Transcript Intentia - HEC Paris

Intentia in France
Best in France Case Study
June 13, 2005
Alexandre Berthier
Vesselina Popova
Bettina Freie
Adel Benazzouz
Michelle Labarthe
Page 1
Executive Overview
 Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
 Key Constraint Costs
 Key Benefit Numbers
Page 2
Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
 Key Constraint Costs
 Key Benefit Numbers
Page 3
The Intentia Proposition
Intentia is the intelligent choice for organizations that operate in
complex supply chains with resource constraints and want to
improve the way they make, move and maintain their products.
 100% of resources are dedicated to this market
 100% of software is designed for this market
 100% of experience is in servicing this market
Intentia customers benefit from over 20 years M3 enterprise sector
experience, a modern technology infrastructure and a supplier
committed to delivering value every time.
Page 4
Company Objectives
 To provide enterprise wide software and service solutions to M3
businesses that enable them to compete more effectively, increase
their productivity, and grow their businesses profitably.
 To become the leading provider of enterprise applications for M3
businesses in targeted geographies and specific industries.
To achieve these objectives via a planned expansion of
organic growth and acquisitions with profitable operating
performance
Page 5
Intentia Positioning
 Make, move, maintain (M3) activities
 Flexible, M3 prepackaged solutions
 Resource-constrained organizations
 Complex business processes
 Make it happen, every time
 Financially stable supplier
 20 years of experience
 Modern technology
Page 6
Company Strategy
 To continue to deliver increasing value and superior service to their
existing customers
 To focus new business resources on those industries,
geographies, and channels to market with the greatest potential
(e.g., France)
 To continue to invest 12–15 percent of total revenues in
development to maintain technological leadership
Page 7
Strategy Plan: Three Phases
2004
Stay in the game
Profit
Play the game
Growth
Win the game
Market Share
Page 8
Goals for 2005
 Increase of operating profit by end of 2005
 Target best-in-class across all key metrics
 Grow in 2005 in comparison to 2004
 Create a world-class company with outstanding people
 Become an M3 leader within specific industries
Page 9
Intentia International AB
 Created in Stockholm,1984
 Turnover of €330.7 million in 2004
 Curent Market Capitalisation of €284.15 millions
 2371 Employees in 40 Countries
 More than 3000 Customers Worldwide
SIN: SE0000349243
Ticker: INT-B
Sector DJ: Tech – Software
Market Cap based on close price on 06/07/2005 of 15.5SEK
Page 10
Revenues by Region
On a regional basis, Europe accounted for more than 80% of total
revenues, and Asia Pacific accounted for approximately 14% of total
revenues, up from 12% in 2003.
4.6% 0.7%
14.0%
38.6%
Northern Europe
Central Europe
Southern Europe
18.9%
Asia Pacific
Americas
23.2%
Other
Page 12
Market Share from Sales in France 2003
Page 13
Strong turnaround in 2004
• New investors injected over $85 million
• New senior management team CEO, CFO, CMO
• Strengthened Board : Romesh Wadhwani (Symphony),
Paul Wahl ( ex Siebel and SAP)
• Strong cash position of $70 million (Q3 2004)
• Solid equity to asset ratio of 33% (Q3 2004)
• Positive EBITDA (Q3 2004)
Page 14
Stronger Financial Position
Intentia begins 2005 in a much stronger financial position as a result of
improved operating performance and a SEK 205.6 million increase in
cash.
(SEK million)
Assets
Liquid funds
Accounts receivable
Other current assets
Tangible assets
Financial assets
Goodwill
Capitalized product development
Total assets
Liabilities and stockholders' equity
Interest-bearing liabilities
Convertible notes
Provisions
Other liabilities
Minority interests
Stockholders' equity
Total liabilities and stockholders' equity
December 31
2004
2003
499.7
866.6
321.6
116.9
283.1
197.1
381.3
2,666.3
294.1
870.1
285.5
164.4
298.4
262.2
342.9
2,517.6
225.8
70.4
37.6
1,387.9
7.9
936.7
2,666.3
236.0
71.1
36.5
1,332.6
9.8
831.6
2,517.6
Page 15
Key Performance Indicators
In the fourth quarter of 2004 all key performance indicators were at
their highest levels in eight quarters
(SEK million)
Q1
Q2
Q3
Q4
2004 key performance indicators
Revenue per employee (TSEK)
Professional services margin
Operating margin
Profit margin
Adjusted EBITDA margin
233
7.2%
-17.4%
-18.9%
-11.0%
289
17.9%
1.7%
-1.0%
5.1%
238
-18.0%
-50.9%
-50.3%
-17.8%
372
23.4%
15.7%
10.2%
16.6%
2003 key performance indicators
Revenue per employee (TSEK)
Professional services margin
Operating margin
Profit margin
Adjusted EBITDA margin
247
12.9%
-11.1%
-14.7%
-6.6%
259
14.8%
-4.9%
-7.7%
-1.8%
206
-0.2%
-13.0%
-11.7%
-11.2%
289
8.4%
-3.2%
-18.3%
2.2%
Page 16
Efficiency Measures
Even Q3, traditionally the weakest quarter of the year, reports a
positive EBITDA in 2004, adjusted for restructuring costs
SEK million
Change in revenue per employee
Change in service cost and
indirect expenses1)
Service margin 1)
EBITDA 1)
July–September
2004
2003
2002
13%
-13%
-15%
-7%
16%
4
-16%
3%
-28
-5%
16%
-30
1) 2004 figures before restructuring charges for comparison
Page 17
Strong Shareholder Base, Shares Vision and
Long-Term View
Four major shareholders at the end of September 2004 hold more than
40 percent of Intentia’s capital
Stockholders
Symphony Technology Group
Tennenbaum Capital Partners
Eureka Funds
Total three major owners
Percentage of Capital
24.9
11.4
6.4
42.7
Page 18
 Intentia Business
Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
 Key Constraint Costs
 Key Benefit Numbers
Page 19
More than 4000 clients around the world
Some Examples
Page 20
More than 300 clients in France
Some examples
Page 21
Customer Industry Sector Detail
 Distribution
 Asset and Maintenance
– Professional Wholesale
– Field Service
– FMCG Distribution
– Depot Service
– Enterprise Asset
Management
– Third-Party EAM
 Fashion
 Food and Beverage
– High Fashion
– Meat and Poultry
– Contract Manufacturer, Cut
and Sew
– Dairy
– Design, Source and
Distribute
– Bakery
– Fresh Fruit and Vegetables
Page 22
 Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
 Key Constraint Costs
 Key Benefit Numbers
Page 23
International Strategy
 Presence in 40 countries covering 5 continents
 Growth by acquisitions (Europe) or build from scratch (Asia)
 Southern Europe is managed from France
 Intentia France represents 18.3% of the group’s total sales in 2003
 Significant potential justifying a French presence
 Launch of R&D offshore in India to produce at lower costs plus a
new customer support center (in 2005)
 Partnership with IBM and Symphony
 Increase of the number of dedicated people to those activities
without increasing costs associated
 R&D internal department will still conduct the high-added value
work
 Reduction of staff in Scandinavia
Page 24
Intentia in Southern Europe
More than 550 employees in southern
Europe :
25 Solutions Managers
300 Technical Consultants
15 Developers
50 I-Support Consultants (hot-line)
•Madrid
560 Customers
Generating 19% of group’s total sales in 2004
Page 25
Intentia International
Bertrand Sciard, Chief Executive Officer
Research &
Development
Americas
Chief Financial
Officer
Executive Vice
President
Arthur Gitajn
Johan Berg
General Counsel
Chief Information
Officer
Niklas Björkqvist
Malin Laudon
Human Resources
Chief Marketing
Officer
Claes Bille
Allan Davies
Europe, Middle East and Africa (EMEA)
Asia
ANZ
Franck Cohen
IRD
Americas
Northern
Europe
Central
Europe
Southern
Europe
Asia
Australia/
New Zealand
Henrik Billgren
David Rode
Markus Jakobson
Cormac Watters
René Samama
David Hope
Linus Parker
Page 26
Organisational Chart of Intentia Southern
Europe
Region SE
Rene Samama
Vincent Courtier
MARKETING
Odile Rouxel
FINANCE
RESSOURCES HUMAINES
Agnès Bravo
IT
Alain Roche
SOLUTION DESIGNER
Joan Sole
I-SUPPORT
Marc Houx
OFFICE SUPPORT
France, Belgique Francophone,
Espagne, Portugal
Suisse Francophone,Italie
Directeur
New Business
Fréderic
Champalbert
Directeur
Account
Management
Renaud Vadon
Directeur Services
Stéphane
Jacquemet
HW France
Patrick Benittah
Directeur
New Business
Directeur
Account
Management
Directeur Services
Jordi Salvador
Jordi Salvador
Jordi Salvador
Page 27
 Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
 Key Constraint Costs
 Key Benefit Numbers
Page 28
Constraints in France
 The previous company GTI was more a family run business thus
cultural adaptations had to be made (procedures, strong focus on
P&L)
 Although the rumor says social protection is very much important in
France, it actually costs less to fire someone compared to EU
countries
– France: 1/3 month of salary per year of employment within the
company
– Italy: 1 month of salary per year of employment within the company
– Portugal and Spain: between 1.5 and 3 months of salary per year
of employment within the company
 Until recently no partnership (vs. SAP for example) so clear lack of
resources in France
Page 29
 Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
Adaptation to France
 Key Constraint Costs
 Key Benefit Numbers
Page 30
Recruitment and Selection
 High tech company means two ways of recruiting:
1. Directly by the HR department which is the most common
approach
2. With the help of an external consulting firm for very specialized
technical profiles, sales persons and management (hunting)
 Although there is no assessment center, each candidate has to
pass an English test –oral and written
 Each selected candidate must receive approval from upper
management  total number of employees is under control at the
company level
 No recruitment problems due to the high level of the French
education system
 Before: young graduates, internal and external mobility, learning
on-the-job
 Now: industrialization and standardization
Page 31
Compensation
 Profit-sharing scheme divided in two parts
1. French law says that above 50 employees it is mandatory to share
parts of the profits (aka Participation). The company has no
power on the split.
2. Another part can represent 2 to 3 months of salary and is totally in
the hands of Intentia regarding the split, the amount etc…(aka
Interessement). It’s however a company agreement.
 On top of the usual insurance coverage (Social Security), an
additional insurance (mutuelle) is added to even better cover
medical reimbursements
 Laptops and cell phones for everyone
 5 weeks of vacation for everyone plus 12 days due to the 35-hour
week (2005 numbers)
 Maternity and paternity leave, renting aid, heavy home work aid
Page 32
Compensation Key Figures
Revenues (M€)
Participation and Intéressement Evolution
80
2500
70
2000
M€
50
Revenues (M€)
40
30
€ Thousands
60
1500
Participation (€ 000)
Intéressement (€ 000)
1000
20
500
10
0
0
1997
1998
1999
2000
2001
2002
2003
2004
Years
1997 1998 1999 2000 2001 2002 2003 2004
Years
•Salary increases always follow the path: recommendation by managers  approval by
France steering committee  approval by the group
• Costs are controlled at a group level
Page 33
The Award Program
 One of the top 10 reasons most cited by employees when leaving
companies is their perception that the company did not recognise
and value his/her performance and contribution.
 It is an important human need to know one’s contribution is valued.
 Compensation plans are an important element in awarding
performance but they also have some drawbacks:
– They lack immediacy as they are based on performance over a
defined period, usually a year.
– Do not account for the ongoing incidents of good performance.
– Comp plans are structured and formal and can lack the personal
element.
– Monetary awards are not the only tool in recognising performance
and contribution.
 Two key principles underpinning their Total Rewards philosophy are
the desire to retain the best and to recognise performance and
contribution. An Award program is an additional tool to deliver on
Page 34
these principles.
Why Have an Award Program?
 Award programs are about the recognition of performance and
contribution.
 They range from the informal verbal recognition of a job well done to
the more formal giving of a tangible non monetary award.
 The ultimate objective of an Award program is to engender an
inherent culture where strong performance and contribution is
recognised and celebrated.
 This culture should encompass both the purely verbal recognition as
well as the tangible award.
 The motivational factors of knowing one is valued and appreciated
cannot be underestimated.
 The Award program can become a very important and potent tool
for management
Page 35
Considerations
 The Award program should articulate and reflect the underlying
principles. That is, creating a culture where performance is
recognised.
 It should be immediate. In other words, the recognition, be it verbal or
a more formal award, should be given as close as possible to the
event that triggered it.
 The program should be simple and clear.
 The awards should be non-monetary.
 Reinforce the principle that recognition of a job well done is not
dependent on the giving of a tangible award. A verbal thank you can
be as meaningful as a tangible award.
 For higher levels of contribution and performance public recognition
and celebration are important to the individual concerned and
demonstrates to others the behaviours and actions that are valued by
Intentia.
Page 36
Perfect Partner Award (‘On the Spot’)
 The purpose of this award is to enable management to immediately
recognise and commend behaviours and actions that support the
achievement of business objectives. Underlying principles:
– Immediate
– Local management ownership
– Highlights and reinforces the behaviours that drive Intentia’s
success.
– Employees can nominate colleagues
 The level of the award should be nominal e.g.
– Verbal or written recognition of the individual and the
behaviour/action
– Intentia merchandise e.g. t-shirts, bags, etc
– Each Business Group (BG, e.g. Southern Europe) would need to
determine the appropriate award type
Page 37
Successful Project Completion - Award
 On completion of every project a review will be conducted, by
management, to determine the success of the project in terms of:
– Financials (revenue and variance)
– Project quality
– Customer satisfaction (customer feedback)
 For projects deemed successful, all project participants, along with
their spouses, will be taken to dinner by Intentia.
 This provision of the Award program also applies to IRD projects.
Page 38
New Deal Celebration
 Each and every new deal should be celebrated at the BU level.
– Diploma
– Bottle of Champagne.
– Permanent memento.
 Any deal above €500k in licence revenue should be celebrated at
the BG level.
– Diploma
– Gift Presented by the BG Manager
– All BUs should be encouraged to recognise the sale.
– Article on the BG Wire homepage
 Any deal above €1m should be recognised at the GO level.
– Diploma
– Gift presented by GO Sales Director.
– Deal recognised globally on the Wire (personalised)
Page 39
BG Specific Initiative
 From time to time BGs will introduce a specific business initiative to
improve business performance.
 In many cases successful achievement of such initiatives may be
handled as Strategic Objectives within the comp plans.
 However, this may not always be appropriate or desireable.
 In such cases it may make sense to include the initiative within the
context of the overall Award program.
 Any awards provided must be consistent with the standard awards
provided under the program.
Page 40
Top Performers Award
 Annual event for the company very top performers in all functional
areas:
– Sales
– Services
– IRD
– Corporate Services
– Also a number of wild card nominations
Page 41
Communication
 In the giving of an award how it is communicated to the individual
has an important bearing on how the individual perceives the
award and the level of pride/satisfaction they take in it.
 Communication to the wider population is also very important:
– Individuals will know that their contribution has been publicised and
recognised across the organisation.
– Allows others to celebrate success and congratulate those who
have been awarded.
– It is an opportunity to reinforce the behaviours and actions that
management require.
 The Awards given for successful project completion and New Deals
will be published on the Wire on a monthly basis.
 The Perfect Partner Awards and any BG Initiative award will be
published on the BG Wire page.
Page 42
Training
 Mostly done internally for most technical subjects by the Intentia
University
 Training standardized within the group
 Trainings are conducted locally, but more specialized ones might
take place in other countries
 Special trainings such as languages or supply chain management
are done by external companies
 Training represents 5% of the total personnel costs of the French
subsidiary
 Training subjects examples: Movex Operations, Movex Finance,
Movex for Beginners, Java, API Programming, Source Code
Page 43
Evaluation Objectives (excerpt from original
HR documents)
« Objectif
L’objectif de l’entretien de fin d’année est de :
 Définir un profil structuré de vos compétences, opportunités
d’évolution et domaines dans lesquels une formation vous serait
utile.
 Établir des objectifs à court et long terme
 Satisfaire les besoins de l’entreprise en personnel compétent
 Créer une relation ouverte et confiante entre vous et votre
responsable.
 Procurer au responsable un feed-back sur son style de
management et exprimer vos attentes vis-à-vis de ce responsable
 Évaluer les objectifs de l’an dernier et vos performances. »
Page 44
 Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
Key Constraint Costs
 Key Benefit Numbers
Page 45
Hiring
 Intentia expands through organic growth and acquisitions. It came
to France through acquiring the French company GTI in 1995. This
acquisition reduced the costs incurred when a business is built
from scratch in a new country and after it started the hiring of new
labour force related to the development of the main activity of the
French office – sales.
 The hiring costs include publishing of announcements for job
positions in news papers and internet.
 When recruitment of personnel for high managerial positions is
demanded, the company uses hunting.
Page 46
Payment
 Salaries. The major part of the expenses of Intentia are the
salaries of the employees. In terms of salaries the costs are higher
than in other countries from Southern Europe.
 For comparison we are showing the average salary of a business
consultant including VC + Social costs
Country
Salary in %
France
100%
Italy
123,5%
Portugal
73,1%
Spain
90,6%
 Note: The salary in a small structure is significantly higher as there
is one employee in charge of the business development of the
office  more experienced staff (salaries are comparable to
France)
 Bonuses. Each year the employees receive the amount of 2 to 3
monthly gross salaries as additional compensation for their
contribution to the profits that the company have realized. This is
only true for France.
Page 47
Payment
 Social security charges. The social security charges that the
company pays to the state for each employee in France are one of
the highest in Europe.
France
48%
Italy
38%
Portugal
25%
Spain
20%
 Royalties. The function of the French office is to distribute the
products which are developed in Sweden. Thus, it pays more
than half a product price of royalties to the Swedish office.
Page 48
Training
 A major input, tightly related to the performance of the office is the
employees’ up-to-date knowledge.Intentia allocates 5% of the total
gross salary of an employee for training.
 Due to the nature of the products, the company uses internal
training system for technical staff and sales force. Some employees
are trained to be trainers later on.
 External training systems are also available. For example –
leadership programs.
Dismissing
 The compensation that the company offers upon dismissing is onethird monthly salary. For comparison in Spain this number is 1,5
month, and in Portugal between 1,5 and 3 months
Page 49
Communication
 English is the official language in Intentia and employees are
expected to be operational in it. During the job interviews every
candidate passes a mandatory English language test.
 Cultural differences. The HR department considers that there are
not major cultural differences between the management in the
different offices and there is exchange of people between the
offices.
 Centralization. The policy of the company is directed toward
centralization, but according to its managers the procedures are
much less rigid than in other similar companies and the
formalization and justification of expenses are much more flexible.
 Products. All products are translated in the language of the
country in which they are sold.
Page 50
Integration of the French Managers Into The
Organization
 Bertrand Sciard became a CEO of Intentia International in Sweden
when Bjorn Algkvist, the former CEO of the group decided to
concentrate on the strategy of the company as a shareholder
 Bertrand Sciard has rich experience acquired as an Executive VP
of GEAC, responsible for the activities in the regions of Europe,
Middle East, Africa and Asia Pacific, as a CEO of Presys and after
occupying different positions at IBM
Page 51
 Intentia Business
 Company Products and Clients
 Why did Intentia Come to France?
 Constraints in France
 Adaptation to France
 Key Constraint Costs
Key Benefit Numbers
Page 52
Key benefits of being in France
 Strong market concentration, profitability depends heavily on market
share
Market share
Top 3
30%
Top 10
52%
Top 20
70%
Top 40
85%
Top 60
100%
 Intentia is one of the big players: SAP >10%, Intentia and
Peoplesoft/JD Edwards >5% and one of only few profitable
companies
Page 53
Market situation (global) : Crisis since 2001
Croissance annuelle du marché des logiciels (tous segments)
14%
Croissance 2003 en USD
due aux effets de change
12%
10%
8%
6%
4%
2%
0%
-2%
Sources: IBM et Ovum p 2003
-4%
1997
1998
1999
2000
2001
2002
2003
Page 54
Consequences of the crisis:
– Strong competition: Take-over of competitors‘ market
shares is only way to grow
– Market concentration: Alliances and take-overs (e.g.
PeopleSoft /J.D.Edwards) , the 10 biggest players
accounted for 72% in 2000 and for 85% in 2002
– 2/3 of players make losses
– Battle for mid-market between SAP and pure ERP
players such as Intentia
– Small players survive in niche-segments
Page 55
Intentia France as compared to the Intentia Group (1)
Proportion of Sales
France
12%
Proportion of Employees
Europe du Sud
France
(hors F.)
7%
Europe du Sud
(hors F.)
6%
Amériques
4%
3%
Amériques
Europe du Nord
Europe du Nord
5%
38%
Europe Nord Ouest
Europe Nord Ouest
37%
8%
10%
Europe Centrale
11%
Europe Centrale
Autres
11%
Asie
9%
11%
Autres
Asie
16%
12%
•
With just 7% of employees Intentia France contributes 12% to the sales of
the group
•
The figures indicate a high level of PRODUCTIVITY which allows the
French subsidiary to be profitable despite the rough market
environment.
Page 56
Intentia France as compared to the Intentia Group (2)
90,00
80,00
450
400
70,00
60,00
350
300
50,00
40,00
250
200
30,00
20,00
150
100
Q 103
2003
2002
50
0
pe
6 ,0 0
15
4 ,0 0
10
2 ,0 0
5
0 ,0 0
-1 0 ,0 0
0
u pe
G ro
Aut r
es
Q1 0 4
A s ie
Am é
ri q u
es
st
Oue
d
le
pe N
o rd
-8 ,0 0
Eur o
Intentia France was the
most profitable part of the
company in 2003
-6 ,0 0
pe C
e n tr
a
-4 ,0 0
E u ro
-2 ,0 0
pe d
u No
r
Results of the Intentia Group
G
u
ro
E u ro
A
s
re
ut
pe d
u Su
d
ie
Eur o
As
ce
st
e
d
d
al
s
or
ue
tr
Su
ce
N
O
ue
n
n
u
q
e
u
i
d
a
d
d
C
ér
or
Fr
e
N
m
pe
pe
op
A
o
e
o
r
r
r
p
Eu
Eu
ro
Eu
Eu
Q1 04
F ra n
10,00
0,00
Sales of the Intentia Group
-5
Q 103
-1 0
2003
2002
-1 5
-2 0
-1 2 ,0 0
-2 5
-1 4 ,0 0
-3 0
Page 57
Intentia France: Positive net result and cash flow
despite significant decrease of sales
Net profit
2001
15 450
20,6%
626
16 076
7 648
10,2%
Résultat d'exploitation
En % du CA
Résultat financier
Résultat courant
Résultat net comptable
En % du CA
Cash flow
en k€
2002
12 637
17,1%
469
13 106
7 825
10,6%
2003
6 779
11,5%
629
7 408
4 144
7,1%
Produit total
Résultat économique brut
- Droits, Charges div. et var. du BFR
- Investissements d'exploitation
= DAFIC (A)
+/- Flux financiers et fiscaux
= Cash-flow opérationnel
- Investissements financiers nets
= Solde de financement
Variation de l'endettement net
2001
75 734
26 332
-8 682
-579
17 071
13 125
3 946
45
3 901
-3 901
2002
73 511
24 905
-8 362
-209
16 334
4 591
11 743
-8
11 751
-11 751
2003
58 252
15 064
-9 220
-133
5 711
2 603
3 108
-10
3 118
-3 118
Trésorerie nette en fin d'exercice
14 294
26 045
29 163
Var.
-46,4%
34,1%
-43,5%
-47,0%
Cumul
207 497
66 301
-26 264
-921
39 116
20 319
18 797
27
18 770
-18 770
Page 58
Intentia France: Development No. of Employees,
Turnover
Profitability could only be retained by a reduction of the workforce
Development of Headcount
1997
1998
1999
2000
2001
2002
2003
No. of employees beginning of
year
84
133
205
229
242
289
286
Increase
51
97
64
48
77
32
16
Decrease
2
25
40
35
30
35
48
133
205
229
242
289
286
254
54%
12%
6%
19%
-1%
-11%
109
169
217
236
266
288
270
1,8%
14,8%
18,4%
14,9%
11,3%
12,2%
17,8%
No. Of employees end of year
Development %
Average (beginning + ending) /2
Turnover (% of average no.)
Remaining workforce is required in order to be prepared for the expected market
turn around
Page 59
Expected positive evolution of the French midmarket segment: Facts & Figures
2003
2006
TCAM (%)
CA (M€)
Poids
CA
(M€)
Poids
ERP suppliers
422,5
26,2%
567,5
29,0%
+10,0
Best of Breed
suppliers
600,0
37,1%
685,0
35,2%
+4,5
Technology and
infrastructure
suppliers
592,5
36,7%
697,5
35,8%
+5,5
MM Market Editors
1615,0
100,0%
1950,0
100,0%
+6,5
Page 60
Location Characteristics
Responsibilities: Due to the importance of the French market and its
central location in Southern Europe, Intentia France manages and
consolidates the whole Southern European region (i.e. Spain, Portugal,
Italy)
Government assistance: not applicable
Impact of location for transportation: not applicable as the product
consists of software and services and Intentia France serves the
French market only
Cultural adaptation of products: not applicable for ERP software and
related services except for language adaptation
Page 61
Action plan of Intentia Group as response to
financial difficulties
 Entrance of major new investor Symphony Technology Group
triggers important changes
– Influence on management
– Change of CEO in May 2004
– With Bertrand Sciard, a French becomes successor of Björn
Algkvist  cultural mediator between the Swedish culture of
consensus and decentralisation and the very profit-oriented
American way of management
– In July 2004 approvement of plan to streamline the organization, to
focus on development and customer support and to orient the
company towards higher growth potential markets
Page 62
We Thank
 Agnès BRAVO, General Secretary, [email protected]
 Stéphanie LONGATTE, HR Manager, [email protected]
Page 63
Our Team
 Alexandre Berthier, HEC MBA
 Bettina Freie, HEC MBA
 Adel Benazzouz, HEC MBA
 Vesselina Popova, HEC MBA
 Michelle Labarthe, HEC MBA
Page 64