Issue 18.indd - Altech Group
Transcription
Issue 18.indd - Altech Group
THE OFFICIAL JOURNAL OF THE ALTECH GROUP JANUARY - MARCH 2013 l ISSUE 18 ALTECH’S FINANCIAL RESULTS 2012 09 WE CHAT TO LAURENCE SAVAGE 10 Altech Group COO gives us an insight into what makes him tick CHANGING THE FACE OF INFORMATION TECHNOLOGY 16 Altech Talk chats to Dr Steven Shepard ALTECH MULTIMEDIA SCOOPS TT100 AWARD 27 Altech Multimedia acknowledged for excellence in research and development A PARTNERSHIP REKINDLED Arrow Altech Distribution reignites relationship with Microchip 33 ntents FROM THE CEO’s DESK 4 THE STRATEGIC UPDATE 6 ALTECH AUTOPAGE CELLULAR DONATES TABLETS 8 ALTECH’S FINANCIAL RESULTS 9 A message from Craig Venter R600 000 leap for maths and science NO PEOPLE, NO DIFFERENCE 10 SAKE24 REWARDS ALTECH WE BID FAREWELL TO PETER WATTRUS 12 TECH TALK 13 AN INTERVIEW WITH DR STEVEN SHEPARD 16 LEADING THE COMPLIANCE RACE 19 THE ALTECH GROUP’S WORLD CLASS FACILITIES 20 ALTECH’S PARTNERSHIP WITH HUAWEI PAYS DIVIDENDS ALTECH ENTERS THREE-YEAR CONTRACT WITH SAPS 22 ALTECH NETSTAR CONTRIBUTES TO RECORD BREAKING RIBBON 23 Altech Talk chats to Laurence Savage: Altech Group COO A technology partnership for the future Technology - a catalyst for change Altech Card Solutions is now PCI DSS compliant Altech Netstar doing their part for HIV/AIDS NEW GROUP APPOINTMENTS 24 ntents ALTECH ACADEMY STUDENT BREAKFAST Inspiring students who received tertiary bursaries ALTECH SIYABONGA AWARDS Acknowledging dedication to the group ALTECH MULTIMEDIA RECEIVES TT100 AWARD Rewarded for excellence in research and development LEARNING FROM START-UPS Strategising and embracing technology ALTECH AUTOPAGE CELLULAR BIDS FAREWELL TO PAPER AAPC eliminates all paper from its retail outlets 25 26 27 28 29 MOBILITY IS CHANGING CUSTOMER RELATIONSHIPS 30 ALTECH NUPAY EYE OF AFRICA PRO-AM 31 SPARKING INTEREST IN ELECTRONICS 32 Using customer behavior to improve customer relations Amateurs and professionals tee off together Arrow Altech Distribution introduces scouts to modern electronics A PARTNERSHIP REKINDLED Arrow Altech Distribution reignites a relationship with Microchip 33 MOBILE PAYMENTS MADE EASIER 34 ETHICS - THE FOUNDATION FOR GOOD BUSINESS PRACTICE 35 CASH IS OLD SCHOOL Altech NuPay’s OneTouch Schoolz Card is the easy way to pay 36 HOW TECH START-UPS ARE CHANGING BUSINESS 37 STAFF COMPETITION 38 Altech NuPay launches NuPayMe mobile payment solution Read, enter and stand a chance to win! FROM THE CEO’S DESK A MESSAGE FROM CRAIG VENTER, CHIEF EXECUTIVE OFFICER: ALTECH On 1 March this year, Altech’s new business structure came into effect. The leadership team decided the change was necessary for two reasons. First, we need a structure that can best drive Altech’s strategic business growth areas. Second, the successful disposal of Altech’s direct interests in the East and West African operations has left us with a business that is different than before and needs a fresh approach. The new structure will support our business strategy focus on TMT (Telecommunications, Multi-media and Electronics, and Information Technology) and the convergence of these sectors. Here is how we will be operating in future: 4 • Telecommunications – This structure consists of Altech Autopage Cellular, Altech Netstar and Altech Radio Holdings (Altech Alcom Matomo, Altech Radio Distributors, and Altech Fleetcall). With the disposal of Altech East Africa, the Converged Services and Connectivity structure will fall away. • Multi-media and Electronics – This structure remains unchanged with Altech Multimedia, Altech UEC and Arrow Altech Distribution. • Information Technology – This structure consists of Altech Isis, Altech Swisttech, Altech Card Solutions and Altech NuPay. • Altech West Africa will no longer form part of the Altech structure as Altech has sold its shareholding in this operation. Business Development – This new structure was formed to drive the future growth initiatives. New businesses and/or technologies that will drive the future business will be housed in this structure, until they have been developed into fully integrated businesses. The following businesses/projects will form part of the Business Development structure: o Altech Project Purple – A strategic converged solution that will contribute to future growth opportunities for Altech. o Altech Eyenza Mobile Money – This is a mobile money platform that will provide unique pre-paid billing services for users. o Huawei – Altech concluded a value added partnership agreement with Huawei Africa, a world leader in the telecoms and IT industries, to distribute their enterprise product and service offerings. Tim Ellis, currently group executive: converged services and connectivity, will take direct responsibility for the Business Development structure. This will be in addition to his current group responsibility for the Altech Radio Holdings business. The general manager of Project Purple, Marius Marais, as well as the general manager of Altech Eyenza Mobile Money, Johan van der Westhuizen, will report directly to Tim. Due to the strategic importance of the Business Development cluster, Tim will report to an Altech Management Committee consisting of: Craig Venter – CEO Altech Dr Willie Oosthuysen – CSO / CTO Altech Laurence Savage – COO Altech Dr John Carstens – CFO Altech Johan Klein – Group Executive: Corporate Services For day-to-day operational matters, Tim will report directly to Willie Oosthuysen. I am convinced that the above changes to Altech’s business structures will contribute to the future growth of our group. I urge all of our employees to give their full commitment and support to this endeavor to drive the success of the business. I also want to congratulate Tim on his new responsibility, and wish him much success. On the sustainability path Our new business structure aims to ensure a long and prosperous future for Altech. This is in harmony with the Sustainability Strategy that was launched by Altron in January this year. Far from being an add-on to business-as-usual, the four focus areas of the Sustainability Strategy go to the heart of how the group conducts its business. Here is a summary of the four business facets covered by the Strategy: 1. Financial Sustainability Core objective: improve profitable revenue growth through expansion. Focus areas: • Income and growth • Cost and cash management By managing economic, social and environmental risks and opportunities, we drive sustainable, profitable growth. Our commitment to address shareholder needs, maximise profits and minimise consumption of resources, is the foundation of our commitment to financial sustainability. We are committed to deliver innovative and sustainable products and services to customers. This is our blueprint to providing improved financial and social benefits to our stakeholders while minimising our impact on the environment. 4. External Relationships Core objective: build and maintain strategic alliances and key partnerships. Focus areas: • Clients and customers • Strategic partners • Suppliers • Environment • Corporate social investment Building and sustaining relationships with all stakeholders and caring for the environment are part of our identity. All our initiatives, strategies and engagement processes form the foundation of our external relationships. Altron, and Altech, has always followed a sustainable approach – there is no other way for a company to remain in business for so many years. But a company as big and as aggressively growing as ours, cannot rely on unwritten rules – we need the formal structure for the next phase of our journey. The document we now have has crystallised and formalised the way in which we have been operating for almost five decades. Now, more than ever before, we have to think differently and act decisively to embrace the challenges we are faced with. Our Annual Results On 25 April 2013 we announced our annual financial results for the year ended 28 February 2013. Highlights of the results included the fact that we had sold our loss-making East and West Africa operations, that we had added a Business Development Division within the group to anticipate and address future growth opportunities, and that our partnership with Huawei was beginning to pay off particularly with respect to the contracts we had secured with the Passenger Rail Agency of South Africa (PRASA) and the South African Police Service. 2. Human Capital Core objective: invest in our biggest asset – our people. Focus areas: • Transformation • Human resources (core skills development, staff retention, succession planning) • Company culture The key to our success lies with our people. Sustainable human capital highlights our commitment to train, develop and empower our employees. Through the growth of our people, we prosper. 3. Products and Services Core objective: lead through innovation by embracing technology and market shifts. Focus areas: • Innovation • Product and service offerings While we did report a net loss on our revenue, it is important to note that we are now beginning with a new slate after two years of losses mainly due to the poor performance from our East and West Africa operations. Already our order book stands at more than R1bn for the new financial year and it is important that we now focus more than ever on the future. This will require hard work from all employees within the group, but I am confident that with our five year growth plan for growing revenue we will see a better set of results in August. Thank you for all your efforts during the first three months of this calendar year. They do not go unnoticed. I wish you all the best for a productive and sustainable three months until we meet again on the pages of Altech Talk. Craig Venter Altech CEO 5 THE STRATEGIC UPDATE The rise of the CEO consumer: are we ready? DR WILLIE OOSTHUYSEN Chief Technology and Chief Strategic Officer: Altech Technology is shifting the balance of power between corporates and their customers. The more we know about them, the more they know about us. Advertising used to be something of a dark art. Men in ponytails hatched creative concepts in smoke-filled rooms. They dazzled the grey-suited rest of us with talk of positioning, touch points and above, below and through the line campaigns. The impact of their work was seldom immediately measureable, and by the time sales data and customer survey results were in, the campaign had run its course. Increasingly, however, technology is introducing science into the art of advertising. The days of looking backward four times a year to correlate sales with a few dozen advertising and consumer variables, are well and truly over. These days, the world’s biggest multinationals are employing analytics 2.0 – a set of capabilities that can chew through terabytes of data and hundreds of variables in real time. Instead of a murky polaroid, analytics 2.0 allows a company to create an ultra-highdefinition, 3-D picture of its marketing performance at any given time. Enabled by exponential leaps in computing power, cloud-based analytics and cheap data storage, these predictive tools measure the interaction of advertising across media and sales channels. They can identify precisely how external influences, such as the 6 economy, competitor offerings and even the weather, affect advertising performance. By mining their big data to adjust advertising strategies on the fly, companies can get between 10% and 30% more value out of their existing marketing budgets. This iterative process is akin to consumers “training” companies to change their advertising practices. One such change relates to the nature of mobile advertising. Almost everyone has a mobile phone. Therefore adapting your print or electronic adverts for a mobile device makes sense, right? Wrong. Research shows that display adverts do not work well on mobile devices, mainly because users don’t like them. How then to leverage the mobile opportunity? The answer is to offer consumers value. And for mobile users, value equals applications. Users spend, on average, 82% of their mobile minutes with applications, and just 18% with web browsers. Instead of buying tiny banner adverts, marketers should develop apps that add value to consumers’ lives and enhance long-term engagement with their brands. To win consumers’ trust, companies have to think less about what they want to sell, and more about the value they can add to the consumer. If not, the consumer tunes out. The potential for this dynamic, where consumers set the tone for advertising, has always existed, but until recently a lack of alternatives and the means to “punish” and “reward” advertisers prevented it from becoming reality. Increasingly, however, consumers can choose between multiple services and products. And technology is handing them the power to exercise those options. Enter the CEO consumer. The flip side of the marketing coin These days companies know more than ever before about their consumers, but the same is true for consumers. By sharing their experiences on social media, consumers are closing down corporate hiding places. made available in machine-readable formats. This, in turn, gives rise to choice engines that can interpret this data. These choice engines make it easy for consumers to compare complex offerings, such as insurance policies, mobile device contracts and banking options, and make informed decisions. An example of a choice engine at work is BrightScope, an American company that uses data that employers have to submit to the United States Department of Labor to grade retirement plans. The company now reviews and analyses over 45 000 different plans, calculating and publishing a single numerical score for each one. It also publishes distribution rankings for funds, allowing asset managers, companies and individuals to see how their plans compare with other options. The value of private-company disclosures is not limited to pre-purchase decision making. Legislation such as the Consumer Protection Act and the imminent Protection of Private Information Act, increasingly hand consumers control over their data that is in corporate hands. Reward and loyalty programmes record consumer behaviour meticulously, but until now the consumer had no way of accessing his or her own data. Understanding your own purchasing and behaviour patterns is hugely empowering when it comes to changing your habits to more cost-effective patterns. In an era where consumers are demanding information and taking control of their spending, the single biggest threat to companies is dishonesty. Trust and reputations will stand or fall by companies’ willingness to disclose information – both about themselves and what they know about their customers – truthfully and transparently. Access to smarter information creates smarter consumers who know more and demand more. Customers look for companies that will disclose information that gives them, as potential shoppers, more decision-making power. In fact, these savvy consumers could know more about your organisation than you know about them as customers. The driving force behind the age of the CEO consumer is not so much the massive amount of information that is available. More importantly is the rise of technology that empowers consumers to use the information intelligently. Following are just three examples: 1. Social media platforms allow people to participate in extremely targeted discussions. LinkedIn, for instance, has a group where BMW drivers can discuss service experiences. It becomes a research resource for someone either looking for a new car or shopping around for a dealer. 2. The digital nature of content creates rich media. People share text, video, audio and images at the press of a button. When they want to complain about a dirty store, they don’t send a letter to management, they post a picture on a social media platform. 3. The proliferation of intelligent mobile devices that are easier to afford and use. As a result, the number of empowered consumers increases exponentially, and with them, the number of conversations they are having about your organisation. One of the most dramatic developments in terms of consumer empowerment, are so-called choice engines. The January/February 2013 edition of the Harvard Business Review ascribes the advent of choice engines to a combination of modern technology and changing government policies. The results, it says, is that increasingly government-owned data and private company disclosures will be The fact of the matter is that ultimately companies will be punished in real time for poor service or non-performance. Customers will have the power and the ability to switch immediately from one provider to another. Already there are mobile phones that can take four different SIM cards, allowing the user to switch between service providers depending on network performance. What does this mean for Altech (and others)? The nature of our business places us at the heart of the technology revolution. We are well-positioned to drive and facilitate consumer empowerment through the set-top box software Altech UEC writes, the tablets and smartphones Altech Autopage Cellular supplies, the websites Altech Technology Concepts develops, and of course the channels we have that give us direct access to end users. It also means that consumers have more data about us as a company, the same way that we leverage information about them to target specific customers with certain products. We need to continue to deliver quality products at affordable prices to the market. Only then will we be ready to service the new breed of consumer and business. We can also not afford to stay behind our competitors in understanding and analysing structured and unstructured data sources about our own products and markets. Big data, the concept of understanding, analysing and using huge volumes of data about customers, the markets and trends to make instant decisions, will be a very important focus area for Altech going forward. This will allow us to be successful in the ever-evolving world of informed consumers. 7 Altech Autopage Cellular p forr matthss and d scieence R600 000 leeap in their future career and being agents of change in their community. co This is only possible with the generous support of o our funders and partners,” says Kirstin O’Sullivan, external relations manager for LEAP Science and Maths Schools. AAPC is committed to responsible corporate citizenship, as is demonstrated by its previous education initiatives. The TRAC programme, for example, provided 10 schools The 2013 academic year started on a high note for teachers and students at the LEAP Science and Maths school in Ga-Rankuwa. Altech Autopage Cellular (AAPC) donated 113 HTC tablets to the school to encourage teaching and learning. “Education is the cornerstone of economic growth and development. This principle is embedded in the Altech Group’s CSI policy and reflected in the choice of investments we make,” says Jessie Makhudu, senior manager for transformation at AAPC. The LEAP investment is in line with AAPC’s CSI strategy to contribute towards bridging the digital divide among previously disadvantaged communities and enable innovative learning in the classrooms. “The use of information and communication technology in education should not only focus on providing computer literacy, but also to encourage learners to read and write.” “At LEAP we are working hard to provide children from township communities with access to quality education so that they have the best chance of passing matric with maths and science, achieving success 8 around Tembisa with 25 laptops each plus 12 months free access to the Internet. More recently Boitumelong and Tembisa secondary schools were the first of five schools to receive the Streetwise Solution. The Solution consists of 30 information terminals with compact keyboards and screens with a user-friendly text-based interface, offering email functionality and connectivity to online reference material. This includes encyclopedias, email, current news, curriculum-based worksheets and a host of other learning tools from reputable content developers. AAPC views this as a R1-million investment in a generation of engaged and empowered young people. “Information technology has a direct impact on South Africa’s economic competitiveness. Therefore, our goal is to contribute toward creating a generation of pioneers that can contribute toward our economic growth and development for the betterment of our future for generations to come,” concludes Jessie. Altech’s Financial Results The Altech Group’s annual results for the financial year ended 28 February 2013 were announced on Thursday 25 April to Altech management, the analyst community and the media. Financial highlights for the year were as follows: • Revenue • EBITDA • EBITDA margin • Operating profit before capital items • Operating profit margin • Profit before tax (excluding capital items) • Loss before tax (including capital items) • Adjusted HEPS • Return on shareholders’ equity • Annuity Income R10.4 billion R765 million 7.3% R548 million 5.2% R414 million R1 044 million 290 cents 31.5% 82% Altech Group CEO Craig Venter said at the time that while the group’s revenue increased, operating profit was lower than that of the prior year mainly due to losses incurred in Altech’s operations in East and West Africa. However, with the disposal of these operations, he was confident that the Altech Group would again return to its normal pattern of profit growth as a result of a renewed focus on the company’s remaining assets. “On the whole, our operations in South Africa and some international operations performed well despite continuing adverse economic conditions. With the operational challenges in East and West Africa having been resolved, I am confident that the Altech Group will again return to its normal pattern of profit growth as a result of a renewed focus on our remaining assets and the innovation strategies that we are putting in place. Over the past 16 years the group has been acquiring and building a strong and competitive portfolio of businesses in the Telecommunications, Multi-media and Information Technology space. We are now in a position to unlock value from innovation and convergence through these assets, and enhance our activity base by further exploiting our intellectual property,” said Venter. Broad results for the four divisions within Altech were as follows: The Telecommunications and Wireless Communications Division, which consists of Altech Autopage Cellular – including Altech Technology Concepts – and Altech Netstar, performed as expected with the Altech Netstar Group increasing total revenue for the period to R1.04 billion – despite operating in a market characterised by declining revenues per vehicle. Altech Autopage Cellular saw a slight dip in revenue from the prior year due to the continuing decline in average revenue per user (ARPU), driven by increasing price competition among networks. However, improvements in internal processes and customer service had a mitigating effect on the increased price competition. However, a number of significant contracts concluded during the second half of the year will see positive results in the future. This included a R119 million contract with the Passenger Rail Agency of South Africa (PRASA) and a R196 million three-year contract with the South African Police Services. The Altech Stream East Africa Group, which formed part of Altech’s international converged services division, continued to suffer significant losses during the financial year. The Multi-media and Electronics Division, which consists of Altech Multimedia (incorporating Altech UEC) and Arrow Altech Distribution, performed exceptionally well for the period. Growth in Altech Multimedia was achieved across all lines of business (consisting of devices, support services and system integrated solutions), both in Africa and internationally. Revenue increased to R1.8 billion, with Altech UEC South Africa and Altech Multimedia Europe being the top performers. Despite an excellent performance in 2012, Arrow Altech Distribution experienced a decline in revenue during 2013. To mitigate the risk of short product cycles and the rapid development of substitute products, Arrow Altech Distribution has been focusing on streamlining their demand creation initiatives this year, resulting in an increase in design registrations which will result in market share growth in the next financial year. The business concluded three new supplier agreements with Murata, Cinterion and Microsoft during the year and received the Conlog Supplier of the Year Award for the second consecutive year. The Information Technology Division, which consists of Altech ISIS, Altech West Africa, Altech Card Solutions, Altech NuPay and Altech Swisttech, performed as expected, with the South African businesses showing good results, while the West African business was sold with effect from 28 February 2013. Altech Card Solutions and Altech ISIS were the most significant contributors to operating profit, while Altech Nupay performed well following accelerated growth in unsecured lending. Altech Eyenza Mobile Money’s e-Wallet solution was launched during the year under review and the business had signed up a number of affiliates. Of strategic importance in this division was Altech’s ability to increase its presence in the payment industry, positioning the group as a significant player in this field. The Converged Services Division, which consists of Altech Alcom Radio Distributors, Altech Fleetcall and Altech Alcom Matomo, saw a decline in turnover as a result of delays in the awarding of tenders at major customers. This was further exacerbated by disruptions related to the unrest in the mining and transport sectors. 9 NO PEOPLE, NO DIFFERENCE Contrary to what his surname may suggest, Altech’s new COO appreciates the subtleties of business, and of life. Laurence Savage is adamant: “Use the word ‘people’ when you refer to the individuals working at Altech, not ‘staff’.” It is clear that he dislikes the word. “Companies aren’t made up of staff. They are made up of people who are committed and want to make a difference. When people give our business as little as 10% discretionary effort, the competitors can’t touch you. Your dreams and goals become unconquerable. None of this is possible when people think and act like staff.” Laurence sees people as the cornerstone of a company’s success. Everything that sets a business apart from its competitors – reputation, intellectual property (IP) and relationships – are all in the hands of our people. In Altech’s case, he has firsthand experience of the value our people add. “I’ve done business with this company for more than 10 years, and the one thing that has always stood out for me, was that Altech keeps its word. As the primary contractor on a job that required a total solution I could always commit to deadlines based on Altech’s for a client, cl promises. I was never disappointed or embarrassed.” Some of the promise pro contracts co ontract Laurence refer to have been running for as long as 12 years. “It is rare to come across such sustainability in this day and age. To me, this to Altech’s core values.” thi is speaks spe I don’t lik like ke receiving rec surprises and I don’t like delivering them. Invariably issues isssues can be either solved or mitigated long before they become major challenges. This with and confidence in Altech convinced Laurence to Th his experience exp aaccept the position as Altech’s COO. He was aware of the company’s challenges in East and West Africa, but believed those paled in challe comparison to solid bedrock businesses and sound fundamentals com that provide substantial runways into the future. th Solutions unlock sustainability S According to Laurence, the ICT industry sees Altech as a A trustworthy and long-term relationship business. People take tr ppride in exceeding customer expectations by delivering quality pproducts. “Whenever problems occur, management is prepared to deal with the situation and believe me, for a customer, that makes all the difference!” m A cornerstone of Altech’s reputation is its entrepreneurial spirit and willingness to challenge the norm and this evidently s eemanates from its roots as a family business. Combined with ttechnical excellence, the company has what is needed to offer truly integrated solutions to its market. “Many people talk about t hhaving a solution-based mentality, but in most cases it is nothing more than jargon they use when they run out of things to say,” m is Laurence’s opinion. “Two or three products bundled together don’t don make a solution. You need to link appropriate products into the customers’ business in such a way that productivity and efficiency improve. Only once you have established a strategic effic partnership with a customer where you are contributing value to par 10 improving that customer’s cost of sales, reducing his expenses and delivering productivity and efficiency improvements, can you talk about a solution.” In addition, excellence in one sector can be transferred to others. South Africa’s banking industry, for example, rates among the best in the world and many other businesses are directly or indirectly linked into the technology that supports the financial institutions. Guiding Altech to deliver integrated solutions that can be scaled is one of the key objectives Laurence has set for the future. Arguably the biggest opportunity, however, lies in the fact that South Africans are quick adopters. “Take payment mechanisms as one example. I haven’t had a cheque book for the last 10 years and I can’t think of anybody I know who still uses Anybody can buy machines and buildings and equipment, but only the one. New entrants to the banking and lending sector people in the business hold the cards that secure customers, procure have shown us just how open the market is when you good value and secure decent returns for stakeholders and investors. understand your customers and are willing and able to meet their needs reliably and securely.” Is there a market? It is one thing to have the solutions, but is there a market in the current economic conditions for what Altech has to offer? Laurence is confident that the answer is yes. “South Africa is fortunate in that many of its consumers do have discretionary spend available, unlike Europe and to a lesser extent America, where the tough economic cycle has affected a far broader spectrum of the population. This gives the ICT industry the opportunity to claim a sizeable share of the consumer’s wallet.” The ever-changing nature of the ICT industry ensures continuous opportunity. “The industry keeps on reinventing itself. Thirty years ago people still used pagers, today we conduct most of our financial, entertainment and social interactions over a mobile device. I don’t believe that’s where it will stop. Apps were a foreign concept five years ago, now we can’t live without them.” Does our new COO have a favourite tech toy? “I use the golf weather app a lot,” he admits, demonstrating how online and offline worlds enhance each other. Laurence the family man Laurence met his wife Karin in the Sudwala Caves – “Where else for a savage!” They have been married for 24 years and have two sons. Patrick (17) is a swimmer and enthusiastic golfer, while Andrew (15) is following in his father’s long-distance running footsteps. “I am extremely proud of them. They achieve what they set their minds to and as a result they can really become anything they want to.” Laurence turned his focus to directorships of listed companies and ways to extract top-notch financial results. “During the last 10 years or so, I’ve refocused again, this time on turning companies in trouble around and acting as a change manager who can extract the best out of a business.” He feels that the broad spectrum of experience he has accumulated thus far positions him well for the challenges g of his new position. p When not working, Laurence thoroughly enjoys playing golf and expanding his saxophone repertoire. “It started as a bit of a joke four years ago when I was given a saxophone as a birthday gift. It’s a difficult instrument to master and I can only play 12 songs, but it is great fun.” Laurence has an engineering degree and an MBA, and completed an executive programme at Northwestern University in Chicago. “I loved the Americans’ focus, drive and project mentality. They almost live life like a project.” In Laurence’s own life, he believes in directing his efforts towards achieving goals. “For me it was never so much about advancing my career, as it was about the milestones I’ve set myself, both personally and professionally.” The nature of those milestones has evolved over the years. In his 20s Laurence pursued sporting achievements, including running sub-2.45-hour marathons and paddling 10 Dusi canoe marathons. Professional success took precedence in the following decade as Sampie Pienaar, Managing Director: Altech NuPay; Norman Mshaba, PGA Pro; Bert Griesel, CEO: Bairds and Laurence Savage, Chief Operating Officer: Altech. Sake24 rewards Altech Proudly displaying the Sake24 award for the company with the best content in their annual report for 2012 is Janine van Eden, Group Company Secretary: Altech. We bid farewell t o Peter Wattrus Peter Wattrus, financial director at Altech Autopage Cellular, has announced his retirement after a long and illustrious career in the Altech stable of almost three decades. During his time with Altech, Peter touched the lives of many Altech employees who viewed him not only as a strong and capable leader, but also as someone who could be confided in. We wish him and his family all the best for the future. Boyd Chislett, Managing Director: Altech Autopage Cellular and Craig Venter, CEO: Altech bid farewell to Peter Wattrus. 12 TECH TALK Dr Willie Oosthuysen, Chief Technology and Chief Strategic Officer: Altech Altech and Huawei: a technology and solution partnership for the future Great companies, like Altech, are capable of great innovation. When they partner with other great companies, the outcome can Our visit to the Huawei headquarters, which is more like a university campus than a corporate head office, was nothing short of eye-opening. be phenomenal – particularly for consumers and enterprises in South Africa. Where other tech companies use such a space to highlight their equipment, Huawei’s is all about innovation. One can walk around all day, looking at technologies and solutions being developed. And this is what we expect to result from our strategic partnership with Huawei, the Chinese technology company that is leading the world when it comes to innovation in the telecommunications and networking space. I am writing this article from Shenzhen in China, on my third trip to our technology partner Huawei, joined by Craig and I quickly realised that our relationship with Huawei could be about much more than routers and switches – and so it is that Altech has forged a wide-ranging partnership with the company. a group of senior executives from the various Altech companies. There are three streams to this partnership: lines of business and technologies to service providers, enterprise customers (and SME) and Already Huawei touches the lives of all of us, often without us consumers. even realising it. All of our cellphone service providers use Huawei networking hardware, for example, which is of world-beating standard and much more cost-effective than its major international competitors. Also, there is virtually not a 3G card or dongle in this country that has not been manufactured by Huawei (and then white-labeled – I’m willing to bet that if you haven’t looked closely at your card yet, In the service provider space, Huawei is now the undisputed world leader, having in the past few years overtaken some of the world’s best-known technology brands. When it comes to technologies such as optical transmission, wireless access, routing, switching and security for service-provider clients, Huawei sets the pace. This is only to name a few. Huawei also innovates and specialises in Data Centre technologies, storage area networking, wireless access, Ethernet switching, IP routing, you should do so and you’ll notice the Huawei name.) IP telephony and many other areas. One area that is of particular interest, which was also the topic of the last few issues of this article, is Last August, Altech CEO Craig Venter and I visited the Huawei Cloud Computing, how to enable it, and how Huawei and Altech can take headquarters in Shenzhen, China. Shenzhen, located just north of Hong Kong, is one of China’s five Special Economic Zones and home to some of the country’s most successful high-technology companies. It is, thus, a hotbed of innovation – led by firms such as Huawei. solutions jointly to market. And it does so at prices so competitive that service providers have little choice but to consider its products. The cost differential is such that if your competitors buy Huawei technology, then so should you, if you wish to remain viable in the marketplace as a telecoms operator. 13 The enterprise aspect of our partnership – such as wireless access, Here’s another example, which will benefit banks in their efforts to handsets, storage, servers, telephony, enterprise routers and switches and the like – is a relatively new area for Huawei, which would normally either go directly to the service provider market, or unlock local expertise in specific markets by entering into partnerships. This is what was initially envisaged with our partnership, but we have expanded it to combat ATM bombings: an automated security and surveillance solution that could effectively put the kibosh on this scourge. include the consumer and service-provider streams. to mention risks to life and limb. A solution to this problem requires a preventive element, as well as quick response to possible on-theground incidents. Banks realise their liability for others’ losses, such as damage to shopping malls due to ATMs being blown up on their premises, not Tech By employing a geofence security solution, the area around an ATM would be electronically monitored around the clock. By taking into account parameters such as time of day, the number of people in the monitored area and their behaviour, the security application would be able to send an alert, take photographs of people’s faces (and use facial recognition technology), and link with the armed response teams of security services such as Altech Netstar. Health and safety in mines is another area where our partnership could leverage technology well. A straightforward example would be The potential for innovative end products in this stream is massive; by marrying Huawei and Altech’s technologies, as well as Altech’s local knowledge and relationships, we can bring unique solutions to the marketplace, which will translate into greater efficiencies and expanded offerings, as well as savings, greater choice and unheard-of convenience for consumers. For example, Huawei has developed an application that has the potential to revolutionise the way we do banking: a mobile kiosk that incorporates technologies such as touch screens, document scanners, telepresence video at affordable price levels, and scanners that read both hands and veins – thus introducing a new layer of personal identification security. What Altech brings to this solution is access to our major banks’ back ends, allowing for our partnership to offer the an automated system that uses counter lines and camera technology to monitor who goes underground and who re-emerges. As soon as there is a discrepancy, management can be alerted that someone is unaccounted-for and swift steps can be taken to locate the missing person. Consumers, too, stand to benefit from our partnership with Huawei, such as in the mobile phone market. At present, South Africans have little in the way of choice when it comes to handset and call cost options. Huawei has also developed a range of telecommunications products that are world-class – and cost a fraction of the products made by famous brands such as Apple, Samsung or BlackBerry, for which South Africans fork out top dollar (and swallow hard). banks a complete, fully operational package. By introducing a high-quality multi-SIM Huawei cellphone to the market, A consumer would then be able to do all his or her regular banking consumers would be able to access more than one of our networks on a single instrument – obviating the need for multiple handsets, and cutting out costly interconnect fees by allowing them to call from the without entering a bricks-and-mortar bank branch. He or she would even be able to electronically order a card, be issued with it on the spot and promptly use it to withdraw funds. How’s that for a solution that beats anything out there right now, and one that holds enormous promise for the majority of South Africans, who are either unbanked or underserved by the banking sector? Of course there is also mobile banking and mobile wallets, but that would be the topic for our next edition. 14 network of their choice (or availability). Now imagine being able to buy a package that includes an Androidpowered Huawei cellphone, tablet and fixed-line handset (of course, fitted with Altech Autopage SIM cards), for the cost of a single Apple iPhone 5. Immediately, consumers are offered a great deal more choice, and connectivity like they could never have imagined, and that at a price that will suit the pockets of so many more South Africans than With this solution, social grant payments could even be regulated to is the case at present. the extent that recipients could be limited to spending their grant on things for which it is intended, such as food and clothing – which means Huawei has recently introduced the 7-inch and 11-inch tablets, powered by Android as well as a new P2 smartphone. Be on the lookout for these innovative devices that promises to change the way we think our taxpayer rands are more effectively utilised, and recipients are substantially better off for it. Government, too, would be able to glean a much clearer idea of how grants are being used, through efficient about tablets. monitoring. It is technological possibilities such as these, created by the partnership between Altech and Huawei, which excite me tremendously. They represent not just a win-win scenario for the two groups, but in actual fact a win-win-win scenario – because for consumers they mean much greater choice and convenience, much better connectivity with their world, and lowered costs that break down the barriers to entry to the 21st Century for so many people. The Altech-Huawei partnership has been identified as one of our largest growth opportunities for the Group, providing access to multiple new technologies, at the correct quality and affordable prices. One should be watching this space for some great news on very large infrastructure projects that Altech and Huawei will jointly provide to the South African Huawei’s telecommunications innovations also have the potential to market. We have already tested and can now showcase some of these technologies at the new HQ building for the Altech Group. We enrich existing solutions, as well as offer new ones. In a country such are using Huawei technologies in our enterprise building. End-to-end as ours (and, indeed, on the African continent), moving money around can be a risky and expensive proposition for many people. Cellphone banking and money transfers have been the response to this situation, but most are linked to specific banks and cellular service providers, in solutions such as VOIP, IP telephony, cloud-based solutions, IP video, Telepresence, video conferencing, wireless access, and many more can now be seen and experienced at our new building. This has been made possible through leveraging the Altech-Huawei partnership, and the process limiting consumer options and convenience. technology solutions delivered through Altech Autopage Cellular. But with e-walleting integration linked to a bank-agnostic debit card, consumers could enjoy scores of e-wallets on a single handset, This is a true showcase of latest technologies. And that truly is phenomenal. revolutionising banking, money transfers, pre-paid electricity, airtime purchases and much more. Personal risk is lessened as people do not have to carry cash with them and they pay less in terms of costs such as transaction fees. 15 He is a fellow of the Da Vinci Institute for Technology Management of South Africa, a member of the Board of Directors of Champlain Community Television, and a member of the Board of Trustees of Champlain College in Burlington, Vermont. He is also the Resident Director of the University of Southern California’s Executive Leadership and Advanced Management Programs in Telecommunications, and adjunct faculty member at the University of Southern California, the Garvin School of International Management (Thunderbird University), the University of Vermont, Champlain College and St. Michael’s College. So that’s the official version. We asked him some questions to try to find out a little more: Can you tell us a little about yourself and your career to date: I’ve been very lucky in the sense that my career has taken an amazingly non-linear path from where I started to where I am today. The bio says what bios are supposed to say, but here’s the real story. When I was 13 years old my father was transferred to Madrid, Spain, where I lived until it was time to go off to university. As a result of that childhood I fell in love with languages (I speak seven of them), travel (I visit about 70 countries every year) and culture (the soul of any country). It’s also what got me interested in writing: I’m a storyteller. I have written more than 60 books and hundreds of articles, and I also do a lot of commercial photography. I actually started my professional life as an underwater cinematographer and SCUBA instructor. I owned a diving business in California for many years, something that fed my interest in biological sciences as well as my love of teaching. Dr Steven Shepard: Technology – a catalyst for change In March, the Altech Academy, in conjunction with the Da Vinci Institute for Technology Management, hosted a seminar on “The Changing Face of Information Technology”. The seminar was presented by Dr Steven Shepard and we caught up with him to find out a little more about the man behind the information. The official biography is as follows: Steven Shepard is the president of the Shepard Communications Group in Williston, Vermont, and is also a professional author and educator with 24 years of varied experience in the telecommunications industry. He received his undergraduate degree in Spanish and Romance Philology from the University of California at Berkeley, and his Masters Degree in International Business from St. Mary’s College. He spent 11 years with Pacific Bell in San Francisco in a variety of capacities, including network analysis, computer operations, systems standards development and advanced technical training, followed by nine years with Hill Associates, a world-renowned telecommunications education company, before forming the Shepard Communications Group. 16 Can you explain the connection between Spanish and Romance Philology and IT? You’re assuming, of course, that there is a connection! I have always loved the natural world, especially the ocean. So when the time came to declare a field of study I opted to enroll in marine biology as a professional pursuit. However, as I said earlier, I love languages because of my upbringing, so I also got an undergraduate degree in a field called Romance Philology with a specialisation in ancient Spanish. Philology is the study of the origins of languages; Romance Philology is the study of the origins of Romance languages, of which Spanish is one. What is your South African connection – how did you come to be part of the Da Vinci Academy? I met Roy Marcus and the Da Vinci team in early 2004 because of my affiliation with the University of Southern California, where I am a professor and the director of a number of executive leadership programs. Da Vinci was looking to forge alliances with other schools around the world and because of my strong interest in the global marketplace (and especially Africa) I jumped at the chance to work with the school. Da Vinci and I hit it off immediately and I’ve been affiliated ever since in a variety of ways. What excites you about South Africa and what makes you nervous? This is a great question. If you look at a map of California, you will see that in the centre of the state there is a large inland valley called the Central Valley. That valley is the agricultural heart of California – and to a large extent the entire United States. But here’s the interesting thing: If that valley were a country, it would be the seventh-largest economy in the world among all nations! That’s how important it is. Yet California’s central valley is dwarfed by the central valley that runs down the spine of Africa, from the north central highlands of Uganda and Kenya all the way to South Africa. That African Rift Valley is many, many times the size of California’s valley. The message? Africa could feed the world. I believe that South Africa is in something of a pole position, and finds itself in a rather unique place: because of the country’s advanced technology base, robust business environment, relatively open and democratic government and forward-looking philosophy, I believe that South Africa stands alone as the country that can lead all of Africa to a new beginning, to a place where the rest of the world looks for ideas about innovation, promise, and hope. I don’t choose these words lightly: I mean what I say. Roy Marcus at Da Vinci is always teasing me because it seems as if every time we get into a discussion about innovation or technological advancement and a particular product or concept comes into the conversation, he points out that it originated in South Africa. The amazing thing is that more often than not, he’s right. My belief is that education in a country like South Africa is the breaker of chains, the thing that eliminates all barriers between the status quo and the desirable future that beckons. Organisations like the Da Vinci Institute, which uniquely focus on the practical application of knowledge with an eye toward growing sustainable business rather than simply on the academic pursuit of knowledge, lie at the heart of this success formula. What specific challenges do you believe South Africa faces when it comes to technology? Not as many as you would think. Similar to most countries, the telecommunications and IT infrastructure are struggling in South Africa to keep up with the demands of the market, but that’s actually a good problem to have. Far more impactful, I believe, is the legacy thinking that pervades many of the legacy companies in the greater tech industry as well as in government – especially regulation. This is by no means unique to South Africa, by the way. It is a serious problem, however. in the world and stayed there for many, many months – not because it was such a great book, but because it had a great message. And when I actually saw those implications in my consulting work around the world, it really hit me that this technology stuff was important. So I was well into my 40s by the time I reached that stage! What was your first computer, and what was the first thing you made it do? Ah…a great question. I bought my first computer in 1984 – a Mac. Now here’s the fun part: I still have that computer, almost 30 years later, and it still works. It boots in about 30 seconds and still does about 90% of what I want a computer to do! You say information technology is changing – how is it changing and is this a good or bad thing? Instead of a world where technology drives business, today, business drives IT. It has become a force for transformational change that yields analytical and collaborative capability. It is a world where decisions are made by the executive team including sales, marketing and the CEO instead of IT leadership. It is an environment where the vision is provided by such executives as the Chief Trends Officer or the Chief Analytics Officer, not just by the CIO or CTO. It’s a world where the output is not technology services, but rather business services that enable the enterprise. Finally, it’s a technology environment where the infrastructure is shared and virtual rather than fully dedicated. What should companies be doing to keep up with the changes – not just IT companies, but also companies which sell non-related products? They should study their customers and recognise that customers are now in charge, not them! Can you talk a bit about where these changes will lead us? What further changes do you foresee? An easy answer. These changes will take us to a place where technology, in all its many forms, will become a catalyst for business success rather than a means unto itself. Based on research that I was intimately involved in a few years ago, we learned that the impact of technology is extraordinary – and life-changing. For example, based on a study we did about the developing world, we found that if the penetration of mobile telephony – not Internet, not broadband, just simple phone and text – is increased in-country by as little as 10 percent, the gross domestic product of that country goes up by as much as two percent. That’s extraordinary! Take communications and connectivity into the far reaches of a country and watch as education, healthcare, economic growth and transparent government accelerate in terms of their level of deployment and acceptance. At what age did you first realise IT was your passion or area of interest, and what made you realise it? It was purely by accident – certainly not because of a plan on my part. In 1998 I published a book called Telecommunications Convergence. It focused far less on the technology itself than it did on the implications of the technology – social, economic, competitive. The book became the number one best-selling technology book From left to right: Professor Roy Marcus, Chief Executive Officer: Da Vinci Institute; Craig Venter, Chief Executive Officer: Altech; Dr Steven Shepard and Johan Klein, Group Executive: Corporate Services and Operations. 17 The Altech Academy in partnership with the Da Vinci Institute recently hosted a seminar called The Changing Face of Information Technology that was presented by Dr Steven Shepard from the United States of America. Delegates arriving for the Technology seminar at the new Altech Head Office building in Woodmead. Attending the Technology seminar are Robbie Venter, Chief Executive: Altron and Neil Kayton, Chief Executive Officer: Powertech. Dr Steven Shepard entertaining and baffling delegates with his innovation theories. Sitting in the front row of the seminar are from left to right: Robbie Venter, Chief Executive: Altron; Laurence Savage, Chief Operating Officer: Altech; Neil Kayton, Chief Executive Officer: Powertech; Dr Willie Oosthuysen, Chief Technology and Chief Strategic Officer: Altech; Alex Smith, Chief Financial Officer: Altron. Networking after the Technology seminar are Laurence Savage, Chief Operating Officer: Altech and Johan Klein, Group Executive: Corporate Services and Operations. 18 Altech Card Solutions leads the compliance race Altech Card Solutions has become one of only a handful of payment service providers in South Africa to be certified as compliant with the Payment Card Industry Data Security Standard Version 2 (PCI DSS). PCI DSS is the global data security standard adopted by payment card brands. PCI security standards are technical and operational requirements set by the PCI Security Standards Council (PCI SSC) to protect cardholder data. The standards apply to all entities that store, process or transmit cardholder data, and has been endorsed by all the major card brands, namely Visa, MasterCard Worldwide, Discover Network, American Express and Japan Credit Bureau (JCB). PCI DSS is designed to protect credit card users and merchants against fraud, as its requirements protect the transaction process as well as cardholder information. It consists of critical steps that mirror security best practices. Altech Card Solutions (ACS) followed the three-step process of: assess, remediate and report to achieve PCI DSS compliance. “In the assessment phase we took an inventory of our IT assets and analysed our associated business processes,” explains ACS Key Account Manager, Henry Minnaar. “We rectified any deficiencies in the remediation phase and finally submitted a report to all our stakeholders. Trustwave, our qualified security assessor and provider of information security and compliance solutions, performed the validation.” Chris Dewe, General Manager: Integrated Transaction Solutions (a division of Altech Card Solutions); Dennis Kriedemann, Qualified Security Assessor: Trustwave; Derek Chaplin, Managing Director: Altech Card Solutions. Altech Card Solutions believes that PCI-DSS compliance is one of the most effective data security regulations today. It has a positive effect on information security and can significantly help companies improve their data security posture. 19 THE ALTECH GROUP’S WORLD CLASS FACILITIES Altech Head Office - Woodmead Altech Card Solutions - Linbro Park Altech Head Office - Woodmead Altech NuPay - Alberton Altech Fleetcall - Centurion 20 Alte ech UEC - Mt Edgecombe, KwaZulu Natal Altech Netstar - Midrand Altech Autopage Cellular - Midrand Altech Autopage Cellular - Midrand Arrow Altech Distribution - Jet Park, Boksburg Altech Radio Holdings - Woodmead 21 Altech’s partnership with Huawei starts to pay dividends On the 28th of March 2013 Altech and Huawei announced that they had jointly secured a significant contract to the value of R119 million excluding VAT, with the Passenger Rail Agency of South Africa (PRASA), to provide digital signalling network technology for South Africa’s major metropolitan areas including Gauteng, Durban and Cape Town. In essence, technology controls the movement of trains to ensure that they operate efficiently while improving passenger safety. “This technology will give management ‘eyes’ on the rail tracks, allowing them to monitor the movement of their trains … to determine when it’s safe to proceed, and when to stop,” says Tim Ellis, Group Executive Business Development Division. Traditionally, this type of information was collated through the deployment of expensive fibre-optic cables or copper wire running the length of the entire rail network. Theft of copper wire along rail networks, which provides the backbone of vital communication between rail controllers, has in the past resulted in disaster. (GSM-R) technology will be wireless and will eliminate the risk of “down time” caused by interruptions to the communications infrastructure. “This will be the first time that GSM-R technology will be deployed in southern Africa,” says Tim, adding that it is already widely used in Europe and in other industrialised nations. In addition, this project will result in significant new job creation, skills transfer and new learnerships. The deployment of the GSM-R technology is one leg of the recently announced PRASA infrastructure development plan. “The project will also benefit several small, medium and micro enterprises,” he adds. Tim says the technology that Huawei – lead partner in the joint venture – and Altech will provide eliminates this risk. The GSM-Rail Altech enters into three-year communications contract with SAPS Police operations in Gauteng have received a major boost with the closing of a three-year contract with the Altech Group to maintain and upgrade the SAPS TETRA radio network in the province. Altech subsidiary Altech Alcom Matomo will be responsible for providing Motorola two-way communications equipment, upgrading the TETRA infrastructure, software, and ongoing maintenance of the radio network. This contract is to the value of R196 million (excluding VAT and subject to options from SAPS). Good communications are critical for the South African Police Service to do its work properly and efficiently. Officers on the ground need to be in constant communication with their stations via in-vehicle and handheld radios, using a network that is always secure and reliable. TETRA provides them with that platform, but it is essential that the network is up to date, well-maintained and serves their requirements. “This is where Altech comes in, to ensure that officers in Gauteng have the communications resources they require at all times,” says Tim Ellis, Group Executive Business Development Division. Already, the contract, which was signed at the end of 2012 by Deputy National Commissioner Lieutenant-General Dr AL Mofomme, has delivered an order to Altech for hardware and software upgrades and monthly network maintenance. 22 Tim mentions that he is immensely proud of the foresight and bravery demonstrated by the police Commissioner and the department’s commitment to implement a world class infrastructure to maintain law and order. “It is unrealistic to expect our police service to address crime on its own. Just as police officers on the ground need the active support and assistance of the public to address and prevent crimes, so SAPS as an organisation needs the unwavering support of the private sector to meet its infrastructural and operational requirements. The Altech Group is thus thrilled to become a partner of SAPS, and have the opportunity to offer world-class expertise and service to our men and women in blue in Gauteng, South Africa’s commercial and industrial heartland. By providing them with the communication tools they need, and ensuring that the TETRA network is fully functional at all times, we are an active participant in efforts to make the province a better and safer place for all its citizens, and that truly is something to be proud of,” Ellis says. Altech Netstar contributes to a record-breaking ribbon Hundreds of volunteers joined Afrika Tikkun, Constitution Hill and the Johannesburg Junior and Mini Council in Johannesburg on World Aids Day to create what is believed to be the longest HIV/AIDS awareness ribbon in the world. An Altech Netstar helicopter hovered overhead as more than 6 000 donated red T-shirts were pinned together to create a 1.5km-long HIV/AIDS awareness ribbon. It was 500m longer than the previous record. The ribbon has yet to be ratified as a new Guinness World Record. A bird’s eye view of Constitutional Hill in the Johannesburg CBD. Constitutional Court Judge Edwin Cameron, one of South Africa’s most prominent openly HIV-positive citizens, spoke on the day and said that although the disease is now easy to treat and manage, the biggest problem still facing HIV-positive people is stigma. “Stigma is condemnation, rejection, ostracism, moralism and isolation. Why is there stigma? Probably, I think, because in most cases HIV is passed on through sex. And we feel embarrassed and ashamed when a natural, loving, affirming act of bodily connection turns out to have transmitted a possibly fatal infection,” said Justice Cameron. The Justice, who has been on HIV treatment for the past 15 years, concluded his speech by saying: “We South Africans, we Africans, have suffered too long and too terribly under this epidemic. Its grief and fear lie deeply in our hearts. It does not have to be so. This World AIDS Day 2012, starting with you and me, let us begin to make it different.” The HIV/AIDS ribbon initiative was intended to create awareness and encourage people to know their status, in order to prevent the spread of the disease and manage it effectively. The T-shirts for the event were donated to the communities where Afrika Tikkun works. Afrika Tikkun is an NGO that delivers education, health and social services for children, youth and their families through its community centres of excellence. Their aim is to produce a new generation of productive citizens, a noble aim that is made possible by the support of strategic partners, including Altech Netstar. The 1,5km-long red ribbon being laid out in support of HIV/AIDS awareness. Shown smiling and enjoying the day are hundreds of volunteers who pledged their day in support of the HIV/AIDS awareness ribbon day. 23 New Group Appointments Marius Marais, General Manager: Project Purple Marius has been appointed General Manager for Project Purple at Altech Management Services. Marius holds a Masters of Business Administration (Cum Laude) and a Bachelor of Business Administration with Honours from the University of Stellenbosch. He also obtained a Diploma in Datamatrix (Computer Science) from UNISA, and a National Diploma for Technicians (Light current) through the Technicon of Witwatersrand. Marius Marais His role and responsibilities will include the daily running of Project Purple in the Altech Group. Before joining Altech, Marius was employed as Group Operations Executive and Group Digital Executive at Avusa. In his free time Marius enjoys his membership of the Rotary Club (PP), scuba diving, amateur radio operations, recreational jogging and walking. Willem Rossouw, Group Network Architect: Altech Willem has been appointed as Group Network Architect at Altech Management Services. Willem holds a National Diploma in Computer Systems from the Vaal Triangle Technicon. Willem Rossouw Willem will be responsible for supporting the Altech Group’s strategy pertaining to efficiencies and projects in the IT sector, also for gathering business requirements and objectives, providing blue prints for architectures and products, communicating the relevant information clearly to stakeholders and advocating for the necessary investment necessary to execute effectively. Additionally, he will be contributing to the building of new Information Technology business ventures. Before joining Altech, Willem was employed as a Consulting Systems Architect and a Consulting System Engineer at Cisco, as well as Network Engineer for Persetel Qdata Networks. In his free time Willem enjoys camping, off-roading, hunting, reading and running. Marilet Branders, Junior Market Research Specialist: Altech Marilet has been appointed as Junior Market Research Specialist at Altech Management Services. Marilet holds a B.Com Strategic Management Honours degree as well as a B.Com Entrepreneurial Management degree from the University of Johannesburg. She will be responsible for research to strategically drive, differentiate initiatives and to create a competitive advantage within the Altech Group. Marilet Branders 24 In her free time she enjoys triathlons, trail running, surfing, scuba diving, cooking and spending time with family and friends. Altech Academy Student Breakfast The information technology, telecommunications and innovations industry has become increasingly reliant on This year’s breakfast saw 19 students attending, who are all enrolled in the various disciplines such as Information Technology, Computer the skills of young talent for the sustainable development of these industries. It is for this reason that Altech hosts a Student Academy Breakfast once a year in order to Sciences, Engineering and Finance. At the completion of their degrees, the students receive a two year employment contract with Altech, and the opportunity to implement and grow their knowledge in a business introduce and inspire the various students the Group identified for bursaries in tertiary institutions. setting. A university education does not have value in itself; its value only emerges when the graduate starts applying his or her knowledge and skills in the workplace and the broader society to add value to it. The Altech Academy Bursary Scheme is therefore a talent-based scheme aimed at attracting and retaining outstanding individuals. Preference is given to candidates with an exceptional academic record and those individuals who display the potential and the ability to contribute to the success of the Altech Group once they have completed their studies. Given these selection criteria, it is safe to assume that Altech attracts some pretty impressive young people each year. Amongst the honorary guests at this year’s breakfast was Dr John Carstens, Chief Financial Officer: Altech seen here mingling with some bright young minds. Nineteen Altech Academy Bursary students were invited to the breakfast this year. Addressing students on 31 January 2013 at the Altech Academy Student Breakfast was Altech CEO Craig Venter who himself holds a number of university degrees. 25 The Altech Siyabonga Awards are presented to employees within the Altech Group to acknowledge dedication, delivery above and beyond the call of duty, and consistent, professional conduct for others to aspire to. The individuals that Altech would like to honour and thank are… DECEMBER 2012 JONATHAN BILLINGS: CLIENT LIAISON OFFICER – ALTECH AUTOPAGE CELLULAR Altech Autopage Cellular launched a new concept in their showroom six months ago to offer technical and device support to customers. The intent was to pilot the concept for a short period to understand the potential value it could offer. Jonathan was employed to fill this position and in the six months since implementation has performed this function exceptionally. He performs this function on his own with no support and often has clients queuing to see him, some will wait for over an hour just to speak to Jonathan. He has received numerous customer compliments as well as internal nominations through Altech Autopage Cellular’s internal stars of excellence program. Most days Jonathan does not take lunch as he does not want to let his customers down. This, along with everything he does, exemplifies the right attitude and positivity that we encourage all staff to have. Laurence Savage, COO: Altech and Craig Venter, CEO: Altech congratulate Jonathan Billings. It is with pleasure that we award the December 2012 Altech Siyabonga Award to Jonathan for going beyond the call of duty. JANUARY 2013 CHRIS KNICKLEBEIN: ALTECH ISIS Chris has once again gone above and beyond for Altech ISIS and the client. The issues which we encountered over December were replicated in January by an upstream system, and this destroyed the client’s OIS system’s financial numbers. Once again Chris spent long hours and weekends fixing the data and reloading OIS to make sure that the December month-end was corrected. After he had fixed the data and had reloaded the corrections, Vodacom Operations started their month-end process before all the data had moved into the publish area. This caused all the work he had done to be corrupted. He once again worked weekends to rectify this without being asked. Laurence Savage, COO: Altech and Craig Venter, CEO: Altech congratulate Chris Knicklebein. 26 At the end of January OIS set their QA flags within SLA for the first time in years. Before Altech ISIS took over OIS from Vodacom they had not achieved their month end SLA. While this might be taken as an “expected” achievement, we need to also take into account that OIS is being decommissioned in two months. This is what makes Chris a worthy recipient of this award. Not only did he put in the long hours, hard work and exceed the client’s expectations, but he did it on a system he is being moved off. That speaks volumes for his work ethic, attention to detail, being a team player and most importantly having pride in what he delivers. We are pleased to award the January 2013 Altech Siyabonga Award to Chris for meeting SLA and also for the extra work he has put in to get the client’s OIS system to the position it is in currently. FEBRUARY 2013 INNOCENT NDLANGISA: AFRICA SUPPORT ACCOUNTS MANAGER – ALTECH MULTIMEDIA On 17 January 2013, Innocent secured R1 million profit in a single accessory product sale for the company. GDL was tasked by their CFO, Mr Charles Reeves, to secure the R1 million extra to its annual profit target for the year and this has now been achieved. Innocent has recently completed the Accounts Manager course at the Altech Academy. In addition to the R1 million profit, Innocent has ensured an additional R2.7 million profit through accessory and material sales for repairs by year end and has displayed skill and care in managing the in-warranty fund payments to Africa in a manner that has saved the company R5 million on 1,131 warranty provisions. This is a total company contribution of R8 million from one individual and a GDL support team diligently applying themselves to serve the company. We are pleased to present the Altech Siyabonga Award for February 2013 to Innocent for his outstanding Laurence Savage, COO: Altech and Craig Venter, CEO: Altech congratulate Innocent Ndlangisa. achievement. Altech Multimedia wins TT100 award Altech Multimedia has been acknowledged by its peers as a leader in business excellence. At an event hosted by the Department of Science and Technology in Johannesburg, Altech Multimedia received a Technology Top 100 award for excellence in research and development. The TT100 programme recognises South African companies that have developed a culture of technological innovation and excellence. The programme is one of the foremost business awards programmes that celebrate and honour South African companies for their business proficiency in the management of technology, innovation, people, systems and research and development. In 2011, Altech Multimedia was awarded a TT100 award for Excellence in the Management of Systems. In 2012 the company again rose to the challenge and pocketed the award for Excellence in Research and Development. Altech Multimedia was also a finalist in four other categories, namely: Management of Systems, Management of Innovation, Management of People and Management of Technology. Technology Top 100 trophies on display before the awards ceremony. Alan Sullivan, CTO of Altech Multimedia, and Dr Willie Oosthuysen, CTO of Altech, were at the event to receive the award. Alan had this to say: “We face fierce competition in the global market, but strong leadership and the tenacity of our employees enable us to consistently perform. Winning a TT100 award is a great honour for us and we look forward to building on this achievement in the years to come.” 27 Enterprises can learn from start-ups about adopting new technology Compared to smaller start-ups, established enterprises are often more risk averse and slow to embrace new technology – often much to the chagrin and frustration of some of their gadget-toting employees. In order to help enterprise strategists compare their company’s use of technology against that of competitors, and help them decide when, how and where to adopt new technologies, Gartner has created a framework that classifies enterprises according to their technology adoption profiles. The classification considers an enterprise’s willingness and strategies to embrace technology, and whether the strategy is adequately funded and supported by management. Gartner is the world’s leading information technology (IT) research and advisory company. to use their personal mobile devices for business – thereby ensuring mobility and, in some instances, increased productivity – more cautious enterprises might hold back due to security concerns. They worry about whether their company’s systems will be breached, leading to theft of information or data. This is a perfectly valid concern.” However, Anton notes that there are many instances where enterprises ought to take the lead from start-ups. “A good example is how start-ups are using the cloud as well as more modern, open source software, tools and processes. Enterprises are often stuck in a rut with expensive, unwieldy software for which they have to pay costly annual licensing fees. Being progressive and switching to customised solutions will be far more cost-effective in the long run.” “Technically aggressive” companies are well-funded and use IT to keep abreast of competitors. According to Gartner’s system, they are Anton says that competitors might usurp those enterprises that are too slow to embrace new technology. “With technology changing so rapidly, Type A enterprises. Type B enterprises – the category that includes the majority of enterprises – are mainstream IT users with adequate funds that use IT for productivity. The Type C’s are the most risk averse and we realise it can be daunting to find something that best suits your enterprise’s particular needs. Altech ISIS has a customised offering designed to assist clients to run their businesses better through the technologically conservative, and carefully control their IT expenditures. more effective use of technology. Through our ability to adapt to local conditions, we will help you to adapt your company to stay cutting-edge and ahead of the competition.” “The more conservative enterprises often have a legitimate reason for not wanting to be so quick to embrace specific tech trends, such as the new Bring Your Own Device (BYOD) culture that more tech savvy startups are latching onto,” says Anton van Heerden, general manager of Altech ISIS. “Risk aversion is not always simply about an unwillingness to spend money on IT. While start-ups might encourage employees 28 Altech Autopage Cellular changes the face of telecoms by bidding farewell to paper Altech Autopage Cellular (AAPC) is changing the face of South African telecommunications by eliminating paper from its retail outlets. “As of 1 February 2013, we operate in a paperless environment to make the sign-up process more convenient and to offer our customers a faster, better and more environmentally friendly service experience in our stores,” explains Boyd Chislett, managing director of AAPC. design team incorporated international best practices into the build, ensuring that the stores have the right equipment to log information only once and store it securely. All documentation is available electronically and is legally compliant. The added benefit for customers is that personal documentation, Traditionally, the mobile telecommunications industry has been paperbased due to the vast amount of compliance documentation required. such as identity documents, will be kept electronically. This means that existing customers, who have utilised the paperless process once, won’t have to bring a stack of documentation on a return visit. The move to a paperless system significantly reduces customer activation waiting times as there is no need to convert written analogue information into a digital format. Additionally, contracts are emailed to a subscriber, so there is no need to leave the store with reams of paperwork. AAPC’s customer service team can also log into the system should a customer have any queries, negating the need for the customer to return to the store to resolve an issue. Convenient and secure, the system will comply with the In addition, the AAPC franchisees will save on printing, courier and scanning costs; savings which are being funneled directly into improving the customer experience. The move to paperless greatly benefits the subscriber, the company and the environment. “Our customers now enjoy a faster, more accurate and more convenient experience, since there is no need to print and sign sales documents. Upgrading an existing contract can be done with a few clicks,” Protection of Personal Information legislation that will likely be passed during the course of 2013. “This is but one of the many innovations we are planning in order to improve the overall customer experience,” says Boyd. “In the coming months we will truly differentiate ourselves as a first class provider of digital telecoms solutions.” elaborates Boyd. “Converting our distribution channels to paperless environments is increasing the efficiency of our sales staff, eliminates the risk of lost documentation and decreases storage space. Not to mention that we’re saving quite a few trees in the process.” After reviewing the numerous technologies available to implement a paperless solution, AAPC built the Altech Autopage Sales System. The 29 Mobility is changing customer relationships Emerging technologies have enabled companies to collect, store and analyse customer information in ways that have greatly improved their ability to attract and retain customers. Effective customer relationship management (CRM) is now possible by using analytical techniques to implement customer treatment strategies based on predictive modelling that draws on a wealth of data about customer behaviour. According to a new report from Forrester Research called Mobile is the New Face of Engagement, a power shift happens when a billion people use mobile devices to engage with brands, information and each other. Mobile apps empower customers, partners, and employees wherever they are. People can serve themselves in the moment to accomplish a task like check a status, find an expert, receive an alert, make a purchase, answer a question, share an opinion or send a message. This has had a massive impact on CRM strategies and results and, consequently, on how companies are working. “The access and convenience of mobile apps and devices shifts more power from institutions to individuals than did the PC or the Web,” says Anton van Heerden, general manager at Altech ISIS. “The adoption levels and growth projections of mobile devices and investment are staggering, and companies that ignore this phenomenon do so at their own peril.” According to the Forrester research: • One billion consumers will have smartphones by 2016. • Apple, Google and Microsoft will be the software platform for more than 90% of smartphones and tablets worldwide. • Carriers will compete for wireless spectrum and to support 5.8 million public Wi-Fi hotspots globally. • In 2016, 350 million employees will use smartphones — 200 million will bring their own to work. He adds that this isn’t as difficult as one might think. “Building these relationships just means treating your customers and clients like true strategic partners and showing them that you care about them. It’s important to satisfy them with the right products and services, supported by the right promotion and making it available at the right time and location. Customers can easily detect indifference and insincerity and they simply will not tolerate it. Long-term client and customer loyalty is a long-term goal that you must pursue every day and with every transaction, no matter how big or small.” “Altech ISIS has helped a number of organisations to implement CRM. We are seeing fantastic benefits both in better and stronger customer relationships, and in the ‘stickability’ of how long customers are staying with their chosen service provider.” • Smartphones and tablets are valuable enough at work that employees will buy their own. • Mobile spend will reach $1.3 trillion as the mobile apps market reaches $55 billion in 2016. Key to this is a mind shift to “systems of engagement”. These, Forrester says, “are different from the traditional systems of record that log transactions and keep the financial accounting in orde: They focus on people, not processes.” • Tablet and smartphone apps, even at an average price of $2.43, will grow explosively to $56 billion in 2015 as first-time Anton says that CIOs need to rethink their roles, responsibilities and skill sets within their IT organisations – much as they did with the advent of the personal computer. “An effective CRM strategy that takes this technological shift into account will lead to improved customer satisfaction, lower service costs through customer self-service, increased business productivity, lower internal costs, and significant new revenue sources. And that will result in a future of profitable growth.” device owners tap into the wealth of innovative apps. • The spend on mobile will reach $1.3 trillion globally by 2015 — 35% of the technology economy. • Business spending on mobile projects will grow 100% by 2015. “This indicates that with smartphones and tablets becoming the platform of choice for consumers and businesses alike, companies around the world should be looking for new ways to engage customers via their mobile devices,” Anton says. “Starting with creating conversations with 30 customers and prospects on social networks, companies should build, nurture and develop customer relationships through every avenue available to them.” THE ALTECH NUPAY PRO-AM GOLF TOURNAMENT Seccond Ann nual Eye e of Africa Pro o-Am m On an overcast and cool Highveld morning, golfers from all over Gauteng gathered for the second annual Eye of Africa Pro-Am Golf Day. As a result of the roaring success of last year’s event, Altech NuPay decided to again host the event at the Eye of Africa Golf and Leisure Club on 25 February 2013. The event started last year with a field of 15 professionals and 45 amateurs. This year the response was so overwhelming that the field had to be enlarged to 100 players (25 professionals and 75 amateurs). the amateurs, there was also a R25 000 purse for the professionals. After all prizes were handed out, golfers were able to socialise with the professionals and each other during the prize-giving dinner. Altech NuPay would like to thank all the personnel at the Eye of Africa Golf and Leisure Club for their assistance on the day as well as The PGA of South Africa. Golf, and sport in general, has always been very close to our hearts at Altech NuPay, as is evident in the various sponsorships we are involved in to develop the youth in our community. When the prospect presented itself to again partner with the exclusive Eye of Africa Golf and Leisure Club in growing the only pro-am golf day in our area, we grabbed the opportunity without hesitation. Altech NuPay’s invited guests, business associates, partners and clients not only had the opportunity to play with seasoned professionals, but it also presented the opportunity to introduce Altech NuPay’s newest product offerings to local businesses and business owners. The Golfers arrived to flying Altech NuPay banners and smiling staff welcoming them. After registration, a peak into their arrival gift bags and putting on some sunscreen for the merciless Highveld sun (even though some were fooled by the overcast weather – they definitely felt the effects the day after!), they climbed into their golf carts to see who would emerge victorious. Even though it was one of the windiest days this summer, the golfers exhibited skills worthy of the PGA! After a superb day’s golf, Paul Marks emerged victorious. As part of his prize, Paul became the second recipient of the coveted White Jacket donated by Altech NuPay last year. In addition to the other exciting prizes for Sampie Pienaar, Managing Director: Altech NuPay, hands over the the coveted White Jacket to winning professional, Paul Marks. 31 Arrow Altech Distribution A sparks young scouts’ interest in electronics The Senior Scout Adventure takes places every alternate December in and around the scenic Cederberg Wilderness Area in the Western Cape. It combines a challenging hiking programme with outdoor activities aimed at youngsters between the ages of 15 and 18. The 2012 Adventure hosted about 400 scouts over 10 days. At intervals along the hiking trails, the scouts visited bases, staffed by volunteers, where they exercised their outdoor knowledge or learnt new skills. The Electronics Base was visited byy 152 scouts who had chosen to hike the toughest of the three circular routes through the rugged Cederberg mountains. The three-hour activity at the Electronics Base introduced the Scouts to the art of electronics and gave them an insight into the workings of modern electronic equipment. The scouts left the base with a working device that they had assembled themselves. For the past three Adventures, Kinetic Electronicc Designs (KED) has been responsible for the design gn and preparation of the project kits. “The kits have ve typically included about 30 leaded components, nts, PCB, battery and mounting- and enclosurerehardware,” says Andrew Spencer of KED. “Our aims ims include teaching the scouts the basic principless of circuit operation, component identification and the skill of THP soldering.” Previously, budget constraints limited the complexity xity of the Adventure projects to torches, radios, an LED digital compass and a digital voice changer. This year, due to the generous assistance of Arrow Altech Distribution (AAD) and other contributors, the Electronics Base presented the scouts with a kit to assemble a fully-functional GPS receiver. The receiver’s features included the display of location, altitude, satellite signal strength, time and the routing from current location to any of 10 user-programmable waypoints. 32 Steph Schoemann, AAD’s Cape Town Stephen branch manager, was instrumental branc in ensuring that the kits could be e produced within the allocated budget. prod AAD supplied the GP 1604A-S1 9 volt batteries, Clover CV4162D-MYSF-N6 SF- 2x16-line backlit LCD display modules, ATmega88PA-PU 8Kb 8-bit mo microcontrollers and Navman Jupiter mi J3-L J3 GPS modules that were used in the project. Stephen also spent several days at the base, assisting se with w the training of the scouts in assembly techniques (and cooking a up a delicious braai for the staff!). The project was only unveiled at the start of the Adventure and bowled over both visitors to and bo participants in the Electronics Base activity. The scouts were amazed that they could create such a useful device from a packet of components. The Adventure organisers were extremely interested in the possibility of making use of the project and technology at future events. In the post-Adventure polls, the scouts voted the base, its staff and the activity into overall first place. Arrow Altech Distribution picks up old family ties In 1992, Microchip Technology appointed Pace Electronic Components, an Altech subsidiary, as its first distributor in South Africa. This month, more than two decades later, the relationship between the two companies has been reignited through a distribution agreement between Arrow Electronics and Microchip Technology (Microchip). This global agreement includes Arrow Altech Distribution (AAD) as one of Arrow’s operating companies. AAD will be locally supported by Microchip’s representative Willem Hijbeek. According to André du Preez, general manager: supplier marketing and business development at AAD, the team is both delighted and excited that the relationship with Microchip has been renewed. “It feels like a family being reunited after a long absence.” Twenty years ago, Altech launched and developed the market for Microchip’s famous 8-bit microcontrollers and user-friendly development tools. “Microchip has since expanded its product range significantly, high level of confidence in Arrow Altech Distribution’s expertise, infrastructure and ability to support Microchip’s broad product line in South Africa. The company is ideally placed to serve the South African electronics market in which they are extremely well established.” which will strengthen our line card and solutions offering to our broad customer base,” elaborates André. The new agreement includes Microchip’s complete line of 8-bit and 32-bit PIC® microcontrollers, About Microchip Technology analog and interface semiconductors, wireless solutions and memory Microchip Technology is a leading provider of microcontroller, devices, along with related development tools. During a recent trip to South Africa to launch the appointment of AAD analog and Flash-IP solutions. It provides low-risk product development, lower total system cost and faster time-tomarket for thousands of diverse customer applications as a Microchip distributor, Norbert Siedhoff, Microchip sales director for Europe, expressed his company’s admiration for the South African business. “Arrow Altech Distribution’s corporate culture emphasises worldwide. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. its own success and that of its customers and partners. We have a Willem Hijbeek: Microchip SA; Norbert Siedhoff, European Sales Director: Microchip; Steve Drehobl, Vice President MCU8 Division: Microchip; Andre du Preez, General Manager: Arrow Altech Distribution. 33 M MOBILE PAYMENTS MADE EASY M WITH NUPAYME W NuPay Nu the exc exciting opportunity to simply add NuPayMe to c their current product offering. Merchants, who are not yet ye registered for POS, can now register for POS and NuPayMe at the same time and will be able to transact before you can say – NuPayMe! Me PO S Pay Me Valu e: ber Car d Num : CVV : Altech NuPay has always strived to be at the forefront of payment technology and in recent ent years our merchants have enjoyed the fruitss of our labour through the availability of a facility ty to process real time payments using a Point-of-Sale -Sale (POS) terminal. Being an innovative company that is constantly looking for the “next frontier of innovation” vation” Altech NuPay has developed the next step in electronic real time payments. Dat e: Ref eren ce: ber Cell Num NuPayMe is a safe, secure and user-friendly Nu solution that will benefit all businesses so requiring the immediate processing of real re time transactions. It can be used in almost t any a type of service environment, as well as by any merchant needing to process debit and credit card transactions remotely. The NuPayMe product allows for the acceptance of all major MasterCard and Visa credit cards. By making use of the NuPayMe product, merchants can dramatically increase their collection rate, there thereby providing a healthier cash flow while reducing the risk of cash handling. h YY MM Exp iry : Submit Log out l Rep ort s Powered cted conne cloud This new innovation comes in the form of a web-based eb-based mobile payment collection solution that can be accessed from anywhere, anytime, via cellphone, iPad, tablet ablet etc., – NuPayMe. Our merchant base consists of a wide and diverse spectrum of industries and through interactions and countless conversations the need was identified for a solution that could be used by merchants that are not office bound, for example plumbers, electricians, debt collectors and courier services to name a few. Current POS merchants now have by: Our partnerships are built on sound values and strong leadership. By understanding our customer needs, continuous product innovation and dedicated service enhancements, we improve our customer’s business every day. Altech Netstar fleet expands Three new vehicles have been added to the Altech Netstar fleet. Pictured with the new vehicles are, from left to right: Daniel Malabela, Manager Company Vehicles; Mahlatse Makhafola, Software Support Technician and Ralph Andrews, Fitment Quality Inspector. 34 Ethics – the foundation stone for good business practice The word “ethics” gets used a lot. Politicians talk about the need for an ethical society. Pastors talk about developing a personal ethical code. Most businesses, including Altech’s parent company Altron, have a code of ethics by which all employees are expected to abide. But what does ethics really mean? How do we, at Altech, ensure that our management and staff behave ethically? How do we ensure that we behave ethically towards our customers? A basic definition of ethics is that it is a code of conduct that guides acceptable and unacceptable behavior. Each individual is a member of a particular cultural or social group, and our understanding of what is acceptable or not acceptable is initially guided by our cultural influences. As a result, to some degree, of globalisation, businesses - particularly those with operations in several jurisdictions - have to observe a code of ethics that cuts across different cultures. Altech is one such operation and our code of ethics, while mindful of the cultural diversity of the people who make up the Altech family, conforms to the principles of good corporate governance. Business ethics follow on from that definition – it is the code of values and principles that govern how a person, or a group of people (Altech staff) behave regarding what is right versus what is wrong. The words that are written in Altech’s formal code are valuable only if their intent is reflected in your actions. We cannot be any more – or less – ethical than our staff and management, who run and work for Altech. Take the time to familiarise yourself with Altech’s code of ethics and ensure that you rest easy at night by complying with it. Make sure that you behave ethically and that you blow the whistle on unethical behaviour that you may see exhibited around you. You make decisions every day, and your actions can impact the lives of others. When business people make decisions that are not ethical, many people can be hurt – including employees, customers, and members of the general population, as well as the business itself. Companies that are operated by people who do not choose to do what is right, do not survive in the long-term. Often, making business decisions that are counter to what is right may result in short-term profit, but lead to the eventual demise of the organisation. To get back to our questions above – Altech has an ethical code which, if you follow it, will ensure that we behave ethically towards all the different stakeholders that we encounter in our business lives. Help Altech survive – make ethical choices always. Within the context of our business, we have to behave ethically towards our fellow staff members, our managers, our shareholders and, perhaps most importantly, our customers. Your sense of ethics has an impact on the type of conduct you exhibit. When you are able to tell the difference between right and wrong and you choose to do what is right, then you are acting in an ethical manner. But in business, it’s not just about the difference between right and wrong – it’s about applying that knowledge to business. 35 Altech NuPay’s corridors are buzzing with the news of a new pilot project that will be launched in the month of May. NuPay, in collaboration with ABSA Bank have developed the ABSA Schoolz Card which is a Near Field Contact (NFC) card that enables students to pay for items at school tuck shops simply by tapping the card on a NFC reader that is connected to a terminal. This method of payment will substantially reduce the amount of time students spend standing in queues, as well as reduce the cash held on the premises by enabling exact amount payments. Near Field Contact is quickly becoming the data communication method of the future according to NuPays’ Managing Director Sampie Pienaar. It can already be found in the transport, cellular and gaming industries, and is rapidly expanding at a remarkable pace. NFC, much like bluetooth, allows for communication between devices through the use of radio waves. NFC devices do not need to be activated before communication can occur. Data transfer occurs instantly once physical contact is made between two NFC enabled devices. The specific school chosen to pilot this new innovative product is the Marais Viljoen High School in Alberton, Gauteng because of its long and ongoing relationship with Altech NuPay throughout the years. Dave Hawkins, Altech NuPay’s brand and communications manager, says that they are very excited about the world of possibilities this product opens up for the company and that Altech NuPay is expecting the reaction from the students, parents and the school to be extremely positive, with the demand for the card to increase and in so doing, pave the way for it to be introduced to a number of schools and universities in the not too distant future. Altech Academy Masters Students The Altech Academy offers employees the opportunity to enroll for programmes varying from short programmes to postgraduate degrees. This year a number of Altech employees are studying towards their Master of Science Degree in the Management of Technology and Innovation. From left to right in the back row: Craig Duggan: Altech Card Solutions; John Pedregal: Altech Netstar; Mark Gillon: Altech ISIS; Richard Wingfield: Altech Management Services; Mattheus Van Emmenis: Arrow Altech Distribution and Leon Nortje: Altech Autopage Cellular. In the middle from left to right: Michael Savvides: Altech Autopage Cellular; Keith Wrede: Altech NuPay; Umer Farooq: Altech Autopage Cellular and Julian De Combes: Altech Autopage Cellular. From left to right in the front row: Silva Lichtenstein: Altech Card Solutions; Pam Naidu: Altech Multimedia; Shirley Schwikkard: Altech Multimedia; Dr Steven Shepard; Monica Peethum: Altech Card Solutions and Tom Davids: Altech Autopage Cellular. 36 How tech start-ups are changing business Twelve years after the world witnessed the spectacular dot com crash, the global tech industry has made a respectable recovery. Every day, innovative new technology start-ups are seeing the light all over the world - creating jobs and causing the industry to blossom once more. Technology news website, TechCrunch, published an analysis clearly depicting the growth, bust and subsequent regrowth of the technology sector earlier this year. Compiled by Tom Tunguz of Redpoint Ventures, it reminds readers that in 1980, the global market cap of technology companies amounted to $50 billion, accounting for 1.7% of all global equities. By 1990, it had tripled to $176 billion. Over the next ten years, technology companies displayed hypergrowth, with annual expansion rates of 140%, eventually surpassing $8 trillion in global market cap. Just before the bubble burst in 2000, IT companies represented one-fourth of all equity value in the world. Following the bust, it deflated by 63% to $3 trillion. By mid-2012, the tech sector seemed to have settled with equity of about $7 trillion, which represented 14.7% of the total global market cap. This time around, the prospects for the tech industry are good. A recent report in Forbes magazine cites that technology job opportunities are predicted to grow by up to 22% over the next 10 years, making it the fastest growing industry in the US economy. Africa too is experiencing a technology renaissance. Even though only 14% of Africans have access to the Internet through a computer or mobile phone – compared to global Internet penetration, which reportedly stands at 32% - and only 2% have access to personal computers, Internet usage is rapidly growing on the continent. Africa is also said to be the world’s fastest growing mobile market, with the number of cellphone users expected to reach approximately 735 million, which will make it second only to Asia in terms of mobile penetration. some way,” says Anton van Heerden, general manager of Altech ISIS. Referring to a well-known mobile instant messaging utility which also offers its users social networking, access to music, eBooks and other forms of entertainment, Anton adds: “Everyone already knows about Mxit and how it revolutionised the mobile landscape in South Africa and on the rest of the continent. We’ve seen that tech start-ups that generate the most buzz usually offer services that have to do with mobile money or payments.” A great example of this is FloCash, a payment provider that was cited by Forbes Africa as one of Africa’s top 20 tech start-ups. The service allows anyone with an e-mail address and a cellphone to easily and safely send and receive money across Africa. A significant number, estimated to be around 80%, of the continent’s adult population is still unbanked. ExpenZa, a South African venture, helps those that do have bank accounts to automatically track their monthly spending and calculate budgets by intercepting and decoding the expenditure notifications that are sent to them by their banks. It can also be used manually, without the text messaging feature. Anton points out that this rapid uptake of mobile in Africa is changing the business landscape so fundamentally that the corporate world had to take note. “South Africa’s major retail banks are also branching out into mobile. This convergence between cellphone and banking technology started with First National Bank, which was the first to develop a smartphone app. The fact that they are letting their technology teams take on development in the banking space, which is notoriously tough and tightly regulated, is an indicator of how much the business landscape has evolved.” “That’s why many of the most successful tech start-ups to emerge in Africa in recent years are those that are aimed at mobile users in 37 READ THIS SE EDITION DITIION O OF F ALTECH TALK FRO FROM OM COVER C COV TO COVER TO FIND THE ANSWERS... O FIN ND T HE ANS ANSW WERS... Send your answers to: Evette Wessels (ewessels@altech.co.za) by 7 June 2013 and stand a chance to win an Altech NuPay NuCard pre-loaded with R500.00. QU QUESTIONS Q UESTIONS 1. What is the name of the gentleman who visited the Altech Academy Master Students class from the USA? 2. What does ethics mean to you? 3. How many Altech Academy Bursary students attended the student breakfast? 4. What are the names of the two major business deals that Altech has entered into? 5. When were the Altech Annual Results announced? Congratulations to Saanthini Naidoo from Altech Autopage Cellular, the winner of the limited edition Altech Way book signed by Altech Group CEO, Craig Venter. 38 39 www.altech.com