Razorfish, Inc. (NASDAQ: RAZF) was founded by Jeffrey Dachis and Craig Kanarick in 1994, and has evolved into a Digital Business Service Provider (DBSP). It was Dachis's second creation following "In Your Face Inc.", a self-described 'guerilla marketing events firm'.
Razorfish describes itself as is an international digital communications solutions provider, and goes under the maxim "Everything that can be digital, will be digital'. The company cut its teeth on animated web design in server-push / client-pull in 1995, working for the likes of IBM Personal Computers, AT&T, and CMP Publications. From its beginnings, Dachis saw digital technology as a means to change the way business works, though at the time most online services were largely no more than web catalogs.
Razorfish's intentions were - and are - to lead the digital revolution rather than be led. Its early success gave it the cash and share value to acquire the strategic building blocks it needed to follow its vision. Recently it acquired I-Cube to give it respectability as a systems integrator, and TSDesign (Boston) whose main function is to provide quality assurance to the user web experience.
In Europe, it extended its reach into wireless by acquiring Spray Ventures and recently opened up a wireless laboratory in Helsinki. Its acquisitions in the U.K. of CHBi for broadband and Sunbather for web design in Europe, and Fuel and Tonga for web design capabilities in the media industry have enhanced its capabilities and strengthened its strategic positioning as a complete service provider.
Razorfish has also grown partly organically, but this is the lesser process, and must pull together the many strands it has built through internal organizational processes and infrastructures, something it is presently busily doing. Razorfish management has recognized that in this game, you must aim for the Holy Service Grail - providing end-to-end solutions (EES) to its clients. To do this it has developed procedures and internal infrastructures to share knowledge and integrate its diverse acquisitions.
In April 1999, Razorfish went public with a share offering, raising about $45M to provide fuel for its expansion.
Vendor Strategy and Trajectory
Coming from the creative side of web design, Razorfish holds no particular allegiance to a specific technology vendor - in other words, it is a technology agnostic, which is not an uncommon characteristic of vendors of this genre. The advantages of this approach are that it can in theory better serve its clients by providing the best and most appropriate technologies to specific problems. The downside is that the company must have adequate resources to cover all the technologies it will need. To achieve this, however, means that internal resources - management, corporate knowledge and project management, personnel training, and cross-office fertilization of skill sets - must be efficiently utilized. Razorfish has adopted a number of strategies and developing infrastructures to meet this challenge.
Internal Structure and Culture
In general, as a technology agnostic, Razorfish personnel are divided into functional groups rather than technology areas. This means that the personnel focus on architecture, or design, or technology implementations. People move up in these functions, though often the line between function groups is blurred, enabling at least some to cross between the function groups. In this way, at least some personnel can climb to be Client Partner managers from a variety of backgrounds. A Client Partner is the senior client management interface.
Geographically, Razorfish is divided into two zones: North America and Europe, each with its own managing VP. The two zones are linked through a basic knowledge management and project information system called MOM. MOM allows users on either side of the Atlantic to review current projects and project skill requirements, to plan their agendas and interact with others on the network. MOM is the beginnings of a comprehensive inter-office knowledge management system.
A dedicated high-level executive position currently manned by Bob Lapides (EVP of Global Process, Methodology and Market Transformation.) provides the means to sew management systems together and create a unified international presence. Such issues as technology transfer across offices and efficient utilization of skills for project planning and execution are addressed with office group leaders who create skills communities among the offices. MOM and the skills communities reduce travel and traveling costs.
Razorfish's philosophy is that good technical people are able to deal with many different technologies, learn them quickly, and apply them. Within the organization, mentor programs have been established, often across function lines. The mentor can accept or refuse a request, but generally can take on four or five 'interns'. Apprenticeship style learning means skills are learned through osmosis and on-the-job practice more than by any formal training program. However, Razorfish insists the quality of its people is high, and formal training programs are not necessary.
Culturally, Razorfish is a work-hard / play-hard organization. It is expected that their people deliver quality work, since this is what keeps the customers coming back.
From a personnel point of view, with a growing population currently at about 1360 employees, Razorfish has a billable force of over 900. Of these, roughly 20% (about 180) are strategists ( usually Client Partners), 40% technologists (about 360), and the remaining 40% (another 360 or so) are designers, spread amongst its offices. Some 45% of its skill base - mostly in Europe - are devoted to broadband and wireless solutions such as interactive and enhanced TV, and the skill set includes the physical design (including board level design) and branding of hand held devices. Roughly 25% of the payroll is in support and executive management roles.
Sales & Marketing
Razorfish has a no sales group per se, largely because they are in the happy position of having more incoming work than they can handle. The demand provides Razorfish with the ability to be selective about its clientele as it tries to direct the company into strategic directions. Some of the work is created through responding to RFP's as well as from word-of-mouth references, but most is generated from incoming requests. Business development experts screen new business opportunities as they arrive. When appropriate, these are passed on to a Client Partner.
It is interesting to note that Razorfish claims it responds to few RFP's. This complies with other vendors who have also experienced that demand is high, particularly in the past year or two. DBSPs are becoming more selective with their clients: in a recent survey all DBSPs reported the same phenomenon. The results of this survey will be published at a later date.
Part of the marketing issue Razorfish faces is a branding issue. I-Cube clients, for example, have to re-adapt to the new order since the sales approach is quite different. Razorfish has switched from I-Cube Solution Managers to Client Partners; the difference is that the Client Partners are more business oriented than technical, often with MBA's in their background rather than MS's, a move designed to drive Razorfish in the direction of selling front-end strategic services, particularly in selected vertical markets.
Engagement Process
It is the Client Partners who provide the technical marketing skills needed at client presentations and to close deals. The presentations to clients are tailored to the client, and are not canned presentations. Razorfish believes this gives it the edge over its competitors, as evidenced by its high hit rate (85%). This is well above average for the industry. Other personnel who will actually be doing the work on the project may also make an appropriate appearance.
The Client Partner oversees the engagement with the client. Under the Client Partner is the project manager who is in charge of delivering the goods. Deeper down, account developers keep track of internal resource time keeping and internal workbooks to update the project progress.
source:http://www.technologyevaluation.com/research/articles/razorfish-wants-to-get-its-name-out-on-broadband-15607/
No comments:
Post a Comment