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Public Eye: Has GTSI Shed Its Skin?

By Jill R. Aitoro, CRN July 24, 2007
Like it or not, business success rides on perception. That's particularly true in the public sector, where government customers and prime contractors place a lot of stock in a name (perhaps explaining why mega contractors like Northrop and Lockheed manage to remain perennial leaders) and associate a particular company with a particular skill set, capability, or market penetration.

Given that, GTSI has had quite a challenge on their hands. For so many years the company focused predominantly on products -- touting a huge portfolio and the ability to meet requirements for speedy fulfillment. That worked for a while, but as government agencies began to demand full solutions and place greater emphasis on services, GTSI struggled to maintain its position in the market.

To the company's credit, it recognized the need for changes. Management was shook up, employees were let go, and a new message was marketed to the customer.

But are they listening?

That's the tricky part. From the start, I've wondered whether GTSI would pull it off. I didn't necessarily doubt that the company would get the business model right -- certainly it's been entrenched in government long enough to recognize the demands that were now being placed upon the channel -- but I wasn't so sure it could shed its previous skin in the eyes of government or partners.

I will say this: GTSI took a smart approach, in that the company was not quiet about the changes. Executives owned up to the fact that the company could not sustains growth on the old model; that there would be some initially painful changes implemented; and that some learning would have to happen as the company transitioned to a completely new model.

And most recently, the company launched a whole new identity with the third logo in the Company's 24-year history and a tagline: "One Mission. Yours."

Obviously, re-brandings are never easy. The perceptions that the company worked hard to establish previously remain. But by laying all cards out on the table and demonstrating to customers, vendors and peers alike that these changes are more than some sophisticated marketing maneuver, GTSI certainly has a chance at coming back stronger than ever.

I recently spoke to Scott Friedlander, GTSI's executive vice president. He was honest -- said GTSI has been in transformation state for the better part of three years and probably will continue to be for another three years to come. But he also asserted that it's working. The company used a phased approach to implement a software architecture to support the Navy Cyber Defense Operations Command Incident Response Team, standardizing and storing data on a single secure network. GTSI continues to provide technology maintenance and management services. Employee morale has improved, Friedlander says, the workforce is growing, customers are finally understanding (and investing in) the company's newfound technology lifecycle management approach.

It's working, he says. And I'm prone to believe him.


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