AgendaAgenda
WHAT IS GAPPWHAT IS GAPP
GAPP IN BELGIUMGAPP IN BELGIUM
PC PRIVE – THE LAWPC PRIVE – THE LAW
PC PRIVE – YOUR OPPORTUNITYPC PRIVE – YOUR OPPORTUNITY
Government Assisted PC ProgramsGovernment Assisted PC Programs
Empowered Empowered centralisedcentralised Government body Government body
Industry consortiumIndustry consortium
Communication CampaignCommunication Campaign
Improve Improve ICT skills ICT skills citizenscitizens
Digital Digital InclusionInclusion
Improve Improve EducationEducation
Build Build efficient efficient
eGov infra-eGov infra-structurestructure
Gov.priorities
Intel expertise
Enabling greater PC and solutions penetration thru Enabling greater PC and solutions penetration thru sustainable usage models supported by sustainable usage models supported by
government incentives and flexible PC acquisition government incentives and flexible PC acquisition schemesschemes
Government Assisted PC ProgramsGovernment Assisted PC Programs
Joint Governement & Industry cooperation Joint Governement & Industry cooperation – Telco: internetTelco: internet– Local Integrator: PCLocal Integrator: PC– Bank: low interest financing Bank: low interest financing – Repay through Telephone bill …Repay through Telephone bill …– Government: Sponsors – Public + visible CampaignGovernment: Sponsors – Public + visible Campaign
Various Options of AudienceVarious Options of Audience– EmployeesEmployees = EPP – Employee Purchase Program = EPP – Employee Purchase Program– Education Education = SPP – Student Purchase Program= SPP – Student Purchase Program– xPP xPP = different demography segments – e.g. senior = different demography segments – e.g. senior
(SePP), low income etc.(SePP), low income etc.– SME link to eGovtSME link to eGovt = Mature + Emerging mkts = Mature + Emerging mkts
LOW PC HOUSEHOLD LOW PC HOUSEHOLD PENETRATION (52 TO 54%) PENETRATION (52 TO 54%)
= BELOW EUROPEAN = BELOW EUROPEAN AVERAGEAVERAGE
ONE GAPP PROGRAM LIVE ONE GAPP PROGRAM LIVE IN BELGIUM IN BELGIUM
PC PRIVEPC PRIVEEMPLOYEE PURCHASE PROGRAMEMPLOYEE PURCHASE PROGRAM
Gov’t efficienciesGov’t efficiencies Country Country
competitivenesscompetitiveness Build eGov Build eGov
InfrastructureInfrastructure Computer LiteracyComputer Literacy Shrink Digital Shrink Digital
DivideDivide
Employees
Government
Industry
Employers
Cost savingsCost savings EducationEducation CareerCareer ConvenienceConvenience
Up-skill Up-skill WorkforceWorkforce
Employee Employee ProductivityProductivity
Add’l. Add’l. Employee Employee BenefitBenefit
Job FlexibilityJob Flexibility Operational Operational
savingssavings
Sell Up Sell Up New route to New route to
MarketMarket TAM TAM
ExpansionExpansion Pull for Other Pull for Other
Equip/SvcsEquip/Svcs
PC PRIVEPC PRIVE
Industry
Industry= YOU
EMPLOYEE BECOMES OWNER OF PC & EMPLOYEE BECOMES OWNER OF PC & PERIPHERALS PERIPHERALS
Employee does the purchase within the guidelines of the Employee does the purchase within the guidelines of the employer plan + pays VAT + pre finances the purchase + employer plan + pays VAT + pre finances the purchase + brings in the invoicebrings in the invoice
Offer can include printer, scanner, PDA (as peripheral) but Offer can include printer, scanner, PDA (as peripheral) but also broadband & softwarealso broadband & software
Reimbursement by the employer limited to max 60% of the Reimbursement by the employer limited to max 60% of the purchase price (excluding VAT) and with maximum of 1250 purchase price (excluding VAT) and with maximum of 1250 €€
OPTION 1OPTION 1FOR ALL EMPLOYEES
SAME OFFER
EXAMPLEEXAMPLE
EMPLOYEE
EMPLOYER
Reimburses 60% of 1600 €€ = 960 €€
Tax recup (33,99%) = 326 €€
COST = 634 COST = 634 €€
Pays 40% of the 1600 €€ + VAT
COST = 976 €€
1600 €€
+ 336 € € (VAT)
= 1936 €€
EMPLOYER OWNS THE PC AND PERIPHERALSEMPLOYER OWNS THE PC AND PERIPHERALS
Employer buys the material and offers it to the employee Employer buys the material and offers it to the employee for home usagefor home usage
A. This home usage is considered a taxable benefit, fixed A. This home usage is considered a taxable benefit, fixed at 180 at 180 €€ for the PC & 60 for the PC & 60 €€ for internet per year for internet per year
B. The employee does not have to report the benefits to B. The employee does not have to report the benefits to tax authorities when he pays these amounts to the tax authorities when he pays these amounts to the employer directly (employer directly (see example next slidesee example next slide))
OPTION 2OPTION 2FOR DIFFERENT EMPLOYEES, DIFFERENT OFFER POSSIBLE
EXAMPLEEXAMPLE
1600 €€
+ 336 € € (VAT)
= 1936 €€
EMPLOYEE
EMPLOYER
Buys PC (1936 €)€) & 3 years BB (1260 €) = €) = 3196 € OR € OR 1065 €€ a year
Minus 240 €€ (employee contribution) = 825 €€
Tax recup = 280 €€
Final COST = 545 €€
PER MONTH/EMPLOYEE = 45 €€
Pays 240 €€ a year (PC & internet) to employer
PER MONTH = 20 EUR
WHICH PERCENTAGE OF COMPANIES IS WHICH PERCENTAGE OF COMPANIES IS AWARE?AWARE?
WHO DECIDES?WHO DECIDES?
WHICH PERCENTAGE HAS ROLLED OUT?WHICH PERCENTAGE HAS ROLLED OUT?
ARE EMPLOYEES HAPPY?ARE EMPLOYEES HAPPY?
……..
Investigating roll out EPP
9%
Not familiar with EPP25%
Rolled out EPP18%
Decided not to roll out EPP
48%
1 OUT OF 4 COMPANIES IS NOT AWARE ABOUT EPP
- MAIN SOURCE OF INFORMATION IS PRESS
- BIG POTENTIAL FOR RESELLERS TO PC PRIVE DISCUSS FTF
NEED TO REMOVE ROADBLOCKS
BUDGET NEEDS & FOCUS ON MUTUAL BENEFITS
18% WITH EPP EXPERIENCE18% WITH EPP EXPERIENCE
Top 2 reasons for roll out– increase IT skills employees – incentive or extra bonus
1 out of 2 doesn’t know which option
85 % initiated by HR department
Top 1 obstacle = THE BUDGET
Top 3 elements EPP package– 81% PC, 31% printer, NB 11%
94% OF THE EMPLOYEES IS SATISFIED ABOUT PC PRIVE
Employee Satisfaction
6%
74%
3%
3%
14%
Extremely_satisf ied
Satisf ied
Neutral
Not_satisfied
No response
evaluated EPP in the past, 25%
evaluating EPP right now, 5%
not evaluating EPP at all, 68%
82% WITHOUT EPP EXPERIENCE
Up to 70% of EPP projects evaluations initiated by HR,– 19% by IT – 17% by CEO
79% evaluates internally, only 13% with external partner
MAJORITY OF COMPANIES IS NOT EVALUATING PC PRIVE
FUTURE PC PRIVE PLANSFUTURE PC PRIVE PLANS
74 % has NO plans–Lack of budget (17%)–Lack of management commitment
(10%)
14% has plans
Timing %
2005 17%
2006 34%
2007 17%
2008 7%
MAJORITY OF COMPANIES HAS NO PLANS …………… YET
YOUR OPPORTUNITYYOUR OPPORTUNITY
• Those who have tried it are enthusiastic. It works!
• 25% are not familiar. Go sell it!
• The obstacles can be addressed
• Projects got stuck in complex decision making – sell a total/simple solution!
• People are sitting with wrong assumptions
• PC Privé is a social investment and builds loyalty – do not use it in wage negotiations!
• Blue collar workers are enthusiastic about PC Privé!