Businessmodel of Innodata

Customer Segments

Innodata has a segmented market business model, with customer groups that have slightly different needs.

The company targets its offerings at trade, education, and professional publishing; telecommunications; information technology; aerospace & aviation; defense; and law and legal services firms.

Value Proposition

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

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

• An information services firm used Innodata’s solutions to build a new content management and delivery infrastructure, resulting in a 40% reduction in overall product development costs
• A broadband access solutions provider used Innodata’s solutions to implement a single-source publishing system, resulting in expected savings of $1 million over three years
• A book publisher used Innodata’s solutions to re-engineer its production and editorial processes, resulting in expected annualized production cost savings of 10-15 percent
• A publisher of medical/scientific information used Innodata’s solutions to create a more efficient content supply chain, resulting in the streamlining of a 60-process workflow to six processes
• A leading business intelligence provider used Innodata’s solutions to streamline the content acquisition process, resulting in a more than 30% increase in editorial staff productivity The company reduces risk by maintaining high security standards. Each of its facilities acts as a “mirror site”, with identical infrastructure, technology, and workflow designs. This means that work can be transferred seamlessly to another facility if necessary, with no interruption to the workflow. The facilities are all interconnected through multi-redundant data connections.

The company has established a strong brand due to its success. It has over 5,000 employees operating out of eight countries. It serves seven of the world’s top 10 publishing and information services organizations. Its clients include many members of the Fortune 500, including Apple, Dell, Lucent Technologies, Cisco, and United Airlines. Lastly, it has won many honors, including:

• Recognition as oen of the International Association of Outsourcing Professionals’ (IAOP) Global Outsourcing Top 100
• Recognition as one of KMWorld Magazine’s 100 Companies That Matter in Knowledge Management
• Recognition as a member of the EContent Magazine EContent 100
• Recognition by Motley Fool as one of the ten best performing public companies
• Ranking as one of India‘s leading ITeS and BPO companies by D&B India ### Channels

Innodata’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, online marketing, direct marketing, and participation in industry events such as seminars, trade shows, and conferences.

Customer Relationships

Innodata’s customer relationship is primarily of a personal assistance nature. The company provides phone and e-mail support. It also has a team of experienced consultants that provide the following services:

• Requirements Analysis
• Information Analysis
• Data Modeling
• Workflow Optimization
• Business Process Improvement
• Business Process Transformation
• Tools Selection &Implementation
• Standards Implementation
• Systems Integration
• Custom Application Development
• Full-Service Consulting Despite this orientation, there is a self-service component. The company’s website features a “Resources“ section that includes useful tools such as white papers, cheat sheets, case studies, webinars, and videos. The site also provides answers to frequently asked questions.

Key Activities

Innodata’s business model entails designing, developing, and delivering its services and solutions to its customers.

Key Partners

Innodata’s key partners are the suppliers that provide it with the products it needs to create its solutions, such as third-party software.

Key Resources

Innodata’s main resources are its human resources, who include the technology employees that design its services and solutions, the sales employees that promote them, the consultants that provide advisory services, and the customer service personnel that provide support. The company has important physical resources, specifically the following:

• Regional solutions centers and satellites in the United States and Europe
• R&D and production facilities in the United States, Canada, Germany, Israel, The Philippines, India, and Sri Lanka
• Five professional centers in North America and Europe ### Cost Structure

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

Its biggest cost driver is operating expenses. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Innodata has three revenue streams:

• Product revenues
• Subscription revenues
• Licensing revenues