Perot Systems

Perot Systems

Technology Based Business Solutions

By

A Report Submitted to Webster University

In Partial Fulfillment of the Requirements of

BUSN 6110, Operations Management

Webster

U N I V E R S I T Y

The School of Business & Technology

February 2006

Table of Contents

About Perot Systems 3

Consulting Solutions 5

Business Process Solutions 8

Applications Solutions 10

Infrastructure Solutions 12

Conclusion 13

References 15

Perot Systems

Technology Based Business Solutions

About Perot Systems

Since 1988, Perot Systems, headquartered in Plano, Texas, has delivered technology based business solutions to help organizations control costs and foster growth. Perot Systems supports business strategies and facilitates improvement by providing consulting, business process, application, and infrastructure services to develop integrated industry specific solutions to meet their customer's current and long term needs. Above all, they maximize the returns on Information Technology (IT) investments. They provide healthcare industry solutions to the provider, payer, life sciences, and supply chain markets. They serve the U.S. government sector by providing solutions to the intelligence community, homeland security, federal civilian agencies and the Department of Defense. A wide range of commercial markets are served by Perot Systems including the construction and manufacturing industries, as well as the financial services industry (Perot Systems, 2006).

Ross Perot, better known as the independent presidential candidate in 1992 and Reform Party presidential candidate in the 1996 elections, founded Perot Systems with eight of his associates in June of 1988. A 1953 graduate of the United States Naval Academy, Perot served four years in the Navy, and went on to become a top salesman for International Business Machines (IBM). In 1962 he left IBM, who largely ignored the ideas that he pitched, and founded Electronic Data Systems (EDS) in Dallas, Texas. This data processing company went public in 1968 selling stock for $16 per share. Within days the stock was selling for $160 per share. In 1984, he sold EDS to General Motors for $2.4 billion, but he still maintained managerial control. In 1986, he was bought out of the company for $700 million after a falling out with General Motors (Ross Perot, 2006). Two years later he gathered eight of his associates and took the first steps toward the founding of Perot Systems Corporation.

During the early years, companies such as McGraw-Hill, Inc, insurance holding company ICH, Nations Bank, and MCI helped Perot Systems establish a solid reputation in the IT industry. They quickly expanded their business globally by establishing a foothold in the manufacturing industry and transforming the rental car industry in Europe and the United States. In 1995, the Perot Systems Healthcare Group was established and in 1996 an outsourcing contract with global securities and investment banking firm UBS opened new doors in the financial services industry. The company went public on February 1, 1999 offering its stock at $16 per share on the NYSE under stock symbol PER. Today, Perot Systems is a Fortune 1000 corporation with 2004 revenues of $1.8 billion and employs more than 17,000 associates worldwide (Perot Systems, 2006).

Company co-founder Ross Perot, Jr. was named President and Chief Executive Officer of Perot Systems in 2000. In September 2003, Peter Altabef was named President and Chief Executive Officer, Ross Perot was named Chairman Emeritus of the Board of Directors and Ross Perot, Jr. was named Chairman.

In the late 1800's, industrialization gave rise to specialization and the practice of one company working for another. Recently, competitive pressure has driven more and more companies to outsource their non-core competencies to professional partners (Champy, 2005). Perot Systems supports business strategies and helps customers achieve results through four services: Consulting Solutions, Business Process Solutions, Applications Solutions, and Infrastructure Solutions. With these services they hope to transform a business using reliable technology and proven methodologies to create solutions that provide their customers with a competitive edge (Perot Systems, 2006).

Consulting Solutions

Perot Systems provides analysis and industry specific counsel on strategy, management and processes through their consulting solutions services. Operations consulting is effective when it "results in an alignment between strategy and process dimensions that enhance the business performance of the client" (Chase et al., 2004, p.324). Perot Systems consultants will work with their client's leadership to align technology and processes to strategic, operational, and financial goals. Using technology, they create new strategic opportunities and encourage change throughout the organization. The goal of these changes is to control costs, drive revenue, improve efficiency and productivity, enhance customer service and foster growth of the business. Perot Systems recruits associates with industry expertise in healthcare, construction, manufacturing, financial services and the government sector. These associates use their knowledge, skill, and experience to assess the capabilities of their clients, develop strategies, and implement tactics to improve operational efficiencies and productivity. As part of their consulting service, Perot Systems offers continuing research and sponsorship of educational events. These events help business leaders make sound and informed decisions by enhancing their knowledge of technology based business practices and industry trends. Within their Consulting Solutions

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