An empowerment deal, a new US office and the launch of SAP and risk management services - all in a year`s work for Ovations. But now it`s time to regroup, says MD Gys Hyman EARLIER this year, when seven-year-old specialist performance improvement consultancy Ovations recognised it had to diversify to improve its own performance, it decided to kill two birds with one stone. It would also conclude a deal that would enable it to meet the ICT Charter requirements for black empowerment through shareholding.

"Although the ICT Charter was a big driver for the deal, we decided to embrace it and find ourselves a real business partner," explains Ovations MD Gys Hyman.

In September, after a four-month process, a 30% share in Ovations was sold to Kunene Brothers Holdings (20%) and the National African Women`s Alliance (10%).

Although both groups have board representation, Dudu Kunene, chairman of Kunene Brothers Holding, has taken on the chairmanship of Ovations, and is on active retainer to the company. The other four Kunene brothers play a less active relationship-building role on behalf of the company.

THE NEW AT HOME…

Where the diversification comes in is that Ovations, which has typically focused on the local financial services sector, is looking to crack the government and parastatal sector, so to speak, with the help of the Kunene brothers.

"We`re very new to this game," concedes Hyman, noting his team`s current frustration at responding to a government tender, only to have the tender withdrawn later.

September saw the company diversifying in another direction, with the launch of its SAP and risk management practice offering, mainly in response to the needs of its financial services clients.

"We did a lot of market research before launching this practice. In addition to demand from our clients, we realised that SAP was in the process of introducing other vertical applications, such as a banking module, and this is where we will be directing our energies," explains Hyman.

The company plans to be a SAP service partner and risk management service partner within the next five years, a development dependent on staff certification by SAP, rather than a business plan that conforms to certain criteria.

The SAP and risk management practice offering is aimed at the financial services industry in particular, where companies are increasingly faced with the challenge of compliance to various local and international regulations, including FICA, FAIS, Sarbanes-Oxley and Basel II. "We anticipate this offering will be a good revenue line for us," says Hyman.

…AND IN THE US OF A

In a related move, Ovations last month announced its expansion to the US, where companies face a similar challenge. Its core performance improvement offering, delivered through process, content integration and change management, is to remain central to its US offering.

"We have three or four prospects at present, and expect to have our first client on board shortly."

And finally (yes, there`s more), Ovations has been selected by technology partner FileNet, of the US, as one of two international partners to help co-launch its Business Process Framework, used for rapid, cost-effective development of process-centric case management applications.

"We want to be as product-agnostic as possible, that`s why we are technology implementation partners for FileNet, IBM, K2.Net, Microsoft, and TIBCO (Staffware) - we want to be able to offer the best possible technology fit for our clients," notes Hyman.

He predicts that, in addition to compliance affecting the financial services industry, customer service improvement, with its cost reduction opportunities, and the need to renew legacy systems will spur business process management implementations.

Besides strategic clients SA Eagle, Mutual & Federal, Barclays and Absa, Standard Bank is in the process of engaging its services. In the telco space, Cell C is a client, and it is targeting another two telcos.

"We`re a young, performance-driven consultancy," Hyman says of the 60-member-strong company. "But for the immediate future, we need to direct our energies to bedding down the developments of 2005," he remarks.