Transform Data into Profit in Recession

1. Datalab & PANTHEON™ 5.5 Превърнете данните в печалба Андрей Мертел, CEO DataLab

2. Recession? • In recesion, cards are being remixed • Everybody can make money in the good times. In bad times, only the smart & dedicated make money! • The time is painful and deadly(!) • A lot of mid and even larger companies will go bancrupt Especially in CEE the nonfully transitioned ex-government businesses Micro & mini companies: mortality rate is going to be huge in next two yrs • Established players will be hurt the most • Now is the time to build up Dobar menager krizu ne propusta!

3. What’s going on on the market • Recession is hitting everywhere • Yesterday • Companies were engaged in fast development & growth • Funded by cheap money • Liquidity was not a problem • Today • Reduced orders & revenue • You cannot stop during take-off • Money is scarce & expensive • Liquidity is problematic • Country situation • same for all CEE • very hurt also Austria (the main banker of CEE)

4. What is going in the companies • Companies are forced to do more with less • Less stock • Less people • Less money (credit) • Management of stock, money, people,… is gaining on importance • Employee productivity is back in focus • Cutting friction in the process-chain • Holistic view – a company is not alone • A good consultant is capable of eliminating borders and walls • The only solution is to work better / smarter and that it possible only with heavy use of IT Know thy company!

5. What about ERP market? • Projects are beeing delayed • Companies adopt a wait&see strategy • “We will think about it next year” But your cost will not decrease until when? • Licence and consulting fees are in a downslide • In next 2 yrs we will see a boom in e-* • Archive systems • Document exgange • Regulatory reportingtroughout the markets (even in micro&mini)

6. Mid & larger accounts • Yesterday • Companies buying SAP, Navision, Axapta • Image question • A notion that having SAP implemented would fetch higher price in takeovers = stupid • Long implementation times were not a problem • Today • cost/benefit is analysed • A lot of “temporal” solutions • In-house & ’80,’90 technology being replaced (not supportable any more) We see A LOT of demand coming from companies that have been SAP & Navision leads a year ago

7. Micro & Mini • Yesterday • No (or rudimentary) IT support (word, excel) • Double entry (company+accountant) = quadruple work • Once-a-year balance & accounts acceptable • Today • Small must compete with big and information is critical • Cost of double entry is not possible (accountants will go bancrupt or raise prices) • At least monthly view on state-of-the-company • Additionaly incentivised by banks (no balance sheet = no credit!) Huge conversion potential from word/excell & hundereds of clipper app vendors USE IT!

8. Hosting – “IT as a service” • In the west SaaS / ITaaS is the domain of large companies that outsource • In really should be the domain of SMEs • And that’s what we’re seeing in the CEE • Why do we force MS Small Business Server to a 20 ppl company???? • administration • internet threats (hacking), security • A min of 5K EUR investment into server & licences • CEE has a potential to leapfrog and lead in this • huge opportunity for datacenters • consultants, accountants, business developers • and of course: PANTHEON • Take a look at PANTHEON e-accounting video and see the future! mms://media.datalab.eu/bg/marketing/bg/p55/e_accounting.wmv ftp://ftp.datalab.si/Marketing/BG/e_accounting_BG_short.wmv

9. Wrap-up: what to do to win in recession SALES • Emphasise • cost/benefit • OPEX not CAPEX • Be modest – promise what you can make, sell what is needed • Monthly payments (also on service & implementation) • Optimise yours and clients cashflow & you’ll win the deal • Fight harder, make customers see the benefits • More value, less consulting bullshit Use alternative channels. Be innovative! Don’t worry too much about what multinationals are teaching – you’ll never beat them at their game!

10. Wrap-up: what to do to win in recession IMPLEMENTATION • BE COST EFFECTIVE – overbilling is out, performance is in • Sit down with client and plan for maximum efficiency • Avoid 1:1 consulting • What can the clients learn from the web? • Workshops for groups not individuals • Group a couple of small companies from the region = lower the cost per client • Don’t buffer customer laziness with your services – you’ll not get paid • Immediate impact: within 14-30 days of implementation the results must be shown • Give dashboards & … to management ASAP to get their support & affection • If the case is too much pain -> • change client attitude • tell them sincerely you’ll walk out Profesionalism (like arogance) is earned not aquired/given!

11. Wrap-up: what to do to win in recession POST SALE SUPPORT • Get them to self-support • Create & boost community • Usersite is a knowledgebase fountatin (video, forums, documentation) • Make them follow the changes in PANTHEON – they’re developed for productivity • Think about alternative supports: • Accountants: you implement, they support yes, it will lower your revenue but boost your profitability • User 2 user: think about Linux community, let’s create something like it Think out of the box!What really needs to be done? What is it worth to the client? How can I get a percentage of client’s savings?

12. Wrap-up: what to do to win in recession NETWORK • Get connected to gov & EU sources for economic development • subsidies, grants, EU competitivness & business development programs • help your clients get those funds • work local (=municipality): be the consultant that helps local companies to survive by being more productive, better managed, … • Jumpstart “user2user”: • user groups to exchange knwoledge & best practices • Sale on reccomendation: lead forwarding (payable), MLM The team power USE IT !!!

13. Wrap-up: what to do to win in recession • Be persistant • Pasivity is no solution • It’s understandable but unacceptable • Need to find inner strengths  • Don’t give up the last man standing is the winner

14. Thank you K O N T R A X !