Businessmodel of CSC

Customer Segments

CSC has a mass market business model, with no significant differentiation between customers. The company targets its offerings at commercial enterprises and government agencies.

Value Proposition

CSC offers three primary value propositions: risk reduction, performance, and brand/status.

The company reduces risk by maintaining high quality standards. It was the first firm to achieve two Level 5 SEI CMMI certifications, and it has since earned six such recognitions.

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

• Wells Fargo used CSC services to reduce post-merger booking cycle times by 30 percent
• Progressive Insurance used CSC’s billing software to roll out support for 5-10 plans per state
• Sysco used CSC’s Riskmaster software to create a single database for 180 operating units
• Selex ES used CSC services to migrate its systems to cloud services, reducing overhead costs
• National Grid used CSC services to migrate over 1,000 servers to Vblock platforms, reducing costs The company has established a strong brand due to its performance. It is one of the largest computer systems integrators and software developers in the U.S. It has over 66,000 employees serving customers in over 60 countries. It has been in the Fortune 500 since 1995, and generated $8 billion in revenues in its most recent fiscal year. Lastly, it has won many honors, including recognition as an Insurance “Market Leader“ in the Ovum Decision Matrix (2016) and as a Leader in the Data Center Outsourcing and Infrastructure Utility Services markets by Gartner (2015).

Channels

CSC’s main channel is its direct sales team, which operates worldwide. The company promotes its offering through its website, social media pages, and conferences.

Customer Relationships

CSC’s customer relationship is primarily of a personal assistance nature. The company assists customers through a wide range of consulting services, which include the following:

Technology Consulting Services – Include digital and application transformation services

Enterprise Solution Consulting Services – Include consulting services for Cloud and SaaS, IBM, Inform, Microsoft Business Solutions, Oracle, Salesforce, SAP, ServiceNow, and Workday

Industry Consulting Services – Include consulting services for Banking/Capital Markets, Consumer and Retail, Energy and Technology, Healthcare/Life Sciences, Insurance, Manufacturing, and Public Sector

Despite this orientation, there is also a self-service component. The company’s website features various self-help resources, including reports, survey data, videos, infographics, CSC World magazine, and answers to frequently asked questions. There is also a community element in the form of a forum for interaction with fellow customers.

Key Activities

CSC’s business model entails designing and developing its services for customers.

Key Partners

CSC maintains “Global Alliances” with business and technology companies to provide enhanced value for its customers. It works with these firms by:

• Interconnecting employees at every level, including senior executive sponsors, technology leads, managers, and regional contacts
• Developing joint business plans that include educational, technical, marketing, and sales activities for strengthening core capabilities
• Working cross-organizationally on engineering and development to build best practices and solutions that address specific market needs and client pain points
• Sharing early training and certification opportunities, R&D findings, and technology roadmaps Specific partners include Amazon Web Services, AT&T, EMC, HCL, Hitachi, IBM, Lenovo, Microsoft, Oracle, Salesforce, SAP, ServiceNow, and Workday.

Key Resources

CSC’s main resources are its human resources. They include its engineering employees who design and develop its software services and sales staff who promote the services. They also include its 6,000+ consultants who work across 15 industries in over 70 countries, providing end-to-end transformation services.

Cost Structure

CSC has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements. Its biggest cost driver is cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

CSC has one revenue stream: revenues generated from fees for contracts it charges for its various services. Sales staff must be contacted directly for pricing quotes.