1. EPITA IT Markets Basic Finance and Marketing
Oct 11th 2006
Jean-Noël GORGE

2. AGENDA
Who am I ?:
Jean-Noël Gorge

3. Jean-Noël GORGE ?
First job in IT at Olivetti France internal IT department October 69, (program coding)
Before, MBA from HEC
Sales and/or marketing positions at :
Bull
Cap Sogeti
Digital
Apple France
Andersen Consulting

4. Jean-Noël GORGE ?
Today
President ( and only staff now !!!) of MarKante Conseils

5. MarKante Conseils ? Our clients : IT services companies « SSII »
IT departments of major accounts
Consulting firms (Accenture and the like) mainly dedicated to IT services
Software editors with strategic positions in consulting and services

6. MarKante Conseils ? Our practice : Business development
Positioning, targetting,
Marketing (products and services offering, mixes, alliances etc.)
Sales performance (account management)
Communication
Merger and acquisition (M&A) for small and very small companies (< 5 M Euros)

7. Who are you ?

8. Objectives

9. Objectives ? NO TECHNICAL DISCUSSIONS !
To help you get a better return on your investment in tuition fees !
How ?
NO TECHNICAL DISCUSSIONS !
A better understanding of basic forces driving the business of this industry. (and, by the way your future employers)

10. Topics discussed ?
Basic economic and business elements more or less relevant for your future (first ?) job:
Size and growth of IT industry,
Jobs creation
Role and contribution of IT to a company business
Different players of the IT services industry
IT Jobs, grades, careers in large corporations .

11. Warnings !
This course’s approach is not backed by any academic research
It covers only professional usage of IT
It is predominantly based on personal “hands on” experience :
Important : Hw manufacturers, SSII, Consulting, B to B
Average : Editors, distributors, Start Ups, B to C
Indirect : Users
Sales, Marketing, Communication, management
No experience or specific skills in organization, finance and HR

12. Program Lecture 1 (Today) : Lecture 2 : Lecture 3 : Lecture 4 :
Major indicators for the IT industry in France
IT contribution and added value to business
Lecture 2 :
: majors phases in IT industry development
Lecture 3 :
IT services industry ( largest employer and recruiter)
Lecture 4 :
Les autres employeurs

13. Program (2) Lecture 5 : Exams
Zoom or add ons to previously discussed or new topics, at your request
Exams

14. Questions ?

15. Major indicators

16. Macro Economy ? GNP (PIB in French) Nation’s Budget
Investments (households excluded)
IT expenditures (household excl.)

17. Macro economy France GNP (PIB in French) Nation’s Budget
Investments (households excluded)
IT expenditures (household excl.)
Euros 109
1700
270
230 75

18. IT Expenditure
IT expenditure :
manufacturing industries + financial industries + administrations ( central and local):
75 billions Euros
4,4 % of GNP
33 % of total investments of French economy
2005 / growth:
2,5 to 2,7%
2006 growth (?): 2 to 6 % !!!

19. Gross margin and investment

20. Growth and investment 25,0 20,0 15,0 10,0 5,0 0,0 -5,0 GNP investments
+3,5%
+1,8%
0,0
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
-5,0
GNP
investments
-10,0

21. IT expenditures by industries (%)

22. IT expenditures by items (%)

23. IT added value to business ???

24. IT added value

25. IT added value (ctnd)

26. IT added value (fin)

27. 60 to 70 000 IT staff recruitments (all levels) of which
IT and employment
France (2006, likely to be the same in 2007)
60 to IT staff recruitments (all levels) of which
15 to net jobs creations

28. IT employment perspective
papy-boom
IT Pros will
retire in France
from now to 2015*
creation
of new
jobs positions in IT from now to 2015*
Scarcity of new graduates
less students taking sciences
new positions (net !) to be filled in France by 2015* Where to go to find candidates ? How to attract and retain ? Competition tougher than ever between IT and other industries

29. Questions ?