a successful software · service, resource and ﬁ lm scheduling, signage, web/call centre telephony, kiosk, customer loyalty, management reporting, EIS. Over 400 Customer Sites in

Examples ofGrowing

a successful softwarecompany in New Zealand

Foreword:

Microsoft and NZTE are both committed to the development of New Zealand’s Information

Technology Sector.

This sector is central to sustainable economic growth within New Zealand and to

overcoming the country’s productivity challenge. NZTE and Microsoft share the view that

software plays a critical role in unlocking the potential for New Zealand’s future economy.

This handbook summarises the fi ndings of a project run by New Zealand Trade and

Enterprise (NZTE) and Microsoft New Zealand (Microsoft) to provide examples of how

several software companies have leveraged our joint resources to develop their businesses

with a view to preparing these organisations for future growth.

It is our intention that this document and the examples contained within it may assist other

organisations that aspire to grow their business and wish to understand how other

organisations have successfully leveraged our shared resources.

Helen Robinson Hans FrauenlobManaging Director ICT Sector DirectorMicrosoft – New Zealand NZTE

1

Growing a successful software company in New Zealand

2

Contents:

Executive Summary ..................................................................................................................................... 2

Introduction ................................................................................................................................................... 3

The Need to Partner ................................................................................................................................... 4

The Companies ............................................................................................................................................ 5

Right Hemisphere .................................................................................................................................. 7

AdvanceRetail Solutions ....................................................................................................................... 9

MEDtech Global Limited ....................................................................................................................11

Orbiz .......................................................................................................................................................13

Vista Entertainment Solutions ..........................................................................................................15

Healthphone .........................................................................................................................................17

Conclusion ...................................................................................................................................................19

Appendix ......................................................................................................................................................20


1 2


Executive Summary

New Zealand Trade and Enterprise (NZTE) and Microsoft are both committed to New Zealand’s software industry, as it is fundamental to this country’s international success and position in the knowledge economy of the 21st century.

With their ability to scale rapidly in global markets and infl uence almost every aspect of business and everyday life, software companies are key components of the future growth of the New Zealand economy. They can also overcome the limitations of New Zealand’s relatively small domestic market and physical distance from global customers, for both themselves and other New Zealand companies that use their products.

In many instances the owners of these software companies struggle with all the options available to them to grow their business; it can often be diffi cult to know what to do and who to turn to. For this reason NZTE and Microsoft have worked together with several New Zealand software companies to create this report, which provides practical examples of how other companies have been successful by utilising the various programmes available from NZTE and Microsoft.

The objective of this document is to help other software companies in the future, by highlighting the benefi ts of leveraging the resources that are readily available and of working with people with a proven track record in the software industry (such as John O’Hara) to advise them on how best to invest their time and effort. The document also provides an insight into how several companies have built substantial businesses in international markets.

The ultimate measure of success for this document will be if other companies can adopt the lessons contained within it to refi ne their own strategies for future growth. Sean McBreen from Microsoft highlights one of the key observations from the process, “it seems so obvious but organisations who have a clear and focused value proposition and goal – whether it’s a targeted market vertical, a single geography or a technology niche – greatly improve their ability to communicate their value proposition to others, increasing the chance of fi nding synergy with their customers, us [Microsoft] and NZTE”. Companies can also greatly increase their chances of success by working with both NZTE and Microsoft to minimise the risks of developing a presence and executing in international markets. They have used the various market development tools, research programmes and technical training programmes to support their key management decisions and develop their technical teams. They have also leveraged the offshore support programmes of Microsoft and NZTE to support in-market sales generation.

While this project is unlikely to be repeated, it is hoped that this document helps to demonstrate how to maximise the benefi t of working with Microsoft, NZTE and other support organisations providing best practice examples based on the real experiences of a variety of New Zealand companies in different stages of their development. The appendix also provides a list of programmes, suggested readings and contact details that are mentioned throughout the document, which have assisted the companies studied to develop their go-to-market plan and to create the right business and technical environments for success.

3


4

Introduction

Microsoft and NZTE engage with many organisations within New Zealand, and work to assist in the development of their business. This development is facilitated through direct relationships and a variety of supporting programmes.

However, for many organisations the task of navigating through the various programmes and services offered by the two organisations can appear to be arduous. Which programme is the right programme for me? What are the true benefi ts of these programmes? Who else has had some degree of success? How did they make the programmes work for their company?

In 2006 Microsoft and NZTE undertook a project to work directly with several software companies in various stages of their development. The stories of these companies have been recorded to assist other Independent Software Vendors (ISVs) in determining an appropriate mix of the programmes and services that could be utilised from Microsoft and NZTE in achieving productive business development.

The case studies presented here provide a practical fi rst steps guide for other New Zealand software companies wanting to work with NZTE and Microsoft. The case studies illustrate by example how several companies have engaged effectively and mapped business needs against the programme offerings of the two organisations.

3 4


The Need to Partner

For small and medium New Zealand ICT companies it is particularly diffi cult to develop all the necessary competencies and resources necessary to compete in international markets. Therefore, collaboration either through joint ventures, alliances, or various forms of business networking is often necessary.

Due to the small size of the New Zealand software market, many of these fi rms are driven to export very early in their development. Software product exports represent a viable growth platform for both the New Zealand economy and these organisations. As a result Microsoft, NZTE and these organisations have a high degree of synergy in their aspirations. Accordingly, small-to-medium companies can often make productive use of the Microsoft and NZTE programmes in the early stages of development. Collaboration can bring benefi ts such as the enhancement of business credibility and lowering of entry barriers in global markets.

The majority of this document is dedicated to six case studies about New Zealand businesses that are all at different stages of their evolution and development. They all have different requirements and challenges within their businesses.

These businesses were selected because they had the resources, leadership and systems to grow rapidly and because of their relationship with Microsoft (as a key software platform provider) and NZTE. The goal of the case studies is not to cover these in great detail but to highlight where engagement with Microsoft and NZTE has yielded results that have impacted their business positively.

John O’Hara, author of “Commercialising Innovation1” sums it up, “Many organisations forget the step between plan and execution; you could call this a dry run of the fi nal activity – whether it’s prototyping a new solution, looking for possible contact before a trade show, preparing your pitch with others outside your business before you have to do it for real, or forming a network in a target market before you arrive. This is what getting ready is all about – how do you maximise your resources for that one shot at success?”

Microsoft and NZTE wishes to thank these businesses for supporting the creation of this document and for sharing their experiences with others so that they can assist in the development of New Zealand’s Information Technology sector. The Microsoft and NZTE programmes utilised by the companies are referred to in footnotes and the Appendix.

1 Commercialising Innovation – a pocket guide to business issues that New Zealand based software developers need to consider, John O’Hara Limited, 2005

5


6

The Companies

Right Hemisphere – Offi ces in Auckland and Silicon Valley, California with satellite offi ces in Europe. Founded in 1997, a privately-held, venture-funded corporation. They are the leading

provider of Product Graphics Management (PGM) software. Software enables manufacturers to globally source, sell, and service products more effectively by delivering the right 2D & 3D product graphics, in the right format, right now across their extended enterprises. Right Hemisphere leverages Microsoft technology (including Microsoft’s .NET framework, Microsoft Windows Server, Microsoft Internet Information Server, Microsoft SQL Server, Microsoft Message Queue) and publishes 2D and 3D product graphics in Microsoft Word, Microsoft PowerPoint, Microsoft Excel. http://www.righthemisphere.com

AdvanceRetail - Offi ces in Auckland (Head Offi ce), Sydney and Brisbane, and business partners in a number of countries. A member of the Data Group of companies, a New Zealand-based software and services company with a track record spanning over 35 years. They specialise in the development, implementation and support of retail management solutions for multi-site specialty retailers. Solutions are designed to manage all point-of-sale

functions, providing full inventory control, debtor management, purchasing and frequent customer management. They are the market leader in New Zealand (approximately 50%), and one of the top 10 suppliers in Australia. They also have a presence through distributors in Asia and North America, serving retailers in a wide range of vertical markets. http://www.advanceretail.com

MEDTech Global Limited - Head offi ce: Viaduct Quay, Auckland with satellite offi ce in Australia. MEDtech is a software solutions provider to the Healthcare industry with a market leader position in New Zealand (75%). MEDtech products include a practice

management software application for General Practitioners and other Primary Healthcare providers, and a data mining and aggregation tool for capitation-based funding and population health management. Software solutions are designed to improve business effi ciency and automate workfl ow processes, provide Electronic Health Records, facilitate e-Commerce and provide online access to information relevant to customers’ business activities. Future technology: n-tier .Net, using C# and SQL Server 2005, Visual Studio 2005 development environment. http://www.medtechglobal.com

5 6


The Companies (cont.)

Orbiz – Head Offi ce: Auckland. Products include: Health (Dental, Community, and District Nursing), Mobile Application Framework for Health solutions, Sales (customers, products, and orders), Territory Management, Market Research, Service – Job Dispatch, Mobile extensions to established products (GoldPDA). Future technology: Visual Studio Team Services, Object Orientated, Agile, TDD, FIT, SOA. Currently Microsoft ISV Gold Partner, with ISV, Mobility Hardware competencies. http://www.orbiz.biz

Vista Entertainment Solutions - Head Offi ce: Auckland, distributors in the US, UK, India, Mexico, Africa and Southeast Asia. 50/50 Joint Venture between management and Village Sky City Cinemas. Presently focused on the international cinema exhibition industry. The Cinema Management System spans 16 modules, with applications for point of sales (POS), inventory management, food

service, resource and fi lm scheduling, signage, web/call centre telephony, kiosk, customer loyalty, management reporting, EIS. Over 400 Customer Sites in 20+ countries (approximately 4% of the world market). Technology: VB, ASP, SQL Server, OLAP services, .net, Windows Server, XP clients or XP embedded, millions of lines of VB.http://www.vista.co.nz

Healthphone - Head Offi ce: Newmarket, Auckland, with offi ces in Australia and Canada and will be entering the US, Asian and European markets in 2006/2007. Healthphone’s integrated patient management, electronic records, workforce management and back

offi ce application provides access to health information through a single system delivered over the Internet through any device with a web browser or Offi ce client. Doctors, nurses, community healthcare workers and patients access and enter up-to-date health information, care plans and associated treatments directly at the point of care. Software components and products include: Offi ce 2003, Exchange, Infopath, Sharepoint Portal Server, Windows Server, SQL Server 2005, IIS/ASP, Active Directory, and BizTalk 2006. Microsoft has signed up Healthphone as a global partner for Long Term Condition Management and Community Care to support its worldwide Connected Health Framework. http://www.healthphonesolutions.com

7


8

The Companies:

Winning PartnershipsThe leading provider of Product Graphics Management (PGM) software2, Right Hemisphere delivers solutions to over 500 innovative manufacturers, including fi ve of the top six automotive OEMs and nine of the top ten U.S. aerospace and defence contractors. These solutions dramatically accelerate time to market, increase product and service revenues, and lower product communications costs. The products are created using the platforms of key industry leaders, Microsoft, Intel and nVidia.

Founder and CTO Mark Thomas explains, “We are all about the infrastructure and tools to make 3D as ubiquitous as text is today in day-to-day communications. In many ways Microsoft and the Microsoft platforms have been central to our business strategy. Firstly, we knew it was essential that our products were built on the Microsoft Windows and Offi ce platforms, as these are what the majority of our customers use. Our server-based product, ‘Deep Server’, is built for Windows Server. One of our client products, ‘Deep Publish’, is built for Internet Explorer and Microsoft Offi ce (it plugs into MS Offi ce products). Secondly, we knew right from the start that there would be no problem in fi nding 3D programmers and designers who used Microsoft applications and could meet our resource needs.”

Microsoft Technology a Key Contributor to SuccessCommitting early on to adopt Microsoft’s upcoming technology has also enabled Right Hemisphere to access several early adoption programmes. “The Touchdown2” programme has helped us rapidly get up to speed with Microsoft’s upcoming technology and validate our technology roadmap”, explains Jed Fisher, VP Development. This strategy also led us to form a direct partnership with Microsoft Xbox. We packaged a version of our product ‘Deep Exploration’ with the Microsoft Xbox Developer Kit. This directly helps game developers reduce the time to market for making games using our technologies.”

The company is quickly attracting the global attention of 3D digital artists who use their products in the rapidly growing markets where technology, communication and art converge. Fisher selected Microsoft to stay on the technology edge, “We are working closely with Microsoft for ‘Deep Publish’ because we want to have a tight 3D integration with Vista and support for the Vista eXtensible Application Markup Language (XAML) technology.”

2 PGM, a new category of enterprise software, enables manufacturers to display products effectively in 2D and 3D graphics instantly using their existing CAD and PDM system data, allowing a product to be represented quickly, accurately and be updatead regularly.

3 Touchdown – A Microsoft Early Adoption programme, refer Appendix, pp. 21

7 8


4 NZTE Beachhead programme, refer Appendix, pp. 30

5 2006 Microsoft Global Export Potential Award (MGEPA) at the Consensus Software Award (CSA), Australia.

The Companies (Right Hemisphere cont.)

It’s all about Working with the Right PartnersApproximately 80% of Right Hemispheres’ business is direct sales in the US. “When establishing our exports to the US market we had help from NZTE’s sector manager. He really helped to leverage signifi cant resources through government grant applications to attend trade shows, and to help establish off-shore offi ces,” Thomas explains. “When we realised we needed closer proximity to our clients in the Silicon Valley region, NZTE introduced us to Beachhead meetings and potential partners.”

Right Hemisphere’s effort to continually innovate to develop systems for 3D content has recently been recognised through several awards, including the 2006 Microsoft Global Potential Award at the Australian Consensus Award Conference.5 Mark sees value in the effort to apply, “By participating in the awards we engaged with key people in the industry. The press generated from this sort of activity has improved our visibility and motivated teams to achieve excellence.”

9


10

The Companies

Complexity Makes AdvanceRetail Cash Register RingIn a modern retail environment in which chain stores are dealing with volume customers and product lines, the reliance on an excellent POS system that integrates well with whole business and supply chain partners is paramount.

“AdvanceRetail has created a robust point of sale system for retailers based on Microsoft technology that meets the demand of the constantly evolving market place,” said Mark McGeachen. “Retailers are traditionally conservative but this sector is changing rapidly. By changing out their decades old legacy systems to our solution on the Windows platform, it is easier for them to better understand what is happening in their business.”

This formula has been highly successful, with demand from the highly competitive retail sector seeing AdvanceRetail take 50% market share in New Zealand with similar success in emerging overseas in markets.

Business Knowledge through IntegrationRetailing is highly competitive, and requires business systems that provide business-wide information, easy staff training and cost-effective maintenance. For specialty, hard/soft goods, department, mass merchandise and factory outlet stores, effi ciencies across the retail supply chain are critical to business survival.

Retailers also demand high levels of support to be delivered in a cost-effective manner. “AdvanceRetail has built infrastructure so that we can update our software and modules without having to visit our customer sites”, says Mark. “The Microsoft platform allows us to do that, which of course increases customers’ satisfaction levels and lowers the cost of our relationship with them. If you’re a software company you need to think about this from the outset.”

“The Microsoft platform

has allowed us to build

an infrastructure that

increases our customer

satisfaction and lowers

the cost of our

relationship with them.”

Mark McGeachen

9 10


6 ISV Certifi ed Partner Programme, refer Appendix pp. 22

7 MSDN Subscription Software, refer Appendix, pp. 22

8 Embedded Royalty, refer Appendix, pp. 24

The Companies (Advance Retail cont.)

Increasing the MarketWith a rapidly expanding market base in Australia, Canada, Ireland, China, Malaysia and Singapore, AdvanceRetail have now pursued a stronger partnership with Microsoft to ensure that the licence components that combine with the AdvanceRetail product present a low barrier to entry. This means that a more integrated and fl exible approach to a variety of customers can be offered. A critical component of this strategy is working closely with Microsoft to ensure global readiness. “We want to achieve ISV Certifi ed Partner6 status with our current network infrastructure specialists,” says Mark. “To do that, we’ll write our technology plan and ask Microsoft technical specialists to assist by validating the design ideas.”

Adds Mark, “It’s important that we understand and optimise the Microsoft licensing component of our solution and this is important for both our long-term technology and business plans. Access to the Microsoft MSDN subscription software7 early on has been useful for getting exposure to the new technologies before they hit the streets - and to update our plan.”

AdvanceRetail are also now building a road map to move toward Embedded Royalty8 and to tighter integration with the Microsoft .Net platform to further lower cost barriers for customers and provide global competitiveness for the solution.

By working with NZTE on this international expansion, AdvanceRetail now recognises the need for a non-executive board. This will be comprised of individuals with international market experience who can assist to develop new company structures and the design and deployment of the AdvanceRetail roadmap to market.

“By engaging with Microsoft and NZTE, AdvanceRetail are now in an even stronger position to engage with international customers who want their cash register to ring with even more effi ciency,” says Mark.

11


12

The Companies

MEDtech produces software that manages patient records, back offi ce functionality, external reporting and prescription management. It’s a fi rst class software platform that has enabled MEDtech to obtain over 75% of the General Practitioner (GP) market share in New Zealand, with a rapidly growing international install base.

Vino Ramayah, Managing Director, sees huge potential in pursuing international markets, “Our products have a global application and we fi rmly believe that our success in New Zealand can be replicated. The key to this success will be to acquire suffi cient market share as soon as possible to be considered relevant in the particular geographic market. With this strategy, close alignment with both Microsoft and NZTE are critical.”

With this global expansion it has become more important to ensure that MEDtech is nimble enough to quickly adjust to the requirements needed in each region. Ramayah explains, “We have a huge amount of generic functionality, which is very adaptable and modularised and is capable of being customised for a particular country. Our selection of Microsoft solutions will support this. We have committed to the .Net environment to enable our international expansion and are migrating our solution to take advantage of Microsoft technology options that are most suitable to our clients’ needs.”

Market ResearchWhile expanding on many international fronts, MEDTech has worked with NZTE in researching new markets to ensure that the health sector of the potential market could sustain a new entrant and be profi table. Prior to any engagement in the market MEDtech scopes the region, checks out its viability and understands the revenue opportunities. “NZTE has helped with feasibility studies to give us an idea on what is the best approach for a specifi c market,” adds Mr. Ramayah. “From there, we validate our thinking and approach by getting on the ground in that market.”

“NZTE has also helped us to research new markets through grants,” enthuses Mr. Ramayah. “Working with our sector manager we were co-funded to attend international conferences and tradeshows. We now have a greater understanding of and have established a footing in several international markets. NZTE sector is assisting greatly to obtain bigger opportunities with partnerships and alliances being sought elsewhere in such markets as Asia Pacifi c and North America.”

“NZTE has helped with

feasibility studies to give

us an idea on what is

the best approach for a

specifi c market.”

Vino Ramayah

11 12


The Companies (MEDtech cont.)

Smart PartnersA physician’s workfl ow needs to be effective, and to get a clear view of the tasks being carried out and the record keeping being done, the MEDtech suite includes clever modules such as the “Patient Dashboard”, which enables the GP to identify and prescribe for the specifi c patient. “This application will be greatly assisted by Microsoft’s integrated toolset and will enable greater ease of maintenance,” says Roger Brown, VP Development.

“We want to own the doctor’s desktop electronic real estates, so we become the ‘centre of gravity’ in terms of its electronic means.” Mr. Ramayah is enthusiastic about Microsoft technology options, which will assist in further cementing a bond between the GP site and MEDtech. “This means we can offer a more unifi ed and fl exible approach to a variety of customers.”

MEDTech is pursuing a Certifi ed Partnership agreement with Microsoft, which greatly lowers the costs for MEDTech to develop their products. “The development cost savings to us are signifi cant though this programme, with approximate savings of NZ$300,000. In addition, we are able to reduce the cost of the overall solution to our clients.”

“Our selection of Microsoft solutions and our market knowledge, greatly enhanced by the efforts of NZTE, will maximize our opportunities in developing international markets” says Mr. Ramayah.

13


14

The Companies

Integrated Mobile SolutionsOrbiz is a Microsoft ISV Gold Partner that develops integrated mobile data solutions using Microsoft .Net, and has developed signifi cant expertise in the Commercial and Health Sectors. Orbiz has developed a comprehensive product development platform for mobile software applications.

Philip Verstraaten, CEO, explains, “Our choice of Microsoft technologies has allowed us to develop a suite of mobile products that tightly integrates our customers’ mobile workers with their organisation’s back offi ce processes. We can now quickly and effi ciently customise and implement a technology solution that matches our customer’s business needs.”

“Microsoft technology allowed us to attract and retain the best people,” says Verstraaten, “and to build an innovative framework for solution development that leverages licensing models that our customers understand and value.”

Moving Past the New Zealand Market Orbiz worked out early on that they needed to look beyond the New Zealand market. “We realised we could only advance on one front and we used our NZTE relationships to fi nd out more about the offshore markets and the key customer organisations in countries like the UK through their NZTE people with signifi cant offshore experience.”

“As we expand, we see it as vital to share key decisions and strategies with people and partners who can help the business grow,” explains Verstraaten. “In this area we are leveraging external advice and market expansion strategies from people who have successfully gone to market internationally.”

13 14


The Companies (Orbiz contd.)

Building Credible SolutionsOrbiz also understand that business growth requires working with global partners and technology standards. “We went down the path of certifying our applications against Microsoft standards and became a Microsoft Gold Certifi ed Partner9 early on,” adds Verstraaten. “We found that this added signifi cant credibility to our product in the eyes of prospective customers.”

Orbiz has also found that investing in the Microsoft partner programme has opened additional doors. “Another benefi t of being a Microsoft Gold Certifi ed Partner is that this is a clear sign of our commitment to Microsoft, and it has allowed us to access the senior technology and business development people at Microsoft, introducing us to new opportunities,” explains Philip.

Looking to the FutureNow with a specifi c market strategy, Philip is focusing on ensuring their solutions are credible to these new customers. Orbiz realise that they need to maximise their investment into offshore markets; they want to target the right conferences, the right people and the right organisations within the growing sectors. To help navigate through this Orbiz turned to NZTE.

The two angles of support available to Orbiz include market-based research10 and engagement of specifi c NZTE staff involved in the health industry, which will de-risk the investment and also lower the cost base so the company’s aspirations can be achieved.

“Not only are we focused on a specifi c market” says Phil, “we have the option to engage with NZTE programmes to help fi ne tune our market propositions and go-to-market executions.”

9 Microsoft Gold Certifi ed Partner, refer Appendix pp. 22

10 Market Research, NZTE Programme, refer Appendix pp. 29

“With the help we’ve

received from Microsoft

and NZTE we

understand our

potential market

position more than in

the past, we know

where to place our

bet and maximise

our investment in

developing this

opportunity.”

Philip Verstraaten

15


16

The Companies

Vista Grows with Microsoft and NZTEVista Entertainment Solutions (VES) provides software solutions to the entertainment industry and has a strong position in the cinema exhibition market and interests in the other segments of the entertainment vertical market: live theatre, amusement parks, art galleries, sports stadiums and tourist attractions. Their product is installed in over 20 countries and they hold a position in the top three providers globally. In fact, if you go to the cinema, chances are you’ve had an effi cient experience driven by their software, from the moment you bought the ticket, gathered up your refreshments and settled into your seat.

VES has benefi ted from partnerships with both Microsoft and NZTE “which has enabled us to increase international market penetration through trade shows, obtain new revenue and explore new market segments” explains Brian Cadzow, CFO of VES.

Vision for GrowthVista now deals directly with clients in Australasia, China, Taiwan and Hong Kong and is moving to gain a greater presence in Europe. VES modules and core technologies are Microsoft based and supported globally in multi-lingual versions for large cinema chains and small single-site operators. Brian Cadzow explains, “As our international markets grew, our growth strategy had to change. We moved from a customised software product model to a ’buy and install’ model that can scale across many geographic markets. Our products had to become easier for customers to install and upgrade. Our sales model requires simple sales, installation and support processes and we have been able to achieve this by developing a packaged product.”

With that in mind, “growth plans and effi ciencies through the deployment and update of VES products remotely ‘over the wire’ via Microsoft .Net technologies is seen as critical as it reduces the amount of time spent on customers’ sites,” says Cadzow.

15 16


11 For example Microsoft Tech.Ed, refer Appendix, pp. 24

12 Touchdown Programme, refer Appendix, pp. 21

13 Microsoft Embedded Royalty programme, refer Appendix, pp. 24

The Companies (Vista contd.)

Keeping abreast of new and emerging technologies is the key to VES’s vision for growth. Says Cadzow, “We fi nd the easiest way to keep up with the vast array of Microsoft technology is by attending the key Microsoft events and international conferences. 11We take advantage of the Microsoft in-depth training12 on upcoming technology and then share the knowledge within our development teams. Offering these incentives has motivated teams in the technology uptake.”

When it comes to international market research, Vista often turns to NZTE for assistance. Cadzow explains, “Well connected people at NZTE made the Vista market entry easier. For example, Vista is the fi rst cinema software company in the world to be certifi ed in China as non-Chinese software. This is a major win and was helped in part through the partnership with NZTE. Advice from our NZTE sector manager and NZTE offshore offi ces also meant that international business processes became easier in China, Mexico and India and helped form useful relationships.”

Scoping New HorizonsNow, the majority of VES work is about understanding customer requirements and focusing on feature development to enhance their customer share in market segments, rather than maintaining 50 versions of their application.

Scoping the current market potential in the segment of cinemas, the growth potential from at least half of the 20,000 cinemas shows real revenue opportunities. VES also embeds Microsoft’s database (SQL Server) into their solution.13 “Embedding allows us to on-sell our solution at a cost-effective rate for cinema groups and enables improved levels of support” says Cadzow.

Murray Holdaway, CEO, is encouraged, “Getting traction quickly, in any international market or customer segment, requires an open team approach and helpful partners. Our team sees value in engaging with Microsoft and NZTE, increasing technology savvy and export market growth.” With a core development team in place and a proven business model and product, VES is now able to scale up for product demand.

“When it came to

international market

research, NZTE has

helped us to fi nd the

right international

banks, legal fi rms,

regulatory authorities

and to make valuable

connections with local

businesses in China”

Murray Holdaway

17


18

The Companies

Healthphone is ConnectedHealthphone is a fully integrated, end-to-end healthcare information system for community-oriented healthcare providers. The Healthphone solution “closes the loop” in terms of linking patient, caregiver, service manager and funder, wherever they are. It provides access to up-to-date health information directly at the point of care. The Healthphone solution uses mobile phone capability to communicate between patient and provider in relation to healthcare delivery.

Healthcare providers need to be connected to patients and their care routine while on the road. This is especially important for remote health workers who need to have access to patient data on the road and to feed back important record information to update the core fi les. Healthphone is that vital link and is growing at a rapid pace internationally with the help of NZTE and Microsoft.

One of the factors that make Healthphone successful is the technology strategy with Microsoft. “We chose a Microsoft strategy because we wanted to pick the technology platform that would enable us to go global fast” says Matt Hector-Taylor.

“We did an enormous amount of market research” adds Matt. “We knew the market that we were going into – the community care market. This is not an IT literate group of people but they do know the name Microsoft. Microsoft carries an enormous amount of trust for them because it’s familiar, it’s common, it’s off the shelf, it’s well known”.

“Most of the customers, if they have any computer, have got Internet Explorer or Offi ce and so it’s familiar,” continues Matt. “It also means that we can reuse their licenses so it reduces the cost to the customer.”

“Initially,” Matt continues, “one of the verticals Microsoft was focusing on was health. We saw this and brought a health vertical (product, information, software, service) ASP-type product to them. Microsoft was very receptive to this and that’s how the relationship began. Initially, Microsoft assisted with introductions and talking to other people in the industry at a senior corporate level. NZTE assisted the Healthphone team to ensure that their business model was sound and feasible. “NZTE are assisting us with grants to attend a health industry-related trade show to validate our product and strategy. They later helped through a grant14 to assist our market development. They’re supporting us actively on the ground in Canada; our NZTE [health] sector manager organised a meeting in the NZTE Toronto offi ce with an expert in the Health sector - this was very helpful and has opened doors for us.”

14 NZTE Market Development Grants, refer Appendix, pp. 29

“We chose a Microsoft

strategy because we

wanted to pick the

technology platform

that would enable us to

go global fast. Microsoft

carries an enormous

amount of trust for our

customers.”

Matt Hector-Taylor

17 18


The Companies (Healthphone contd.)

With the strategy being so well employed by Healthphone, it meant that international expansion was an activity that became easier by partnering with Microsoft and NZTE. Healthphone is now a global company with coverage in markets it could not have acquired by itself. Microsoft and NZTE have assisted in taking the company into Singapore, Hong Kong, UK, Australia and Canada. Matt enthuses, “It was a big challenge in terms of IP and legal, for instance. Both organisations have stepped up to assist us with the challenge and committed to the end goal.”

To Get There, you Have to Go There“Getting a strategy and an idea right is number one and making sure that you really know what it is that you’re trying to do and doing it,” outlines Matt Hector-Taylor. “I mean we had a business model nailed well before we went to anybody with it. We knew that NZTE focuses on helping independent software vendors increase exports to global markets. We also knew how our product could help Microsoft in achieving their objectives. We brought a well-formed idea to the table.”

Matt adds, “You’ve got to do your homework upfront to be able to get into the US. What I like about Microsoft is they don’t waste their time very much. They have amazing skills to evaluate ideas, people and technology. So you are not going to get through the door if you can’t be coherent at quite a detailed level. If you want to deal with Microsoft and get value from that relationship, it really helps to offer something of value to Microsoft because they have 50,000 worldwide partners.”

19


20

Conclusion

We hope these examples of success provide you with some ideas and ways you can consider partnering with NZTE and Microsoft.

Both organisations want to work with NZ companies who aspire to grow their business, and wish to understand how other organisations have successfully leveraged their shared resources.

The fi rms discussed above have gained some measure of market success and both NZTE and Microsoft have programmes and services to assist your fi rm, so what’s next? As many of the fi rms above have outlined, the key to partnering is to establish clear and concise goals of what your fi rm is trying to achieve in the marketplace. Once this is established, then NZTE and Microsoft can map the most appropriate programmes to your organisation.

We hope this guide has shown by example how other organisations have done this and gives you a good starting point so you can get going today.

In the appendix you will fi nd an outline of the various programmes mentioned by the fi rms above, along with contact details. We have also provided a suggested reading list of books that have had positive impacts on business thinking and operations for the high technology sectors.

Finally, we would like to thank you for taking time to review this document and wish you well on your endeavours.

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Appendix – Key Links

Microsoft LinksMicrosoft NZ Website – www.microsoft.co.nz The jump-off point for Microsoft NZ related information.

Microsoft Newsletters - http://www.microsoft.com/nz/subscribe Keep up-to-date with Microsoft, newsletters for IT Pros, Developers and partners.

Developer Information – www.microsoft.co.nz/msdnFind out how to get trial software, upcoming events, get support and meet the NZ team.

Partner Programme Information – www.microsoft.co.nzFind out about the partner programme and partner-related resources and events.

ISV Destination NZ – http://members.microsoft.com/partner/nz/isvdestination/default.aspxThis site is specifi cally targeted at ISV developers.

NZTE Links NZTE Site – http://www.nzte.govt.nzMain website for NZTE in New Zealand

NZTE Business Development Programmes - http://www.nzte.govt.nz/section/11727.aspxNew Zealand Trade and Enterprise supports New Zealand businesses at every stage of their development — from start-up to solid success.

Export Services - http://www.nzte.govt.nz/section/11728.aspxBroaden your opportunities with key export information and assistance from New Zealand Trade and Enterprise.

Publications - http://www.nzte.govt.nz/section/PUBLICATIONS.aspxFor most recent publications and reports.

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Appendix – Microsoft Support Programmes

Microsoft is New Zealand’s leading provider of development platforms, tools and databases for Independent Software Vendors. Microsoft has a large number of offerings and programs designed to help organisations. The top fi ve most frequently asked questions are:

1. How Do I Become a Microsoft Partner?Following on from this section is a summary of the Microsoft Partner program and the entry level ISV offering called Empower – with these programs you can start your Microsoft relationship and gain access to our resources, software, support offerings and sales channels.

2. Who to Contact for General Enquires and Partner Program?For all general enquires that relate to the Partner Program and specifi c ISV related issues the key contacts reside within the breadth partner team. Send mail to [email protected] for any questions relating to program criteria or benefi ts or specifi c training and programs such as application certifi cation and the ISV Embedded Royalty program.

3. How do I Get Product Support?For support of our existing product set and we always recommend that you fi rst utilize any support incidents provided from the partner program, details of these options can be found at this link https://partner.microsoft.com/global/40015071 (you must log onto the partner portal fi rst). Additional developer support options are also discussed http://www.microsoft.com/nz/msdn/support.mspx.

4. Can you Help us with New Technology Adoption?For new technology adoption Microsoft’s Developer & Platform Strategy team is the team who can help. If you feel you can commit to adopting a new technology from Microsoft within 180 days of the product release date then you may be eligible to early adoption assistance. Microsoft runs a limited number of depth training programmes (called Touchdown programs) each year for new products. These programs link you directly to the product group and take your technical staff through depth training and give them early access to our new products. These programs are designed to reduce risks in your product roadmap and open up additional opportunities to work with Microsoft. The programmes are by invitation only and typically require you to be a Microsoft partner. For more information contact Microsoft at [email protected].

5. How do I Keep My Technical Team up-to-date?We strive to provide the best possible resources to keep your technical team up-to-date on our products. The best way to keep well informed is to subscribe to our ‘MSDN Flash’ newsletter (http://www.microsoft.co.nz/subscribe) which highlights upcoming events, relevant training resources etc. We also provide partner specifi c on-line training which is available on the Microsoft Partner Portal for Certifi ed Partners - http://www.microsoft.com/nz/partner (login required).

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Appendix – Microsoft Support Programmes (contd.)

Empower ProgrammeThe Empower programme is targeted at the start-up ISV where capital outlays need to be minimised. This programme provides software, support and marketing benefi ts to kick-start the creation of your business and is the on-ramp to building a relationship with Microsoft and joining the Microsoft Partner programme. Companies can belong to Empower for 2 years with minimal preconditions before they migrate to the Partner Programme.

Benefi ts include:

1. Internal user software, e.g. Offi ce, Windows, Exchange and SharePoint.2. Software for development and testing, e.g. Visual Studio and Microsoft Developer Network (MSDN).3. Technical Support Services, e.g. Managed News Groups, MSDN Concierge and Phone Advisory Services.

URL: http://empower-isv.one.microsoft.com/isv/programguide

Microsoft Partner Programme (MSPP)The MSPP programme provides a globally recognised brand and quality alignment with Microsoft along with offering support to Microsoft partners through the lifecycle of their business from start-up through to being a signifi cant player in the market. There are 3 tiers to the partner programme:

1. Registered Member.2. Certifi ed Partner.3. Gold Certifi ed Partner.

Each level in the programme has a number of prerequisites (e.g. customer references, certifi ed team members, certifi ed applications, embedded royalty) and also has a number of key competencies that can be achieved (e.g. custom software development, independent software vendor).

As partners move through the levels of the programme, the benefi ts to the partner increase and can be a signifi cant cost saver and provide opportunities to grow deeper relationships.

URL: http://members.microsoft.com/partner/nz/

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Examples of Partner Programme Benefi ts:MSPP: Market Research

Market Research helps you identify market trends and market demands while expert columns guide you with information on various topics including business planning, software development, and marketing.

• IDC Research – IDC is one of the world’s leading providers of technology intelligence, industry analysis, market data, and strategic/tactical guidance to builders, providers, and users of information technology.

• Gartner Research - Gartner, Inc is a leading global research and advisory fi rm that helps customers leverage technology to achieve business success.

• Expert columns - Regular features written by industry experts in business planning, development and marketing to help your business succeed.

URL: http://members.microsoft.com/partner/asia/isv/planning/understandthemarket/default.aspx

MSPP: Microsoft Channel Builder

Microsoft Channel Builder is a worldwide networking and resource-sharing community where you can fi nd partners looking for new opportunities.

URL: https://partner.microsoft.com/global/40015789?PS=95000006

MSPP: Windows Market Place

Windows Market Place is a comprehensive shopping and download site that helps Windows customers discover, experience, and purchase partner products and software.

URL: https://partner.microsoft.com/global/40009802

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Embedded Royalty ProgrammeThe Independent Software Vendor (ISV) Royalty Licensing programme is designed for ISVs that incorporate Microsoft technology into their solutions for commercial distribution to their customers. It is appropriate for ISVs selling to large, small, or mid-market customers and allows them to resell Microsoft software at signifi cantly reduced pricing levels and offer a single point of sales and support for their customers.

URL: https://partner.microsoft.com/global/40012214?PS=3

Technical ConferencesMicrosoft run a number of key conferences through the year that allow your technical team to keep up-to-date with Microsoft technology – TechEd provides a summary of all of the key Microsoft products whereas other conferences focus on a few specifi c products. To see a list of related conferences visit the NZ Events website:

URL: www.microsoft.co.nz/events

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Appendix – NZTE Programmes

New Zealand Trade and Enterprise (NZTE) is the New Zealand government’s national economic development agency. Through their network of offi ces worldwide, New Zealand Trade and Enterprise aims to grow New Zealand’s economy by focusing on industries and sectors in which New Zealand has a long-term sustainable advantage and on businesses with high growth potential.

NZTE aims to achieve this by:

• engaging in activities that build business capability;• improving New Zealand’s business environment for enterprise and growth; and• increasing the international connectedness of New Zealand businesses.

NZTE offers a wide range of services and programmes applicable throughout the lifecycle of fi rms from start-ups to established groups of exporters. These include providing advice, training, mentoring, co-funding, and business and market development assistance.

NZTE also helps fi rms build alliances and develop strategic commercial relationships internationally that can provide investment in New Zealand businesses and access to international distribution networks, new markets, skills and technology.

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Appendix – NZTE Support Programmes (contd.)

Business Development and International Market Development Training and Business Development NZTE promotes access to the skills and resources that businesses need for establishment and growth – fi nance, technologies, expert knowledge and information. Needs vary greatly between businesses, from those at the early foundation stage to established companies competing in international markets.

Enterprise Training The Enterprise Training Programme (ETP) aims to up-skill owners/operators of small and medium-sized enterprises (SMEs) by offering a range of management training options to help develop and grow a business. Businesses start the programme with a one-on-one needs assessment from which specifi c training needs are identifi ed. Most training is delivered through workshops that cover topics including business planning, fi nance, managing resources, preparing for investment, marketing strategies, business systems and an introduction to exporting. One-on-one follow-up coaching is also available for workshop attendees.

Investment Ready Training Investment Ready Training workshops provide generic training and information about raising capital. These workshops aim to help business people and entrepreneurs learn about the types of fi nance they may consider to expand, diversify or commercialise a new concept and how they can access funding from investors.

Exporter Education The Exporter Education Programme provides existing and new exporters with the skills and advice to help them grow exports. Workshop topics include getting started in exporting, market entry strategies, planning for export success, tax issues for exporters, trade fairs, exporting to Australia, tendering and proposal writing, exporting online and developing your winning sales pitch. Businesses have the option of an initial export readiness assessment and follow-up coaching after workshops. A virtual advisor has been set up to answer exporting questions online and there are also online training modules available. For more information visit www.exported.co.nz

Escalator The Escalator service has been developed to address one of the main hurdles to growth – the lack of access to and understanding of equity/venture capital or strategic partnerships. The service is designed to assist business growth by providing innovative small to medium-sized enterprises (SMEs) and entrepreneurial New Zealanders needing capital to expand, diversify or commercialise a new concept, with skills and assistance to pursue investment opportunities. In the fi ve years to mid-2006, the Escalator service has successfully raised over $33 million and completed fi ve non-equity transactions for 45 businesses. For more information visit www.escalator.co.nz

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Incubators Funding and facilitation is available for business incubators to help them develop best practice in incubator management. The aim is to establish a network of incubators and ensure their long-term survival. In 2005, 157 companies were resident in incubators employing 743 people and earning revenues in excess of $27 million. More than 90 companies have graduated from incubators funded under the programme between 2000 and 2006. These companies have already raised almost $37 million in external capital to support their growth.

Enterprise Development Grants NZTE promotes access to the skills and resources that businesses need for establishment and growth – fi nance, technologies, expert knowledge and information. Needs vary greatly between businesses, from those at the early foundation stage to established companies competing in international markets.

• Capability Building component: Co-funding is available for businesses and entrepreneurs to undertake strategic business development, a feasibility study or marketing planning, employ specialised advice, or undertake NZQA-endorsed training. Up to a maximum of 50 per cent of the qualifying cost is available for individual or groups of businesses. Businesses are also able to apply for co-funding to engage an advisory board for a period of up to three years. Information and application forms are available on the NZTE website.

• Market Development component: Financial assistance is available for companies committed to and capable of offshore market development. This fund will cover up to 50 per cent of a company’s eligible market development expenditure that is related to developing an international marketing strategy in a new market or to undertake new activity in an existing market. Eligible activities include market visits, in-market representation, advertising/promotion/marketing collateral, exhibiting at trade fairs and events, and market research. All registration forms, information and application details are available on the NZTE website. Funding for this programme is limited, competitive and highly sought-after. For more information visit www.nzte.govt.nz/edg

Growth Development Co-funding is available to support high growth potential fi rms to purchase external advice and expertise, market intelligence and development services, to help them achieve their growth potential within a much shorter timeframe. Co-funding up to a maximum of 50 per cent of the costs of qualifying projects is available for individual or groups of fi rms to access new business opportunities, skills and expertise, innovation and new technologies and fi nance. The fund is accessible only for businesses that have clear and signifi cant growth potential and for which a development plan has been compiled with an NZTE client manager. One hundred and thirty eight companies received assistance through the Growth Services Fund in the 2004/05 year. For more information visit www.nzte.govt.nz/growth

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Biz biz is a specialist business information and referral service for start-up or established businesses. The biz website averages 12,000 visitors a month and the biz service dealt with 21,000 enquiries and made 90,000 referrals in the 2004/05 year. For more information visit www.biz.org.nz

Business Mentoring Business mentors New Zealand and company rebuilders: Both these organisations offer a free business mentoring service to qualifying businesses. For more information visit www.nzte.govt.nz/mentoring or call 0800 103 400.

Publications A number of guides and publications provide practical advice to help small and medium-sized businesses grow. For publications visit www.nzte.govt.nz/publications

E-business Guide Guidance for individual businesses on how they can obtain more value from information technology – a one-to-one advisory service is also available to ensure information technology meets the needs and capabilities of a business manager. The E-business Guide is online at www.biz.org.nz

Investment Facilitation - Investment New Zealand International investment promotion, market analysis and research, identifi cation of fi nancial assistance available to investors and aftercare of international investors in New Zealand. For more information visit www.investmentnz.govt.nz

Procurement Facilitation - Industry Capability Network The business unit that facilitates procurement opportunities for capable New Zealand companies both in government and in major New Zealand and Australian projects. In excess of 1,000 purchase opportunities per year are facilitated by ICN, through either the Government Electronic Tender Service (GETS) or ICN’s facilitation of major New Zealand and Australian projects. For more information visit www.icn.govt.nz

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International Market Development NZTE provides a wide range of services and information to help New Zealand businesses with their international market development plans. Through its global network of offi ces NZTE provides market intelligence and may undertake customised research for New Zealand businesses that have the capability to internationalise.

International Market Intelligence

New Exporter Information

A guide to exporting: A step-by-step introductory guide to the export process for businesses new to exporting.

Are you ready to export? An online self assessment that helps businesses decide if they are ready to export. For more information visit www.marketnewzealand.com/fi rststeps.

Exporter information tools: Checklists, ‘how to’ guides and practical information on New Zealand’s top international markets.

Checklists for exporters covering, for example, planning, pricing for export and guides to distribution agreements.

‘How to’ guides: a wide range of documents including information on selecting a market, working with agents and distributors and setting up offi ces in key export markets.

Country briefs provide snapshots of New Zealand’s top export markets.

City guides provide practical introductory level information, and advice on cultural issues for those planning visits to key markets. For more information visit www.marketnewzealand.com/exporterinfo preparing for new export markets.

Note: NZTE staff will assess your business plan to determine the services most appropriate to your needs. These services may include customised research such as:

• A regulations and/or compliance check to help you establish whether your product or service will comply with market entry regulations and standards.

• A market structure report typically including information that will help you determine the potential for your product or service in a new market, including different market entry channels and recommended next steps. For more information visit www.nzte.govt.nz/international

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Identifying a Buyer/Partner

Partner relationships: Customised research to identify a shortlist of prospective in-market partners that may cover customers, distributors and/or suppliers in a potential export market. Company check: Research on competitors or the credentials of a prospective business partner. This service is available in selected markets and the level of information available may vary. Intellectual property protection: Research into what processes and/or procedures you may need to undertake to protect your intellectual property, and where available, contacts for expert assistance in the market.

Trouble shooting: New Zealand trade representatives can be engaged to negotiate trade issues on behalf of exporter clients.

Beachheads programme: Accelerates the growth of New Zealand companies by linking them into global connections and supporting them to establish and expand their offshore operations. Beachheads operate in key locations around the world including Singapore, the UK, US, Dubai and Tokyo and more are planned to meet the increasing demand. For more information visit www.nzte.govt.nz/beachheads

Identifying New Opportunities

MarketNewZealand.com: MarketNewZealand.com is NZTE’s online trade enquiry system, enabling businesses with proven export capability to profi le their products and services to an international business audience. MarketNewZealand.com also provides relevant market information, online news and information on international events. For more information visit www.marketnewzealand.com

ProjectLink: An online subscription service advising of opportunities in Australia and the Pacifi c for engineering, marine, and building and construction businesses. For more information visit www.projectlink.co.nz

Monitoring export markets Development Link: Information on upcoming export opportunities arising from World Bank and Asian Development Bank programmes. Export awards: businesses that achieve outstanding results in their exporting activities are recognised through an annual awards programme. For more information visit www.exportawards.co.nz

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Suggested Reading

• Done Deals: Venture Capitalists Tell Their Stories by Udayan Gupta (Editor)

• Selling the Invisible: A Field Guide to Modern Marketing by Harry Beckwith

• Commercialising Innovation: a pocket guide to business issues that New Zealand based software developers need to consider by John O’Hara

• The Innovator’s Dilemma: The Revolutionary Book that Will Change the Way You Do Business (Collins Business Essentials) by Clayton M. Christensen

• Corporate Combat: The Art of Market Warfare on the Business Battlefi eld by Nick Skellon

• Crossing the Chasm: by Geoffrey A. Moore

• Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution by Geoffrey A. Moore

• High Tech Start Up, Revised and Updated: The Complete Handbook For Creating Successful New High Tech Companies by John L. Nesheim

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Documents

a successful software · service, resource and ﬁ lm scheduling, signage, web/call centre telephony, kiosk, customer loyalty, management reporting, EIS. Over 400 Customer Sites in