Systems Evolution Inc. (SEVI) provides information technology (IT) outsourcing and systems integration for the mid market. SEVI has an aggressive growth strategy based upon organic growth and strategic acquisitions that will make it a top 5 Houston systems integrator by 2006, with a recognized, national presence by 2008.

Background

Systems Evolution Inc. was founded in 1993 and is publicly traded on the OTC:BB. Over the last decade, SEVI was extremely successful adapting and implementing emerging technologies and methodologies without losing sight of our commitment to long-term customer relationships. SEVI is known for its unique blend of technology expertise, project management skills, industry knowledge and service with integrity. We offer a unique combination of expert level consulting to solve our client’s immediate business and technology challenges as well as a variety of outsourced service offerings focused on stabilizing their IT environment, budgets and personnel.

Our Philosophy

Present a clear and consistent message that differentiates SEVI and creates a demand generating brand image in our target marketplace.

Deliver on the message of SEVI as a trusted advisor through successful projects, knowledge transfer, and expert-level mentoring.

Create an employee-focused culture with an emphasis on communications, individual and team recognition, personal growth and career planning to generate a self-perpetuating engine for winning business, attracting and retaining the best people and allowing us to win more marquee clients.

Refine our technology best of breed solutions, staying ahead of our clients and competitors to provide points of entry into new clients via mentoring.

Leverage partner relationships to identify new prospects, enter new markets, and qualify opportunities in existing targeted accounts. Furthermore, use guerilla-marketing programs to further establish our brand image.

Establish long-term relationships with targeted clients to document each company’s technology preferences, decision-making processes, budgets and business model and continue to position SEVI’s long-term interest in supporting their business and technology needs.
Goals
Our corporate goal is to achieve these items by July 2005:

v Be a top 5 Houston systems integrator
v $25 million run rate
v 5% earning before interest and taxes (EBIT)

Acquisition Strategy

Partner Profile

Our typical candidate will be a leader in the regional territory that they serve with a distinct brand image in the technology or industry vertical in which they specialize. They will be recognized by their technology partners as the “go to” company in their geography. Size can range from $500,000 to $5,000,000 in revenues with gross margins of 35% or greater and a bottom line minimum of 10%. In general, we are looking for teams that are very good at what they do but are looking to be a part of a larger organization that can help them round out their capabilities and grow their organizations.

An example could be a group of superior technical consultants that have grown to a size where they are well known for their technical superiority, but have reached their growth limit based on sales capacity, infrastructure, capital, and administration. However, it is just as likely that a candidate might have secured a strong sales position in one aspect of a marketplace and is looking for the supporting delivery capability.

Functional Areas and Brand Image

As described above, we are looking for teams that fit into one or more of the functional areas that we are trying to build in order to offer complete or partial outsourced and managed services to the mid-market. The following diagram is a simple representation of the layers that make up our final organization. The base of the pyramid is platform and infrastructure support. The next level is the technology that powers the business solutions. Next are the business solutions that help leverage technology to solve our client’s business challenges. Each of these functional areas offer strategic entry points to win new clients that will ultimately allow us to cross-sell additional services and move towards outsourced services.

Service Offerings

These functional areas are more than the accumulation of skills and experiences needed to provide outsourced services. They represent distinct brand image offerings that provide an “entry point” to gain new clients. We value each unique offering and want to keep that advantage in the marketplace. Once we secure a new client with one or more offering we want to make sure that we build that relationship and earn the credibility required to begin cross-selling other services and ultimately, through superior delivery and “client delight” we want to earn the right to propose a higher level relationship by outsourcing all our part of their IT environment. This strategy gives us a mix of high-value expert level services that command higher margins with long-term consistent and predictable revenue from outsourced services. This could start with platform and network management or it could begin with an outsourced engagement to manage all of their offshore development.

Assimilation Strategy

Early in our acquisition strategy we will be looking for organizations that are leaders in their functional arenas as well as the geographies that they serve. These organizations will be brought on as “flag ship” offices and will work with the management team to define the service brand, develop a growth plan that includes financial metrics, personnel, technology span and geographic expansion. These practices will be judged on how they perform against their own goals with “incentives” to encourage cross-selling. We anticipate changes in organizational philosophy in the years following the initial phase of our business plan (18 months) which could include a combination of geographic and practice management.

Why Systems Evolution Inc.?

SEVI is a public company with an equity position that allows our acquisition partners to exchange their sweat equity for a liquid investment.

During the initial phase of our business plan we are looking for leaders. Aggressive business and technology leaders that are looking to grow their existing organization, as well as their careers, have an opportunity to help set our direction and strategy.

SEVI provides a unique opportunity to get in on the ground floor of an organization that will grow exponentially and provide a return on our investment that is above and beyond what we could experience individually.

This is our opportunity to build a professional services firm in a way that we know is right for our employees, clients and investors. This is a rare opportunity to do it right from the beginning and build the firm that we can be proud to be a part of. You can make it happen: