Big Companies Look At Opportunities With Small To Medium-Sized Business

EDS adapts its business relationships to meet the changing needs of its clients and markets.

Envisioned in the back seat of Ross Perot’s car in 1962, Electronic Data Systems (EDS) has grown to become a global IT services provider, with five lines of business, 140,000 employees in 60 countries and 2001 revenues of $21.5 billion. With nearly 40 years in the IT services industry, the company has seen many changes in the needs of its clients and markets.

One such change has been growth of small and medium-sized enterprises, which are realizing the value of the Internet to business and searching for solutions that will improve their business processes and enable them to relate better with customers. EDS realized that to remain competitive, this market was important to retain. Gaining hold of the market also meant they could develop strength in regions where small and medium-sized companies were prevalent.

A challenge that stood in the company’s way was its large size. The perception is often that larger organizations cannot provide the same level of customer service or customized solutions that smaller companies can give because they tend to put layers between themselves and their clients. The challenge for EDS was to ensure that its size did not affect its ability to provide small and medium-sized businesses with services and solutions they needed. By doing so, the company could also alter customers’ perceptions around large businesses.

Terry Ward, a Service Line Manager for EDS Canada’s E-solutions line of business (one of four) in Toronto, says, “We have and continue to do a lot of business with small and medium-sized companies, particularly in Western Canada - EDS is viewed basically as a large outsourcer - that’s our reputation.” Therefore, to remain successful in this market, the company has worked to show customers that in spite of its large size it can still give them the level of service they need and the products they want.

In 1999, EDS launched a Web-based tool called a Service Excellence Dashboard. The goal of the tool is to enable executives to quickly identify and act upon client issues and promote better collaboration between business partners.

Ward says, “Analysts in the U.S. view this tool as a competitive advantage for us. It is a visual tool used by our executives to measure the performance of our delivery teams on a client’s project. The client has access and input into it.”

Ward continues, “Anybody who has found themselves in a situation where there’s a performance issue can be amazed at the effort it takes to figure out who is responsible.” With its Service Excellence Dashboard EDS can identify where the issue lies and solve it immediately. For clients who are small or medium-sized businesses, the tool enables them to keep abreast of their project, and have control over their project development.

EDS also places a lot of importance on partnership development. "We work a lot with alliances, best of breed companies, and industry leaders in joint marketing ventures and solutions.” By working with these partners the company is able to work with customers outside its direct customer base, and provide these customers with a choice of solutions that bring successful results.

To gain customer loyalty, EDS focuses on developing ‘communities’ with its customers. Ward explains, “One of the things companies are starting to realize is the cost of getting a customer is expensive and so they’re spending money on retaining them - so things that we would talk to our customers about are setting up a sense of community. People that participate in a sense of community tend to be repeat shoppers. They seem to have a higher buy pattern as well so I think you’ll find that customer loyalty is important to attain.”

EDS helps small to medium-sized clients, who want to improve or build a successful online presence, develop customer loyalty and high-level customer service. The company’s E-business services include custom-packaged solutions to meet the unique needs of every client. For example, Net Store Xpress is an off-the-shelf solution designed to get businesses online with a fully functional E-commerce storefront. Included in the web site is a catalogue of subscription services with “functions for processing, fulfillment and customer relationship management.” Ranging from content management tools and portal solutions, to Internet marketing and web site development software, EDS provides products and services to enhance the interactive presence of any site, whether it is large or small.

Aside from EDS, Ward reveals some important trends in the E-commerce industry that will determine the success of many companies. One such trend is the perception of trust. In the online environment this is particularly true. If customers do not trust your site, they will not buy online. Ward believes that brand recognition attracts consumer trust. "That’s where trusted companies like Sears and Canadian Tire are successful - there’s an identity, there’s a relationship.”

Ward also believes that bricks and mortar companies that move to the online environment will have a greater advantage over pure Internet players. He says, “From our perspective we’re starting to see traditional businesses moving their transactions online.”

According to Jupiter analysts, “Of the top 50 retail sites, ranked according to unique visitors in Media Metrix ratings reports, bricks-and-clicks outnumber pure-players.”

Industry analysts state that the reason traditional businesses can succeed in E-commerce is because they have established customers, a brand, a track record for proven results and a method for working successfully with suppliers and partners.

Ward explains that success by traditional businesses online is due in part to their multi-channel approach, which brings a more convenient online and offline shopping experience to consumers. “Companies like Sears and Future Shop are using the Internet as another sales channel, so if a customer comes in it doesn’t matter if they come into the store, go to the Web or catalogue. They get the same look, feel, service and branding.”

EDS has come a long way in 40 years. It is the company’s ability to adapt its business relationships with the needs of clients that enables it to remain successful in a competitive IT services industry. Eliminating boundaries, establishing trust and collaborating in new ways drives the business forward and will solidify its hold in the small to medium-sized market.

To learn more about the company’s solutions for small and medium-sized businesses, visit http://www.eds.com.