Digital Healthcare Solutions- successful strategy behind a successful enterprise

[Johannesburg, 07 March 2006]

Five years ago, Comparex's, QEDI and Bytes Technology Group's MediSwitch Holdings merged to form a company with high ambitions to become a viable business and a respected player in the healthcare software industry. Today, Digital Healthcare Solutions (Pty) Ltd. (DHS) is a giant in this sector, boasting a leading marketplace position, largely as a result of a successful merger with an effective strategy in place.

During the five years since the merger, DHS has achieved exceptional results. One of the catalysts of this success was the early recognition by DHS management for a methodology that would enable the newly formed team to create a unified future strategy. After extensive investigation, DHS decided to implement the Strategic Thinking Process devised by Decision Processes International South Africa (DPI SA), a leading consultancy in the field of strategic processes and a member of the DPI World Wide Group.

"Many ventures of this nature never achieve the expected synergies following a merger," says Hennie du Plessis, CEO at DHS. "One of the reasons is that integration efforts are often generally directed at merging operations, while less effort is applied to integration of the strategic thinking that will mould the two operations into one cohesive whole. Prior to the merger, we realised that we needed to put a business strategy in place that would respond effectively to the expectations of the shareholders and that would also ensure that the new entity became an effective player in the market."

Foremost to the process, DHS had to find a single driving force for both businesses, as this was fundamental for their strategy going forward. Says du Plessis; "For two businesses that are similar, but also very different in terms of business models, products and services, this proved to be quite a challenge. The external process facilitators of DPI played a crucial role in assisting us to look at our business objectively and decide on the most effective approach to reach our primary objectives. The outcome of this debate was not only the result of the advice and input that we received from these experts, but also because the consulting company was not intimately involved in the business with no vested interest in protecting their position or steering it towards a particular conclusion. DPI was very effective at keeping the process transparent and on track."

Greg Carolin, shareholder in DPI SA says; "From the start of the process, we worked closely with DHS to identify and understand, not only their own, but also their competitors’ business objectives, concepts and areas of excellence. Through a solid understanding of these aspects, DHS was able to determine the business objectives of their competitors and thereby gain a reasonable advantage over them - which is evident in the company’s remarkable success to date. Such an advantage should form the goal of any business strategy, as a business cannot imitate a competitor’s tactics, but rather strike at the heart of competitors’ areas of excellence by changing the ‘rules of play’ in the industry."

Says du Plessis; "Our selected driving force created the necessary synergy between the various components of our business and brought much needed focus to our various operations. Additionally, it made an enormous difference in our ability and determination to bring excellent service to the market, ultimately distinguishing us from our competitors."

Today, DHS is a major force in its market, with a commanding two-thirds share in its software products and handling the majority of all electronic claims generated in South Africa. The company’s financial results have also been excellent and they saw a year-on-year improvement not only in turnover, but also in profits. "The success that we have seen over the last five years has certainly been the result of extraordinary teamwork and disciplined operational management," says du Plessis. "I have no doubt that our close working relationship with DPI has created the context for strategic thinking that we did not have before. It also allowed us to create the operational focus that enabled us to complete the fundamentals of the merger and deliver a strategy that has made the emerging business a successful enterprise."

Carolin concludes; "DPI plays a potentially valuable role in helping executives focus on the issues and strategies that could have a major impact on the generation of long-term profit. In the case of a merger, it is even more important for companies to identify a strategy going forward, as this will have a direct impact on the sustainability of the company. We are certainly proud of the success that we have experienced at DHS, which reiterates our strong position as one of the leading consultants locally when it comes to business strategy."

About Digital Healthcare Solutions (Pty) Ltd.
Digital Healthcare Solutions (DHS) provides transaction switching and business management software for the healthcare industry. Our vision is to be the IT solutions provider of choice for the SA health industry, and to be the first and only port of call for all its information requirements. Our core purpose is to deliver solutions that make our customers’ businesses more efficient and profitable.

About Decision Process International
Decision Processes International South Africa (DPI), is a leading consultancy in the field of Strategy and a member of the DPI World Wide Group. Through its considerable market expertise and experience and international affiliation, DPI provides critical thinking technologies relating to strategy, strategic product innovation and e-strategy.

For more information please visit the DPI Website on www.decisionprocesses.com

Editorial Contacts

Opportun(at)e
Lance Rothschild
E-mail : lance@opportunate.co.za
Tel No : +27 (0) 11 782 5439

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