Businessmodel of ThoughtWorks

Customer Segments

ThoughtWorks has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms of all industries and sizes seeking software and associated services, including consulting.

Value Proposition

ThoughtWorks offers three primary value propositions: innovation, performance, and brand/status.

The company places a strong emphasis on innovation. It created the first continuous integration (CI) server, Cruise Control. It focused on developing CI into what would become continuous delivery (CD), ultimately introducing GoCD (an open source CD server) and Snap (a cloud-based CD tool).

The company has demonstrated strong performance through tangible results for clients. High-profile examples of positive outcomes for customers include the following:

• BresicWhitney used ThoughtWorks‘ services to create a new mobile web app for its customers, which has increased convenience and decreased its sales cycle from several days to 24 hours
• Target Australia used ThoughtWorks‘ services to develop a highly experiential native app that created a more interactive experience, resulting in its app reaching the #1 spot in Apple Store
• Dominos used ThoughtWorks‘ services to implement digital initiatives such as GPS order tracking and emoji-based ordering, helping the firm post a record interim profit of $43.3 million
• MTV India used ThoughtWorks‘ services to rapidly design a new mobile app, developing complete functionality within three months
• Expedia used ThoughtWorks‘ services to enhance its web platform, enabling it to run more experiments on its new site in the first three months than in the entire previous year The company has established a strong brand as a result of its success. It has 3,600 employees working in 37 offices in 12 countries. It has several prominent cilents, including Coca-Cola, eBay, Cisco, Skype, and Siemens. Lastly, it has won many honors, including recognition by the National Association of Business Resources (NABR) as one of the “Best and Brightest Companies to Work For“ in Atlanta and as one of the top employers for women in Brazil by the Great Place to Work Institute.

Channels

ThoughtWorks’ main channel is its direct sales team. The company promotes its offerings through its website, social media pages, workshops, and participation in conferences.

Customer Relationships

ThoughtWorks’ customer relationship is primarily of a personal assistance nature. Customers work closely with company employees as part of consulting engagements.

That said, there is a self-service component. The company’s website includes numerous articles and access to a newsletter.

Key Activities

ThoughtWorks’ business model entails designing and developing software and related services for its customers.

Key Partners

ThoughtWorks does not maintain a formal partnership program; however, it forms strategic partnerships from time to time with various types of organizations.

In 2014 it established an alliance with WE’VE, a marketplace for designers and artisans, focusing on a transparent supply chain and economic sustainability.

In 2013 it partnered with Mercy Corps to develop new technology solutions to improve Mercy Corps’ work in addressing global relief challenges.

Key Resources

ThoughtWorks’ main resources are its human resources, who include engineering staff that design and develop its software and consulting staff that provide advisory services.

As a startup it has relied on funding from investors, raising $28 million from two investors as of October 2000.

Cost Structure

ThoughtWorks has a value-driven structure, aiming to provide a premium proposition through significant personal service.

Its biggest cost driver is likely cost of services, a variable expense.

Other major drivers are in the areas of customer support/operations and product development, both fixed costs.

Revenue Streams

ThoughtWorks has two revenue streams: revenues generated from the sale of software, and revenues generated from the sale of related services, including consulting.