SAMSUNG - ECS Holdings Limited

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market value continued from page 4 This is very important as when HP begins the “attack” on this segment, our various business units are going to deploy customer-facing reps, launching demand-generation activities like road-shows and seminars, bring together ISVs who carry different solutions. HP SPO will ensure that these leads generated will be passed on to the right partner to follow-up. So it is all about getting the channel eco-system ready. I am very proud to say that HP is the largest IT vendor with a very strong set of managed, final-tier partners whom we are confident to be number 1 in their space, These are bestof-breed partners. To a certain extent, we also extend the specialization to the partners, which we call “elite” partners. For example, we have the elite blade partners (who are top resellers of our blade server products) and the elite storage partners, or elite IPG partners for printers. The idea is to have very strong closed-loop marketing and management sales cycles so that the leads generated are passed on to the right partners, especially the “Elite” partners to close the deals. Besides the best-in-class final tier resellers, HP also has the best distributors in the industry, like ECS. We look forward to further improving our supply chain efficiencies with our distributors and work on programs to help us reach deeper and wider into the AP markets. Moreover, we will continue our “attached up-sell and cross-sell” strategy from 2006. The reason for this is that it benefits HP as well as the partners. From the partner’s perspective, if we get the right type accessories, options and the right programs in place to stimulate the up-sell and cross-sell, they get the opportunity to increase their margins by selling the more profitable products. HP certainly has the right infrastructure to support this and for our PSG and IPG business, this strategy will continue to be important for 2007. For example, ECS has helped HP a lot here. We have come up with various programs to ensure that from a distributor perspective, we can help drive and influence the final-tier to sell more of our accessories and options. Q: Do you see any changes in the business climate for Asia Pacific, and if you could use some of the countries as examples? A: Generally, this has remained unchanged. The twin engines of growth—India and China—are still on everyone’s radar. They continue to have very strong double digit growth in the channel business. The approach is now to venture from the larger cities into what we call tier-5 and tier-6 cities. ecs post issue nine Within the Southeast Asia region, the mainstream countries will continue to offer fairly healthy single digit growth. However, the real opportunity I see is the Indo-China market: Vietnam, Sri Lanka, Pakistan, and Bangladesh for example. For the mainstream markets, government policies will certainly help, but this can only go so far in terms of the big picture. These are “boosters” to the market but in terms of organic growth, the areas to watch for are India and China. Q: For the more mature markets, what would you advise the resellers to do in order to improve customer satisfaction? A: I think the reseller has several things to balance. They have to understand their customer and segment trends in their countries and identify the growth triggers. They need to be linked to the right solutions and services and offer the right portfolio to latch on to the growth opportunities. For the larger countries, the reseller has to think about geographical expansion as well. Yet, the reseller has to keep an eye on the IT business, their cost structure, business models in order to remain competitive. Q: Are there any new initiatives to foster better communication with your partners? A: Our partners interface with HP via our Partner Portal. We understand the importance of this and have invested a lot to improve and enhance the Partner Portal experience. What we have done is to put a lot of relevant materials on the portal for all our partners, like HP rebate programs and a weekly update ensures that our partners can access their score card, like a speedometer to see how fast they are driving relative to the target. These updates include resources like technical materials, new product information, pricing information, etc. These tie into our specialization initiatives whereby our partners can now be more productive. More information is available to them on-line so that they can access them faster than before. In March, we are re-launching our loyalty program. Formerly known as E-Points, the new and improved version will be called HP AchievePlus Programme. Here, our partners will get more opportunities to accrue points for selling “sweetspot” products, “cross-sell/up-sell” attached products, etc. In addition, a partner who specializes in mid-markets who achieves training certification will accrue points as well. This is certainly a more exciting rewards program overall.
Interview with Ivan Tjahjadi, President, ECS Indonesia country focus: indonesia Q: What factors would you attribute to the success of ECS in Indonesia? A: Our extensive network of 1,600 partners and resellers is one of the leading contributors to our success. In addition, the strong and long-term relationship we have with the leading IT vendors - providing us with a comprehensive range of products from consumer electronics to enterprise IT, and thus enabling us to penetrate the market deeper and wider than our competitors. Not to mention our dedicated team of highly experienced and competent staff. Most of whom have been with company for more than 10 years. Our finance team has also contributed significantly by providing valuable support to our resellers. Q: What is the goal of the company in Indonesia? A: Our current goal is to achieve sustainable profitability and growth. In the growth area, we are going to focus and accelerate our expansion plans by adding more branches and continue looking for more products and new market segments. Q: How different is ECS from other IT distribution firms in Indonesia? A: First of all, we have dedicated and committed people who are passionate about the business. Their professionalism really sets the industry benchmark. ECS is also different from the competition by the fact that we are the leading IT distribution firm in Indonesia and a leading regional player – making us the preferred partner as we are able to support our resellers better with a wider range of products and services. Q: What new technology will be important for Indonesia? A: The potential growth segments in Indonesia are 3G technology and broadband. Today many new products already support 3G and Wireless, and this will also create new opportunities for content providers and application developers. In terms of infrastructure, we are seeing a lot of roll-outs in broadband technologies like ADSL and leased-lines. However, the challenge for the Indonesian government is the cost of the infrastructure. Then again, these are early days for broadband, but like telecommunications, the potential is there when you consider the number of islands that we have. ecs post issue nine ecs post issue nine
Page 1 and 2: ECS Offices: CHINA Beijing Chengdu
Page 3 and 4: By Tay Eng Hoe, Group CEO, ECS Hold
Page 5 and 6: Lim Tow Cheng Senior Vice President
Page 7: l D&D HP Malaysia), untry Sales Dir
Page 11 and 12: Fast Facts on ECS in Indonesia Head

SAMSUNG - ECS Holdings Limited

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