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Page Jean-Noël Gorge 3 mai 1999 1/58 MarKant e c o n s e i l s Jean-Noël Gorge, oct 11th 2006 1/29 EPITA EPITA IT Markets IT Markets Basic Finance and Marketing Basic Finance and Marketing Oct 11th 2006 Jean-Noël GORGE

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Page 1: Page 1 Jean-Noël Gorge 3 mai 1999 1/58 MarKant e c o n s e i l s Jean-Noël Gorge, oct 11th 2006 1/29 EPITA IT Markets Basic Finance and Marketing Oct 11th

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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 ?