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Data#3 plots 2011 growth strategy

Data#3 plots 2011 growth strategy

The integrator will move into three new offices, new warehouse facilities in NSW and Victoria, and is expanding its customer offerings and people skills.

Getting the sign ready for Data#3's new Perth office

Getting the sign ready for Data#3's new Perth office

ASX-listed integrator, Data#3(ASX:DTL), has outlined its 2011 growth strategy including new offices, warehouse facilities, expanding its customer offerings and enhancing people skills.

The integrator is expanding its Brisbane, Sydney and Melbourne offices, and expects to move into the new Brisbane space by the end of November, and will refit its Sydney office by April.

It is also tripling the size of its NSW and Victoria warehouse spaces.

“The new configuration centre and warehouse that we moved into in Victoria three months ago, is already out of space and we’re moving into new premises,” Data#3 managing director, John Grant, told ARN. “We’ve got about five real estate moves this year, all of this takes time and effort.”

Data#3 will also develop two new practices involving workplace productivity and strategic consulting.

In Grant’s address to shareholders, he touched on customer adoption of cloud computing and Data#3’s strategy to develop a clear path for all of its solution offerings across customer technology consumption models whether that is from a product, expertise, solutions, outsourcing, as-a-service or cloud capacity. The integrator recently announced a new partnership with Telstra, to supply the Microsoft BPOS tool set.

“We will create on-demand hardware and software capacity where appropriate and commercially viable and we will use our new strategic consulting practice to help our customers define where cloud computing is an appropriate technology consumption model for them,” Grant said.

“In a five to seven year time frame, there’s going to be many more devices in the hands of users, and there will be a need for an environment to run them continually and reliably. We see an opportunity to build out workplace productivity to make the end user of those devices more productive.”

Grant indicated it would also be investing in more people skills this financial year and plans to enhance its direct sales models with investments in in-house telemarketing and inside sales teams.

“One of the things that our industry generally lacks is leadership skills and we’re working hard in our business to identify and develop leadership skills in a whole bunch of people,” he said. “Shortages can limit the rate at which we can grow and we work hard to counter this through developing our current people into their next roles."

Enhancements are also being made to its supply chain systems and it is significantly investing in a new customer portal for quotation, ordering and eCommerce. It will also integrate its ordering system with suppliers.

“We see these investments providing competitive differentiation and lowering transaction costs,” Grant said.

The integrator is also on track to achieve a net profit before tax of up to $11 million for the first half of FY11. This represents about 50 to 60 per cent increase on top of last year.

“We’ve had a very solid growth across our whole business,” Grant said.

“It’s a better market place that we’re operating in. While customer’s are being diligent about the amount of money being spent, the value, and taking their time to process their decision, there are more decision’s being made and there are more projects coming to light.

“We’ve built out our business over the last three years and there’s a greater number of customer’s we’re dealing with, which is particularly favourable from our point of view.”

However, Grant remained cautious about projecting a similar result in the full year.

“We have seen some shift in seasonality toward the first half and we will be incurring a range of occupancy and people-related expenses in the second half, which are not in the first half,” he said.

Data#3 recently reported its best-ever financial results.

The company was trading at $10.83 at the time of publication.


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