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03
Performance
Productive
capital
– continued
Successful integration of
Enterprise with BCX
With the integration of
TelkomEnterprise with
BCX in November 2016,
the sales and leadership
teams of both
organisations were
integrated into
a single point of contact
for our public and
corporate enterprise
sector customers.
Opportunities are being identified
to cross-sell IT and connectivity
solutions in the new combined
customer base.
The integrated business has the
ability to deliver end-to-end
digital solutions to its customers,
with unmatched data centre
capabilities and a strong network
offering. Synergistic benefits of
the integration are evident in key
deals won recently, mostly in the
public, retail, banking and financial
services sectors. These deals
would normally necessitate striking
partnerships with various entities,
given the scope of the needs of
our customers.
The merger of Enterprise with BCX
has increased the gross profit and
EBITDA margin, as the Enterprise
business historically operated at
higher margins. EBITDA margins
increased from 7 percent in
FY2016 (BCX prior to the merger)
to 15 percent in FY2017 (combined
entity). The Enterprise business
contributed approximately
R5 billion in revenue to BCX.
BCX consolidated the basic
cloud services and created a
single platform to deliver cloud
services that are syndicated from
independent software vendors and
hyperscale providers and consume
our own from BCX data centres.
We strengthened our data centre
capabilities to include Oracle
and launched Cisco-hosted
collaboration solutions and SAP
HANA Enterprise cloud services.
The BCX platform provides cloud
solutions that allow the provisioning
and billing of infrastructure as
a service, platform as a service,
and software as a service. BCX
believes that the simplicity of how
customers can manage their own
accounts using this platform allows
for quicker adoption and improves
our ability to up-sell and cross-sell.
Our Kompare app – a consumer
product and price comparison app
- was upgraded to allow customers
to review and transact through the
vendors e-commerce platform.
Through new and continuously
improving relationships with
merchants and various businesses,
we provide customers with
access to product purchasing
on a convenient platform. We
successfully launched the Black
Friday campaign using the Kompare
platform to enable customers to
complete end-to-end e-commerce
transactions.
The chat-based market place
web and mobile app called Yapp,
was successfully launched in
February 2017 for small medium
entities (SMEs) customers. This will
provide SMEs with an interactive
market place that offers suppliers
the ability to interact with their
customers via online chat.
It allows customers the opportunity
to rate their suppliers performance.
The first year of launch focused
on on-boarding service providers,
customers and growing usage.
Businesses are demanding omni-
channel capabilities from their
suppliers when making work-
related purchases. We have
commenced to roll-out engagement
capabilities that enable SMEs to
offer omni-channel services to their
customers. This also assists SMEs
align their service fulfillment and
organisational processes with the
desires of their customers for rich
omni-channel experiences.
In order to offer the full scope of
services, partnerships have been
entered into with a number of over
the top players. We will continue
to form partnerships with other
players to provide new solutions to
the market. Customer satisfaction is
key to us therefore increased focus
was given to improve customer
satisfaction.
Digital revenue generated
continued to increase
We still rely on print
revenue and the growth
in the digital stream
is not yet sufficient to
compensate for the
decline in the traditional
print services. This caused
margin limitations.