Standing the test of time

The story behind Queensland-based BES Information Technology Systems and its CEO Alexa Bowen is a reassuring tale of a local channel player that has successfully and continually adapted its business model over nearly 20 years.

Since its formation in 1988, Bowen has overseen the reseller’s transformation from a humble typewriter provider, to one of Queensland’s top 400 companies
and a firm focused on Australia’s bustling education, government and SME sectors.

BES currently boasts a diverse product set including computer systems, mobile phones, networking products, security, software, storage, printers and scanners.

Since 1988 the IT industry has seen the rise and fall of numerous vendors, distributors and especially resellers, who failed to either innovate or move with changing trends.

At the heart of BES’ transformation in the vacillating IT industry of the past 20 years is previous Canon Australia employee and BES’ current CEO Alexa Bowen.

Life at BES
Speaking to CRN, Bowen says she has always been involved in sales and moved into IT where there is never a dull moment and excitement levels are always high.

“I started out doing national sales and marketing for Canon Australia and in 1988 I moved to Queensland to open up a business with my husband. This was the Business Equipment Shop selling typewriters and fax machines, and from there we moved into PC hardware and into networking,” she recalls.

Bowen says 12 years ago BES got involved in the education side and moved on to specialise in that vertical. “We have diversified from a retail focus to move into education. We were approached by Acer who said the education market is burgeoning and we want you to focus on this area,” she says.

In hindsight this has proven to be a masterstroke.

A Gartner report from November last year found that IT is transforming education and IT leaders should prepare for the challenges that will face education in 2007. The report also predicted for the next five years there would be a focus on teaching and learning as well as administrative expectations that reflect the habits of students, instructors and administration.

The fact that BES has been specialising for the past 12 years in a market segment that is still rising, suggests there will be very few channel players so well placed to take advantage of future growth in the education sector.

“It is different dealing with the education sector than the business market and we have got heavily involved in the consulting side. We work very closely with the private education sector, from assisting with installations to planning their storage,” she says.

Speaking about her day-to-day role at BES, Bowen says as CEO she oversees the whole operation of the company and makes sure the company is run smoothly with competent staff in place.

Bowen currently oversees a team of 21 employees. “I feel it is important to make the staff feel they are an integral part of the company,” she says.
“We have a lot of long-term staff members. We are a small organisation where the staff know they only have one person to answer to, which means that decisions can be made promptly.”

BES offers support and is an authorised repair agent for firms such as Acer, Epson, Panasonic and Brother.

“We have a strong Acer relationship and we are developing our IBM/Lenovo relationship. When you have been working with a vendor for a long time this helps to have a smooth running relationship. Our vendors have been doing a great job of cooperating with us,” she says.

Future in the channel
Bowen says she does not foresee any one technology likely to be a “light bulb for the industry” during 2007, but tablet technology is getting better and schools are taking it up as it has become more affordable.

“We can provide the repair and training for tablets and we also feel you must work with customers on training programs. We have client training facilities and have regular ‘lunch and learn’ sessions. We plan to hold some two-day events to educate IT managers and we are working with our vendor partners such as Acer on this.”

Bowen says BES would remain focused on the education market and services and support.

“We are Acer’s second largest repair agency in Australia and that is a core focus for us. We are now taking this to the next level as storage becomes a big area in education. Notebook programs are still big in education too.”

Bowen also stresses she would like to increase BES’ presence in the SME market, which currently accounts for 15 percent of the firm’s business.

“In the future storage will be a big area of our overall business, not just education, as will networking support, which is important in the SME market.”

Taking on Dell
After nearly 20 years in the IT industry at a reseller, Bowen is well placed to comment on what has succeeded and failed in the market.
One topic where Bowen has no shortage of strong views is the emergence and recent downturn of direct vendor Dell.

When Dell entered the industry its direct supply model was deemed a huge threat to resellers like BES. Dell duly went from strength to strength in both the corporate and home sector.

However, Dell has experienced its fair share of problems of late including investigations, delisting threat, executive resignations, its profitability has been under pressure and it has lost the title of world’s number one PC maker to rival Hewlett-Packard.

A bullish Bowen comments: “We don’t find Dell a threat at all and if we come up against them we find we win the business.”
Some industry commentators have speculated that Dell could turn to the channel, but Bowen disagrees that the PC giant will launch an official partner program.

“Dell in Australia is probably only 2 percent of its worldwide revenue, but firms often test the water in Australia first. Dell might try something out here, but only time will tell,” she says.

Bowen says Compaq tried the retail route in Australia and that transpired to be a dismal situation for the firm.

“Dell sales are based online or on the phone and customers have to contend with that. I’m still surprised the government sector has so much involvement with Dell. You cannot always be price-orientated and it is tough to get on the phone to Dell about products and services.”

Bowen adds that the corporate client knows they pay less with Dell but they are also aware they are not getting the quality.

Unwinding abroad
However, it is not all Dell bashing and the world of IT reselling for Bowen.

“In my spare time I like to entertain and I enjoy travelling. Last year my husband [Roy Bowen, who also works at BES] and I went to Canada for a month.

Every year we get away, with Singapore and New Zealand the locations this year and a Mediterranean cruise next year,” she says.

Bowen’s acceptance of new trends and aligning BES to these developments is the reason why the firm is still going strong after two decades in business. Too many resellers stick to their established set-ups, she says, and pay the price when they fail to keep pace with the industry and changing customer demands.

It is also noteworthy that Bowen has found so much success in the education vertical – a move Bowen and BES made well ahead of time in a market that continues to offer opportunities for channel players.

Bowen also reveals a desire to boost BES’ SME business, which seems like another smart move. An IDC study from January this year suggested the SME market across the world presents a huge opportunity.

After working hard to gain a reliable reputation and having established vendor relationships means that Bowen and BES are well placed to continue their success.

Former British Prime Minister Harold Wilson once said: “He who rejects change is the architect of decay”. Bowen and BES have embraced change and succeeded in the channel because of this ethos.