Our strategic progress
LOGICALIS
Logicalis’ growth in services is built on the excellence of its service delivery, delivered to clients with integrity and in partnership with them to help them achieve their goals. Additionally, with agile business practices, it is able to unlock further innovation and empowerment across Logicalis to drive future growth and remain at the cutting edge.
Even though global trading uncertainties are expected to persist for the short to medium term, Logicalis is confident in its ability to continue to respond to market needs. The technology segments that Logicalis specialises in are key parts of cloud infrastructure and the remote access computing solutions necessary for enterprises to adapt.
Below are the FY22 strategic objectives as published in the previous year, as well as Logicalis’ progress against these objectives:
Achieved
In progress
Not achieved
2022 STRATEGIC OBJECTIVE
2022 DELIVERY
- Increased revenues for cloud professional and managed services
- Three new solutions:
- Logicalis Collaboration
- Secure OnMesh
- Intelligent Connectivity
- Solutions launched globally, rolled out through the Logicalis Sales Enablement Platform
- New southern and northern global services hubs now created
- Improved the operating expense as a percentage of net revenue from FY21
- Under difficult trading conditions as a result of extended supply chain lead times, the efficiency of operating cash conversion has been impacted resulting in lower positive cash flow conversion than FY21
2021 strategic objectives still in progress at date of 2021 report
Below are the FY21 strategic objectives still in progress in the previous year, which were not identified as an FY22 strategic objective, and our progress against these objectives:
Achieved
In progress
2022 STRATEGIC OBJECTIVE
2022 DELIVERY
- Covid-19 has become business-as-usual. Hybrid flexible working policies are in place across Logicalis, which has been able to reopen offices, with employees being asked to work where they can be most effective in their roles
- Established Global Solutions development capability and the launch of three new offerings:
- Intelligent Connectivity
- Digital workplace collaboration suite
- Secure OnMesh
- The listing process is still under consideration
- Increase in annuity revenue from FY21
- This is an ongoing management focus area
In executing its strategy, certain trade-offs are often required. During FY22, Logicalis expanded its market footprint, both by organic growth and by acquisition. Occasionally, Logicalis enters new territories or technologies without acquisition, which is often economical in start-up but can come at much higher risk based on execution.
Decisions about trade-offs are made after careful consideration. During FY22, Logicalis undertook several acquisitions:
- Additional interests in the Brazilian-based cloud, data and AI specialist, Kumulus
- German network transformation and modernisation specialist, Siticom
- Spanish cyber security and regulatory compliance specialist, Áudea
WESTCON
Westcon International has developed its strategy according to its core values, enabling its partners and improving their business potential and performance. Westcon International’s strategic framework aims to create value for all stakeholders via five strategic foundations that define its priorities, namely: sales and growth driven; solutions portfolio; sustainable excellence; digital and data leadership and responsible business.
Westcon International aims to bring to market industry-leading fixed or wireless-based networking solutions, including unified collaboration, security, virtualisation, remote access and cloud computing products.
Westcon International will continue the model of specialisation for vendor solutions and will enhance the customer and market segment orientation with appropriately tailored propositions. It remains focused on process stability, automation and back office efficiency with an emphasis on accuracy, quality and urgency in all functions.
GOALS AND STRATEGIC FOUNDATION FY23 – FY27
GOALS
Below are the FY22 strategic objectives as published in the previous year, as well as Westcon International’s progress against these objectives:
Achieved
In progress
2022 STRATEGIC OBJECTIVE
2022 DELIVERY
Business model evolution
Define and evolve post Covid-19 business model – including return to the office and hybrid working scenarios. Maintain focus on costs and income statement returns- Established management protocols and implemented formal training for return-to-office and hybrid working in line with local regulations
- Key logistics centres in the UK, the Netherlands, the Middle East and Asia-Pacific remained open and operational supporting approved critical business needs
- Westcon International worked closely with vendor partners to ensure adequate supplies in the face of disruptions, as well as monitoring backlogs, shipments and delivery acknowledgement dates
- Collaborated closely with vendors and carriers to identify potential supply chain issues and worked to reduce their impact
- Overall cash generation exceeded internal plans
- Secured increases to all major working capital lines and negotiated net new extended payables facility in Europe – significantly enhancing overall facility availability and headroom
Partner alignment
Successful adoption of a sales commission system that enables the alignment of sales rewards and incentives directly with the achievement of specific vendor objectives- Digital commission system successfully operating in EMEA
- Asia-Pacific roll-out delayed by continued lock downs. Deployment in Asia-Pacific will be reconsidered in FY23
- Successfully rolled out customer classification and data visualisation in PowerBI as part of data and analytics initiative
- Work continues to refine these models appropriately for each sub-region
- Double-digit revenue growth achieved despite growing product supply constraints
- Overall accounts receivables ageing and days sales outstanding results improved
Solutions lifecycle
Develop, launch and implement the solutions lifecycle framework across core vendors in key markets- Westcon International formally defined and launched ebook outlining its selected model for supporting solutions lifecycle management
- Implemented Denodo and Alteryx to establish division-wide data and analytics foundation
- PowerBI launched and adopted as the single data visualisation tool across the division
Execution excellence
Positively impact productivity through continued rollout of process automation and capabilities utilising digital technologies- Year-on-year improvement in productivity ratio across the division, with further initiatives planned to drive continued improvement
Digital enablement
Continue to innovate in digital distribution platforms to enhance customer experience and vendor ecosystem- Launched program to replace existing B2B ecommerce platform with new technology. The partner-facing platforms continue to evolve in line with best practice and changing partner demands
- API use has expanded across all major global customers and key foundation vendors. The level of integration upstream and downstream continues to evolve as needs change
People oriented
Nurture internal talent while developing a positive external employer brand through advocacy of performance and values- Launched dedicated “Careers” website with brand stories supported by user stories that advocate the Westcon International’s values
- Three consecutive years of improved employee engagement and improved internal scores
In executing its strategy, certain trade-offs are often required to be made, and decisions about trade-offs are made after careful consideration of the risks and rewards present in each case. During FY22, Westcon International experienced growth and expanded its market share organically. Gaining market share, territory expansion with existing vendors or bringing new vendors to existing markets requires investment and competitive pricing strategies, which all come with a degree of risk.
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