K3 Business Technology CEO saw progress in the first year
K3 Business Technology is a company experiencing a turnaround as it seeks to focus and position itself in a position where it can generate consistent growth.
Last month, K3 Business Technology Group’s results for the 12 months to November 30, 2021 showed a 3% increase in revenue to £45.3m, with recurring revenue holding steady at 75% of revenue. business, at £33.9 million. Pre-tax losses from continuing operations have also been reduced from £20.8m last year to £7.8m this year.
During the year, the company made a few divestments – the Starcom Managed Services unit and the Sage business – and welcomed a new CEO, Marco Vergani, who was appointed in March 2021.
Vergani has been at the helm of the ship for 14 months, and in a conversation about his progress since joining and his thoughts on the future, he struck a positive tone.
“Let me start by saying that when I joined last year I realized we had a lot of assets in the business, but they were a bit disjointed. It wasn’t really clear on what basis an asset or software would actually be put together or differentiated enough from anything out there on the market,” he said.
This led to discussions about a strategy focused on its key market – retail – and the need to ensure it could serve that customer base. Life has gotten harder for retailers as they try to ensure they stock the products customers want to buy and that their brand is recognized for those things.
“The best way for brands to do this is if they can build a solution that starts with data from what’s happening in the field,” Vergani said. “Whenever sales take place, whether online, in-store or via marketplaces, they [need to] use this data to inform what the business needs to do to prepare to respond to trends and insights from consumer data,” he said.
Some of K3’s clients – mainstream fashion chains – have weekly collections that must appeal to customers, so the pressure for effective data is high.
“The speed and acceleration or time spent in the business is amazing. The amount of data, fragmentation of systems, longer lead times, and getting materials for items or clothing come up against that,” did he declare.
“By thinking deeply about what we can do, I realized that we have an ERP [enterprise resource planning] solutions, and within our ERP solution, we already manage what we call the “concept to consumer”, that is to say that we manage the creation of an assortment, the sampling and then the refinement of the collection, order escalation, receipt of orders in warehouses and from distribution, pricing policies, etc. “, he added.
In retail, the key is being able to help manage omnichannel, covering all customer approaches, and Vergani has ensured that K3 also acts as a whole when delivering solutions and services.
“The goal or the strategy was to say, ‘Okay, if we want to be true to ourselves and develop a strategy that builds on the assets that we already have, but also create a very clear and distinctive position in the market, then we really need [know] what makes a brand successful, its overall acceleration, is managing end-to-end processes,” he said.
After implementing a more targeted approach and pushing the integrated approach, the final part of the strategy is to ensure that the company can support customers’ sustainability goals and give them traceability in their supply chains. .
Underlying all of this is an increased need from customers for business intelligence and the ability to use technology to better support their business.
“With all the data you can collect, at the consumer level, at the supply level, etc., there is a lot we can do to prompt the smartest way to interpret the data to suggest ways to perform better” , did he declare.
As Vergani looks to the future, it is recognized that while much work has been done, the turnaround will continue.
“We are optimistic for the future,” he said. “After our results were released, I took the time to sit down with investors and really explain to them what we stand for, what the market needs and how we are trying to meet them.”