Texas Instruments Incorporated Computer Services Division – USA

Texas Instruments Incorporated Computer Services Division – USA

Situation

Texas Instruments Computer Division had a very strong but small global services organization with approximately 500 computer technicians in the US.  Because of increased competition and a trend of companies buying and mixing a wide range of computer brands and peripherals, TI was losing many of its major computer services customers to third party computer repair companies.  This reduction of clients resulted in lost revenues and a downsizing in the number of computer technicians. TI was in danger of dropping below the critical mass needed to maintain an effective national services network.

Opportunity

The challenge was to find new markets to serve that could utilize the existing TI computer services network and infrastructure without making significant investments that would further reduce overall company profits. Also, it was imperative to leverage the existing infrastructure to pursue, win, and deliver services to new markets.  One program effort had already failed to create any increased revenue.

Actions Taken

  • Conducted a basic market segmentation and research analysis.
  • Designed and implemented a “Multivendor Services Program” based upon expanding the TI services offerings to include the most popular computer products.
  • Created four targeted strategies designed to focus upon: 1 – Popular products interfaced with TI equipment, 2 – serving the TI Major Accounts and servicing the primary computing equipment that they used, 3 – Creating an Authorized Services Program for other computer manufacturers, 4 – Identifying the most supported computer products.)
  • Established two cross functional teams; one to drive operational tactics across the company, and the second to manage the marketing, bid and start-up process for new equipment.
  • Defined an internal P & L model to track and report progress to management.
  • Developed and implemented a training program for all sales and marketing teams.
  • Aggressively implemented each strategy and advertised all major successes internally and externally.

Results

  • Rapidly increased services revenues over 3 years, without reducing profitability
  • Achieved 30% growth in new sales, a total of $30M
  • Increased overall TI customer satisfaction scores
  • Increased TI’s sales of new computing equipment because of the additional support capabilities