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BUSINESS MODEL

Introduction

The new millennium has seen us enjoying the development obtained during the second half of the 20th Century, when technological advances were so big and dizzy to exceed everything men had imagined and made so far.
Telecommunications and computing are at the top of this development and lead us to the process of “globalization” that, after all, is a consequence of the same advances. Breaking time and distance barriers, transmitting and reproducing sounds and images at amazing speeds.
Internet, the famous net of nets, is also a consequence. It is the result of a combination of discoveries that allowed the man to develop an information highway, in the same way he had before built railroad, electrical, road or telephone networks.
If, so far all the networks devised by the man have been constantly growing up and have been used by an increasing number of users, Internet is not the exception.
This introduction is useful to explain why Infobiz is a Business Solutions provider and more specifically, Internet Business Solutions.


The Context

Internet development makes the increase of the bandwidth of the transmission networks and the improvement of the commutation systems necessary, in order to use the same network to connect computers, talk on the phone, listen to music or watch TV.
The above phrase is a conceptual summary of what we often hear in the technology-related environment and which can be defined as the “state of the art” in this field: OPTIC FIBER, WIRELESS, TCP/IP, ATM, VoIP, VIDEOCONFERENCES, etc.
The knowledge of the emerging technology is of vital importance to enter the market, but not enough to achieve success.
The understanding of the scenario where the technology is going to be implemented, the strengths and weaknesses of the actors and the needs of the market, make the difference between those who achieve their goals and those who do not.
We manage the technology and understand the context.
Therefore we define, develop and market products and services aimed at those who wish to expand their business platform through the use of the Internet as a fundamental tool to achieve it.
We found an unsatisfied market and we have the resources, the vocation and the know how in order to respond to it with an offer of high quality solutions and affordable prices.


Objectives


Our objective is to design and develop Internet Solutions to meet the needs of access, presence, marketing, sales and interconnection of companies and professionals by commercializing them at affordable prices for their target market.
From this common objective, we can see particular targets for each of the areas to be covered.

Consultancy services
As a gateway to the provision of products and services, the purpose of our consultancy department is to facilitate Internet access to companies and professionals, without the need to hire permanent resources.
Our consultants have an outstanding capacity for the determination of the technical and economic feasibility, the project’s design, the development of the websites, the training of the staff, the methodology to promote and sell products, the access security and the information and the interface with the computer systems.

Technological Architecture and Software Factory
We mostly differentiate in the ability to provide our customers with added value over access. We have the technology and the know how to meet this objective and offer the market:

• Website Development,
• Applications Hosting,
• Firewalling,
• Virtual Private Networks,
• Digital Signature with public key cryptography,
• Safe Connectivity between remote sites,
• Electronic Trade with “Business to Business” and “Business to Consumer” solutions,
• Portals with Content Management, Intranets and Extranets.

Business on the Net
About this point, we also wish to differentiate our common objective from what is offered in the market. We think that Business on the Net are not limited to the promotion of the products with banners or the purchase of books, discs or computers.
The best business that can be done on the net is assisting companies to do "their own Business”. That is to say: Interconnect their branches or agencies, take their sellers or customers' orders, request supplies to their suppliers, facilitate the communication among their executives when they are outside the company and, in short, make the company's internal network extend across the country or the world.


Summary of the Market

In order to be consistent with the Introduction and above description of the Context within which Infobiz businesses develop, we will take the data described in this chapter as a sample of the market growth.
We should also be very clear in respect of the market segment where we are positioned, which includes small and medium-sized companies, professional offices, civil associations and non governmental organizations. Those who were neither included in the target of big computing companies nor in the individual or familiar consumption segment.
They are those in need for consultancy services in order to help increase its organizational culture as a way to access to the benefits of technology.
We know that there is not much information available about this segment and that it is not covered by big technology providers, in spite of their claims.
We know that, according to the Small and Medium-Sized Company Secretariat of the Nation, there are at least 50,000 companies in the country with feasible economic and finance projects. Most of them are situated in Capital Federal and Greater Buenos Aires, our area of influence.
Once these explanations have been made, we can analyze the data available on the Argentine Internet market:

Argentine Internet Market

TOTAL GROWTH OF INTERNET USERS
Year 1997 50.000
Year 1998 288.000
Year 2001 2.000.000
Year 2006 10.000.000
Year 2008 16.000.000
Year 2009 (estimated) 20.000.000
Source: Prince and Cook
ELECTRONIC TRADE GROWTH IN ARGENTINA
In millions of Dollars
SOURCE
YEAR 1997
YEAR 2000
YEAR 2008
Aladi, Prince and Cook
3,3
1.640
4.000

Conclusion
The figures are eloquent, we regard the Internet market as one of the most promising markets to do business, even if you take into account how highly competitive it is.


Opportunities

The business opportunities in a market that has a so high and sustained growth perspective are many and diverse, therefore we will try to focus on the opportunities we can see in the market we want to capture.
The main characters of the offer of Internet services and developments are concentrated in two clearly-defined segments: On the one hand, big clients and individual users, and on the other hand, the corporative and mass segment.
Executives and technicians from big supplier companies cater for the corporate segment, while the mass segment buys low cost products or download free software.
The big suppliers of the market can not cater for the smallest companies because the weight of their structures discourages this type of transactions in the corporate segment, all businesses must be “big businesses”. Therefore, if the client is either classified as big or mass.
Big companies’ plans to cater for the small and medium-sized (pyme) segment fail in spite of the marketing efforts, because they fail to understand the client's problems, select the agents or distributors or, simply, because they do not know how to do it.

Target
This last segment is our target, comprising a number of entities known as “Pymes”: Companies, Professional Offices, Clubs and other Civil Organizations, Countries, Commerce Chambers, Trade Unions and other Non governmental Organizations.
Our target is made up by institutions with a certain computing level, small or medium-sized networks, of local or extended area, demanding for more professionalized services than the mass market, but at prices in line with their cost structures.
They are potential clients in need for professional advice, training, products, services and technical support. They also need to widen their business possibilities or prop their development up.
They are the engine for the economy and employment growth, and they are therefore being considered by governments and international credit and development institutions.
They need customized services and neither a reduced copy of the offer for the big companies nor a set of products addressed to the mass consumption segment without support or integration.


Business Concept

Market Knowledge
The professional backgrounds of the company’s managers, as stated on their own resume, make up a set of experiences and skills that acts sinergically when conceiving solutions or interacting with customers.
The experience acquired in the information and telecommunication markets as well as the quantity and quality of the projects undertaken by each one of us, enable us to skillfully operate in such diverse areas as Government, Municipalities, Banks, Utility or Industrial Companies.

Technology knowledge
The current “state of the art” of the technology related to the Internet was not brought about in the market by chance. It was only after years of passing from the proprietary systems to the open ones, from the big mainframes to the interconnected networks and from the first transmission protocols to the TCP/IP.
The knowledge of the technological present and the future trends are complemented, in our own case, with the experience accumulated over the recent years. We know what consequences and facts of the recent history brought the present technological situation about.

Competition Analysis
The market and technology knowledge makes us different from both those who enter to the Internet business attracted only by a market in expansion and those who only have a technical profile.
We know those who are in this market to achieve the increase of their telephone network traffic, those who do not want to miss the opportunity to expand their multimedia, those who want to take advantage of the Internet to sale another product of theirs and those who want to develop contents to sale their companies in the short term.
Those facts allow us to evaluate the strengths and weakness of each competitor of us more precisely, regardless the size of them, widening up our range of business opportunities.
We win business where the big ones do not reach because of their lack of knowledge or lack of commitment and where the small ones do not reach because of their lack of vision, resources or management.

Products and Price Policy
Without trying to set a price policy in a few words, we will try to give an example of what types of products and services we offer to the chosen market segment:

For Consulting Services:
For projects that can be carried out within a total of 20 and 2000 hours of consulting, the price to be paid by the customer will depend on the expertise of the consultant assigned to the task.

For Developments on the Internet:
In this case the price shall be determined according to the complexity of the application to be developed and the software components that could be reused. The typical developments are Portals, Electronic Commerce sites, Intranet and Extranet Applications

Added Value
Adding value to the Internet access service can be understood in many different ways, for example, the development of content, search engines, access portals and also web product sale applications.
Our concept of added value goes beyond these solutions and, we believe, it is closer to the specific needs of the companies.
The starting point is, of course, the publishing of the company information on the Web, but the proposal continues with an access to own or third parties data, continues with a performance of transactions over the Internet and ends with the transformation of the Global Network into a virtual extension of the company’s own network.

Integration of Solutions
Every product and service that we offer over the Internet makes up, by themselves, an interesting proposal for the companies.
We consider, however, that presenting the offer as a jointly solution, with pre and post implementation support, with a help desk to provide permanent assistance to customers and with only one company as a turnkey project supplier, the attractiveness of the offer improves dramatically.
We know that in order to succeed in the integration projects, it is necessary that we handle the technology used and have a high planning and operation capacity. The above mentioned are our own capacities and we offer to the market an advantageous combination of products, services, consulting and management.

Call to Serve
We do not want to go on repeating familiar concepts such as customer satisfaction, customized assistance, or service quality.
Our professional backgrounds and the references that can be obtained in the market show clearly our call to serve.

© 2008 infoBIZ Soluciones de Negocios S.A. | Tel: (54 11) 5258.0103 | soluciones@infobiz.com.ar