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Omania E-Commerce is looking at playing a significant part in Oman’s drive towards becoming an e-society

While he was being interviewed for the post of managing director of Omania E-Commerce, Mohammed al Harthy asked the directors about their vision for the company. “The sky is the limit they said, and that was the moment when I made up my mind to quit Shell Oman Marketing Company and join this start-up,” reminisces al Harthy. He joined Omania E-Commerce in October 2005.

Getting a head start
Omania E-Commerce is a 100 per cent Omani owned company with a majority stake being held by Omantel and Oman Fibre Optics. The company has a franchise agreement with Tejari to provide technology solutions in Oman. An initiative of the Dubai Government, Tejari is the only business-to-business (B2B) marketplace in the entire Middle East.

Having been in existence since June 2000, Tejari has survived the dot com crash. The company also has the distinction of having had the first lady CEO in Dubai – Sheikha Lubna al Qasmi (who is now a minister in the Dubai Government).

Given the fact that a B2B model is a completely different ball game compared to a physical transaction, why should companies move onto a new way of doing business? “It brings in efficiency as it is not a paper based process. It also takes away the hassle of making calls, sending faxes and all the attendant paper work as everything is electronic.”

Tejari, which has a presence in the UAE, Jordan, Kuwait, Lebanon, Syria, Iraq, Saudi Arabia and Oman, gives customers enviable reach. “It is a regional marketplace.” The portal is looking beyond the Middle East to South Asia, and is talking to prospective partners in India and Pakistan. As vendors compete for business, there is price undercutting leading to savings for buyers.

Omania E-Commerce also brings about transparency in transactions as vendors see what is on offer and the eventual outcome. The portal offers reports like vendor analysis and sales trends, helping buyers to manage their procurement processes better. For suppliers, the platform offers reach and savings in terms of travel costs and the cost of soliciting buyers.

The e-factor
Tejari is seen as an important input in the e-readiness of Dubai. The Economy and Planning Department of Dubai Government has made it rule bound for all companies to have an account with Tejari. Thus Tejari has 50,000 firms listed on it in Dubai, helping the e-readiness of the country. Omania E-Commerce hopes to play a similar role in Oman.

With the launch of e-Oman initiative and the efforts of the Ministry of Commerce and Industry to provide e-governance, the sultanate is gearing itself towards becoming more IT-savvy. “The entry time was important. With the government and private sector moving towards an e-society, IT is definitely the next big wave.”

Omania E-Commerce has been off to a good start with Oman Aviation Services signing up as one of its first clients. With the market having huge potential, the company expects this to be first amongst a growing list of customers. The process of becoming an Omania E-Commerce customer is simple. Buyers and suppliers can come on board by making a one-time payment, after which they pay an annual fee for the service. The company trains buyers on operating the software (which takes a day). In addition, it provides customers with online support and educates them about the best available practices. “The benefits of the system easily justify the investment,” says al Harthy.

Omania E-Commerce gives customers the choice of a variety of options. The options include a reverse auction, wherein suppliers bid for a product online in real time or an option wherein quotes are sealed and opened by a committee as in a tendering process.

Omania E-Commerce looks at the various commodities that a company needs and then moves on from the ones which can be easily procured to the ones which are relatively more difficult to get. For example, products, which have multiple suppliers, are easier to procure than a single source product.

Change management
While the technology part of the business remains an easy one, the challenge for the business is to handle the process of change management and deal with people. “The process of getting a client on board here is as difficult as anywhere else in the world. It is not easy for someone to change from a comfor-table way of doing things to a new system. But once the commitment is there on the part of the management, then things become easier.”

At times, suppliers have apprehensions about losing a business by coming online or about eroding profits. But, al Harthy points out, once they are convinced that the trade off is one between a small erosion in profits and a big jump in volumes, they are more than eager to sign up.

With dot coms crashing like nine pins in the 90s and with the B2B model proving to be a poor cousin to the real marketplace, what kind of a chance does Omania E-Commerce stand? “We are confident about the venture as Oman is gearing towards an e-society. Secondly, Tejari has been around for six years and has the technical competence and knows the market.” The backing of big corporate houses like Omantel and Oman Mobile is another source of strength.

The backend
The company has a 12-member team drawn from reputed companies in variegated sectors like the oil and gas sector, investment companies and technology companies. Tejari’s 100-member team provides a back up to the team in Oman.

With the right team in place, Omania E-Commerce is aggressively pursuing customers. The marketing efforts range from cold calls to making sophisticated demonstrations. “Our strategy is to bring on board customers who realise the benefits of the platform. A number of companies have evinced interest in the solution and we are sure that they will come on board in due course of time.” But the company is in no hurry to expand mindlessly. It is choosy about taking on suppliers for whom it may not have immediate buyers.

With Omania E-Commerce championing a new way of doing business, does it also translate into a new age management system shorn of hierarchies and formalities? “If I walk you through our office you will find an office that is casual but not crazy. It is not a very hierarchical organisation and this goes along with the values of the company.” Omania E-Commerce has recently renovated its office. The walls have been painted in shades of deep blue - a sign of energy and dynamism. The company is now looking at painting corporate Oman in similar hues.