Businessmodel of CompuCom

Customer Segments

CompuCom has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms across industries needing IT products/services.

Value Proposition

CompuCom offers four primary value propositions: accessibility, innovation, performance, and brand/status.

The company creates accessibility by offering a wide variety of options. Over the past 30 years it has acquired several firms with different types of offerings, adding capabilities in everything from technology outsourcing and software application development to government services. This activity has enabled it to greatly expand its portfolio and appeal to a broader range of clients.

The company places a strong emphasis on innovation. It maintains the Innovation Delivery Framework, a program through which it works with clients to target their desired future state, identify necessary changes with a minimal impact on end users, and specify relevant IT solutions.

The company has demonstrated strong performance through tangible results. High-profile examples of positive outcomes for its clients include the following:

• FirstGroup America used CompuCom’s solutions to synchronize IT service delivery, resulting in unified IT services processes, increased uptime, and cost savings of almost $1 million per year
• University Health Network (UHN) used CompuCom’s solution to achieve a seamless transition to a new data center location, resulting in reduced costs and optimized end user productivity
• A leading pharmacy chain used CompuCom’s solutions to efficiently manage its network services, lower IT costs and faster cycle time for improvements at its 8,000 retail locations
• A global financial services firm used CompuCom’s solutions to implement new IT support strategies, resulting in the consistent exceeding of 95% service-level agreement requirements
• A personal lines property/casual insurance company used CompuCom’s solutions to innovate its remote technical support, significantly reducing the number of service technician dispatch calls The company has established a strong brand due to its success. It manages and supports 4.4 million end users, representing 5.7 million devices, including 2.6 million desktops/laptops, 2.4 million network devices, and 355,000 mobile devices. It has 18 delivery centers that serve clients in 100+ countries. Its average client relationship is 14 years, and 75% of its IT service revenue comes from recurring annuity clients. It has many prominent customers, including eight of the top 10 retailers in North America, six of the top 10 financial services firms, and six of the top 10 *Fortune *500 companies. Lastly, it has won many honors, including recognition as an industry “Leader” in the Gartner Magic Quadrant for End User Outsourcing for 12 consecutive years and as a “Top 10 Outsourcing Service Provider“ in the Sourcing category, Americas Region by Information Services Group (2015).

Channels

CompuCom’s main channel is its direct sales team. The company promotes its offering through its social media pages and participation in webinars and conferences.

Customer Relationships

CompuCom’s customer relationship is primarily of a self-service, automated nature.

Customers utilize its products and services while having limited interaction with employees. The company’s website features the “CompuCom ClientLink Portal“, which enables customers to buy hardware/solutions; access resources, tools, and analytics; and manage assets. The site also features an “Insights“ section that includes self-help resources such as white papers, blog posts, videos, and webcasts.

That said, there is a self-service component in the form of 24/7 phone and e-mail support (provided in 22 languages), as well as on-site support the firm can provide through its partnerships.

Key Activities

CompuCom’s business model entails designing and developing its IT products and services for clients.

Key Partners

CompuCom maintains deep relationships with key product manufacturers that it uses to help customers configure products to their specs, deploy the equipment, and manage it. The company is also part of the Global Workspace Alliance, a group of IT services organizations that leverage each others‘ networks to provide workspace solutions to their customers around the world.

The alliance has more than six million users and handles over 12 million incidents annually. Its members are as follows:  Topnew Info, Centric, Eire, Getronics, InfoCare, NSC, AGCN, S&T, Tecnocom, and Spie.

Key Resources

CompuCom’s main resources are its human resources, who include the engineering employees that design and develop its products and services, the sales staff who sell them, and the customer service personnel who provide support.

Cost Structure

CompuCom has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions.

Its biggest cost driver is likely sales/marketing, a fixed cost. Other major drivers are in the areas of customer support/operations and administration, also fixed costs.

Revenue Streams

CompuCom has two revenue streams: the revenues it generates from sales of its products and services.