The document summarizes the evolution of business from subsistence farming through the industrial revolution and information technology revolution. It discusses the increasing complexity of conducting business in the 21st century due to various external and internal dynamics. It then discusses how 3rd Gate aims to provide clients with a single point of contact and synergies across functional areas through a pool of experts while allowing individual divisions autonomy. The goal is for 3rd Gate to be a leading contributor to empowerment in South Africa and an efficient partner for government and private sector clients.
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1.
2. The Business Evolution
• Subsistence farming
• Handmade goods, low volume production
• Advent of the monetary system
• Industrial revolution in the late 1700’s, mass production and technology
shift
• Machines increasing production
• Increased supply reduces prices
• The need to manage all this raw data at ever increasing speed
3. The Information Technology
Revolution
• Mainframes of the 1960’s
• IBM say that P.C.’s will not take off, limited market to a few hundred
• Microsoft sees gap and buys DOS and sells it to IBM
• P.C.’s move into the main stream
• Relational databases of the 90’s allowed decision support systems and
business on demand
• Moore’s Law
4. Conducting business in the 21st century is
extremely complex
External Dynamics Internal Dynamics
Consolidation Organization Complexity
New and disruptive technologies Virtual Organizations
Increasing substitutes Multiple mergers and acquisitions
Product and service convergence Multiculturalism
Hyper competition Outsourcing
Increasing new entrants Consensus Management
Developing economies Aging workforce
Globalization Non-institutionalized corporate
knowledge
Corporate improvement initiatives
Generation next values
Regulations and Compliance
5. Peter Senge, has some interesting
observations about complexity:
• All agree that we should build business-driven processes, rather than exist in process-
driven businesses
• All agree that corporate bottlenecks must go, and rapidly be replaced with nimble, customer-
focused business processes that are readily automated
• All agree that corporations which fail to adapt to the emerging complexity will be severely and
negatively impacted
We conservatively estimate, that 5 to 10 percent of our corporate expenses are
consumed trying to understand and describe the business. In a multi-trillion dollar
economy that's a lot of beans
If we could gain just a small modicum of efficiency in this endeavor the savings would be
astronomical
6. The Problem
• Many service providers can negatively impact a coordinated approach
• Lack of clear definition of responsibilities and accountabilities between
service providers
• Duplication of effort with different service providers incorporating
elements of overlapping services
• Turnaround time of deliverables
• Continuity in terms of business knowledge suffers with turnaround of
multiple service providers
7. Functional Areas of a Business
• Finance
• Sales and Marketing
• Manufacturing
• Research and Development
• Information Systems
• Sales and Marketing
• Legal
• Social
• Manufacturing
• Human Resources
• Information Systems
8. What 3rd
Gate Offers Clients
• Single point of contact for clients
• Synergy
• Accountability is vested in a single service provider
• Structure of group closely aligned with normal business structure
• Each division established as experts in field
• While there are synergies and coherence in the group each division is able
to respond quickly to changing client needs
• Each division is autonomous therefore turnaround times for decisions is
minimal
• Resource Pool (+- 150 people)
9. What 3rd
Gate Offers
Associates
• Group branding to enable you to secure bigger contracts
• Thorough knowledge of tendering processes
• Ability to respond to tenders without you having to leave your business
• Multi disciplinary teams
• Coordination and communication role
• Synergy
• Sharing resource pool, more cost effective
• Business Support
• All of the above with the freedom to be you
10. 3rd
Gate, 2013
• To be recognized as a leading contributor to Broad Based Black
Economic Empowerment in South Africa
• To be admired for our contribution to improving the efficiency and
ability of government to meet service delivery targets
• To be a recognized brand
• To be the “Go To” company in the private sector when clients
want the job done right