An idea for the Millennium

They are keen competitors among themselves

in their business and yet, they have pooled their individual strengths to promote a

trend-setting idea. They are the seven biggies in system integration in the commercial

capital of the country. They have come together to take on the might of the seasoned

players in the branded PC market. Sounds a little too far-fetched?

Not really. Especially if you consider the fact that the Millennium

System Integrators Group consists of some of the biggest system integrators in Mumbai. The

group includes Dynacons Systems and Solutions, Compu-tech Systems and Solutions, Visualan

Technologies, Thukral's, Allied Digital Services, Alpha Data, and Omnitech Business

Machines who are Genuine Intel Dealers (GID) as well as Microsoft System Builder Partners

(MSBP).

Besides being GIDs and MSBPs, most of the seven members are also Intel

Authorized Service Providers, which means they have at least two staffers who have passed

certain technical tests. One has to be an Intel Certified Integration Specialist and the

other, an Intel Certified Solutions Consultant. So, here is a group that is not only

technologically sound but also up to date.

Advantage Millennium

With the forming of the Millennium System Integrators Group, the Millennium PC has an edge
over other branded machines that are available in the market. The coming together of

various system integrators means their strengths are combined. "Different talents

have come together. Each one of us specializes in a certain area, which is good for

us", says Visualan Technologies director A.V. Gopalakrishnan.

The fact that the members of the group are in direct contact with the

customer also works out to be a big advantage for the Millennium PC. Since the system

assemblers are in direct contact with the customer, they know the pulse of the market and

are always perceptive of their customers needs. This is something that some of the bigger

OEM's cannot do. "We understand the needs of the customer best. Every customer has a

very distinct need. We try to understand his need and fulfill his requirements. With the

Millennium PC, we will offer flexibility to the customer. Some of the larger OEM's are not

in a position to do this because they are not in direct contact with the customer",

says Dynacons Systems and Solutions managing director Shirish Anjaria.

States Allied Digital Services MD Nitin Shah, "Our strengths are

the ability to offer direct service to the customer and the ability to offer a greater

amount of flexibility in the product."

Quality Support

In fact, the concept of the Millennium PC is based on the ability of the brand to be
flexible and the ability of each member of the group to provide quality support. The

Indian customer requires an extremely high level of hand holding. A major plus for system

integrators is the incredible amount of hand holding that they do. Their experience in

this respect should hold them in good stead. The OEM's do not have a very good track

record in this respect. And this is something that the members of the group would like to

cash in on.

"We have a proven record of providing quality services. We have

been providing quality machines for a long time now. With the Millennium PC, we plan to

provide the customer a brand as well as the quality service that we are known for",

says Anjaria.

Reiterates Compu-tech Systems and Solutions MD Chetan Shah, "We

have come together to build a lot more value into the PC, by providing quality software

and quality support."

But building up a brand image is an expensive exercise, and it is

almost impossible for any one company to handle. According to Anjaria, "Creating a

brand image for our products individually is not an easy thing to do. The costs involved

are too high for any one of us to invest. When we pool in our resources, it becomes much

easier."

The group has created a common ad fund to which each member and at

times even the principals contribute a certain amount. The fund is utilized for

advertisements to be placed in various newspapers, hoardings, etc. Says Chetan Shah,

"All of us contribute to the fund regularly. Besides, principals like Samsung have

also contributed to this fund. The brand also provides the principals with another channel

for their products."

But what happens to individual brands that any of the companies might

already have? Visualan is the only member that has a separate brand of its own. Says A.V.

Gopalakrishnan, "We do have an individual brand. But our brand goes through the

channels. We will be selling the Millennium PC directly to the end-user. The channels will

not be included in this."

Competitors Come Together

The most interesting element in the Millenium Group is that in a way, all the seven are
competitors in the market and they run their individual companies. "Yes we are seven

independent companies which have come together. Yet we are loosely coupled with no demands

on individual styles of functioning. Each can run his individual business as he pleases,

but we still work well as a team", says Nitin Shah.

In fact, there is no common manufacturing unit for the brand. Each

member manufactures the Millennium PC individually and also sells the machines

individually. But the group is very keen on standardization of the machines sold under the

Millennium brand name. The group has an understanding that they will use only components

that are of a certain quality. The group has also standardized the brochures for the

Millennium brand.

The Road Ahead

With standardization of components already achieved, the group is now thinking of setting
up a common manufacturing unit, though the idea is still being discussed. If this comes

through, it would be a further step in the direction of standardizing the Millennium

brand. "We are looking at the feasibility of setting up a common manufacturing unit.

This will mean that there is complete standardization of the Millennium PC", says

Gopalakrishnan.

Reiterates Nitin Shah, "Besides standardizing the Millennium

brand, the common manufacturing unit will also help us in increasing our purchasing power

and give us the advantages of scale."

Right now the Millennium PC has made it’s presence felt only in

Mumbai. Since all the members of the group are situated in Mumbai, they enjoy a fairly

widespread reach for the city. But once it has an all-India presence, the group will have

to think of going through channels. "Going through channels could be an option. We

have to discuss the details. But that will only happen once a national presence is

established", says Anjaria.

Another option available in this case would be to go through the

branches that some of the companies have in other cities. "Once the brand is well

established, and we decide to go national, then we could consider going through the

branches that some of the members in other cities", contends Jagdip Thukral,

Director, Thukral's.

In fact, some companies have already begun to consider the selling of

the Millennium brand through their branches, though at an individual level. "Visualan

is thinking of selling the Millennium PC through our other branches in the rest of the

country", says Gopalakrishnan.

The next step of course, would be to form a new company for the

Millennium brand. But that will only be at a later stage. Most of the members were of the

opinion that thinking of forming a separate company would be a little premature. Says

Anjaria, "Setting up a separate company would be great, but it is a little premature

to think of it at this juncture."

The setting up of a company would mean that the Millenium Group would

hit big time. And, why not? They have the technical know-how and the panache to make it

happen. If they do make it, it could be a sign of things to come. System integrators in

other cities could follow suit. Looks like the Millennium group is all set to provide an

inspiration to the entire channel fraternity.



Sanketh Arouje
DQ Channels India