Friday, January 15, 2010

Question 3

  1. On Porter's strategy matrix - Accenture is positioned in a differentiation strategy. First they cater to a wide market from banks, to oil refineries, to airlines. Second, they are not a low cost service, but rather offer a uniqueness in the way they approach problems for clients.
  2. The first competitor IBM has the same strategy as Accenture. However, their uniqueness lies with being able to offer end-to-end technology services that they have developed while Accenture excels at offering systems implementation services while also outsourcing a client's non-core tasks to one of its offshore delivery centers. Another example would be Deloitte and Touche. While D&T competes on occasion in the systems implementation space they tend to offer more business solution consulting. They also take a differentiation strategy approach, but with a different set of unique skills than its competitors.
  3. Accenture is positioned well as a leader in the consulting industry, however it faces threats from rivals who are able to copy some of their core competencies at a lower cost. For example, Tata Consulting Services or Wipro are able to offer some of the systems implementation solutions, but at a lower cost. This is driving some of the work Accenture does into the "cost leadership strategy" quadrant. In order to remain in it's position Accenture must offer additional services beyond systems work and outsourcing to remain in its position.

Question 2

  1. Accenture lies in the Professional Service quadrant of the Service Process Matrix. Within this quadrant it lies at bottom left corner of high customization and high labor intensity.
  2. Three other organizations within the consulting industry include - IBM Consulting, Capgemini and Deloitte & Touche. These three would also lie on the same spot. All are entirely dependent on its people and offering a high level of customizable services to its clients. As far as labor intensity and customization goes - all are equal. However, they differ in their positioning. Each offers unique services that help to differentiate it: Accenture with it's global outsourcing reach, IBM with its vast technical expertise or D & T with its reputation of business solutions and consulting. The advantages include being able to offer a unique service to the market. A disadvantage might be losing potential work because the client assumes your strengths are in a different space.

Question 1: What organization will you be focusing on this semester? Why did you select this organization?

I chose to focus on Accenture this semester. I chose them because I worked with Accenture for nearly four years and they are entirely a service-based company. Further, they have to deal with supply chain issues to their heavy involvement running global delivery centers for clients all over the world. I think they will be an excellent company to highlight the challenges companies face in a service-based environment.

What elements or your organization's service motivate customers to select your company over alternatives (service winners)?
  • Clients chose Accenture for their ability to deliver a wide array of services with the best possible people. In any service based industry, ultimately the quality of the service delivered rests on the people delivering the service. Accenture is able to offer a wide variety of services from outsourcing to system implementations to process re-engineering consulting.
What elements allow your company to enter the market when present or disqualify them when not present (service qualifiers)?
  • I believe Accenture is qualified to enter the market based on it's ability to deliver the promised service on-time and within budget. From personal experience, clients were happy to work with Accenture based on our ability to provide the required service, but also to provide insight into processes and make recommendations beyond the scope of our work.
What elements, when not present, anger the customer and thus cause them to be lost forever (service losing sensitive characteristics)?
  • Based on experience with Accenture two critical pieces must be in place when providing a service. Professionalism and competence. If either of these are missing it can cause severe damage up to / including losing the contract and irreparably damaging relations with the client.