Technology tools help Latin managers flourish in today's New Economy.

As Latin American businesses take center stage in today's New Economy, executives are relying on a steadily growing array of technology tools. From enterprise-wide internetworking solutions to specific applications on an individual desktop, these new tools allow managers to make better decisions, streamline their operations, improve customer service and enhance accountability.

For example, new customer information techniques like data mining allow companies to identify previously hidden customer relationships, providing new sales and marketing opportunities. Meanwhile local area networks (LANs) and Intranets are helping Latin businesses improve their internal communications, and lower the cost of doing business.

Throughout the world, manufacturing, service, retail and distribution companies are rushing to implement new e-commerce solutions and capitalize on the Internet's potential to lower costs and build revenue. An August report from International Data Corp. (IDC), a consulting firm, shows that U.S. businesses are spending heavily to integrate the Internet into their internal and external business processes -- an approach that many Latin firms are also following.

"Today, corporate Internet spending is an investment that directly impacts the strategic direction of organizations," said Anna Giraldo Kerr, IDC research manager. "The strategic impact remains, but it has shifted from reducing costs to the transformation of business models."

IDC expects web spending on IT products and services to more than double from US$119.1 billion in 2000 to $282.5 billion in 2003. While U.S. businesses will spend more on Web-related IT services than hardware this year, the importance of hardware should not be underestimated.

"Hardware vendors play a critical role in the ebusiness supply chain," says Kerr. "Their products enable the interface and access of Web technologies. Although it may appear that Internet-related hardware is at the bottom of the food chain, without it, there would be no Internet activity."

Internet access and Web hosting will contribute to growth in the services space. Spending on software will grow faster than any other type of Web IT spending, increasing at a compound annual growth rate of 43% from 1999 to 2003.

In Latin America, DC forecasts continuing expansion of personal computer (PC) shipments, in keeping with worldwide growth of about 15% from last year. Worldwide growth far exceeded that of the United States in the second quarter of 2000.

With Latin American spending for hardware, software and e-commerce applications on the rise, managers are using their powerful tools to seize new business opportunities and achieve higher levels of profitability.

Acer Latin America: Enabling the Internet in Latin America

Having repositioned itself as an Internet-enabling company, the Acer Group, which had revenues of US$8.5 billion in 1999, is playing a key role in bringing thousands of Latin Americans online. Innovative sales strategies launched in Mexico and Argentina have produced stellar results for the Taiwan-based global company's Latin America division, fulfilling its mission to "provide the freshest technology for everyone, everywhere."

Peter Tan, vice president of sales and marketing, explains it this way: "We refocused our business from product management to sales, marketing and customer service. We're now a customer-centric business, communicating directly with the end user."

The transformation has paid off handsomely. Sales growth this year in Latin America is projected at 65%, up from US$280 million in 1999 to an anticipated $450-$470 million for 2000. By comparison, the industry growth rate is 15%. It's feasible for Acer, the No. 3 computer company in Latin America, to attain the No. 2 position this year, Tan says.

Unlike other companies, which sometimes compete by cutting prices and flooding the market with products, Acer tackled its mission holistically, focusing on end-to-end service.

In 1999, Acer Mexico teamed up with Telmex and Bital and BBV banks to sell Acer computers to employees and the public. Using a proprietary database, Acer provided seamless logistics and fulfillment services to ship computers directly to buyers within 48 hours. Acer affiliates also provided in-home installation. Mexican customers were thrilled with the streamlined, quick turn around. In six months, more than 130,000 units were sold.

This year, Acer has implemented a similar program in Argentina. Working with the Central Bank, Acer was selected as one of the primary suppliers to participate in the "Argentina Digital Project," created with the goal of installing one million computers within two years. Customers take out low-cost loans with 36-month payment plans directly from the Central Bank. Ultimately, the effort will add thousands of new Internet users in Argentina, enhancing Buenos Aires' fame as the capital of the Internet start-up.

Similar programs are under way in Chile and Peru, and they are being developed for Brazil and Colombia.

In Argentina, Brazil and Colombia (and soon in Mexico), Acer introduced "the two-hour express notebook solution," guaranteeing to fix a customer's problem within 120 minutes, or to provide a loaned notebook in more challenging cases.

"We are pioneers in this kind of customer service with proven success cases in countries like Australia, Singapore, and Taiwan, and the first in Latin America," says Tan.

Acer's regional dual headquarters are in Mexico and Miami, but 520 employees at in-country divisions and manufacturing plants throughout the region provide significant support in Argentina, Brazil, Chile, Colombia, Peru, and Venezuela. Central America, the Caribbean and the rest of the region are served from Miami.

In keeping with its "freshest technology" mission, Acer Latin America has launched two products with great appeal for the business market: The TravelMate 600, the world's first notebook with a built-in rewritable CD-RW, and the Veriton FP, a flat-panel screen multimedia PC whose tiny footprint is ideal for banks, hospitals or other cramped work environments. For more information, please see www.acla.acer.com. Contact Tan at [e-mail] or 305-392-7000.

CLAdirect

With its unequaled market knowledge and reputation, CLAdirect is the leading provider of internetworking solutions for Latin America and the Caribbean. Since 1997, CLAdirect is highly involved in the region's Internet infrastructure development, executing public and private projects that decrease the Digital Divide (non-connected social segment).

"We provide state-of-the-art Internet infrastructure technology and the services required to optimize that technology: network design, consulting, configuration, monitoring and technical support," says Andres Martinez, director of business development in Miami. CLAdirect has offices in Venezuela and Colombia and is planning to open offices in Argentina, Brazil and Mexico.

CLAdirect's clients are Internet service providers (ISPs), telcos, carriers, e-commerce and Internet concerns, systems integrators and several Fortune 500 companies. "They choose CLAdirect because of our expertise, diligence and competitive pricing" says Martinez. "They trust us. We provide them with IP-Technology and support it with manufacturer-certified engineers. We have our own communications lab where we test and use the same technology we sell to our customers."

Recognized by customers and manufacturers alike for competitive pricing, pre and post-sale support, and detailed knowledge of shipping and order fulfillment, CLAdirect provides Latin America with a technology platform for the future.