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.