Archive for the ‘Management’ Category

Kiwi iWantMyName Continues Product Evolution

Monday, February 1st, 2010

ideegeo’s successful launch of iWantMyName as a global domain registrar site and the opening of sites for Germany and the Netherlands last year were exciting milestones in the evolution of iWantMyName into a highly scalable industry-wide platform solution and in the development of our company.

Although our focus was global from day one, we felt it was now time to turn our attention to home. We had many requests from our friends to establish in the New Zealand market, because of our unique service offering, friendly user interface and great customer support. Finally we just had to say yes and so we now have a dedicated Kiwi site offering fixed prices in New Zealand dollars.

The Kiwi iWantMyName has by far New Zealand’s widest range of domain extensions, many of which are unavailable from other local domain registrars. Examples of exclusive domains include the recently launched .TEL and .ME suffixes plus interesting country code top-level domains from all over the world such as .LI (Liechtenstein), .IO (British Indian Ocean Territory) and .FM (Federal States of Micronesia).

Customers from the existing site can use the same login details to access their accounts across the iWantMyName platform suite. We also offer the same free services on our Kiwi version so that you can hook up your own domain to customise a wide range of great web applications such as GMail, Blogger and Zoho. In the very near future we also plan to add some cool new Kiwi-made services that we really want to support.

We think it is appropriate that the launch of a new product should be celebrated with some special offers. So until the end of February we are offering new .COM, .NET, .ORG and .NAME domains for only $19.90 NZD plus .INFO for $9.90 NZD. We are also able to offer a FREE one year extension if you transfer your existing domains across to iWantMyName NZ. Transfers can be handled from your personal dashboard once you join up. Please note that all domain prices quoted on the Kiwi site are GST exclusive and that we provide full GST invoicing to all our valued customers.

Can Private Equity Rebalance?

Monday, June 15th, 2009

Private equity firms in the U.S. alone are reportedly sitting on over $US 1 trillion in funds whilst at the same time economies are being hollowed out as cash strapped businesses go to the wall. But a surge in buyouts in the first quarter of 2009 suggests that equity investors are emerging to pick over the fallen carcasses of once great firms. In Asia, private equity firms successfully raised over $US 50 billion in 2008. Now with the faltering of several leading equity firms in Australia, there has been a resurgence of interest by Asian firms in that market especially.

It remains to be seen how the rebalance of power across Asia-Pacific will impact on New Zealand. But one thing remains certain, private equity deal-making is alive and well across the region and New Zealand will not go untouched. One example of this is the sale of accounting software provider MYOB. Although critics claimed at the time the price was too low, there was an ironic twist when founder Craig Winkler reinvested some of his winnings in a direct competitor. Small shareholders in such target firms would be well advised to remain alert to any further machinations that may impact on the value of their holdings.

What is clear at present is that there is generally a dearth of quality assets on the market. Profitable medium sized firms are hard to come by, but this situation will change. In particular family owned firms that survive the recession may attract more attention as their baby boomer owners head into retirement and look to offload. At the other end of the scale relatively new companies, that have a unique value proposition, may begin to look more interesting. But current indications are that such businesses are few and far between and even some local venture capital firms are struggling to place cash.

So what does this mean for New Zealand technology companies? Asia-Pacific looks like becoming the “buyout destination of choice”, according to the Asia Venture Capital Journal. Deal flow was up in the first quarter of 2009 and (surprisingly) the more developed economies benefitted most, as opposed to the emerging economies of China and India. The implications of that fact are that eventually a bunch of cashed up former business owners from around the region, like Craig Winkler, are going to be looking for new projects.

The Apprentice

Monday, April 27th, 2009

Almost one year into my “apprenticeship” as a technology start-up CEO I found it was time to take stock of achievements, critically reassess my position and then plan for the next phase of growth. Balancing the capital requirements of the business has proven to be the biggest challenge.

I read somewhere recently a suggestion that there is “an inverse relationship between the amount of capital available and the level of creativity in a start-up.” To some extent this is true. With too much capital in the bank there is a lot less urgency to get your product built and consequently innovation happens at a much slower pace. But when a company needs to find the cash to pay for rent and employees each month, building a brand and growing revenue certainly come into much sharper focus.  However, bringing in an investor should not be a priority at an early stage because it may result in divesting too much control at a very low price. If possible, put your assumptions to the test first.

On the other hand, running a capital starved business is like flying an aircraft without enough fuel in the tanks. You won’t make it to your destination and you may well end up wrecked in some farmer’s turnip field. Hence, we train pilots to load sufficient fuel for the planned flight plus an additional fixed margin for safety. Most experienced pilots add a little extra on top of this, especially if the weather is inclement. When the economic climate is adverse, it is not the time to be short on financial fuel.

We’ve made huge progress since we launched iWantMyName last December and I’m very proud of what the guys have already achieved. The good news for ideegeo is that the site has growing revenues and is only the first of several spin-off projects as we build and test our internal capability. The bad news is that we have entered a mature market in a highly competitive industry with this first project. That means we have no choice but to offer the best user experience and market our product powerfully.

Something else I read recently. “Overnight success” can take years, especially in the technology sector. That is why I realised that it was time to sit down, readjust my self-imposed frame of reference and plan for more growth (and more hard work). If consumers see value in the product, cash will continue to flow into the business; if not then it will soon become an expensive hobby. The key will be to add smart services that differentiate iWantMyName from other offerings in the market.

Boardroom Boo-boos Beggar Belief

Sunday, January 11th, 2009

Questions being raised over the standards of corporate governance in Australia are a timely warning to boards and CEOs on this side of the Tasman.

The shock departure of ex-All Black and Kiwi Rhodes Scholar David Kirk from Fairfax demonstrated how far the rumblings of discontent in Australia about executive and boardroom performance have spread. With commodity prices on the wane and a global recession lapping at Australia’s shores, corporate decision-making has come under more intense scrutiny. Until now shareholders have enjoyed booming profits and were happy to go along with board decisions on strategy and governance. Only now are they being awakened from their stupor.

David Kirk may simply be a scapegoat for an industry struggling to come to terms with the proliferation of web based media services that have nibbled away at a previously dominant market position. But there are probably more fireworks to come. Outspoken Telstra CEO Sol Trujillo might have a blowtorch turned on him after his antics in Canberra estranged the new government and resulted in Telstra being excluded recently from bidding in Australia’s broadband network lolly scramble. Colourful Qantas board member and recently retired CEO Geoff Dixon might also be in the gun having presided over an alleged collusion scam with other airlines, the costs of which have yet to appear on the books.

Episodes like these raise serious questions about accountability and shoot dead the concept of sacred cows when it comes to board appointed management. In New Zealand we only need to look as far as our largest exporter. Fonterra chair Henry van der Heyden in a recent radio interview calmly discusses shareholder value offsets and the non-impact of San Lu on the company’s overall global strategy. No mention of the enormous human cost due to poor management practices inherent within China’s milk supply chain. For $4 million per annum in salary, you’d think their CEO would have taken a more active interest in how quality control and risk would be handled in their China venture.

Opening Fonterra’s share register to the public would be one step towards greater accountability and it would allow the wider public to participate directly in one of our few truly global entities. Fonterra’s farmer shareholders seem unlikely to sanction for change however, even though their conflict of interest as both suppliers and beneficiaries smells rather like a fresh cowpat. In that kind of perverse culture, it is unsurprising that the company has been all but silent on the fallout in China.

Prime Time for iPredict

Wednesday, November 5th, 2008

I was so pleased to see iPredict’s Matt Burgess fronting up on the TV3 Leaders Debate this week with a demo of a political market trend forecast using their software product. Getting their website address in front of a few hundred thousand eyeballs won’t have done them any harm at all.

I’m pleased for two reasons. Firstly, Matt is a good guy, with an intriguing product and is doing a great job as CEO of iPredict in getting the company market recognition through media, events and the web. Secondly, it validates our decision to select him as one of the presenters at the Unlimited Potential Wellington to the World event on Friday. iPredict fitted our definition perfectly in that they had a novel and scalable global opportunity but still with a relatively low profile. Moreover, iPredict is a great example of academic research that has crossed over into the mainstream business arena.

In fact the first half of our show on Friday is devoted to linking academia with entrepreneurs and investors downtown. It’s an area that we have traditionally struggled with in New Zealand. Academics normally deliver to other academics and are focussed on building a body of research during their careers. Commercialisation of research is generally a secondary consideration. That’s a shame, because more than ever we need to be moving away from selling milk fat and instead moving towards selling knowledge to pay our way in the world.

It’s a cultural issue. In southern California smart post-graduate technology students are queuing up to attend seminars on how to structure their start-up businesses and court investors. Sure, the days when even a half decent business plan would get some crazy 20 year old funding for his pet project are gone. But that’s a good thing. Money migrates to value in the end and that’s where New Zealand creativity has an advantage. But we first need to overcome the barrier of distance to major capital and consumer markets; which is why we’ve partnered with KEA to take the event global.

It’s perfect that iPredict is a successful Victoria University spinoff company. There are other interesting projects emerging from Vic that could go the same way if we can help attract entrepreneurs and capital in that direction. That is why we are taking some first steps with W2W to strengthen bridges between academia and business here in Wellington.

For an entertaining forecast of the election outcome from our friends at iPredict and a look at some other cool ICT projects around town, make your way to the Wellington to the World event from 3.45pm on Friday 7th November at the Town Hall in Wellington. Registration essential.

Almost Free Software – Have Your Cake and Eat It Too

Monday, July 28th, 2008

The debate over whether or not software should be made freely available has been around for a long time. Can we afford such idealism? Perhaps there is a middle ground.

There are two different threads when we talk about “free software”. The first involves releasing actual code for public use; the second discussion is about providing free access to an application but without giving away the code. The latter is obviously a lot more manageable these days because of the SaaS model. But why would you bother? If you have to pay for employees, premises and some hosting, you better make sure there is some revenue coming in.

On the other hand, the fact that I can even publish this article here today is a direct result of the “crowd sourcing” approach that has spilled over from the open source community into the development of social media. Also, I’m sure we can all think of plenty of businesses which gave away their software and then built a lucrative consulting revenue stream around it. So there are clearly some tangible benefits to encouraging the open source philosophical movement to flourish and grow.

There was a great discussion thread about the (non)monetisation of Web 2.0 over on Diversity recently. Giving your product away, before you can figure out how to make money out of it, is the quickest way to destroy value in any business argues Ben. I agree. Using venture capital to prop up an ultimately unsustainable business model with over-inflated valuations is an abomination only one step removed from pyramid selling. But, maybe it’s how you go about giving away your software that matters.

We have a couple of products in the pipeline at ideegeo but with two completely different marketing and monetisation strategies planned. The first is a mobile application targetted at a niche audience which we will sell for quite a low margin through an online store. I will be overjoyed if we break even on the time spent developing it. However, it will raise our profile and demonstrate capability. The second product will be given away completely for free through our own website. The hook is that we get paid a small amount every time someone actually uses it (which is often). The clients will happily pay because the application demonstrably drives more business their way. If the application needs improvement, we will also get very rapid feedback.

My point is that the Internet has completely revolutionalised both software development and marketing. If you develop “almost free” software and then make it available to a very large number of users at only a very modest cost, everybody wins.

Next month Unlimited Potential are proudly hosting Richard Stallman as special guest speaker in the lead up to the Geeks, Games and Gadgets ‘08 event.

Stallman founded the GNU Project an open source software development project that contributed substantively to the genesis of the Linux operating system. At times controversial, the title of “open source guru” seems quite aptly applied in the context of Stallman’s thought leadership. Social media and especially Wikipedia had not even been conceived of at the time of this 1996 interview, but it illustrates his visionary abilities.

Whatever your position on open source or the debate around competing public licensing systems, this seminar is likely to be a thought provoking one. Registration is highly recommended for what will no doubt be a popular session.

Can Business Get Its Head Around Social Media?

Sunday, July 20th, 2008

Developer meeting held in SmallworldsFrom virtual worlds to dating sites to online gaming, there’s no denying that people are spending more time than ever before engaged in digital social media of some form or other. It comes as no surprise then to learn that, in the first half of 2008 alone, venture capital firms invested US $345 million in virtual worlds or related enterprises. As more sophisticated business models emerge around virtual economies, it has become clear that there is now real money to be made online.

In a world where travel costs are spiralling ever upwards, more and more people are opting to stay at home for entertainment. Does it mean that shopping malls, movie theatres and public bars are sunset industries, to be replaced by bits and bytes residing on a remote server? Perhaps not just yet, but rarely a day goes by that we don’t hear about the launch of a new web community, social mash-up or cool online game of some sort. 

Unfortunately research suggests that about 75% of these communities will never even achieve 1000 users. We set up ION almost six years ago and only recently celebrated our millenial sign-up. In any event there must be a limit to the proliferation of online social networks because once users become uber connected there is far less incentive to keep signing up to new networks. As network density increases, the advantage gained by the user decreases.

So when even Bill Gates gives up on his Facebook account, it really makes you question how much value large corporates see in social networks and virtual worlds. Some people continue to question whether or not virtual spaces will ever become meaningful in an enterprise setting. Although businesses have been using applications such as Sharepoint and Lotus Notes as knowledge management tools for years, corporates are still struggling to make the quantum leap into virtual communities and interactive game type environments as forms of collaborative business tools.

On the other hand corporate dinosaurs are belatedly waking up to the power of social media as a marketing tool. This videocast from the Harvard Business School offers advice to large companies about managing the change processes around implementing social media strategies. Now – I’m pretty sure I don’t need to belong to a web community for kitty litter or some other weird or random social network. I would however join a business network or film club that had an online community component for example. Whatever spins your wheels, I suppose.

New Zealand has a couple of promising virtual world ventures of its own. Smallworlds launched recently with a high quality browser based world for young adults that leverages advances in Flash based functionality and graphics. Socialise was an early entrant with a dating and friendship focus. Socialise is a regional community that has secured advertising sponsorship as a revenue stream, whilst Smallworlds is pitched at a global audience and intends to establish a virtual economy within the site.

Smallworlds users create and populate their own individual home spaces, which raises the question of identity portability. If players participate in several communities, plus own a Facebook or MySpace page, how can they manage their global identity? For dedicated social networkers with multiple sites to share and manage, aggregating all those links at one web address would seem to make sense. That’s a problem that we hope to address in a creative way very soon at ideegeo.

Thank-You So Much for Waiting

Sunday, June 8th, 2008

Why does it take a major telecommunications provider eight days to rectify a simple fault on a phone line in New Zealand? No. it’s not a bad joke, it really happened to me last week.

A couple of weeks ago I noticed there was a lot of background noise on my phone line. About the same time, my home office ADSL broadband began to get mighty slow. Eventually I lost all access to the Internet, although my phone remained working, but with even more noise. So I set about eliminating all the possible causes of the fault including swapping the router/modem, replacing the cabling and testing wall socket filters. No joy, so now it’s time to call the helpdesk.

Now when you call the helpdesk you first have to navigate the voice activated interface which (if it works) places you in a queue to speak to a real person. That’s fine, they play some cool Kiwi music that I like whilst I wait (Liam Finn, Anika Moa etc). Any moment I will get to speak to a technician who can resolve my fault – wrong. After a few minutes a lovely Filipina lady called Maria answers and we go through all the standard questions like, “have you turned your modem on and off?” She’s very polite, so I play along. When this fails to solve the problem she decides to put me on hold in order to speak to her supervisor. More music. After ten minutes in the holding pattern I realise she has lost the call.

Second attempt to call helpdesk, virtual receptionist then more music. Then I get a charming fellow from Manila called Arvin. He’s a bit more technically savvy and we talk about testing and swapping filters on all the wall jacks (I bought new filters and a very long cable in anticipation of this conversation). Still no luck. But Arvin agrees there is a line issue and kindly books me a service call with “Advanced Broadband” the division who actually fix the phone lines back in New Zealand. Next day I wait at home for the scheduled call. Nobody calls.

Then I have some meetings and don’t get to follow up. I use CafeNet in the city to check my email and do a bit of business online. Couple of days later I try again. Another call patched through to Manila and the same music whilst I hold. Another lovely lady re-books my technician call, “thank-you so much for waiting”, she chimes. But the technician again fails to call the following evening. Why is this is taking so long? I head off to bed tired and annoyed. The next day, an early helpdesk call, more holding music and then a very sleepy sounding night shift worker in the Manila call centre. We both manage to remain polite. He books me another service call. This time the technician calls as per the agreed schedule. The technician agrees there is a line fault (told you so) and promises to contact me when he is at the local exchange. He makes good on his promise and cheerily calls back to report that a small wire-end was loose at the exchange. Back in business.

So I guess my first question is: why does it take eight days, five phone calls and two hours of my valuable time to resolve a simple fault? Now to be clear, I received very polite and helpful service at all times from the call centre workers and the technician. The problem is the system and how it is managed. Outsourcing call centre work is a great way to lower costs, especially so given that recruiting locally is also getting harder. But if the helpdesk staff do not have authority to make any decisions it reduces their role to that of triage and placating the customer. Furthermore, when they do take action, better make damn sure that request is followed up locally or risk alienating the customer.

I have long maintained that broadband speed is not the issue in New Zealand. I can run my consulting business from home on 500kbs or 100Mbs line speed or anything in between. There are other more pressing problems like international connectivity. And as long as we have a monopolistic situation we risk the continued imposition of high prices and poor service levels for broadband. Bring on the competition.

My second question then is this: if it takes eight days to reconnect a loose wire, how long do you reckon it will take to build and support a nationwide fibre network?

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Epilogue of Enragement

gunmen

I don’t normally speak out on such issues, but I am growing tired of political correctness and can hold my tongue no longer. A father of three young children has died as a result of another armed robbery by three bandits in South Auckland. [Subsequent to first posting this article, an 80 year old Asian woman has been beaten to death in the same area and another Asian businesswoman intentionally run over and killed in a carpark.]

I hope Tapu Misa, who attempted to rubbish a recent controversial research paper by Greg Clydesdale on Polynesian social , educational and economic underperformance, will visit the family of the shot man and apologise for the way both Maori and Polynesians continue to be overrepresented in the violent crime, child abuse statistics and in the prison population. I hope she will explain the reasons why the adoption (by some) of L.A. style gangster culture has led to an increase in drug taking, teen promiscuity and gun ownership. 

I hope she will also write another editorial detailing why some members of her community feel they are somehow exempt from aspiring to contribute economically apart from in the colourful street markets of Otara or mopping toilet floors at nearby Auckland airport.

Clydesdale’s research was not anti-migrant and neither is my argument. The victim in this attack was a migrant, a family man who came to New Zealand and was prepared to work hard for a better life. His attackers were young Polynesian or Maori males probably born and raised locally. The issue here is that we are growing a brown underclass and nobody seems to want to talk about it nor acknowledge the likely downstream consequences for our society. If embarrassed government agencies try to shut down this discussion, how can we possibly find a solution?

Forget broadband or taxation. This is the real election issue debate we should be having because it impacts on our collective economic futures and our prospects for ongoing social cohesion - irrespective of our skin colour.

Research Profile: Vietnam – A Nation on the Cusp

Monday, April 7th, 2008

After repelling foreigners and enduring wars for the last 150 years Vietnam is finally at peace and enjoying an economic renaissance that may well surpass that of its neighbour China. Therein lies some opportunities for New Zealand businesses.

When I visited Vietnam in 2005 it was obvious that the country of some 84 million inhabitants was on the cusp of something big. Rapidly industrialising and with a young and highly motivated population, the South-East Asian nation has recorded consecutive GDP growth rates of around 8% for many years since the economic reforms of the mid-1980s. An example of this growth was the recent announcement that Samsung will build a plant for manufacturing mobile handsets with an eventual capacity of up to 100 million units. But manufacturing is not the only economic growth driver.

The mighty Mekong river basin, which fans out from the south of the country, is also the food basket in a region renown for its delicious Eurasian fusion cuisine. With a huge output from intensely farmed field crops and fisheries that are managed under a centrally planned system, the Mekong directly supports about 18 million farmers and fisherman and their families and provides food for at least 60 million.

Vietnam continues to move towards full market economy status and has benefitted from substantial inflows of capital from neighbouring states and the U.S. since the lifting of trade sanctions by President Clinton. total foreign investment was around $US 20 billion in 2007. As well,  Vietnamese dispora who left as refugees are now returning newly educated and with new capital and fresh ideas. There are many challenges remaining however, particularly in the areas of environmental sustainability and infrastructure.

Work is about to commence on a $US 8 billion project to build a new airport for Ho Chi Minh City (Saigon) at Long Thanh for example. Although the existing airport was recently upgraded, it sits amidst the low-roofed shacks within the Ho Chi Minh city limits and is constrained from further growth. The new airport is expected to become a regional hub of some significance.

New Zealand exports to Vietnam grew by a whopping 62% last year. Dairy products and educational services are leading the charge; but there are a multitude of other opportunities for small businesses who can find smart ways to partner locally and secure access to the region.

Vietnam is a nation of huge contrasts. On the one hand a booming economy and beautiful scenery on the other tremendous environmental challenges and horrific human legacies from the war. But with a sound strategy and local partners there are rich pickings for those that can stay the course.

Contact GeniusNet for business research and connections into emerging global markets.

Not in the Spirit of Good Customer Service

Monday, February 4th, 2008

I have always been fascinated by things aeronautical and have had a long association with the local aviation industry as both a recreational and commercial pilot. I’m an unashamed plainspotter from way back and I follow developments in the global airline industry quite closely. So it was with some surprise that I read about an appalling incident in which the arrogant CEO of a U.S. airline sent a vitriolic personal email response to a customer that had complained.

I always thought that customers were stakeholders in any business, the oxygen supply that ultimately determines the difference between success or asphyxiation. Apparently not according to Ben Baldanza, CEO of Spirit Airlines in Florida. Spirit is a high growth low cost carrier that primarily serves a niche market between the U.S. and Carribean/Central America. Most of its customers are low to middle income holidaymakers and returning migrants.

Last year Baldanza was forwarded a complaint by a couple who missed a concert because their flight was delayed. The couple wanted a refund for both their flights and concert tickets. In any angry outburst Baldanza “inadvertedly” replied directly to the couple by email instead of forwarding his response to the customer service rep. He basically told them where they could shove their refund claim form. “We owe him nothing…let him tell the world how bad we are.”

That’s exactly what the complainants did, with just about every consumer advocacy and business blog in the U.S. picking up and running with the story. Bad news travels fast. I first read about this incident through an article in Air Transport World appropriately entitled “How Low Can You Go?”. Apparently Spirit Airlines prides itself on the fact that there is no receptionist to greet visitors arriving at their headquarters because this saves 2 cents per customer. It seems like the company has a lot to learn about relationship building and delivering on service.

I mention this episode because it underlines how the Web can be a twin edged sword. Sure it allows aggregation of content and customers and a hefty global reach. But it can also bite back hard when things go wrong. Corporations can no longer rely on anonymity in a connected marketplace. It doesn’t matter that James and Christine only paid 75 buckseach  for their air ticket – they are still valuable customers. Reputational capital is an important part of a company’s intangible asset base.

To be fair, the airline did offer to refund the price of the air tickets only. But why was the CEO even dealing with this complaint in the first place? Clearly not his area of expertise. If your business does not have a quality assurance programme and strategy for dealing with complaints it is fatally flawed. Oh – and by the way, Spirit Airlines made a loss of $US 49 million in 2007.