Flying the flag
Flying the flag
There are an abundance of Australian companies that have made their presence felt on the global stage. Here, Stuart Finlayson and Austrade's (Australian Trade Commission) Karla Davis profile three local technology developers that have done just that, while another Aussie company which has recently gained a foothold in the U.S., and a vastly experienced Australian software company with a global presence, share their experiences and offer words of advice to fellow Australian companies looking to follow in their footsteps
Legal eagles flying high
Melbourne firm's innovative legal software now used by over a third of the world's leading law firms. Ground breaking software developed by Melbourne-based Ringtail Solutions is giving corporations, law firms and government bodies a technological edge over competitors when it comes to pre-trial litigation support systems and merger and acquisition proceedings.
Ringtail Solutions was founded by Chris Priestley in 1997. Inspired after working on the Estate Mortgage hearings, he realised there was a market for legal software. Later Eddie O'Brien, a computer scientist, became a joint owner and director and brought with him much of the structured product vision that helped steer the company in the right direction commercially.
Ringtail initially targeted the Australian market. Now, nine out of 10 of Australia's largest law firms use their software. A growing number of international corporations, law firms and government bodies have also now adopted Ringtail, including over 35 percent of the worlds top 100 law firms.
Four years after they started out, Priestley and O'Brien sold Ringtail's Australian/Asia Pacific sales and marketing rights to CCH-a worldwide publisher of tax, law and accounting publications.
Ringtail still develops its own products, but now sells predominantly to the U.S. and U.K. markets. Ringtail remains a tightly run outfit with just 25 staff, but exports now account for approximately 92 percent of business, which illustrates that an organisation does not have to be heavily populated to think global.
"Austrade helped with entering the U.S., Asia and U.K. markets by providing information on who and what to know," reveals Ringtail's administration manager, Michael Blewett. "The most useful thing of all is the encouragement that Austrade gives to companies thinking about the move into international markets. It can be very daunting when the scale of the North American and European markets are considered and it's always good to know that you are not the first company to take the road less travelled."Funding assistance through Austrade's Export Market Development Grants (EMDG) scheme has also been extremely helpful to Ringtail in its overseas push, particularly stateside, as Blewett explains.
"There's a huge market for our product in the U.S.. We compete against companies many times our size. We're winning tenders for big clients despite the competition from those larger U.S. software firms,"
The company's success is largely attributable to its flagship product, CaseBook, which allows users to organise pre-trial litigation evidence quickly and efficiently.
"CaseBook users can view masses of evidence in a variety of ways, so they can look at court cases from many angles, providing the necessary insight to help win," says Blewett. "Many large law firms have taken advantage of the product's flexibility and have tailored it for use in due-diligence proceedings."
Important decisions about the architecture of the product were made very early in the piece.
"From the beginning our software was web browser-based. Companies run it over existing networks and standard Internet software. Alternatively, clients can access our applications using us as an Applications Solutions (hosted) service on Ringtail's servers," outlines Blewett. "Many of our competitors took a different route (to the browser-based approach) and are now trying to catch up, technologically-speaking."
Ringtail Solutions was recognised in 2003 as Victoria's winner of the Information & Communications Technology Exporter of the Year Award.
Technology behind enemy lines
Dubbed the ultimate intelligence decision maker, Agent Oriented Software's technology is helping forces perform rescue missions at no risk to human lives.
"A typical unmanned aircraft that doesn't use our software might require between five and 30 people on the ground to control it. Our software can control 10 aircraft withjust one ground staff because it helps the vehicle think for itself."
So says Dr Andrew Lucas, founder of Agent Oriented Software, another Aussie success story. Lucas started out as an aeronautical engineer then worked in the software industry for about 20 years. He learnt about the limitations of technology and studied for a doctorate to understand the leading edge of technology and how it can be applied. The company has gone on to develop world-first intelligent agent software that helps people and machines make decisions, saving lives and money.
"Using our software, an organisation can utilise a number of lower cost vehicles and keep them going longer. The vehicles can locate things such as planes in difficult terrain or venture into dangerous seas looking for a yacht."
Since starting up in 1988, Agent Oriented Software has been strategic in developing export markets. Their efforts have resulted in the company recently being awarded the U.K. Department of Trade & Industry "Winner, New Business Entrant" to the U.K. in 2004.
Lucas believes key factors contributing to their success include collaborating with the Australian Defence Department and Melbourne University to develop their artificial intelligence concepts, as well as the heavy focus placed on exporting to overseas markets."Melbourne University's support gives us academic credibility. For example, there are many marketing claims made by software developers, however their products may not deliver. The Defence Department also acknowledges our software has made real advances."
Lucas is of the opinion that Australian businesses in general, but particularly smaller operators, need to be much more alive to the potential gains to be had by looking outside these shores.
"In terms of an export culture in Australia, I think many small businesses are behind in recognising the benefits [of exporting]. For us, it's vital we're in Europe and North America as well as the local market."
Agent Oriented Software customises its products for many purposes. For example, it has a contract to assist the US Air Force in developing a simulation and training capability that allows American military personnel to train and practise to prepare for different rules of engagement.
"The US Airforce will use our software in a training environment on their bases to put troops through rehearsals before they're deployed. This will ensure everybody understands a number of scenarios that could occur in combat and displays how the rules of engagement might play out in different circumstances. These days it's not the goodies versus the bad guys in combat, troops are often sent out where civilians are, which means the rules of engagement are more complex than ever," says Lucas.
That's not to say that Agent Oriented Software is concerned solely with the military. As Lucas points out, and as is the case with Agent Oriented, new technology often starts off in the military first then commercial applications follow.
"We're now looking at taking our approach to the banking and finance industry. Our software can be connected onto phone and computer lines. It can be used to improve customer service by identifying a customer's habits and requirements. For example, if a customer doesn't drink, our software can prevent them from being bomarded every month with incentives of free bottles of wine. It also can help determine whether a person should be contacted by phone or not if a bill needs to be paid."
Agent Oriented was established in 1988. It now has 30 staff based across Australia, the U.K. and the U.S.
There's no stemming this flow
Melbourne's Lava Web Creations has lived up to its name by careering along at a relentless pace, both in Australia and internationally Director of Lava Web Creations, Stuart Gonsal says a key ingredient his company offers is often missing when many organisations create websites.
"A lot of businesses employ IT and graphic design people to create colourful websites, however we go one step further by starting with a targeted marketing strategy.
"We thoroughly research businesses we're dealing with to find out how they tick and then design their website, incorporating a tailor-made marketing strategy to enhance potential for success. We provide a strategic marketing analysis (promotional component), professional graphic design and programming.
"I feel in many ways the lack of a targeted marketing strategy incorporated in an organisation's website is the missing cog in industry," ventures Gonsal.
Lava Web Creations is not exactly typical of most companies, in that it enjoyed international success before it had achieved much recognition in its native Australia. Gonsal says exports have very much progressed the expansion of his business.
"Since mid-2003, our total business has grown by more than 300 percent. Exports now make up 15 percent of our total revenue, and have also enabled us to market our business more effectively locally. We're currently exporting to the U.K. and have just been presented with opportunities in Italy and Singapore."
Lava was helped in its foray into the U.K. market by its appointed U.K. representative, James Robinson, who worked for the company in Australia as a design consultant before heading back to the U.K., where he started his own business, JDR Graphics. "James has been great in terms of face-to-face meetings and attending trade events, many of which have been organised by Austrade," acknowledges Gonsal.
Gonsal is fulsome in his praise for Austrade's work with companies such as Lava, both in terms of the financial support and the market expertise offered.
"We've also found Austrade's New Export Development Program (NEDP) very helpful. We signed up earlier this year and after providing an initial brief we were given a free report regarding the best markets to approach. Austrade's London-based business development manager Alex Moir has been a real gem-his knowledge and people handling skills are first class.
"I've also been to a number of Austrade seminars locally and often refer clients of mine to Austrade's Export Market Development Grants (EMDG) scheme to help fund the development of their websites."
Towering over the global markets
Any fledgling Australian IT provider with ambitions that lie beyond this country should take note of Tower's measured approach to expansion, the results of which speak for themselves.
Recognising the need for a solution that helped organisations manage and maintain their corporate information, a team of document and records management experts founded Tower Software in 1985.
Today, the company serves nearly 1000 customers in 32 countries worldwide, with its TRIM Context software one of the world's leading EDRM (Electronic Document and Records Management) applications.
Tower Software's managing director, Martin Harwood reveals how Tower initially established itself overseas and what lessons it applied from its experiences in the domestic market.
"We established our first overseas office in the USA-in Reston, Virginia, just outside of Washington in 1995-ten years after the company started. But we'd already at that point had some success selling TRIM in New Zealand and Canada. The main lesson we applied from our experience in Australia was one of 'organic growth' Tower Software has never needed to use debt to finance its operations-indeed we've been profitable every year-so our expansion overseas followed that model. We make sure our growth is sustainable."Harwood's advice for companies looking to set up in another country is, above all else, to be thorough and make use of all resources available.
"Make sure you do your research, always know precisely what you're getting into; make sure the intelligence you get can be relied on. Find out what organisations exist that can help you-it's not just Austrade. Often your target market will have agencies tasked with getting more investment in their areas-they can be a really useful source of information.
"There's actually a lot of help and assistance for Australian businesses who are looking to expand. There are Government Programs, both from Australia and from the markets we look to invest in, as well as groups like ANZTech-networks of other IT companies and professionals who are also expanding overseas."
Harwood stresses that the amount of homework a company does beforehand is very often critical to its future success in a new market.
"It's trite but true-companies should do as much background work as they possibly can, right down to making sure the office is in the right location. It's amazing how much the little things you wouldn't think are important can impact on your success."
Expat on the back for capital software firm
How Canberra-based software development and services organisation TASKey used a local link to Silicon Valley to great effect, and what other Aussie companies looking to follow suit should be aware of According to its founder and managing director, Dr Neil Miller, TASKey provides software tools that enable companies, teams and individuals to define and allocate appropriate workflow against specific activities to meet strategic goals.
Founded in 1991 by Dr. Neil Miller, the company expanded into the U.S. in 2003 with offices in Houston, Texas.
TASKey recently gained further recongnition in the important U.S. market by virtue of its participation in a valuable initiative called the Canberra-California Bridge Program. Miller reveals how the pan-Pacific initiative came into existence and how TASKey became involved.
"The California Bridge Program was initiated after an ANZA Tech Conference in Silicon Valley in November 2003. ANZA Tech is a group of expatriate Australians and New Zealanders who have established themselves in the Silicon Valley ICT industry.
Annually, they provide a forum for promising Australian and New Zealand technology companies to present their technology and participate in a series of forums run by experts on the subtleties of the U.S. market and how to become an effective participant. The outstanding benefit of each forum is that expatriates (many of whom are leaders in the ICT industry) can explain their experiences and highlight the difference between the U.S. and Australia and New Zealand. The major difference is that Australians tend to focus on the technology (what a great product you have) whereas the U.S. focus on the business opportunities for that technology. The other key lesson was the importance of networking and the mechanics of how it is done in the U.S.
"Prior to ANZA Tech, key members of the ACT Government Business Development team worked with the representative ACT companies through preliminary workshops to develop presentations to potential U.S. partners and Venture Capitalists. After ANZA Tech, the business development team focused on how to transition promising ACT companies from a technology focus to a point where they could present their business opportunity in U.S. format and terminology. They identified organisations in Los Angeles, Orange County and San Diego (the three other centres of ICT in Southern California). Two organisations-the Los Angeles Region Technology Association (LARTA) and Global Connect from the University of California San Diego stood out as having the best technology transfer methods.
"Consequently the ACT Government decided to invite the principals of both the LARTA and Global Connect technology transfer programs to Canberra as keynote speakers at its annual Focus on Business. The next step was to formally integrate the resources of ACT Business, LARTA and Global Connect-the result was the California Bridge Program. ACT technology companies were invited to apply for the program, which provided an intensive training program for 12 companies, of which four were selected to present their business plans to influential U.S. players in the U.S. (in the same way U.S. start-up and early stage businesses do). As one of the four ACT companies selected, and by jumping all the same hurdles as similar U.S. companies, TASKey were benchmarked against those U.S. companies, which was extremely important for credibility."
Having learned a great deal from his time in the U.S., Miller has many nuggets of useful information to impart upon others looking to break into the potentially huge market. Chief among those are the following:
• Spend time in the U.S. to understand how businesses and decision makers think, operate and communicate.
• The CEO needs to take the lead, because U.S. decision makers like to talk directly to the decision maker. At least one credible reference site in the U.S. is required.
• The product or service must directly solve a real or perceived pain point with minimal perceived effort
• Networking is fundamental and people are keen to help each other (if there is a business fit)
• The U.S. market is so big that you need to focus on specific verticals (too many verticals and you lose credibility).
• You need a compelling 30-second elevator pitch that highlights your value proposition.
Now that Miller has worked to gain TASKey a foothold in the U.S., there will be no resting on their laurels, with the next phase of the strategy already fully operational, as he reveals.
"TASKey has established a relationship with an experienced marketing organisation that has achieved a number of reference sites at a reasonable cost. TASKey is now expanding by establishing a presence in the U.S. to increase U.S. customer comfort, and to manage and support distribution channels. The California Bridge network will be sustained for advice, business opportunities and the venture capital needed to accelerate growth."How difficult it is for Australian companies to gain traction overseas is, according to Miller, largely dependent on the need for your product or service. "You need a 'pull' situation, because creating a market in the US is extremely difficult, expensive and time consuming."
While acknowledging the help available through Austrade to develop a general understanding of the market and provide a friendly point of contact, Miller says that because they support so many companies and products, they don't have time to provide detailed help to individual companies.
"Another valuable information resource is successful Australian exporters. However don't forget to talk to companies that have tried and failed-it is best to learn from other's mistakes as learning from your own is very expensive. You need to make it happen or find people who can make it happen."
Here are some useful tips Australian companies looking to branch out overseas:
• Don't assume things are the same as in Australia
• Spend some time in the country you are looking to break into-it is hard to manage and build relationships remotely
• Don't expect it to be easy and appreciate it will be long haul (years not months)
• The costs are significant-think in millions
• You need professional assistance, especially legal and intellectual property
• Carefully screen individuals who are keen to help you for a big monthly retainer.
Make sure they have the infrastructure and track record to deliver what they promise. And so to some final words of encouragement from Miller-
"The risks are high, the work is hard, the cost is significant, and a fair bit of luck is required, but the payoffs can be huge."
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