ITWeb: Apshai is relatively new on the-commerce block. What`s the company`s background?
McHenry: Apshai has been in business for 13 months. About eight months ago, it was acquired by TCO, which was great. It was a young company, which needed the backing of a big name and JSE-listed TCO provided that. But months after that TCO was acquired by DiData. We didn`t want to be part of a big entity, it wasn`t appealing and a management buyout was imminent. We did a management buyout two months ago. DiData, of course, is a great company, but staying in that camp was not in sync with our very focused e-business passion. DiData wanted us to merge or fit in with the IS and that wasn`t what we wanted to do.
ITWeb: And where do you stand now that you are independent?
McHenry: We are financially sound, 50% owned by management, 20% by a large financial institution and 30% by a consortium of individual investors.
We have all the freedom and autonomy to do what we want to do - to build a very focused e-commerce business. Not an Internet service provider, hosting company or a card clearing company, but a real focus on implementing e-commerce solutions.
ITWeb: Many companies are also entering that space, saying that they are offering total e-business solutions. What differentiates your company`s offering?
McHenry: We are not saying it, we are doing it. We have built e-commerce sites for Sweets from Heaven and Fujitech - it`s not smoke and mirrors, it`s proven. There`s too much techno mumbo-jumbo going on about the industry. But we don`t believe that business people have to know about it. We isolate them from the technology, but we go in and understand their business and then marry it with the best solution.
ITWeb: You have a unique business model that lowers the barrier to entry for e-business. How does this work?
McHenry: We found that there`s a lot of reluctance from the business community to invest money in a yet uncharted territory. There`s still the risk and uncertainty about return on investment. So rather than extend the sale-cycle, we decided to move that barrier and do a joint, shared risk and award approach.
This has allowed us to put our money where our mouth is - we are so sure about our success that we are willing to take the risk. We take a partial payment up-front and structure a commission revenue sharing model that only allows us to recoup our investment in the development and implementation if the site is successful. It`s a business partnership.
ITWeb: Who are the strongest players in the e-commerce solutions field?
McHenry: I believe there is not a single company with e-commerce as its core business that is a clear leader. But the playing field is still very open and we intend to be that leader in a very short time.
The competition doesn`t seem to be a challenge for us. The challenge is the business community`s concern about security, lack of trust in the Internet, lack of knowledge, the confusion about techno buzzwords and the cost - the barrier to entry.
ITWeb: Do you believe that e-commerce hasn`t really grown as fast as it was expected to?
McHenry: It hasn`t and that fuelled the hesitation of the business community - and this is not unique to SA. 1998 was the year of hype and talking about e-commerce. The hype is now over and people are seriously looking at it.
ITWeb: Do you target particular industry segments with your solutions?
McHenry: We are in the process of streamlining this to become even more focused. So far, we steered away from that because we wanted to get as much experience as we can.
ITWeb: What are Apshai`s major objectives?
McHenry: We are at this point stretching our resource capability and hiring as fast as we can. We have very, very strong immediate growth plans; there`s no end in sight.
We have a very clear mission statement: to be the partner of choice for e-business solutions, the dominant player and leader in the SA market. International growth plans are also on the table.
ITWeb: Is it possible for a small player to stay independent and yet compete with the big guys?
McHenry: Size does matter from the financial stability point of view, but hosting, dial-up, leased line providers - that`s not our business. To be focused is the main thing.
ITWeb: You must be positive about the growth of e-commerce in SA?
McHenry: Absolutely. We have passed that critical mass of about 1 million users online. According to BMI-T, the largest area of investment for the next two years is intranets. The hype is now gone and it`s time to see people make money out of it. And our business model shows our confidence that companies can make money through e-commerce, because if they don`t, we won`t be in business. And we are doing quite well right now, thank you.
Apshai, a company of mythical proportions
Apshai is an ancient Egyptian, mythical name for the Primantis. The Primantis is the god of insects, therefore the god of spiders and the web. There`s also a local connotation - the Bushmen worship the Primantu, a powerful mythical creature, as their god.
Share