Last night was the latest Young Network of enTrepreneurs (YNOT) event, featuring Adrian Di Marco from Technology One (Tech1) which is a Brisbane based software firm. Tech1 is one of Australia’s largest software firms specialising in enterprise management software (you know, the type of software the big business use to manage all their departments, employees etc). They are listed on the Australian Stock Exchange.
I didn’t know what Tech1 specialised in, I just assumed they were another software firm that, well, built custom software for other business. This is true, but after listening to Adrian I’ve gained more respect for his business. This is a story of a little Aussie company taking on some of the biggest software businesses in the world and on many fronts, winning. I’m talking about the SAP, Microsoft and Oracles of the world.
Adrian gave an account of his business history. From start-up chasing venture capital, to stock market float, to the current expansion into the UK. His story wasn’t as detailed as I’d like it to have been but that can be forgiven considering the limited time he had to present (buy the book they say – but is there a book?).
In brief, this is what I took from Adrian’s presentation:
- He emphasised the importance of personal business-to-business relationships as opposed to partnering with multi-nationals to reach the market. He in fact noted this as a key differentiation strategy he implemented early on to compete with the big boys.
- Tech1 spends 20% of revenue on R&D (research and development) and releases software on a six month turnover compared to an 18 month+ timeline at some of the other enterprise software firms. Do you think that gives them an edge?
- It’s not about the money. It’s pretty clear Adrian, as the founder and CEO of the business, became a wealthy man a long time ago (a $160 million stock exchange float would have made sure of that). He’s not in business for the money anymore. Sure money is tied in since it is one of the main evaluation scales we use to determine success, but I think it’s the challenge and competition that keeps Adrian motivated currently. There is some ego involved, but that’s required for any successful businessperson. Again this is an example of the extreme drive and motivation present in each and every successful business person that has presented at YNOT.
- Adrian spoke quite passionately about what he termed the “cultural cringe”. In Australia many of our business leaders have a tendency, perhaps blindly, to select software produced by overseas firms when there are local alternatives that are often more affordable and just as good, if not better. Adrian pointed out as an example that the Qld government chose to make SAP mandatory for their departments, some of which are too small to utilise it and would be better off using a more appropriate mid-ranged enterprise solution. The government made this decision without even putting tender to market, eliminating the chance for any local firm to pitch their skills. Initially I was worried when he started his (self professed) “whinge”, because I thought it might just be a case of him wanting more marketshare. As he continued however I could tell he really was impassioned from a desire to change the mindset for the sake of the whole Australian industry, not just to the benefit of his business.
I recently watched a SBS television program about Australian business that, while not directly touching on Adrian’s “cringe” point, certainly had a similar tone (it was more focussed on the Australian Diaspora). There is what I think I can best describe as a vibe out there that countries like Australia and Canada have an inferiority complex when it comes to business. It’s a self defeating problem because our talent is going overseas and our executives are choosing to purchase from overseas companies because “it’s what’s done” – the mindset needs to change. An interesting topic for sure.
After Adrian’s speech we headed to the usual networking time where you have the opportunity to mingle with the other entrepreneurs. During this time I had the pleasure of meeting Dion Kramer in person. We have conversed via this blog initially and then email so it was nice to put a face to a name. Dion has quite a business history (you can read a brief synopsis in a comment he made recently) that he recounted in more detail that I really enjoyed. As Edward Chalmers, who was there from Marketing-Results pointed out, it was like having a second YNOT presentation.
I met a few more new people during the night and had one person, Tina, comment about how she had read my interview at the YNOT site and could really relate to my comments about doing something you like and not be as rich compared to doing something you don’t like for more money. The trick though of course, is to find what you love to do AND that makes you rich!
Yaro Starak
YNOT Fan
Yaro,
A good account. The talk by Adrian Di Marco and the gathering afterwards were both worthwhile. Certainly glad I attended.
Thank you for the kind words.
Regards, Dion Kramer.