understanding the market segment industry analysis
TRANSCRIPT
Understanding the Understanding the Market SegmentMarket Segment
Industry AnalysisIndustry Analysis
3 Year Trend3 Year Trend
$460,000,000
$480,000,000
$500,000,000
$520,000,000
$540,000,000
$560,000,000
$580,000,000
1999 2000 2001
Market Value
Workforce LogisticsWorkforce Logistics
YearYear Sub Contract Sub Contract EmployeesEmployees
Remote Remote EmployeesEmployees
19991999 9%9% 10%10%
20022002 25% 25% (VAR Magazine)(VAR Magazine)
25% 25% (Kronos Research)(Kronos Research)
Market Segments Market Segments
Hourly
Professional Hourly
Salary
51%
26%
23%
Market SaturationMarket Saturation
Manual
Fully Automated
Partially Automated
40%
30%
30%
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
10-19Emp
20-49Emp
50-99Emp
100-249Emp
250-499Emp
500-999Emp
1000 orMore
# of Establishments
Segment Value (retail)
Market Segment PotentialMarket Segment Potential
In 1,000’sIn 1,000’s
10 to 19 Employees10 to 19 Employees
Number of Number of EstablishmentsEstablishments
1,800,0001,800,000
Total Market ValueTotal Market Value $250 Million$250 Million
Average SaleAverage Sale $600$600
Over 90% of establishments
Difficult to reach 1.8 million establishments
Impossible to make a profit with $600
20 to 49 Employees20 to 49 Employees
Number of EstablishmentsNumber of Establishments 549,785549,785
Total Market ValueTotal Market Value $192 Million$192 Million
Average SaleAverage Sale $1,750$1,750
Has only 30% of the establishments as 10-19
Nearly the same value opportunity
Still need to mitigate cost of sale
50 to 99 Employees50 to 99 Employees
Number of Number of EstablishmentsEstablishments
188,676188,676
Total Market ValueTotal Market Value $166 Million$166 Million
Average SaleAverage Sale $4,500$4,500
Relative Success
100 to 249 Employees100 to 249 Employees
Number of Number of EstablishmentsEstablishments
109,860109,860
Total Market ValueTotal Market Value $260 Million$260 Million
Average SaleAverage Sale $10,937$10,937
250 to 499 Employees250 to 499 Employees
Number of Number of EstablishmentsEstablishments
27,92227,922
Total Market ValueTotal Market Value $150 Million$150 Million
Average SaleAverage Sale $20,312$20,312
500 to 999 Employees500 to 999 Employees
Number of Number of EstablishmentsEstablishments
10,62010,620
Total Market ValueTotal Market Value $124 Million$124 Million
Average SaleAverage Sale $48,300$48,300
Over 1,000 EmployeesOver 1,000 Employees
Number of Number of EstablishmentsEstablishments
6,0086,008
Total Market ValueTotal Market Value $215 Million$215 Million
Average SaleAverage Sale $112,500$112,500
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
10-19Emp
20-49Emp
50-99Emp
100-249Emp
250-499Emp
500-999Emp
1000 orMore
# of Establishments
Segment Value (retail)
Market Segment PotentialMarket Segment Potential
In 1,000’sIn 1,000’s
AdvertisingAdvertising
MarketsMarkets Solutions for Small BusinessesSolutions for Small Businesses
Enterprise SolutionsEnterprise Solutions
Solutions for Small Solutions for Small BusinessBusiness
Goal Minimize prospecting cost
Affordable strategies Maximize selling effort
Professional literature Collateral materials accomplish most of
the selling
Solutions for Small Solutions for Small BusinessBusiness
Strategy Cards Payroll service relationships Web links (updated web site) Follow up with first class literature
Enterprise SolutionsEnterprise Solutions
Goals Advertise a national and professional
image Build confidence and trust in the market
place Communicate our technology edge
Enterprise SolutionsEnterprise Solutions
Strategy Case studies White papers More trade shows Executive Briefings Professional collateral material Competitive implementation services
What Industry Are You In?What Industry Are You In?
Time and Attendance Time and Attendance Time & LaborTime & Labor Labor ManagementLabor Management Front line labor managementFront line labor management Employee Relationship Employee Relationship
Management (ERM)Management (ERM)
Implementation WebImplementation Web
Sales
Training
Maintenance
Installation
Integration
BA/AE
Project Manager
User Community
Purchasing
Why Implement Services?Why Implement Services?
89%
55%
62%
60%
65%
99%
90%
85%
80%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Improve Services toEmployees and Managers
Increase Information Access
Reduce Administrative Costs
Enable HR to Serve MoreStrategically
Eliminate ProcessSteps/Approval/Forms
2001
2000
Employee Self ServiceEmployee Self Service
Application Planned In Use
Employee Communications 95% 75%
401k service 85% 72%
Open Enrollment 88% 55%
Benefit inquiries 88% 47%
Training registration 73% 40%
Personal inquiry 85% 38%
Personal data maintenance 88% 38%
Time card entry 64% 37%
Withholding changes 77% 32%
Electronic paystubs 72% 29%
Vacation, leave requests 53% 22%
Family status/life event changes 88% 22%
Services for retirees 32% 10%
Manager Self ServiceManager Self Service
Application Planned In Use
Travel and expense management 65% 42%
Time card approval and reporting 65% 33%
Labor & Budget analysis 42% 25%
Management reports 73% 18%
Employee changes and transfers 69% 11%
Approvals 65% 11%
Leave management 50% 5%
Workforce planning* 29% 2%
*Workforce planning is a strategic application
Value of Self ServicesValue of Self Services
Employee Size 2001 Budget 2001 In Use $ per Employee
Over 50,000 $1,800,000.00 $2,300,000.00 $ 32.86
10,000 to 49,999 $1,300,000.00 $1,600,000.00 $ 80.00
5,000 to 9,999 $1,200,000.00 $1,350,000.00 $195.65
1,000 to 4,999 $1,100,000.00 $1,300,000.00 $ 590.91
1 to 999 $ 900,000.00 $1,100,000.00 $1,466.67