Magnus Phils.; Creating revenues that create more revenues

Seven years ago, Jan Biezepol was in the Philippines to lead the implementation of an IT project that ushered San Miguel Corp. into the electronic age and marked what was to be a major turning point in Philippine business.

San Miguel being what it is, everything it did had a significant impact not only on the way business performed but also on the way business was done and the way business actually formed thoughts.

"Everybody watched carefully what San Miguel was doing when it first launched the project that integrated its disparate systems," Biezepol recalls. "If outside observers were curious, you can imagine what it was like within the company itself."

For Biezepol, the project also marked his first prolonged stay in the country. "I was surprised at the level of skills that I found here and the sheer ease of communication," he said. "When you hear expatriates saying these things repeatedly, you tend to take it for granted. But these are real elements that make the difference."

San Miguel’s entry into the information age, according to Biezepol, opened prospects and possibilities that were not readily apparent before.

"It was a dream project, he said. "Suddenly, people saw the potentials in this market. If an organization the size of San Miguel had done it, it was only a matter of time before everyone else did. And that represented good business prospects."

At the time, Biezepol recalls, there was almost no competition. Before long, ITC consulting firms started descending into the Philippine market. Big local companies in manufacturing and services were moving into the IT age, on the trail of multinational firms and financial institutions.

Challenges

Biezepol spent time doing consulting work in Malaysia but, when he was tapped by Magnus Management Consultants to head its Philippine operations, he jumped at the chance. "I was traveling a lot and I was getting tired of it," he explained. "But I also liked working here. It is much more open. Our services are evaluated based on value added. It doesn’t matter where we are coming from as long as we do the job well."

Biezepol said he was also attracted by the personal challenge of turning Magnus’ operations around at a time when the Philippine economy and the IT sector itself are both in a precarious balance between growth and collapse. "I get bored very easily so it was a job that was exciting to me," he said.

Biezepol joined Magnus as its managing director for the Philippines. "First we hired people who had the network to be able to generate business for us. There is a market out there, we only needed to tap it," he pointed out. In a way, the fact that Philippine companies took their own sweet time to computerize their operations proved good business for IT firms in search of fresh markets without the congestion and intense competitions of the markets in the more developed regions.

"It is an amazing thing to witness," he intimated. "With the simple act of automating business processes and then integrating all these processes to create a system, you can see it is a complete change of mindset for everyone involved."

"Pockets of seemingly isolated tasks within the organization suddenly become integrated with the whole and they start to make sense to everyone involved in the company," Biezepol said. "This, I think, is one of the most important benefits we get from information technology, aside from the obvious increase in efficiency and productivity and such."

According to Biezepol, even the companies themselves realize the potential of information technology as a catalyst for cultural change within the organization, a change that invariably improves productivity, efficiency and more in different levels.

Investment

An undertaking of this magnitude, however required considerable investment in terms of post-implementation babysitting. "I think what separates us from the rest is the fact that we build long-term relationships with our clients," Biezepol said. "We provide support services, we don’t operate like guerilla units that come in, do the job and then leave."

The strategy worked. Within a year, Magnus has managed to build up a considerable client base, handling systems integration and other IT projects for such companies as Makro, Digitel, Cebu Pacific, Manila Water and most recently, Ayala Land Inc.

Using Oracle Java for Makro, Biezepol said Magnus linked the company to its suppliers so that transactions could be undertaken over the Internet.

The system also facilitated distribution of consumer goods.

"We do front-office applications that meet customer-specific needs and we integrate the front office with the backroom office," he explained.

Magnus’ previous clients, he added, serve as references that open leads to other projects by building up a solid reputation for reliability and success.

"This is the way we like to work, "Biezepol said. "We are not just looking for revenues, we are creating revenues that would create more revenues in the future."

"We have turned down projects for this same reason," Biezepol added. "If we see that the client is not as committed as we are, we can’t work in that environment. It would lessen our chances of success."

Amidst predictions of economic doom and declining revenues, Biezepol said Magnus is actually looking at a record performance for 2001 and an even better one in 2002.

For Biezepol, it’s a long way from his programming days in Holland.

"So far so good," he said. "I like this."