A couple of weeks ago, I joined KEA, New Zealand's Global Talent Community.
It's estimated that approximately 24% of New Zealand's highly skilled workforce now resides 'offshore' - a figure that is higher than any other developed nation. So KEA tries to leverage the global presence of so many Kiwis to provide a link to international markets: promoting trade, attracting inward investment and migration, and stimulating business activity and innovation.
Today, I joined the KEA Middle East chapter. It has 188 members. I visited the UAE just four weeks ago and plan to do so again soon. Having a ready made community of almost 200 ex-pat Kiwis to connect with in the region, will provide insights into local business culture and potentially new routes to market.
KEA's aim is to make New Zealand the most globally connected nation on earth. It is a network I intend to make great use of.
Monday, 30 April 2007
Sunday, 29 April 2007
The HBI Software Story - Part 1
The weekend's newspapers are full of stories of NZ companies looking to move production offshore. Fisher & Paykel's announcement on Thursday was followed up by similar warnings from Sleepyhead, Skellerup Industries and others on Friday. This is not new however.
Back in 1999 - 2000, I experienced similar issues in London. Namely, a lack of available skilled software developers, rising costs and the emergence of new low cost offshore competition. The situation was as threatening to me then as the high NZ dollar and low cost manufacturing operations in places like China are to businesses in New Zealand today.
My response was to travel to India in 2000 to investigate the potential. I recruited two software developers in Mumbai and they relocated to London. It was clear to me however that more could be done.
I worked with a couple of Indian based entrepreneurs in London who had good connections back home in India. I returned with them to India in 2001. We visited Delhi, Mumbai, Indore and Bangalore. I returned to London convinced.
I drew up a business plan and engaged a recruitment agency who I had been introduced to during my visit. In September 2001, the first office in Sunrise Chambers, Ulsoor Road, Bangalore was opened. HBI Software Private Limited was born.
The HBI Software team now includes system architects, designers and developers.
They produce great work. HBI Software built the Canon Europe Print Services portal back in 2002. They re-designed and then developed the United Nations global Intranet in 2003. In March 2006, they delivered the United Nations Procurement platform (AGI) for Africa.
And they continue to build great applications. Just check out Smart Analytics. And the soon to be launched 'Pingar'.
What are the challenges of working in an offshore environment? The answer to this question will appear in The HBI Software Story - Part 2.
Back in 1999 - 2000, I experienced similar issues in London. Namely, a lack of available skilled software developers, rising costs and the emergence of new low cost offshore competition. The situation was as threatening to me then as the high NZ dollar and low cost manufacturing operations in places like China are to businesses in New Zealand today.
My response was to travel to India in 2000 to investigate the potential. I recruited two software developers in Mumbai and they relocated to London. It was clear to me however that more could be done.
I worked with a couple of Indian based entrepreneurs in London who had good connections back home in India. I returned with them to India in 2001. We visited Delhi, Mumbai, Indore and Bangalore. I returned to London convinced.
I drew up a business plan and engaged a recruitment agency who I had been introduced to during my visit. In September 2001, the first office in Sunrise Chambers, Ulsoor Road, Bangalore was opened. HBI Software Private Limited was born.
The HBI Software team now includes system architects, designers and developers.
They produce great work. HBI Software built the Canon Europe Print Services portal back in 2002. They re-designed and then developed the United Nations global Intranet in 2003. In March 2006, they delivered the United Nations Procurement platform (AGI) for Africa.
And they continue to build great applications. Just check out Smart Analytics. And the soon to be launched 'Pingar'.
What are the challenges of working in an offshore environment? The answer to this question will appear in The HBI Software Story - Part 2.
Saturday, 28 April 2007
The Bay Blogs!
I received an email from Annie Hill, Bay Of Plenty ICT Cluster Coordinator at Priority One this morning.
It says that the Cluster is putting together a list of URLs for bloggers to facilitate communication within the BOP ICT sector, as well as connecting Cluster members with ICT bloggers outside the region.
It's the way to go Annie!
Blogging is a great way to interact with the online ICT community. That should of course read, any online community.
Blogs I read tend to have an IT bias and a Microsoft one at that. We are Microsoft Partners, but learn little from their standard PR releases. Too corporate and too grey. Microsoft appears though to have encouraged their own employees to blog, and these blogs are far more open about where Microsoft technology sits and importantly, how they view the wider IT community and current developments within the converged space.
Blogs I look at in this regard include:
Steve Clayton - CTO Microsoft UK Partner Group
Claire O'Halloran - Microsoft UK Partner Group
Frank Arrigo - Microsoft GM, all Technical Communities in Australia
Rod Drury - NZ Software Entrepreneur
Over the next few weeks, I looking forward to adding some BOP ICT Cluster blogs to my list.
It says that the Cluster is putting together a list of URLs for bloggers to facilitate communication within the BOP ICT sector, as well as connecting Cluster members with ICT bloggers outside the region.
It's the way to go Annie!
Blogging is a great way to interact with the online ICT community. That should of course read, any online community.
Blogs I read tend to have an IT bias and a Microsoft one at that. We are Microsoft Partners, but learn little from their standard PR releases. Too corporate and too grey. Microsoft appears though to have encouraged their own employees to blog, and these blogs are far more open about where Microsoft technology sits and importantly, how they view the wider IT community and current developments within the converged space.
Blogs I look at in this regard include:
Steve Clayton - CTO Microsoft UK Partner Group
Claire O'Halloran - Microsoft UK Partner Group
Frank Arrigo - Microsoft GM, all Technical Communities in Australia
Rod Drury - NZ Software Entrepreneur
Over the next few weeks, I looking forward to adding some BOP ICT Cluster blogs to my list.
Friday, 27 April 2007
BT Supports SaaS
In the UK, BT has launched BT Applications Marketplace, a home for SaaS applications.
It enables Independent Software Vendors (ISVs) to publish and promote their software to small businesses via a dedicated Applications Marketplace portal.
BT is assisting developers by providing a set of APIs and SDKs with a wide range of interfaces, including .NET. The API functionality that is currently available includes SMS, voice call, conference call, presence, authentication, user profile, and location. To date, more than 1,700 developers have registered for BT’s SDKs.
BT Business plans to actively monitor the feedback and ratings generated by end-users and identify ISV partners whose applications could become part of “Ideas Lab” – its software incubator programme. BT Business will then select certain partners from Ideas Lab to further develop their product and ensure their applications are reliable and secure in a service-based delivery model. These new “services” will ultimately become part of the BT product portfolio and will be supported by its sales and marketing operation, including the UK’s largest sales force dedicated to small businesses.
The BT Applications Marketplace initiative has been actively supported by Microsoft UK and a number of joint initiatives are being built around the platform.
In New Zealand, it would be great to see such an initiative launched. With our distance to market issues, SaaS is one area of application development that should be encouraged. The availability of a NZ-centric SaaS Applications Marketplace would clearly help.
It enables Independent Software Vendors (ISVs) to publish and promote their software to small businesses via a dedicated Applications Marketplace portal.
BT is assisting developers by providing a set of APIs and SDKs with a wide range of interfaces, including .NET. The API functionality that is currently available includes SMS, voice call, conference call, presence, authentication, user profile, and location. To date, more than 1,700 developers have registered for BT’s SDKs.
BT Business plans to actively monitor the feedback and ratings generated by end-users and identify ISV partners whose applications could become part of “Ideas Lab” – its software incubator programme. BT Business will then select certain partners from Ideas Lab to further develop their product and ensure their applications are reliable and secure in a service-based delivery model. These new “services” will ultimately become part of the BT product portfolio and will be supported by its sales and marketing operation, including the UK’s largest sales force dedicated to small businesses.
The BT Applications Marketplace initiative has been actively supported by Microsoft UK and a number of joint initiatives are being built around the platform.
In New Zealand, it would be great to see such an initiative launched. With our distance to market issues, SaaS is one area of application development that should be encouraged. The availability of a NZ-centric SaaS Applications Marketplace would clearly help.
Thursday, 26 April 2007
Alan Ball RIP
As a supporter of Blackpool FC, the premature death of Alan Ball yesterday comes as a shock. Blackpool was his first club and he went on to make 116 league appearances for the team.
Alan Ball graced the Seasiders midfield in the 1960s and he was the youngest member of the England side that lifted the World Cup in 1966. He later had a season as Blackpool manager.
With Blackpool qualifying for this season's Division 1 Play-offs, the atmosphere around the Club for the past couple of weeks has been fantastic. Let's hope the Seasiders win promotion in Alan's memory. A truly great and gifted player.
Alan Ball graced the Seasiders midfield in the 1960s and he was the youngest member of the England side that lifted the World Cup in 1966. He later had a season as Blackpool manager.
With Blackpool qualifying for this season's Division 1 Play-offs, the atmosphere around the Club for the past couple of weeks has been fantastic. Let's hope the Seasiders win promotion in Alan's memory. A truly great and gifted player.
Outsourcing is Good!
New Zealand suffers a 'Skills Shortage'. The Government says so, and so does business.
New Zealand suffers from low productivity. The OECD says so. And so does business.
These, and other statistics, are related.
New Zealand is a small economy with a small population. As it seeks to evolve from being a low value, primary / commodity goods economy to one that is knowledge-based and capable of competing with international competition, the growing pains are real. And so are some of the responses.
Even though many businesses cannot expand because of the unavailability of skilled labour, business leaders often view outsourcing (and particularly offshoring) at best, as unrealistic; at worst as unpatriotic. In the USA and the UK, outsourcing and offshoring are viewed as an essential tool to grow a business and manage resources.
There is some evidence that NZ manufacturers are now viewing outsourcing and offshoring as a necessity. The strong dollar has probably helped that mood, particularly amongst exporters. The same should apply to the service sector.
I declare an interest. I am currently talking to a NZ-based company about offshoring some development work to Bangalore. The upshot is that their inability to outsource this work locally is having a major impact on their development plans. Without an updated application they cannot grow. And they cannot find a NZ development company with the skills to do this, in the timescale required.
Outsourcing and offshoring for them is the smart thing to do. They get an application to meet their requirements AND they get to grow their business. With no end to the current skills shortage in sight, such partnerships not only help individual businesses to grow, but also bring wider benefits to the NZ economy as a whole.
Global relationships are built and new opportunites appear. If the price of an overvalued NZ dollar is to force NZ businesses to look to outsource and offshore some of their work and so develop overseas relationships, then maybe long-term, it is a price worth paying.
New Zealand suffers from low productivity. The OECD says so. And so does business.
These, and other statistics, are related.
New Zealand is a small economy with a small population. As it seeks to evolve from being a low value, primary / commodity goods economy to one that is knowledge-based and capable of competing with international competition, the growing pains are real. And so are some of the responses.
Even though many businesses cannot expand because of the unavailability of skilled labour, business leaders often view outsourcing (and particularly offshoring) at best, as unrealistic; at worst as unpatriotic. In the USA and the UK, outsourcing and offshoring are viewed as an essential tool to grow a business and manage resources.
There is some evidence that NZ manufacturers are now viewing outsourcing and offshoring as a necessity. The strong dollar has probably helped that mood, particularly amongst exporters. The same should apply to the service sector.
I declare an interest. I am currently talking to a NZ-based company about offshoring some development work to Bangalore. The upshot is that their inability to outsource this work locally is having a major impact on their development plans. Without an updated application they cannot grow. And they cannot find a NZ development company with the skills to do this, in the timescale required.
Outsourcing and offshoring for them is the smart thing to do. They get an application to meet their requirements AND they get to grow their business. With no end to the current skills shortage in sight, such partnerships not only help individual businesses to grow, but also bring wider benefits to the NZ economy as a whole.
Global relationships are built and new opportunites appear. If the price of an overvalued NZ dollar is to force NZ businesses to look to outsource and offshore some of their work and so develop overseas relationships, then maybe long-term, it is a price worth paying.
Working with Allan Bollard
This morning, the New Zealand Reserve Bank increased its official interest rate to 7.75%.
Economists with far greater insight than I can offer, will no doubt already be advising their clients as to the likely impact on home-owners, small businesses and the export sector. Specifically, I would expect them to be looking at the impact on short to medium term exchange rates and their effect on New Zealand's global competitiveness.
Being dependent on most of my own income from offshore clients, a high NZ dollar hurts The WH Consultancy. By outsourcing much of our development work to HBI Software in Bangalore however, we are able to partially hedge the impact on the business. That's because the reduced return on inbound revenues caused by the high NZ dollar is matched by a reduced level of outbound costs.
My own view is that NZ business has to get used to a high NZ dollar for some time to come. When the correction does come, it will no doubt be steep. But when?
'Thinking Global' is normally associated with 'Thinking Export'. My own conviction is that thinking global means looking at the whole business process including supply chain, HR and funding, as well as of course sales. The development of a global business strategy can help begin to address the negatives that a highly valued dollar brings. It helps make business less NZ-centric and more able to adapt to the pressures operating in a small economy can bring.
Economists with far greater insight than I can offer, will no doubt already be advising their clients as to the likely impact on home-owners, small businesses and the export sector. Specifically, I would expect them to be looking at the impact on short to medium term exchange rates and their effect on New Zealand's global competitiveness.
Being dependent on most of my own income from offshore clients, a high NZ dollar hurts The WH Consultancy. By outsourcing much of our development work to HBI Software in Bangalore however, we are able to partially hedge the impact on the business. That's because the reduced return on inbound revenues caused by the high NZ dollar is matched by a reduced level of outbound costs.
My own view is that NZ business has to get used to a high NZ dollar for some time to come. When the correction does come, it will no doubt be steep. But when?
'Thinking Global' is normally associated with 'Thinking Export'. My own conviction is that thinking global means looking at the whole business process including supply chain, HR and funding, as well as of course sales. The development of a global business strategy can help begin to address the negatives that a highly valued dollar brings. It helps make business less NZ-centric and more able to adapt to the pressures operating in a small economy can bring.
Wednesday, 25 April 2007
dot.com revisited
Over the past few months, the pink pages (that's the financial ones in Europe) have been talking up the new dot.com era; the generation that consists of Web 2.0, Mashups, Google and YouTube. Social networks are the new messiah and Web 3.0 & 4.0, the promised land.
I thought it would be interesting to revisit the past.
In 1999 - 2000, HB Internet in London was 'BT e-business Solution Partner of the Year'. We worked closely with BT's Webworld team to develop a range of web-based products including WebWorld CustomWeb and WebWorld EasyStart websites for their SME customer base.
Part of our Partnership with BT involved engaging with potential BT business partners in the dot.com space. One such potential partner was called VerticalNet. VerticalNet was a well financed (US$ hundreds of millions) US dot.com start up that focused on building vertical marketplaces and supply chain solutions. I visited their offices in Brick Lane, London. They were massive, loaded with high tech equipment, highly paid staff and high expectations. The only ingredient they lacked was operational revenue.
I took a look at their NASDAQ ticker today - they are now known as Vert. They are still afloat. That is the good news. They appear however to be a shadow of their former self. On the basis of their operations then, I am not surprised.
Seven years on and a lot has changed in the Internet space. Increased broadband, much greater acceptance and use of key web applications and protocols means that the online world in now a much more integrated element of peoples lives and business. High expectations are now more readily matched by high deliverables and high returns.
The first dot.com era was an exciting time, but one that was ultimately doomed. Today, the online world is much more mainstream and much more measured. The new dot.com era is here to stay.
I thought it would be interesting to revisit the past.
In 1999 - 2000, HB Internet in London was 'BT e-business Solution Partner of the Year'. We worked closely with BT's Webworld team to develop a range of web-based products including WebWorld CustomWeb and WebWorld EasyStart websites for their SME customer base.
Part of our Partnership with BT involved engaging with potential BT business partners in the dot.com space. One such potential partner was called VerticalNet. VerticalNet was a well financed (US$ hundreds of millions) US dot.com start up that focused on building vertical marketplaces and supply chain solutions. I visited their offices in Brick Lane, London. They were massive, loaded with high tech equipment, highly paid staff and high expectations. The only ingredient they lacked was operational revenue.
I took a look at their NASDAQ ticker today - they are now known as Vert. They are still afloat. That is the good news. They appear however to be a shadow of their former self. On the basis of their operations then, I am not surprised.
Seven years on and a lot has changed in the Internet space. Increased broadband, much greater acceptance and use of key web applications and protocols means that the online world in now a much more integrated element of peoples lives and business. High expectations are now more readily matched by high deliverables and high returns.
The first dot.com era was an exciting time, but one that was ultimately doomed. Today, the online world is much more mainstream and much more measured. The new dot.com era is here to stay.
Tuesday, 24 April 2007
The Bay's Vision
I had coffee this morning with Mike Dennehy, CEO of Vision Software. Vision Software is based locally in Mount Maunganui. They have been around since 1988 and today focus on developing Property Management and Corporate Real Estate Management Software.
One of the benefits of working in a community of our size is that it is not too difficult to connect with people working in our space. Mike was guest speaker at the last BOP ICT Cluster meeting and he then shared his vision of business development and export opportunities for Bay of Plenty-based software businesses.
A lot of what Mike had to say could have been scripted from one of my own company presentations. Mike provided practical advice on making funding applications to FRST and NZTE and shared his own experiences of establishing a presence in Australia for Vision.
We discussed one of his key points this morning. In order for NZ software companies to make any impact in an overseas market, that company has to make a real effort to spend time in that market. This is an expense that the company has to bear, but a necessary one to establish whatever sales channel and technical support model has been identified.
Within our local BOP ICT Cluster and also Export BOP, there are a small number of software businesses that are directly engaged in export. The Cluster, in particular, provides a framework for the whole ICT sector to meet up on a regular informal basis. From these meetings, bilateral meetings such as that with Mike this morning can flourish. Exporting can be quite a lonely place. Sharing experiences with others in this space certainly helps. You realise you are not alone.
One of the benefits of working in a community of our size is that it is not too difficult to connect with people working in our space. Mike was guest speaker at the last BOP ICT Cluster meeting and he then shared his vision of business development and export opportunities for Bay of Plenty-based software businesses.
A lot of what Mike had to say could have been scripted from one of my own company presentations. Mike provided practical advice on making funding applications to FRST and NZTE and shared his own experiences of establishing a presence in Australia for Vision.
We discussed one of his key points this morning. In order for NZ software companies to make any impact in an overseas market, that company has to make a real effort to spend time in that market. This is an expense that the company has to bear, but a necessary one to establish whatever sales channel and technical support model has been identified.
Within our local BOP ICT Cluster and also Export BOP, there are a small number of software businesses that are directly engaged in export. The Cluster, in particular, provides a framework for the whole ICT sector to meet up on a regular informal basis. From these meetings, bilateral meetings such as that with Mike this morning can flourish. Exporting can be quite a lonely place. Sharing experiences with others in this space certainly helps. You realise you are not alone.
Monday, 23 April 2007
Smart Analytics Adds More Research & Analysis
The HBI Software and HBI Sales teams in Bangalore have added 15 new Competitive Intelligence reports to the Smart Analytics portal.
This new series of reports focuses on companies engaged in the Computer Hardware and Software CI space. The research and analysis that makes up the reports has been generated by HBI Sales. The development team at HBI Software have 'web-service' enabled the reports through the use of Smart Tags.
The Smart Analytics portal is now fully integrated into the boxed and OEM versions of Microsoft Office 2007 Suite and Internet Explorer 7.0. Check it out under the Research Option.
This new series of reports focuses on companies engaged in the Computer Hardware and Software CI space. The research and analysis that makes up the reports has been generated by HBI Sales. The development team at HBI Software have 'web-service' enabled the reports through the use of Smart Tags.
The Smart Analytics portal is now fully integrated into the boxed and OEM versions of Microsoft Office 2007 Suite and Internet Explorer 7.0. Check it out under the Research Option.
Xero Ahead
I met up with Rod Drury in Wellington on Friday and he gave me a brief demonstration of the Xero Accounting system that he and a highly talented team of designers and developers are currently taking to market through a limited public release.
Rod is perhaps best known in New Zealand for the successful development and eventual sale of the enterprise email archiving system, AfterMail. Xero is an entirely different proposition however and is probably one of the best examples of a NZ-inspired SaaS solution in the public domain at present.
The interface itself is based around a Dashboard, which hosts a number of essential small business accounting functions. Some clever proprietary graphics create some great visual effects allowing the user to assess data through a multi-dimensional view. Enough of the product however.
What makes this a standout proposition from my perspective is the high quality team that Rod has built around the business. He has contracted some of the brightest and smartest that NZ has - and not just on the development side. This is what makes it such an interesting project to follow.
Xero is currently only available to New Zealand businesses. The Xero website says that the company is looking to develop the core application for both the UK and the Australian markets. Clearly because of the nature of the product, compliance reporting for local tax requirements and integration with local banks means that different versions need to be developed for different markets.
It is how the Xero management team manage this process from New Zealand that is of greatest interest to me. From earlier posts, anyone who has read this blog will understand that most of my own focus is on developments and relationships with partners offshore. This brings its own special challenges in identifying the most appropriate models to follow when entering different overseas markets.
With the collective brain power that sits behind the Xero team, it will be very interesting to follow its progress. I suspect that it will create a great case study for other NZ-based software entrepreneurs and businesses, as well as being one that gives us all something valuable to learn from.
I left Wellington feeling pretty impressed.
Rod is perhaps best known in New Zealand for the successful development and eventual sale of the enterprise email archiving system, AfterMail. Xero is an entirely different proposition however and is probably one of the best examples of a NZ-inspired SaaS solution in the public domain at present.
The interface itself is based around a Dashboard, which hosts a number of essential small business accounting functions. Some clever proprietary graphics create some great visual effects allowing the user to assess data through a multi-dimensional view. Enough of the product however.
What makes this a standout proposition from my perspective is the high quality team that Rod has built around the business. He has contracted some of the brightest and smartest that NZ has - and not just on the development side. This is what makes it such an interesting project to follow.
Xero is currently only available to New Zealand businesses. The Xero website says that the company is looking to develop the core application for both the UK and the Australian markets. Clearly because of the nature of the product, compliance reporting for local tax requirements and integration with local banks means that different versions need to be developed for different markets.
It is how the Xero management team manage this process from New Zealand that is of greatest interest to me. From earlier posts, anyone who has read this blog will understand that most of my own focus is on developments and relationships with partners offshore. This brings its own special challenges in identifying the most appropriate models to follow when entering different overseas markets.
With the collective brain power that sits behind the Xero team, it will be very interesting to follow its progress. I suspect that it will create a great case study for other NZ-based software entrepreneurs and businesses, as well as being one that gives us all something valuable to learn from.
I left Wellington feeling pretty impressed.
Sunday, 22 April 2007
Mobile Search is Hot and its Here
The ‘Mobile Search’ space was one of the big plays of the week at this week’s Web 2.0 Expo in San Francisco. When asked in one of the sessions, what technologies are the most intriguing to Google, Chief Executive Eric Schmidt said during a question-and-answer session, "The biggest growth areas are clearly within the mobile space”.
ABI Research forecast global mobile marketing and advertising to increase six fold to $19 billion by 2011, from an estimated $3 billion by the end of 2007.
Mobile search is clearly a potentially major disruptive technology for existing market leaders, Google, Yahoo and Microsoft. Not only is the platform different, but a whole host of new industry partners come into play as do different business models.
From a platform position, improved voice-recognition technology and the inclusion of global positioning system chips into mobile phones open the door for new applications to help users find relevant information wherever they find themselves. In addition, improvements in handset technology make today's cell phone capable of doing almost as much as computers of a decade ago.
The potential that Mobile Search offers is evidenced by the huge growth and usage of mobile devices, particularly in developing markets such as China and India. Expect this to be a ‘hot’ sector for some time to come.
ABI Research forecast global mobile marketing and advertising to increase six fold to $19 billion by 2011, from an estimated $3 billion by the end of 2007.
Mobile search is clearly a potentially major disruptive technology for existing market leaders, Google, Yahoo and Microsoft. Not only is the platform different, but a whole host of new industry partners come into play as do different business models.
From a platform position, improved voice-recognition technology and the inclusion of global positioning system chips into mobile phones open the door for new applications to help users find relevant information wherever they find themselves. In addition, improvements in handset technology make today's cell phone capable of doing almost as much as computers of a decade ago.
The potential that Mobile Search offers is evidenced by the huge growth and usage of mobile devices, particularly in developing markets such as China and India. Expect this to be a ‘hot’ sector for some time to come.
Saturday, 21 April 2007
Primitive Search?
At the same time this week that Google was reporting a surge in net profits - net income climbed to US$1bn in the first three months of 2007, up from $592m on a year earlier – hakia, a new meaning-based search engine released an interesting survey in New York.
92 percent of web-based ad experts say paid search advertising is only evolved halfway at best. Of the 221 polled on April 11-12 at the Search Engine Strategies 2007 Conference in New York, 71% say the industry is half-way there, 21% responded the industry is very primitive; and just 3% believe the industry cannot get any better. Five percent of respondents were not sure.
According to Melek Pulatkonak, president and COO of hakia, “The reality is the search industry still has a long way to go when one considers that the average search takes 11 minutes and half of searches are abandoned. The paid-search advertisers’ vote reflects this sentiment.”
What does this mean for Pingar?
I believe it suggests that there is a major opportunity for start-ups and mash-ups in this space. Had I voted in the same poll, I would probably have looked very seriously at the ‘very primitive’ option. I do not really believe that ‘paid search advertising’ has evolved to any level of depth at present.
Longer term, search must become significantly more sophisticated in terms of both the analytical tools it can interface with and the application output it can generate. At the moment, it rarely delivers more than a list of links which the user then has to interrogate. The real value of search will become apparent when the technology moves beyond this indexing mode. The creation of analytical tools which can filter search query results and publish them dynamically through new and innovative applications will create new opportunities for the user, the content owner and the advertiser alike.
The companies who can capture this value will determine the future of paid search advertising and the business models it will induce.
92 percent of web-based ad experts say paid search advertising is only evolved halfway at best. Of the 221 polled on April 11-12 at the Search Engine Strategies 2007 Conference in New York, 71% say the industry is half-way there, 21% responded the industry is very primitive; and just 3% believe the industry cannot get any better. Five percent of respondents were not sure.
According to Melek Pulatkonak, president and COO of hakia, “The reality is the search industry still has a long way to go when one considers that the average search takes 11 minutes and half of searches are abandoned. The paid-search advertisers’ vote reflects this sentiment.”
What does this mean for Pingar?
I believe it suggests that there is a major opportunity for start-ups and mash-ups in this space. Had I voted in the same poll, I would probably have looked very seriously at the ‘very primitive’ option. I do not really believe that ‘paid search advertising’ has evolved to any level of depth at present.
Longer term, search must become significantly more sophisticated in terms of both the analytical tools it can interface with and the application output it can generate. At the moment, it rarely delivers more than a list of links which the user then has to interrogate. The real value of search will become apparent when the technology moves beyond this indexing mode. The creation of analytical tools which can filter search query results and publish them dynamically through new and innovative applications will create new opportunities for the user, the content owner and the advertiser alike.
The companies who can capture this value will determine the future of paid search advertising and the business models it will induce.
Friday, 20 April 2007
A New Zealand View?
Strategy Analysis Ltd, owners of the Smart Analytics portal and IP, publish a Journal called 'The View'. It focuses on Information Technology Convergence and is distributed widely to CEO's, CIO's and COO's globally.
Leading industry players and commentators from both the business and academic worlds have contributed articles to The View, focusing on technology developments and their impact on the converged space.
As I have indicated in previous posts, being based for 3 years in New Zealand, has offered me the chance to view (pardon the pun) the world from a new perspective. In the UK, the ICT sector was recognised internationally as being significant and established. In NZ, we like to think the same about ourselves. That vision offshore is not so recognisable. Think of New Zealand in the UK and other offshore markets, and people think of the All Blacks, Anchor butter, frozen lamb chops and maybe Peter Jackson. The NZ ICT sector is not seriously on the radar.
That has had an impact on some people's (vendors, suppliers and the odd client) view on my own move here three years ago. There is a sense that one has to go the extra mile (thousands in my case) to prove the same level of maturity as that possessed in larger, more recognisable markets.
Strategy Analysis Ltd is therefore looking at publishing a New Zealand focused version of The View. The intention is to ask leading NZ industry and academic specialists to contribute articles that demonstrate NZ's own particular strengths in the ICT space. The publication will be funded by advertising revenue allowing for free distribution both here and offshore.
I think it is important that we demonstrate that despite our size and location that there is an amazingly creative and innovative ICT sector in NZ. It is one thing to say this to ourselves. It is important that we demonstrate it to others.
I hope to put together a list of contributors over the next couple of weeks so we can publish an NZ-based View Journal within the next quarter. Check out this blog for progress.
Leading industry players and commentators from both the business and academic worlds have contributed articles to The View, focusing on technology developments and their impact on the converged space.
As I have indicated in previous posts, being based for 3 years in New Zealand, has offered me the chance to view (pardon the pun) the world from a new perspective. In the UK, the ICT sector was recognised internationally as being significant and established. In NZ, we like to think the same about ourselves. That vision offshore is not so recognisable. Think of New Zealand in the UK and other offshore markets, and people think of the All Blacks, Anchor butter, frozen lamb chops and maybe Peter Jackson. The NZ ICT sector is not seriously on the radar.
That has had an impact on some people's (vendors, suppliers and the odd client) view on my own move here three years ago. There is a sense that one has to go the extra mile (thousands in my case) to prove the same level of maturity as that possessed in larger, more recognisable markets.
Strategy Analysis Ltd is therefore looking at publishing a New Zealand focused version of The View. The intention is to ask leading NZ industry and academic specialists to contribute articles that demonstrate NZ's own particular strengths in the ICT space. The publication will be funded by advertising revenue allowing for free distribution both here and offshore.
I think it is important that we demonstrate that despite our size and location that there is an amazingly creative and innovative ICT sector in NZ. It is one thing to say this to ourselves. It is important that we demonstrate it to others.
I hope to put together a list of contributors over the next couple of weeks so we can publish an NZ-based View Journal within the next quarter. Check out this blog for progress.
Wednesday, 18 April 2007
EDANZ - A Postscript
Tonight, I attended a Priority One members' night here in Tauranga. Approximately 100 other local Western Bay businesses attended.
The guest speaker was Bevan Graham, Chief Executive of EDANZ (Economic Development Association of New Zealand). I left neither convinced nor particularly optimistic.
Bevan was clearly targeting his message at an EDA constituency. So to that extent, I can understand the focus of some of his arguments. I disagreed though with some of the basic assumptions and even more so, with some of his (non) solutions.
Bevan argued that New Zealand lacked enough entrepreneurs (agree), but had access to enough capital (strongly disagree). If you want to acquire a property-based and therefore secured asset in NZ, then finance is available. If you want to fund overseas expansion with an intangible asset (i.e. software), then capital becomes either scarce or expensive - or non existent. Why do NZTE and Investment NZ retain Representatives in the main overseas capital markets to attract inward investment into NZ businesses if this was not the case?
Bevan suggested that the Ireland model did not apply here. New Zealand might not have a 300 million person market next door, but a 12.5% corporation tax rate and generous tax incentives in the form of tax and investment reliefs would prove very attractive to inward investors. My own understanding and appreciation of the Irish model, in the global market, differs somewhat from Bevan's.
Bevan talked about a disconnected public sector that saw Government departments failing to coordinate and therefore duplicate actions (agree). One things that does amaze me about a country (NZ), the size of the West Midlands (that's Birmingham, UK and surrounding districts), is that the country (NZ) can have so much government.
And that brings me to EDANZ. Over 60 EDANZ branches exist throughout New Zealand's regions, ranging from the large to the minute. Some are council managed; some are not. Some have one method of governance; others another. Some seem to survive simply by basing their business focus on current public sector objectives, and therefore grants. Others, well they just survive. And most compete at a local level with other business interests for both influence and dollars.
What tonight's presentation lacked was a focus on offshore engagement. It therefore focused on all the negatives that make up a lot of the NZ business mindset. Our size (we are mostly minute), our ambition (most of us really strive for the 3B business exit), our distance to market and wait for it, our unique NZ character.
The fact that overseas engagement with offshore EDA'S or industries built around similar BOP Clusters might benefit NZ regions, simply did not register.
And that's why tonight's presentation was not just not that convincing, it was actually quite depressing. It focused on the mindset that New Zealand can address its problems by adopting an NZ solution. A sort of 'No 8 wire, but let's make it 9' so we are a little different from our parent's rural generation.
NZ business has to wake up to the realities of the global market. It is here, it is setting the rules and NZ business needs to engage.
The guest speaker was Bevan Graham, Chief Executive of EDANZ (Economic Development Association of New Zealand). I left neither convinced nor particularly optimistic.
Bevan was clearly targeting his message at an EDA constituency. So to that extent, I can understand the focus of some of his arguments. I disagreed though with some of the basic assumptions and even more so, with some of his (non) solutions.
Bevan argued that New Zealand lacked enough entrepreneurs (agree), but had access to enough capital (strongly disagree). If you want to acquire a property-based and therefore secured asset in NZ, then finance is available. If you want to fund overseas expansion with an intangible asset (i.e. software), then capital becomes either scarce or expensive - or non existent. Why do NZTE and Investment NZ retain Representatives in the main overseas capital markets to attract inward investment into NZ businesses if this was not the case?
Bevan suggested that the Ireland model did not apply here. New Zealand might not have a 300 million person market next door, but a 12.5% corporation tax rate and generous tax incentives in the form of tax and investment reliefs would prove very attractive to inward investors. My own understanding and appreciation of the Irish model, in the global market, differs somewhat from Bevan's.
Bevan talked about a disconnected public sector that saw Government departments failing to coordinate and therefore duplicate actions (agree). One things that does amaze me about a country (NZ), the size of the West Midlands (that's Birmingham, UK and surrounding districts), is that the country (NZ) can have so much government.
And that brings me to EDANZ. Over 60 EDANZ branches exist throughout New Zealand's regions, ranging from the large to the minute. Some are council managed; some are not. Some have one method of governance; others another. Some seem to survive simply by basing their business focus on current public sector objectives, and therefore grants. Others, well they just survive. And most compete at a local level with other business interests for both influence and dollars.
What tonight's presentation lacked was a focus on offshore engagement. It therefore focused on all the negatives that make up a lot of the NZ business mindset. Our size (we are mostly minute), our ambition (most of us really strive for the 3B business exit), our distance to market and wait for it, our unique NZ character.
The fact that overseas engagement with offshore EDA'S or industries built around similar BOP Clusters might benefit NZ regions, simply did not register.
And that's why tonight's presentation was not just not that convincing, it was actually quite depressing. It focused on the mindset that New Zealand can address its problems by adopting an NZ solution. A sort of 'No 8 wire, but let's make it 9' so we are a little different from our parent's rural generation.
NZ business has to wake up to the realities of the global market. It is here, it is setting the rules and NZ business needs to engage.
Pingar Hits Taipei
One of the joys of living in New Zealand and having offshore partners is the knowledge that whilst you sleep, they work!
John Beer, my UK partner in Pingar, was speaking to an invited audience last night during the UK Trade & Investment's Mobile & Wireless Mission to Hong Kong and Taipei. In my experience, for an SME, meeting senior executives from the likes of BenQ, Motorola and others is only really possible either on such Missions or via other organised networking opportunities. (See my previous post on NZTE Beachheads)
Check out the UK Trade & Investment stand in Taipei yesterday.
Pingar is a global application. Although now based in New Zealand, I repeat the assertion that I have made in previous posts. If you think globally and act globally, then you will succeed globally.
John Beer, my UK partner in Pingar, was speaking to an invited audience last night during the UK Trade & Investment's Mobile & Wireless Mission to Hong Kong and Taipei. In my experience, for an SME, meeting senior executives from the likes of BenQ, Motorola and others is only really possible either on such Missions or via other organised networking opportunities. (See my previous post on NZTE Beachheads)
Check out the UK Trade & Investment stand in Taipei yesterday.
Pingar is a global application. Although now based in New Zealand, I repeat the assertion that I have made in previous posts. If you think globally and act globally, then you will succeed globally.
Beachheads Hit Tauranga
I have written some complimentary things about NZTE in recent posts. I do think they get some things right. Yesterday, their Beachheads Program Roadshow hit town.
Some key figures were there.
Hans Frauenlob was there. Hans manages NZTE's ICT Sector team, and is responsible for the development and implementation of NZTE ICT sector initiatives. He is also responsible for NZTE's Beachheads programmes, and NZTE's relationship with the ICT GIF sector body (HiGrowth Project).
Greg Cross, Chairperson of the New Zealand Advisory Board was there. Greg gave a good overview of the why, what and how of the programme.
Most importantly, some really impressive Tauranga / Western Bay businesses were there; keen to find out more about assistance available in the export space. At present only two of the 60-odd Beachhead partners are from the Western Bay. I was a little surprised at this given that the BOP is a major export player with both the Port of Tauranga and the billion dollar plus kiwifruit / avocado industry close by.
Let's hope that some of those businesses now follow-up and apply for Beachhead status. They certainly have the drive. Hopefully now with the info, they can take the next steps and benefit from the networking opportunities available in this programme.
Some key figures were there.
Hans Frauenlob was there. Hans manages NZTE's ICT Sector team, and is responsible for the development and implementation of NZTE ICT sector initiatives. He is also responsible for NZTE's Beachheads programmes, and NZTE's relationship with the ICT GIF sector body (HiGrowth Project).
Greg Cross, Chairperson of the New Zealand Advisory Board was there. Greg gave a good overview of the why, what and how of the programme.
Most importantly, some really impressive Tauranga / Western Bay businesses were there; keen to find out more about assistance available in the export space. At present only two of the 60-odd Beachhead partners are from the Western Bay. I was a little surprised at this given that the BOP is a major export player with both the Port of Tauranga and the billion dollar plus kiwifruit / avocado industry close by.
Let's hope that some of those businesses now follow-up and apply for Beachhead status. They certainly have the drive. Hopefully now with the info, they can take the next steps and benefit from the networking opportunities available in this programme.
Tuesday, 17 April 2007
2 Degrees of Separation in Hong Kong!
About a week ago, I received an email from Wayne Hulls, Asia Pacific Regional Manager for HSL (Hays Systems Ltd), enquiring about a product HBI Software in Bangalore produces. Wayne is based in Queenstown, South Island, New Zealand. I had not heard of, or from, Wayne before.
Two days later I was to learn from a wholly unconnected source that Wayne was taking part in the UK Trade & Investment Mobile and Wireless Mission to Hong Kong & Taiwan from 16th - 20th April. John Beer, my UK partner in Pingar, was I knew taking part in the same mission. John was both a key speaker, but also there to acquire content from regional content owners as well as opening discussions with mobile operators.
This Sunday, I had dinner with David Simons, a visiting RFID specialist from the UK. Whilst we were talking, David mentioned that he hoped to meet up with an old and very cool NZ contact he had worked with in Dubai, whilst visiting the South Island this week. The person as you might now guess was Wayne Hulls.
I picked up my mobile and phoned John in Hong Kong. "Have you met this guy, Wayne Hulls?" I asked. "I am actually speaking to him at the moment", John replied. I handed the mobile over to David and said. "Wayne is on the line. You might as well firm up that South Island meet-up right now!"
They are meeting up next weekend in Queenstown.
Two days later I was to learn from a wholly unconnected source that Wayne was taking part in the UK Trade & Investment Mobile and Wireless Mission to Hong Kong & Taiwan from 16th - 20th April. John Beer, my UK partner in Pingar, was I knew taking part in the same mission. John was both a key speaker, but also there to acquire content from regional content owners as well as opening discussions with mobile operators.
This Sunday, I had dinner with David Simons, a visiting RFID specialist from the UK. Whilst we were talking, David mentioned that he hoped to meet up with an old and very cool NZ contact he had worked with in Dubai, whilst visiting the South Island this week. The person as you might now guess was Wayne Hulls.
I picked up my mobile and phoned John in Hong Kong. "Have you met this guy, Wayne Hulls?" I asked. "I am actually speaking to him at the moment", John replied. I handed the mobile over to David and said. "Wayne is on the line. You might as well firm up that South Island meet-up right now!"
They are meeting up next weekend in Queenstown.
Tauranga is Unplugged
Yesterday's announcement by TelstraClear that it had been forced to shelve its plans for a NZ$ 50 million wireless network in Tauranga is a timely reminder of the appalling mess that is telecommunications in New Zealand.
The blame game has already started. Did Vodafone really change its stance on the roaming agreement that TelstraClear thought was in place? Or were there other commercial forces at work which forced TelstraClear's hand?
TelstraClear's announcement coincided with the release of a report by the Commerce Commmission into fixed and mobile phone charges in New Zealand. Against most measures, the plans being offered NZ consumers, business and residential, by NZ's two leading telcos, Telecom and Vodafone, are both restrictive and expensive. By OECD standards, NZ consumers are pretty much stuck in the basement.
Whether TelstraClear's 'Unplugged' project for Tauranga was commercially viable or not is debateable. What is not however is that its shelving is one more example of a potentially competitive and innovative product failing to get to market. Until New Zealand can sort out its telecommunication woes, business in this country is going to be continually disadvantaged against its competition abroad.
The blame game has already started. Did Vodafone really change its stance on the roaming agreement that TelstraClear thought was in place? Or were there other commercial forces at work which forced TelstraClear's hand?
TelstraClear's announcement coincided with the release of a report by the Commerce Commmission into fixed and mobile phone charges in New Zealand. Against most measures, the plans being offered NZ consumers, business and residential, by NZ's two leading telcos, Telecom and Vodafone, are both restrictive and expensive. By OECD standards, NZ consumers are pretty much stuck in the basement.
Whether TelstraClear's 'Unplugged' project for Tauranga was commercially viable or not is debateable. What is not however is that its shelving is one more example of a potentially competitive and innovative product failing to get to market. Until New Zealand can sort out its telecommunication woes, business in this country is going to be continually disadvantaged against its competition abroad.
Monday, 16 April 2007
'Stay in the Bay'
In February last year, I launched the 'Stay in the Bay' portal in conjuction with Priority One, the Western Bay of Plenty economic development agency.
The purpose of the portal was to provide an online e-marketplace for local businesses in the Western Bay. It was designed to enable large companies to place their procurement requirements online and for smaller vendors in the region to pitch for the business. Any business could advertise their procurement needs so it was effectively a route for registered businesses to either find new suppliers or pitch themselves for new business. A classic online e-marketplace.
Research prior to the launch by both Prioirity One and myself indicated real interest and support for the concept. We had a big launch at Baycourt and despite some extensive local press coverage and a month-long radio advertising campaign, only the Bay's larger companies signed up. In some ways, the companies it was most designed to help, local SMEs looking for new business, did not join up. Why?
A couple of thoughts.
Despite, the talk about Kiwis being 'early adoptors' of new technology, is that really the case? I do think that the historic quality and slow take-up of broadband in NZ has had a quite negative legacy effect in terms of the take up of new online services. It is quite unlike my offshore experience, to see so many businesses still using dial-up as their main point of connectivity, if at all.
And cost. The cost of joining the Stay in the Bay service (for unlimited use) worked out at about NZ$150 per year for the average local SME. Did this create a barrier to entry?
I had a meeting at Priority One's offices in Tauranga on Friday and we agreed that we would 're-launch' the Stay in the Bay portal next month as a free service, supported longer term by some advertising. It will be interesting to see whether the removal of the cost barrier proves more attractive to local businesses. With that barrier removed, it will come down to some intensive marketing and no doubt some 'free' advice.
At the end of the day, it will help me understand what makes NZ's SME's tick in terms of their understanding as to how new online services can help make their businesses more productive. I will let you know my experiences as the new launch unfolds.
The purpose of the portal was to provide an online e-marketplace for local businesses in the Western Bay. It was designed to enable large companies to place their procurement requirements online and for smaller vendors in the region to pitch for the business. Any business could advertise their procurement needs so it was effectively a route for registered businesses to either find new suppliers or pitch themselves for new business. A classic online e-marketplace.
Research prior to the launch by both Prioirity One and myself indicated real interest and support for the concept. We had a big launch at Baycourt and despite some extensive local press coverage and a month-long radio advertising campaign, only the Bay's larger companies signed up. In some ways, the companies it was most designed to help, local SMEs looking for new business, did not join up. Why?
A couple of thoughts.
Despite, the talk about Kiwis being 'early adoptors' of new technology, is that really the case? I do think that the historic quality and slow take-up of broadband in NZ has had a quite negative legacy effect in terms of the take up of new online services. It is quite unlike my offshore experience, to see so many businesses still using dial-up as their main point of connectivity, if at all.
And cost. The cost of joining the Stay in the Bay service (for unlimited use) worked out at about NZ$150 per year for the average local SME. Did this create a barrier to entry?
I had a meeting at Priority One's offices in Tauranga on Friday and we agreed that we would 're-launch' the Stay in the Bay portal next month as a free service, supported longer term by some advertising. It will be interesting to see whether the removal of the cost barrier proves more attractive to local businesses. With that barrier removed, it will come down to some intensive marketing and no doubt some 'free' advice.
At the end of the day, it will help me understand what makes NZ's SME's tick in terms of their understanding as to how new online services can help make their businesses more productive. I will let you know my experiences as the new launch unfolds.
Friday, 13 April 2007
Selling Pingar Offshore
Over the past couple of months, I have visited the USA, Singapore and the UAE to look at sales opportunities for Pingar.
The main purpose of the visits has been to research the feasability of establishing a formal sales channel in each region, either direct or indirect. Each region clearly share different business cultures and hence there is no single template to follow.
What has been consistent in each visit has been the support of NZTE and their locally-based representatives. In Santa Monica, I had good meetings with Peter Bull and Calvin Cheong who were able to point me in several positive directions. In Singapore, it was Liam Corkery. In UAE, it was Hesham Saleh. The one consistent theme was that because I had made the effort to actually visit the local market and shell out the necessary dollars to do so, NZTE locally responded very positively. This has been reflected in the follow-up emails and actions that have taken place since my return to NZ after each visit.
In my view, it is not enough just to attend seminars and conferences in NZ to learn about 'Export'. The real answer lies in researching a potential market, engaging with NZTE, planning a visit, booking the flights and accommodation, and spending time in your chosen market. That demonstrates a commitment to 'export' that emailing and video conferencing doesn't.
That commitment is two-way. Firstly, one begins to understand the opportunities and pain points a particular market offers. Secondly, and as important, the local market responds very positively to the visit. They understand the distance you have traveled and this itself demonstrates real intent.
As part of New Zealand's '2007 Export Year' program, NZTE has made available approximately NZ$30 million dollars under a product called 'The Market Development Component of the Enterprise Development Grant Scheme (EDG-MD)'. Funds are available to assist NZ businesses assess market opportunities offshore. The funding allocation for May 2007 - May 2008 is almost complete, but another raft of funding is available for July 2007 - July 2008. Click the link above, register and apply!
The main purpose of the visits has been to research the feasability of establishing a formal sales channel in each region, either direct or indirect. Each region clearly share different business cultures and hence there is no single template to follow.
What has been consistent in each visit has been the support of NZTE and their locally-based representatives. In Santa Monica, I had good meetings with Peter Bull and Calvin Cheong who were able to point me in several positive directions. In Singapore, it was Liam Corkery. In UAE, it was Hesham Saleh. The one consistent theme was that because I had made the effort to actually visit the local market and shell out the necessary dollars to do so, NZTE locally responded very positively. This has been reflected in the follow-up emails and actions that have taken place since my return to NZ after each visit.
In my view, it is not enough just to attend seminars and conferences in NZ to learn about 'Export'. The real answer lies in researching a potential market, engaging with NZTE, planning a visit, booking the flights and accommodation, and spending time in your chosen market. That demonstrates a commitment to 'export' that emailing and video conferencing doesn't.
That commitment is two-way. Firstly, one begins to understand the opportunities and pain points a particular market offers. Secondly, and as important, the local market responds very positively to the visit. They understand the distance you have traveled and this itself demonstrates real intent.
As part of New Zealand's '2007 Export Year' program, NZTE has made available approximately NZ$30 million dollars under a product called 'The Market Development Component of the Enterprise Development Grant Scheme (EDG-MD)'. Funds are available to assist NZ businesses assess market opportunities offshore. The funding allocation for May 2007 - May 2008 is almost complete, but another raft of funding is available for July 2007 - July 2008. Click the link above, register and apply!
Thursday, 12 April 2007
BOP ICT Cluster Tonight
I am joining other ICT companies in Tauranga / BOP for a BOP ICT Cluster meeting tonight.
Mike Dennehy, CEO of Vision Software, will share his experiences of setting up an office in Australia. Mike will also provide practical advice on making funding applications to FRST and NZTE.
Although Tauranga is often seen by Kiwis living outside the Bay as being a retirement and beach destination, there is in fact a thriving ICT sector in the region.
The BOP ICT Cluster has approximately 130 member companies and a number are creating great software applications. Companies I have got to know a little here include Jodie Tipping's Cucumber Software which produce a feature rich suite of products including LawSuite, HealthSuite and GlobalSuite. Roy Simpson and Ray Hunter own Origen, an enterprise solutions company which provides quality software systems to Local Government throughout New Zealand. Radford Software has developed a range of software solutions for the Avocado and Pipfruit industries managing the orchard to coldstore path and beyond.
Having a vibrant regional ICT Cluster (supported by Priority One, the local Western BOP Enterprise Agency) provides a great opportunity for local companies working in this space to network and discuss issues of common interest. Sure - living in the Bay does offer a lifestyle that many might envy. My own belief is that it actually enhances the working environment and certainly provides no barrier to creating really innovative and export-potential ICT businesses.
Mike Dennehy, CEO of Vision Software, will share his experiences of setting up an office in Australia. Mike will also provide practical advice on making funding applications to FRST and NZTE.
Although Tauranga is often seen by Kiwis living outside the Bay as being a retirement and beach destination, there is in fact a thriving ICT sector in the region.
The BOP ICT Cluster has approximately 130 member companies and a number are creating great software applications. Companies I have got to know a little here include Jodie Tipping's Cucumber Software which produce a feature rich suite of products including LawSuite, HealthSuite and GlobalSuite. Roy Simpson and Ray Hunter own Origen, an enterprise solutions company which provides quality software systems to Local Government throughout New Zealand. Radford Software has developed a range of software solutions for the Avocado and Pipfruit industries managing the orchard to coldstore path and beyond.
Having a vibrant regional ICT Cluster (supported by Priority One, the local Western BOP Enterprise Agency) provides a great opportunity for local companies working in this space to network and discuss issues of common interest. Sure - living in the Bay does offer a lifestyle that many might envy. My own belief is that it actually enhances the working environment and certainly provides no barrier to creating really innovative and export-potential ICT businesses.
Wednesday, 11 April 2007
My Favourites
Being based in NZ means that much of the news I listen to on mainstream media relates to local domestic news. i.e. Cat gone missing in Matua (Monday headlines), Cat found in Matua - Neighbours rejoice (Tuesday headlines).
To keep in touch with things overseas, I rely on my Favorites menu. So these are the sites that I use to interface with the rest of the world.
For news, I check out BBC Online, CNN, Times of India (Bangalore) and the Daily Telegraph (London Edition).
For business, I check out FT.com, Reuters and Bloomberg.
For sport, I check out BBC Online, Blackpool FC, Fylde RUFC and Rivals.net.
For Technology, I check out 3 or 4 Blogs. Although I work in the technology space, I prefer not to write about it from a techie perspective. Having first experienced 'New Media' in 1979 when I joined Brunnings Advertising in Liverpool - 'New Media' was then commercial radio, I have experienced so many 'New Media' moments, that I no longer predict their future. I prefer instead to refer to others and let them do the hard work.
I am indebted therefore to those Bloggers who I habitually visit. There is a Microsoft bias, but this perhaps reflects Microsoft's strategy of encouraging their employees to blog in company time. There also appears to be a new generation of Microsoft employee that is more open to non-M/S speak and more aware of the bigger picture. Could be of course, just a good disguise.....
Steve Clayton, CTO of the Microsoft UK Partner Group has a good blog at http://blogs.msdn.com/stevecla01/. Steve does cover some technology issues but also looks at the wider impact of emerging technologies. His blogs usually contain some good links to both Partner and non-Partner sites.
Claire O'Halloran works with the Microsoft UK Partner Group and heads up the 'Partners of the Future' team. Since we are one, it is good to catch up with her thoughts. Like Steve, some great links to Partner sites doing amazing things in the Web 2.0, SaaS area, etc. etc. Check Claire's blog out at http://blogs.msdn.com/armadillo/default.aspx.
Frank Arrigo is responsible for all Microsoft Australia's Technical Communities in Australia, which includes Developer, Architect, IT Professional, Academic and ISV. He is also brother of Rita who I met during a Business Australia meeting in Melbourne back in March 2006. He is also related to John Beer's wife Elvy. John is my partner in Pingar. So for a taste of Aussie M/S thinking, I occasionally drop into http://blogs.msdn.com/frankarr/
In NZ, a name that has cropped up several times in recent months is Rod Drury. So I checked out his blog and then bookmarked it. It's got some techie stuff, but also links to some NZ-based companies and developers. I check it out at www.drury.net.nz.
New Zealand does have some of its own sites, though particularly in the News and Business area, they all appear to publish the same NZPA news feeds at the same time. Two of the better online sources for news are Stuff and NZ Herald. For business, I occasionally check out the New Zealand Stock Exchange and National Business Review.
To keep in touch with things overseas, I rely on my Favorites menu. So these are the sites that I use to interface with the rest of the world.
For news, I check out BBC Online, CNN, Times of India (Bangalore) and the Daily Telegraph (London Edition).
For business, I check out FT.com, Reuters and Bloomberg.
For sport, I check out BBC Online, Blackpool FC, Fylde RUFC and Rivals.net.
For Technology, I check out 3 or 4 Blogs. Although I work in the technology space, I prefer not to write about it from a techie perspective. Having first experienced 'New Media' in 1979 when I joined Brunnings Advertising in Liverpool - 'New Media' was then commercial radio, I have experienced so many 'New Media' moments, that I no longer predict their future. I prefer instead to refer to others and let them do the hard work.
I am indebted therefore to those Bloggers who I habitually visit. There is a Microsoft bias, but this perhaps reflects Microsoft's strategy of encouraging their employees to blog in company time. There also appears to be a new generation of Microsoft employee that is more open to non-M/S speak and more aware of the bigger picture. Could be of course, just a good disguise.....
Steve Clayton, CTO of the Microsoft UK Partner Group has a good blog at http://blogs.msdn.com/stevecla01/. Steve does cover some technology issues but also looks at the wider impact of emerging technologies. His blogs usually contain some good links to both Partner and non-Partner sites.
Claire O'Halloran works with the Microsoft UK Partner Group and heads up the 'Partners of the Future' team. Since we are one, it is good to catch up with her thoughts. Like Steve, some great links to Partner sites doing amazing things in the Web 2.0, SaaS area, etc. etc. Check Claire's blog out at http://blogs.msdn.com/armadillo/default.aspx.
Frank Arrigo is responsible for all Microsoft Australia's Technical Communities in Australia, which includes Developer, Architect, IT Professional, Academic and ISV. He is also brother of Rita who I met during a Business Australia meeting in Melbourne back in March 2006. He is also related to John Beer's wife Elvy. John is my partner in Pingar. So for a taste of Aussie M/S thinking, I occasionally drop into http://blogs.msdn.com/frankarr/
In NZ, a name that has cropped up several times in recent months is Rod Drury. So I checked out his blog and then bookmarked it. It's got some techie stuff, but also links to some NZ-based companies and developers. I check it out at www.drury.net.nz.
New Zealand does have some of its own sites, though particularly in the News and Business area, they all appear to publish the same NZPA news feeds at the same time. Two of the better online sources for news are Stuff and NZ Herald. For business, I occasionally check out the New Zealand Stock Exchange and National Business Review.
Tuesday, 10 April 2007
Thinking Global
Tauranga Chamber of Commerce recently hosted a 'Grow with Attitude' one-day conference for approximately 100 Bay of Plenty companies at Baycourt in Tauranga.
I had been asked to give a 30-minute presentation and decided to title it, 'Creating an SME Roadmap for Global Growth'. At the time, the title had special meaning. I had flown in from Singapore at 4.00am that morning where I had been establishing contacts for a possible joint venture of my own in that region.
Being a recent immigrant from Britain, I am still adjusting to my NZ location. Unlike many local peers, I have an overseas network or several networks. At present, my goal is to establish one in NZ.
The key message I tried to convey at the conference was that in order to prepare a business for global expansion, that business had to start thinking globally. I used my own business as an example. I said in these terms - 'My business is a global business that happens to be based in Tauranga. I am not a Tauranga business thinking of going global'.
The difference in perception is significant. If one takes the view that your business is a 'global business', then you start looking at issues from a global perspective. This includes resourcing, the supply chain, raising capital, acquiring skills etc. It opens up your vision and creates opportunity.
If you think of yourself as being a 'Tauranga business thinking of going global' then the mind focuses on the negatives. Distance to market, access to capital to fund the expansion, time-zones, competitive pressures etc. It creates a negative mental environment. In such cases, the NZ appetite for the 3Bs usually kicks in.
NZ is failing to create truly global businesses. The reading of recent OECD reports about NZ's engagement with the global economy make depressing reading. NZ has the creative and innovative ability to make its mark on the global economy. I just feel at present amongst many so-called business owners and senior managers, it has neither the passion nor the desire to do so.
I had been asked to give a 30-minute presentation and decided to title it, 'Creating an SME Roadmap for Global Growth'. At the time, the title had special meaning. I had flown in from Singapore at 4.00am that morning where I had been establishing contacts for a possible joint venture of my own in that region.
Being a recent immigrant from Britain, I am still adjusting to my NZ location. Unlike many local peers, I have an overseas network or several networks. At present, my goal is to establish one in NZ.
The key message I tried to convey at the conference was that in order to prepare a business for global expansion, that business had to start thinking globally. I used my own business as an example. I said in these terms - 'My business is a global business that happens to be based in Tauranga. I am not a Tauranga business thinking of going global'.
The difference in perception is significant. If one takes the view that your business is a 'global business', then you start looking at issues from a global perspective. This includes resourcing, the supply chain, raising capital, acquiring skills etc. It opens up your vision and creates opportunity.
If you think of yourself as being a 'Tauranga business thinking of going global' then the mind focuses on the negatives. Distance to market, access to capital to fund the expansion, time-zones, competitive pressures etc. It creates a negative mental environment. In such cases, the NZ appetite for the 3Bs usually kicks in.
NZ is failing to create truly global businesses. The reading of recent OECD reports about NZ's engagement with the global economy make depressing reading. NZ has the creative and innovative ability to make its mark on the global economy. I just feel at present amongst many so-called business owners and senior managers, it has neither the passion nor the desire to do so.
Introducing Smart Analytics
About two years ago, I set up the Smart Analytics (SA) research portal. Check it out here at www.smart-analytics.com
Targeting Competitive Intelligence (CI) in the ICT space, the SA portal provides profiles on different companies in different ICT sectors. The portal design and build was and is outsourced to HBI Software Pvt Ltd in Bangalore. The actual research, analysis and content was and is outsourced to HBI Sales Pvt Ltd, also based in Bangalore.
The reports themselves are smart-tagged using smart tags and Microsoft Office web services. This means that users can automatically update downloaded reports once content has been updated. Microsoft liked this so back in 2005, the Smart Analytics portal was made available through Microsoft Office Marketplaces.
In 2006, Microsoft selected a small number of core research data sources to be integrated into the hard copy and OEM versions of Microsoft Office 2007 Suite. Smart Analytics was one of the core data sources selected, so today, users of Microsoft Office 2007 Suite can search Smart Analytics from within the Research ribbon / pane. SA is also available as a core research source in Internet Explorer 7.0.
The relevance of all this today is that we are about to publish a series of reports published by OTR onto the SA portal. It is e-commerce enabled so we can add third-party reports to the portal shop.
One of my own personal targets for 2007 is to encourage content providers based in NZ who create CI related reports in the ICT space to make their content available on the SA portal. Microsoft Office 2007 will provide them with a great route to market and raise their profile in the global market.
Today is not all work however. Tonight there will be a toast to Blackpool FC who managed a 2 - 0 win over Huddersfield in the Easter Monday game. That puts Blackpool into 4th place in the First Division and re-inforces their Play-Off credentials. With just 4 games to go, a trip to Cardiff in May is now well on the cards!
Targeting Competitive Intelligence (CI) in the ICT space, the SA portal provides profiles on different companies in different ICT sectors. The portal design and build was and is outsourced to HBI Software Pvt Ltd in Bangalore. The actual research, analysis and content was and is outsourced to HBI Sales Pvt Ltd, also based in Bangalore.
The reports themselves are smart-tagged using smart tags and Microsoft Office web services. This means that users can automatically update downloaded reports once content has been updated. Microsoft liked this so back in 2005, the Smart Analytics portal was made available through Microsoft Office Marketplaces.
In 2006, Microsoft selected a small number of core research data sources to be integrated into the hard copy and OEM versions of Microsoft Office 2007 Suite. Smart Analytics was one of the core data sources selected, so today, users of Microsoft Office 2007 Suite can search Smart Analytics from within the Research ribbon / pane. SA is also available as a core research source in Internet Explorer 7.0.
The relevance of all this today is that we are about to publish a series of reports published by OTR onto the SA portal. It is e-commerce enabled so we can add third-party reports to the portal shop.
One of my own personal targets for 2007 is to encourage content providers based in NZ who create CI related reports in the ICT space to make their content available on the SA portal. Microsoft Office 2007 will provide them with a great route to market and raise their profile in the global market.
Today is not all work however. Tonight there will be a toast to Blackpool FC who managed a 2 - 0 win over Huddersfield in the Easter Monday game. That puts Blackpool into 4th place in the First Division and re-inforces their Play-Off credentials. With just 4 games to go, a trip to Cardiff in May is now well on the cards!
Sunday, 8 April 2007
Easter in Tauranga
It's 7.00am on Good Friday morning and the laptop stays switched off.
Instead, I launch 'Seahorse' at the Sulphur Point boat ramp with Jacqui and Steve. We head off to Matakana outside the Tauranga Harbour entrance and drifting over sand at about 15 metres, we pick up both snapper and kahawai. Once back ashore, we use the new smoker. 6 kahawai are descaled, split down the middle and placed on the smoker. We cover them in brown sugar and a range of different herbs - to taste test. 20 minutes later, we had six amazing feeds - and were joined by friends for the taste test and the sav blanc. Now that's what I call a 'Good' Friday.
'Think Jazz - Think Easter - Think Tauranga'. That's what the advertising says and that's what Easter Saturday in Tauranga is all about. We meet up with friends on the Strand. About 30 bands play in the bars and restaurants along the Tauranga waterfront. We listen to 6 great bands and then its off to Trinity Church to catch Georgie Fame in the evening. All jazzed up with nowhere to go, its back to base to prepare for the trip on Sunday.
Easter Sunday sees the laptop switched on. A quick visit to the Blackpool FC website boasts a 'Seasiders' 3 - 2 win over Tranmere. That's a six point advantage in the play-off positions with just 5 games to go. Now it's away to Huddersfield on Easter Monday for another 3-pointer.
Back in Tauranga it's time to leave for Taupo, a 150 km drive away. Time to catch up with Jacqui's brothers and respective families and a Christening for Georgia Grace. The drive takes us over the Kaimai's and across some of the Waikato to reach Taupo, home to NZ's largest inland lake. A volcanic region, the area is studded with hot mud pools and the acrid smell of sulphur. Yet on a warm sunny Easter Sunday, there is virtually nowhere in the world we would prefer to be.
Instead, I launch 'Seahorse' at the Sulphur Point boat ramp with Jacqui and Steve. We head off to Matakana outside the Tauranga Harbour entrance and drifting over sand at about 15 metres, we pick up both snapper and kahawai. Once back ashore, we use the new smoker. 6 kahawai are descaled, split down the middle and placed on the smoker. We cover them in brown sugar and a range of different herbs - to taste test. 20 minutes later, we had six amazing feeds - and were joined by friends for the taste test and the sav blanc. Now that's what I call a 'Good' Friday.
'Think Jazz - Think Easter - Think Tauranga'. That's what the advertising says and that's what Easter Saturday in Tauranga is all about. We meet up with friends on the Strand. About 30 bands play in the bars and restaurants along the Tauranga waterfront. We listen to 6 great bands and then its off to Trinity Church to catch Georgie Fame in the evening. All jazzed up with nowhere to go, its back to base to prepare for the trip on Sunday.
Easter Sunday sees the laptop switched on. A quick visit to the Blackpool FC website boasts a 'Seasiders' 3 - 2 win over Tranmere. That's a six point advantage in the play-off positions with just 5 games to go. Now it's away to Huddersfield on Easter Monday for another 3-pointer.
Back in Tauranga it's time to leave for Taupo, a 150 km drive away. Time to catch up with Jacqui's brothers and respective families and a Christening for Georgia Grace. The drive takes us over the Kaimai's and across some of the Waikato to reach Taupo, home to NZ's largest inland lake. A volcanic region, the area is studded with hot mud pools and the acrid smell of sulphur. Yet on a warm sunny Easter Sunday, there is virtually nowhere in the world we would prefer to be.
Wednesday, 4 April 2007
Planning the Working Day
Today, like most days, I check my email at about 7.00am.
The next two minutes, like most days, are probably the most important minutes of the working day. They will dictate how I plan my day and crucially, how I plan my evening.
In NZ, it is 7.00am. That makes it 8.00pm in the UK (previous day) and about midnight in Bangalore. If an immediate telephone response is required it is too late for India but OK for the UK, so long as the recipient is expecting a call.
When I speak to the UK, I either use Skype or Telecom's 0161 International prefix. This (the 0161 prefix) costs just 7 cents a minute compared to Telecom's normal 44 cents per minute 00 prefix. I can detect no real degradation of service and it works very well landline to landline.
Because most of my contacts and operations (offshore) work through the NZ night, the first email drop of the day is the most important. Today, the mix includes emails from the UK, Bangalore and Dubai - I was in the UAE last week discussing opportunities in the region with some interesting people. Most of the emails that came in this morning require an email response only, so it looks like Jacqui and I can plan the evening ahead.
Today, I only have one actual face-to-face meeting. This is to discuss some development work with a company in the Bay that might be outsourced to the HBI Software team in Bangalore.
The afternoon will be spent following up from last week's trip to UAE, chasing up some action points, as well as setting more specific goals for a second visit.
Of course, unexpected things might happen later in the day. Bangalore normally come online at about 5.00pm so I can expect a query/ response to my communication then. With the UK now having adopted daylight saving, they normally start work at about 8.00pm NZ-time. So the laptop will be set to receive incoming emails until about 10.00pm. That is when I normally turn the thing off, unless there is a pre-set conference call later in the night.
So today looks like being a pretty quiet day, though who knows what might happen after 5.00pm. The one thing about my working days generally speaking is that none could be classed as 'normal' working days. Tomorrow's 7.00am email drop can bring on unexpected opportunities and threats, so those first two minutes really are the key to planning the working day ahead.
The next two minutes, like most days, are probably the most important minutes of the working day. They will dictate how I plan my day and crucially, how I plan my evening.
In NZ, it is 7.00am. That makes it 8.00pm in the UK (previous day) and about midnight in Bangalore. If an immediate telephone response is required it is too late for India but OK for the UK, so long as the recipient is expecting a call.
When I speak to the UK, I either use Skype or Telecom's 0161 International prefix. This (the 0161 prefix) costs just 7 cents a minute compared to Telecom's normal 44 cents per minute 00 prefix. I can detect no real degradation of service and it works very well landline to landline.
Because most of my contacts and operations (offshore) work through the NZ night, the first email drop of the day is the most important. Today, the mix includes emails from the UK, Bangalore and Dubai - I was in the UAE last week discussing opportunities in the region with some interesting people. Most of the emails that came in this morning require an email response only, so it looks like Jacqui and I can plan the evening ahead.
Today, I only have one actual face-to-face meeting. This is to discuss some development work with a company in the Bay that might be outsourced to the HBI Software team in Bangalore.
The afternoon will be spent following up from last week's trip to UAE, chasing up some action points, as well as setting more specific goals for a second visit.
Of course, unexpected things might happen later in the day. Bangalore normally come online at about 5.00pm so I can expect a query/ response to my communication then. With the UK now having adopted daylight saving, they normally start work at about 8.00pm NZ-time. So the laptop will be set to receive incoming emails until about 10.00pm. That is when I normally turn the thing off, unless there is a pre-set conference call later in the night.
So today looks like being a pretty quiet day, though who knows what might happen after 5.00pm. The one thing about my working days generally speaking is that none could be classed as 'normal' working days. Tomorrow's 7.00am email drop can bring on unexpected opportunities and threats, so those first two minutes really are the key to planning the working day ahead.
Tuesday, 3 April 2007
The First Post
Since this is my first post, perhaps a little background about Pingar and myself.
I have been working with Pingar for over two years now. Living in Tauranga, Bay of Plenty, New Zealand has given me the time and space to help build the Pingar concept into an exciting reality. Of course, plenty of friends have helped. Both here and overseas.
Jacqui, my wife, has become accustomed to the early and late night calls necessary to talk to, and discuss strategy with, overseas partners. She knows what it takes - and at what time - to build a global business out of NZ!
The team at HBI Software in Bangalore have produced superb application architecture, design and code. They gave birth to Pingar and are responsible for its ongoing nurturing and development.
Pingar also have some great partners.
Microsoft UK invited John Beer, a fellow Pingar Limited Director in the UK to dinner in Henley on January 31st and we became a Microsoft 'Partner of the Future'.
UK Trade & Investment said in February that having reviewed the Pingar project, we had received 'Greenlight' status from the UK Trade & Investment's Global Entrepeneur Programme as a 'Technology of Exceptional Potential.'
Closer to home, I have been working with New Zealand Trade & Enterprise (NZTE) who have given me access to some of their overseas representatives and networks. They really do appear to understand some of the challenges facing NZ business who want to interact with offshore markets. Methinks I will be working closely with NZTE for some time to come.
Closer to home still, I have been working with Priority One, the BOP ICT Cluster, Tauranga Chamber of Commerce and Export NZ BOP - all based here in the Western Bay of Plenty. The one thing they all have in common is a desire to build communities of shared interest and shared values. I like that.
As to the future, we have plans to expand and expand quickly. Great though NZ is as a place to live, we really need to focus on offshore markets where the potential for Pingar is at its greatest.
And that will probably be a key focus of this blog. I will try and write about the trials and tribulations we face in taking a great technology product, conceived in Tauranga, and raised in Bangalore, to market. I reckon right now that there is a fantastic window of opportunity to exploit. Time will tell. And so hopefully, will this blog.
I have been working with Pingar for over two years now. Living in Tauranga, Bay of Plenty, New Zealand has given me the time and space to help build the Pingar concept into an exciting reality. Of course, plenty of friends have helped. Both here and overseas.
Jacqui, my wife, has become accustomed to the early and late night calls necessary to talk to, and discuss strategy with, overseas partners. She knows what it takes - and at what time - to build a global business out of NZ!
The team at HBI Software in Bangalore have produced superb application architecture, design and code. They gave birth to Pingar and are responsible for its ongoing nurturing and development.
Pingar also have some great partners.
Microsoft UK invited John Beer, a fellow Pingar Limited Director in the UK to dinner in Henley on January 31st and we became a Microsoft 'Partner of the Future'.
UK Trade & Investment said in February that having reviewed the Pingar project, we had received 'Greenlight' status from the UK Trade & Investment's Global Entrepeneur Programme as a 'Technology of Exceptional Potential.'
Closer to home, I have been working with New Zealand Trade & Enterprise (NZTE) who have given me access to some of their overseas representatives and networks. They really do appear to understand some of the challenges facing NZ business who want to interact with offshore markets. Methinks I will be working closely with NZTE for some time to come.
Closer to home still, I have been working with Priority One, the BOP ICT Cluster, Tauranga Chamber of Commerce and Export NZ BOP - all based here in the Western Bay of Plenty. The one thing they all have in common is a desire to build communities of shared interest and shared values. I like that.
As to the future, we have plans to expand and expand quickly. Great though NZ is as a place to live, we really need to focus on offshore markets where the potential for Pingar is at its greatest.
And that will probably be a key focus of this blog. I will try and write about the trials and tribulations we face in taking a great technology product, conceived in Tauranga, and raised in Bangalore, to market. I reckon right now that there is a fantastic window of opportunity to exploit. Time will tell. And so hopefully, will this blog.
Subscribe to:
Posts (Atom)
