Risk Factors

Major external and internal factors that may have affected the Company’s
operations can be summarized as follows:

Risk from Technological Changes

The development of and changes in information technology take place
rapidly. As a Total Enterprise Solution Provider, the Company offers
hardware and software products as well as various services including
software and system development, training and consulting to medium and
large organizations whose requirements also change in line with
developments in technology. The Company therefore monitors technological
changes closely to keep up with trends and identify new business
opportunities. It also aims to become an expert Total Enterprise
Solution Provider by creating added value and offering a variety of
products and services. Since most sales are made through advance orders
from customers, the risk of obsolete products is reduced.

Risk from Dependency on Human Resources 

Human resources are an essential factor in operating an information
technology business. Professionals with specialized knowledge and
expertise are needed to provide consultancy and develop successful
business. Hence, the Company’s policy is to give priority to personnel
management and to provide stable career paths. It regularly organizes
training to develop its staff’s skills and potential. In order to
maintain good morale and retain its personnel, the Company has set
appropriate remuneration plans which are competitive with other
companies in the same industry. In addition, it has created a pleasant
working environment and appropriate welfare offerings, as well as
fostering good relationships with and between its employees.

Risk from Dependency on Few Vendors

In its current stage of development, the Company continues to be a
dealer of major vendors of mini-computers, open system computers and
servers. In the future, changes in these vendors’ businesses or sales
policies may have an impact on the Company. The Company realizes this
risk and has therefore expanded its business by seeking hardware
products from other vendors. It has also increased the variety of
hardware products by becoming a dealer of network systems and multimedia
products. In addition to hardware products, the Company is a dealer of
various application software products including information technology
management, database system, application program development, data
back-up and recovery, internet infrastructure, enterprise resource
planning (ERP) and Business Intelligence (BI) software.

At present, the Company is a dealer of hardware and software products
for various major vendors such as IBM, Hewlett-Packard, Cisco Systems,
SANYO, Canon, Hitachi, ORACLE, Microsoft, SAP and Information Builders.
This has greatly reduced its dependency on products from a few vendors.

Risk from Competition

The Company is a dealer of hardware and software products for major
vendors who continue to increase the number of their resellers in order
to maintain and win more market share. This has resulted in serious
competition among business operators in the same industry and, most
importantly, decreased profit. In order to reduce this risk and
differentiate itself from other dealers, the Company has shifted its
business from being just a hardware and software product dealer to a
Total Enterprise Solution Provider. This involves:

-   Enhance product lines to cover customer enterprise-wide requirements
    in each sector such as Financial Service Business and Industrial
    factories.

-   Developing business and business intelligence software consistent
    with the needs of businesses in Thailand. Examples are tax, cheque
    and payroll system software solutions which interface with ERP
    software, and analytical software which supports hotel and hospital
    management decisions.

-   Providing a comprehensive information technology outsourcing service
    which includes hardware, software and services for those customers
    who do not wish to manage their own information technology.