STRATEGIC PRIORITIES

STRATEGIC PRIORITIES

1
1 DATATEC GROUP

DATATEC GROUP

  • Continued share buy-backs aligned to prudent cash management
  • 12-month return to profitability in Westcon International
  • Improve accounts receivables and net working capital in Westcon International
  • Consolidate Logicalis' position through organic and inorganic actions
  • Continue to look for optimum value realisation opportunities
2
2 INTEGRATION AND MANAGED SERVICES

LOGICALIS

  • Continue to focus on improving the services and annuity revenue mix
  • Focus on cost reduction activities in legacy areas of the business
  • Continue the roll out of the common services platform to new countries as an enabler for further efficiencies
  • Seek further acquisitions to boost market share in existing territories and to leverage Logicalis' capabilities in emerging technologies
3
3 TECHNOLOGY DISTRIBUTION

WESTCON INTERNATIONAL

  • Focus on revenue growth, margin improvement and profitability
  • Working capital normalisation and improving cash flow
  • Africa transformation, transition from loss to profit
  • Leverage technology automation around SAP and customer-supplier tools
  • Reverse BPO to improve customer service and transaction execution
  • Shared services centres in SA and Philippines for EMEA and Asia-Pacific
  • Continued focus on Comstor-Cisco differentiation
  • Expand security portfolio in emerging technologies
  • Deployment of digital distribution technology – Cloud/aaS enabled ERP
  • Reduce ongoing central costs to below 1% of revenue
4
4 CONSULTING AND FINANCIAL SERVICES

ANALYSYS MASON

  • Improve scale
  • Grow research practice
  • Customer diversified

DATATEC FINANCIAL SERVICES

  • Drive penetration and revenue growth
  • Expand geographical coverage
  • Increase product efficiencies


Business model

The Group has a decentralised business model with three principal operating divisions (Integration and Managed Services – Logicalis; Technology Distribution – Westcon International; Consulting and Financial Services – Analysys Mason and Datatec Financial Services) that are managed as standalone businesses.

The diagram below illustrates Datatec’s role in the ICT supply chain. The spread of business activities across distribution, integration and consulting provides the Group with multiple entry points to the global market, and acts as a defensive measure against adversity in any one vendor, geography or technology.

The Group’s operating divisions act as industry intermediaries in the ICT supply chain, enabling IT users to gain access to a broad range of advanced technology solutions and professional services in order to implement and maintain secure complex IT networking, unified communication, cloud and data centre infrastructures.

The Group has strategic partnerships with leading technology vendors who outsource specific elements of the supply chain such as distribution, logistics and marketing to value-added distributors like Westcon-Comstor. In addition, vendors also rely on resellers and system integrators like Logicalis to address the highly fragmented end-user customer base who require technical expertise to identify and install complex systems, critical solutions and managed services. The Group’s consulting and research division not only consults to vendors but also to public and commercial enterprise customers, telecoms, media and technology providers. Datatec Financial Services provides financial solutions and services to end-user customers, partners and manufacturers of Datatec’s operating divisions.

The business model empowers its divisional management teams to make operational decisions that are best suited to their individual operating needs but within a strategic operating and financial framework set by the Group. The pure-play nature of each operating division also facilitates enhanced operational and financial performance as well as the ability to react faster to technology changes.

ICT supply chain overview
ICT supply chain overview

The diagram above illustrates Datatec’s role in the ICT supply chain. The spread of business activities across distribution, integration, and consulting and financial services provides the Group with multiple entry points to the global market, and acts as a defensive measure against adversity in any one vendor, geography or technology.

The Group’s operating divisions act as industry intermediaries in the ICT supply chain, enabling IT users to gain access to a broad range of advanced technology solutions and professional services in order to implement and maintain secure complex IT networking, unified communication, cloud and data centre infrastructures.

The Group has strategic partnerships with leading technology vendors who outsource specific elements of the supply chain such as distribution, logistics and marketing to value-added distributors like Westcon International In addition, vendors also rely on resellers and system integrators like Logicalis to address the highly fragmented end-user customer base who require technical expertise to identify and install complex systems, critical solutions and managed services. The Group’s consulting subsidiary, Analysys Mason, not only consults to vendors but also to public and commercial enterprise customers and telecoms, media and technology providers.

Datatec Financial Services provides financial solutions and services to end-user customers, partners and vendors of Datatec’s operating divisions, Logicalis and Westcon International, to drive incremental business and profitability.

The business model empowers its divisional management teams to make operational decisions that are best suited to their individual operating needs but within a strategic operating and financial framework set by the Group. The pure-play nature of each operating division also facilitates enhanced operational and financial performance as well as the ability to react faster to technology changes.