Carefully crafted business strategy, value-added services drive organic growth.
By Edward F. Moltzen

Even as networking giant Cisco Systems suffered one of the worst setbacks in the history of American business, losing more than $400 billion in market value amid a strong technology sector, a young Cisco partner saw its fortunes move in the opposite direction.

"Five years ago, in the midst of the dot-com era, everyone was going out for capital, instant growth. We decided to grow organically. For the past several years, we've been doubling every year."

Mark Theoharous, CEO

Burwood Group, a Chicago-area internetworking consultant and solution provider, saw its annual revenue jump to $4.1 million last year from $632,000 in 1999, a mind-numbing 559 percent sales increase. Its key vendor partners include Cisco and Citrix Systems.

"Five years ago, in the midst of the dot-com era, everyone was going out for capital, instant growth," said Mark Theoharous, CEO and founder of Burwood. "We decided to grow organically. For the past several years, we've been doubling every year."

And that sharp, steady growth stemmed from a well-developed business strategy,not a get-rich-quick scheme, according to Theoharous. "One of the key things is, we didn't just go for the big bucks," he said. "That allowed us to really pick our markets."

A former executive of then-Andersen Consulting (now Accenture), Theoharous said Burwood has maintained a lean, efficient operation that focuses on offering value-added services, chiefly in the health-care field.

Aside from consulting expertise, the solution provider offers network integration services and what it calls "co-sourcing." The latter is a long- or short-term, retainer-based consulting and outsourcing relationship in which Burwood works with a customer's IT department on an as-needed basis.

In addition, Burwood has crafted a VPN offering that handles data management for health-care services. Among other things, the VPN allows a customer to offer medical students an online training enrollment program as well as better connectivity to partners. The return on investment for that solution is less than one year, Theoharous said.

Burwood's VPN solution reflects companies' increased technology savvy amid the turbulent economic environment, Theoharous noted. "The whole business climate has changed over the past few years," he said. "Solution providers got free credit cards. IT spending was strong. Then the new millennium hits, and [customers] say, 'Let's justify this.' People are really trying to justify [technology spending]." Through its consulting services, Burwood enables customers to match their IT needs with their business objectives, Theoharous said. "With the consulting skills we bring to the table, we can help companies figure out how [that spending] aligns with their business," he added.

Mark Griesbaum, CIO of Career Education, a Burwood customer based in Hoffman States, Ill., said the initial reason he chose to work with the solution provider was its networking solution capabilities. "I think a couple of the key things [Burwood] brought to the relationship was their network architect skills, their ability to help us architect the type of network that we need to put in place," he said.

"I had some senior-level guys here, but [Burwood] brought the detailed experience that needed to take place to confirm the right decisions we should be making on a long-term basis," Griesbaum added.

Besides gaining some networking insight from Burwood, Career Education decided to hire the solution provider to help meet a shortfall in IT manpower, according to Griesbaum.

"I was short-staffed," he said, explaining that Career Education "had an architect and a very senior person" to oversee the firm's technology choices and projects. "I didn't have the arms and legs to implement it. [Burwood] really helped supplement what I had."

Burwood's consulting expertise and its initial successes with Career Education have led the two companies to continue their relationship.

"We're done implementing the network, but our relationship is still there," Griesbaum said. "The value-add is there, they know our network and they really make sure we are buying and configuring for our long-term interests."

Published for the Week Of October 7, 2002.