Sponsored: DCC Technologies operating on firm footing – readily adapting to change and building on its strong foundation
The 35-year-old, multi-award-winning DCC started operating as DCC Technologies with immediate effect, and at the helm of this new chapter, is CEO, Carlos Ferreira.
01 August 2024
October 2023 marked an important chapter in the ICT channel’s history; the acquisition of Drive Control Corporation (DCC) by a new executive management team and Kleoss Capital, a BEE private equity firm.
The 35-year-old, multi-award-winning DCC started operating as DCC Technologies with immediate effect, and at the helm of this new chapter, is CEO, Carlos Ferreira. Explaining the rationale behind the acquisition, Ferreira says: “The acquisition of Drive Control Corporation was a strategic one, aimed at building on the distributor’s already-strong position particularly in the hardware space.
“We are evolving DCC’s traditional distribution model into a value-added distribution approach. This has allowed us to foster a robust environment for our clients and resellers, ensuring consistent purchasing.”
Building on DCC’s strong, entrenched business operations in the SADC region, Ferreira notes the distributor anticipates further geographic enhancements that will solidify its market presence and service offerings.
To this end, DCC Technologies will be expanding its SADC footprint into Zambia, establishing a comprehensive warehouse solution that will undoubtedly benefit its channel partners in the country. DCC Technologies currently has full distribution offerings in Mozambique, Botswana, Zimbabwe, Namibia and Lesotho.
“Our goal is to extend our service capabilities across the region, providing peace of mind to both our resellers and customers. This expansion strategy aims to enhance the company’s reach and service delivery, ensuring a seamless experience for SADC partners and customers,” he notes.
Like its industry peers, DCC Technologies continues to face challenges such as external factors which impact its strategy execution: “Macroeconomic factors like volatility of the rand and the dollar, as well as the dynamics of extending credit, all impact our operations. That said, we have a firm grasp on these issues and are managing them effectively.”
Lastly, adapting to changing market conditions and emerging trends is crucial for staying ahead in the technology distribution sector, especially given the vast opportunities that the move towards generative AI presents. “We will continue to adapt our strategy to prepare for future challenges and opportunities. We have focused on aligning our operations with emerging market trends and customer needs, ensuring that we remain at the forefront of technology distribution,” concludes Ferreira.
The ongoing evolution and growth of DCC Technologies
DCC Technologies (DCC), the ICT channel’s 35-year-old mainstay, was acquired by a new executive management team and Kleoss Capital, a BEE private equity firm, in October 2023. This new chapter now sees the multi-award-winning distributor continue to focus on its core business operations whilst transitioning into a modern-age organisation.
Andrew Harris, sales director at DCC Technologies, forms an important part of this evolution, steering DCC Technologies into this new, and exciting era. “We have solidified our partnerships and are committed to expanding our business value proposition and techniques”. He also emphasises the transition is marked by a strategic focus on deepening vendor engagement to foster growth and innovation.
Furthermore, by prioritising exceptional service, DCC Technologies has managed to sustain client loyalty, a cornerstone of its long-term success “Our service excellence sets us apart; it is undoubtedly a key differentiator and an important DCC legacy which we continue to hold dear.”
However, despite its successes, DCC Technologies, like its industry counterparts, also faces external market challenges. Harris says issues such as port operations and the prevalence of grey imports continue to undermine market development efforts. Also, with many products priced in dollars, budget constraints are a concern.
“To overcome these challenges, we continue to work diligently to optimise technology investments within these budget constraints, addressing the intricacies of a dollar-dominated industry, understanding that it’s a battle that will persist.”
Technology investment is another priority for DCC Technologies. Here, Harris highlights the importance of aligning technology procurement with client strategies, particularly in the context of South Africa’s regulatory environment and the growth of qualifying small enterprises (QSEs).
“We assist clients in making technology investments that align with their strategies whilst addressing their primary concerns, ensuring they make informed decisions that support their longterm goals.”
Looking at technology trends, Harris identifies broad-based AI applications as a game-changer over the next five years. “Broad-based ‘usable’ AI applications will significantly impact the market. DCC Technologies is embracing this trend by educating our partners particularly when it comes to AI capabilities, and how they can use it to enhance their own business,” he explains.
ICT distribution continues to face a shortage of skilled sales personnel with the requisite technology expertise. “The industry is undoubtedly facing a skills gap particularly as the demand for talented sales personnel with the right technology expertise increases. This is in part driven by global demand and technology advancement.
“We are addressing skills development and retention by fostering a loyal and welcoming work environment. At DCC Technologies, we are committed to creating a development roadmap for our personnel, ensuring they feel valued and motivated to grow within the company,” concludes Harris.