INNOVATE​ OR ​STAGNATE​:

THE CASE OF INFODYNAMICS TECHNOLOGIES

Business Leaders’ Summit 4.0

College Category Case

TEAM KEMPers
Artesano, Janille Marie A.
Baldonasa, Prince Jhon D.
Basoy, Kate Wenjie V.
Dondoyano, Elaine T.

February 16, 2019

 Executive Summary

InfoDynamics Technologies is a​n IT Solutions Provider ​firm founded by Engr. Jose Rizaldy
G. Harder. The firm is an incubatee of the SEEDS-TBI (Small Enterprise and Entrepreneurial
Development Services Technology Business Incubator) that is set to move out of its facility in 3
months. Given a financial grant of two million pesos from DOST (Department of Science and
Technology), the firm is challenged to develop the current software project with the decision to
innovate another software product that has huge business potential. In order to maximize the firm’s
business capabilities, strategies were recommended for the company to consider.
For the company to efficiently set its goals, a time schedule should be made. This helps in
increasing the productivity and effectiveness of the software programs developed. Due to lack of
logistics, it would also be effective if the company starts to build a software development team
consisting of full-time workers. In developing the softwares, it is important to also monitor or track
the progress so that lapses can be minimized. Considering that the firm will soon become independent
from SEEDS-TBI, it is recommended to acquire new clients and create network opportunities to
expand the business. In the expansion of business, marketing it through the use of social media and
improving the firm’s official website would be advisable. Risks are inevitable for every business
involves risk-taking. The company should choose to risk in developing both current and new software
in order to not compromise huge business opportunities.

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 I. Statement of the Problem

Infodynamics Technologies is faced with a dilemma of what steps to take given that
the company is moving out from the incubator in 3 months​－ whether to expand or to
stagnate the business.
If it chooses to expand, the new software product will be the first one in the market
but it needs to keep up with the strong competition in the market considering that the current
software project with DOST is still on progress. If it chooses to stagnate it will lose the
opportunity to hold its own niche in the market since the innovation in the IT industry is in
fast pace.
However, the business should ensure not just its survival but also to maximize its
leverage in the market despite of the fierce competition.

II. SWOT Analysis

STRENGTHS Implications/Explanation

First to provide software subscription Establishes customer/client loyalty and

services to public sector clients brand recognition

High switching cost Once a client is getting used to the firm’s

software, it dissuades clients to switch to a
rival product

Financial grant and support This strengthens the firm’s foundation in

developing and innovating products and
services

WEAKNESSES Implications/Explanation

Lack of logistics Improvement of logistics increases

efficiency of customer service and overall
firm performance

More investment in new technologies Given that the firm is planning for
expansion and developing products and
maybe even services in the future

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 Lack of skillful workforce The firm should hire full-time employees to
enhance competency and increase
productivity.

OPPORTUNITIES Implications/Explanation

Government Support Other than the support it gained from

DOST, it can also gain support from the
other government agencies since it provides
services for them.

Increasing need for firm’s product and Using softwares can speed up and simplify
services tasks which saves time and effort

Using internet as a way to market In a highly competitive environment, the

products and services firm should promote their products and
services in order to reach other clients

THREATS Implications/Explanation

Emerging technology-wise companies Creates more competitors in the market thus

lessens the firm’s market share

Imitation and improving firm’s products Other entrants can take advantage of the
or services by other companies firm’s failures to produce better products
and services

III. Goals and Objectives

1. To develop a strategic plan for the business in order to increase its potentials and be a
leading information technology solutions provider in the region.
2. To prepare the company to actively contribute to the local economy once it will
move out in the Small Enterprise and Entrepreneurial Development Services
Technology Business Incubator (SEEDS-TBI).
3. To be able to advice the company whether or not they should invest on the
development of the new software product.

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IV. Strategies

Innovate or Stagnate
In a highly competitive environment, InfoDynamics should take the risk to continue
developing the new software product while completing the current software project with DOST. With
innovation, comes risk. All businesses involve taking risks and letting go of such opportunity
especially if it has great potential to the market would be a loss to the firm. Not all risks pay off but
the moment it pays off, it positively affects the firm.
InfoDynamics Technologies will implement the following strategies to efficiently manage in
both handling and developing the current and new product.

A. Time Framing
Establishing a time frame for the company helps it achieve its goals more effectively. Setting
milestones for specific dates helps in accomplishing more tasks in a shorter period of time and gives
time for solving circumstances that may rise. Since the current software is being supported financially
by the DOST and only covers the period of one year (March 2018- March 2019), InfoDynamics
should maximize its resources in developing the current product first. Aside from the financial help,
the firm should also take advantage of the mentoring sessions and other facilities offered by
SEEDS-TBI. The current product should be prioritized first since it had already been through market,
technical, and financial reviews.
Secondly, the new software product should also be developed while completing the current
software. The completion of the current one won’t be much of a hassle since it is adequately
supported by the DOST. However, the new software product requires a lot more risk given that it is
expected to be launched by July 2019. Since it has an expected month of release, it is also important to
follow a fix schedule in setting goals or milestones.

B. Building a Software Development Team

InfoDynamics Technologies only employs part-time programmers and administrative
assistants. With the decision to proceed with the handling and preparation of both new and old
product, the firm obviously needs to initially enhance its human resources. Building a software
development team would be one of the most critical points to take especially now that the firm will
become an independent company in three months time. The firm should be able to hire developers that
are experienced and skillful so that maintenance of current product and developing of a new product
would be less difficult. Furthermore, hiring full-time workers would be favorable because in this way,
the firm can have more control over its operations whilst also having a sense of security since

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full-time workers are often assigned to specific tasks only. Other than that, employing full-time
workers establishes loyalty to the company. An optimal team size would be 6-9 members composed
of both generalists and specialists where strict management should be implied during the first stages
of developing the products especially the new one.

C. Tracking Progress
Being able to track the development of both the current and new softwares is important.
Developing softwares follow certain steps before launching the product to the market. Since the
current software is a bit more ahead than the new software in terms of implementation and testing, it is
recommended for the current software to have a prototype testing scheduled frequently so that errors
can be avoided and give more time for improving the product.

D. New Client Acquisition

The contacts with whom you are dealing must be identified and cross checked as well. In
establishing the business' independence and own venture, it is important to find potential clients with
whom you can do business. Scanning of the market for fruitful associations is vital before starting
dealing with prospects. If this step is omitted, you will find that you are already drained out, yet no
positive associations have been made. When proposing to clients, the business should present what the
business can offer in software service that can benefit them and meet their requirements. Because the
business already has it's name and branding in the market, it will no longer be difficult to acquire new
clients. It is also necessary to focus on those clients who actually matters to your business rather than
digging your head in unwanted ones.

E. Create Network Opportunities

In a business that wants to be independent, building a wide and strong network can contribute
advantages that can make the business grow and flourish. Being visible and getting noticed is a
massive advantage of networking. In this case, the business can do different ways on how to create
network opportunities. First is to participate in industry meetings, conferences, and tradeshows. It is a
great way to nurture relationship with colleagues, network, and meet new people. Another way is to
utilize what we have right now- social media. It will reach numerous people thus can make them
notice your business. Create business networks by using social media such as LinkedIn, Twitter and
other online networking communities. However, before jumping into social media, they should fully
understand the medium, how it works, and how they can use it to benefit the business. Using a
combination of tried-and-true business development tactics along with new social media strategies,
the business network will grow as well as the company.

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V. Marketing and Operational Plan with Evaluation Plan

Market Summary
Software development is one of the more established sub-sectors of the Philippine IT
and IT-Enabled Services industry. InfoDynamics Technologies focuses to provide a reliable
strategic management application solutions to ​services to varied clients such as the Philippine
Local Government Units (LGUs), National Government Agencies (NGAs), Non-Government
Organizations (NGOs) and other Private Sector entities and institutions​.​The company’s
flagship product, the e-Procurement Software (ePS), is designed for the Bids and Awards
Committee (BAC) of government entities, Other products they offer include Executive,
Legislative, Financial management information system and more.

Market Needs
According to Everest Research, the Philippines is one of most favorable locations for
IT-Applications Development Management, offering cost savings and a large entry-level
talent pool with a significant breadth and depth of skills. The company’s software solutions
are varied and wide ranging - from government-related systems for good governance to
specific database management requirements of the client-partners.

Market Trends
Philippines Software Industry Association reported that of the Philippine software
revenue, Applications Development made up 28 % followed by software support services
with 22% and infrastructure support at 20%. The use of IT solutions is then a new trend in
management and this firm understood its strategic role to provide solutions that empowers its
client-partners towards effective and good governance.

Company Website and Social Media Use

In order to market its product and services effectively, it is suggested that the firm
should improve its official website by modifying its layout and design into a more modern
style. Improving the layout and design of the website and making it user-friendly makes it
look more professional, compelling and tech-savvy thus attracting clients.

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 Using the advantage of social media would be helpful for the firm to market its
products. Using this platform reaches a wider set of potential clients and helps in the
establishment of a strong brand name.

Human Resources
The business should identify qualified persons that would contribute in the
completion of the ongoing software products and ensure the successful launch in the market.

Operating Capital Requirements

Due to the availability of opportunities and the demand of the market, InfoDynamics

will require that the business have sufficient working capital to meet all operational
responsibilities of the business and not just be dependent in the P2 Million grant of the DOST.
A long term strategy to create niche in the market will be to innovate and develop the
new software product considering that this will be the first one in the market.

Risk Identification and Mitigation

1. Management Risk

This risk factor results in inefficient data collection, slow decision-making, and poor performance
management since the business is new being in an independent management, there will be more things
and responsibilities to do. When InfoDynamics do not manage this risk factor, they rely on what we
call "Gut Feel Management", a scary scenario when it comes to financial projections.

In managing this risk, InfoDynamics should establish the area of managing the
software business. Identify and focus on the business’ key success factors and corresponding
measures.

2. Risk in not meeting Client’s Expectations

The business is currently working for the existing software project for DOST while
introducing new product on the market. With this the business will try to excel on both
projects and the possibility is that the developers will only focus on either of the project.

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 In mitigating this risk, the business should delegate tasks to employees and systemize
diligence in effective development without compromising either of the projects. Refocus on
the clients’ needs and related processes to meet those needs. It is a real paradox that client’s
satisfaction and quality service is the main goal of the business.

3. Financial Risk

In expanding and establishing the independence of the business, funding and

resources is much needed especially in acquiring employees as well as software development.

In managing this risk, the business should be efficient on managing their resources
and finances as well as seeking for more investors to share the risk in the business.

VI. Projected Benefits

By accomplishing all the given strategies for successful business operations and market, the following
benefits will achieved:
1. With the additional regular employees to work for software planning and development, the
workforce will become stronger and efficient to provide creative ideas to innovate software products
for better result.
2. Because of further client acquisition, the scope of the business will become wider and will expand.
This will give an opportunity for the business to grow and accelerate in the market.
3. Due to the development and launch of the new software product in the market, the business will
have a competitive advantage towards the clients since it is new and an innovative product designed
for public and private sector agencies.