If people are asked whether they know Yip In Tsoi and Company, most responses are negative. Even fewer of them know what Yip In Tsoi does, so its senior executive vice president, Supak Lailert, has made it his mission to have information technology (IT) recognised as both the company's "DNA" and the foundation of its image.

"We want people to think of us as professional information technology providers. It is the 'DNA' that will drive the company's business in the future," Supak says, adding that the company plans to become an integrated information technology producer in terms of development, provision and consultancy.

Despite the current lack of awareness of Yip In Tsoi in the wider marketplace, it is well known as an information technology solution provider by about 98 per cent of government agencies.

But it is driven to emerge from this existence as a virtual underground resource to sell itself as a provider of innovative IT products and solutions by the forces of globalisation - not the least of which is competition.

People older than 40 or 50 may have heard of Yip In Tsoi. It was once a leading mining operator and mineral trader focusing on tin. However, the business was terminated in 1983 because of market sluggishness and the company began to diversify. It saw great opportunities in information technology.

Nowadays, the company's main business is divided into eight groups, including IT solutions, hi-tech, manufacturing and distribution, event organising and media and insurance. It manages all its businesses through 10 companies: Thailand Computer Centre, Yipintsoi Consulting, Tangerine, Yipintsoi Solutions, AES Group, Yip In Tsoi and Jacks, Sissons Paints (Thailand), AB-Solute, Saridpol and Enrich Broker Co.

Last year, Yip In Tsoi's revenue was Bt1.4 billion, and 95 per cent of this came from IT-related business. The group's consolidated revenue - including revenue from its subsidiaries Yip In Tsoi and Jacks, Tangerine, Yip In Tsoi Consulting, Thailand Computer Centre and AES Group - was about Bt2 billion, 75 per cent of which was IT-related.

In the past, the company's diversified businesses included finance and securities (as a shareholder) and trading in Vietnam. However, the finance and securities business was one of 56 such companies shut down after the 1997 financial crisis and the company's trade in Vietnam suffered many operational problems which forced an end to that business plan.

While these dwindled, the IT business flourished. Yip In Tsoi was a pioneer trader, importing computer equipment and undertaking the design and installation of IT systems. It was the first importer of an early computer designed for accountancy systems, in 1960.

Supak started work with the company in 1997, when the financial crisis hit. As a new employee, he was not deeply involved in helping the company survive its drop in sales.

"We faced a drop in sales due to the economic crises, but there was no great effect because we did not have overseas loans. We could not place demand for payment from a state-run agency worth about Bt100 million," he says, adding that the company was classified as a good customer for surviving without the need for a repayment "haircut".

Earlier, Supak graduated in electrical engineering from Chiang Mai University and gained a master's degree in business administration from San Diego State University, in preparation for taking the helm of the family business.

He worked as an engineer after his graduation, mainly on an electronic data interchange system for the Customs Department.

After the financial crisis passed, Supak was a key management influence in finding a new business direction for Yip In Tsoi. It joined US-based computer giant Sun Microsystems to form a subsidiary called Sun Microsystems (Thailand). It focused on importing an open computer system made by Sun that allows users easier computer access. It features a higher technology system than conventional computers and is also more functional, in that it directly serves customer demands.

However, due to its higher technology, it was very difficult to convince both the company's staff and its customers to accept the system. Users who were familiar with old, conventional systems rejected the new technology and it was hard to find technicians for equipment maintenance.

"We spent a long time convincing them [both staff and clients] to change to the new system," Supak recalls.

However, his working experience in government agencies helped him to introduce the new system to the Comptroller-General's Department, which remains one of his clients.

Currently, half of Yip In Tsoi's customers come from government agencies and the rest are private sector organisations who are satisfied with the new system and the after-sales service.

The open computing system has allowed the company to increase its total sales from more than Bt400 million in 1997 to Bt1.6 billion last year. The total value of the information technology market in Thailand is now about Bt6 billion per year.

Supak wants information technology to be the company's flagship business in the future. To support this ambition, he says it is close to making a sale worth between Bt4 billion and Bt5 billion.

Supak now controls about half of the group's business and his management focus is on human resource development and business growth. The group spends an average of Bt10 million per year on training alone.

Yip In Tsoi aims to grow by an average of 15 per cent to 20 per cent per year, and to achieve this Supak has drawn up a three-to-five-year business plan to streamline the group and capitalise upon synergies within its operations.

"In the past, each business unit competed, one against another, which sometimes resulted in lower profits than expected. The synergy strategy was kicked off last year to strengthen our working efficiency," he says.

Supak is also planning to list some of the group's subsidiaries on the Stock Exchange of Thailand, and the company has hired a financial adviser to consider which of them is ready for listing.

"However, we want to maintain the family business management as we have many assets and no non-performing loans," he says.

Achara Pongvutitham

The Nation