Our strategy

Datatec's strategy is to deliver long-term, sustainable and above-average returns to shareholders through portfolio management and the development of its principal operating divisions – providing technology solutions and services to targeted customers in identified markets.

The Group provides leadership and sets the direction and strategy for each business, together with divisional management. It identifies potential areas for growth and supports the realisation of growth either organically or through acquisition by allocating capital and financing.

The Group targets revenue growth, EBITDA margins and return on invested capital (“ROIC”) to drive financial returns.

The Group’s decentralised operating model, extensive geographic footprint, positioning across the ICT value chain and strong vendor and customer relationships, combine to create a strategic competitive advantage.

Strategic roadmap

The Group is committed to improving performance across the business and has identified the following 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