Dimension Data has brought together several companies into what will be South Africa`s largest provider of e-commerce services. This move forms a vital component of Dimension Data`s newly unveiled interactive commerce business strategy.
Rob Taylor, executive director of Dimension Data i-Commerce says: "In the new distributed and collaborative business environment, systems integration is the key element in the success of an e-commerce solution. The ability to integrate into customer systems, supplier systems as well as into existing back-end systems will be vital."
The new Services business unit of Dimension Data i-Commerce will focus on assisting customer organisations in transitioning their businesses into interactive commerce businesses. Expected revenue for FY2000 is R580-million.
Says Taylor: "The Services business unit will provide the application highways for the deployment of e-commerce."
Colin Mayne, previously managing director of Dimension Data Business Solutions, will head up the new unit, which will have an immediate staff complement of over 1000 employees and 800 contractors.
According to Taylor, the move is in response to customer demand for a simpler interface into Dimension Data`s interactive commerce services skills.
"In addition, stakeholders want to see dynamic growth from the coordinated deployment of our skills and experience. This integration will enable us to provide one interface into an extensive pool of highly skilled e-commerce resources."
Dimension Data`s previously autonomous organisations providing a range of professional services to the marketplace, will be merged to form one dynamic, highly skilled interactive commerce services provider. These in clude BSW, Shared Objectives, DD SilverLine, The Internet Solution`s e-Commerce division and Dimension Data Business Solutions.
Taylor says South African business has been slow to react to the challenges of e-commerce, rendering the local market immature in comparison to international markets.
"Particularly relative to the speed of e-commerce adoption we are seeing in the Australian market, local businesses are only now beginning to define and understand their e-commerce strategies. Our experience has given us a very good feel for the e-commerce market, and the signs indicate the South African market is finally about to take off," he says.
According to Forrester the US e-Commerce services market is pegged to grow from its current $6.6-billion to over $32-billion in 2003.
Says Taylor: "Having pioneered and developed the Internet industry in South Africa through The Internet Solution, Dimension Data is well positioned to bring together our skills and experience in providing e-commerce solutions and offer this as a powerful, integrated solution to the market. Our skills include competency in solutions architecture, front office and back office integration as well as permanent and contract recruitment."
The business will offer an end to end solution from conceptualisation and strategy consulting services, through integration including the raw programming required; and bringing the solution together through strong programme management. Consulting services, resourcing, managed services and training will also be part of the offering.
"Organisations will also benefit from the approach of shared risk and guaranteed delivery from Dimension Data," comments Taylor.
The new company will not only dominate the local e-commerce market, but with an aggressive globalisation strategy, aims to build on the success of the globalisation of Dimension Data`s networking interests.
Says Taylor: "We plan to leverage the experience and global infrastructure of our networking division, to expand our e-commerce offering internationally. Recent successes against international competition, specifically in the UK, have proven the Dimension Data professional services team has a range and depth of skills equal to the best in the world.
"The new business will assist organisations globally to integrate and extend their businesses for competitive advantage in the New Economy," says Taylor.
A key motivator behind the move is to provide an even more exciting and challenging environment for Dimension Data staff.
"This integration will facilitate opportunities for our staff to be trained in a variety of technologies, as well as to work on solutions that address the leading business challenges of today, namely e-commerce, customer management and supply chain management," explains Taylor.
"We believe this company will be breaking new ground in partnership with our customers, and this is a very attractive environment for skilled consulting and IT professionals."
In addition, Dimension Data sees this an opportunity to nurture new skills. Within twelve months, the group intends to establish training facilities in Gauteng and the Cape. These will help grow IT skills in South Africa, with special emphasis on the development of black skills.
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