Businessmodel of Data#3

Customer Segments

Data#3 has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at organizations of all industries and sizes. That said, a significant portion of its customers are in the health, education, and government sectors.

Value Proposition

Data#3 offers three primary value propositions: innovation, performance, and brand/status.

The company embraces innovation as a part of its culture. It created the Solutions Framework, which it uses to articulate the business value of its technology solutions for clients’ business objectives. Part of the framework is the Technology Consumption Model, which lays out the different options available to clients for consumption of its technology solutions. These include on-premises and off-premises solutions, and purchase vs. pay-per-use payment models.

The company demonstrates strong performance through tangible results. Specific positive outcomes for clients include the following:

• Toyota Western Australia used Data#3’s solutions to overhaul its data storage environment, resulting in the ability to use its infrastructure for five years instead of just three
• Fuji Xerox Australia used Data#3’s solutions to facilitate sales staff skill improvement, resulting in an 87.5% reduction in employee report production time and overall increased productivity
• SPARQ Solutions used Data#3’s solutions to develop an enterprise-wide user training and support program, resulting in a productivity increase worth approximately $3.9 million per year
• Logan Water Infrastructure Alliance used Data#3’s solutions to transform the way its IT was delivered, resulting in the streamlining of licensing costs over three years

• Brisbane Convention & Exhibition Centre used Data#3’s solutions to simplify its standard operating environment, resulting in reduced maintenance costs and increased efficiency The company has established a strong brand due to its success. It bills itself as one of the leading business technology solutions firms in Australia, with revenues of $983.2 million in 2016. It has over 1,100 employees operating out of offices across the continent. Its 2016 customer satisfaction survey resulted in an overall rating of 4 out of 5. Lastly, it has won many honors, including the following:

• AIRA Award for Best Investor Relations by a company in the S&P/ASX Emerging Companies Index
• An Employer of Choice Award for Australia’s Best Company from *HRD *Magazine
• Recognition as Borderless Technologies Partner of the Year, Smart Services Partner of the Year (Asia Pacific) and Alliance Manager of the Year at the Cisco ANZ Partner Conference
• Recognition as ARN’s Enterprise Reseller of the Year nine years in a row
• Microsoft Enterprise Partner of the Year Award ### Channels

Data#3’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, and participation in conferences.

Customer Relationships

Data#3’s customer relationship is primarily of a personal assistance nature. The company assists customers in the following ways:

Support Services – The company provides general phone and e-mail support

Professional Services – The company offers the following services:

• Consulting Services – The company offers various ICT consultation services to help clients align technology investments with business objectives; they are in the areas of strategy, architecture, planning and execution, business transformation, business continuity, and risk management
• Project Services – The company helps clients manage the complexities involved with project management, with specific types of projects including Mobility, Cloud, Security, Data/Analytics, and IT Lifecycle Management
• Management Services – The company provides managed services, becoming an extension of clients’ IT teams and partners that understand their business and technology requirements
• Resourcing – The company helps clients source, place, and retain IT professionals for their technology projects, through both on-site and remote assistance Despite this orientation, there is a self-service component. The company operates a customer portal through which it enables clients to carry out various activities such as licensing and returning products. Its website features a “Resources” section that includes useful tools such as white papers, customer case studies, and videos. It also provides access to an e-mail newsletter with updates.

Key Activities

Data#3’s business model entails designing, developing, and delivering its products and services for its customers.

Key Partners

Data#3’s key partners are the technology vendors that supply it with the resources it needs to develop its solutions and services. Specific partners include Cisco, Dell EMC, Adobe, Hewlett-Packard Enterprise, Lenovo, Microsoft, Symantec, Veritas, VMware, Autodesk, Citrix, Toshiba, and NetApp.

Key Resources

Data#3’s main resources are its human resources, who include the engineers that design and develop its products and services, the sales employees that sell them, the consultants that provide advisory services, and the customer service personnel that provide support.

It maintains important physical resources in the form of the data centers and configuration and warehousing facilities it operates across Australia.

Cost Structure

Data#3 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 goods sold, a variable expense.

Other major drivers are internal employee/contractor costs and cost of sales.

Revenue Streams

Data#3 has two revenue streams:

• Product Revenues – Revenues it generates from the sale of software and hardware licenses for its clients‘ desktop, network, and data centre infrastructure
• Service Revenues – Revenues it generates from the sale of  consulting, project, managed, maintenance, and workforce recruitment/contracting services