VeriFone

The Transaction Automation Company

Suggested Study Questions

• 1. What are the key attributes of the VeriFone organizational structure? Some refer to VeriFone as a “Virtual Company,” do you agree?

• 2. Describe and evaluate the role of the CIO at VeriFone. How is Will Pape’s role similar to or different from the CIO roles that you have observed at other companies?

Key Players

• William Melton– founder

• Hatim Tyabji– Chairman, President, CEO hired in 1986

• Will Pape– CIO

VeriFone’s Business

• What do they do?– transaction automation — what is it?

• Where do they do it?– world-wide — 80 countries

• How well are they doing?– 60% market share

What is their product or service?

• Hardware– scanner– not the PC

• Software– integrates scanner with PC and network

• Network– carries data

How have they done so well?

• Factors of competition– product quality, features, price, application

software

• Driving the market– Where is the customer’s pain?

How are they organized?

• The VeriFone philosophy (Exhibit 11)

• Virtual company– blueberry pancakes

• Global company– international vs. global

• Value of an individual

Information Technology

• Will Pape– CIO

• Three purposes of IT– provide shared objectives– identify and report areas of weakness– provide real-time information at all levels

So, what’s the problem?

Discussion IssuesDiscussion Issues• Characterize VeriFone’s strategy and competitive

environment?• What are the key attributes of the VeriFone

organizational structure?• Describe and evaluate the role of the CIO at

VeriFone. How is Will Pape’s role similar to or different from the CIO role that you have observed at other companies?

• What major challenges will VeriFone senior management face in the future?

What would you recommend?

Verifone on the Web

Http://www.verifone.com

And then search for other information such as Tyabji