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IBMConsultingGroup StrategyDepartment February,1994 Presentedby INPUT TheAtriumatGlenpointe 400FrankW.BurrBlvd. Teaneck,NJ07666 201-801-0050 201-801-0441(fax) 1^ IISIPUTl PROFILE: ANDERSENCONSULTING IBMConsultingGroup StrategyDepartment February,1994 Presentedby INPUT TheAtriumatGlenpointe 400FrankW.BurrBlvd. Teaneck,NJ07666 201-801-0050 201-801-0441(fax) TableofContents Section Page A, Overview 1 1. ExecutiveSummaiy 1X 2. FirmBackground 3 B. Details 4 1. FinancialPerformance 4 2. Strategy 8 3. MarketModel 17 4. DeliveryModel 23 5. IntellectualCapital 29 6. Infrastructure 33 7. People 37 C. Analysis 39 1. CoreCompetencies 39 2. StrengthsandWeaknesses 39 3. KeyDifferentiators 40 AndersenConsulting A,^ . OVERVIEW 1. EXECUTIVESUMMARY •VisionStatement AndersenConsultingplanstohelplargecorporationsandgovernment organizationsbemoresuccessfulintheachievementofbusinessgoals throughtheuseofinformationtechnologyandotherinnovationsby meansofitsbusinessorientedapproachtomanagementconsulting, methodologiesthataddressallprocessesinvolved,anditsknowledge ofhowtoutilizeinformationtechnology. •MarketImage AndersenConsultinghasanimageofaverysuccessfulvendorinthe saleanddeliveryofconsultingandinformationservicesthatwillsolve businessproblemsthroughtheuseofinformationtechnology. Andersenisalsothoughtofasavendorthatperformsworkinavery systematicmannerwithmethodologiesforconductingallaspectsof consultingandinformationserviceswork. •CoreConsultingCompetencies AndersenConsultingprovidesstrategicandITconsultingserviceson astandalonebasisandtogetherwithSIandprofessionalservicesto almosteverymajorverticalmarketgroup. Andersenprovidesfront- endstrategyconsulting,BPRandchangemanagementconsultingas wellasrrconsultingassociatedwithprojects. ACutilizesaconsulting methodologythatcoversBPRandchangeprocessescalledValue- DrivenReengineering. Servicesareofferedonaworldwidebasisfromofficesin47countries. Over50%ofAC'sbusinessisfromofficesoutsidetheU.S. 1 ACfocusesitschiefattentioninmarketingandplanningfor consultingservicesandotherbusinessonasetofmarkettargets. The chiefmarkettargets,financialservices(whichisdefinedtoinclude banking,brokerageandinsuranceforAndersenConsultinjg),utilities, products(whichincludesdiscreteandprocessmanufacturing, distributionandairlinesforAndersenConsulting),healthcare, telecomandgovernment(federal,stateandlocalgovernment). •FutureDirections AndersenConsultingistakingstepstostrengthenitsBPRcapabilities throughfurtherdevelopmentofitsmethodologyforBPRandchange managementprocessescalledValue-DrivenEngineeringaswellas throughtrainingofadditionalpersonnelinthismethodology. Furtherresearchisbeingcarriedouttoidentifychangesinsoftware andhardwareproductsthatwillbeusedwithclient/servertechnology toenableAndersenConsultingtomaintainitsleadinconsultingfor theuseofthistechnologyaswellasimplementingsolutionsthat utilizeit Analliancehasbeenmadeandresearchisbeingundertakento enableAndersenConsultingtomaintainaleadershippositionin consultingforandimplementingimagesystemtechnology. AneffortisbeinglaunchedtostressthestrengthofAndersen Consultingasanagentofchangeintheuseofnewinformation technologyandbusinessinnovationorreengineering. Aneffortisalsounderwaytodevelopmorestrengthinsoftware engineeringforfuturework. •KeyHighlights AndersenConsultinghasalargenumberofjobsandvolumeof consultingwork,andprojectionsofitsgrowthareatacompoimdrate ofover15%. TheinvestmentintrainingwhichAndersenConsultingmjikesforits staffguaranteesahighlevelofstaffsupportforthesaleand performanceofconsultingandotherservices. 2