Page 1: Introduction
Businesses do not operate in isolation. They are constantly faced with internal and external factors that impact on the dynamics of their operations. Monitoring the external environment is vital to identify changes that could affect the business operations. Being able to address and adapt to these changes ensures the longer term survival of the business.
Logica is an innovative IT services organisation that brings people, business and technologies together. Logica employs more than 41,000 people and has clients around the world in a variety of industries including automotive, oil and gas and manufacturing. Logica’s services aim to add value for clients through, for example, improving efficiency and productivity or reducing waste.
This case study illustrates how Logica monitors its external environment using PEST analysis. This is a structured business tool that looks at the political, economic, social and technological influences affecting a business. By auditing and monitoring these influences, Logica can be proactive in ensuring it remains competitive by adapting its own business and by generating innovative and unique solutions for its clients.
For businesses to stay ahead of their competitors, they have to deliver innovative products and services. Logica works with customers to aid business development. For example, Logica has provided:
- the automated ticketing system for London Underground
- the outsourcing of IT and technical applications for Taylor Wimpey, the UK house building business
- business applications for the Ministry of Justice’s Courts, Tribunals and offices
- the design of electronic security services for the UK’s Department of Defence
- the system for generating Premium Bonds (ERNIE).
Logica therefore requires highly skilled employees who are able to adapt and deal with a range of challenges. The work of Logica is not just about developing technology. It is about getting business benefits from the technology available. It is also about enabling clients to reduce environmental impacts. Logica’s experts increasingly provide sustainable and long-term solutions for its customers. For example, it works with governments and automotive companies to develop and promote sustainable methods of transport.