Denis Hodgson, the new MD of the DNS Group, has his work cut out for him as the company is changing its product-focused approach to become a service-oriented firm.
Taking over the reins from Allen Cawood, who has become MD at Dimension Data Networking, Hodgson plans to build on Cawood's vision of making DNS a service-oriented company. "We are not just a product pusher like so many other networking companies."
According to Hodgson, companies can be divided into three areas in this industry. The first is a pure box moving company. This is where most local networking companies are at today, he says. Another area is the service-oriented company where you sell specific services such as virtual private networks. The pinnacle, according to Hodgson, is that final phase, a true joint venture where one company joins forces with another on a short-term basis to provide a solution. Hodgson sees DNS as being close to entering this phase.
He believes that no company in the local market has achieved this phase yet, but notes: "We will be the first."
However, a cautious Hodgson says it takes time and a lot of work to change a company from a product-focused to service-based approach. It means changing staff perceptions and opinions, and re-training them. "You also need to approach the market differently and change the way you do business. And of course your customers are not used to this so they need to be educated as well."
This, according to Hodgson, is definitely a long-term process. He adds that to date he has received positive feedback form clients. "It's the sales people that are taking the most strain in adapting. The technical and customer service staff are making the transition far quicker."
Another crucial factor for a change like this, says Hodgson, is that of obtaining buy-in from the senior management team. "If it weren't for the buy-in here at DNS, we would not have come this far."
On a winning streak
Some of the company's biggest clients are Vodacom, BOE, Forbes and Boland Bank. "We installed the cabling at Vodaworld, Vodacom's building in Midrand," says Hodgson.
The ISP market is key this year and Hodgson is positive that the approach of giving clients what they want will help them win more deals. "We build solutions around our clients' requirements and not our own."
DNS also launched Infotel in November last year, which has created an opportunity to make inroads into the local telecommunications market, according to Hodgson. Infotel will provide communications and billing solutions to ISPs and telecommunications companies.
DNS does not have an aggressive strategy for Africa at the moment. He says the main focus is on SA, with some activities close to the border. "We have some interesting accounts in the Southern African region, such as the Botswana government and the Mozal Plant in Mozambique."
Hodgson points out that the fact that there are two networking companies in the Dimension Data stable is not an issue as the companies have a very different focus. "We seldom compete for the same tenders, especially in Gauteng. Dimension Data Networking is mainly a Cisco provider."
There is a 35% growth rate expected between the organisations this year and Hodgson says much of it will come from DNS. He adds that there is enough room for both and no need for the companies to merge.
Gains from Plessey
When Dimension Data bought Plessey last year, two divisions were incorporated into DNS - Date Networking Components and Telkom business. The results of this absorption will only become evident within the next six months, says Hodgson.
He believes the Telkom business will ensure higher revenues for DNS because Telkom will initially install and get the links up to clients' premises. "We are looking at providing a networking solution inside the companies' premises."
In conclusion, Hodgson says: "The one thing that is guaranteed in this industry is change. You have to continuously change and adapt to your customer's requirements. We believe that at DNS we are changing to meet our customers' requirements." And with 20 years' computer networking experience at companies such as ICL and PQ Networks (previously Centera), he should know.
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