ENTREPRENEUR WATCH

David Hodgdon, president and CEO of PCG, Portsmouth Computer Group. Michael McCord photo

Founded in 1996 by David Hodgdon, Portsmouth Computer Group has survived economic turmoil during the dot.com bust earlier this decade and a highly competitive marketplace for IT management services.

PCG may have been one of the first in the region to provide managed IT services "" to become a virtual IT department for all types and sizes of small businesses "" but Hodgdon told Ventures that the company's success has resulted from being customer service savvy and as technologically sophisticated as giant IT outsource vendors.

"If you don't keep up, you're out of the game," Hodgdon said about PCG's drive for continual training. "What I knew three years ago is different now."

PCG, which has 12 highly trained and experienced employees to serve more than 300 business customers within an hour's drive of Portsmouth, was recently recognized as a Microsoft Gold Partner. Hodgdon admits such an achievement won't bring in more customers but it's an important step for a company of his size because it shows the level of dedication and professionalism.

On returning to core values:

In the past, we've focused on training but we closed our training center when we realized this wasn't where the market was going. The customer want us to be the go-to person for their IT needs. We tried to be a Web designer but that wasn't what we are. We used to sell 20 brands of notebooks but now we are down to two to three brands because it allows us focus on what we do best "" being an IT adviser offering different levels of customized service plans.

On educating the customer:

We understand that our clients are reluctant to spend money but we try to help them understand the importance of being proactive, of not trying to build a house (IT system) in one day. You are going to spend money but it's important to look at the whole picture.

We have succeeded in some part because we have very high retention and referral rates "" despite the fact that people aren't as loyal as they used to be.

On the new work place:

When we first started, the Internet barely existed and e-mail wasn't a vital business tool. Now people are addicted to these machines and the work pace is almost ridiculous. There is less patience and the time line to respond has lessened because the IT is so important to their bottom line.

On challenges for success:

If you don't keep up, you're out of the game. It's like the Boston Celtics (which recently made major roster changes) "" you can't do the same thing over and over and expect success. Yesterday, I was at a show in Boston and realized that what I knew three years ago is different now.

One of our major challenges is to optimize our service schedule to create more predictability for our customers and ourselves. We can't react to problems like a fire drill because it's pretty easy to get lost and not deal with important, strategic business issues.

On his evolving role:

It's more about managing people and the business. I miss part of the daily working to solve customer problems on site but I'm comfortable with where I'm at. My focus is now on the business side, making payroll and using our revenues wisely to make the business more effective and profitable.

On entering the consumer market:

With Click'n Fix (the home computer specialist spin off), we are poised to do well in that market. We spent a year of focused marketing to establish a brand name and we have the infrastructure, technology and expertise to make it grow fast, to compliment the PCG business. It's about 10 percent of our overall business but I believe there will be a market explosion and local consumers will find our prices and service hard to beat.