Careers at Gemalto
Gemalto’s mission is to help people to trust one another in an increasingly connected world.
Gemalto is the result of a merger between two firms: Gemplus and Axalto. In 1979 tech firm Schlumberger licensed various chip card technologies. In the 1980s it produced phone chip cards for Swedish operator Telia and France Telecom. It then formed alliances with telecom operators globally, enabling it to play a role in the creation of the GSM mobile communication standard.
In the early 1990s Schlumberger designed a Subscriber Identity Module (SIM) card to facilitate the launch of GSM in Europe. This led to the deployment of microprocessor card technology as a security and access solution for mobile telephony throughout the world. The rise in use of SIM cards helped the company experience significant growth in revenues and product introductions.
Schlumberger’s success enabled it to purchase many other firms, with acquisitions including Cowells, Malco, Printer, Cardtech, and Solaic. Its card activities at the time were managed by various subsidiaries. In 2003 the company created a division to consolidate these various units into one entity, calling it Axalto. Axalto was spun off publicly, becoming listed on the Euronext Paris market.
In 1988 Marc Lassus and some colleagues founded Gemplus, a provider of pre-paid phone cards. Its business was conducted through Gemplus S.C.A., a French limited partnership. In 1999 Gemplus S.C.A. merged with Gemplus Associates, a general partner, to form joint stock company Gemplus S.A. In 2000 it was reorganized and a new holding company emerged -- Gemplus International S.A.
In December 2000 Gemplus International went public and was listed on Euronext Paris and NASDAQ. In June 2006 it merged with Axalto to form Gemalto, with the goal of being a leading provider of digital security solutions. The new company focused on three areas: mobile telecommunications, secure transactions, and security, particularly for administrations and networks (cloud computing).
Business model of Gemalto
Gemalto has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at businesses and governments.
Gemalto offers three primary value propositions: performance, risk reduction, and brand/status.
The company demonstrates strong performance through tangible results. Specific examples of positive outcomes for clients include the following:
- Fraser Health Authority utilized Gemalto’s authentication solution, IDPrime smart cards, for its healthcare staff, resulting in increased patient satisfaction and a 20% reduction in support costs
- British Sky Broadcasting Group used Gemalto’s IDPrime.NET Converged Badge solution for 4,000 users, resulting in reduced costs and increased security
- AXA Technology Services used Gemalto’s authentication solutions to strengthen overall IT security by reducing password sharing, badge swapping, and network attacks
The company reduces risk by maintaining high safety and security standards, as follows:
- Its solutions utilize multi-factor authentication, making logging in more secure
- Its hardware security modules provide strong encryption, authentication, decryption, and digital signing services for a broad range of applications
- It maintains a centralized organization that focuses on the prevention of cyber security risks, called the Computer Security Incident Response Team (CSIRT)
The company has established a strong brand due to its success. It is the world’s largest producer of SIM cards. It generated €3.1 billion in revenues in 2015. It has over 14,000 employees operating out of 118 offices in 49 countries.
It serves over 30,000 organizations in over 180 countries, and they include many prominent companies, such as Amazon Web Services, Verizon, Audi, and China Telecom. Its survey of customers in 2015 indicated that 86% of them were "satisfied" or "very satisfied" with its service. Lastly, it has won a number of honors, including the following:
- The Cybersecurity Excellence Award for Best Multi-Factor Authentication Solution from the LinkedIn Information Security Community
- Recognition as “Best Identity Management Platform” at the GSN Homeland Security Awards
- Recognition as the world's number one supplier of contactless and mobile solutions for public transportation by three market research firms (ABI Research, Juniper Research, and IHS)
- The Digital Payments Award from Juniper Research for Digital Payments
- The Frost & Sullivan Customer Value Leadership Award for Border Control and Biometrics
Gemalto’s main channel is its direct sales team. It also utilizes resellers and distributors to sell its products. The company promotes its offerings through its website, social media pages, and participation in summits, exhibitions, and conferences.
Gemalto’s customer relationship is primarily of a self-service, automated nature. Customers utilize the service through the main platform while having limited interaction with employees.
The company’s website provides answers to frequently asked questions. It also provides access to an e-mail newsletter featuring product updates and industry trends; access to “Digital Security in Action”, an online magazine featuring articles about innovations; and access to print magazine “The Review”, which discusses trends in the mobile, payment, public sector, IT security, and M2M categories.
Despite this orientation, there is a personal assistance component. Gemalto offers general phone and e-mail support. It also provides over 50 courses on digital security and communication technologies. The classes can be taken at public locations or conducted privately at company sites.
Gemalto’s business model entails designing, developing, and producing its products for customers.
Gemalto maintains the Gemalto Partner Network, which includes four types of organizations:
Business Partners - Firms that promote and resell Gemalto products and solutions. Specific partners include Microsoft, IBM, Citrix, and Open Trust.
Technology Partners - Firms that develop products (software and/or hardware) that complement Gemalto‘s solutions. Gemalto ensures the products work together and co-markets them.
Solutions Partners - Firms that use Gemalto‘s development tools and reference designs to develop solutions. Gemalto markets these solutions to its clients and may resell them in some cases.
Original Equipment Manufacturers – Firms that embed and resell Gemalto‘s technologies in their products with their own branding.
Benefits provided to partners include the following:
- Special pricing
- Sales and technical training
- Technical assistance
- Marketing and pre-sales support
- Access to an online CRM
Gemalto’s main resources are its human resources, who include the over 3,000 engineers it employs to design and develop its products, the sales staff members that promote the offerings, the training staff members that provide instruction, and the customer service personnel that provide support.
It also maintains important physical resources in the form of 45 personalization and data centers, 27 research and software development centers, and 17 production facilities located worldwide. Lastly, it places a high priority on its intellectual property, and filed applications for 107 new patents in 2015.
Gemalto has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost driver is likely cost of products, a variable expense. Other major drivers are in the areas of sales/marketing and research/development, both fixed costs.
Gemalto has two revenue streams: revenues it generates from sales of its products/solutions and revenues it generates from sales of its professional services such as training.
info: Philippe earned a degree in Engineering (Telecom and Microelectronics) at the Institut National Polytechnique de Grenoble and is a graduate of the ESSEC Business School. He previously held various senior roles at Gemalto, including Chief Operating Officer.
info: Isabelle earned a degree in Foreign Languages at la Sorbonne Nouvelle University and a Master’s in Management at the Ecole Superieure de Commerce d'Amiens. He previously served as VP Corporate Communication at Gemalto.
info: Martin earned a Bachelor of Electronic Engineering degree at University College Dublin, an MBA at INSEAD, and a Ph.D. in Integrated Optics at the Institut National Polytechnique in Grenoble. He previously served as President of Asia at Gemplus.
info: Jacques earned degrees from the HEC School of Management in Paris and an MBA at New York University. He previously served as the Head of the Valuation and Strategic Finance practice at KPMG Corporate Finance and as Group CFO of Casino.
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