Integral Security Inc. Skillfully Leveraging Technology for Your Company By Jonathan Hutchins Disruptive Innovations Products or systems that create entirely new markets Would you like To tap new markets? More job orders? More candidates that are highly qualified? More matches between candidates and job orders? Problems Faced by Established Companies They have trouble countering or embracing disruptive innovations that are on the horizon. Organizations customarily develop mindsets and processes that revolve around doing what they already know. Problems Continued Once that pattern becomes established, managers have great difficulty justifying to others or even themselves the need to turn their processes upside down to respond to a barely emergent market change By the time the threat is apparent, it's usually too late; Upstart companies have seized a substantial lead Why Embrace Disruptive Innovations? People were trying to fly in the middle ages by fabricating wings, strapping them onto their arms, jumping and flapping real hard. For centuries subsequent innovators framed the problem as: the guys who died just didn't flap hard enough. Yet it still never worked. Why Embrace Disruptive Innovation? (Continued) Once they understood that there were some basic laws of nature that they needed to account for, once Bernoulli understood fluid mechanics well enough to articulate his principle, then there was a law of nature we could actually harness. Why Embrace Disruptive Innovation? (Continued) A lot of good managers are flapping their wings They are working very hard, but they are not achieving optimum results Friend or Foe? Does this technology innovation constitute a threat to me or is it in fact a great growth opportunity? If you look back in history, the disruptees always viewed new technology as a threat. However, they were all poised on the brink of a big growth opportunity. Friend or Foe? (Continued) How did the disruptees act? First they discounted the innovation Second they framed it as a threat They ended up getting killed How to harness disruptive technology? Look at it as a growth opportunity and not as a threat The problem with viewing it as an opportunity instead of a threat is that a threat elicits a far deeper response Was the Internet a Disruptive Technology (1996)? Dell It's a sustaining technology It made their processes work better It helped them meet the customers' needs at lower cost Compaq It was very disruptive to the company's dealer-only sales model What Makes a Good Disruptive Business Model? It enables a larger population of less skilled or less wealthy people to do something more simply and conveniently that could historically be done only by experts or the wealthy It exploits the innovation's unique attributes in new applications rather than stretching to meet the product or service requirements in the mainstream market It disrupts markets that are underserved rather than seeking to disrupt over-served markets What Makes a Good Disruptive Business Model? (Continued) It reshapes the business model to earn profits in a new way It facilitates existing patterns of customer behavior rather than assuming a change in customer behavior It focuses on a specific customer need and builds a brand positioned squarely on that need Opportunity How can your company recognize disruptive innovations and rally to take action? Placement Increase thru implementation of candidate selection system Candidates placed per recruiter week. Current Recruiting Methods 1.25 Integral’s Candidate Selection System 25 Revenue Generation from Candidate Selection System versus Current Business Practices 25000000 20000000 15000000 Traditional 10000000 Candidate Selection System 5000000 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Integral Security’s Proposal Legally binding 50/50 fee split agreement This will allow us to exceed your expectations This is a standard practice within the industry Teakell Healthcare Solutions has split the fees in the past with 30-60% paid to their vendor Provide the client with candidates or job orders on an as needed basis to either fill the client’s job orders or place the client’s candidates. Proposal Continued (Results are limited by the client) The emailed proposal is limited to the amount of placements CTA can make in a year Integral Security Inc. is not sure if you can effectively use the volume of information gathered Risks Shouldered by Integral Security Inc. Resource intensive Servers Bandwidth Programmers Opportunity Costs All development has been done by Integral Security Inc. No commitment fee has been paid No retainer No development cost paid by Charles Teakell & Integral Security Inc’s Concerns Charles Teakell & Associates is the only company mentioned in the proposal email Joe Teakell is the vice president of Teakell Healthcare Solutions LLC Initial meeting mentioned a semi-exclusive agreement, however the email has an exclusive 5 year agreement Integral Security Inc is willing to give the client first right of refusal on Integral’s open job orders or available candidates Win-Win Charles Teakell & Associates Et al Significant increase of revenue from: Job orders that would otherwise go unfilled Candidates that would otherwise not be placed No downside risk No development costs No fees split unless results are achieved Win-Win continued Integral Security Inc. Allows for the technology to be fully leveraged. Application of resources on an as needed basis to maximize return on investment • Telephone staff (Already in place for Integral Security’s help desk customers) • Servers • Bandwidth • Programming Risks can be minimized by providing a more turn key solution to the client Summary Your revenues will increase dramatically Your risk exposure is minimal This proposal is a win-win for everyone Feel free to email me at jhutchins@integralsecurity.com should you have any questions. Content Slide Candidate Selection System will significantly increase your placements. Your Total Revenue will increase dramatically.