Businessmodel of Insight Enterprises

Customer Segments

Insight has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at business, government, healthcare, and education clients.

Value Proposition

Insight offers three primary value propositions: accessibility, convenience, and brand/status.

The company creates accessibility by providing a wide variety of options. It offers a broad range of hardware products from hundreds of manufacturers, including HP, Cisco, Lenovo, EMC, Dell, NetApp, IBM, and Apple. It also offers solutions from hundreds of software publishers, including Adobe, Microsoft, VMware, McAfee, Symantec, Citrix, Red Hat, and IBM Software. Lastly, it has acquired several firms since 2006, including Software Spectrum, Calence, Ensynch, Inmac, Micro Warehouse, and BlueMetal Architects. This strategy has enabled it to expand its capabilities significantly.

The company offers convenience by making life simpler for customers. Its website Insight.com lets customers do the following:

• Compare products in two ways – either by creating a custom comparison list or by using the site’s “Compare Similar” feature
• Easily identify products that offer instant and mail-in rebates

• Rapidly and easily purchase a product using its “Quick Shop” feature The company has established a strong brand due to its success. It is a Fortune 500 firm with operations in over 200+ countries/territories. It has also won many honors, including the following:

• Recognition as Intel Workplace Transformation Partner of the Year (2016)
• Microsoft Excellence in Operations Award (2015)
• Recognition as Dell’s National Solutions Provider of the Year (2015)
• Ranking on the CRN Tech Elite 250 (2014)
• CIO “Ones to Watch” Award (2013) ### Channels

Insight’s main channels are its website and direct sales team. The company promotes its offering through its website, social media pages, and participation in conferences.

Customer Relationships

Insight’s customer relationship is primarily of a self-service nature. Customers utilize its service and buy the products it sells while having limited interaction with employees. Users can create an account on the company’s website through which they can manage their purchases.

The site features a “Learn” section that includes resources such as white papers, analyst and research reports, case studies, podcasts, demos, and webinars. It also provides access to a newsletter and answers to frequently asked questions. Despite this orientation, there is a personal assistance component in the form of consultants who provide guidance and advice on purchases for clients.

Key Activities

Insight’s business model entails distributing technology products and delivering related services to its customers.

Key Partners

Insight’s key partners are the 3,600 firms from whom it purchases products and software for distribution on its website. About 66% of the purchases are from manufacturers or software publishers, while the remainder is bought through distributors. Its top five partners in terms of purchases in 2015 were Microsoft, Cisco, HP, Ingram Micro (a distributor), and Tech Data (a distributor). These partners often provide incentives to Insight in the form of discounts, rebates, and price protection. The company hosts annual partner forums worlwide to discuss its upcoming plans.

Insight also partners with firms in order to combine their products/services with its offerings. The goal is to increase its capabilities and expand its reach. These firms are considered part of its Product Management Group, and receive access to its sales and marketing programs. They are required to make a payment of $12,000 per quarter to maintain membership in the program.

Key Resources

Insight’s main resources are its human resources, who include over 1,400 consultants, architects, and other professionals. The company also depends on physical resources in the form of the 1.3 million square feet of office and warehouse space it owned or leased as of December 2015.

Cost Structure

Insight has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is cost of goods sold, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

Insight has three revenue streams: revenues generated from the sale of software, those generated from the sale of hardware, and those generated from the sale of related services.