Digitalthink Case Study

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Digital think is a company that was founded in 2006, by Umberto Milletti and two of his friends. They observed that the changes in technology going on in the mid 90s, was changing how companies around the world were doing business. Increasingly, they saw that employees of companies around the world were using software applications to make themselves more productive. Milletti and his colleagues wanted to create their own kind of software that would help make companies more productive.

Milletti and his colleagues formed a company that provided e-training and e-learning services to companies through software applications that could be brought by companies and downloaded off of the Internet by their future employees. They called this company DigitalThink. DigitalThink targets their e-training and e-learning services to companies that have many locations around the world. These types of companies include rental car companies, airlines, hotels, retail chains, banks and many more. Many of these companies send new employees to centralized locations to get the training they need to prepare them for their new job with the company. This type of training is classroom based and can take days, weeks, or months to be completed. This type of traditional training is time consuming and costly to companies that have to send thousand of new employees to centralized locations frequently throughout the year.

DigitalThink’s e learning and e-training services allows companies to save time and money. New employees can train from their own computers at their own homes. They can also learn at their own pace increasing the effectiveness of the training. The training programs teach the new employees specific skills and facts that they need to know to do the job and then places the new employees in real live situations that they will encounter on the job. These real live situations allow new employees to solve problems and situations that they will face on the job. In short, it prepares the employees for their new job. So far DigitalThink’s methods have shown to reduce training time by fifty percent and costs by almost sixty-five percent.

The central problem for DigitalThink is the size of its target market. DigitalThink targets big companies that have to send thousands of employees throughout the year to centralized locations to get training. Many of these companies have locations all over the world and include companies that are in many different industries such as car rental companies, hotel/retail chains, banks and many more. DigitalThink targets the largest companies in the world or the Global 2000 companies since according to this case these companies have the “critical mass needed to justify large training programs.” Currently, DigitalThinks customers include thrity one companies in the fortune 100 and four hundred and fifty organizations in over one hundred and fifty countries. Many of DigitalThink’s current customers are companies in the above-mentioned industries that have to use massive instructor led classes in centralized locations to train new workers. This brings us to the central problem, is DigitalThink’s target market large enough for the company to grow and expand?

There are millions of companies around the world and DigitalThink wants to limit its market to only 2000 companies. Is this really a big enough market for the company to grow and expand? Since the Global 2000 companies are DigitalThink’s target market that means that they only have a potential of 2000 clients. In reality, not all of the Global 2000 companies will want to use DigitalThink’s services. The reasons for this is include that not all Global 2000 companies send their employees to centralized locations for training, so these Global 2000 companies have no use for DigitalThink’s products. Another reason is that right now DigitalThink seems to be the only real competitor in this market, but that doesn’t mean it will stay this way. Eventually other...
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