Tuesday, 26 August 2008

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.

Monday, 25 August 2008

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.

Friday, 22 August 2008

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)

Thursday, 21 August 2008

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.

Wednesday, 20 August 2008

Facebook - Why?

I have just visited my Facebook homepage.

No big deal there then. Except it's my first visit for about two weeks. And looking at my 'friends', I am not alone. Activity over the past two weeks has been, well to be pretty blunt, pretty slack.

Is this a coincidence or is it a trend? This is not a debate for today. I will however monitor activity over the next few days. I keep reading about Facebook's 'repositioning'. I am in the game, but even I do not know what this actually means. Maybe its members don't either.

Have 'user privacy' concerns hit home? That's one, I guess, for the future debate. Let's monitor and try and work that one out.

IAB NZ Resources & Voice

A couple of days ago, I posted about Pingar's membership of the Interactive Advertising Bureau.

I have spent the past few minutes going through the IAB NZ Portal. Hat then doffed to the webmaster and the team.

The Research section has increased significantly since my last visit and now holds a number of up-to-date releases, stats and forecasts. There appears to be a clear drive to increase the content in the Education section - essential in a growing, but still quite immature market.

When IAB NZ was first formed a couple of years ago, it was down to a handful of enthusiastic volunteers. Today, the traction seems to be building so that the interactive advertising industry in New Zealand is now working with a more organised and collective voice. Their initial work is now paying dividends.

A job well done.

Morgo Countdown

It's only one week before my first Morgo.

It appears to be one of those 'must do' events. A little like Wimbledon or the FA Cup Final. The good news is that this year's event is to be held in Waitangi in the Bay of Islands.

I'm ashamed to say that this will be my first visit to the 'Treaty Grounds' since my arrival in NZ back in 2003. Every year on 6 February, New Zealand marks the signing of the Treaty of Waitangi in 1840. In that year, representatives of the British Crown and over 500 Maori chiefs signed what is New Zealand’s founding document.

That's the historical context. It will be good to finally get the opportunity to visit the Grounds where it all happened 168 years ago.

Monday, 18 August 2008

IAB NZ


Pingar is a member of the Interactive Advertising Bureau (New Zealand). IAB New Zealand is a not-for-profit organisation representing the interactive advertising and marketing industry. Its members represent media owners, advertisers, agencies and a wide-range of companies and organisations operating in the interactive advertising field.

Pingar is proud to be a member. And we can now use the logo above to celebrate the fact.

I will post again shortly on our IAB engagement to come.

Saturday, 16 August 2008

UK Online Ad Market Update

Whilst I remain zipped on Pingar, I continue to look at the online advertising marketplace. I found an interesting article on ClickZ this morning.

According to the article, online ad spend in the U.K. overtook advertising on mainstream commercial TV last year, according to Britain's Office of Communications. Paid search grabbed over half of online ad dollars spent in the U.K. in 2007.

The watchdog's Annual Communications Market report states that the U.K.'s online advertising market grew by 40 percent in 2007, and by 70 percent in each of the past five years, reaching a total of $5.2 billion (£2.8 billion) last year. Web ad spending represented 19 percent of total media revenues, according to the report from the U.K. government body which regulates the communications and media industries.

By contrast, TV ad spend remained unchanged at $6.5 billion (£3.5 billion), with mainstream commercial channels -- ITV1, Channel 4, S4C and Five, accounting for $4.5 billion (£2.4 billion) the report says.

Paid search accounted for the lion's share of online revenue, or nearly $3 billion (£1.6 billion) of the total $5.2 billion (£2.8 billion), with display and classified advertising making up the remainder.

According to Alex Marks, head of marketing for Microsoft Advertising U.K., the shift mirrors consumers' changing consumption habits. Consumers are becoming more easily distracted, and non-linear in the way they consume media. They are more difficult to entertain, have lower attention spans and practice ad avoidance techniques.

It's compelling stuff.

Friday, 15 August 2008

Across the Globe

Speaking to the UK is an every day function. Just occasionally though, it does not involve work.

And so to the family and one for the family album.

Great call last night with niece Kate to hear that she had just picked up 2 'A's and 1'B', so has met the entry requirements for Newcastle University. Well done Kate!

Gill, Alan, Emma and Mike are in France for their summer vacation, whilst Annie, Patrick and family are off to the New Forest having just returned from ten days in Italy. Kate and Tom leave for Tuscany on Saturday.

Here today, it is cold, wet and windy. The forecast for the weekend is more of the same. And then some more.

August is not quite how I fondly remember it.

Tauranga Focus

Unzipping a little, it is fair to say that most of my focus at present is close to home.

I have spent probably two years researching the opportunities that Pingar can gain from offshore engagement. Networking and market visits to the USA, the UAE, Europe, Singapore, Hong Kong and India are testament to that.

To create a NZ model within that global framework has been a challenge. Size and distance to market of course impact on that. Our economy is smaller than Sydney's and there are more VCs in a single block in Palo Alto than across the whole country. Focus then on the positive.

NZ is rich in entrepreneurship and the No. 8 Wire mentality remains strong. There are numerous examples of great innovation across different sectors and a relaxed business environment to work in. Mapping those strengths against global models is the challenge.

A couple of weeks ago, I posted a blog about the new Limited Partnership regime. It was only enacted in April 2008 and is designed to facilitate sustainable growth in New Zealand's venture capital and private equity industries. Pingar has decided to adopt the Limited Partnership structure. We want to remove as many barriers as possible to attract offshore investment into the company. This structural move will help. It is also not an unattractive model for local (NZ) investors.

I have also discovered in recent weeks that there is an amazing appetite amongst local investors for opportunities such as Pingar. And I have learnt something else. In discussions with different 'professional' angel groups, I have found a fairly structured approach to engagement. I have not experienced much in the way of a flexible or creative approach to matching investment with specific individual opportunities. It is a case of 1) these are our investment criteria and 2) these are our structures. Now go away and map your business plan to match these.

So I have adopted a DIY approach. Create an appropriate model and structure for Pingar, design a BP and FM to map that model based on the investor's best interests and then get 'buy in' for that. The approach seems to be working. And don't dumb down the FM so that it looks more 'realistic' for the NZ market. Pingar is a global business with at least 90% + of sales coming offshore. Say it as it is.

Time then to zip up again.

Tuesday, 12 August 2008

A Blog Break

Not for the first time, I have had few spare moments over the past few days to post any blogs. I expect to be able to explain why very soon.

I am, at what is commonly referred to as, the 'coalface'. It's an interesting place to be. Formally, I am 'zipped'. Informally, I am 'zipped'. It's all a bit of a blogging nightmare to be honest.

I expect the 'zip' to be over by the week's end. I can then talk again. And start setting out the agenda for next few weeks / months. There....I feel better already.

The agenda has actually been set. It is exciting, and in keeping with previous posts, it is largely global..

But for now, that's it. Time to zip up again. Until the next post. Blog then.

Wednesday, 6 August 2008

A FIRST from FRST

Nice to see that the Foundation for Research, Science & Technology has issued a press release entitled 'Free and Easy Internet Searching with Pingar'.

You can check it out here on the official FRST website.

On the question of development, HBI Software in Bangalore are looking for more .Net and web-based outsourcing opportunities from New Zealand. Since 2001, HBI have been responsible for developing a range of major applications for organisations as diverse as British Telecom (BT), the United Nations and Canon Europe.

And now the direct plug: Details of their development services can be found by either visiting the HBI Software website or by emailing me directly at peter@whc.co.nz.

I am here to help.

BA5 with Technology Centre

Tonight, it's 'back to basics'.

Tauranga Chamber of Commerce's monthly 'Business After 5' (BA5) is being hosted by The Technology Centre on 4th Avenue.

I rented my first office in Tauranga three years ago in the Technology Centre. Life then was a lot less complicated. We were designing and developing Smart Analytics and Stay in the Bay. The focus was on design, not at that point on commercialisation. How times change.

It will be good to support Werner, Steve and the great team that now work at the Centre tonight.

Tomorrow, it is a trip to Auckland and a call to Shane at the House of Travel to book a flight to the UK. That's 'back to normal'.

Tuesday, 5 August 2008

LLP - NZ Curious

I have talked about engaging professionals to advice on global structures. Welcome then to the recently established Limited Partnership (LLP).

According to the NZ Companies Office website, 'the Limited Partnerships Act 2008 came into force on 2 May 2008 enabling registration of Limited Partnerships and Overseas Limited Partnerships. A searchable register of Limited Partnerships and Overseas Limited Partnerships is also now available.

The primary objective of the introduction of the Limited Partnerships regime is to facilitate sustainable growth in New Zealand's venture capital and private equity industries'.

It's about time. (That's my observation, not the NZ Companies House one).

One of the consistent issues I have faced over the past few weeks is New Zealand's attraction, or otherwise, to offshore investors. It is a real question. It has been a serious problem. I believe it is one that the Limited Partnership structure seeks to address.

It is a structure that VC's and private equity in the US and UK / Europe understand. The NZ model appears (and I have only skimmed it in the past 48 hours) to be pretty consistent with international standards. It does what the legislators intended. It creates a level playing field for NZ business to attract international VC and private equity.

I guess this is going to be a focus position of mine in the near term which means you are going to read more about it from my perspective. Anything that assists NZ business in general is great. Anything that assists Pingar is 'actually marvelous'.

Monday, 4 August 2008

Managing NZ - UK Governance

I am spending more time than I like at the moment with lawyers and accountants. It is nothing personal of course, but an essential part of managing a business that spans the globe.

In the UK, Pingar engages Baker Tilly as its external accountants. In New Zealand, the Baker Tilly International affiliate is Staples Rodway. And so it is that at 3.00pm this afternoon, I will be at their offices talking bilateral accounting stuff.

The same is true on the legal scene. Ensuring compatibility across our legal structure in the UK & NZ is critically important. That's good news of course for the team at Lowndes Jordan who advise Pingar in New Zealand. Despite the fact that NZ and the UK share many similar legal models, there is sufficient difference to require a double dose of professional advice.

Working through these structural issues has to be completed at the outset. Understanding each national company set-up is one thing. Understanding the relationship between two legal, tax and accounting regimes is totally different. Governance then is the name of the game. More trips to those accountants and lawyers are planned.

Friday, 1 August 2008

Moving Content from Print to the Web


Interesting video from Yahoo.

More bad news for newspapers this week: The New York Times Co reported disappointing second-quarter earnings on Wednesday, sending the stock tumbling 82% to roughly half its price from a year ago. That's just the start:

- Overall newspaper circulation is down.
- Thousands of journalists have lost their jobs.
- Newspaper control of local online ads is down nearly 9% from 2006.

Is there a way for the industry to save itself? Only "by beginning an aggressive transition to the Web," says Dan Colarusso, managing editor of Portfolio.com and former city editor for The New York Post.

My own view is that it is all about content. Many newspapers are beginning the transition but in many cases, this move is too slow and too un-aggressive. The desire to preserve existing print revenues seems to be holding the complete transition back. Long term, that strategy will not work.