Businessmodel of Forsythe Technology

Customer Segments

Forsythe has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at organizations of all industries and sizes.

Value Proposition

Forsythe offers three primary value propositions: accessibility, performance, and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired several firms since its founding. This strategy has enabled it to greatly expand its capabilities and diversify its portfolio, as follows:

• Synnefo increased Forsythe’s ability to implement and manage hybrid data center infrastructures
• Mentora enabled Forsythe to expand its professional and managed services business
• SOS Security expanded Forsythe’s capabilities in the area of risk management Forsythe’s expertise now includes all aspects of information technology, including IT risk management, IT portfolio valuation, systems solutions, data center solutions, financial solutions, network and workspace, and managed and hosting services.

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

• Windstream Hosted Solutions used Forsythe’s solutions to design the base architecture for its multi-tenant enterprise cloud environment, resulting in a 15% reduction in capital investment
• PointClickCare used Forsythe’s solutions to simplify its assets, resulting in 25% cost savings and reduced support costs and power requirements
• TPC Group used Forsythe’s solutions to build and implement a converged architecture platform, resulting in 99.9% data reliability (up from 94%) and 30% more time to think strategically
• Alegent Health used Forsythe’s solutions to design virtual storage systems, resulting in a rise in server utilization from 3% to 60% and a reduction in storage costs by 20% per megabyte

• A non-profit client used Forsythe’s solutions to develop an IT infrastructure roadmap, resulting in a 20% reduction in total cost of ownership and improved manageability The company has established a strong brand due to its success. It has almost 1,000 employees operating out of 40 locations, and generates over $1 billion in annual revenues. Its clients include 35 members of the Fortune 100 and hundreds of Fortune 1000 organizations. Its average client relationship lasts seven years, and it has served some customers for more than 20 years. Lastly, it has won a number of honors, including the following:

• Recognition as a “Visionary” in Gartner’s Magic Quadrant for Integrated IT Portfolio Analysis Applications
• Recogntion as one of “America’s Best Management Consulting Firms“ in IT Strategy by *Forbes *Magazine
• Three “Top Performance Leadership“ Awards from IBM
• Recognition as an Elite 50 Managed Services Provider by CRN
• Recognition as one of the “Top 100 Leasing Companies“ by Monitor 20 times ### Channels

Forsythe’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

Forsythe’s customer relationship is primarily of a personal assistance nature. The company provides general phone and e-mail customer support. It provides more in-depth services through the following programs:

Forsythe Integration & Configuration Center (FICC) – Provides custom configuration, testing, and hosting services. Specific services include the following:

• Project Rollout – Project planning and management
• Intelligence – Pre-deployment asset management prep services
• Pre-Deployment Hosting – Hosting through a secure, private lab with on-site resources
• Logistical – Secure on-site storage, just-in-time delivery, expedited delivery, green-certified packaging removal

• Technical – Integration/configuration, transition/migration, testing/tuning, design consultation, and installation/break-fix/BC-DR Forsythe Technology Evaluation Center (TEC) – Enables customers to try solutions before buying them. Specific services include the following:

• Demonstrations – Clients can assess product functions and features in a real, working setting
• Bake-Offs – Clients can compare customized configurations
• Proofs-of-Concept – Clients can identify a solution based on metrics that address their business requirements
• Hands-On Training – Clients can get up to speed on functionality pre-deployment Despite this orientation, there is a self-service component. The company’s website provides useful resources such as news articles, case studies, and an online magazine called “FOCUS“.

Key Activities

Forsythe’s business model entails designing and developing its solutions and providing related services to its customers.

Key Partners

Forsythe maintains strategic partnerships through which it works with organizations to develop solutions that integrate and leverage best-of-breed technologies. Its network includes over 250 leading technology manufacturers.

Its specific partners include: Arista, Cisco, Dell, EMC, Gigamon, Hewlett-Packard Enterprise, Intel, Microsoft, Oracle, Red Hat, Symantec, Veritas, and VMware.

Key Resources

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

Cost Structure

Forsythe 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 technology products and services, a variable expense.

Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Forsythe has two revenues streams: revenues it generates from the sale of technology products and services, and revenues it generates from leases and miscellaneous sources.