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.

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 A V Gopalakrishnan, Director, Visualan Technologies.

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 Shirish Anjaria, MD, Dynacons Systems and Solutions.

States Nitin Shah, MD, Allied Digital Services, "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."

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 Chetan Shah, MD, Compu-tech Systems and Solutions, "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, MD, Compu-tech Systems and Solutions, "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."

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.

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