CASE STUDY - JUNE 2007 Anticipating Federal Purchasing to Create Growth Opportunities WHAT TOFFLER ASSOCIATES FOUND “Toffler Associates revealed several opportunities for double-digit growth that our client had never thought of pursuing before. They were very happy with the results of our effort and were motivated to make the changes we suggested in order to take advantage of the new prospects we identified.” – Toffler Engagement Leader RESULTS BASED ON HARD FACTS, NOT LUCK “They wanted to take the luck out of the equation when choosing where to invest their time, money, and talent,” said the Toffler Associates Engagement Leader. “This was a mission-critical decision, so the corporation wanted a creative but plausible assessment based on hard data. We looked at three markets for them: the intelligence community, the Department of Defense, and the civil agencies, which include everything from Health and Human Services to Social Security.” Part of the Toffler Associates approach is to use existing budgetary information to base its projections, but the government agencies do not budget more than one year in advance and the client needed to create a five-to-10-year marketing plan. As a result, the project team had to apply some clever detective work. “Not many consultants can do that kind of assessment or at least do it very well,” continued the Engagement Leader. “Over the years, we have built a strong reputation of exceptional analysis when it comes to doing the hard problem-solving of forecasting future markets.” THE TOFFLER ASSOCIATES METHOD Most firms hire consultants who are experts in specific, narrow fields of interest. Toffler Associates has its share of specialists in individual markets, but also has people who are recognized authorities in legislative, geo-political, economic and other spheres of activity that shape its clients’ marketplaces. This broad knowledgebase crosses multiple domains and subject areas. Toffler Associates also has the creative insight to determine what could happen in adjacent markets and predict various alternative outcomes leading to more sophisticated forecasts. “Our prognoses are closer to reality,” noted the Engagement Leader, “because we bring multiple factors to bear on the issues we are researching, which is exactly how the world works. There are not just one or two factors that shape the intelligence, defense, civil, and other markets, there are many factors. So we applied a multiple-dimension approach when we prepare our forecasts.” In addition, Toffler Associates’ analysis included research to understand such emerging factors as: how the buying habits of the government are changing, what the government is buying, the speed at which they are buying, and which technologies they are looking to purchase. The engagement team studied the market as it is today and how it will change in the future based upon this unique understanding of the emerging needs of the government-as-consumer. Finally, the team applied several alternative statistical analysis approaches to determine how the markets would play out, where the markets were consistent, and where they would grow. THE SOLUTION: TEN PROMISING MARKETS Based on its findings, Toffler Associates used three criteria to winnow from 26 potentially promising federal markets to the 10 it recommended its client plan to compete and win in: 1) Which markets had the most growth? 2) Which offered the highest probability of awarding this client a bid? and 3) Which specifically had a need and desire to purchase the client’s products and services? “We revealed several opportunities for double-digit growth,” said the Engagement Leader, “that our client had never thought of pursuing before. They were very happy with the results of our effort and were motivated to make the changes we suggested in order to take advantage of the new prospects we identified.” One of those changes included adding to their communications capabilities by acquiring new companies. The client’s core competency was technologies that communicate information, but Toffler Associates determined that storing and processing information had the highest growth potentials in these 10 markets. The client firm currently is pursuing partnerships or acquisition of companies that excel in these two areas. The client, headquartered in the southern U.S., also acted on Toffler Associates’ suggestion that they open an office in Washington DC to improve communication and networking opportunities with the agencies, which are headquartered in the nation’s capital. NEW FOCUS AND MOTIVATION TO CHANGE “Our client’s corporate culture was such that they resisted acquisitions and opening an office in Washington, DC,” explained the Engagement Leader, “but soon saw the advantages of both, particularly of an active presence in Washington. Based on our recommendations, they are shifting resources and personnel to align themselves with the areas of future expansion in the 10 federal markets. There is a new-found excitement and optimism at the company now that they have clear, attainable goals for growth where before they only saw a relatively flat market.”

WHY TOFFLER ASSOCIATES CONDUCTED THIS STUDY The U.S. government spends more than $1.1 trillion, making it the world’s largest purchaser of products and services and a key driver of the U.S. economy. But doing business with the huge bureaucracy can be daunting. Determining where the government’s future needs lie and how your company’s offerings meet those needs involves a lot of research, perseverance and luck. That’s why when a national telecommunications and aerospace corporation wanted to grow the business it already conducted with the federal government, it contacted Toffler Associates.