Staying in the Forefront of the Internet Age
TradeLink Talk

June 2000 - With the emergence of the Internet Age and "dot com fever", Hong Kong has followed the trend and plunged into the "sea of technology". Now, almost every sector of the local community is actively participating in this high-tech trend, with the commercial and industrial sectors being the most committed. However, a careful look behind the hype will expose the reality - Hong Kong is a "start-up" in the field of technology and there are very few local companies that are involved in the production of technologically advanced hardware.

However, Tec-Hill Company Ltd is one of them. The company was established in 1991 and specialises in the production of computer memory modules. It is currently one of the most important manufacturers of computer memory assemblies. Tec-Hill's products include all types of computer memory modules, CompactFlash(TM) memory cards, CPUs, hard disks and many others. After many years of development, not only has Tec-hill created strong partnerships with major silicon chip producers worldwide, it has also succeeded in marketing its products internationally, contributing to a US$150-million annual sales volume. In terms of quality, Tec-Hill was the first company in the memory industry to be awarded ISO9000 certification.

Using new technology
Since Tec-Hill does business with clients all over the world, lodging declarations is a vital part of their operations. Paulson Yau, Director of Tec-Hill, explains, "In the past, we had to have at least three people to handle declaration lodgments and the related paperwork. Although a trade declaration is a statutory transaction that we must perform, manually filling in all those forms is really a tedious job. But since we began using Tradelink's electronic lodgment service we can complete the entire process with just a few clicks. This convenience not only saves us a lot of time but also, with the simplification of the lodging process, allows us to handle the task with less manpower. The surplus manpower can then be re-allocated to other tasks, saving on our operating costs."

Apart from these obvious advantages, it seems that Tradelink's electronic services can also influence employees' working attitudes. Paulson notes, "After we started to lodge our declarations electronically, I noticed that the self-image of the relevant employees had improved greatly. I believe this is because this new mode of lodgment introduces to them a new kind of media, namely the world of the Internet and e-commerce. This exposure to a new media enables our employees to learn skills that are novel to them, thereby boosting their job satisfaction levels."

For a company where the main operation is the production of high-tech hardware, it is natural to rely on the use of information technology to maintain business communication. For instance, Tec-Hill has been using electronic mail to contact its clients ever since the technology became available. When asked about Tec-Hill's strategy in adopting the latest information technology, Paulson has unique views. "We should adopt every kind of device that will allow us to communicate more efficiently, whether these are telecommunications tools, e-mail or the Internet. However, while many of these communication devices will increase out profits, we also have to be selective in their adoption so as to achieve the greatest benefit," he says.

On-line security
It was this "open" attitude towards information technology that prompted Tec-Hill to become one of the earliest registered customers of TradeCard, a new payment alternative for international traders. Its advantage over conventional payment methods is that it simplifies the complex process that is currently involved in performing international trades. (For more details about TradeCard, please refer to Tradelink Talk, Issue 3, 1999).

Paulson points out, "Actually the objective of TradeCard is nothing new to us because, during the pre-Internet years, we still dealt with business partners all over the world. What is innovative about TradeCard is that it enables us to carry out these transactions in a whole new way. Since it is impossible for us to conduct a credit audit for every client, we have had to take many risks (such as bad debts) when we performed international transactions in the past. However, with TradeCard, I believe we will encounter fewer problems in this area. This is because the TradeCard network assesses the credit standing and other financial details of every enterprise that applies to be a member of the network. So, every TradeCard member can do business with another confidently because the network has become the mediator and reduced the risks involved. I believe that this advantage alone will help to increase Tec-Hill's profits by 20%."

An eye on the future
The Internet Age has had an immense influence on business operations worldwide. Being at the forefront of the local high-tech industry, it would have been unimaginable if Tec-Hill had not been a part of this trend. To Paulson, the Internet will become one of the future's most important communication channels, and Tec-Hill will actively explore any opportunities to expand their on-line business.

The first of the company's ideas is to open a "virtual showroom", which will introduce Tec-Hill's products and their prices directly to on-line customers. That way, Tec-Hill will not need to show all their products in a "bricks-and-mortar" showroom and costs will be reduced. Tec-Hill is also developing other Internet application solutions, such as the setting up of a virtual office that will allow its worldwide partners to have direct contact with the company's Hong Kong headquarters.

Paulson believes that the impact of the information age and fierce competition within the industry are natural developments in the business world - and businesses have to modify their operations to adapt to such changes. He also believes that as long as a business has an ample supply of good-quality manpower in the technology and management fields, then it will have no problem adapting to these changes. This is why Tec-Hill places a heavy emphasis on employee training and on creating a good working environment.

Looking to the future, in addition to continuing its efforts to train employees, Tec-Hill also plans to be listed on the Stock Exchange in an effort to raise more money for development. The company is also actively investing in the research and development of new technology, and hoping to develop its own patented products. Paulson says, "We are taking a 'cautious but active' step in the development of new technology so as to avoid taking too many risks. However, I believe that with more resources, we can create locally developed high-tech products that our customers will want to buy."

An emphasis on training, a "cautious but active" development strategy and a willingness to adopt the latest communication channels - this is how Tec-Hill is staying in the forefront of the Internet Age.