Business model of NEORIS

Customer Segments

NEORIS has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms of all industries and sizes.

Value Proposition

NEORIS offers five primary value propositions: convenience, cost reduction, performance, risk reduction, and brand/status.

The company offers convenience by making life simpler for clients. It provides end-to-end SAP implementation services, with specific steps including pre-project activities, roadmapping, benefit optimization, project management, infrastructure management, training, and analytics.

The company provides a cost reduction value proposition. Its nearshore outsourcing model, with service providers in a similar time zone, offers high-end resources at competitive costs.

The company demonstrates strong performance through tangible results. It claims its services can accomplish the following:

• Improve purchasing/supplier management, resulting in a 5-15% reduction in procurement costs
• Consolidate supply chain management , resulting in a 10-25% increase in market share
• Accelerate engineering and R&D, resulting in a 15-30% reduction in time-to-market
• Increase logistics and distribution visibility, resulting in a 20-40% reduction in inventory
• Increase manufacturing productivity, resulting in a 10-15% reduction in manufacturing costs
• Improve sales/distribution/marketing, resulting in a 20-40% decrease in order cycle time/cost
• Increase finance and administration control, resulting in a 5-15% improvement in profitability

The company reduces risk by maintaining high quality standards. It has earned the following certifications, among others:

• The CMM Level 3 certification
• The ISO 9001:94 certification
• The Safety World Class Quality Assurance Certificate

The company has established a strong brand due to its success. It is the largest IT consulting and systems integration firm in Mexico, and among the top five such companies in Latin America. It maintains a presenc e in more than 30 countries, with operations in Latin America, the United States, Europe, Africa, and the Middle East. It has completed more than 2,000 projects and over 300 SAP application implementations.

It has a staff of over 3,500 consultants and serves over 600 clients worldwide, including 66% of the top 100 Latin American firms. Its prominent customers in general include Lowe’s Navistar, Cisco, PepsiCo, and At&T,  It has worked with 73% of its clients for more than five years. More than 94% of its clients rated it with an excellent delivery quality scorecard over three years. Lastly, it has won a number of honors, including the following:

• First and only native Latin American firm to be named an SAP Global Services Partner
• A 2016 SAP Pinnacle Award in the Customers’ Choice – Service Category
• Inclusion in the Global Outsourcing 100 by the IAOP, with citation as the top firm in the Customer References and Programs for Innovation categories
• Recognition as the Best IT Provider in 2015 by CPFL Energia
• The Frost & Sullivan Award in the Healthcare Latin America category

Channels

NEORIS’s main channel is its direct sales team. The company promotes its offerings through its website, social media pages, and participation in forums, summits, and conferences.

Customer Relationships

NEORIS’s customer relationship is primarily of a personal assistance nature.

The company’s employees work closely with clients – activity starts with assessment, strategy development, and implementation and continues with hosting/extended support and post-implementation services.

That said, there is a self-service component. The company’s website features an “Insights” section that includes useful resources such as white papers, case studies, and eBooks.

Key Activities

NEORIS’s business model entails designing, developing, and delivering its services to customers.

Key Partners

NEORIS forms strategic alliances with technology providers through which it recommends their products for use by its clients. Its most prominent partnership is with SAP. Other specific partners include HP, IBM, Cisco, Oracle, Microsoft, Qlik, Tableau, Teradata, and Zebra Technologies.

Key Resources

NEORIS’s main resources are its human resources, who include the sales employees that promote its services and the consultants that guide clients. SAP consultants constitute 70% of its workforce.

The company also maintains important physical resources in the form of six SAP development centers that offer operation and maintenance services and three HANA Centers for Excellence that provide support and expertise on the technology for in-memory computing.

Cost Structure

NEORIS has a value-driven structure, aiming to provide a premium proposition though significant personal service and frequent service enhancements.

Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of sales/marketing and customer support/operations, both fixed costs.

Revenue Streams

NEORIS has one revenue stream: revenues it generates from the fees it charges customers for access to its services.