COMPUCON in 2001 developed its strategy for the next three years in order to meet the following objectives:
- Continue to improve the infrastructure, regarding facilities, human capital and know how, in order to maintain the innovative character of its products, to maintain the existing competitive advantages, and to reduce production and distribution costs.
- To differentiate its product lines in a relative field, in order to achieve synergy effects of the combined know-how and the international sales network, and to reduce the business risks of achieving its revenues from one products category.
- Penetration in new, developing markets, in order to increase the asles turnover, but also in order to exclude competitors from these markets by "locking" strategic customers in long term business co-operation.
- Combine the know-how and e-business solutions, in order to develop new products, and also to create new distribution networks, in order to create a competitive advangate, and also to increase the profit margins.
The investment plan of COMPUCON for the period 2002-2004 was formed with the basic criterion of capability of the relative amounts to serve four strategic targets, which are described below :
These sums may be abstracted in seven separated categories as follows:
Development of Information Systems & Infrastructure
This investment category includes two basic parts:
- Installation of Integrated Information System - ERP (Administration System of Customer DataBase, Organizational Systems, Project Management, Accounting, Commercial Administration, Management Information).
Implementing the principle of " unique entry of data ", COMPUCON will connect its functions and computer systems in an integrated network, improving primary information. In addition, COMPUCON is aiming to decrease the cost and the speed of information administration in order to significantly improve the capability of management decision making.
- Modernization of Building Facilities & Expansion of Functional Infrastructure
The sums of this category will be used to support the completion of the functional needs that will be created due to the gradual increase of employees, and as a result of the gradual technological demerit of the existing equipment, in order to ensure that all employees work in a modern and functional environment, which increases their productivity.
Renewal and Continued Improvement of Embroidery Software
This investment category includes:
- Creation of capability to develop embroidery software products.
These investments (software development tools, advanced computer systems e.t.a.) will contribute to the maintenance of the company's superiority in relative sectors with its basic product category (software for embroidery machines), such as Processing of Digital Illustration, Artificial Intelligence, Expert Systems and Administration of DataBase Systems.
- Development of e-commerce applications and presentation in the Internet.
The investments in crucial technologies are expected to provide extensive synergies in a basis of sales promotion, commercial policy, customer service and expansion in new markets, as well as to support indirectly other investment categories (e.g. Category 7)
Development of laser cutting and engraving systems
COMPUCON has signed an agreement with ITE (Institution of Technology & Research) and EΣΕΤΕ (Research, Technology & Education Support Company) for the systems development of cutting, engraving and elaborating materials with laser, as well as their viable incorporation in the global market. The innovation of the specific investment, which is expected to be realized through the establishment of a subsidiary company, is that it aims to the systems development with a significant low production cost, which is going to manage to collect soon an important global market share of laser machinery with low or medium capacity.
COMPUCON is expected to acquire an additional significant revenue source, since it will receive royalties to the sales through its global sales network. Additional revenues will be obtained from the important synergies in a turnover increase basis, since COMPUCON is able to provide integrated solutions, increase the possibilities to achieve cross-selling together with its traditional product lines.
Reorganization and Development of Distribution Network in U.S.A. & Asia
The expansion of sales in geographical areas constitutes the basic parameter of COMPUCON's strategy. Within this framework, the company has determined as an immediate priority its further strengthening of presence in "key" markets in U.S.A. and Japan, as well as the activation in China' s market, where the market trend shows that the growth rates will be significantly increased in the years to come. In order to support the above options COMPUCON has planned for the next three years several investments. The undertaking of the complete control of COMPUCON USA LLC and the realization of expansion investments in the local market, installation of integrated computer system to the facilities of the representative in Japan along with market research and creation of distribution network in China.
Equipment of Electronic Applications Laboratory
COMPUCON estimates that the complete modernization of the Electronic Laboratory composes a basic requirement for the maintenance of the innovative profile of the company and its capability to introduce pioneer solutions for the total needs of embroidery sector. Accordingly, the Laboratory is expected to become a cradle of developing new products lines.
Development and Commercialization of Medical Software
Further development and commercial success of Medical Software product category is included to the strategic choice of COMPUCON for differentiation. The company expects to obtain indirect benefits from the decentralization of profit resources, together with the strengthening of its reputation as a high technology company.
The above selections imply mainly investments in production equipment, aiming to the facilitation of the task of the Medical Software programmers team.
Development of specialized software for e-commerce in embroidery sector
This investment will be used for the commercialization of an extremely innovative idea, which approaches the need for provision of reliable and tested solutions in strategic intermediaries of retail business (e.g. big chains of hypermarkets or international clothing producers). It concerns the perspective of these enterprises to "equip" their electronic outlet with the potential of creating and ordering online embroidered materials of clothing/household/present.
It is estimated that with this immediate and pioneer activity COMPUCON will be able to enter into a market with a value of approximately USD 400 mil. within 2002.
The progress of Compucon's Investment Plan as at 30th June 2005 is outlined in the report below: