UK Banking Update

Same Day Clearance on the Horizon

Today's Online Times reports that UK bank customers will start to benefit from same-day phone and internet transactions from the end of next month.

Consumers currently have to wait three days for payments made online or over the phone to clear, but from May 27, the faster payments service will enable transactions to go through within hours.

One of life's great mysteries to me has been why Internet banking transactions involving 'cleared funds' in the UK have taken three days to 'clear'. So hats doffed to APACS, the UK Payments Association. The cost of the new service is estimated at several hundred million pounds. The investment is welcomed.

Post No. 400

When I started blogging just over a year ago, I thought it might be a passing phase. A bit like wearing flared jeans and cheesecloth in the 70's or listening to punk in the 80's.

12 months on, I am still blogging. According to Blogger, this is Post No.400. It has become part of the daily ritual. Three weetbix, shower and blog. In that order.

Will it last? In the late 1970's, I was first introduced to 'New Media'. Then it was commercial radio. Fads come and go and blogging is probably just more fad. I guess in 12 months time, we will know.

Preparing the DD Pack

Negotiating the Handshake

My 'first thing' Monday morning business advice of the week.

When blogging about Pingar in the past, I have posted before about the importance of 'Elevator Pitches' and 'Business Plans'. Another key element of any investor discussion is the existence of the 'Due Diligence' pack.

Every potential investor, evaluating a business proposal, is going to ask for a certain amount of supporting documentation. This is standard procedure. It is also a fact that much of the documentation requested will be pretty much consistent all round.

To speed up investor negotiations therefore, preparing a DD Pack in advance, will save time and provide the investor with an immediate response to their request. It enables the entrepreneur seeking the funds to focus on the business case. And the investor to tick the boxes in their evaluation sheets.

And now to that 'first thing' Monday cup of coffee.

ANZAC Day 2008

Gallipoli Remembered

Tomorrow is ANZAC Day. For those who read this blog who are not familiar with this Day of Remembrance, it is the day that Australia and New Zealand remember their war dead.

The Gallipoli Campaign was, and is, a very symbolic part of this Remembrance. Tomorrow, thousands of Australians and Kiwis will attend the dawn service in Gallipoli, Turkey. Thousands of others will join them at dawn services throughout New Zealand.

It is a public holiday in NZ. Despite time, the numbers attending the dawn services increases every year. For an ex-pat Pom, it continues to impress.

Bollard Says No

New Zealand's central bank Governor Allan Bollard has left the benchmark interest rate at a record-high 8.25%. It will not be coming down any time soon.

I comment on this because of my recent UK experience. There, as in the US, interest rates are on their way down. Economic growth has become as an important a battle for The Bank of England and The Federal Reserve as the battle against inflation. Not so here. Yet.

My own gut feeling is that the NZ economy will deteriorate faster than Bollard has budgeted for. It is a little like house prices. When they go up, the rise can become irrational. When the market turns, the same irrationality kicks in. They tend to drop more than economic reality would indicate.

Bollard is taking a gamble. New Zealander's will hope he has got it right.

More Clouds - Position Confirmed

I blogged recently about the need for Microsoft to reposition its traditional desktop applications so that they are viewed by users as being integrated in 'The Cloud'. You can view the original posting here.

Today, an official release backs up the view.

"Microsoft has lifted the lid on a new web service called Live Mesh, designed to connect a multiplicity of devices and applications online. The service is seen by many as a key plank in the company's vision for the future of the web.

Live Mesh is designed to blur the lines between running software and storing data on a desktop and "in the cloud".

Microsoft's Amit Mital said Live Mesh would "connect and bring devices together... to work in concert". Live Mesh pits Microsoft against companies like Amazon, Google and Salesforce.com which are already offering different varieties of so-called software-as-a-service systems.

The end game is clear. Let battle commence.

Hitting the Road

Hitting the road....hard

It is good to be back in New Zealand and it is great to have blogged about Pingar, the UK adventures and the global aspirations.

Next week however, things step up a significant gear. I hit the road and start demonstrating the product. DRUPA is still weeks away, the buzz only days away. The time has come.

MediaPeople in Tauranga

I met up with David Reade of Media People at a lunchtime presentation in Tauranga today. I have used their MediaNZonline product before. So does our PR & Communications agency, JML Communications.

David demonstrated the new version today. It has extra functionality, but the nice thing was the new interface. Very intuitive, very easy to use.

The best user interfaces have the same thing in common. KISS. Keep it simple, stupid. The latest version of MediaNZOnline does just that.

Broadband Xtra

Hear ye...hear ye..

John Key has announced that National would invest up to $1.5 billion as part of a "fibre to the homes" fast broadband network. The news is welcome. Apparently, the investment would be made alongside additional private sector investments, according to this announcement placed on YouTube today.

The devil though is in the detail. Over the coming weeks, a little more of that would be helpful.

Software and the Cloud

Microsoft Office 2007 in 'The Cloud'

Microsoft has announced a limited project codenamed 'Albany'.

The company has started testing a new way of selling its Office software suite on a subscription basis, packaging it with security software and free online services. It will allow consumers to download and install Office 2007 and then receive updates for a subscription instead of a more traditional one-time license fee.

Consumers will also receive Windows Live OneCare, a Web-based security software, and online applications including Windows Live Mail and Office Live Workspace.

One problem at the moment is that Microsoft has not disclosed how it plans to set the pricing for "Albany" or when it will be widely available. It does though potentially herald a new way way of 'selling' its core desktop applications.

Steve Ballmer, Microsoft's CEO, has been talking a lot in recent months about Microsoft's mission to offer 'Software & a Service'. I have thought for some time that this might be a prelude to moving to an online subscription model. It makes sense. And Microsoft Office 2007 is the perfect candidate.

Microsoft needs to re-position its core applications to be web-based, yet sitting on the desktop. This is of course, the current 'actuelle'. Research services within Office 2007 today involve interaction with remote data servers. It's just that users are not in the main aware of this or other web service functionality contained in these apps. Most users still regard Microsoft Office 2007 as simply being a desktop app.

If Microsoft is to get this re-positioning right, 'Albany' is a step in the right direction.

UK - 'Closed for Business'

24/7 is still some way off

Doing business in the UK from New Zealand can be a challenge. Some UK enterprises do not make it easy.

The online Government-funded Companies House portal is only open from 7.00 - 24.00 GMT.

Try and access your online company bank account and request customer support at 3.00am in the UK. 'Sorry, the lines open at 8.00am'.

And even the BBC, one of the world's most watched web portals, only allows users to contribute to its 606 service during 'Opening Hours'. That's 9.00 - 23.00 GMT.

In a world where global engagement is 24/7 and online comms are the norm, it is frustrating that some major UK enterprises cannot think outside the box. Servers require only so much maintenance. There is no excuse.

The Pledge Tastes Better

Fresh snapper, fresh hope....

Yesterday, Jacqui and I were invited to join friends on their launch in Tauranga harbour.

The fishing was superb: Snapper, trevally, kawhai. You name it, we caught it.

This morning, the smoker has been working flat out. That salad will taste better tonight.

The Pledge....(Updated)

Turning a new (salad) leaf............

I blogged on Monday about my early morning confrontation with The Mirror. I then made a pledge.

Yesterday, I fulfilled it. I joined the Bay of Polytechnic Aquatic Centre & Gym.

I was introduced to a series of contraptions clearly designed by sadists. I then had to try them: '15 minutes only' Peter, 'level 9', 'moderate gradient' etc. etc. And then this one...and then that one.

After 60 minutes, I needed a beer. But apparently I have to cut down on that and eat green salad rather than chips. And pretend to enjoy it.

Remember me then as I am. In 6 months time, a lot of me will have gone.

Fisher & Paykel Appliances

Fisher & Paykel Appliances announced yesterday that it was shifting its Mosgiel production line offshore so it can take advantage of low-cost labour and other benefits overseas. The move will mean the loss of 430 jobs to Mexico, Thailand and Italy.

The political reaction has been swift. Yet Fisher & Paykel's decision in my view reflects the reality of the global market in which we now live. Pingar recognises that reality. The focus of our sales and marketing activity is London, not Auckland. That makes sense. As more NZ businesses go global, more economic activity will relocate offshore.

This is not the sign of a weak economic trend. It is a sign of strength as NZ businesses move onto the world stage to compete with the best. More companies will follow Fisher & Paykel Appliances example in the future. Long-term, New Zealand will benefit.

R & D v ROI

As per previous postings, Pingar is instinctively committed to Research & Development. It is a key aspect of our long-term Business Plan.

As well as deploying our own internal resource, we work closely with 'best-of-breed' technology and business partners. These include Microsoft, FAST Search, Global Graphics and HBI Software.

Closer to home, and hot on the heels of yesterday's blog, Pingar is also actively engaged with Waikatolink; (University of Waikato). Over the next few weeks, I want to talk more about the importance of private sector / tertiary education engagement. It seems to me that there is real failure of the private sector in NZ to understand the benefits that such engagement can bring.

Let me spell out my position on this.

The Pingar / University of Waikato relationship is not academic. It is commercial with a capital C. I do not regard Research as not a cost. I regard it firmly as an investment. To understand this, I will introduce you to my 'x5 valuation' theory. It is not scientific, but is based rather on offshore experience of this space. It is my take on the Return of Investment (ROI), Pingar and its shareholders can expect from hard-core Research.

In simple dollar terms, every dollar spent on Research, increases the value of IP within the company by a factor of 5. So you spend NZ$200,000 on a specific Research project and the impact of its successful development and deployment increases its value to NZ$1 million at the point of commercialisation.

This increase of valuation of course appears on the Balance Sheet, not the P&L. So cash flow does dictate the level of investment that can be committed to Research at any one time. This is particularly important for SME's where cash flow is critical. The important lesson for business however is that Research should become a core value within the Business Plan model. It will create the innovation necessary to both build value and ignite competitive edge.

Because of their skill-sets and researcher resource, Universities and others engaged in tertiary education make the perfect partners for the private sector. It is unlikely that most SMEs will have the internal resource necessary to manage the whole Research process.

In March 2003, I gave evidence to the House of Lords Select Committee on Science & Technology on the subject of 'Science in the Regions'. A key aspect of the Committee's study was to identify routes by which SMEs could engage with University and Polytechnic research functions. It was clear during that study that both real and imaginary obstacles and perceptions existed and neither the private sector nor the tertiary education sector were engaging effectively.

I guess those same forces exist here today. The private sector in NZ does not understand the value that tertiary education and Research can bring through joint engagement. And Universities and tertiary research providers have collectively failed to convey the value such engagement can bring to the private sector.

The impact in New Zealand is clear. Spend on R&D by the private sector falls well below the OECD average. So does productivity. So does pay. This issue has to be addressed.

Introducing Waikatolink

I spent yesterday in Hamilton with the team at Waikatolink. They are based in the Waikato Innovation Park.

I have blogged before about Pingar's relationship with the team at Waikatolink. So yesterday, Tania, Carl, Nick, Paul and others were at the meetings to discuss both the current stuff and the long-term stuff. The long-term discussion threw up some interesting opportunities.

When you engage the commercial arm of a University to work on a research & development project, it is easy to focus on the technical skills that are on offer. Yesterday's meeting however introduced a new 'play' into these discussions. This focused on the potential longer term involvement of the Waikato Management School.

Early days yet, but the Management School clearly has a totally different, yet complimentary set of skills. These relate of course to issues such as business analysis, business process. These ARE relevant to the Pingar experience. It's a slightly different tack, but one I think we might just follow.

On May 21st, the WBOP ICT Cluster is organising a Technology for Smarter Business Expo in Tauranga. I raised the opportunity of attending the Expo with the team in Hamilton yesterday. I understand the benefit, direct engagement with the University could offer other Western Bay businesses. I think they were keen. I hope they are there.

NZTE Funding

I doff my hat once more to NZTE.

A contract arrived in Tauranga whilst I was in the UK confirming that Pingar had been awarded an Enterprise Development Grant: The Market Development component (EDG-MD) to be specific.

Enterprise Development Grants for Market Development co-funding can be used to help NZ businesses enter a new export market or undertake new activity in an existing export market. Given my blogs over the past few weeks, I guess our target market is obvious. Up to $500,000 ($100,000 per annum) is available, with NZTE contributing up to half the costs of the project while the business contribute the rest.

Given NZ's distance from the global market, this is a great incentive. Global engagement does not come cheap.

Enterprise Development Grants however are only one of a number of services that NZTE provides NZ businesses wishing to expand offshore. Pingar acknowledges that without this support, the accelerated market entry we have enjoyed in the UK market would have slowed down. For a technology company such as Pingar that could have been fatal.

As Pingar grows its UK presence, we will continue to work with NZTE to develop that market. And we can discuss that further Lionel, when we meet tomorrow!

Six Million Thoughts

It is now several months since the effective conclusion of the NZ$6 Million Investment Challenge, organised jointly by UK Trade & Invest and Unlimited Magazine.

I do not know the outcome for some of the other companies that took part and believe lessons can be learnt from this first format.

For Pingar however, the Challenge achieved its objective. It has certainly made the company more 'investment-ready' and this is paying off. Not perhaps though as the organisers intended.

A number of NZ-based angel and VC investors were lined up to assess the finalists' business plans. It would be unfair to identify them in this blog. Harsh call perhaps, but I wonder just how 'investment ready' some of these funds are, or were? Given my experience of similar UK players, there appeared to be a much more 'domestic' approach to 'global' thinking. It was almost as though global aspirations were outside the scope of the funding available.

I guess this view has been reinforced by my recent visits to the UK. The UK Technology, Innovation & Growth Forum in March supported the theory. Investor engagement was much more familiar to me and the outcomes more positive. More about that later. Those lips remain zipped!

What also struck me, particularly on this last visit, was the presence of other NZ ICT businesses in London seeking to raise finance. Their take on the current NZ investment environment mapped mine. I met them through different channels.

NZ innovation compares with the best in the world. Unless more significant opportunities to raise capital locally are put in place however, the exodus of companies seeking offshore investment can only increase. Time I think for the other side of the NZ$6 million Investment Challenge coin to look at their own 'investment readiness'. The expected 2008 version of the Challenge can only benefit.

Draft Digital Strategy 2.0

Beware too many stakeholders.....

According to a briefing note from The Independent Financial Review today, Communications Minister David Cunliffe is calling for New Zealanders to comment on the Draft Digital Strategy 2.0. The draft strategy is a 'work in progress' that provides a platform for getting feedback on the path to the country's shared digital future from business, Maori, the community and voluntary sector, and the research and local government sectors.

OK. I have been away for a month and this is the first I have heard of this. A quick check though on the Beehive,govt.nz, and 'here it is'. Public consultation is good. And so is action.

I know David which of the two I would prefer in this case. And that's my comment.

I Pledge........

It's time to act

I stood in front of the mirror this morning. It was not a pleasant sight. The words 'overweight' and 'unfit' spring to mind. The continuing headache, sore throat and cough cannot have helped.

I have spent the last three years totally focused on work. Long days, because of the offshore engagement, have been absolutely the norm. I have not been looking after myself.

So this morning, I made a pledge. I plan to join the gym this week. And begin to watch the diet. Drastic times, drastic action. The mirror does not lie.

Tauranga Calling

It really is good to be back....

Over the next few days, I will gather my reflections on the past month. With the mode still being 'stealth', I will only be able to share some general observations on Pingar developments 'per say'. My comments then will focus very much on the challenges any NZ ICT business face when entering and then engaging in the UK market: I guess it will be a case of lessons shared.

When I posted my last blog in London, I talked about my dislike of flying. 25 hours direct with a short 2 hour stopover in Hong Kong is not good. Today, I am suffering the consequences. I have a headache, sore throat and am coughing. This is not the first time.

Much of the focus on sickness and air travel is based on Deep Vein Thrombosis. Whilst this might be a more extreme example of in-flight illnesses, the regular occurrence of repetitive 'symptoms' for me suggests a more general problem. I accept part of the problem is probably dehydration. It is difficult to drink water when you are asleep. My own guess is the problems are far more extensive than either the airline industry or insurance companies are prepared to accept.

For me, flying remains my least preferred mode of transport.

The Longest Day

I got up at 5.30am this morning (Thursday). Tonight, I leave Heathrow at 9.00pm arriving in Auckland at 8.45am on Saturday. That is one long 'day'.

I cannot pretend to enjoy flying. It is the grim bit of 'global engagement'. The homeward bound leg to Tauranga has benefits however. I have been away from home and Jacqui for a month now.

It will be good to get back.

The Jolly Fenman

Home for the past four nights...

When you think of London, you think of The Ivy, The Ritz Hotel and The Priory. (In that order).

Not so on Black Fen Road, Bexley. Here it is 3 for 1 and has been since Sunday.

My wonderful hosts, Roy and Beeeeeeee, have been restoring their kitchen. No cooker, no food. And so to The Jolly Freeman. This is British with a capital P. It's Patriotic guv. No dodgy geezers here, if you know what I mean.

It's steak & chips, chicken & chips, fish & chips. Potatoes around here stand no chance. And it's 2 main courses for a tenner. So Beeeeeeeeeee and me have survived the no cooker scenario.

This is my last night in England. I am in the pub. It's a pint of Spitfire Ale and ManU are on the telly.

This ain't British. This is heaven.

Closing That Deal

My time in the UK is coming to an end. Time to relax then and kick back? Er....no.

The next 48 hours are a frantic round of activity. Part of this is down to my imminent departure, part to timing and part to Tim's arrival in London tonight.

Given that the lips are still tightly zipped, I can't say too much about either the content or the scope. The agendas though have been established over the past three weeks, so the milestones are clear. What happens between now and Thursday sets the tone for the weeks ahead.

Once I get back to Tauranga, I will have an opportunity to put this last month into some form of context. Certainly much of the commercial impetus behind Pingar is now to be found in the UK, rather than NZ. That's the nature of going global and establishing a significant global presence in a much bigger market. There is scale available in the UK that does not exist in NZ.

There is also a change in role. Employing Tim as Chief Executive Officer means that the focus of my own contribution will change. Quite how much, the combined management team will discuss in the next two days and beyond. For the past 15 years, I have always been in some ways 'the boss'. From an operational perspective, Tim now assumes that rule. That is only right.

The next two days then will see the management team setting and agreeing to a new dynamic direction. Once back in NZ, I will be able to sit back a little for the first time and observe from a distance. It's been a long time coming. And I guess might feel a little odd.

Steve v Jerry

The Best Show in Town

I just don't know how this one will end up. I guess though that Bill just might.

Over US$31 per share? My take is 'too much'. Bet Chris though may just prove me wrong.

I think I will just stick with Pingar.

WBOP-ICT Live

The Western Bay of Plenty ICT Cluster website has just gone 'live'.

As I prepare to pack my bags in London, my thoughts are beginning to focus on 'things' back home. The upcoming '“Technology for Smarter Business” Tradeshow' in Tauranga is one such 'thing'.

Scheduled for Wednesday 21st May at Baycourt, the purpose of the expo is to provide an opportunity for local ICT companies to showcase their products and services to businesses in Tauranga and the Western Bay of Plenty. In particular, it is to encourage large companies that currently access ICT goods and services from outside the region to give local suppliers a chance to provide the same. The support of the region’s larger businesses will increase the opportunities for local ICT businesses to grow.

It is a cool concept and I will be there. The Stay in the Bay portal was developed two years ago by The WH Consultancy, in association with Priority One. It provides an e-marketplace for local Bay companies to trade together. It was launched at Baycourt. It will be demonstrated again at Baycourt on the 21st.

China Girl

That's an FTA with rice, please......

So New Zealand has become the first developed nation to sign a Free-Trade Agreement with China. Analysts say the agreement will give New Zealand improved access to one of the world's fastest-growing economies.

I have blogged about this particular FTA before. In principle, I am totally in support. It is the details that I do not have at present. An email received this morning from NZTE might just help.

According to the email: 'The Ministry of Foreign Affairs and Trade (MFAT) and New Zealand Trade and Enterprise (NZTE), in association with other government agencies involved with negotiating the FTA, are holding a series of two day presentations throughout the country to help answer businesses questions. These informative and interactive workshops will provide in-depth insight into the FTA and practical advice for business people considering entering the Chinese market'.

The Chinese language market is definitely on the Pingar agenda. I have already visited Hong Kong and engaged with the NZTE team based there. The two-day presentations outlined above should fill in the spaces and explain just how this freshly signed FTA might help Pingar's own expansion into this massive market. Sign me up. And a side of prawn crackers too, please.

Angels + VC Stats

Some interesting stats from Don Dodge, of the Microsoft Information Worker team.

The Center for Venture Research at UNH have just released their annual Angel Capital report for 2007. Angels invested $26 Billion in 57,120 companies, up slightly from last year. The report says there are 258,200 active angel investors in the USA. By comparison, Venture Capitalists invested to $29.4B in 3,813 companies in 2007.

Software accounted for the largest share of Angel investments, with 27%, followed by Healthcare Services/Medical Devices and Equipment (19%) and Biotech (12%).

Angel Investors continue to be the largest source of seed stage and early stage start-up capital, with 39% of 2007 angel investments going there.

Angels tend to invest just like VCs except they do smaller investments $200K to $2M and they do about 15 times as many deals. However, Angels have the same investment criteria and expectations of significant returns. The "average" angel group makes 8 investments per year for a total of about $2M. The average deal size (seed stage) is about $250K.

In New Zealand, the word on the street is that the number of Angel and VC deals closed in 2007 was small. Given New Zealand's innovative culture and its potential global impact, it makes you think. NZ business needs the investment. Angels fly. It would be good if perhaps some could wing their way over the Pacific and make a home in Aotearoa. They would be very welcome.

Shhhhhhhhhhhhhhhh

My lips are sealed......

It goes against my every natural instinct, but basically I am so NDA'd at present, not even my closest mates know exactly what Pingar is up to. This ain't stealth; this is torture!

Over the past two days, Terminal 5 has only been part of the story. Cancelled trains and 'alternative bus routes' have meant delayed meetings and sweaty palms in London. It isn't the best way to work. The outcomes of these engagements however have perhaps exceeded expectations and it is how we now seize the opportunities that will unseal these lips. The UK agenda is full.

A huge move forward was Tim's final confirmation on Friday that he and his family can finally pick up their UK visas in Germany on Monday. As the recently appointed Chief Executive Officer of Pingar, Tim's contribution to executing these opportunities is crucial. The next few weeks will seal that.

For me, I am leaving the UK for New Zealand on Thursday. It will be good to get back to Tauranga. There is much to do and it will be great to be working with those close to me back home to help achieve that.

NZTE + UKTI = Success

Reflecting Historic Ties

Once upon a time and not that long ago, the challenges facing Kiwi businesses looking to expand into the UK were enormous. In June 2004, a historic event changed all that. A Memorandum of Understanding was drawn up between UK Trade & Invest and New Zealand Trade & Enterprise to help New Zealand technology companies set up in the United Kingdom and to support NZTE’s UK Beachhead program.

In March 2006, the Agreement was amended to enable both agencies to widen the scope of the original MoU to include companies in the biotechnology, creative industries and specialised manufacturing sectors.

Over the past three weeks, I have seen this Agreement in action. Pingar has benefited from the active support of both agencies and this has been absolutely key to our current UK market entry strategy. In blunt terms, we could not have remotely achieved what we have done in such a relatively short time without this support.

I leave for NZ one week today. Yet the work of this Agreement goes on. In Tauranga, I will be meeting up with NZTE on the ground...Hi Lionel...and in Auckland with UK T&I. This is one inter-Government, inter-Agency Agreement that has achieved for us what it set out to do. More NZ companies should engage.

Parliament Revisited

Big Ben at Night

Thirty years ago, I was a Parliamentary researcher. I had access to the House of Commons and worked with Members of Parliament in Norman Shaw North. Yesterday morning, I took time out from my 'day job' and retraced some of those steps.

Pingar's UK T&I Global Entrepreneur Program Dealmaker is Sheetal Mehta. Away from her 'day job', Sheetal is passionate about providing micro finance to the very poor, particularly in India and Nepal. The business is called Shivia and you can find out more about its work here. Yesterday's visit to Parliament was all about raising profiles.

One of the amazing thing about many entrepreneurs is not what they earn, but what they give back. It is probably an untold story. Shivia is a great example of what business and entrepreneurs can do to actively assist alleviate poverty at a grass routes level. It was an inspiring meeting. It is an inspiring story. Definitely one to check out.

Stealth Mode

I am in 'Stealth Mode'

Usually, I am very transparent about Pingar activity. Check my previous 340 posts. We have reached a stage though where my wings have been clipped. I am told we are in 'stealth mode'.

I think I know what this means.

In the next few days, I think you might too.