Dave Lello, COO of Datatec SA, has been appointed as executive deputy chairman of Siltek, after serving as a non-executive director since Datatec became Siltek's largest shareholder in April 1999.
After the position comes into effect on 1 May, Lello will retain his e-commerce responsibilities for the Datatec group.
We wanted the dominant position in the market, so we used our cash and made numerous acquisitions, and are now at least two times as large as our nearest competitor.
Dave Lello, COO, Datatec SA
Lello says Siltek's strategy is to move away from the traditional channel model to become a supply chain expert. "Distributors in the traditional sense of the word are fast disappearing," he notes. It is the new market players that drove Siltek's consolidation spree last year, which saw MMW, One Technology Group, Datatec Workgroup and others joining the Siltek fold.
"We wanted the dominant position in the market, so we used our cash and made numerous acquisitions, and are now at least two times as large as our nearest competitor," says Lello, who admits that channel conflict is an issue for Siltek.
Responding to the question as to whether Datatec will enjoy a strategic advantage over other IT service and product vendors in the market due to the relationship, Lello says the role will most likely be reversed.
"Datatec will assist Siltek with its skills," he explains. Affinity Logic and Destiny, among other Datatec ventures, will be leveraged to deliver the Siltek.Com strategy. Since Datatec has owned 24% of Siltek for over a year, other Siltek partners should not be concerned, says Lello.
"When we announced our new, all-encompassing e-business initiative Siltek.Com earlier this year, we pointed out that the new dynamics of the e-economy requires more than online facilities for ordering, inventory enquiries, order tracking and proof of delivery," says Siltek CEO Rob Matthews.
Lello believes the South African IT channel will not allow a monopoly situation to develop. "Vendors split their relationships between different vendors."
He says his position in Siltek will most likely be as a strategist looking at new business opportunities, and adds that Matthews will remain responsible for day-to-day strategic decisions in the company. Lello will continue serving on the boards of Destiny, Affinity Logic and Metropolis.
Dr Dudu Kunene remains non-executive chairman of Siltek while former deputy chairman, Tony Leng, takes up a non-executive position on the board but retains executive responsibility for the final disposal of Siltek's remaining non-core assets. This process is expected to be completed by the end of June 2000.
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