3. VeriFone The Transaction Automation Company

4. Suggested Study Questions 1. What are the key attributes of the VeriFone organizational structure? Some refer to VeriFone as a “Virtual Company,” do you agree? 2. Describe and evaluate the role of the CIO at VeriFone. How is Will Pape’s role similar to or different from the CIO roles that you have observed at other companies?

5. Key Players William Melton –founder Hatim Tyabji –Chairman, President, CEO hired in 1986 Will Pape –CIO

6. VeriFone’s Business What do they do? –transaction automation — what is it? Where do they do it? –world-wide — 80 countries How well are they doing? –60% market share

7. What is their product or service? Hardware –scanner –not the PC Software –integrates scanner with PC and network Network –carries data

8. How have they done so well? Factors of competition –product quality, features, price, application software Driving the market –Where is the customer’s pain?

9. How are they organized? The VeriFone philosophy (Exhibit 11) Virtual company –blueberry pancakes Global company –international vs. global Value of an individual

10. Information Technology Will Pape –CIO Three purposes of IT –provide shared objectives –identify and report areas of weakness –provide real-time information at all levels

11. So, what’s the problem?

12. Discussion Issues Characterize VeriFone’s strategy and competitive environment? What are the key attributes of the VeriFone organizational structure? Describe and evaluate the role of the CIO at VeriFone. How is Will Pape’s role similar to or different from the CIO role that you have observed at other companies? What major challenges will VeriFone senior management face in the future?

13. What would you recommend?

14. Verifone on the Web Http://www.verifone.com And then search for other information such as TyabjiTyabji