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EDS looks to rejuvenate with corporate reorganisation

EDS looks to rejuvenate with corporate reorganisation

Looking to position its far-flung resources to jump-start its professional services business, Electronic Data Systems (EDS) has redrawn its blueprint around a four-pronged structure.

Under the reorganisation plan, announced on Thursday, EDS has formed a quartet of business units: A. T. Kearney, E.solutions, Business Process Management, and Information Solutions. The worldwide units will coordinate their efforts, according to EDS officials.

The services giant is in the process of informing its rank-and-file forces of the changes, which will be implemented at the start of next month, according to company officials.

The changes, according to officials, are intended to present a simpler face to customers, spur the development of expertise, and provide better career development options for its employees.

The moves come as EDS tries to regain some momentum in the wake of a relatively flat performance, particularly in the US market, according to Cynthia Doyle, an analyst at market research firm International Data Corp (IDC).

"EDS only had 3 per cent growth in the US last year. The company wanted to be better organised in terms of facing clients. I think it's a good organisational structure for presenting such a broad company," Doyle said. "Also, part of the focus is on developing repeatable solutions, which will increase efficiency and bring down some of the costs."

The E.solutions group, which was launched earlier this year, takes aim at what officials claim is a $US120 billion annual solutions consulting market for electronic business, spanning Internet and enterprise applications. The unit will be headed by EDS president John McCain.

Splitting off from the E.solutions group is the Business Process Management (BPM) unit, which will address such functions as customer relationship management, claims processing, and settlement processing. Company officials assess this segment of the market at more than $130 billion. This unit will be led by Kim McMann, previously president of the company's State Business and State Health Care business unit.

The third leg of the new structure is the A. T. Kearney business unit, which EDS describes as the number-two player in the $25-35 billion consulting market. A. T. Kearney handles strategic, operational, organisational, and information technology consulting and executive search services, according to EDS, which announced that Fred Steingraber will remain the unit's CEO.


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