News & Activities 29 March 2023

Bluebik unveils 5-year business plan for steady and exponential growth

Bluebik unveils 5-year business plan for steady and exponential growth, revising 2023 growth rate upwards to 120% and foreseeing a new high of performance for the 7th consecutive year

The 5-year “Growth at Scale” plan includes accelerated collaboration of Bluebik, VDD and Innoviz to pave the way for long-term exponential growth.

The projected growth rate for 2023 is confidently revised upwards from 100% to 120%, a new high of performance for the 7th consecutive year.

Businesses are encouraged to become digital-first companies and build competitive edge with digital technology.

Bluebik Group Public Company Limited (BBIK), a leading consultancy on end-to-end digital transformation, unveils its “Growth at Scale” strategy aimed at speeding up collaboration between Bluebik and subsidiaries. The strategy follows its acquisition of two big tech companies namely Vulcan Digital Delivery Company Limited (VDD) and Innoviz Solutions Company Limited (Innoviz) to secure its intention to maintain exponential growth. Now Bluebik is confident that synergy with the companies will increase its service capacity, open up new business opportunities and support unlimited business expansion in the country and elsewhere. The integration will also enable its core services to meet the rapidly increasing demand for digital transformation which is reflected by the revenue backlog of Bluebik and subsidiaries worth as much as 979 million baht as of December 31, 2022. Of the backlog, 454 million baht is with Bluebik, 157 million baht with joint ventures and 368 million baht with VDD and Innoviz (which became the backlog of the parent company when their acquisition was completed in February).

In 2023, Bluebik starts its inorganic growth due to the completed takeover of VDD and Innoviz. It can record the revenue and profit of both subsidiaries from the first quarter of 2023 onwards. Moreover, the group of companies is enjoying tax privileges from the Board of Investment (BOI). Thus, Bluebik foresees its business will grow by as much as 120% this year, higher than its earlier anticipated 100% growth rate. 2023 will be the seventh consecutive year of the new high of its performance after 2022 when its revenue and profit broke their records for six years in a row with its impressive compound annual growth rate of 70%. This shows the exponential and stable growth of Bluebik.

Pochara Arayakarnkul, Chief Executive Officer of Bluebik Group Public Company Limited (BBIK), said that in 2023 the parent company will emphasize synergy with all its subsidiaries to create long-term, stable and inclusive growth in accordance with its “Growth at Scale” plan. The group will improve its end-to-end services to cover medium-sized and large-scale clients and enter new business with growth potential. It will increase recurring income by using the strengths of all companies under its umbrella to support services, boost the growth of its revenue and profit and find business opportunities through cross-selling and up-selling within the group.

“After the increase in tech talents from 350 to 800 to solve their shortage, the acquisition of VDD and Innoviz starts the inorganic growth of Bluebik this year. From now on, the company will grow with stability and expand its services locally and internationally. It will have its shares added to the SET100 index as planned,” Mr. Pochara said.

For its “Growth at Scale”, Bluebik has the three following ways.

Firstly, the synergy of all companies under the same umbrella will pave the way for long-term growth. Bluebik will accelerate its collaboration and cooperation with VDD and Innoviz to increase the profit margin and revenue per head of both companies. On its part, Bluebik will actively expand its services to medium-sized organizations and governmental organizations which are the major clients of VDD and Innoviz. In addition, Bluebik will seriously promote collaboration among all companies in the group.

Secondly, the group will develop its capabilities to take up projects worth hundreds of millions of baht each and compete with world-class consultancies. The synergy between Bluebik and its subsidiaries, solution development experiences and applications capable of serving hundreds of millions of users will enable Bluebik to take up projects worth hundreds of millions of baht each in the markets where there are limited numbers of players, especially the overseas markets that are several times bigger than Thailand. Bluebik has the edge because of its competitive price structure. With these factors, Bluebik will become a leader in the technology industry and the only Thai digital transformation consultancy that is comparable with foreign companies.

Thirdly, the group will start new business activities, strengthen its core services through JV and M&A and actively expand overseas. The group will expand its business through joint ventures (JV) as well as mergers and acquisitions (M&A). This will focus on the business interests that have growth potential and will further strengthen core services such as big data management and the development of the digital platforms and solutions which perfectly serve different industries. Moreover, the company also plans to continuously expand its overseas business. It is looking for business opportunities in the United States.

Business expansion under the “Growth at Scale” plan of Bluebik supports the “Digital-First Company” concept of future businesses which will be driven by innovations and technologies and can deal with changes in the world of business and the New World Order. Digital-first companies can relate to and meet the demand of stakeholders in the new business ecosystem which consists of companies, customers, partners, and communities.

Bluebik would like to share the 5 key capabilities of digital-first companies, which can strengthen the business ecosystem and boost the efficiency of organizations as follows.

  1. The development of super-apps – Digital-first companies must be able to develop the super-apps that can effectively serve considerable users and the lifestyles of the new generation and create inclusive growth with business partners.
  2. Augmented intelligence – It is greater than artificial intelligence and can be applied effectively for competitive edge and advantages over competitors.
  3. Digital immunity and trust – They heighten the cyber security and reliability of organizations and reduce the risks of cyber attacks and related damage.
  4. Sustainability technology – Organizations can successfully implement an environmental, social and governance (ESG) strategy by applying technology throughout their operations. For example, organizations can store considerable data in digital platforms and reduce paper consumption. Communication channels and online platforms can be introduced to communities and societies and blockchain technology can be applied to guarantee transparency in business.
  5. Agile operations – Agile operations suit organizations of the new generation because they can quickly adapt to changes in the world of business. With agile operations, organizations work fast, are more flexible, maintain their competitiveness and smoothly complete their digital transformation.

“Amid fierce competition, businesses need external experts. The organizations that are too slow to catch up with fast business in the digital era can incur enormous opportunity costs and may be out of business or lose leadership in their respective industries. Bluebik is determined to expand its business and services to follow business trends and help clients accommodate to changes and grow strongly. It expects to seal a new deal in the near future,” Mr. Pochara concluded.