By: Jackie Bergey, Rachel Jones, Jordan Nichols, Danielle
Stein, and Meredith Storey
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Table of Contents History and Current Situation Industry and
Competitive Analysis Analysis of Competitive Situation Strategy
Issues Strategy Implementation/Execution Feedback Questions
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Hyland Software Founded in 1991 Developer on OnBase Enterprise
Content Management Software Solution 300 domestic and international
partners More than 10,300 customers Partners with Microsoft, HP,
Oracle, and more Over 1,200 employees worldwide $30 million annual
revenue reinvested back into company for research and
development
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Core Values We conduct ourselves with honesty, integrity, and
fairness in our relationships with our partners, customers,
employees, and shareholders. We deliver configurable business
solutions that are intuitive to use. Our customers are confident
when navigating our solutions. OUR CUSTOMERS ARE OUR PARTNERS! OUR
EMPLOYEES ARE OUR FAMILY! WE ARE MOTIVATED PEOPLE PASSIONATLEY
DEDICATED TO THE SUCCESS OF THE COMPANY. http://www.youtube.com/wat
ch?v=Odlo9yJjx54 http://www.youtube.com/wat ch?v=Odlo9yJjx54
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Corporate Responsibility Mission: Hyland Software is committed
to giving back to the communities where we live and work, with a
special focus on helping children learn more efficiently and
effectively through supporting intuitive, sustainable programs with
money, time, and technology. In addition, were committed to
furthering our internal Core Values and responding to the interests
and concerns of our employees and partners.
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Corporate Responsibility
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Executive Team -CEO A.J. Hyland is the CEO and President of
Hyland Software. Joined the company in 1993 Quality Assurance team
in 1995, moved up to Sales Department Promoted President in 1997
and in 2001 named CEO. B.S. in Business Administration from
Georgetown University.
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Executive Team Chris Hyland is the EVP and CFO. Joined Company
in 1992 and served as chair of the board since 2002. B.A. Economics
from Ohio Wesleyan University Miguel Zubizarreta is the EVP and
CTO. Responsible for the architecture and product development
direction of the OnBase product line. Bill Priemer is the Executive
EVP and COO. Responsible for driving growth and delivery of all
Hyland clients Includes global sales and marketing, professional
services, technical training and Hyland's industry- leading
customer support.
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Best-Cost Provider Strategy
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Objectives Strategic Financial Create good product Active
participant in community Building valuable relationships with
employees and customers Be profitable but Create a positive impact
in people before money is involved
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Industries Dominant Economic Features Supply and demand
conditions Pace of tech. change Degree of product differentiation
Number of buyers Vertical integration Economies of scale Scope of
competitive rivalry Product innovation
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Competition Among the Leaders of the ECM Market
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Threat of New Entrants The threat of additional entry into the
market is low because it takes high capital investments to start an
ECM company and combined with the low rate of change it makes it
even more difficult to start a substantial company base.
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Bargaining Power of Suppliers There are no suppliers to Hyland
in the fact that they generate the systems required to use ECM. The
suppliers of the hardware on the other hand have low bargaining
power with Hyland because there are a lot of hardware manufactures
out there and if the price became too high Hyland could easily find
another source.
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Bargaining Power of Buyers Bargaining power between the buyers
and the sellers of ECM systems is moderate in strength. The need
for a good ECM system is high and puts pressure on companies like
Hyland to produce a good product and constantly update. However the
cost of change is high and lowers the threat of change.
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Threat of Substitutes Substitutes for ECM or other HRIS firms
are relatively low considering how hard it is to change from one
system to another. For a company to change it would take a lot of
time and money to fully incorporate the system. With that being
said the competition between companies is fierce because of that
very fact. They want to keep customers.
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Rivalry Among Competitors The rivalry among sellers is high
because once a company secures a customer it usually will hold that
customer for a number of years. This fact makes it critical for a
company to garb and maintain as many customers as it can to remain
competitive.
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Drivers of Change A big driver of change in the industry would
be the state of the economy. Depending on what companies can afford
determines whether or not they have money to spend on software.
Although our software will ultimately help the bottom line and give
a substantial ROI, sometimes companies have a hard time justifying
the purchase of ECM software. (Amanda Gerding HR professional at
Hyland Software) Increasing globalization of industry Changes in
long-term industry growth rate Product innovation/technological
change Diffusion of technical knowledge
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Which Companies are in the Strongest/Weakest Positions? Hyland
is partnered with Microsoft, HP, Oracle, SAP, Lawson, Esri and
CITRIX.
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Strategic Moves Rivals Will Make The basic content management
requirements of organizations have become more complex. So has the
definition of what comprises basic content from text, to audio, to
video, to various types of social-media content. Content management
technologies have also matured. Market consolidation has enabled
leading vendors to deliver a broader set of solutions with
combinations of technologies, although, even when buying from a
single vendor, it can still prove a challenge to get its organic
and acquired components to work together seamlessly. (Gartner)
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Key Success Factors at Hyland New technology. Being proactive
in identifying new markets or new customers. At Hyland we treat our
customers as our partners, treating them with integrity and respect
gains their trust. Dedicated to keeping employees happy, the
employees are our family. (Amanda Gerding)
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Is the Industry Attractive? The industry is moderately
attractive for a few different reasons. Unattractive: financially
difficult to cross over entry barriers Most firms already cemented
into market and are clear leaders. Attractive: Potentially
profitable in growing economies were new markets are growing and
businesses are needing ECM systems
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Hylands Current Strategy: Living Core Values Conducting
business with honestly, integrity and fairness in relationship
Delivering configurable business solutions Treating customers as
partners Treating employees as family Remaining dedicated to the
success of the company
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SWOT Analysis Strengths Online growth Loyal customers Committed
workers Pricing Strategy Weaknesses No essential range Economic
Slowdown Opportunities Emerging market and expansion abroad Product
and services expansion Threats Competition External Changes
Competitive Position Industry Attractiveness Competitive
Strength/ Market Position
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Strategic Use of Benchmarking Benchmarking: Tool for learning
which companies are best at performing particular activities and
then use their Best Practices to improve the cost and effectiveness
of a companys own internal activities. Nontraditional Benchmarking
Quality Assurance Development
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Strategic Issues Keeping up with the Competitors Economic
Slowdown
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Collaborative Strategies Client Information E-bill Efficiencies
in Departments Consolidating diverse repositories
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ECM Statistics Enterprise content management (ECM) spending
actually grew, by 5.1% in 2009 and by 7.6% in 2010 (Gilbert). ECM
software revenue alone was $3.9 billion in 2010. Project that this
growth will continue at an impressive CAGR of 11.4% through 2015
(Gilbert).
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Vertical Integration Largest Vertical Market Acquisitions
Vendors 6 main industry segments
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Outsourcing Use a third party system Epic, GE, Centricity,
Cerner, Eclipsys, etc.
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Offensive or defensive strategies OnBase ECM Suite Vertical
expertise Vertical market focus Clear Strategy Paperless operation
Strong Management
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Value Chain Activities Supply Chain Management
OperationsDistribution Sales and Marketing ServiceProfit Margin
Product R&D, Technology, and Systems Development Human
Resources Management General Administration Primary Activities
& Costs Support Activities & Costs
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Foreign Markets Worlds largest independent & highest Growth
ECM Acquisitions eWebHealth U.S., Brazil, U.K., Japan Industry:
Content and Document Management Software & Computer
Software
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Growing Markets Asia/Pacific Singapore Australia China
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Primary components of the companys approach to strategy
implementation? Recruiting/maintaining the right employees is our
core competency Employees that are dedicated to honesty, integrity,
and the success of the company A lot of money is allocated to
keeping our employees dedicated to the company: Community events,
day care, work place development The company understands that when
it is evident that management cares about them, they will work
harder Hyland created policies that lay the foundation but allow
for employees some breathing room to grow the ideas and work as
hard as they desire. Constant feedback is requested from upper
management to the partners (customers) and through employees
Management is constantly improving all of their business procedures
Software companies have the best operating software that shares
information quickly throughout the entire business No monetary
rewards are used at Hyland, because the management doesnt need to!
They are so successful in simply producing a great culture with
lots of perks that the employees always feel driven and motivated
to do their best Hyland knows that a good Corporate culture is key
to successful strategy implementation, we pride ourselves in
honesty, integrity and fairness not only between employees and
customers, but to the shareholders as well. Top level managers have
a great relationship with all co-workers, often times the high
level management will sit in on random meetings to show their
interest and care in all aspects of Hylands company.
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Primary components of the companys approach to strategy
implementation Recruiting/ maintaining the right employees $$$
allocated to ensuring the employees are happy and dedicated It
evident that an employee reacts when he knows mngt. cares about
them Constant feedback from employees and customers (partners)
Software companies produce their own OS to share info across the
company No monetary rewards needed! Pride themselves on being
honest, integral, and fair to employees, customers, and
shareholders Sr. Mngt sits in on random meetings to show interest
in all levels of business
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Key Policies and Operating Practices First and foremost: great
corporate culture Constant strategy improvement based on surveys
and feedback
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Strong Company Culture TRADITIONS FUN, ENERGETIC FAMILY VALUES
to minimize your focus off work, well help you ease your outside
factors INDIVIDUAL IMPROVEMENT- changing lifestyles, health
benefits LET US MAKE THIS AS EASY AS WE CAN ON YOU. Core values,
beliefs, business principles, traditions, work practices, operating
styles pg 232
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Strategy Implementation Report Card: A- Great job of staffing,
retaining the right employees Great evidence of caring management
and dedicated employees Phenomenal corporate culture: lifestyle,
family, career development, friendly, FUN Constant motivation to be
better Frequent surveys to improve their strategy
implementation
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Feedback Build strategic alliances and collaborative
partnerships Keep eyes on emerging markets Make sure all choices
continue to exercise 5 core values Continue to put in 15% into
research and development Create a global culture Branch more into
social content management not just transaction in foreign
markets
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Bibliography Hyland Software. "Why Work at Hyland Software,
Developer of OnBase? - YouTube." YouTube - Broadcast Yourself. 24
Feb. 2011. Web. 29 Nov. 2011.. "Hyland Software Executive Team -
Chris Hyland." Enterprise Content Management (ECM) Software |
Document Management | Document Imaging | Hyland Software. Web. 29
Nov. 2011.. "Magic Quadrant for Enterprise Content Management."
Technology Research | Gartner Inc. 16 Nov. 2011. Web. 29 Nov.
2011..