Aptech, With Rs 100 Cr Target, Plans Asian Econets

Aptech Ltd, the global information technology major, will soon announce a comprehensive plan to build economic networks (EcoNets) for the Asian manufacturing industry with services to be provided through Aptech Software.

The company has also etched out a multi-pronged strategy for becoming a leader in the e-architect category worlwide with a goal of achieving Rs 100 crore of e-business revenues in this year.

The company recently bought an 80 per cent stake, through its subsidiary BConnectB Worldwide Ltd, in ISearchCentre.com which provides IT-enabled services through the Internet. It is also close to taking minority stakes in two other dotcom ventures in the UK and Australia. BConnectB recently also concluded a deal to take 80 per cent equity in US-based Wisdor, a company providing knowledge management service.

 

"Our strategy is to make a smooth transition from a computer software company to a complete Internet company," Ganesh Natarajan, Aptech Ltd's president and chief executive officer, told Business Standard in an interview.

IsearchCenter.com has been set up with Nitin Nohria as a strategic advisor and a member of the board of directors. ISearchCenter focuses on providing research services to corporations around the world seeking to harness India's potential for providing IT-enabled services through the Net.

According to Natarajan, the company's e-initiatives in the UK concentrates on the health care industry, while the joint venture in Australia is for an investment portal.

Natarajan also pointed out that the company's first few acquisitions are expected to come through this quarter. Aptech is looking at acquiring a US-based company for about $10 million. "For our first round of acquisitions we have earmarked about $25 million," he added.

Aptech's EcoNet value proposition is based on its capabilities in e-architect and knowledge management solutions which has enabled Aptech Software to record a 174 per cent growth in the first quarter of 2000 compared to the previous corresponding period.

"Within the next three-four months, we should be able to have EcoNets for at least two manufacturing services, the automotive and the electrical engineering sectors. By this time we also hope to get at least two industry leaders in each of these sectors to be with us," Natarajan said.

So, what is EcoNet? An EcoNet is not a fundamental departure from any of the approaches or initiatives followed by businesses. On the contrary, says Natarajan, it is an attempt to build a comprehensive strategy that addresses the needs of an entire industry segment without compromising individual goals of a firm and then undertakes a large-scale implementation effort.

"The EcoNet would make it possible to implement internally integrated or externally hosted value chain collaboration systems connecting individual firms with each of its suppliers, sub-contractors, distributors and dealers," Natarajan said.

He added: "EcoNet will also facilitate customer responses through common portal interfaces and eliminate a major share of purchasing and distribution inefficiencies through the building of a comprehensive electronic market place that would approach the perfect competition that has long been the dream of many economic thinkers."

Natarajan pointed out it was all within the realm of reality as the fiercely competitive Big Three of the US auto industry, Ford, GM and Chrysler, were actually coming together to consolidate transactions with their suppliers in just the fashion which EcoNet embodies.

As part of its e-business initiatives, BconnectB recently announced an alliance with Qimpro, an Asian leader in process and quality consulting. This alliance provides a unique Web-based service for clients of BconnectB ASP portal to evaluate an enhance the e-readiness of their processes and quality systems.

BconnectB currently hosts an entire suite of e-procurement applications built around Aptech's e-link product suite. In the next phase, Aptech's knowledge management framework Ontologic and XML search engine will give it the intelligence and powerful search facility that enhances an organisation's e-business capability.

"We are looking at making Ontologic Wireless Application Protocol(WAP)-enabled too," Natarajan said.