Technical Data Corporation Essay

7927 Words Mar 31st, 2013 32 Pages
Harvard Business School

9-283-072
Rev. December 1, 1987

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Jeff Parker was 38 years old, and held BS (1965), Master of Engineering (1966) and MBA (1969) degrees from Cornell University. After receiving his MBA, Parker had been employed in a number of positions in the investment industry. From 1969 to 1971, he worked for Smith Barney

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This case was prepared as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 1983 by the President and Fellows of Harvard College. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical,
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The requisite data were typed into the APPLE by a clerical worker. Then, the individual

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Also, TDC had introduced a number of new analytical services for use by traders of longterm bonds. By April of 1982, the company had expanded the number of pages of information offered from 19 to 40. There were always new ways to analyze or present data on yields and prices.

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Over the year and a half that the business had been in existence, a number of improvements had been made in the basic product. For example, when first introduced, the analysis of bond prices, yields and futures prices was updated only once a day. However, Technical Data had recently hired someone to update the data and analysis more frequently, in some cases as often as hourly. In the longer run, plans called for continuous updating by computer.

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TDC charged approximately $150.00 per month per customer for access to its services. This fee was extremely modest in comparison to the other costs incurred by bond market professionals. By mid-1982, the company had over 500 paying subscribers, slightly under 10% of all the Telerate screens in existence. A representative list of customers is provided in Exhibit 2.

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Technical Data had the right to send out up to 40 "pages" of information over the Telerate system. Then, Telerate customers could
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