as its unique supply chain management. in 2016 Soon the company launched its own innovative E-waste recycling formula in the organization as a recycling program. which has retrieved 1.76 million pounds of devices.  In the early years of the startup XY business company soon capture the market and boosted high-level sales, The company has contributed 52% of the overall market value increase from 2015 to 2019 since mid-2019. but after a few years of succession the owner, Mr.Zee realized that, As the business progressed to the next level of trading, a big sales competition emerged as a number of new competitors entered the market. The creator of firm XY feels that the solution is to develop a fresh and innovative line of products, after analyzing the result was “An abrupt and lasting drop in revenue growth is a crisis that can strike even the most exemplary organization “The record shows that if management cannot turn a company around within a few years, the odds are that it will never again see healthy top-line growth. The management came to the point that we need to fill the big gap of success sustainability in business with the adoption of new innovations and inventions expertise and more strong business management required.

 

About the Company

Xy is one of the largest IT firms in the world. The company was launched in 2015 by the sole entrepreneur owner, Mr. ZEE, A diverse variety of IT equipment, software, and services are offered by the company to the commercial, government, small business, and consumer sectors, XY, as a privately held firm, has the ability to pursue a long time horizon and commit to improving its corporate consumption of resources. The efficiency concept is key to the XY business model and guides the company's approach to resources, sourcing, and waste management.

 

Group of Products:

The Xy company specializes in producing technologies, hardware devices and developing software solutions according to the customers’ requirements and specifications. Such as IR technologies devices, Inventory software, software for word processing, and spreadsheets. Video conferencing equipment and Personal computers, attendance machine, business alliance software, and devices.

Company Performance:

Since 2015, the XY management and supply chain were based on strong and high-profile network, and the efficiency of management consist on experienced creative minded employees, was the key of success the business in the 4 early years and was running in order condition everything in the business was up to mark, since mid-2019, The firm has contributed 52% of total market value growth from 2015 to 2019. Another 20% of market value growth has come from companies, direct individual customers sales, with a tech-led strategy that augments more traditional models. the program's closed-loop recycled plastic supply chain has used polymers recovered from used computers to manufacture approximately 5,000 tons of new components for over 90 items totaling millions of units.

The company launched and achieved a significant increase in sales in its first few years due to its innovative formula and distributed capacity.

What is the Innovation farmula and recycling program?

Innovation Formula: Recycling Program

XY's commitment to efficiency has prompted the company to take on the timely challenge of disposing of e-waste, in 2016 Soon the company launched its own innovative E-waste recycling formula in the organization as a recycling program. which has retrieved 1.76 million pounds of devices. Though the company Xy contributed to responsible e-waste disposal through the use of circular economy and closed-loop ecosystems, which is the world's fastest-growing trash stream, despite a relatively low total recycling rate (approximately 15% globally). Rapid technological innovation and ever-shrinking product lifespans all contribute to a growth in e-waste. The material value of e-waste material is dominated by gold, copper, and plastic content among the components that form e-waste. In landfills, plastic, in particular, is overabundant. The XY Recycling E-waste program is a great innovation in the It field.

 

Multi-Capital Strategy

Another innovation Xy company created was to use of a multi-capital strategy to quantify the natural capital advantages of the closed-loop architecture. It has also investigated the feasibility of quantifying the social effect of this technique. Savings in both money and the environment were recognized as a result of this combined effort.

After a while when the company was surely in working order condition, and gained the name in the market as well as large scale traffic of the customers, In the mid of 2020 Xy company realized the large reduction of the production and drop down in profit margin scale, As The company lost many major and regular customers due to Covid-19, as the market face a major crisis, and also lost highly experienced and creative-minded employees who are known as the backbone of any IT organization due to their innovation and invention in technologies and hardware.

 

 

Distribution Strategy and Capacity of The Company

XY’s products and services distribution strategies are based on Psychographics and Demographics. It is aimed at tech-savvy individuals, professionals, and executives. Furthermore, it strengthens the client interaction channel in order to compete with other organizations. A strong relationship with clients, as well as serviceability, are winning aspects in the hardware and software industries, and XY is focusing on both of these. XY's approach is global in scope. It recognizes that being physically closer to the client is critical in carrying out its marketing initiatives and building a customer base.

The XY company's success and dropdown in the performance and market by the 5 years sales measurement and profit loss margin of the closure of the five-year sale.

Sale Analysis Report

Sale Analysis Report	2015	2020	Increase (Decrease)
Net sales Gross profit Operating income Ordinary income Income before income taxes and minority interests Net income	813.0 375.5 40.6 38.9 33.8   15.1	767.8 355.3 40.3 34.7 32.8   20.4	45.1 20.2 0.3 4.1 1.0  (5.2)	5.9% 5.7% 0.8% 11.9% 3.1% -25.9%
Net income per share	28.52	38.52	(10.00)	-26.0%
Capital expenditure Depreciation R & D expenses	38.4 45.9 71.5	34.0 49.2 72.5	4.4 (3.2) (0.9)	13.0% -6.6% -1.4%
Free cash flow	3.0	29.6	(26.5)	-89.8%
Number of employees [20 Persons]	41,844	38,206	3,638	9.5%
Exchange rates         US dollar Euro	83.10 107.14	79.07 108.96	4.03 (1.82)	5.1% -1.7%

 

 

Competitor’s analysis:

The Xy is competing with the world’s most experienced and successful companies as mentioned below.

 IBM

IBM is widely considered as one of the oldest computer and technology firms currently in operation. Its constancy in generating innovations in products has elevated it beyond the market's top rivals. It is also recognized for conducting considerable research and development in order to innovate products and set the pattern for other businesses. It is a market leader in software, hardware, and other technology-related support services. This producer likewise focuses on creating high-value items that are appropriate for the different target markets. Its long existence in the sector has allowed it to understand the requirements and expectations of its customers and, as a result, deliver what satisfies those expectations.

 

ASUS

Asus is a global technology company situated in Taipei, Taiwan. It specializes in the production of several It products such as computer hardware, cell phones, laptops, workstations, networks routers, and other multimedia and digital devices. Its motto, In Search of Incredible, is a strong indicator of the company's commitment to dominating the global computer and technology markets.

Asus has established itself in the worldwide market and was placed among the top five major PC suppliers in terms of unit sales in 2015. Asus has a higher chance of becoming a top contender in the computer and technology business due to its ongoing improvement and research on numerous product elements. Asus is one of the top XY competitors in the laptop and desktop industry due to its extensive distribution and covering of lower economics and developing markets.

 

Hewlett Packard

Other than IBM, HP Inc is undoubtedly XY's most formidable opponent in the market. Prior to its demise, it was possibly the highest-ranking American multinational corporation in terms of unit sales. It created and sold a diverse variety of computer hardware and software products to customers ranging from small business units to huge blue-chip corporations and government agencies. The majority of the items it specializes in manufacturing are PCs, servers, printers, and different image equipment.

 

Lenovo

Lenovo is a multinational Chinese technology firm based in Beijing. Lenovo, like XY, focuses in the design, manufacture, and sale of a variety of technology devices, software, network servers, and workstations. It is one of the most powerful XY competitors due to its extensive distribution.

 

Microsoft

Microsoft is the one of the top and stronger competitors of the company, It widely recognized for its supremacy in computer operating system software. It has amassed a sizable market share, particularly in laptops and desktops, due to MS-DOS and, more recently, the MS Windows series.

However, it has expanded through into technology hardware market, developing game consoles, cellphones, and computer-related devices. Microsoft purchased Nokia and began manufacturing Windows-powered handsets under the Nokia brand. However, a recent shift in leadership has enabled Microsoft to reduce its manufacture of physical devices and instead focused on software and cloud-based services.

 

Importance of the Innovation in the Company

As a concept, innovation refers to the process through which an individual or organization conceptualizes completely fresh businesses, processes, and ideas, or approaches current products, processes, and ideas in new interesting ways. Innovation is at the heart of entrepreneurship. All prospective company leaders should grasp what innovation is, why it is essential, and how they may use it in their own organizations.

 

Reasons Innovation Is Important for Businesses

Innovation is a key part of owning a successful business. It can help you:

v  Innovation grows your business. Business growth means, ultimately, increasing your profits. Successful innovation allows you to add value to your business so that you can increase your profits—if you don’t innovate well, your business will plateau

 

v  Innovation helps you stay ahead of the competition. With globalization and a rapidly changing market, there are more competing businesses than ever before. Innovative thinking can help you predict the market and keep up with customer needs. If your business doesn’t innovate, you’ll watch innovative companies bring new ideas to the marketplace, and you’ll have to scramble to keep up.

 

 

v  Innovation helps you take advantage of new technologies. Technology (and especially artificial intelligence) is evolving faster than ever before, which means that there may be new, more efficient technologies to make better products, to offer your services, to market your business, or to track your performance with analytics. By taking advantage of these new technologies for process innovation, you’ll be able to optimize your business and gain a competitive advantage over your competitors

 

 

Difference between innovations and inventions:

Though they are sometimes used interchangeably, invention and innovation are not the same thing. An invention happens when you create an entirely new concept, but an innovation occurs when you improve on an existing idea.

Why does the difference even matter?

The difference between invention and innovation is important for your organization because it affects business strategy.

Current Situation:

After the 5year’s performance analysis, we approached to the conclusion, There is higher ratio of the reduction in sales and new innovation in products and strategies, there is much need to make new innovation development strategies for organization that focus on the vision, Team work management, supply chain, distribution channels, as well as time for new inventions, because if the current situation remains same, the company is going to face huge loss, there is also the risk of closing the company.

Problems:

ü  Poor productivity Rate

 

ü  Increase the complaints about the revision from clients.

 

ü  Reason: The majority of the employees are inexperienced, lack resources, others are allocated to the wrong tasks and projects.

 

ü  Increase number of work Error:  the weakness of team management, and order completion reductions, there are various revisions of procedures to follow resulting unsustainability. 

 

ü  There are several delays in submitting output to client. there is also decreasing customer retention rate.

 

 

Action Plan:

Team Management:

Director: To Assign an efficient team leader, who can oversee the functionality of a workgroup by providing guidance and instruction.

Manager or supervisor: will assist the director, and will Responsible for overseeing all activities within a team of relevant depart.

Strategist specialist: will be responsible for deciding how to approach tasks and develop a plan to accomplish them for Xy.

Communicator: Responsible for distributing information to team members and stakeholders.

Organizer: Responsible for keeping track of and structuring various tasks, employees and documents.

Each role includes responsibilities that can overlap with others. For example, a manager and communicator both include discussing strategies with a team and giving verbal directions to complete tasks. Build the Right Team Management for Company Success and Invest in the right tool for the team and improve task allocation Implement the correct work procedure for the team to follow.

 

 

 

 

 Business Strategy

New Innovation Development in XY Company, following directions are for change that Xy Organization can take.

No more middleman:

No more middleman:  start out as a direct seller, first using a mail-order system, and then taking advantage of the Internet to develop an online sales platform.  begin integrating online order status updates and technical support into their customer-facing operations.

 XY’s Internet sales should be reached an average of $4 million per month.  due to the cost-savings associated with cutting out the retail middleman. This moves away from the traditional distribution model for XY products sales will play a significant role in XY’s growth.  Additionally, an important side-benefit of the Internet-based direct sales model is that it generated a wealth of market data the company can use to efficiently forecast demand trends and carry out effective segmentation strategies.

 

Price Cut out

XY position in the market will strong due to distribution strategies as the owner Mr. Zee decided needs to cut out the middleman and connect directly with the client, offering products without the cost of a distribution route and saving the costing of indirection distribution in order to use it in reducing the price of the product. Initially, XY will distribute directly to consumers since they could buy Xy devices, equipment, and other software created to their own specifications. With a total turnover of $73 million in the first year of trade, it appeared that XY would be a formidable competitor in the Personal IT Market in order to differentiate itself from the other players in the market.

 

Distribution Channels

The Company needs to divide its marketing distribution channels it to two categories “Direct Channel and Indirect Channel” to make the hold in the market, by removing the Intermediary in the channel process this enables XY to have greater control over their product and control the price as there is no retail outlet attempting to price cut their all It products and services.  This is an essential marketing strategy for Xy as they can target consumers looking for the convenience of purchasing a PC or any other It product which will tailor to their needs at an affordable price with comparable quality to the store brought product.  A Direct Chanel is easy for the consumer and fits with XYs’ consumer behavior.

 

 

Innovative distribution models

Enhancing customer value:

By avoiding retail, and to the other channel such as warehouses, Wholesalers, and agent stores, XY will be able to boost margins while also providing consumers with a lower price on their products and services. This change will also allow clients to customize IT devices, equipment, and other software services to meet their individual requirements. XY's innovative distribution model will result in a huge increase in consumer value, propelling the business to a market leadership position.

 

Virtual integration:

On the production front, the company needs to adopt an aggressive "virtual integration" strategy. XY needs a consistent supply of high-quality IT components, thus management cannot integrate backward Instead, the business requires establishing sustainable ties with a small number of well-known IT component makers. XY also requires its key suppliers to establish inventory hubs near its own assembly plants. This allowed the company to communicate with supplier inventory hubs in real-time for the delivery of a precise number of required components on short notice.

This “just-in-time,” low-inventory strategy will reduce the time it took for XY to bring new innovation models to market and will result in significant cost advantages over the traditional stored-inventory method. This will be particularly powerful in a market where old inventory quickly fell into obsolescence.

XY also can openly share its production schedules, sales forecasts, and plans for new products with its suppliers. This strategic closeness with supplier partners will be allowed XY to reap the benefits of vertical integration, without requiring the company to invest billions.

 

Allow data to drive:

 Using the readily available sales and customer feedback data generated by online sales, XY will be able to remain ahead of the demand curve in the quickly expanding IT industry. Similarly, sales and feedback data will be useful in identifying new methods to improve customer value across all of XY's core consumer categories. Whether your organization is large or small, it is critical to monitor data that might identify developing trends, shifting attitudes, and other vital possibilities.

 

 

New Innovations in Products:

v  Gather ideas based on customer studies and research using approaches such as online methodologies, focus groups, in-depth interviews, etc.

v  Develop product concepts that fit consumers’ needs and preferences. At the same time, conduct a competitive analysis to make sure the concepts resonate within the larger competitive landscape.

v  Validate and prioritize concepts through concept testing as a way to compare and move forward with the ones that perform at the top.

v  Assess the market by using a customer segmentation process to form a picture of your target customer, and determine the concept(s) that may be the most profitable.

v  Refine the concept by developing a prototype to put into a formal product development process and incorporate user testing to iterate further.

 

Conclusion:

 The Xy can maintain its sustainability success in the market by improving its team management, As the company team work has been very poor in the past, and the direct effect can be seen in company growth loss and sale reducing, As well as Xy now have new method of business innovation strategies in product and business management, which can play the significant role in company growth and to regain the high sales ratio.    

 

 

 

 

 

Innovative distribution models

Enhancing customer value:

By avoiding retail, and the other channel such as warehouses, Wholesalers and agent stores, XY will be able to boost margins while also providing consumers with a lower price on their products and services. This change will also allow clients to customize IT devices, equipment, and other software services to meet their individual requirements. XY's innovative distribution model will result in a huge increase in consumer value, propelling the business to a market leadership position.

 

Virtual integration:

On the production front, the company needs to adopt an aggressive "virtual integration" strategy. XY needs a consistent supply of high-quality IT components, thus management cannot integrate backward Instead, the business requires establishing sustainable ties with a small number of well-known IT component makers. XY also requires its key suppliers to establish inventory hubs near its own assembly plants. This allowed the company to communicate with supplier inventory hubs in real-time for the delivery of a precise number of required components on short notice.

This “just-in-time,” low-inventory strategy will reduce the time it took for XY to bring new innovation models to market and will result in significant cost advantages over the traditional stored-inventory method. This will be particularly powerful in a market where old inventory quickly fell into obsolescence.

XY also can openly share its production schedules, sales forecasts, and plans for new products with its suppliers. This strategic closeness with supplier partners will be allowed XY to reap the benefits of vertical integration, without requiring the company to invest billions.

 

Allow data to drive:

 Using the readily available sales and customer feedback data generated by online sales, XY will be able to remain ahead of the demand curve in the quickly expanding IT industry. Similarly, sales and feedback data will be useful in identifying new methods to improve customer value across all of XY's core consumer categories. Whether your organization is large or small, it is critical to monitor data that might identify developing trends, shifting attitudes, and other vital possibilities.

 

 

New Innovations in Products:

v  Gather ideas based on customer studies and research using approaches such as online methodologies, focus groups, in-depth interviews, etc.

v  Develop product concepts that fit consumers’ needs and preferences. At the same time, conduct a competitive analysis to make sure the concepts resonate within the larger competitive landscape.

v  Validate and prioritize concepts through concept testing as a way to compare and move forward with the ones that perform at the top.

v  Assess the market by using a customer segmentation process to form a picture of your target customer and determine the concept(s) that may be the most profitable.

v  Refine the concept by developing a prototype to put into a formal product development process and incorporate user testing to iterate further.

 

Conclusion:

 The Xy can maintain its sustainability success in the market by improving its team management, As the company teamwork has been very poor in the past, and the direct effect can be seen in company growth loss and sale reduction, As well as Xy now have a new method of business innovation strategies in product and business management, which can play the significant role in company growth and to regain the high sales ratio.