Xmas Cometh.......

The past few days have been a bit of a whirlwind. They always are in the run up to Christmas.

Given that a lot of Pingar's NZ-based advisers are now away until Monday 12th January, it has been a case of closing down as many files as possible. A week of manic activity will then follow. And then the departure to the UK for 3 weeks of winter.

Here in Tauranga, we will wind down from tomorrow and that includes this blog.

So I wish you a very Happy Christmas and New Year season. It has been a long year. A battery recharge is over due. Time to log off for one last time......

The Xmas Ham

Tauranga Game Fishing Club

[Update: Santa arrived early. It's ham on Christmas Eve!]

Tonight is 'Ham Night'.

That's the night when the Tauranga Game Fishing Club hosts its Annual 'Xmas Ham Draw'. Jacqui and I will be there.

We have already decided it will be perfect for Christmas Eve. We have the BBQ, we have the recipe, we have the guests. All we need now is the winning ticket.

Library House Woes

Library House, the data gatherer whose online products offer intelligence on VC deals and innovative venture-backed European companies, has apparently gone in to administration.

Library House hit hard times with bitter irony, as the very venture capitalists whose deals it thrives on for new data, sit on their money through the downturn. It's still aiming to sell all or part of the business.

For me, there is a sense of sorrow as well as a sense of loss. Library House were the organisers of both the UK Technology, Innovation & Growth Forum which Pingar presented to in March this year. They also organised the more recent Essential MediaTech 2008 Conference. It says something about the current VC investment climate in the UK & Europe.

If they can't raise funds, who can?

MYOB Premier

{Update: According to Stuart Bale at Xero, multi-currency functionality is slated for release before the end of the first Quarter 2009. Thanks for this update Stuart. Still love the interface.]

One of the challenges Pingar is facing, in common with all exporters - I hate that word - (so let's change it to 'those who engage with the global market') is the need for a foreign exchange strategy.

New Zealand is a small country in a big world. Our currency fluctuates perhaps more noticeably than many others. Fortunately for us, the British pound has shared some of our own weakness and therefore the two currencies have declined largely in parallel against the USD, the Euro and the Yen.

And so it is that I spent this morning installing MYOB Premier V12 onto our accounting system. It will allow us to manage multiple currency accounts and reconcile the impact of forex changes on the business. I had hoped that Xero would have added this functionality to their base platform by now. Unfortunately not, so we have had to settle with our Aussie cousin.

Of course having the system in place to manage the numbers is one thing. Determining the strategy to produce them is another. That's a challenge we will share with our accountant, Mr Meads. In the meantime it is one more training session for the upcoming Xmas season. It will not be the only one.

TGIF - Again

Where do the week's go?

It's about 7.50 right now and I am contemplating the next few hours. Apart from a meeting at 10.30am of the WBOP ICT Cluster Steering Committee in town, it's a wrap up on documentation and preparation for the Accountants on Monday. And a meeting with WaikatoLink in Hamilton same day. Plus the bank. Oops and getting a handle on the multi-currency bit in MYOB Premier edition.

TGIF - just one full week to go....

UK 2009

Having recently entertained John Beer in NZ, Jacqui and I will be packing our bags mid January to head off to Blighty. It will be an interesting trip.

There is currently significant partner opportunity there and the name Wales is cropping up with ever more frequency.

I am particularly interested in understanding the economic pulse on the ground. At the UK T&I Xmas reception in Auckland earlier this week, I experienced a slightly more downbeat assessment of the UK economy than I had expected. I know the economic situation there is challenging. The online Telegraph and Times, which I read daily, confirm that. It was interesting though to hear it directly from Her Majesty's local representatives.

In my previous post, I talked briefly about recruitment intentions for NZ. Those talks will be mapped in the UK next month. From here it looks as though there will be no shortage of potential candidates on the ground. That I suspect is the result of the downbeat assessment delivered on Wednesday.

Recruitment 2009

For the past two years, Jacqui and I have been the key drivers behind Pingar's development in New Zealand.

The end of 2008 sees Pingar in its strongest position to-date. Our morphing into a limited partnership and our successful recent funding round means we are now equipped to expand the team on the ground. Three areas have been specifically identified.

1. Partnership Secretary: Not of the typist variety. We will be looking to recruit a legal beagle who will ensure that compliance issues are addressed, our IP strategy is locked in and the very many commercial contracts we expect to complete are drafted and bullet proofed.

2. Head of Research / Technical Management: I have already blogged about our research intentions for 2009. This role will enable us to manage all the detailed relationships we have with both internal and external technical consultants. Serious project management skills will be require as multiple simultaneous projects will require concurrent management.

3. Digital Agency Specialist: As we roll out the platform, we want to get on the inside of the digital agency sector. This will be a senior appointment. Experience and significant external networks will be required. In such a new sector, this will be an interesting recruitment challenge.

I have asked Santa to consider, but sadly I guess a slightly more formal recruitment strategy will need to be followed. With just these three appointments, a number of our key medium term requirements are covered. And long term, they will provide the platform for our future growth.

What of my own role...and Jacqui's? Handing over these diverse and increasingly complex roles to committed professionals will enable us to focus on business growth and strategy. In particular, it will enable us to work on the partnerships and relationships we have already identified as being key to our growth.

2009 is going to be a very busy year.

Research 2009

Looking ahead, 2009 looks like it is going to have a very heavy focus on three or four very specific research projects.

Clearly because of the nature of the work, I have to remain reasonably zipped on the specifics. It does look however as though there will be new direct engagements with WaikatoLink, AUT and the University of Swansea in Wales. These projects will drill down on detailed aspects of the Pingar platform and prepare it for the competitive landscape we have clearly identified.

This research will almost certainly involve our ongoing relationship with the Foundation for Research, Science & Technology. It is hard to overestimate the importance of their work. In times such as these, it is vitally important that NZ businesses continue to invest in innovation and new IP. For Pingar, research is a significant line on the P & L. We view creating new IP as a cornerstone of our corporate development strategy.

So despite the economic times we are in, 2009 will see us pressing ahead with our research activities. For us, research is investment, not cost. It lays the foundation for Pingar's long term strategic growth.

Normal Service Resumes

I have been offline for the past few days. It says a lot about my diary and even more about the run up to Christmas.

I have just returned from the last trip to Auckland before Santa arrives. On Monday, it will be last trip to Hamilton. And then the Tauranga break gathers pace.

Normal service resumes......

TGIF

Back to normal means having a Friday post-work drink on the Strand and then a quiet night in. Oh yes, and a Skype call to HBI Software in Bangalore and an email exchange with the UK........

And then the weekend begins. Sometimes.

There is no doubt that this weekend is overdue. With John in town for the past two weeks, the normal routine has been somewhat challenged. The forecast for tomorrow is good, so fishing is on the agenda. And so is an evening BBQ with neighbours. It's a little scary looking ahead two weeks. There is a lot to do.

So, Thank God it's Friday. But first there are those Skype calls and emails to attend to. And that cold beer on the Strand.

The Xmas Season begins

Santa arrived early this year in the shape of Allan Bollard, Chairman of the NZ Reserve Bank, as he reduced the OCR by 1.5% a few minutes ago. His timing is bang on.

Later today, the BOP ICT Cluster Steering Group is hosting its annual Xmas drinks party. I will be there.

The rate cut though says a lot about the state of the world economy. And the weather. Confused? If you are reading this in the UK or the US, let me explain. The NIWA summer forecast for NZ is for below average rainfall and above average temperatures. This means a drought could be on the way. Not great when your major exporters are agricultural based.

So for those Northern hemisphere readers, I strongly recommend NZ spring lamb for your New Year festivities. Santa this year will come in many forms.

UK Democracy under threat

The Met Police clamp down on democracy

[Update: First a 'thank you' email from Damian Green overnight and then an admission by the Speaker of the House of Commons that the Met did not have a warrant to search Damian Green's Westminster office. Point in original post below proved.]

This is the moment when officers from the Metropolitan Police raided the Westminster office of MP Damian Green amid a growing political storm in the UK. Tory immigration spokesman Green, 52, was quizzed for nine hours by counter-terrorism officers after being arrested as part of an inquiry into Home Office leaks, provoking fury among Conservatives and other backbench MPs.

Green was arrested last Thursday on suspicion of "conspiring to commit misconduct in a public office and aiding and abetting, counselling or procuring misconduct in a public office." Police said they acted after receiving a complaint from The Cabinet Office, the department in charge of the rules governing the conduct of government employees and ministers.

This action - me speaking - is the latest and most blatant example of a system which is rapidly turning democracy and the legal system on its head. The willingness of UK bureaucrats to use 'anti-terrorism' and 'anti money-laundering' legislation for purposes for which they were never intended are now legion. I am experiencing this myself. Pingar LP requires some advice from Baker Tilly, our UK accountants. The 'anti money laundering' process we are having to go through to prove Pingar LP (a New Zealand registered entity) is not a front for Al Quaeda is quite frankly a disgrace. Every offshore entity wishing to deal with the UK is considered as such. What makes this even more absurd is that I have been a client of Baker Tilly for years.

The same logic applied when we opened the Pingar bank account at NatWest in the UK. I had to provide detailed passport evidence duly signed to confirm my identity. I had banked with the same commercial branch for almost ten years signing hundreds of cheques on the way.

I try not to comment too often on things 'political'. It is not the basis of this blog. I can say however that these actions do impact on perceptions of doing business in the UK. Right now, the politicians do not lead. The UK is going back to Cromwellian times when everything was proscriptive. It is not a place to be.

It will be interesting to see these changes when I return next month. There is not a single person I speak to in the UK that does not comment on the passing of traditional British values and the emergence of a new frightening unelected regime.

For regular readers of this blog, you might sense some tension in the words. I retain a strong affection for the UK and the unfolding events both sadden and do incense me. They are plain wrong.

It's back to normal.....

Whatever normal is.....

John Beer left NZ last night and as I write, is en route back to London. The past 10 days have been a bit of a whirl as we attempted to cover off a whole host of issues relating to Pingar.

I guess the key achievement was to prepare a road map for the next twelve months in our post-restructured, post-funded state. With client engagements underway in both the UK and NZ, it was critical that we both understood exactly where we stood. The meetings in NZ have confirmed that. Our position is now plain.

So Jacqui and I are now finalising our own plans to visit the UK at the end of next month. We will be on the ground for three weeks. It will enable us to roll reverse the activities of the past 10 days - namely, to meet our UK-based partners, advisers and clients to get a better 360 view of the global operation. Having ramped up our own Communication Strategy in NZ over the past few months, it is important we do the same in Blighty.

So for now, it's back to normal. Tauranga, Hamilton and Auckland. In that order. For the time being, London can wait.

Mumbai Thoughts

John and I arrived back from Auckland last night. 'On the road' effectively for the past three days, I had only been vaguely aware of the unfolding tragedy in Mumbai. Watching BBC World this morning, I am now beginning to understood the true extent and impact of the terrorist attacks.

I guess what makes this episode more tangible is that I have stayed at the Taj Mahal Hotel on two previous occasions. I remember well the amazing interior and the sheer luxury of the place. Together with the hugely attentive staff. This is in every respect one of the world's 'Great Hotels'. A couple of blocks down the seafront is the Oberoi Hotel, scene of another of the terrorist assaults. I know it well. I remember the ground floor reception area and lounge that leads to the main terrace. Many a Kingfisher was consumed there.

Today, my thoughts are with HBI Software in Bangalore. Bangalore is a two hour flight from Mumbai, but one thing it shares in common with Mumbai is a heavy concentration of American and British citizens. This is not called IT City for nothing.

India is perhaps the world's greatest democracy. I am constantly amazed how a country with so many religious and regional identities has developed and thrived. It is my sincere hope that the events of the past 72 hours are a one-off incident and not a harbinger of things to come. India deserves better.

A Busy Week

Mills Reef Winery - Hosting Tonight's Investor Reception....

Busy? That is no understatement.

John Beer has now been in NZ since Saturday and we have covered a fair number of meetings and events already. And, it is not going to get any quieter, any time soon.

Today finishes with a Pingar Investor Reception at Mills Reef. They have heard about him. Now they can meet him.

Tomorrow the focus is on product as we head for WaikatoLink in Hamilton. And then it's Auckland on Thursday and Friday for a round of nine meetings. No-one is missing out on this visit.

What this week is doing is enabling John to update on all things Kiwi and for Jacqui and myself to update on all things UK. I have blogged on this before, but no matter what comms technology you have, there is no substitute for good old 'face to face' meetings. The week to-date is proof of that.

US Online Advertising Booms

Following on from my recent posting on NZ Online Advertising sales, it is interesting to compare our local performance with that of the United States.

Once again, the source is PriceWaterhouse Coopers and the IAB. Internet advertising revenues in the US totaled $11.5 billion for the first six months of 2008, with Q1 accounting for approximately $5.8 billion and Q2 totaling approximately $5.7 billion. Internet advertising revenues for the first six months of 2008 increased 15.2 percent from the same period in 2007.

Search continues to lead the sector pack, followed by Display Banners and Classifieds. Search revenue accounted for 44 percent of 2008 second-quarter revenues, up from the 40 percent reported in 2007. Display Banner advertising, the second largest format, accounted for 21 percent, followed by Classifieds (14 percent), Lead Generation (7 percent) and Rich Media (7 percent) of 2008 second-quarter revenues.

It will of course be interesting to check out if this growth has been maintained in the second half of 2008. Against the backdrop of the dire financial market turbulence in the States that will be the real test. My own guess remains that billings will have held up remarkably well. Whilst online advertising in certain sectors such as banking and auto will almost certainly have declined, this will be more than recompensed by the more general drift of ad spend from the offline world to the online one. The severe market turbulence currently in play might just have accelerated that drift.

NZ Online Advertising Booms

According to the NZ Interactive Advertising Bureau website, all categories of online advertising continued strong year-on-year growth according to the quarterly IAB Insight report – covering Q3, 2008 – which was released by the Interactive Advertising Bureau of New Zealand and PricewaterhouseCoopers yesterday.

Despite a tightening economy, total online advertising was up 22.3% on the same quarter last year, and all categories showed double-digit growth on Q3 last year.

"Online advertising spend has experienced strong growth in 2008, particularly when considered in the context of recent economic conditions. This is indicative of the appeal of interactive advertising, where advertisers have the ability to quickly gauge the market response and act accordingly," says Chris Perree, Partner at PricewaterhouseCoopers.

Mark Evans, CEO of IAB NZ says trends in NZ are mirroring those seen overseas. "Year-on-year growth continues at pace in New Zealand. This quarter things have slowed a little from the type of hockey-stick growth curves we’ve been seeing as people stand back and take stock of what’s happening globally, but we’re still expecting strong growth to continue into next year and beyond."

All the feedback I am getting at Pingar reflects the same story. This sector is growing and it is growing strongly. It is often said that economic downturns create opportunities. My own take is that if online advertising can continue current growth trends when times are tough, just imagine what will happen when economies finally free up again.

At a time of growing global pessimism, that is a comforting thought for those close to me.

It's the Real Beer

John Beer is traveling from the UK to spend a few days in NZ next week.

As the joint co-founders of Pingar, it will be a great opportunity to update on events both here and offshore. It is going to be one busy week.

It will also help prepare me for my own market visit to the UK in January.

Tonight, there is a scheduled conference call at 21.30 between NZ and the team in London. That's normal. Next week's face to face meetings though will help consolidate what we have achieved over the past few months. It is almost time to unzip.

NZ - Australia: A Single Capital Market

Reuters is reporting that NZ Prime Minister-elect John Key said that he hopes to widen a free-trade deal with Australia and develop a single capital market between the two neighbours.

Key, in an interview with the Australian newspaper, said he would meet his centre-left Australian counterpart, Kevin Rudd, to discuss his ambitions at this week's Asia-Pacific Economic Cooperation summit in Peru.

Key said he hoped to harmonise securities regulation, accounting procedures and some tax legislation to create a single market for investment capital, the paper said. "I am a very pragmatic person, I am measured and I am not going to be guided by blind ideology," he said.

In my experience, new leaders often have their best opportunity to make a really significant impact whilst they continue to enjoy a honeymoon period. Key is undoubtedly in that position now. And creating a single market for investment capital would most definitely meet the definition of 'significant impact'.

I have been at this particular coal-face for some time now. Accessing investment capital in NZ is challenging at the best of times. And these are not normal times. Opening up the Tasman could provide a massive boost to NZ business. Unfortunately, these initiatives normally take some time to negotiate and even longer to put in place. So what is Aussie PM's Kevin Rudd's likely take on Key's thoughts?

Think back to August 19th. Speaking to a Auckland Chamber of Commerce meeting, Rudd said that the CER Treaty between Australia and New Zealand was one of the most forward-looking economic treaties in the world, but it could be improved further. He said he was committed to moving towards a single economic market between New Zealand and Australia, and hoped that efforts to improve the Australian regulatory environment would help New Zealand.

So perhaps there is some scope for some real progress on Key's thoughts for a single market for investment capital. Let's just hope that his honeymoon period lasts for some time yet.

CNBC - The New Coro Street

[Update: And a further 100 point fall in the final 5 minutes. Crazy]

I often complain about time zones, but 9.00am - 10.00am makes for compelling television viewing. On Squark Box, you can see fortunes being won and lost in seconds. Never has 'live drama' been so real and so compelling.

CNBC is the Fox News of the financial world. Squark Box is its signature program. It tracks global stock markets. It is on Channel 95 on Sky.

You know that Wall Street has lost the plot when you tune in at 9.45am. That is 15 minutes before the closing bell. For the past few weeks, all bets have been off as the index has gyrated with no apparent fundamentals driving the moves in this final quarter hour. Since starting this post, the Dow Jones has lost 100 points.

And you think Ashley on Coro Street has anything to panic about? For the best drama on 'The Street', try Channel 95.

International Tax

I arrived home from Wellington yesterday to discover a letter from the United Kingdom's HM Revenue & Customs. It read:

Dear Mr P Wren-Hilton

We have looked at our current tax records for you and now believe we should be asking you to complete Tax Returns each year. On the reverse of this letter you will see why we ask some of our customers, including you, to fill in returns.

I turned over the letter and discovered that HMRC require tax returns if you are a company director in the UK. The fact that I generate no income from the position would not appear to be relevant. So I am looking at the time and potential cost of engaging a UK-based accountant to manage this locally. It makes me think. Will I have to follow a similar process every time Pingar incorporates in different countries? I could end up employing an army of tax accountants and form fillers.

I accept that there has to be a process to manage international tax obligations, but this one appears a little lopsided. I earn no income as a company director. John's visit to NZ at the end of the week could not be better timed. It will allow us to assess my actual role (if any) on the Pingar Ltd UK board. Falling foul of national tax authorities is certainly one precedent I want clipped in the bud. Resigning from this particular position might just be the best option.

Thrive Wellington

Jacqui and I spent yesterday at Thrive Wellington. About 350 people attended a series of excellent motivational presentations. Just the ticket when set against the darkening international financial clouds.

We spent much of the day (and evening) with Gareth Davies from International Business Wales. The timing was good. John and Tim are currently engaged in direct discussions with the Welsh Assembly and its different agencies back in the UK. And Gareth managed to give a good plug for Pingar during his own presentation to the conference.

There are clearly close connections between IBW and the NZ ICT community. That became clear during the presentation. IBW has for the past two years run the Technium Challenge International. And for the past two years, the winners have come from New Zealand. First it was Xero from Wellington and last year it was TracPlus Global, who are based in Dunedin.

There are also a number of other similarities between the two countries. Both countries share similar population sizes, a love of rugby and a lot of sheep. On that note, this posting ends.

Azure Assured

The conference call with Tim, John and Jim in London was scheduled for 7.00am this morning. I thought the focus might have been on today's Essential MediaTech 2008 Forum. It went well. The new Chair of Pingar's UK Advisory Board Lord Erroll joined the UK management team at the Forum and Tim's presentation hit all the right buttons.

But it was recent discussions in the UK with Microsoft that really hit my button. And appropriate perhaps that one of the main sponsors at Essential Mediatech 2008 was Microsoft Bizspark.

I have blogged about Microsoft Azure before. However, I only really began to understand its implications for Pingar this morning. In short, once you’re completed the coding of an application, deploy it to 'The Cloud' and run it in Windows Azure and make it available via the internet to your end users. You can then scale compute capacity up or down based on traffic.

This has significant CapEx benefits. It means effectively that you 'rent' server capacity and can tune capacity and bandwidth accordingly. This clearly removes the costs associated with setting up large backbone capacity in terms of servers, bandwidth etc.

I am not quite sure how The Cloud and Azure is distributed globally. I need to check that one out. If Microsoft Azure delivers what it preaches however, it is a big step forward and one of immense benefit to Pingar.

We joined Microsoft's Global Start-up Accelerator Program in June. There is a meeting in London next Tuesday at which Pingar will engage directly with Dan'l Lewin and others from Redmond's Emerging Business Team as part of this Program. Azure will be very much part of that discussion.

And then John Beer hops onto a plane at Heathrow and heads for New Zealand. We have been planning an agenda for some time and I will post throughout John's visit. I expect to unzip further through that trip.

Understanding Scalability

On Friday, I had an interesting meeting at NZTE's offices in Tauranga. The discussion focused on HBI Software and its outsourcing role in Bangalore.

One of the greatest challenges most NZ ICT businesses face is that of scalability. This is partly down to the shortage of skilled software engineers and partly down to the limited size of the domestic market.

More on the outcome of Friday's discussions shortly, but the ability to outsource certain back office functions and IT development work is not one that many NZ businesses have addressed. In part, this is down to a lack of an obvious entry point. Where do you begin to look for offshore partners?

It's a question that I hope HBI will assist answer in both the medium and the longer term. Global engagement of this type is essential if NZ ICT businesses are to seiously grow their business. I do understand the SaaS model, but in terms of the broader IT space, offshoring part of your work process should be considered an essential element of a business model.

'Two Ticks Blue'

My young nephew Henry made the right call. On Saturday night, New Zealand returned a National-led Government.

I cannot think of a time however when the back-drop to a general election was so dark. This is one global financial crisis that is not going to go away soon. So Pingar's focus is on identifying opportunities, managing costs and preparing for at least two more years of general economic gloom.

John Key's 'honeymoon' period, will I guess be short.

Tauranga CoC BA5

A lot of my focus next week will be on events in the UK. Not least the Pingar presentation on 11th November at Essential Mediatech 2008.

Tonight however, the action is much closer to home. Jacqui and I will be at the monthly Tauranga Chamber of Commerce Business After 5. Tonight it is being hosted by HOBEC at their new offices in The Hub on Cameron Road. It will be good to catch up with people I do not have the chance to see often enough.

I might also have some interesting updates on Monday. I can't be more explicit now - and to be honest even Monday might be a little early. 'Things' are happening though over the next 48 hours. Let's see what I can say over the weekend.

Yahoo Boohoo

So Google has canceled plans for a search advertising partnership with Yahoo amid opposition from antitrust regulators and advertisers.

According to Reuters this morning, Yahoo has expressed dismay at Google's decision, saying it was "disappointed that Google has elected to withdraw from the agreement rather than defend it in court."

The U.S. Justice Department, in a statement issued on Wednesday, said it had told Google that it planned to file a lawsuit to block the deal on antitrust grounds.

"Had the companies implemented their arrangement, Yahoo's competition likely would have been blunted immediately with respect to the search pages that Yahoo chose to fill with ads sold by Google rather than its own ads," the Justice Department said.

This is no great surprise. The only question now is how quickly Microsoft will be back at Yahoo's front door. This time however, their offer will be significantly lower than their bid earlier this year. And this time round, it will be much more difficult for Yahoo's CEO to say no. Tough times ahead then.

Go the Bay!

Tonight's Bay of Plenty Times 'Bay Money' section headlined 'Dynamic Bay Trio Honoured'.

Local dental manufacturer TrioDent has been named in the top 10 of the country's 50 fastest growing companies - based on percentage revenue growth over the past three years. Tabak Business Services has been judged the Central North Island's fastest growing business services company for the third year in a row in the annual Deloitte/Unlimited Fast 50 awards.

The article also features Pingar. (Read my past few postings to understand why).

It is great that the Bay is home to such innovative businesses. Hats doffed to both Triodent and Tabak.

And also to Julie Gill at Unlimited who co-sponsored Tabak's award. A mole tells me that she has just sold her publishing operation, Infego, which includes Unlimited Magazine, to Fairfax Publishing. Now that's cool!

Pingar in the Media

I have said before that it is often very difficult to be totally transparent when blogging. Things are happening in the background which you know of, but cannot write about. That is surely true at this time at Pingar.

And then the day arrives when something is either signed off or a Confidentiality Agreement terminates and you can actually post something more substantive.

Finally, enough breaking news is available to enable you can prepare a release. That's where JML Communications come in.

And so it is that within the past 24 hours, a couple of great articles have appeared online. One was produced by The National Business Review. The other by IT Week. In the next few days you will also be able to download a PDF of re-Think, the University of Waikato Management School journal. This is being distributed free of charge with copies of both the New Zealand Herald and The Dominion Post next week. It contains a good article about Pingar's R & D work with the Hothouse team at Waikatolink.

Now though we turn full cycle to me knowing new stuff which I cannot actually post about. And so the process goes on. One hint however....just one.

My prediction for 2009 is that this process might just speed up a tad. It is amazing what extra resource can do in terms of assisting execute The Plan. That means more developments, more concluded NDAs and more breaking news. That at least is part of The Plan!

GBP - NZD: The Hedge

I have posted a couple of times before about the dangers to Pingar of rapid currency exchange rate moves. The past month or so have seen plenty of those.

So I had a meeting this morning with my man as ASB Bank. We decided that the new Limited Partnership needed a sterling account. This would enable GBP to be moved into NZD at the moment of our choosing.

It means that we will have to open a correspondent bank account in the UK. I guess this might have to be with the Commonwealth Bank of Australia, ASB's parent bank. The NZ child has no direct formal representation in the UK.

We then began to talk about 'hedging'. Apparently I need to speak to one of the in-house ASB trade experts. It made me think. Is it possible to take a reference on past performance? Or is that covered off by 'client confidentiality' clauses? Maybe the Melbourne Cup offered a better hedging option.

I backed Septimus. Local horse Viewe won. Oops. Back to the drawing board then.

Wellington Bound

It's been some time since I last visited Wellington. So the trip to Thrive Wellington next week is not before time.

The event features a number of keynote speakers. And by all accounts from the 2007 version, it provides a great forum for new ideas.

The visit to 'Windy' will also enable me to catch up with a number of people I have been meaning to contact for some time. A lot has happened with Pingar since my last visit. Gareth Davies of International Business Wales is presenting and I hope to meet up with Julien from JML Communications.

I'll be in town for three days. If you read this blog and fancy a coffee, then drop me a line today.

Cyber Squatting

There is a loan company in New Zealand that owns a domain name which relies on users misspelling one of NZ's major media outlet's URL. I will neither name the loan company, nor the site, because I do not want to encourage traffic to it.

The loan company's website does say however on its home page - 'You came here because you need finance......'

Not quite. I arrived there because some idiot decided to engage in a cheap form of guerrilla marketing. That tactic says a lot about the company and I guess even more about the product.

I find cyber squatting offensive. It feels almost as though the perpetrators are invading my private space. I don't know the return they get, but after 12 years in this business, I still find some aspects downright cheap. Unlike the loans I so desperately do not need, I suspect.

Moving On

I woke up this morning feeling a little flat.

I am putting that down to an absolutely appalling round of golf yesterday. I could not putt to save my life. It was the first time I had lifted a club since February. It has been that kind of year. So I am aware today of body parts not apparent for some time.

It probably also reflects the size of the 'To Do List' compiled over the weekend. It is not short. Throw in the Melbourne Cup, the US elections on Tuesday and the NZ General Election on Saturday and this does not constitute a 'normal' week.

For the moment however, 'moving on' is my main focus. Body parts willing.

Taking Stock

More time to reflect.

The creation of Pingar LP and the associated first funding round really has taken up a significant amount of my time over the past three months. I am revisiting a number of other priority areas this morning and it is quite scary how old some of the last contacts have become.

Building on what we have now created is going to take some effort. I am compiling lists (I am beginning to sound like Jacqui) in the hope of prioritising my actions. There are a lot of them.

I am breaking down the priority areas into a series of tasks. By categorising each priority area into titles: For example: Product, Sales, Marketing, Investor Relations (that's a new one), Compliance etc, I am able to begin to create some order.

I am now looking at the calendar and realise that Monday is November 3rd. That means Christmas is not far away and this is New Zealand. New Zealand is closed through January. That gives me perhaps six weeks to close off these lists. That is not long.

Which is probably why at 12.46 on a Saturday morning, I am sitting in the office. Alone.

Business, Politics and Life

This household is not exactly gripped by election fever. That's despite the fact that a General Election is only 10 days away.

I think part of the problem is MMP. That's New Zealand's Mixed Member Proportional electoral system. I can barely say it, let alone understand it. It's probably best described as a No 8 wire solution to fixing election results. 80%+ of the electorate vote for the two main parties and then the smaller parties decide who will govern.

Today, the polls suggest that National will win the election. Many commentators however think that Labour will form the next Government. Work that one out if you can.

For business, life will go on whatever the outcome of the post election lolly scramble. That is always the way.

Microsoft's 'Head' is in the Cloud

According to the BBC, Microsoft has unveiled a cloud computing service, in which data and applications will not be stored on individuals' computers.

The new platform, dubbed Windows Azure, was announced at Microsoft's Professional Developers Conference in Los Angeles. The platform was described by Microsoft's chief software architect Ray Ozzie as "Windows for the Cloud". The framework will be offered alongside the next Windows release, Windows 7.

The aim is to allow developers to build new applications which will live on the internet, rather than on their own computers.

Now this really is quite big news. It moves Microsoft more firmly into the 'Cloud' and brings them nicely into a more direct toe-2-toe square-off with Google and their growing online 'apps' business. I confirmed that the news was big by checking out Steve Clayton's blog. He was so up for it you would have thought that Liverpool had knocked in four goals against Chelsea, not just one.

Steve also added an extra dimension to the announcement. Namely some more background and credibility to Microsoft's direct investment into datacenters of an 'unbelievable scale'. He has posted many times about this investment before. I just hope they leave some room for Pingar's servers.

As part of our own ongoing Microsoft talks, we hope and expect to sit on some of the NTT global backbone which I think is shared in part, by Microsoft. Having looked at Pingar's own anticipated server requirements as traffic builds up, that adds up to more than a few racks.

Azure has another meaning; it's 'Sky Blue'. Not much room for clouds there, but I do think this announcement might just have some take on Microsoft's longer term development strategy. As ever though, only time will tell.

The Welsh Connection

Identifying target markets is one thing. Identifying locations to base yourself within those target markets, is another.

Pingar currently has an office in SOHO in London's West End. Looking longer term, we have had good discussions with both the East of England EDA and more recently, the Welsh Development Agency. Central London is not perhaps the best location for all our back office and UK-based market development resource.

The Welsh connection has been aided by having Gareth Davies as Australasian Head of International Business Wales. Although Gareth is based in Sydney, he travels frequently to New Zealand so dialog has been straightforward. Additional support from UK Trade & Invest in Auckland has further reduced the miles between Auckland and Cardiff.

Discussions on the ground are of course being managed by John and Tim. They are in the best position to identify exactly what resources Pingar require, where and when. That process of investigation though is symptomatic of the way that Pingar will be approaching other global target markets. It's not just the generic market location. It is identifying the specific location that will best aid and assist Pingar's market entry and growth strategy. That process requires research, research and research. And not a little patience.

Introducing Earl of Erroll

It's great to be able to formally announce that the Earl of Erroll has agreed to become Chairman of Pingar's UK Advisory Board.

Lord Erroll (Merlin) has worked in IT most of his life. He is also one of the Hereditary Peers who was elected to stay in the House of Lords, where he takes a particular interest in ICT, Countryside & the Environment, the Constitution and Scottish matters.

Working on software development in the accounts and agricultural field, he subsequently freelanced, developing portfolio management, communications and general bespoke databases, ending up as Director of Development at GiroVend, working with electronic purses and smartcards. He then moved into marketing and business training and went on to become chairman of an e-procurement consultancy.

Within Parliament, he plays an active role in several ICT groups, especially those looking at regulatory issues involving Communications, the Internet, Personal Identity and Government Data Sharing, linking this with a Local Authority perspective through his work on the board of LASSeO (The Local Authority Smartcard Standards e-Organisation). He sits on the council of PITCOM (Parliamentary Information Technology Committee), is on the board of EURIM (European Information Group), is Secretary of apComms (All-Party Communications Group), Vice-Chairman of the All-Party Group on Entrepreneurship, and Treasurer of the All-Party Group on Risk and Adventure in Society. In 2007 he sat on the Science & Technology Select Committee’s sub-committee on Personal Internet Safety.

He is President of E-RA (the E-business Regulatory Alliance) and also sits on other bodies such as the Information Systems Security Association (ISSA) and the Nominet (UK) Ltd.

He has an extensive network of contacts across government, industry and the city, and is a professional public speaker, especially on ICT, security, legislation, the citizen and the state, and the internet, as well as traditional themes.

Exchange Rate Alert

It's hard to ignore the global financial meltdown at the moment. Every positive milestone Pingar achieves has to be set against events not in our control. The past week is evidence of that.

On the positive side, Pingar LP was finally incorporated in New Zealand, the company was selected as one of Europe's 100 'hottest' mediatech companies in 2008 by an advisory board of leading European venture capital companies and Earl of Erroll was recruited as Chairman of Pingar's UK Advisory Board. In normal times, not a bad five days. These are not however normal times.

Over the same week, global equity markets tanked, the NZD went south and the 'R' word was back with a 'V' (I think that's 'Vengeance'). Today, it is the projected direction of the NZD which is of most interest to me.

Traditionally, economists say that a lower NZD benefits NZ exporters. And in one respect, they are absolutely correct. However such benefits are not available for NZ companies in the process of establishing offshore beachheads. Those NZD costs have just gone up.

Fortunately for Pingar, GBP is currently our target market currency. It has also headed south over the past few weeks so the exchange rate difference between NZD & GBP is not as pronounced as say NZD v USD. That's a whole different ball game.

Normally, New Zealand starts the world's financial day. Not tomorrow. It's Labour Day here so the banks are closed and we will all go out fishing. At least that's my plan. By the time the NZ markets re-open on Tuesday, a whole day will have passed. No doubt new equity and currency levels will have been breached and re-set.

So I hope the fishing tomorrow is good. It might be the last for some time.

Banking on Support

(10.55 Update: Process took just 20 minutes. Time to hang your head in shame UK)

This morning, I have a meeting with ASB Bank in Tauranga. Pingar LP (that sounds good) needs a new bank account.

The process will take about 30 minutes. And when I leave the branch, I will not only have an open account, I expect to have a new EFPOS card in the wallet.

Now let's switch the same scenario to the UK. Tim, John and Jim will have to follow a similar process. The term 'chalk and cheese' comes to mind. For any New Zealand company setting up a new operation in the UK, banking is one of the greatest differences between our two countries.

I know this blog is read by 'my man' at NatWest in the UK, so I am going to be careful how I say this. UK banks are remote, distant and expensive. Their recent bailout (and part nationalisation) has not to-date had much, if any, impact on their behaviour. Concern for their own balance sheet outweighs concern for the customer.

There. I've said it.

It does however raise a number of important questions. Just which bank should you use in the UK? That is a question that will no doubt dominate conference calls to the UK over the next few days. And it is a critical question for NZ businesses entering the UK market. In a country obsessed by anti terrorist and related anti-money laundering legislation, setting up a bank account in the UK is not a straightforward process.

This is one subject I guess I will be posting about again in the not too distant future.

Introducing Mediatech 100

Library House has announced the launch of the Kemp Little Library House Mediatech 100.

The Kemp Little Library House 2008 Mediatech 100 represent the hottest 100 private mediatech companies operating in Europe. They were selected by rigorously assessing companies using Library House proprietary data filters, and an expert advisory panel. By considering growth potential and market impact potential, the Kemp Little Library House 2008 Mediatech 100 forms a collection of 100 companies most likely to change the mediatech world.

The advisory panel members included some of the most prominent mediatech investors and experts in Europe, with senior mediatech representatives from Amadeus Capital, Kodak External Alliances, Qualcomm Ventures Europe, Cobalt Corporate Finance, SPARK Ventures and Advent Venture Partners to name but a few.

So why is this announcement significant?

Modesty aside, Pingar was identified as one of the 100 hottest mediatech companies operating in Europe and it is therefore great to have been listed in the Kemp Little Library House Mediatech 100.

So what does it mean?

On November 11th, Essential Mediatech 2008 is being held in London. Essential Mediatech 2008 is the authoritative voice on the state of play in the mediatech sector, bringing together some of the most influential movers in the industry and assembling the most exciting companies, with the aim of answering the most pertinent questions facing the sector. (That’s their words, not mine)

Speakers will come together and share insights in a series of keynote speeches, chaired panel sessions, and stimulating company showcases, selected from the Library House exclusive “Mediatech 100”, with opportunities for high level face-to-face networking, and interactive Q&A, at what will be Europe’s must-attend mediatech event. (Once again, their words, not mine)

And so to the point. Pingar is one of the chosen few from the recently announced Mediatech 100 to be invited to present and showcase at this major event. (My words, not there’s!)

Tim and John will present. I will report back. I might have been silent for the past few weeks. Pingar has not.

Pingar LP Incorporated

One of the major issues affecting NZ companies has been their ability to attract offshore investment.

It’s not a quality of earnings thing. It’s not even the fact that NZ is two bits of rock stuck somewhere in the Southern Ocean. I think the driving force behind NZ’s lack of global appeal has been the complete lack of half decent legal and investment structures that appeal to global VC and private equity investors.

On 2nd May this year, all that changed. The Limited Partnerships Act 2008 came into force enabling registration of Limited Partnerships and Overseas Limited Partnerships. According to the NZ Companies Office website, ‘the introduction of an internationally recognised Limited Partnerships regime will remove barriers to foreign capital investment which provides a valuable source of funding for new companies and early stage expansion capital. The Act will enable New Zealand businesses to compete internationally on a level playing field for venture capital funds’.

Hats doffed and glasses raised to its authors..

I think the expression is ‘first cab off the rank’. I have always recognised the long-term importance of ensuring Pingar was attractive to offshore investors. I am sure there have been times when I have stood on the Mount Main beach and heard the sound of laughter drifting in from the East; the sound of potential competitors in Silicon Valley laughing as they have looked at New Zealand investment structures and NZ ICT businesses historic failure to attract offshore investment – save by moving IP, senior management and value offshore.

So today, it is good to say that after no short space of time and anticipation, Pingar LP is now a fully incorporated NZ entity. We have a registered number. It is 2184257. We can now compete on that level playing field. And we are ready. Our time has come.

Post No 515.

I am back from my self-imposed blogging exile.

I suspended ‘normal service’ three weeks ago due to a number of imminent Pingar announcements. I guess the role was not unlike that of a publicly quoted company going into silent mode immediately prior to a reporting season. The reasons were not too dissimilar. It is difficult to blog transparently when all around you significant events are happening.

The key developments effecting Pingar have now either occurred or are in the process of rolling out. So it’s back to business and back to providing some insight into the issues I face, day to day, in managing an NZ-based business in a global world.

Of course, since my last blog just three weeks ago, that world has undergone something of a facelift – perhaps ‘facedrop’ is a better description. Allan Bollard has just announced a full 1% cut in the OCR and the NZD has bounced back against the USD. The British Pound has tanked and equity markets have headed south. That’s the type of world we now live in.

How will Pingar manage against this global backdrop? Well I guess some of the subsequent posts will demonstrate how we have been actively working on this scenario for some months now. I think you could say that we saw it coming. And I hope some of our actions might provide some thought for others.

So that’s the end of Post 515. It’s good to be back. Let normal service resume.

The Professionals

Pingar employs good professional advisers. It's a price well worth paying.

Trying to map and time appropriate advice against commercial time lines however is an art I have not yet fully mastered. Documentation I suspect might take 2 weeks to complete usually ends up taking 2 months. I am in one of those situations now.

Managing the knock on effect can be challenging. Having raised expectations, the task is then to moderate these where possible. And that applies across the board: From development to sales, from finance to distribution.

Getting the fundamental structures and documentation in place however are critical for our long-term growth. That's the view of the Professionals. And I have to agree.

Even if it does mean having to temper the enthusiasm of those around me at the present time. To them I say, "Next week is the week..." Only they will understand what this means!

Pingar at Right Click Expo

Microsoft NZ and HP NZ have organised a Right Click event in Tauranga next week.

The event has been designed to introduce business to the benefits of emerging information technology. Registration is FREE for all businesses so that all companies have the opportunity to address technology issues that may be barriers to their business success.

Tauranga Chamber of Commerce has engaged local industry experts to present at this event. So Pingar will be there. Check us out in the Exhibition area. And find out more about 'The Next Generation Search Platform'.

Investor Relations

Time to unzip a little.

Pingar is closing its first funding round. And the great news is that it is investors in Tauranga who have fronted up. Conceived in the Bay, Pingar stays in the Bay.

As the funding round and new structure take effect, the focus is now on executing the business plan and model that they have invested in. So eyes are now firmly set on the Pingar team in London, UK, where so much of the operational grunt will now take place.

Given the broadening of the investor base, a formal investor communications strategy now needs to be enacted. JML Communications will advise on this.

There is however one significant Kiwi benefit of a localised investment community. It is called the Friday 'shout'. Not perhaps the most internationally recognised investor relations model, but one we will test here. I would expect bartenders on the Strand will be at the ready.

Spring est arrive

Time for the BBQ and the Deck

The global news on BBC World this morning reflected the ongoing turmoil in world financial markets.

In one part of New Zealand however, the focus is slightly different. Clocks changed yesterday as Daylight Saving kicked in. It means it is now light until 19.45

And getting lighter every day as we approach Xmas in three months time.

It also means adversely that I am now one hour further away from HBI Software in India and the Pingar team in the UK. That's the downside. Conference calls get later.

Yet whilst global meltdown might still eventuate, at least the prospect of upcoming summer months, warm nights and the odd cold beer do help prepare the body and mind for the future. Spring very definitely has arrived in this part of Godzone.

What Recession?

Adweek is the latest source to confirm what is becoming increasingly obvious. Whilst the broader economy might be feeling the impact of the global credit crunch fall-out, digital marketing remains poised for growth, according to the latest data from eMarketer.

Advertisers will spend about $25 billion online this year in the U.S., eMarketer projects, which is a growth rate of 17.4 percent over last year. In 2009, growth will drop somewhat, but will still yield an impressive 14.5 percent for total ad spending of $28.5 billion.

By 2011, an anticipated boom in online video advertising, combined with a recovered economy, will mean spending growth greater than 20 percent for the first time since 2007. Marketers are expected to devote more than $40 billion to online advertising that year.

Last night, the fundamental shift in advertising spend was apparent when our weekly free copy of the BOP Property Press dropped onto the carport floor. A year ago, it contained about 84 pages. Last night, it was nearer 50. The real estate market might be quiet, but that is only part of the story. The reality is that property advertising has shifted online big time.

For now, the online advertising space seems to be as recession proof as any.

Auckland Bound

I have almost given up blogging about my trips to Auckland. They are now so frequent that the girls in the Mercer service station start toasting my Pokeno Bacon sandwich as I walk in through the door.

Tomorrow is no exception. It's a session with Lowndes Jordan and then a business dinner. On a Friday. And in Auckland. The Strand - take note.

Online Banking Woes

[15.17 Update: The home page can now be accessed. The reason I guess for the stuff up was that someone forgot to embed the certificate into the index page. The bank's strap line is now: Bigger, Brighter, Yellower... I guess the mood in ASB House during the three hours downtime this morning might have been a shade darker.]

Online banking in New Zealand is a joy. In fact banking period in New Zealand is a joy. To understand that statement you will probably realise that I spent 46 years in the UK. Same sector, different story.

Imagine my horror then when I tried to access my online account here first thing this morning. The web browser said simply:

'There is a problem with this website's security certificate'.

'The security certificate presented by this website was issued for a different website's address. Security certificate problems may indicate an attempt to fool you or intercept any data you send to the server'.

'We recommend that you close this webpage and do not continue to this website'.

It's now two hours later and I am getting the same browser message. Someone somewhere has stuffed up big time. With business and consumers now so reliant on online banking transactions, this is not a good look.

NZX Travels to London

The NZX announced earlier this week that it has entered into a non binding Memorandum of Understanding with new London stock exchange PLUS Markets Group.

Under the MOU, NZX and PLUS Markets will explore potential alignment of regulatory requirements that would enable companies listed on either market to dual list.

In 2007, PLUS-quoted companies raised over GBP 45 million in primary and second-round fund raisings. That does not strike me as a particularly large amount; particularly since there are currently more than 200 companies admitted to trading on the PLUS-quoted market with a combined market capitalisation of over 2 billion.

I do not know enough about the liquidity of Plus Markets. Having observed however the very low liquidity of the NZX SciTech Index in recent times, any new initiative that introduces NZX companies to more global capital must be welcomed.

Auto Trader Revs Up

News that ACP Media has announced the end of the weekly magazine Auto Trader is significant. It is also completely positive.

The success of internet trading sites, especially the Fairfax owned TradeMe site, will now see ACP Media concentrate on its autotrader.co.nz website, which was set up seven years ago.

One of the challenges facing newspaper and magazine publishers (and let's face it, I have blogged about this many times before) is adapting to a 'brick and click' environment. Trying to develop on online brand strategy is difficult if constrained by the need to preserve print circulation and advertising revenue. Few have succeeded.

So ACP Media's decision now allows them to focus exclusively on an online strategy. And in this space, the Auto Trader brand is a great place to start. If their proposed redevelopment plans for the website in the New Year go to plan, then there is no reason why autotrader.co.nz should not establish a preeminent position for itself in the online auto space in New Zealand.

I believe ACP Media management have made a tough, but the right call on this one.

Inspiring Innovation - October 8th

Up to NZ$50 million is available annually to NZ businesses undertaking R&D through the TechNZ investment programme.

In the Bay of Plenty, Innovation Waikato delivers the TechNZ programme, including Global Expert, on behalf of the Foundation for Research Science and Technology.

On 8th Octber, they are launching the Programme with a presentation at NZTE's Chapel Street offices from 5.30pm - 7.30pm. I have been asked to speak at the launch about the benefits to Pingar from past FRST funding, together with Mike Carson from Forest Genetics. Pingar believes R&D is at the forefront of our long term development and growth strategy. I will explain why.

Tickets (it is FREE!) are going fast. Contact Angela at NZTE to secure your place.

The Week That Was...

When I woke up this morning, the sun was shining, the sea was in and Spring was very much in the air. In the UK, things were also looking up. The FTSE had increased in value by 8% overnight and the end of the world was very definitely not nigh.

It has been tempting over the past few days to post a couple of observations on the chaos in the global financial markets, the impending credit crunch and the demise of some familiar Wall Street names. I have resisted. To be honest, it has not really had much direct effect on either Pingar or myself. I have been focused far more on any adverse or direct impact on the online advertising space.

The mortgage crisis in the States has already struck a blow to financial services ad budgets this year. According to Nielsen Online, online display ad expenditures by financial services advertisers dropped 27 percent in the first half of 2008, taking the entire online display ad market down 6 percent in the first half, year-over-year. The research firm reported yesterday financial services firms spent $1.1 billion online in the first 6 months of this year, down from $1.5 billion in the same period last year.

Online ad spending on the whole, fueled by paid search and increased interest in video advertising, is on the uptick, though. Nielsen estimates overall online ad revenues rose around 11 percent in the first half of '08.

"The trend to move money towards the Web will outpace the economic downturn," said JupiterResearch Senior Analyst Emily Riley. "So, all sectors will still be growth sectors in general."

There then. Phew. Life can continue as normal.

Expert Internet Users Prize It for Info

Pingar is all about delivering quality contextualised data in dynamic customised reports. So I was interested to read the following article, 'Expert Internet Users Prize It for Info', in eMarketer.

"As US Internet users aged 16 and older gain experience on the Web, the Internet becomes a more-important source of information, according to recently released data from the USC Annenberg Center for the Digital Future. In time, the Internet surpasses even personal sources of information, and all media except the Web stay at the same levels of importance or drop".

I totally agree. Pingar's strategy of removing the Web's clutter and noise to provide our users with quality information reflects this increasing use of the Web. Internet users want answers, not noise.

Thinking about it, that could make a pretty natty Pingar strap line. What do you think?

Local Engagement - Global Markets

NZTE has arranged a meeting in Te Puke this afternoon.

I have been to one of these before. They provide a great opportunity to catch up with other Bay of Plenty companies engaged in offshore sales and expansion. Given our own move into the UK market at this time, shared experiences like this are totally cool.

Tomorrow sees me in Auckland for another day of presentations. It is also giving me the chance to catch up with John Waugh, Head of UK T&I in New Zealand. As clients of the UK T&I Global Entrepreneur Program, I want to find out more about UK Government input into this program at this time.

Leveraging the support of Government agencies in our target offshore markets is a key part of Pingar's market entry plans. That is one lesson I intend to share with BOP partners in Te Puke this afternoon.

The other is to listen. For the past almost 5 years now, I have had a tendency of trying to apply UK solutions to NZ problems. Sometimes it has worked, but in truth the two trading environments are quite different. Running a business out of New Zealand has a quite different set of challenges from running one out of London. There are a number of great case studies of NZ businesses doing well globally whilst operating from the Bay. I hope to therefore learn, as well as listen, when I meet my peers later today.

Calling Beth

In the UK, there is an organisation in Cheltenham called GCHQ. It has something to do with MI5 and MI6.

In NZ, there is someone called Beth. I do not know if they are related.

This might not mean much to my two Tauranga regular blog readers, but I fear that I have been sussed. Outed. It does remind me a little of the day I was followed around Bucharest by a couple of Nico's friends almost 30 years ago.

It's definitely time to formally say that NZ politics is beyond me. I quit. Tomorrow, I will be back to a world I understand. Global business and the fantastic opportunity it offers NZ entrepreneurs.

Please read - (So long as your name is not Beth)

8th November 2008

I avoid blogging about politics. Period. I got it out of my system 30 years ago.

So one small lapse then. Today's announcement that New Zealand is going to the polls on 8th November is fairly underwhelming. Unless you live in Tauranga.

My good friend, Anne Pankhurst, is standing for the Labour Party. Simon Bridges, who I have met a couple of time now and looks like the smart bet for the Beehive, is standing for the National Party. And Winston Peters, the man that says 'No', is standing for NZ First, Foremost & Finally. It promises to be a good old electoral fight in the best Bob v Winston tradition. Sadly though, I can say no more.

Under the Electoral Finance Act 2007, any attempt to influence voters with a personal opinion is deemed illegal; at least without the prior written permission of the Electoral Commission. So my two local blog regulars will have to do without my take on public flogging, compulsory road testing for the over 80's and the forced removal of domestic cats from Bellevue. It might just be deemed that I am advocating reasonable positions which could swing marginal votes. That's not legal. And I want to avoid being sent to jail.

So that's it. 30 years after giving up active Tory politics n the UK, I end up in North Korea. Sorry....North Island. Democracy here is quite literally 'downunder'.

Export Boost

The decision by Allan Bollard and The Reserve Bank to drop the OCR base rate by 0.5% yesterday surprised economists and delighted exporters - allegedly.

From my own take, the decision was double-edged. With Pingar in offshore market expansion mode, our global NZ$ entry costs have just gone up. We will get fewer GBPs for our NZ$. The same is even more apparent when we look at the US entry point. The NZ$ has tanked against the US$ for several months now.

For established exporters, the benefits of the lower NZ dollar are clear. Not so, new exporters - at least short term. The key though is to think long term since this is where the long term revenues will come from. And I suspect that the NZ$ still has some way south to travel.

Short term pain, long term gain. A new reality in the business model.

Link to JML

One good link deserves another.

Many thanks to Julien at JML Communications for his incisive link to this blog. In the world of Communications & PR strategy in NZ, Julien and his team at JML are right up there.

I was first introduced to JML about 18 months ago. They understand start-ups and they understand this crazy space we occupy. Building a story is one thing: Understanding and believing in it is another. JML do all three.

I can't really say much more.

Except, 'Thanks guys'.

HBI Software - 7th Birthday

I have blogged about HBI Software many times before. I have talked about its great outsourcing tradition and its service to HB Internet, The WH Consultancy, Smart Analytics, Pingar and many other applications I have been associated with in the past.

Tomorrow, it celebrates its 7th birthday. September 10th 2001 saw HBI open its doors for business for the first time in Sunrise Chambers, 22 Ulsoor Road, Bangalore.

It is therefore appropriate that tomorrow, I will be in Auckland, discussing new outsourcing opportunities for the team there. In the UK, outsourcing is regarded as an every day part of today's business model. In NZ, there is still some way to go in this regard.

So to Rajesh, Aravind and the rest of the HBI Software team, I raise my glass.

Have a great 7th Birthday!

Innovation BOP

Whilst it's not exactly official, I think the phrase 'Innovation BOP' has a nice ring to it. It has all the potential to become a cool brand.

I thought about it during a meeting this morning at Priority One. I also thought about Generation Y. To me, the concept of 'Innovation BOP' just gelled.

I normally blog about 'Innovation' from an ICT perspective. But innovation is not the property of the nerd. Innovation is a mindset that can generate all types of creativity. Mapping innovation with lifestyle is not a bad place to start.

And in the Bay of Plenty (BOP), we have lashings of both. So the concept of building a brand associating Innovation with the Bay seemed cool. Think of our great cafes, our great beaches and our great lifestyle. Think also of the amazing people who innovate and then manage end user applications to make best use of this available and often, natural resource.

Innovation BOP? Remember, you heard it here first.

The Tipping Point

I am currently reading Malcolm Gladwell's business bestseller, 'The Tipping Point'. It talks about how little things can make a big difference.

In my current drive to build Pingar from Tauranga, I think we have reached a kind of tipping point here. No doubt that is in part down to the very positive response we have been experiencing from different agencies and individuals at both a local and a national level. Part is also undoubtedly down to the enthusiasm being demonstrated by the team of people being assembled to promote the vision. There is now recognition about what Pingar is and what our ambition stands for.

When asked to identify a single event that might have assisted reach this point, I struggle. It really is a combination of factors across both the development and the communication spectrum. The key though I guess really is the creation of this shared vision and the confidence it has generated.

You cannot 'buy' confidence. It has to be earned. Over the past few months, I have met some amazing people in the Bay. Pingar's position today is down to their promotion of this vision and their engagement and sharing it with others.

Setting up a start-up can be a lonely place to be. As of now, I know which side of the tipping point I prefer to be.

NZ Investor Focus

Following MORGO, the New Zealand media has carried several features on the state of the NZ Venture Capital and NZ Angel Investor sectors. The conclusions are interesting.

All the evidence is that the Angel Investor community is growing strongly. There are increasing numbers of high net worth individuals prepared to work in concert and consider start up and early stage business investments.

The VC sector is, by contrast, in 'dire straights'. At least that's the view of Jenny Morrell of No 8 Ventures, on of New Zealand's most active. According to Friday's New Zealand Herald, No 8 Ventures are looking to raise $NZ100 million, but that outcome is by no means certain.

A strong local capital market is essential if New Zealand companies are to grow on the global stage. As we approach the upcoming General Election, it will be interesting to see if any of the major parties identify this as a key economic objective. At the moment, that jury is out.

Tauranga Rocks

I seem to be in the middle of a 'Business Forum' frenzy. This is definitely not the Tauranga most people identify with.

When Jacqui and I first arrived in town almost 5 years ago, Tauranga was invariably described as either 'God's Waiting Room' or a 'Cemetery with Bus Stops'. No more. Tauranga's demographic profile shows that it is not only the fastest growing City in New Zealand, but the average age of residents is actually below the national average. This city rocks.

Last night, it was a BA5 with Tauranga Chamber of Commerce at the new Nautilus complex. Tonight, it is a WBOP ICT Cluster meeting at Mills Reef Winery. Next week, Priority One hosts its AGM and NZTE have organised an informal dinner.

I am posting this blog following some interesting discussions at MORGO last week. Jacqui and I were asked several times, 'Why Tauranga?' The questioners invariably came from Auckland, Wellington or Christchurch.

It's a strange call. Tauranga is home to the Port of Tauranga, TrustPower, ABN Amro Craigs, Zespri and other National HQs. Yet the old associations persist.

I have a new definition for Tauranga - 'New Zealand's Best Business Secret'.

60 Years Ago....

...the economy in the UK was in dire straights. That's at least the view of Alistair Darling, UK Chancellor of the Exchequer.

The Chancellor has insisted that it is his duty to be straight with the public, after telling a newspaper that the UK faces its worst economic crisis in 60 years. Alistair Darling told the Guardian the downturn would be more "profound and long-lasting" than most had feared.

Thanks Alistair!

So as Pingar steps up its sales and market entry strategy for the UK, Alistair speaks out. But all is not doom and gloom despite his best attempts to talk the economy down.

There remains a scale in the UK that is simply unimaginable in NZ. I have spent most of my working life in London and know what a downturn means. I also understand the opportunities they throw up.

Pingar's ability to improve productivity in the enterprise is well-timed. As is Pingar's ability to help content owners monetise their online real estate. And with the exponential shift of traditional advertising channels to the online space, our market entry could not actually be better timed.

But let's go back 60 years. By my own reckoning that takes us back to 1948 and the reconstruction years, post WW2. Sure, some rationing was still in place, but the National Health Service was being conceived and from the news clips I have seen, a sense of regeneration was everywhere.

Next month, I expect to spend time in London. It will be interesting to get a sense of the downturn now articulated by that man Alistair. I guess our own takes on that may not exactly match.

Research Focus

One of the greatest 'truisms' about software development, is that the research and development process never stops. The art is to make a call at each point of the cycle so that a milestone is acknowledged.

Think Version 1.0, Version 1.1, Version 1.2, etc, etc.

One of the challenges that Pingar has faced is that not only are we working to milestones: we are also spreading the R & D process between different geographically located teams. Time differences present a whole set of new challenges.

So as we close our current funding round, the focus is now firmly moving back to longer term research and development. It is a case of looking beyond the core platform and determining how that can be enhanced with the user in mind. There are no shortage of options.

In many of my previous posts, I have referred to the challenges New Zealand poses in terms of market size, access to markets, and so on. In the R&D space however, NZ competes with the best. Over the past couple of weeks, I have become aware of research in our space being undertaken in New Zealand which is genuinely ground-breaking. With the new focus in mind, I will be working with partners here to determine how Pingar might leverage some of the great IP that is being created.

Browser Wars - Let Battle Commence

The battle between Google and Microsoft to dominate the online space looks like it might just have taken a new twist.

Microsoft's newest browser is still only in beta, but it already has the advertising world in a tizzy. Its "InPrivate" set of features on Internet Explorer 8 out this week has publishers, marketers and industry advocates worried that it could block their ability to distribute, track and even monetize what the Interactive Advertising Bureau values as a $21.2 billion-plus internet-ad industry. Target = Google? Maybe....

At the same time, Google is launching an open source web browser to compete with Internet Explorer and Firefox.

The browser is designed to be lightweight and fast, and to cope with the next generation of web applications that rely on graphics and multimedia. Called Chrome, it will launch as a beta for Windows machines in 100 countries, with Mac and Linux versions to come. The new browser will help Google take advantage of developments it is pushing online in rich web applications that are challenging traditional desktop programs. Target = Microsoft Desktop? Maybe...

Interesting.

MORGO 2008 Review

One of the basic house rules at MORGO is 'what goes on tour, stays on tour'. So whilst no details about individual company presentations can be posted, I can give an overall impression of the event.

MORGO this year was held in the Bay of Islands. It meant that most delegates traveled some distance to get there and if the idea was to establish a 'retreat' mentality, then it probably worked. It provided, in the words of several delegates I spoke to, the one annual opportunity for leading tech company heads, VCs and others to get together and establish something of an agenda for the NZ ICT sector for the year ahead.

The theme this year was 'Partnership' and certainly the networking opportunities suggested that a lot of that was happening. For me, the event was both inspiring and fruitful. I managed to identify several individuals and the fact that they were all under the same roof helped.

As 'events' go, this was up there. I am not too sure of the venue for MORGO 2009, but on the strength of the contacts I made this year, I will be back.

Back to the Present

It’s almost time to leave for Auckland and then on to MORGO.

30 years on and time to be inspired once more…..

The Iron Lady v Fidel

Probably my final post on life almost 30 years ago.

By 1980, I had left active UK party politics, but was still involved in things European. I still had a year to run as Vice Chairman, European Democrat Students.

In June that year, the now relatively new PM, Margaret T hosted a meeting of the European Democrat Union in London. We met at the Grosvenor House Hotel on Park Lane and I remember giving a rather robust presentation which included the ‘F’ word several times. Mrs T was not amused. A Federalist she wasn’t.

In the evening, she hosted a formal dinner at No. 10. The food was not memorable, but the speeches were. This was a time when Cuba was actively involved in the Angolan conflict so The Iron Lady let rip. As she spoke, a couple of waiters worked the tables offering guests a selection of excellent Havana cigars to go with their coffee. Most accepted.

The irony of the moment was not lost.

Mrs T & the P45

Further reflections overnight on Carol Thatcher’s revelations published on Sunday.

Back in May 1979, Margaret Thatcher became the first woman British Prime Minister. At the time, I was heavily involved in politics and on the night of the election was holed up in the Tory Party HQ in Smith Square.

I spent the evening with Andrew Rowe and Chris Gent. Andrew was to become a successful MP. Chris was to become the fantastically successful CEO of Vodafone, building it up from being a UK to a global Telco giant. I somehow ended up here.

We had a small TV in our office. On the BBC, David Dimbleby was commentating at about 2.30am. He was talking about Mrs T’s recent arrival at Smith Square and how she was thanking party workers. At that moment, the office door swung open and Mrs T entered. We had been celebrating victory for some time, so after some Moet I had decided that sitting on the floor was better, and probably safer, than standing. Andrew & Chris stood up. I couldn’t.

For a moment, our eyes met and locked. I got the ‘look’. At that moment, I knew post-election, it was time to start looking for a ‘real’ job.

NZ Online Ad Spend Increasing

The Interactive Advertising Bureau of New Zealand (IABNZ) has released the IAB/PwC Online Advertising Expenditure report for Q2, 2008.

For a second consecutive quarter, online advertising hit record levels in Q2, 2008, reaching $49.24 million - up over 8% on the previous quarter's total of $45.86 million.

The increase in Display advertising was driven by increases in industries that have traditionally been strong interactive advertisers - Travel & Accommodation, Investment, Finance & Banking, Government Departments, Telecommunications and Computers all showed healthy increases.

Thanks to The Internet Bureau for this alert.

Thatcher Remembered

I was saddened to read about the apparent decline of former British Prime Minister, Margaret Thatcher.

Lady Thatcher, one of the most commanding figures of the 20th Century, struggles to finish sentences, does not know where she lives and even forgets that her husband Denis is dead. In a memoir to be published next month, Carol Thatcher paints a picture of "the new Lady T," a much-diminished figure created by the progressive effects of dementia and a series of minor strokes.

It is a long time ago, but thirty years ago, I was Vice Chairman of the European Democrat Students and International Secretary of the Federation of Conservative Students. Thatcher was a very different figure then.

I remember what I can only describe as a roasting in her private office in the House of Commons. I had led a delegation of EDS to Romania and had not been particularly complimentary about the ruling Ceausescu family. In those days, Nicolae Ceausescu, despite being a most despicable individual, was a thorn in the side of Moscow and in the Cold War mentality of the time, that made him a 'friend' of the West. Thatcher was at her best in that meeting. Any ambition I might have had for a political future was torched.

There was another side to Lady T. She would visit our family home when the Tories held their Annual Party Conference in Blackpool. She would spend time in the kitchen speaking to my late mum about a range of domestic issues. Despite her fearsome reputation for being a 24/7 politician, there was another side to her.

The news from the UK yesterday was sad.

Go the Bay!

The Bay of Plenty leads the country in the latest job figures.

Today's National Business Review reports that parts of the lower North Island managed a respectable showing in latest job creation statistics, but the figures still largely reinforce the economic dynamism of more northerly regions.

The most recent detailed job figures released today by Statistics New Zealand (SNZ) show that for the year to June 2007, the Bay of Plenty led the country in percentage rise of new jobs, with an increase of 3.4 percent to a total of 103,180.

Go the Bay! (and good luck against Northland tonight)

Going Global - The NZ Challenge

An excellent article on the NZ Herald website this morning. So much so that I am going to reproduce parts and then comment.

"It is widely agreed that New Zealand's future economic prosperity rests on our ability to carve out larger global markets for innovative and technology-driven products and services. How we achieve this goal has been the subject of numerous talk-fests and reports over the past few years.

Internet technology company Cisco is the latest organisation to organise a brainstorming session on the topic. In Auckland last week, Cisco mustered specialists with different perspectives on technology innovation for a roundtable discussion on the topic of "Inspiring New Zealanders to Innovate".

And now the interesting bit.......

New Zealand has historically had a problem when it comes to funding high-growth companies, says IT entrepreneur, angel investor, and former Intel New Zealand managing director Scott Gilmour.

"That will always be a reality. The size of our economy simply cannot sustain many high-growth companies," Gilmour told the forum.

"Also, high-growth companies need not only money, they need market access and market knowledge.

"So most of our companies should transplant to the West Coast [of the US] or Europe, or wherever the market is.

"That's not a problem. The problem comes when we don't retain any substantive ownership here," he says.

"You can't be a globally successful company based here, I don't think.

"So let them go, encourage them to go - just like our kids go on their OE - but try and retain more and more significant ownership stakes so that as they succeed and generate a capital return to shareholders, those returns are invested into further companies, so that cycle keeps repeating."

And now for the comment.

Scott has nailed Pingar's challenge and opportunity very neatly with these comments. They mirror pretty much exactly our approach to engaging with the global market.

By establishing a significant operational presence in the UK, we are moving closer to our chosen market. That is where the sales revenue is going to come from.

By working closely with Waikatolink in NZ, we can generate R & D and IP in New Zealand.

By working with local investors, we can keep equity ownership in NZ hands even though longer term, there will almost be some dilution through further offshore funding rounds.

As Scott said very bluntly, "You can't be a globally successful company based here, I don't think."

I have fought that notion, but the challenges I have faced over the past two years tend to support the basic theory. I understand the arguments around the SaaS model, but even that requires substantial sales and marketing spend offshore to build brand awareness and sales.

I expect a lot of discussion around this theme at Morgo next week. It really is one of the great challenges facing innovative businesses in NZ.

I remember well a discussion I had at the Pasadena Technology Centre in LA last year. The very concept of 'export' was something that tenants in the Centre did not comprehend. A small share of the LA County market was sufficient to generate significant revenues. Selling into the San Fransisco / Valley market was as close to export as they got.

So NZ business's have got to develop a whole different series of skills to expand. 'Going global' looks good on paper. Having the management skills on board to manage that process just one more challenge we face.