Izodia International, the business-to-business (B2B) e-commerce solutions provider formerly known as Infobank International, has restructured its African interests.
The restructuring will see the group focusing only on the South African market, where it believes the greatest potential for e-B2B solutions lies in the short- to medium-term.
The changes are being made at the behest of the company`s new CEO, Anthony Stepanski, who assumed the position three weeks ago. Stepanski has reportedly embarked on a major initiative to preserve cash.
The most severe of the changes in SA is a cost-cutting exercise, which will see a reduced number of staff and a downsized satellite office operating out of Johannesburg. This comes less than a year since Izodia set up its South African operation in May 2000.
The local operation will move from a combined direct and indirect sales approach to a channel-focused indirect sales approach. Almost 40% of the current staff of 35 will be axed, and it`s likely that the sales team will take a direct blow.
The indirect sales strategy will be pursued through a number of channel partners. Izodia SA marketing director Prathima Naidoo says the company is in advanced negotiations with a number of channel players, and will announce these partners in about three weeks.
The technical support team remains relatively unscathed and the Izodia global helpdesk will still be run off the local operation.
Dr Douglas Boateng, Izodia SA CEO, says he is in discussions with Izodia International and will leave the company in June to pursue broader business interests that include other parts of Africa.
Bernie van Niekerk, Izodia SA COO, comments that the change will mean a less aggressive African expansion strategy. He adds that while Izodia SA was the most successful subsidiary outside of the UK last year (it contributed 14% of Izodia International`s global revenue), the long-term expectation is that such performance peaks will not be sustainable in the South African market.
Van Niekerk will also leave the company to pursue individual B2B interests.
Gavin Lourens, the present professional and technical services director, will head up the reshaped company as GM. Boateng intends to work closely with Lourens to ensure the smooth transition of leadership within the local office.
It`s believed that Stepanski feels Izodia`s investment in Africa is premature, as he considers that the most potential value lies in the US and European e-commerce markets. In line with this sentiment, Izodia announced new offices in Scotland and Amsterdam, the latter of which will serve the Benelux region.
Boateng confirms that the company`s shareholders are happy with Izodia`s progress in the African market since its launch a year ago.
The firm is responsible for the marketing, sales, distribution and implementation of the InTrade e-commerce solution across 53 countries on the African continent. Izodia delivered ProcureTrade, a joint venture between the AST Group and McCarthy On-Line. Other local users of Izodia`s e-commerce solution InTrade include Denel, AfriNet, Hewlett-Packard, Utilities Afrique and Ariel Technologies.
It is unclear how the revised strategy will affect Izodia`s pilot sites in East Africa or its plans for expansion into West Africa.
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