In the run-up to the elections this fall, Data B. Mailservice in Leek did what they do best: print and mail millions of personalized ballots in a short period of time. In an NOS item, the innovative company gave its first look behind the scenes. As Data B. stands firmly on its own feet after several growth and renewal phases, NOM took its leave as shareholder in the same period. We look back and ahead with director Liana Klaster-Willems.
After more than two decades of involvement with Data B., it's an exit for NOM to reflect on. Prior to speaking with Liana, investment manager Allard van der Horst says, "It is exceptional for us to be associated with a company as a shareholder for so long. We aim to participate in companies for a maximum of seven to eight years. While there is no hard deadline, this duration of 21 years is unique.' His former colleagues must not have foreseen that in 2004, when NOM became a shareholder in Data B. Mailservice. At the time, the company in Leek had been active in the world of document flows since 1991. At the time, founder Bé Klaster was still at the helm, while daughter Liana had been brought in a year earlier to expand the production department.
Her joining the company was not a natural move. "I like to keep work and family separate, so I first went my own way in finance and mechanical engineering," Liana says. She joined Data B. in 2003 because she has a sharp nose for growth opportunities and knew that her father would be stepping down as director after a year. But things turned out differently. In order to grow, NOM came into the picture as a shareholder in 2004. A condition of the deal was that Bé Klaster remained at the helm for another five years. 'That was longer than I had anticipated,' says Liana soberly. 'But I was comfortable with Data B. and after a year I was used to the fact that my father was also my director. That's why I never regretted joining.'
Opportunity for culture change
Looking back, Data B. went through perhaps its most difficult years after the departure of Bé Klaster in 2009. According to daughter Liana, this was not only due to the then incumbent management. 'In that period we also lost a major customer who generated more than half of our turnover. In retrospect, that was a blessing, because such dependence is unhealthy. It makes one lazy. The departure of that customer was the opportunity for a cultural shift. Make conscious choices, focus, keep making an effort and always be sharp: to me, these are important conditions for healthy business operations, and at the time, Data B. really could have done better.'
Liana expressed her ambitions and ideas and - in addition to the production department - was put in charge of financial and technical affairs in 2012. When she bought into the company a year later, her say in the direction grew. 'From the moment I started working here, I have felt responsible for the company,' says the goal-oriented forewoman, who has been managing director since 2017. 'When I see opportunities, I want to act on them. I want to do more than just keep things tightly in place; I want to be able to go on, develop further. Innovation is important and for Data B. I saw plenty of opportunities. As soon as I bought in in 2013, we started investing heavily in new machines and software development. That was quite exciting, because imagine that after those difficult years we might have been too late with innovation. Fortunately, we once again proved to be a forerunner and have always maintained our lead.'
The bar is high
Allard was not yet involved in that crucial renewal phase as an investment manager - he has held Data B.'s portfolio for the last six years, following two predecessors - but he recognizes the strong focus on innovation. 'Besides their great reliability, the strength of this company lies in its ongoing development. They keep investing in modern machines, good people and technical progress, Thinking along with customers, being keen on opportunities, working lean and mean ... at Data B. they can deliver because they are always on top of things and set the bar high. This is how they keep their edge in a demanding market. Clever how they do that and all credits to the current management.'
As a shareholder, NOM is always a sparring partner, although Allard saw great independence at Data B. 'Liana knows all the ins and outs of the company and also when it comes to smart financial choices we don't have to explain anything to her,' the investment manager acknowledges. 'It's great that as an investor we could be significant in helping this wonderful company grow. After several renewal phases, Data B. is also so solid financially that we as NOM have little added value anymore. Three years ago the other major shareholder Bank Nederlandse Gemeenten was bought out and now there was room for a market-based deal to buy back NOM's shares. A businesslike decision at a fitting time.'
Room for development
'This exit is a logical step,' agrees Liana. 'We no longer need NOM's participation, so they are better off cashing in their shares and investing again in other Northern Netherlands companies. We have always been given every opportunity for development by NOM and other promising entrepreneurs deserve the same. Incidentally, I see around me that there are plenty of companies where there is still much room for improvement at the organizational level. Especially when it comes to keeping focus on where you want to go. That is where NOM may be able to provide even more added value, for example through a pool of specialists. The fact that I myself have good financial insight and can quickly calculate things for the long term has definitely helped us get to where we are now. Just like keeping a sharp focus, under all circumstances.'
Margins in Data B.'s market are sometimes tight, although Liana always puts quality and integrity first when tendering. 'Reliability is an essential factor in this business. If the focus in a tender is only on the lowest price, it requires concessions in security and quality. As a result of increasing price pressure, some suppliers are quoting so keenly that they can no longer guarantee safety and quality. We consciously choose to continue investing in quality and security; we have the responsibility to protect all the confidential data of customers and citizens. That comes with a price tag, but also a clear story about the importance of that security. After a number of data breaches at other parties, with much media attention, I need to explain that story to our customers less and less often.'
Continue to grow
The flow is good at Data B. How will they move forward now that all shareholders have been bought out? Liana already took a four-month sabbatical last year to get some things clear. It was good to discover that I am not indispensable. That period led to insights on both sides about my role in the company. My partner Steven Jansen is mainly concerned with IT and together we do the sales. I'm in production and finance, but we recently hired a financial manager to take over tasks from me. This creates more space for me to focus on vision for the future. We continue to innovate and yes, there are still ambitions to grow further, both through acquisitions and market expansion. For example, we are focusing more on other government suppliers and we are in the process of launching our product Bboxx, a custom-developed digital platform for citizens.'
Besides Bboxx, Data B. has another new product in the pipeline, but the ambitious entrepreneur can't say anything about it yet. Except that she thought of it back in 2013. 'At that stage, we were still far too busy innovating and strengthening our base. The focus all along was on our customers and what they need. That is still the case, but we want to make full use of our development space. That's why we are now having conversations with potential partners about rolling out that new product.' In addition, Liana (53) is already starting to think about future business transfers. 'That only plays out in the longer term, but I want to prepare well.'
DATA B. MAILSERVICE IN BRIEF
They are a major national player in the world of cross-media document flows. Customers are relieved of printing, enveloping and sending paper documents as well as all kinds of digital mail ranging from regular mailings, invoices or reminders to assessments or other confidential information via Mijn Overheid and DigiD. Where appropriate, digital payment solutions are also linked, for which Data B. developed in-house software.
The versatile physical and digital services are carried out from Leek for a wide range of customers: from SMEs to pension funds, insurers. research companies and housing corporations. Although Data B. is particularly active in the government market, for both municipalities and the Tax Office and other government departments. From tax returns and WOZ assessments to ballot papers: Data B. ensures that all confidential documents reach the citizen, physically and digitally.
With increasing digitization, innovation and the need for security, Data B.'s production is increasingly IT-driven. Among the seventy people working at the headquarters in Leek are twenty IT professionals. For development, an independent branch was established in Barcelona in 2016, where fifteen IT professionals focus entirely on innovation.
Despite the growth of digital document flows, paper continues to play a steady role. In fact, due to the corona pandemic, Data B. saw the share of digital documents in government fall slightly again from 31 to 29 percent. This is due to the need to reach all citizens, and that is not yet entirely successful through digital means. Moreover, digital alternatives sometimes still fall short, such as checking identity during elections.