PROXCEL BID TO SPRUCE UP ICT ECOSYSTEM

KUALA LUMPUR (September 20, 2011): THE changing landscape of the Malaysian information and communications technology (ICT) sector spells an overwhelming metamorphosis which has not only complicated the application of technologies as a whole but it may just become one of the sectors where “leakages” of dramatic proportions take place each time a procurement is undertaken.

This procurement be it one made by the largest purchaser which is the government or the heavies in the private sector would make more business sense if a critical perspective was taken on this changing ICT ecosystem. This eco-system has become quite diverse in nature and highly competitive indeed.

Fact is there are loads of capable and innovative ICT players out there in the market place.

The question is this. Have they succeeded in demonstrating whether ICT and the technology that surrounds and supports this changing ecosystem project a real core value driver for all businesses?

Let’s take a look at the perception first and whether it is a departure from the truth, which in most cases, is the case.

The ICT and its technologies are necessary. This is an unavoidable fact. It is also an unavoidable cost. This cost would have to be carried by any company or organisation or better still the government if they want to remain competitive.

Can we change this? Why can’t we instead create a measurable value for businesses and the public sector?

Why can’t ICT exponents contribute more towards ensuring that there is sustainability on what they provide and not just look out for short term gains?

Isn’t it better to approach customer engagement from this perspective?

Can’t there be a kind of philosophy, noble as it sounds, which commands that the ICT players be more vendor agnostic.

If such a philosophy exists, it would in many ways allow the ICT players to be more business and outcome focused.

ICT players have to be competency-driven and drive value and thereby changing spending habits.

Short term pragmatists in the form, shape and size of ICT providers are not competency-active in their role of participation. It still remains that ICT and technology remain the core value drivers for all businesses.

Emerging as a business consultant who is an ICT enabler is Proxcel Sdn Bhd – a company formed from a joint venture between Felda Global and the iA Group.

The company is a fusion of the private sector’s thought-leadership and international experience harnessing from iA’s experience and expertise and the public sector’s scale and financial strength via Felda Global.

By this proportion, Proxcel can now position itself as an inclusive and collaborative partner which can fit in the shoes of such a company which focuses on consulting and technology-enabled services and playing a role as a business consultant who can in more ways than one orchestrate how things ought to be done in real ICT applications vis-à-vis the spending culture surrounding this sector.

“Let’s not spend for the sake of spending and let’s not grab a project and deliver just tangibles and at the end of the day say that we have contributed towards enhancing the ICT ecosystem,” says Proxcel Chief Executive Officer Christoph Zilian.

“In Malaysia, there is a strong project culture where product vendors are continuously proposing solutions from a single-minded perspective in making decisions.

“The decision-making processes of the government undoubtedly make an impact on the ICT providers and there is very little top down overall enterprise structure in place.

“Therefore, there is always the risk where the solution stands alone and it does not get anywhere nor does it create the value that was originally anticipated”

Christoph who was speaking live on the air in BFM’s Enterprise segment recently said that these were among the challenges which Proxcel planned to take up in its overall business approach and agenda.

A real ICT player especially those who hawk market-driven smart solutions, portals and platforms and customer oriented functionality, must be allowed to use their service integration capabilities to create a synergy between local and overseas partners.

Such a synergy, Christoph feels, must deliver seamless and best-in-class services to the client.

“We do agree that a transformation in technology is extremely important and we do recognise that one shareholder brings with them a private perspective, the knowledge and background which can be utilised for Felda’s internal requirements, said Christoph when explaining Proxcel’s role and collaboration with an organisation as large as Felda.

Financial strength aside, Christoph feels that if Proxcel was to take large transformational projects, it would also need a healthy balance sheet.

Taking a critical look at what Felda hoped to achieve by tying up with Proxcel, Christoph felt that for internal requirements, it helped to get the support on the transformational track but ultimately Proxcel has to be able to focus on its core business.

But Proxcel is more than just an ICT solutions provider.They are out to determine value by making sure the business is receiving value and therefore it is about the technology.

Christoph says Proxcel shall go all out “to provide sustainable services which create value, you should understand the customer first which many people describe this as consulting and it is what we do.”

This kind of consulting within the ICT framework of products and services actually leads to an execution which is very practical indeed and necessary to get the services needed.

Today, there is a gap and a void in this approach of consultancy and Proxcel is looking to fill in the gap between the business and technology society with Christoph having identified that there is a niche for the company to enable a type of service that creates that sustainable value.

Being an ICT enabler with a strong business sense, Proxcel is able to put forward a service delivery excellence via long term arrangements to deliver services in a consistent quality against the key performance index (KPI) of a business or government department or ministry.

“It is not about delivering a project XYZ, it is about delivering the business value over a period of time where Proxcel has people on board to focus on this field,” says Christoph.

“As far as the local ICT market is concerned, the government is the biggest spender in ICT.

“Fact is Proxcel is capable of reducing the expenditure by looking at the overall picture and we believe from a transformational perspective, Proxcel is able to help reduce the cost of the government.”

A real ICT player especially those who hawk market-driven smart solutions, portals and platforms and customer-oriented functionality, must be allowed to use their service integration capabilities to create a synergy between local and overseas partners.

Such a synergy, Christoph feels, must also deliver seamless and best-in-class services to the client.

How many of such ICT players are really committed to operational excellence in sincerely wanting to provide customers with a guaranteed quality and a price over the total duration of their service agreement?

There are many Malaysian-borne ICT players whose capabilities are at par with international ICT solutions providers.

Most of them are an attractive addition to Malaysia’s ICT landscape albeit competitive for the wrong reasons.

For the government which is highly driven by the need to “smart-up” their functionality it does no harm to be more stringent and cost-effective at the operating expenditure levels rather than dishing out “projects” and inflating capital expenditure.

These are challenging times and an ICT integrator who can lay the role of a business consultant with an ICT enabling ability can help organisations to not only transform but grow and sustain themselves.

To the systems and solutions integrators, they should instead also try and become a company focused on consulting and providing technology-enabled services.

Large enterprises and the government in particular, have to streamline its ICT capabilities by rationalising and consolidating its applications so that there is minimal leakage of unused capability in an organisation’s networks and no duplication of ICT capabilities with the systems and solutions ecosystem already created.

ICT players have to be an instrument to transform business and create value through business enabling technology.

They must deliver the best in class end-to-end services .and must position themselves to be a strategic partner to the public sector and the industry as a whole by stimulating growth areas through the innovation and technology they offer and provide the best.

The Malaysian Government for one should sit up and take notice on the real ICT players who can contribute immensely are not be taken advantage of by ICT players who desperately want a piece of the action.

This can be done without having to spend over and above what has already been spent in their capital expenditure.

Proxcel’s expertise is being able to fast-forward value-creation which comes about after consolidating a work environment and the company is bent on wanting to be a key leader in providing technology services.

“It’s all about being rational, real and relevant and Proxcel as a business consultant has set its eyes on consolidating and transforming ICT players in Malaysia by being inclusive in their approach,” says Christoph.

This challenge will see Proxcel developing technologies further and providing an ICT services’ portfolio in totality in order to keep within their mainstay in driving value and to educate the market place on how to change spending habits in ICT.