Tuesday September 14th, discover a new version of our website. With a modernised visual identity, it is our first shop window and responds to 3 keywords:
+ user-oriented: thanks to an improved browsing experience.
While waiting for its launch, watch the teaser video!
And from tomorrow, go to www.econocom.co.uk to discover our new live website!
Founded in 1990, Trams is a UK award-winning IT solutions provider benefiting from long-standing partnerships with Apple, HP, Lenovo, and Dell. The company offers a wide range of services to its B2B customers from defining needs, configuring environments, installing, and supporting hardware. Trams also provides all maintenance and recycling services for end-of-life products together with cloud hosting solutions for data storage and remote working.
Trams employs around 40 people based in London and serves large international companies and well-known blue-chip brands. The company reported in FY20 revenue of £42 million.
By strengthening its footprint in one of its core Countries, the acquisition of Trams illustrates the announced restart of Econocom targeted acquisition policy to accelerate its growth path from 2021. Partnering with a company having premium vendor relationships fits perfectly into the group’s strategy to provide an attractive global distribution offering. In parallel, Trams will benefit from an enhanced client proposition to its clients leveraging on Econocom technology management and financing capabilities.
The agreement grants Econocom an initial majority stake with the founders and key managers remaining fully committed to drive growth further benefiting from the synergies of the combined platforms.
Warren Peel, Managing Director of Trams said: «All Trams teams are delighted to join the Econocom group and benefit from its support to help us accelerate our development. We anticipate a great joint synergy potential, both on the commercial front and through the addition of new value-added expertise (Services and Financing in particular) that will certainly allow Trams to quickly change dimension».
Frances Weston, Managing Director of Econocom for UK and USA, said: «We are very pleased with this transaction, which will significantly strengthen our presence in the United Kingdom, a strategic development area for the group. We are also delighted to resume a new cycle of external growth after two years of consolidation. This acquisition opens a new era for Econocom as a Digital General Contractor».
About Trams
Trams Ltd is an award-winning independent IT solutions provider, servicing large international companies and household brands. With strong vendor relationships and an in-depth knowledge of industry technology Trams can deliver tailor-made solutions and be the leading IT commodity supplier of major organisations.
We are entering a new era of work. The recent switch to remote working has forced us to reinvent the way we work when face-to-face meetings are no longer possible. According to ITProPortal, 1.7 million people in the UK worked from home before Covid, but due to lockdown restrictions, an estimated 20 million people have had to relocate to home offices.
Organisations are now thinking about how to move forward, and looking at both flexible work arrangements as well as ensuring a safe return to the office. Despite the challenges, we now have the unique opportunity to fundamentally improve the way people work, wherever they are.
So, what is the workplace of the future going to look like? How will employee experience change? What will success look like for those embarking on the journey of transforming the workplace?
As with most things in life, there is no one size that fits all. Different work environments have different needs. Manufacturers, retail shops and schools each have their own ways of communicating, dealing with customers, and generating business value. They each face different pressures today and they’re each going to react differently to changes in the future.
What ties them all together is an increasing reliance on digital technology to keep employees safe and maintain productivity.
The pros and cons of remote working
According to a recent survey from BCG, 86% of UK employees working remotely have experienced a positive impact on their work. Among the top 5 positive impacts, 59% said they enjoy having reduced commute time. This was followed by more flexibility on working hours (45%), feeling safe due to social distancing / hygiene protocols (39%), increased control and autonomy (19%), and decreased distractions (18%).
But real challenges still need to be addressed. The same survey reports that 79% of UK employees experienced at least one negative impact on their work. 30% said they experienced blurred boundaries between work and home life while 29% felt more distracted at home. 22% also suffered from inadequate work space at home, anxiety and depression or feelings of loneliness.
Overall, 75% of employees have been able to maintain or improve productivity on their individual tasks vs. 55% on collaborative tasks.
Ensuring connectivity to your mobile workforce
Remote staff often work from different places and heavily rely on mobile devices and laptops. By making mobility a key part of your workflow strategy, you enable efficiency and offer more flexibility.
With BOS, our mobile-as-a-service solution, you can equip your employees with the latest devices in no time, while benefitting from end-to-end services. Deploying mobile technology with a subscription-based model will help you make savings and keep your employees engaged, connected and secure through Covid and beyond.
Creating smart workplaces
Providing remote workers with the right technology and ensuring a safe return to the office is critical to business continuity. Companies that will survive are those that think strategically and have a long-term vision for the future of work. With Econocom, you can easily reorganise your office on a regular basis and implement intelligent workplace solutions, all through a simple subscription plan.
From mobile devices to office fitout, we help you accelerate your digital transformation to preserve staff safety and enhance productivity. This ensures that as your business evolves, your workspace does as well.
What the future holds
Remote work software, like mobile work tools and virtual reality conferencing, should become the preferred form of communication – even over face-to-face meetings. Artificial Intelligence (AI) is also likely to play a major role in managing remote staff.
These advancements might put companies more at ease. The transition to managing a remote workforce might be daunting, but with the right tech and our support, it can be a seamless process.
The BCG survey reports that 67% of UK employees who worked remotely since Covid believe a hybrid model of remote and in-workplace work is ideal for them and their colleagues. This kind of model allows for the benefits of working from home plus the human connection, in-person relationship building, and increased visibility enjoyed in the workplace.
Instead of resisting the change, companies should improve their remote work policies and capabilities by going digital. If you’re looking for ways to engage and protect employees while preserving your cashflow, our Econocom team will be happy to help you.
Behind this mysterious question lies the concept of Total Cost of Ownership.
In basic terms, this means that there are significant hidden costs that are part of the life cycle of any equipment, from solar panels to self-checkout. The costs for maintenance, upgrades, training, repairs, security, insurance etc can have a considerable impact on your budget, as they are often underestimated at the time of purchase and exceeded in the long term.
“The TCO concept is like the submerged part of the iceberg: 90% of the giant block of ice is invisible to the eye because it is located underwater.”
Buying will always be more interesting than renting. Or will it?
This preconceived idea comes from the real estate world. But what is generally true for buying real estate, doesn’t apply to equipment depreciating in value over time such as IT, cars or professional equipment. For these assets, renting is the right choice.
With an as-a-service model, the management of hidden costs is transferred to a third party. This is not only an important financial advantage, but also an added value in organisational terms. It is not the core business of companies to maintain IT or to upgrade tech equipment.
It is possible to save 20 to 30% of the total amount by integrating the complete life cycle of the asset. Via an as-a-service model, you save costs by not having to deal with recycling and data wiping and you always have up to date tech. In case of breakdown or outdated equipment, you receive a replacement device right away and don’t have to support heavy maintenance costs.
TCO makes you aware of hidden costs
Gartner estimates that the TCO of a PC purchased at £660 ranges from £1,940 to £3,180 per year. The question of value is therefore central.
Switching to as-a-service models allows companies to reduce costs and have the right flexibility when business increases or decreases. A leaner organisation becomes more agile and keeps its cash for core activities.
The number of buyers looking for as-a-service models is constantly increasing, in order to benefit from the following:
A controlled TCO is also a way to support companies in their digital transformation.
A subscription model helps avoid unnecessary or inefficient purchases thanks to controlled financial planning, greater productivity and the latest hardware and software.
Taking the time to question the TCO means taking the necessary action to optimise your development strategy. It is difficult to anticipate the future when your assets prevent you from taking off. By calculating the TCO for each of your fixed assets, you can have an overall view of the future room for manoeuvre available to you.
To reduce your TCO, an as-a-service model is the ideal solution for all organisations.
Econocom – an international provider of subscription models for servicing the technology needs of companies, as well as providing the financing and an e-waste plan for them and TechInclusionUK – a new social enterprise enabling digital inclusion – have joined forces to securely wipe and refurbish tech donated by Econocom. Notebooks and tablets have been refurbished to be distributed out to young people in education across Tower Hamlets, through a collaboration with the Tower Hamlets Education Partnership.
Shiny and new is great but it is time companies, corporations and their C-suite start taking accountability for their e-waste and energy efficiency. At Econocom, we believe there is secondary value in everything. As the world has gone through a massive change with the pandemic, what becomes clear is that the COVID-19 crisis has shown the effects of the digital divide in the education sector.
Thousands of young people lost a significant amount of contact with school, with those digitally excluded being impacted most unfavourably with little or no access to computer equipment. Students, but also teachers, felt out of the loop due to the lack of sufficient technological resources and digital skills. The most adversely impacted families were those who suffered from a loss of income and in turn struggled to support their children with the new normal of home online learning. At Econocom, we think it’s possible to bridge the global digital divide if we promote innovative ways of doing business and this great partnership is one way of achieving this.
COVID-19 has been the greatest challenge the world has seen in decades, resulting in a dramatic acceleration in the need for digital transformation. Companies had to react quickly and switch to remote working, without all the necessary capital and human resources in place.
Unforeseen investments, including laptops, apps, cloud computing and security, have had to be generated. Due to declining revenues, fixed costs and deferred payments from customers, lack of cash has become a big problem.
In light of the cost pressure due to uncertain business and economic conditions, more and more companies are opting for “as-a-service” models and moving to OPEX for their IT investments.
Immediate need for digital transformation since the pandemic
To strive in this economic downturn, companies were forced to fast-track their digital transformation efforts. A survey by Gartner in September 2020 found that 69% of the board of directors accelerated their digital business initiatives.
Technology driven companies have been leading the path to a faster recovery.
To meet employees’ needs and customers’ demands, IT and Procurement leaders should continue transforming their operating models and investing in key enablers, such as cloud computing, intelligent automation, artificial intelligence, blockchain, and advanced data and analytics.
A recent report from IBM shows that 36% of business executives now assign high or very high priority to digital transformation compared to 17% in 2018. In 2022, this percentage is predicted to reach 62%. Another study by Nasscom, reports that more than 70% of CIOs are prioritising digital spend and moving to OPEX. In 2005, IT expenditure was 34% CAPEX vs 66% OPEX compared to 24 vs 76% in 2019-2020.
Cash is king and the emergence of as-a-service models
Having a favourable cash flow is particularly important in times of economic decline, when credit is harder to obtain. If a business can continue to ensure the regular inflow of liquid capital whilst controlling costs, it will be much better placed to ride out the storm of lower sales. In this context, the Device-as-a Service (DaaS) model of acquiring hardware by paying rental payments over time to preserve cash reserves is gaining significant traction in the technology sector.
Below are the main advantages given by the DaaS model:
In 2015, according to TechRepublic, no major PC manufacturers were offering DaaS options to their customers, compared to 65% now.
Most companies also opt for subscription-based models to better meet customers’ expectations. The flexibility offered by as-a-service models means consumers pay for things as and when required, with some accessing goods or services they wouldn’t otherwise be able to afford. And with the transition from ownership to ‘access’ comes the opportunity to build a circular economy by innovating and saving costs and energy while conserving natural resources and reducing e-waste.
New business priorities
With all this happening around us, how much have long term business priorities really changed?
Asked about the most pressing of these priorities, C-suite executives ranked “workforce safety and security” number one, closely followed by “crisis management”, “cost management” and “cash flow management” (IBM reports).
Most companies are now switching to OPEX models to better manage their costs and optimise their cashflow.
In times of crisis, cash is king. But the current environment presents a big opportunity for digital innovation, and business survival will mostly depend on strategic IT investments.
To help navigate the tension between financial cuts and critical investments, shifting from CAPEX to OPEX could be a good alternative; it frees up funds that organisations can allocate to core business activities.
As society becomes more mindful of the effect it has on the environment and takes steps to lessen this impact, we are beginning to see the business world follow suit. While the majority of organisations have traditionally relied on a linear business model, it has become clear that this way of operating follows a pattern of ‘take-make-waste’. Consequently, an increasing number of enterprises are beginning to explore the circular economy in order to become more sustainable. Underpinned by a transition to renewable energy sources, the circular economy seeks to redefine growth and focus on positive society-wide benefits.
Through a shift in perspective, businesses have the power to re-design the way our economy works by designing products that can be ‘made to be made again’ – powering the system with renewable energy and changing the way we make, buy and consume goods.
Four essential building blocks – how businesses can embrace the circular economy
Embracing a circular economy mindset is about keeping resources and assets for as long as possible, extracting the maximum value from them, favouring access to services over ownership and regenerating materials to create further value. As such, it’s not a sector-specific approach: the circular economy is something that every business can adopt. And the benefits of such a system are undeniable. Research undertaken by the Ellen MacArthur Foundation, a pioneer in circular methodology, predicts that widespread adoption of circular principles could see a 48% reduction in carbon dioxide emissions by 2030.
When it comes to business implementation, the circular economy centres around four essential building blocks: design (material selection, products that are designed to last and easy end-of-life sorting), new business models, reverse cycles (return materials to the soil or put them back into the industrial production system) and enablers (policy makers, educational and financing). By building these core competencies into their design strategy, companies can pave the way to a more sustainable future – innovating their business strategies to facilitate product reuse, capitalise on new opportunities, develop new skills in delivery chain logistics, and work with enablers to lead by example in improving resource productivity.
In essence, embracing a business-focused circular approach is a simple case of re-assigning assets to create further value. The plastic sustainability initiative launched by plastic recycling facility Continuum at the London 2012 Olympics is one such example. Plastic bottles were produced with high levels of renewable content, such as plant-based PET, making it easy to recycle them into new bottles. As a result, 15 million bottles were collected at the Olympic and Paralympic Games and returned to the shelves as new bottles within six weeks.
Circular financing models
As-a-service or subscription models – as opposed to traditional ownership – act as the access point for businesses wanting to join the circular economy. Such models allow organisations to fund circular economy projects without the burden of large upfront investment. Not only do they include lifecycle services, but they can also balance the investment by relieving the burden on capex while delivering on the business’ objectives. This then frees up the company from the burden of diverting funds from other services to remain operational and agile. Additionally, when the as-a-service contract expires, the equipment will be collected, recycled and wiped as part of the subscription in order to close the loop and create further value. Favouring access over ownership is key to embrace a circular economy mindset.
Going beyond the ‘green’ – non-environmental business benefits of joining the circular economy
When it comes to business success, key drivers centre around financial gain and future viability. By using a circular economy approach in an organisation, not only can businesses reduce their carbon footprint, but they can capitalise on the value of their resources to save money, improve performance and build new relationships. A more eco-friendly approach can help businesses stay ahead of the curve when it comes to government legislations; allowing them to keep pace with new requirements and exceed industry standards.
Revolutionising company strategy through material re-use is the first step in establishing a brand as an innovative organisation. Circular companies have a reputation for being positive disruptors in the market; and as such, have a huge advantage when it comes to attracting talent and engaging employees. Above all, by adopting a circular approach, companies can migrate from the ‘take-make-waste’ mindset and create sustainability for the future – both for the environment and for their own ongoing viability.