intec's vision & strategy

Intec has a clear vision – To offer our customers the world’s best BSS/OSS products solutions and services, and to be able to implement and support those products anywhere in the world.

Customers – Customers are key to everything we do. Our customer vision is to fulfil real-world BSS/OSS needs, today and far into the future, and to never lose a customer through what we do or what we deliver. Intec has an outstanding track record in this respect, having retained almost every single customer we have gained since Intec was founded in 1997, including all six of our first year customers. The customers we work with today include the majority of the world’s largest communications providers, including leaders in fixed, mobile and next-generation networks (i.e. WLAN, 3G and IP). Today we work with around 350 such major carriers in over 80 countries, and we are acknowledged as product and market share leaders in several key BSS/OSS sectors.

Products - Our Products vision is based on a growing, integrated portfolio of truly world-class products. Critically, all of our products are designed to be both compatible with all types of networks and services, from the most basic voice services to complex next-generation technologies, as well as robust, cost-effective to own, and fast into production in demanding, high-volume environments.

Solutions - Our Solutions vision is to use our products and services, and in some cases products from our business partners, to build high-quality, pre-integrated solutions for specific business problems, for example IPTV or the MVNO space. Each such solution brings a wide range of pre-proven, pre-integrated functionality, with global support services to enable rapid roll-out.

Services – Our Services vision is the capability to deliver any Intec product or solution, rapidly, cost-effectively and to the highest standards, anywhere in the world. To this end Intec has developed a number of Global ‘Centres of Excellence’ – at least one in each major region – from where we can deliver a complete range of services to local customers. The Centres are supported by almost 30 regional offices, each one located near to major business centers, from where we can deliver ‘close-to-the-customer’ support and services, in local languages and time zones, and, critically, with extensive local expertise.

Strategy - Intec Telecom Systems has achieved rapid and sustained growth since its formation in 1997. Maintaining this momentum is important within a consolidating BSS/OSS sector, and a clear and realistic strategy is being pursued to achieve that goal:
 
There are three main elements to the corporate strategy:

• Build a wider revenue base

Scale is important for software-based companies, to allow greater returns from the Company’s investment in its intellectual property, to compete effectively in a globalised market, and to create a strong business for the long term. Intec’s approach is to develop (or acquire) product capabilities for which we see genuine customer demand, now or in the near future, and to market those capabilities to all the customers capable of making the level of investment necessary for profitable operations.

Our target market is primarily larger (tier 1 and tier 2) communications service providers and other companies in the same delivery chain, for example content providers. Despite some obvious consolidation in the telco sector, Intec’s target market continues to expand. In particular, Intec proactively identifies, monitors and targets new markets, such as geographic growth areas (e.g. Africa and Eastern Europe), new technologies (e.g. VoIP and IPTV) and new business models (e.g. MVNOs).

Growing our revenue base implies both expanding our customer list, and also developing the level of business we do with existing customers. Intec has a broad portfolio of products, and cross-selling these to existing customers is a key priority. Around 80 per cent of customers have only one product to date, and our focus on promoting the full portfolio to all customers is producing encouraging results. We are also increasingly developing and marketing a broader solutions-based capability, where one or more products are integrated into a targeted offering that meets a clearly identifiable market need. Partners remain an important part of Intec’s distribution and delivery capability, and in 2005 we have deepened our relationship with a number of influential companies, including Accenture, EDS and Oracle.

• Increase operational efficiency

Intec prides itself on running an efficient and productive business, with a cost-focused culture that is nevertheless prepared to invest where we see genuine benefit. Increasing this operational effectiveness is a clear management priority, particularly as Intec grows as a business. Several internal initiatives are in hand to achieve this. For example, Intec Convergent Billing projects have historically worked on a business model with a greater focus on configuration than other Intec product families. By introducing more standard, pre-integrated functionality, the requirement for professional services on a project can be reduced, with the added benefit of shorter project cycles. An expanded offshore professional services centre, combined with research & development primarily based in low cost locations, is another example of our drive for productivity.

General and administrative expenses are being carefully controlled as well. For example, a global SAP system is being rolled out to avoid duplication of effort, reduce overheads and maximise on company efficiencies. Good cost control, accurate budgeting, efficient working practices and examination of return-on-investment, are continually emphasised at all levels of the Company.

• A clear acquisition policy

Since our IPO in 2000, Intec has made 10 acquisitions. These have been key to our growth and success in a turbulent and competitive market. We therefore expect that acquisitions will continue, with a focus on:

• Acquisition of companies with complementary products and services that will benefit from Intec’s global distribution capabilities;
  
• Bringing in high quality staff with appropriate technical, commercial and managerial skills;
• Enhancing the financial performance of the Company through revenue and earnings accretive deals.

While Intec maintains a substantial development capability in its own right, its product portfolio has mainly grown through acquisition. Intec Convergent Billing (Singl.eView), Intec Mediation, Intec Trading & Routing and others joined the Company through this route. This approach, which has several advantages, including reduced development risk, acquisition of a reference customer base, and the addition of relevant technical skills, is expected to continue.