Cross-Border Strategy Report
TechnologyOne limited Company
Name: Milan GurungStudent ID: 1110042
Course: Global Business Management (MGT 704)
Internationalization is one of the strategies that an organization utilize to expand their market base. Technology One limited has been successful in its internationalization efforts as a result of having adequate resources and the requisite capabilities to outcompete its competitors. Being an enterprise software solutions company, it relies heavily upon its research and development team to come up with innovations that meet the needs of the consumers. Basing on the industrial analysis, the company has a competitive edge over its rivals and further enhances its ability to face the competitive pressure in the international environment by adopting differentiation as its generic strategy.
Table of Contents
TOC o “1-3” h z u Executive Summary PAGEREF _Toc523435937 h 11.0 Introduction PAGEREF _Toc523435938 h 32.0 Basic History of Company PAGEREF _Toc523435939 h 43.0 Vision, Initiative and Growth: PAGEREF _Toc523435940 h 53.1 Vision: PAGEREF _Toc523435941 h 53.2 Initiative: PAGEREF _Toc523435942 h 63.3 Growth: PAGEREF _Toc523435943 h 74.0 internationalization strategy PAGEREF _Toc523435944 h 85.0 Environmental Factors that TechnologyOne considers when responding to pressure in competing globally PAGEREF _Toc523435945 h 95.1 Internal Environment PAGEREF _Toc523435946 h 95.2 External Environmental PAGEREF _Toc523435947 h 116.0 General Stratery PAGEREF _Toc523435948 h 127.0 Conclusion PAGEREF _Toc523435949 h 138.0 References PAGEREF _Toc523435950 h 14
TechnologyOne Limited is one of the Australian enterprise software solution company that sells, develops, markets and implements customized enterprise software solutions. The organization offers an array of software that includes supply chain, financials, business intelligence, asset management, stakeholder management, payroll and human resources, budgeting and forecasting, enterprise cash receipting, enterprise content management, and performance planning. The company provides the solution to different customers that include health and community services, project and asset-intensive sectors, education, utilities, local government, corporations and the financial service industry. Geographically, TechnologyOne Limited operates in Australia, New Zealand, Malaysia, United Kingdom, and South Pacific, through its wholly-owned subsidiaries and offices. Generally, the company is headquartered in Brisbane, Queensland, Australia. The analysis considers the history of the organization, its vision, initiative and growth, the internationalization strategy adopted by the company, the internal and external forces that are impacting on its international operations and the generic strategy that it adopts (En.wikipedia.org, 2018).
2.0 Basic History of Company TechnologyOne becomes founded as an entrepreneurial company in 1987 by Adrian Di Micro who determined a possibility to expand new technology monetary and software (accounting based) program for the government department and corporations by using making use of the database technology. At some point of this time, the IT enterprise changed into on the infancy level and subsequently, it offered a possibility for the organization to exploit the enterprise that by means of then had minimum competition whilst having an exquisite potential for increase. Throughout this time, banks had been not willing to support the startup technology firm, which pressured Adrian, who desired to compete with worldwide software companies, to search for financial assistance from his buddies, John and Dugald MacTaggart, who were a success in leather-based processing. Having was given the start-up finance from his two pals, TechnologyOne got here up with its first research and improvement center in a demountable workplace in the automobile park of Mactaggart conceal processing plant in Hemmanant, a commercial suburb of Brisbane, giving upward push to Australia’s biggest employer software employer (Roth 2017).
3.0 Vision, Initiative and Growth:
The Company imaginative is to transform business, thereby creating life simple and easier. In this case, the corporation strives to come up with and provides services and satisfactory products which can be capable of remodeling companies and make clients lives simpler. Generally, the aim is justified by using the company’s model of leadership, and it willpower to dedicate user experience and its perception. The enterprise’s core perception include simplicity and no more complexity, market dedication and focus, and the corporation vision (TechnologyOne, 2017).
They realize the fact, without clients, there could be no enterprise and consequently, their experiences define technologyOne successful. Moreover, a corporation believes that during leadership as opposed to control because the survival of the commercial enterprise depends on its ability to give you bold dreams and to inspire and lead its people to achieve high-quality things (TechnologyOne, 2017).
For the reason that the enterprise has been in operation since 1989 and has been hitting, It believes that it has a duty of giving back to the people. As such, the company has mounted TechnologyOne foundations to institutionalize giving back to the community-people while the initiative has been named TechnologyOne. The initiatives that were initially established more than 30 years have defined the process the enterprise conducts its commercial business enterprise (TechnologyOne, 2017).
One of the initiatives adopted by the organization include putting its customers first through compelling customer experience in applicaton to enhance the positive customer experience as a way of enhancing its competitiveness (TechnologyOne, 2017)
Application managed services play a major role in enhancing productivity and facilitating cost efficiency for customers through services which are characterized by continuous improvement and cost efficient software management (TechnologyOne, 2017)
The enterprise has a culture of innovation, creativity and collaboration that enables it to come up with superb simple software solutions which might be able to assemble the client requirements. The organization invests heavily in research and development program to facilitate creativity and innovation that set the business aside from its competitors (TechnologyOne, 2017)
The marvels program was launched in 2017 which is an annual awards function aimed at rewarding worthwhile and recognization the exceptionally performing staffs. In addition, the organization provides career growth opportunity for its staffs both locally and overseas (TechnologyOne, 2017)
The power of best-in-class software strives to make the software developed by the company easier to use while providing an arry of functions and features (TechnologyOne, 2017)
Enterprise software as a service (esaas) solution is unique in the marketplace as the company is an only vendor that offers useful solutions to whole organization (TechnologyOne, 2017)
Software as a service has been instrumental in TechnologyOne growth where, in 2017, 90% of the brand new customers opted for it. The growth has been facilitated via investment in new technology, indicating that SaaS will represent a full-size source of the corporation’s boom in future (TechnologyOne, 2017).
The corporation has attained significant geographical growth, it has 14 offices globally, located in each territory and state of Australia and internationally, it has a presence in the United Kingdom, New Zealand, Asia, and South Pacific (TechnologyOne 2017).
The company has strived to expand its vertical market where it operates in eight specific vertical markets and offers pre-configured solutions as a mean of addressing each market (TechnologyOne, 2017).
As an important initiative for growth, the corporation adds value to the existing customer through developing a dedicated advertising and marketing and sales approach that furnishes customers with information on latest developments, undertakes continuous improvement while adopting superb technologies and innovative business models (TechnologyOne, 2017).
The company has strived to expand the range and depth of its products, which has made the organization to be renowned as one of the World’s most comprehensive company software suite. The enterprise has continues to increase its products offerings through additional functions and features (TechnologyOne, 2017).
4.0 Internationalization Strategy
Basing on the vision, growth and initiatives undertaken by the company, it is important to note that the company has managed to utilize its internal strengths, capabilities and resources to effectively internationalize its functions. At the moment, the organization has successfully invested in a number of nations that include New Zealand, Asian Pacific, United Kingdom, and Asia (Hotzinger, 2014).
The principal foreign entry mode adopted by TechnologyOne Limited is a fully owned subsidiary attained through acquisitions and setting its own offices. The notable acquisitions include Jeff Roorda ; Associates that was acquired on October 2, 2015, ICON software acquired on January 30, 2015, Digital Mapping Solutions acquired on May 8, 2015 and Outcome Manager acquired on August 1, 2006 (Roth 2017). The absolutely owned subsidiary has presented several advantages to the company and these include managerial autonomy, protection of technological know-how, and the ability of the organization to coordinate its operations globally. The main challenge that the entry mode presented and will continue to face in the quest for further expansion in new foreign market include high development cost, the problem of integrating managerial and operational functions between TechnologyOne Limited and the acquired firms, political risks in the foreign markets and economic uncertainty especially in regard to foreign exchange rate and adverse economic conditions such as high interest rates (Ghauri ; Kirpalani 2015).
To effectively operate in the overseas nation after it has set its operations, there are several internal and external factors that may facilitate or hinder the competitiveness of the company and the overall performance and growth.
5.0 Environmental Factors that TechnologyOne considers when responding to pressure in competing globally
5.1 Internal EnvironmentIn analyzing the inner factors that the organization uses to respond to global pressure, the business takes resource based consideration that involves the value of the firm, rarity of the company, immutability and the enterprise specific resources. The model used in analyzing the inner factors is the VRIO framework.
Value: The value factor can be analysed from the perspective of tangible and intangible resources. The tangible sources are finances where the company is profitable with enough finances to facilitate research and improvement that is instrumental in arising with new enterprise software solutions that fulfill the wishes of customers, thereby enhancing its competitiveness. In terms of intangible sources, the organization has well trained and motivated members of the team that it develops and trains continuously, thereby enhancing their creativity in growing new solutions that meet the changing marketing needs. Generally, it is through the research and development team that has enabled the company to come up with Enterprise Software as a Service (eSaaS) solution that provide enterprise solutions for complete company which has been instrumental for the rapid growth of the business enterprise and enhanced the brand reputation of the organization (Fernandes et al. 2015).
Rarity: The technology adopted by the organization to develop software solution is rare due to a strong sense of secrecy adopted by the company while at the same time the organization adopts customization to develop its products thereby growing specific products based on specific requirement of the client (Van 2015).
Imitability: Due to powerful expertise management and continuous innovation where the organization regularly develops the new solution, it is miles hard for other firms to imitate the products, thereby enhancing the aggressive advantage of TechnologyOne (Chang et al. 2015).
Organization: The Organization has the board of directors who coordinate and mobilize the requisite assets and operations needed to develop innovative solutions. Through the top to the bottom management system, the Company guarantees that it coordinates and makes corporation decision from the headquarters to international subsidiary, thereby ensuring that there are clarity and coordination of all activities inside the company (Hudzik 2015).
Generally, based on the framework (VRIO), it is evident that both the tangle assets that entail finances and technology and the intangible sources consisting of brand reputation, human resources are good enough to enable the enterprise compete successfully in the international marketplace.
5.2 External EnvironmentalThe external environmental elements are those that the Company is unable to control but can adapt based on change management and risk management strategies. These can be analyzed based on the industrial analysis.
In analyzing the industrial environment, the Corporation takes industry based consideration using porter 5 forces that entail threat of latest entrants, competition intensity, the threat of recent substitutes, the bargaining technique of consumers and the bargaining technique of the suppliers (Tallman 2013).
The competitive intensity is excessive because there are numerous technology companies, both upcoming and the established ones in the market, which compels TechnologyOne Limited to develop innovative and high-quality products and solution and undertake intense marketing campaign (Buckley ; Ghauri 2015).
The hazard of recent entrants is low because the technology industry requires highly skilled personnel while the established companies have strong brand that makes it expensive and time consuming for lastest entrants to capture the marketplace (Raghunath ; Rose 2016).
The bargaining strength of the supplier is excessive because there are few suppliers who’re skilled and capable of providing technology-based supplies. In this case, the organization forms a partnership with renowned providers, which is vital in negotiating cost and ensuring a constant flow of supplies (Foss 2016).
The threat of alternative is excessive due to the existence of a high number of software developers. In this case, the company develops innovative solutions that can be customized to have a strong grip on the marketplace (Mckeown 2012).
The bargaining strength of the clients is high due to software existence from different developers and hence, the switching fee is relatively low and hence, to maintain clients, it is imperative for the company to adopt innovation and creativity in developing quality software solutions (Buckley & Ghauri 2015).
6.0 General Stratery
The competitive strategy employed by TechnologyOne limited is the differentiation strategy. The products target specific users in different fields and develop high-quality innovative products to suit their needs. The organization has research and development team that strives to develop customised software solution with superb features and effective functionality to meet different needs of customers in different countries. The organization adopts a low volume-high margin approach to sustain its growth and profitability while at the same time maintaining a competitive edge over its competitors (Grant 2016).
TechnologyOne Limited, an entrepreneurial firm, has been successful in the market as a result of effective management, innovation and creativity spearheaded by its research and development teams, its vision and initiatives and ability to exploit its internal strength in its internationalization method. Through effective use of strategy, the organization has managed to expand its operations globally while its good performance in the international market indicates that the organization will attain tremendous growth in future.
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