Looking at only a few of last year's highlights, it ranges from the ANC enforcing a 50% representation of women in leadership for the first time in its history, on 18 January 2013. Graeme Smith becomes the first man in cricket history to serve as captain in 100 tests on 1 February 2013. Archbishop Desmond Tutu was awarded the 2013 Templeton Prize on 4 April 2013. Iron Man 3 made history in the South African box office on 7 May 2013. Gaddafi billions are found in SA on 2 June 2013. President Robert Mugabe vows to retire if he loses the election on 30 July 2013. President Robert Mugabe wins the election by outright majority on 31 July 2013. Matthew Mole is the first South African artist to enter the local iTunes at number one on 1 August 2013. Sandile Ngcobo, CSIR researcher, developed the world's first digital laser on 17 September 2013. Former UN Chief Kofi Annan warns of serious threats emerging in Africa on 7 October 2013. Typhoon Haiyan hits the Phillipines on 8 November 2013, and one the final events to close off this turbulent year - Nelson Mandela dies on 5 December 2013.
Through all these triumphs and challenges, with a bit of entertainment in between, many ICT market leaders went through the same rollercoaster ride. In Q1 of 2013, most ICT solution-orientated businesses were in the process of project completion initiated in 2012 (which is standard practice in any successful solution/service-based business), followed in Q2 by a massive sales exercise overflowing from Q1. The "prosper pattern" was broken in Q2. What should've been a substantial ROI with regards to sales and marketing spend for Q1/Q2 turned into a dismal phase.
The quick sales became less in progression at a stage, and those opportunities with the longer sales cycles, lingering in wait for decisions to be finalised in same quarter, were to be the new larger project kick-offs for Q3 and Q4. And so many companies in South Africa experienced a "little sting", maybe not to the extent for some of the bigger brothers in order to show significant GP% increase for 2013/2014 financial year end. Some of us greenhorns felt the same pain in Q2 going into Q3, and then the skies opened!
So, what happened to some of our leading players? We can't answer that and others will speculate. These chieftains felt the pain going through intensive retrenchment processes, and as most businesses would do during such a chapter, is to slash any outlay where, when and how they possibly can! CBX MD, Michael Vorster, was asked an opinion and a little inside information on how CBX survived as a smaller player? "Our first-year strategy was to build a sales-driven entity. The years to follow we evolved into a services company to maximise revenue spend per existing customer and building the business relationship in order to provide a holistic approach on our supply and support offering. The result is that service level agreements were signed with CBX, ensuring that sustainable business strategy be well implemented when having to face strenuous sales stages or lack thereof," says Vorster.
Okay, so many larger corporations have their annuity income stream in place; what makes CBX any different in its approach resulting in one of its achiever years for 2013, while operating during such a year of challenges? Vorster continues: "Make no mistake, CBX felt the same pains of delayed decision-making in Q1/Q2, but this is where the business strategy has had to take effect months (for SMEs) and/or years (for MLEs) prior to hitting the dry season, ensuring sustainability. Keep watching as in 2014 you can expect CBX to diversify its products and services offering to the market. The expansion of CBX is inevitable and will be observed as well as felt in the market."
To end this chapter, we give two of a few tips (more to follow in the next chapter):
a. Choose your product or service carefully.
b. Know what your product is utilised for, not necessarily what it can do, and assuming your client benefits from its key value-add features. Most of the time your client does not know his product/services' full potential like you do; don't assume.
This is where the words and concepts like "solution selling" and "roadmap" become your skeleton key. Watch out for our next article on some tips to build sustainability for any business.
Share
Editorial contacts