dassaultholdingstarategy
TRANSCRIPT
Holding Strategyby Mostafa Heyhat
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A presentation for strategic planning course in Mahan Business School
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Physical Prototype
Virtual Prototypeand
Data Management
Before 1970s
New ERA
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45% of the
shares dassault
belonging to the
dassaultgroup
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46.39
20.38
19.99
7.27
1.76 1.67 1.34
1.030.13
0.02
Dassault Group's subsidiaries' revenue (billion euros)
Dassault Aviation
Dassault Systèmes
Dassault Falcon Jet
Socpresse
SABCA
Dassault Falcon Service
Artcurial
Sogitec
Immobilière Dassault
Château Dassault
Dassault Group revenue from Dassault in 2010:1.56 billion euros20
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Brand Worldwide Headquarters
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The main tasks of Dassault holding
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Dassault Systèmes, the 3DEXPERIENCE Company, provides business
and people with virtual universes to imagine sustainable innovations.
Its world-leading 3D design software, 3D Digital Mock-Up and
Product Lifecycle Management (PLM) solutions transform the way
products are designed, produced, and supported.
Dassault Systèmes’ collaborative solutions foster social innovation,
expanding possibilities for the virtual world to improve the real
world.
3DEXPERIENCE Universes for Sustainable Innovation
Vision
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2009 Risks Related to the Company’s Business
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Difficult global economic environmentSolution: looking for more variety with new geographic markets and new industrial sectors and saving costs
Currency fluctuationsSolution: hedging
Infringement of third-party intellectual property rightsSolution: education R & D team of the company to return to this subject and certified technology products
Development of an online distribution model
Rapidly changing and complex technologiesStrategy: maintain contact with key customers to quickly understand new requirements. In addition, the company training courses for its researchers hold on new technologies.
Product errors or defectsSolution: advanced experiments to reduce errors on new software products or versions that in some cases in collaboration with clients or other business associates is done. In addition to insurance products is against the error or defect.
Maintain personnel and key managersSolution: education, promotion and payment terms to attract and retain key personnel, as well as diversification of sources of research and development in all parts of the world.
Increasing the proportion of major shareholderIncreasing the share of 43% to 49% in December 2009 will play a decisive role in the election or removal of directors or approved any merger or consolidation or sale of all or a significant portion of the company.
2009 Risks Related to the Company’s Business
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2009 Growth Strategy of the Company
Focused on expanding its addressable market towards new software markets, new industries, and
new types of users
The Company’s product development, acquisition and go-to-market strategies have been key drivers of the
expansion of its addressable market
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2009 Key Business Strengths of the Company
The Company develops long-term relationships with its customers in its targeted industries. The Company works closely with its customers to involve them in all phases of product development and to identify their evolving needs. Through these close, long-term working relationships, it is able to gain a deep understanding of their product design processes and requirements. The Company believes this level of knowledge enables it to develop software solutions more closely attuned to the requirements of its customers, and highly suited to the industries it addresses.
The Company has a substantial commitment to technological innovation. The Company devotes significant resources each year to research and development, with 2009 investments representing 24% of total revenue. The Company’s research and development is two-fold in nature, focusing on further advancing its current portfolio of software applications and, at the same time, developing technologies and applications which it expects to bring to market over the medium to long term.
The Company has a market-proven brand strategy, with each brand having a clear identity and value to customers. The Company’s brand strategy focuses on developing software for specific domains (such as design, simulation, manufacturing, collaboration), with the objective of making each brand the leader within its respective markets. The Company’s research and development strategies, as well as its sales and marketing strategies, support this objective. The Company’s multiple brand strategy also enables its customers to choose the specific point of entry which corresponds to their individual needs.
The Company has an extended enterprise model for product development and go-to-market. The Company has developed a network of partners for product development, marketing and enhancement of customer relations, which it calls its ‘‘extended enterprise’’ model, and it intends to continue to build on this model going forward. For marketing and sales, in addition to its direct sales force, the Company has important relationships with IBM, value-added resellers and other marketing and distribution partners. In the PLM market, the Company has built a product development program and community to enable independent software companies to develop complementary applications onto its PLM platform. Similarly, in the Mainstream 3D design market, SolidWorks has developed a large network of partners offering complementary products.
The Company has a high level of recurring revenue. Recurring software revenue, comprised of periodic licenses and maintenance revenue, represented 73% and 64% of the Company’s total software revenue in 2009 and 2008, respectively. In turn, total software revenue accounted for 88% and 86% of its total revenue for 2009 and 2008, respectively. This high level of recurring revenue has enabled the Company to maintain investments in critical resources in research and development and customer support even during challenging macroeconomic environments.
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2009 Key business strengths of the Company
• Expand penetration into its 11 target industries (from 7 target to 11)
• Extend the use of 3D technology to new usersExtend the value of 3D to new users, businesses and consumers, and expand 3D penetration among the 2D users’ community, with the Company’s SolidWorks brand as a key driver of 2D to 3D migration.
• Offer best-in-class online solutionsOffer Software as a Service (SaaS) online solutions leveraging the V6 infrastructure, to provide enhanced product experience, availability and services to both existing and new customers.
• Provide integrated PLM solutionsProvide customers integrated PLM solutions for a broad number of users within an enterprise and throughout the supply chain, spanning design, simulation, collaboration and digital manufacturing. Multiple applications integrated on a single platform enables customers to increase their productivity benefits beyond what they would have achieved through a stand-alone purchase.
• Focus on brand leadership: Leverage each brand’s excellence to win new accounts. Each of the Company’s brands can win newcustomers and each brand can be an entry point for the Company’s other brands.
2009 Growth Strategy Acts.
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Consumer Goods and Packaging
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Merchandising
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2011
2009
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