NAX's Entry into ECM Services

Extended Essay
Business and Management
Research Question
How effective would it be for NAX to offer ECM services to its
existing clientele?
Candidate Name: Anshul Bharat Davda

IB Candidate Number: 004733004
School Name: D Y Patil International School
School code: 004733

Advisor: Mr. Husien Burhani
Date Submitted:
Word Count: 4103
Anshul Davda 004733004 Extended Essay
Acknowledgements
I would like to thank Mrs. Vidhi Kanjani and Mr. Husien Burhani for their valuable
guidance throughout the process of completing this essay. Their knowledge has
helped me immensely.
I would also like to thank Navbharat Archive Xpress Pvt. Ltd. for their patience and
cooperation and understanding as I requested for specific data and lengthy
explanations.
Further, I would like to personally thank the director of NAX, Mr. Bharat Davda for
taking time out of his busy schedule and allowing me to interview him.
2
Abstract
NAX is a records management company that operates in India with additional

services like scan and digitize, data drive storage and document destruction. Founded
in 2002, the company has acquired one of the top spots in the industry and is now
looking at diversifying its product portfolio. One of the biggest opportunities that
have attracted NAX’s attention is the demand for Enterprise Content Management.
My report considers the various components of this vision and evaluates the impact of
the decision. My research question is, “How effective would it be for NAX to offer
ECM services to its existing clientele?”
The analytical tools I have used in this report are the Product Life Cycle, SWOT
analysis, Ansoff Matrix and Porter’s Five Field Analysis. The product life cycle
helped me come to a conclusion that NAX’s product portfolio was at the stage of
maturity and heading towards decline due to which NAX should look into different
growth strategies. The SWOT analysis further helped me understand the internal
strengths and weaknesses and the external opportunities and threats that NAX faces.
The four components allowed me to conclude that offering ECM will be favorable for
NAX. The Ansoff matrix helped me evaluate the growth strategy NAX needs to adopt
and the Porter’s Five Field Analysis gave me a detailed insight into the different kinds
of factors that will be helpful or pose as obstacles to NAX while entering the ECM
industry.
Using the various tools used in this report and the works cited, I concluded that it
would be beneficial for NAX to enter the ECM industry and begin offering ECM to
its current clientele. The drawbacks of this report include the absence of primary
research and the need for NAX to conduct a financial feasibility study in order to
make a final decision.
Word Count: 300
3
Table of Contents
Content Pg. No.

Introduction……………………………………… 5
Rationale………………………………………… 7
Methodology…………………………………….. 8
SWOT Analysis…………………………………..10
Product Life Cycle………………………………..14
Ansoff Matrix……………………………………. 16
Porter’s Five Forces………………………………19
Conclusion………………………………………..23
Works Cited………………………………………24
Appendix 1 – Interview with Mr. Bharat Davda…26
Appendix 2 – Network…………………………... 28
Appendix 3 – Data obtained from NAX………….29
4
Introduction
Navbharat Archive Xpress (NAX) is a private limited company founded in the year
20021 by the current Director and Managing Director, Mr. Bharat and Mr. Vinesh
Davda.
At present the company is valued at over USD 13 million2. NAX specializes in a

range of records management based services including digitization, web-enabled
access, on demand deliveries, in house document management and media tape
management.
Most of NAX’s services are IT enabled giving its customers the ease of access to
digitized copies of their data (uploaded on servers by NAX).
Customers, who require physical documents, can also make a request to NAX and
they provide door-to-door delivery of the same.
Keeping the TRAI (Telecom Regulatory Authority of India) guidelines, telecom

companies are required to collect a number of documents from new subscribers. NAX
offers Customer application form (CAF) processing to telecom companies reducing
the burden of managing large volumes of forms for a company. This means acting as
an authority to approve the submission of official documents by customers who are
applying for connections and determining whether the information, photographic
proof and supporting documents match the guidelines to approve the issue of a
connection.
NAX also offers media tape storage. This involves storing high value sensitive media
drives that are brought in when organizations back up their data, or have a need to
store any other type of information digitally. These media drives require special
conditions that include controlled temperature and humidity and an anti-static
environment. NAX has rooms equipped with such facilities to store this data.
1
Appendix 1
2
Appendix 3
5
These wide range of services have allowed NAX to access clients operating in
different verticals – from Software Firms / Law Firms / Telecom Companies / Real
Estate Companies and Banks.
With centers spread across 13 cities in India3, NAX has earned the trust of many large
MNCs and now has over 4504 clients using the various services it offers.
Companies like ICICI bank, ICICI Lombard, Airtel, Reliance and Mahindra Finance
are some of NAX’s esteemed clients.
3
Appendix 2
4
Appendix 1
6
Rationale
At present NAX has the largest pan-India presence in the records management
industry (source). However, there are several other competitors who have entered the
market and thereby sales and margins have been under pressure.
The company is looking at options to expand its portfolio of products and services to
maintain its USP and continue attracting its target market which will thereby lead to
an increase in sales and profits.
One of the products being considered by the company is Enterprise Content

management. (ECM)
This service involves the storage and management of the content of an organization
digitally and online (Cloud Computing), which means this content will be accessible
and editable at any point of time via a software, which will be supplied and
maintained by a management company (NAX).
Abbreviated as ECM, this service offers a great deal of convenience to a client and is
being considered as the future of content management as this platform results in
significant savings in time and costs for a client. Access to data is real time.
“The market for enterprise content management (ECM) license software is predicted
to exceed $4 billion in the next 2-3 years according to various analyst reports. A
Forrester report had even forecasted that ECM will outpace the overall software
market with a 19 percent CAGR.” 5
“Despite challenging economic conditions, the enterprise software market in India is
projected to reach $3.92 billion in 2013, a 13.9 per cent growth over 2012 revenue of
$3.45 billion, according to Gartner, Inc.” 6
5
Seelin, Suhasini. "Being Content with ECM in India." Firstbiz. Firstbiz, 26 Feb.
2009. Web. 8 July 2013. <http://www.firstbiz.com/biztech/
being-content-with-ecm-in-india-6371.html>.
6
"Gartner Says India Enterprise Software Market to Reach $3.92 Billion in 2013."
Gartner. Gartner, 7 June 2013. Web. 9 July 2013.
<http://www.gartner.com/newsroom/id/2509115>.
7
Cloud computing as a platform is an area is of great personal interest to me. I recently

attended a webinar on the topic of ECM where the speaker was one of the principal
heads at Newgen Technologies, a company already offering ECM services.
The webinar helped me understand the nuts and bolts of the ECM service.
The directors at NAX are considering investing in setting up an ECM service.

Through this Extended Essay, I plan on evaluating the following research question.
“How effective would it be for NAX to offer ECM services to its existing clientele?”
8
Methodology
In order to effectively evaluate NAX’s decision to enter the ECM market, I will use
the following tools to analyze the various aspects that will affect NAX’s entry into the
market.
1) SWOT Analysis – The SWOT analysis lists out the internal strengths and
weaknesses and the external opportunities and threats of the company in
relation to the ECM market. I will conduct the SWOT in order to spread out
the opportunities and threats that NAX will face, and check how well NAX is
placed to tackle these challenges.
2) Product Life Cycle – I will use this tool to check NAX’s product’s position in
the product life cycle and use this data to justify why it should enter the ECM
market.
3) Ansoff Matrix – Once it is clear that NAX should enter this industry; I will use
the Ansoff Matrix to evaluate NAX’s growth strategy and level of risk to offer
ECM as a service.
4) Porter’s Five Forces – This tool will be used in order to check the competitive
forces that will be challenging NAX in the ECM market and the forces that
will act in NAX’s favor.
I have used primary data in the form of an Interview with the director, Mr. Bharat
Davda, to obtain a deeper insight into NAX’s current standing and future intent with
regards to the ECM market. The secondary data used includes references from online
articles, informative blogs, statistical reports and valuable first-hand knowledge from
an online webinar on ECM that I attended.
9
SWOT Analysis
Strengths
1) NAX has gained experience in the records management industry over the span
of 10 years giving it an edge over other existing competitors.
2) NAX is present in over 13 major metropolitan cities spread across the country
(India).7 This pan India presence gives it a unique competitive advantage as
many of NAX’s clients have offices in these cities and NAX is able to provide
a one-stop solution for all their document storage and retrieval needs.
3) NAX already has digitization facilities, which can be expanded, eliminating
any startup problems related to the digitization part of ECM.
4) NAX has an extensive customer base comprising clients from different
verticals (banking / insurance / telecom). NAX has established a long-standing
relationship with these clients and has excellent goodwill with them.
Weaknesses
1) Building the IT infrastructure (obtaining software from different vendors for
different parts of ECM), obtaining licenses and training employees for ECM is
an extremely costly proposition. It will require significant investment from
NAX. -Interview
2) NAX is not well equipped in terms of labour force strength to start ECM.
More employees will be needed in order to introduce this product.
7
Appendix 2
10
Opportunities
1) According to an article by Gartner, the ECM market is predicted to grow up to
$3.92bn in India by 2013.8 This means that NAX is entering a high growth
market with many opportunities.
2) As per a report by Bridget McCrea (an online magazine), “as businesses
(especially startups) get saddled with unmanageable level of data, the demand
for ECM especially from countries like India and China is poised for big
growth (in double digits).”9
“In its report Bracing for More ECM Growth, The Radicati Group, Inc.,
claims that the ECM market is expected to grow at an annual rate of 15
percent.”
3) Indian businesses are now more than ever willing to embrace change and
move to more efficient and cost effective methods of data storage and
retrieval. Compared to the traditional paper based records stored in their
physical form, businesses are actively considering using the Cloud to
minimize their costs and make them more competitive. 10
4) ECM solutions can aid companies adhering to regulatory measures
specifically in the banking and telecom industries in India. The Reserve bank
of India for instance has established norms to be followed by all banks in
order to maintain and periodically update records of their customers.11 These
records include identity proof, address proof, recent photographs and customer
profile. Maintaining these records requires ample storage and organization.
ECM will simplify the entire process by digitizing and storing this data online
making it easily accessible and updateable.
8
9
McCrea, Bridget. "Enterprise Content Management Market Braces for Growth in
2013." MSDynamicsWorld. GuidePoint Media, 30 Jan. 2013. Web. 20 July 2013.
<http://msdynamicsworld.com/story/
enterprise-content-management-market-braces-growth-2013>.
10
Tech Gig Moderator. Enterprise Content Management on Cloud -- It's Simple,
Affordable and Aafe. YouTube. YouTube, 23 June 2013. Web. 25 July 2013.
<https://www.youtube.com/watch?v=5rTRo_1pXV8&feature=player_embedded>.
11
http://rbidocs.rbi.org.in/rdocs/notification/PDFs/RPCD170913KY.pdf
11
5) ECM is a low maintenance business as there are no servers to keep a watch

on, it is online and cloud based making it more efficient and easier for both
client and operator to use.
6) “ECM also enables clients go paperless. With all their confidential data
stored on the cloud, clients can reduce their carbon footprint. This gives
clients a competitive advantage too (as their customers in turn too start
perceiving them as being environmentally conscious).” 12
Threats
1) Cloud Computing ensures that all “sensitive business information is stored
outside the firewall of the said organization.” This implies that there is risk of
data theft. According to the Hidden Costs of Cloud 2013 survey, “the main
issues for Indian businesses with reference to Cloud have been security, data
protection and loss of confidential information.”13
These are real concerns and NAX will need to ensure these are addressed
before implementation of the ECM solution for its clients.
2) ECM would be a new business domain for NAX. This area has few large
competitors like IBM, NetApp and Capgemini. Thus it becomes very
important for NAX to be able to differentiate its product offering to enable it
grab a foothold in the market.
3) ECM will require the latest operating systems and software being installed at
the clients end. Many businesses would thereby need to invest additional
amounts towards upgrading their systems to ensure compatibility with those of
NAX (for purposes of ECM).
12
"Going Paperless." Doxim. Doxim, n.d. Web. 4 Aug. 2013. <http://www.doxim.com/
reduce-your-carbon-footprint/>.
13
"Rogue Clouds Prevalent in Nearly 90 Per Cent of Indian Businesses: Symantec
Survey." Symantec. Symantec, 8 Mar. 2013. Web. 9 Aug. 2013.
<http://www.symantec.com/en/in/about/news/release/
article.jsp?prid=20130310_01>.
12
Analysis of SWOT
Through the SWOT analysis it can be seen that the opportunities in the ECM market
outweigh the threats to NAX. The strengths that NAX possesses in terms of its
presence across major cities in India and digitization setup already at their disposal
puts them in a unique and advantageous position with reference to the ECM service.
Their goodwill and a client base from across industries further solidify their
positioning in this market.
ECM is undoubtedly the future and Indian companies are waking up to this fact.
The Gartner report mentioned in the opportunity section confirms how this sector is
poised for growth “despite challenging economic conditions in India.”14
Thus ECM is the appropriate product for NAX.
Further, given the large population of India and the scale operations of its (NAX’s)
clients who service this population, handling physical data is becoming a challenge in
terms of management and storage. With the ECM service, the data is stored on the
cloud removing the need for physical storage and also thereby saving companies
millions and millions of rupees in storage costs that they would pay for traditional
record management companies like NAX.
In terms of threats, the biggest threat for NAX is presence of multinational

corporations like IBM who provide the ECM service in India. In terms of scale of
operations, IBM is a relatively large company and also has been in this vertical since
several years. The benefit for NAX is their loyal and strong customer base and thus
the ECM service marketed to this segment of users would ensure a successful strategy
for NAX.
NAX needs to work on recruitment and training of employees to enable them offer
this service successfully. Manpower planning is thus the key.
14
"Indian enterprise software market to reach $3.92 bn in 2013: Gartner." The
Hindu BusinessLine. Hindu Business Line, 7 June 2013. Web. 18 Aug. 2013.
<http://www.thehindubusinessline.com/industry-and-economy/info-tech/
indian-enterprise-software-market-to-reach-392-bn-in-2013-gartner/
article4791290.ece>.
13
Product Life Cycle

Fig. 1 – Clients added per year15
900 839 Number of clients…

800
700
600 537
500 423
400
300 211
200
100
0
2009 2010 2011 2012
Picture. 1 – Product Life Cycle16
Fig. 1 shows the addition of clients for NAX in the past 4 years years. The number of
clients do not show individual companies but reflect individual departments since in
most of the businesses that NAX provides it suite of services, each department is
treated as a separate cost centre and the invoicing and billing for each department is
separate.17
15
Appendix 3
16
Product Life Cycle. Digital image. Tutor2u. Tutor2u, 23 Sept. 2012. Web.
<http://www.tutor2u.net/business/marketing/products_lifecycle.asp>.
17
Appendix 1
14
If we consider the year-on-year growth in terms of new clients added, the percentage
has significantly declined over the years. The product life cycle shows “the various
stages a product goes through, from its introduction to its decline.”18 NAX’s records
management has reached its maturity stage. Maturity is the stage at which sales are
increasing but at a lower rate. “At this stage the given firm has obtained a significant
amount of market share, experienced large economies of scale and has major
competitors in the existing market.”19 NAX will need to introduce an extension
strategy in order to stay in the market and improve its growth. Extension strategies are
strategies adapted to lengthen the product’s life cycle in any possible way. “These
strategies range from entering new segments to adding value to existing products.”20
In the stage of maturity, we can see that in the year 2012 NAX has only 211 additions
to its client base. This includes new companies or different departments of existing
clients. It is clear with the decreasing trend that NAX is the latter stage of maturity
and hence is heading towards decline. Picture. 1 shows NAX’s position on the
product life cycle graph. NAX’s existing clients are approaching better solutions for
records that can be digitized thereby reducing the need for physical records
management.
The stagnant growth as evident through Picture. 1 will only improve in the event of a
change, which can be brought by entering new markets, differentiating products,
defending the firm’s position and competitive pricing. In this scenario it is evident
that NAX should look into introducing new services such as ECM.
Thus from the viewpoint of the PLC and analysis of client addition details, for
continued growth and success of the business, NAX needs to consider entering new
segments and keeping the opportunities in the ECM space in mind, this is an
appropriate product for it to offer.
18
"Product Life Cycle." tutor2u. tutor2u, n.d. Web. 20 Aug. 2013.
<http://www.tutor2u.net/business/presentations/marketing/
productlifecycle/>.
19
Hoang, Paul. Marketing. 2nd ed. Victoria: IBID, 2007. Print. Vol. 4 of
Business and Management. 5 vols. Business & Management 2.
20
Hoang, Paul. Marketing. 2nd ed. Victoria: IBID, 2007. Print. Vol. 4 of
Business and Management. 5 vols. Business & Management 2.
15
Ansoff Matrix – Evaluate growth strategy
Existing Product New Product
Product Development
Existing
Market
New Market
The Ansoff Matrix, developed by Igor Ansoff is a decision making tool used to
identify growth opportunities. This matrix uses two components of the business to
determine the opportunities, namely products and markets.
Navbharat Archive Xpress is a records management business that wants to introduce a

new product in an existing market. The product or service NAX is looking at
introducing is Enterprise Content Management, a new revolutionary way to manage a
firm’s content on a data storage drive that is entirely cloud based.
According to the Ansoff Matrix, this is a moderate-risk decision since one side (the
product) is unknown. The strategy is known as the product development strategy.
Product development allows the firm to build on its brand, customer base and
available facilities. It is used when the market is growing, the firm has research and
development facilities and there is a rapid change. With established facilities and a
16
rapidly growing market, the firm will be able to save on research and developmental
costs as it already has an established facility. Enterprise content management is
heavily related to records management as the main difference between the two is that
former is digital and online based management of a firm’s content whereas the latter
involves the handling and managing of a firm’s paper/media drive records physically.
NAX holds several advantages when it comes to implementing this strategy since
NAX already has knowledge and experience in the industry along with strong
relationships with existing clients. Therefore NAX can use this knowledge to its
advantage. NAX also holds many assets that can be harnessed to develop this new
product such as storage and management centers across the country, fast and high
bandwidth Internet lines and experience in marketing a service of this type. These
positive points reduce the risk of product development in NAX’s case.
Though NAX has been in the records management business for a while, the ECM
service poses several unique challenges. The biggest one is obtaining the appropriate
software for this service. At present, there are a lot of choices of software available in
the market and thus choosing the one that meets their requirements will be a time
consuming and expensive task21.
Since this is a new service for Indian corporates, the transition from paper-based
retrieval systems to paper less ones would take time. NAX would need to orient the
customers on the tangible benefits of the same. Nonetheless, technological changes in
Corporate India is a slow process and this coupled with the fact that “India's telecom
and Internet connectivity market is yet to mature”22 implies that there would be a
significant gestation period for NAX before it can start breaking even with the ECM
service.
In order to succeed in the market, NAX will have to maintain and increase its
marketing efforts in order to reach out to potential customers. A well-developed
marketing strategy for ECM will be needed in order to keep up with the competitors
21
Appendix 1
22
Gupta, Yogesh. "Alfresco Outlines India Strategy for ECM Market."
Computerworld. IDG Magazines Norge AS, 26 Nov. 2012. Web. 27 Aug.
2013. <http://news.idg.no/cw/
art.cfm?id=7240BFD5-C86F-EC67-4A7E999A9BBA402F>.
17
in the market. NAX can look at implementing the following strategies with one goal
in mind, to increase awareness for ECM.
 Advertising through the work order documents, boxes23 and word of mouth to
existing clients on a regular basis. This is a cost-effective method of getting
the word across to the businesses using the records management services from
NAX. This is an efficient method as ECM is an upgrade from records
management. Many clients would thus get first hand information on ECM
through this BTL medium of advertising and accordingly decide to upgrade to
a digital content product.
 NAX, as an authorized retailer24 of turtle cases and can use this medium of
communication to a different set of customers to make them aware about the
newly started service. Turtle cases offer fire and water proof storage solutions
within NAX’s facilities. In the case of digital data being stored as media tapes
in NAX’s facilities, a client could choose to make its data secure by
purchasing turtle cases. These cases protect the drives not only while in
storage but also while being transported to and from the client in the event of a
retrieval order. These turtle cases also make organization for drives easier.
 Advertising in mass media outlets such as Economic Times Newspaper, would
enable NAX directly target its client base. Economic Times is the most widely
read economic/business newspaper in India and the Indian Readership Survey
confirms this fact. They have a readership of 735,000 and this is almost three
times that of its nearest competitor.25 This paper is widely read by individuals
across corporate India and thus is the most powerful ATL technique that NAX
can use to advertise its ECM service. Further, newspaper advertisements can
enable NAX to give information of the different attributes of ECM such as
ease of access, security, and permission-restricted access.
23
"Corrugated Boxes Are a Cost-Effective, Efficient Way to Market and Protect Your
Products." Brown Packaging. Brown Packaging, n.d. Web. 2 Sept. 2013.
<http://www.brownpak.com/articles/
corrugated-boxes-are-a-cost-effective-efficient-way-to-market-and-protect-your-pr
oducts.html>.
24
http://www.naxworld.com/TurtleCase/TurtleCase.html
25
Sheikh, Aminah. "Newspapers See Marginal Growth in Q4: IRS." Livemint & the Wall
Street Journal. HT Media, 28 Mar. 2013. Web. 14 Sept. 2013.
<http://www.livemint.com/Consumer/t5WYyhADdyRjwFP5VMMySN/
Newspapers-see-marginal-growth-in-Q4-IRS.html>.
18
Porter’s Five Forces
Michael Porter introduced this tool that stated that there are five forces that define the
competitive power of a firm in any industry.
These five forces were Supplier power, Buyer Power, Competitive Rivalry, Threat of
Substitution and Threat of New Entry. These forces can be depicted in a diagram as
shown below.
Picture 2. – Porter’s Five Forces26
26
Porter's Five Forces. Digital image. Mind Tools. Mind Tools, n.d. Web. 3 Feb. 2014.
<http://www.mindtools.com/pages/article/newTMC_08.htm>.
19
1. Threat of new entry

a. As a firm that has an existing infrastructure in the market, NAX’s
market position is safe when it comes to new entrants; therefore the
threat of new entry is very low. There are several factors that pose as
obstacles for new entrants. These factors are:
i. High setup costs – The ECM industry demands huge funds for
initial setup. The reason behind this is that to introduce ECM
firms need software contracts, scanning and digitizing
facilities, trained staff and powerful computer systems to
manage and operate customer data online.
ii. Difficult migration – Once NAX has reached out to a customer
base, threat of new entrants is extremely low as migration is
not very common in this market. Once clients have appointed a
certain firm’s document management services changing the
operator becomes very difficult due to the tedious processes
involved27.
iii. Economies of scale – This term refers to the reducing costs of
production as the business becomes more and more efficient in
the industry. In the case of NAX, it has been operating in the
records management industry for over a decade now and they
thus have the products and facilities for record management. A
new entrant would not experience economies of scale in the
first few years of its operations and thus would experience
high costs and that would impact the pricing of its products.
iv. Specialist Knowledge – In an industry where management of
large volumes of data is required, NAX’s experience will act
as a factor of superiority over the new entrants in the industry.
The knowledge that NAX possesses will act as a massive
advantage to keep the threats of new entrants low.
27
Appendix 1
20
2. Competitive Rivalry
a. Number of competitors – There are as few as four major competitors
in the ECM market. The biggest of these competitors is IBM. IBM’s
top class ECM services will have to be matched up to by NAX. IBM’s
experience in the ECM industry is extensive. The advantage for NAX
is its client base. Their existing client base would be their first target
market for this new service as these customers already have a working
relationship with NAX.
3. Suppliers
a. Number of suppliers – The number of suppliers in the market for an
ECM platform is large. Therefore the suppliers do not have much
power. In the case of fallout, NAX can switch to another platform
with a new contract.28 Besides these, there are many open source
software systems present that NAX could buy and provide to the
customers.
4. Buyers
a. High migration costs – The high costs involving migrating from one
client to another are NAX’s biggest advantage. The training needed in
order to make this process efficient is very expensive due to which
once a client opts for a particular providers ECM service, they would
stick to the same to avoid the migration cost and loss of time due to
the same as well.
b. Existing large clientele – NAX’s large and impressive clientele gives
it a base to build its reputation in the ECM industry from. The
customer satisfaction is very high and this can be seen by the
individual department additions by each company to NAX’s client list
each year.
For example, Reliance accounted for 22 additions to the client list in
2009, 57 in 2010, 31 in 2011 and 20 in 2012.
This proves that slowly all the departments of the company are
moving their records to NAX’s facilities.
28
Appendix 1
21
5. Substitutes
a. The only substitute to Enterprise Content Management is physical
document management. Due to the physical resources required and
associated costs involved; ECM is currently the only solution for
companies to efficiently manage their data. ECM also provides instant
access and ability to edit ones data
Keeping the above factors in mind, the ECM industry also promises reduced
operation costs, better customer service and minimized risk29.
ECM offers a safe and practical solution to protect a firm’s sensitive information.
With the threat of new entry being low, a large range of suppliers offering a variety of
platforms (including open source ones), a satisfied existing customer base along with
high transition costs to move from one provider to another indicates the potential of
success for NAX in terms of the ECM product
NAX can start from the existing client base and then expand its scale to bring new
clients into the fold for this product.
Complementary products and services that are essential to the success of ECM are not
considered in the above analysis such as high-speed Internet lines and powerful
computer systems.
29
"What Can ECM Do for You?" Hyland Software. Hyland Software, n.d. Web. 10 Oct.
2013. <http://www.hyland.com/en/learn-ecm/
three-key-benefits-of-enterprise-content-management.aspx#.Uvz-oXm-mgF>.
22
Conclusion
It is evident through the tools used in this report that NAX needs to enter a new
segment and extend their product base, as its existing product will soon approach the
decline phase.
The ECM product is an excellent product for NAX. With the large data being
managed by Indian corporates, the ECM service is an extremely cost effective product
for them. Further, with ECM, individuals within the company who have a right to do
so can access data easily.
With an established clientele it will be easier for NAX to introduce ECM. The
strategy to introduce this is moderately risky but the industry also offers a strong
growth trend. The digital age will pave the way for businesses to achieve high
efficiency ratings and offer quicker services. This is where ECM comes in, it is the
best solution for a company to upgrade itself with the advancing times and make its
everyday operations streamlined and easy.
In terms of startup costs, NAX has an advantage as it already has most of the facilities
in place along its large network across the country. Besides paying for software
contracts, recruiting specialized employees to manage the operations and train clients
to use the new software, the expenses are minimal.
Limitations
1. The growth forecasts and competitive analysis are all carried out based on
secondary data obtained from websites, news articles and statistical reports.
These pieces of information need to be supported by primary data.
2. The absence of financial data needs to be substituted with a financial
feasibility study conducted by NAX to check the strengths and the financially
opportunities in the ECM industry.
3. Choosing an ECM software vendor can be tedious and time-consuming. A
wrong decision can reduce NAX’s potential and at times make the venture
unsuccessful. Extensive research will be required in order to make a suitable
decision to select the appropriate vendor for this product.
23
Works Cited
"Corrugated Boxes Are a Cost-Effective, Efficient Way to Market and Protect Your
Products." Brown Packaging. Brown Packaging, n.d. Web. 2 Sept. 2013.
<http://www.brownpak.com/articles/corrugated-boxes-are-a-cost-effective-
efficient-way-to-market-and-protect-your-products.html>.
"Going Paperless." Doxim. Doxim, n.d. Web. 4 Aug. 2013.
<http://www.doxim.com/reduce-your-carbon-footprint/>.
Gupta, Yogesh. "Alfresco Outlines India Strategy for ECM Market." Computerworld.
IDG Magazines Norge AS, 26 Nov. 2012. Web. 27 Aug. 2013.
<http://news.idg.no/cw/art.cfm?id=7240BFD5-C86F-EC67-
4A7E999A9BBA402F>.
Hoang, Paul. Marketing. 2nd ed. Victoria: IBID, 2007. Print. Vol. 4 of Business and
Management. 5 vols. Business & Management 2.
"Indian enterprise software market to reach $3.92 bn in 2013: Gartner." The Hindu
BusinessLine. Hindu Business Line, 7 June 2013. Web. 18 Aug. 2013.
<http://www.thehindubusinessline.com/industry-and-economy/info-
tech/indian-enterprise-software-market-to-reach-392-bn-in-2013-
gartner/article4791290.ece>.
McCrea, Bridget. "Enterprise Content Management Market Braces for Growth in
2013." MSDynamicsWorld. GuidePoint Media, 30 Jan. 2013. Web. 20 July
2013. <http://msdynamicsworld.com/story/enterprise-content-management-
market-braces-growth-2013>.
Porter's Five Forces. Digital image. Mind Tools. Mind Tools, n.d. Web. 3 Feb. 2014.
<http://www.mindtools.com/pages/article/newTMC_08.htm>.
Product Life Cycle. Digital image. Tutor2u. Tutor2u, 23 Sept. 2012. Web.
<http://www.tutor2u.net/business/marketing/products_lifecycle.asp>.
"Product Life Cycle." tutor2u. tutor2u, n.d. Web. 20 Aug. 2013.
<http://www.tutor2u.net/business/presentations/marketing/productlifecycle/>.
24
"Rogue Clouds Prevalent in Nearly 90 Per Cent of Indian Businesses: Symantec

Survey." Symantec. Symantec, 8 Mar. 2013. Web. 9 Aug. 2013.
<http://www.symantec.com/en/in/about/news/release/article.jsp?prid=201303
10_01>.
Seelin, Suhasini. "Being Content With ECM In India." Firstbiz. Firstbiz, 26 Feb.
2009. Web. 8 July 2013. <http://www.firstbiz.com/biztech/being-content-
with-ecm-in-india-6371.html>.
Sheikh, Aminah. "Newspapers See Marginal Growth in Q4: IRS." Livemint & the
Wall Street Journal. HT Media, 28 Mar. 2013. Web. 14 Sept. 2013.
<http://www.livemint.com/Consumer/t5WYyhADdyRjwFP5VMMySN/News
papers-see-marginal-growth-in-Q4-IRS.html>.
Tech Gig Moderator. Enterprise Content Management on Cloud -- It's Simple,
Affordable and Aafe. YouTube. YouTube, 23 June 2013. Web. 23 June 2013.
<https://www.youtube.com/watch?v=5rTRo_1pXV8&feature=player_embedd
ed>.
"What Can ECM Do for You?" Hyland Software. Hyland Software, n.d. Web. 10 Oct.
2013. <http://www.hyland.com/en/learn-ecm/three-key-benefits-of-enterprise-
content-management.aspx#.Uvz-oXm-mgF>.
25
Appendix 1
To obtain a background of NAX, its future goals and operation details, I interviewed
the Director Mr. Bharat Davda, also one of the founding members of the firm.
Date of interview: 10th July 2013

Time of Interview: 5:00pm
Location: NAX headquarters, Mumbai.
1. Question: Good evening and thank you for allowing me to join you today for
this interview. My first question is, when did NAX begin operations?
Answer: In 2002
2. Question: What made you enter the record management business?

Answer: The Company was looking at different markets for diversification.
Our main focus was on IT and logistics. We came to discover that a records
information management service provider manages records for any company.
We found this very interesting and it captivated our thinking. We decided to
pursue it and see how well we can commercialize these services
3. Question: How many clients does NAX currently entertain? Can you please
specify some details about these clients?
Answer: Approximately 450 clients, some of who are big firms like ICICI
Lombard, ICICI Bank, Reliance, Airtel and Mahindra Finance.
4. Question: What do you have in mind about NAX’s future?

Answer: We want to make a reputed brand of NAX. We offer end-to-end
solutions in records management. There are still various opportunities in this
field and we want to pursue them to create a larger prominence in this
industry. In the present age, digitization is of great importance to everybody
and hence we want to develop enterprise content management as a progressive
and dynamic way for enterprises to achieve greater benefits or results in their
core activities.
26
5. Question: Why choose Enterprise Content Management?

Answer: Presently, the ECM market has a large presence. Going by trends we
forecast that there would be a yearly increase of approximately 20%. Hence,
we at NAX are visualizing encompassing ECM in an enterprise for the benefit
of all.
6. Question: Does ECM pose as a threat to physical records management?

Answer: Yes. ECM is a more efficient alternative to physical records
management. The more people embrace ECM, the less they will require
physical records management.
7. Question: Are your existing clients adapting ECM?

Answer: Yes, they are. They are improving efficiency by reducing physical
records management. This is why we want to have a share of that business.
8. Question: What is NAX’s brief execution plan for this product?

Answer: First of all, there are many ECM platforms from there to choose
from, it is a lot like being a child in a candy store where we have to pick the
best quality and longest lasting one. This will probably be the hardest part of
the execution process.
9. Question: How do you intend to maintain a long-lasting reputation in the

ECM industry?
Answer: The nature of this industry is such that once a customer has settled
for one vendor it is very difficult to move away or migrate from that vendor.
The costs are high and besides, it is extremely time consuming and tedious.
Our goal is to maintain customer satisfaction so that we can build a bigger
prominence in the industry.
27
Appendix 2
Picture 3. – Pictorial representation of NAX’s nationwide presence as shown on the

company website.30
30
Network. Digital image. Naxworld. Nax-Your Document Bank, n.d. Web. 10 Feb. 2014.
<http://www.naxworld.com/Network/Network.html>.
28

NAX's Entry into ECM Services

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

NAX's Entry into ECM Services

Uploaded by

Copyright:

Available Formats

Extended Essay

Business and Management

Candidate Name: Anshul Bharat Davda

School code: 004733

NAX is a records management company that operates in India with additional

Word Count: 300

Content Pg. No.

At present the company is valued at over USD 13 million2. NAX specializes in a

Keeping the TRAI (Telecom Regulatory Authority of India) guidelines, telecom

One of the products being considered by the company is Enterprise Content

Cloud computing as a platform is an area is of great personal interest to me. I recently

The directors at NAX are considering investing in setting up an ECM service.

5) ECM is a low maintenance business as there are no servers to keep a watch

In terms of threats, the biggest threat for NAX is presence of multinational

Product Life Cycle

900 839 Number of clients…

Picture. 1 – Product Life Cycle16

Ansoff Matrix – Evaluate growth strategy

Existing Product New Product

Navbharat Archive Xpress is a records management business that wants to introduce a

Porter’s Five Forces

Picture 2. – Porter’s Five Forces26

1. Threat of new entry

"Rogue Clouds Prevalent in Nearly 90 Per Cent of Indian Businesses: Symantec

Date of interview: 10th July 2013

2. Question: What made you enter the record management business?

4. Question: What do you have in mind about NAX’s future?

5. Question: Why choose Enterprise Content Management?

6. Question: Does ECM pose as a threat to physical records management?

7. Question: Are your existing clients adapting ECM?

8. Question: What is NAX’s brief execution plan for this product?

9. Question: How do you intend to maintain a long-lasting reputation in the

Picture 3. – Pictorial representation of NAX’s nationwide presence as shown on the

You might also like