By Vernadette T. Joven
Computerworld Philippines
October 1, 2008

In starting a business, they say that one must start with either what you are familiar with or what interests you in order to build a strong foundation, and that is what Adhy Nugraha did 11 years ago when he put up AG Datacom Philippines Inc.

Bringing together his data communications experience and his affinity toward IT, Nugraha’s company entered the computer-telecommunication space offering alternative solutions that enable companies utilize their IT infrastructure more efficiently.

“When my wife (whom I met here when I took up my MBA degree in De La Salle University) decided in 1997 to raise a family here, I used my datacom experience and the help of other investors to establish AG Datacom,” recalls Nugraha, who is currently the president of the company.

He started with a money-back guarantee campaign to capture a market share that was majority held by a Singaporean and Malaysian entity at that time. “Since their price is so high we made sure that our’s is reasonable, plus we also offered a money-back guarantee so there’s no risk on the (part of the) customer,” notes Nugraha.

Nugraha explains that being in the software and systems integrator segment gives them the luxury to offer such an agreement since they don’t incur a lot of cost in the maintenance and service of the products. “If the system works, they pay; but we install first without down payment. When everything is running then that’s the time they settle their account with us.”

Mixed Markets

Among their earliest product which remains a bestseller until now is their computerized call accounting system or what others refer to as a call billing system. This software is integrated in the leased lines to log (details such as time, day, and telephone number), monitor and trace back all calls.

AG Datacom’s product line up also includes network security, monitoring and support solutions, and workforce optimization solutions. The company also offers specialized datacom solutions, such as a hospital management system, asset management system, property management software, warehouse management system, and real estate manager.

With The Hongkong and Shanghai Banking Corporation (banking), Digital Telecommunications Philippines Inc. (telco) and Telus International (business process outsourcing-contact center) as their top three major clients, AG Datacom also caters to other industries such as hotels, hospitals, real estate, manufacturing, education and even government institutions.

The company currently has over 2,000 clients ranging from medium to large companies in the country, some of them based overseas. “We have a mixture of clients because our solutions like the call accounting system can be used across all industries,” Nugraha explains.

Complimenting its range of products is a 24/7 customer service and prompt response time. “If a customer complains, we must answer immediately. We should not run away from the responsibility,” stresses Nugraha. To maintain its level of service, AG Datacom makes use of various technologies that allow remote support and access to the problem areas to determine the appropriate action that needs to be taken immediately.

Service Expertise

After establishing a market share as an IT solutions distributor and systems integrator, AG Datacom began shifting its focus on its after sales service, specifically on technical support, which became their core competency as they expanded their business.

“The growth of our company actually began to pick up during Y2K in 1999 when we received a lot of orders because most of our products were Y2k compliant already, which we were able to prove when we do tests and provide technical support. So they really bought our products,” Nugraha recounts.

Six years later, as their staff and client base steadily grew they decided to branch out their business abroad, starting in Saipan in 2005. Right now, their local market spans from North (starting in Baguio) to South (all the way to Davao), including international clients in Saipan, Indonesia, Malaysia, Brunei, Hong Kong, Japan, and Kuwait.

“I think one of our significant achievements is how we’ve grown as a company in terms of customer base. Internally, it is how we maintained to treat each other like a family, where anybody can be approached anytime (which is also how I would treat my staff),” Nugraha reveals.

This openness is also reflected in the way they handle their clients and how they value the trust given to them. “If there’s a problem we don’t run away and that’s the reason why our clients come back to us (for repeat business),” relates Nugraha. “For me, I would rather prefer to deal with problems than sell many products because that means customers will interact with us, and if we help solve their problems they will trust us more.”

Believing that there is no 100% fool-proof product, be it hardware or software, Nugraha says that addressing a problem is just a matter of how to deal with it at the onset of a problem. “For us, when it happens, we face it because the more you ignore a problem the more you tend to push your customers away—which is bad for the business.”

Keeping up with the times

Despite enjoying a steady base of clients, AG Datacom is still faced with key challenges, particularly technology and workforce, which he addresses by conducting market and product research as well as manpower training and development.

“IT is a very unpredictable and continuously evolving field and we have to cope with the changes in order to remain competitive. So I follow the IT updates through news, attend IT exhibitions like CommunicAsia in Singapore and CeBIT in Germany to get new products that we can offer, and gather leads from our field agents to find out what the clients need, where we lack and why,” Nugraha shares.

Another aspect Nugraha focuses on is ensuring the quality of their manpower resources by providing them adequate training and sending them to seminars or short courses when needed. Like the rest of the industry, Nugraha is also a victim to the continuous poaching of IT talents, but he doesn’t mind, saying that he completely understands the need of IT professionals to work abroad.

“I know that there is always risk; but if they leave and work with another company and then eventually come back, we can benefit from whatever experience they gained. That is how I look at it. It is also a way for us to improve,” Nugraha points out.

Looking ahead, Nugraha is eyeing on strengthening their international client base and tapping other local market segment. “We plan to enter the Micronesia market; so the projects that we are working on right now will enable us to establish presence in Palau and Guam, as well as enable us to expand our market here like working with some government institutions.”

Though he is preparing for the company’s expansion in the Visayas and Mindanao regions, Nugraha is setting his sights beyond local shores as far as the AG Datacom brand name is concerned. “My dream is to carry the AG Datacom brand name internationally, like AG Datacom Vietnam or China and achieve a global presence— not just having clients abroad. So I’m also looking at business-friendly countries like Vietnam where we can invest in,” Nugraha concludes.

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