Businessmodel of Herjavec Group

Customer Segments

Herjavec Group has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at companies across industries and sizes.

Value Proposition

Herjavec Group offers four primary value propositions: accessibility, convenience, risk reduction, and brand/status.

The company creates accessibility by offering a wide variety of options. It can address security for on-premise, cloud, and hybrid networks. It supports 40 security platforms. Lastly, it has acquired numerous companies over its lifespan, enabling it to expand its portfolio. These firms include security companies Metacomm, Sensible Security, and Cyberclix, and IT integrators SecurityLinq and Zentra Technologies. These acquisitions have enabled it to provide a broad range of capabilities.

The company offers convenience by making operations simpler for its clients. It provides an end-to-end solution that supports the entire IT security lifecycle, with four high-level steps:  consult, deliver, manage, and remediate. Its specific services include security gap assessments, consulting, implementation, managed services, networking, remediation, and incident response.

The company reduces risk by maintaining high safety and security standards. It maintains over 250 certifications across the 40 platforms it supports. These include SSAE 16 SOC 1 and SSAE 16 SOC 2, Cloud Security Alliance, and PCI (Compliant Service Provider, Qualified Security Assessor, and Authorized Scanning Vendor). Its Security Operations Centre (SOC) is operated 24x7x365.

The company has established a strong brand due to its success. It is one of the fastest-growing tech firms in North America, having increased from $400,000 to $140 million in revenues within 12 years. It is Canada’s largest security provider and largest McAfee partner. Lastly, it has won many honors, including rankings in the Cybersecurity 500 (#2 in 2016), CDN Top 100, Profit 100, and Branham 300; and recognition as the “Hot Managed Services Provider“ for 2016 by Cyber Defense Magazine.

Channels

Herjavec’s main channel is its direct sales team. The company promotes its offering through its website, social media pages, sponsorships, and participation in conferences.

Customer Relationships

Herjavec Group’s customer relationship is primarily of a personal assistance nature. The company assigns its clients security specialists to deliver their solution and a dedicated technical analyst to support the infrastructure’s day-to-day activities.

That said, there is a self-service component. Herjavec Group’s website features various support portals where clients can obtain resources.

Key Activities

Herjavec Group’s business model entails designing cybersecurity services for its clients.

Key Partners

Herjavec Group partners with best-of-breed technology vendors who supply software components for its solution in order to enhance its offering for its customers.

Key Resources

Herjavec Group’s main resources are its human resources, who include the technology employees and security specialists that design, develop, and implement its services and provide support.

Cost Structure

Herjavec Group has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent product enhancements.

Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of customer support/operations and research and development, both fixed costs.

Revenue Streams

Herjavec Group has one revenue stream:  revenues generated from the subscription fees it charges for access to its cybersecurity services.