Abstract
Technology One Limited has been providing deeply and much more comprehensive integrated business enterprise software solutions for more than twenty years. The company develops, market, sell, implement, and support the world with fully integrated software solutions. The solutions of the company are based on the leading edge, state of the art technology which is backed up by a substantial R&D program to ensure that the customers get long term Security.
The Company’s comprehensive suite of software solutions is normally integrated to provide organizations and institutions with solutions to manage their business needs. The integrated product suite consists of the following; Technology One Financials, Human Resource and Payroll, supply chain, Business Intelligence, Property and Rating, Budgeting, Works and Assets Performance and Planning in addition to enterprise content management and data works.
Introduction
Technology One Limited is a company that normally develops, sell, implement as well as supporting the world-class solutions which are mainly used by over six hundred corporations, government institutions, and large organizations located at Australia, Asia, New Zealand, the Pacific region as well as the United Kingdom. The company has from 1992 been making continuous profits returning a compound annual growth of about 30 per cent Net profit after tax.
The company has a number of offices all over Australia, Asia, New Zealand and the United Kingdom with over 450 people being employed throughout in these offices. Technology One Limited is rated to be one of the major providers of enterprise applications in both the Australian and New Zealand market. The major customers of Technology One Limited are large corporations, government institutions, universities and statutory authorities.
A survey conducted in Australia shows that about 15,000 people make use of Technology One Financials every day. In addition to this, about 50% of the universities and colleges in Australia are Technology One Limited customers and over twenty per cent of the Australian rates notices are mostly produced using the Technology One software. The company’s Connected Intelligence enterprise suite is a new generation and state of the art platform that normally redefines and usually sets new standards in the way applications of enterprise operate.
It is worth noting that Connected Intelligence (C I) enterprise suite is said to be one of the largest Microsoft NET projects which are undertaken in the world. The Technology One Limited results for the year that ended on 30th June 2007 showed a record profit before tax of about $ 19.8 million, a 22% increase. According to the chairman, the results met the market expectations that the company had set at the beginning of the financial year of between 15% to 20% growth. As the company continue to invest significant funds in the R&D program in addition to expanding the company’s products, geographical reach and other services, it will go to even greater heights.
Content
Stakeholders of Technology One Limited
The main objectives of the company are directed to the needs of the stakeholders. These objectives are aimed at delivering comprehensive integrated enterprise software solutions which have a positive and profound effect on the stakeholders’ experience. The company’s main objectives aim at providing to the stakeholders and more so to the customer’s exceptional service and taking total responsibility for every customer through developing, marketing and selling while at the same time implementing and supporting the company’s solutions. Secondly, it targets the key and vertical markets where the company delivers fully integrated enterprise software solutions.
The company also aims at delivering functionally rich solutions that work out with inbuilt flexibility and normally do not require code customization. Further than all these, the company has continually embraced new technologies as they become available to enhance the way the customers do their business. Lastly, the company employs an innovative team of people with conventional thinking and is empowered to make a difference in the company. The company uses triple bottom reporting. This means that the company carries out its analysis by expanding the traditional framework of reporting in taking into account both the environment as well as social performance in addition to financial performance. Technology One Limited has very many stakeholders but this report will highlight just a few of them.
Local Government Markets
According to the annual report of the year 2007, the local government has been a major market for the company with additional twelve new sites that were added in the year 2007. The commendable results of the company indicate that the market clearly embraced the rollout of the new property. That is Connected Intelligence technology and that the company has positioned itself to dominate this market. Some of the company’s customers in the local government include; Beaudesert Shire Council, Cardinia Shire Council, City of Casey, Gladstone City Council and Gold Coast Council. Other councils are; LG One, Warringah Council, Liverpool City Council in addition to Maryborough City Council and Whangarei District Council.
Financial Services Markets
The company’s products’ ability to integrate with the banking operational systems and other financial sectors in addition to providing information and strong performance analysis makes the Technology One an ideal fit for finance, wealth management and insurance organizations. Some of the company’s customers include; Elderslie Finance Corporation, Rubicon Asset Management Company, NIB Health Funds company and SAI Teys McMahon among many others.
Utility Markets
In comparison with other companies that offer similar services as those of Technology One Limited, it is the only enterprise vendor that is in a position to deliver a fully integrated solution for back end operations within the infrastructure and utility markets especially through the combination of the company’s Financials, HR and Payroll, rating solutions in addition to Works and Assets and property. This has enabled the company to have other customers like; Dampier Port Authority, Acciano Energy Oceania limited, Melbourne Stadiums Limited and Connect East Pty company among others.
Financial Performance and Situation
- Profit Margin=Net Income/Sales 7836776823= 1.02
- Net Profit Margin=Net profit after tax/Sales.=1478176823= 0.20
- Asset turnover =SalesAssets =7682365086 =1.18
- Return on Assets =Net income/Total assets =78367/65086= 1.20
- Current Ratio=Current Assets/Current Liability= 119618679= 0.06
- Divided Ratio=Total Liabilities/Total assets= 20774/65086 = 0.32
- PE Ration= Divideddiluted earnings= 3.75/4.88= 0.77
Strategies
Technology One Limited has had significant growth since 1992 especially in the delivery of consulting services to both existing and new customers. There has been a 28% increase in growth that has stemmed up from the existing customers more so in consulting fees from the previous years. This can be attributed to the high uptake by the existing customers of the new technology of connected Intelligence (C I). Due to the high demand of customers to use the new technology, they now want to move to the NET version of the company’s application and take the advantage of the advanced features that would deliver a meaningful and rich intuitive user workplace. All these achievements can be attributed to the major strategies the company has been focused on with an aim of satisfying the needs of the customers. This report will analyze a few of these strategies.
House of Products Business Model
There is a program that has been adopted by the company aiming at capitalizing on the portfolio of products. Behind this program is due to significant change that has been experienced by the company over the last six years. The company has undertaken a R &D program that has seen the company’s product range increase dramatically especially with the introduction of the new products. The company is one of the very few companies which can deliver true enterprise solutions in the world. Technology One has 6the capacity to make delivery of; Financials, Supply Chain, Works & Assets, Business Intelligence and Student Management Solutions. In addition to all these, it delivers HR & payroll, Property and Local government among many others.
Improvement of Methodologies
The new and dynamic business sales have demanded a sophisticated consulting level with larger and more complicated sales been made. Due to this the company has reviewed their Application Implication Methodology (AIM) and has implemented the methodology to its customers resulting in outstanding success. As a matter of fact, a review of this methodology was done by an experienced external project management consulting practice in a contested sales process that singled out the company’s methodology as the best method that satisfied the customers. These revised AIM consist of a robust project management structure that incorporated several Prince 2 standards of project management which are internationally accepted as one of the best practice guidance for project management.
Consulting Staff Increase
As the company’s software offering has continued to evolve, the need for a large staff has equally has increased as well. In the competitive job market, the company has been in a position to grow as well as develop consultant teams in meeting the increased demand from both the existing and new customers. This is a very important strategy in that the consultants are fully dedicated to the company’s existing customers and they are a distinct resource to those consultants who mainly work on new software implementations. Technology One Limited has placed a major focus especially on meeting the needs of the already existing customers and also attracting new ones. The chairman of the company has vowed to continue expanding the company’s group of consultants to meet the growing demand of the customers.
Customer Contact
This is yet another strategy the company has engaged in with an aim of satisfying the needs of the customers. The company’s consulting managers have recently undertaken an initiative in contacting the existing customers at a senior level of understanding the needs of the customers’ business in addition to obtaining feedback on what they can help the customers as their business thrives. With the company upgrading to Connected Intelligence, so many of the customers have now developed the usage of the company’s products and other services throughout their organizations and institutions thus resulting in increased customer contact and other additional users.
Service Delivery Teams
There has been a change in recent times in the company’s management structure. Recently the company appointed National Product Consulting managers, were selected because of their in-depth knowledge about the products thus will have a substantial positive impact on the company’s customers. The managers have a great responsibility across the consulting team, the support team as well as product service delivery team whose main role is meeting the demands of the customers. This team of managers have also the responsibility of delivering customer training, improved manuals in addition to focusing on developing the company’s consulting skills.
The size and experience of the Financials teams have remained as each state with the capacity to meet the requirements of the customers. The existence of this team in all the countries the company operates provides it with a depth of resources in every region. Other than the National Delivery Consulting Managers, the company has other members of the executive team that in clued among others; Operating Officers, Sales and Marketing Manager, Operating Officer New Business Development. This kind of structure will mainly facilitate not only the best practice across all the company’s products and geographies, but will further enable the company to look at further expanding opportunities to continue growing the company’s business.
External Environment
Technology One Limited has had a competitive environment with other companies that offer the same products and goods. However, it is worth noting that no single company has been in a position to compete favourably with Technology One Limited. This company has further established other offices in the United Kingdom which was opened in March 2006 and New Zealand and Asia. In the UK, the company has continued to build strong potential opportunities.
The company’s Financials has been received well with positive feedback on the company’s leading-edge functionary. However, the biggest challenge for the company has been to establish strong markets to demonstrate the company’s long term commitment to the UK although the company has secured at least three customers of strategic importance. The company also involves itself with external affairs that concern the community in which the company is located. The company has shown some committeemen’s to giving back to the community in which it operates. It has been involved in community-based services as well as educational organizations.
A good example was in 2006where the company’s staff ran an appeal for funds for the Salvation Army. The company has so far donated over $66,000 to the Queensland Royal Children’s Hospital. The company has also made some donations to other organizations including offering sponsorships to six children through world vision and an additional one child through Plan International. In addition to this, it is involved in local charity work like Lifestream Foundation which normally delivers sports and recreation programs for people who are physically challenged and intellectually disabled. It has also been involved in a number of sponsorships.
A good example is the Building Youth Technology Excellence (BYTE) Awards where the company was the major sponsor. This award is normally an educational Queensland initiative aiming at recognizing technological excellence in Queensland states schools. Kaitlyn Wright who was the 2004 BYTE Award winner has continued to work in the company’s Queensland sales and consulting team. The company has further supported the Queensland Department of Education, Training as well as the Arts, the showcase Awards for excellence in education institutions in addition to sponsoring Awards for excellence in innovations.
The company uses about $370,000 in grants. However, the company has continually faced different challenges. Securing additional staff to meet the ever-growing targets has been a problem. Other pressing issues include managing the changing issues that are associated with the new House of Products and also managing cost based in line with the company’s revenue growth.
Competencies and Resources
The excellence of Technology One Limited can be attributed to the competencies or the resources of the company. This is both in terms of the company’s management team and the strategies used to keep the company growing. The company has a strong board of directors supported by other heads of departments with their executive chairman being Adrian Di Marco with the help of four non-executive directors.
While the majority of the enterprise software vendors have given up, Technology One Limited has continued to thrive over the last twenty years as a leader of the enterprise applications market. The achievements of this company have been due to the ability to continually evolve its products as well as a business model in line with market demands and most importantly the changes in technology in addition to the company’s team capacity to respond with speed and agility to the company’s customers needs. The company has been listed as one of the best and most successful publicly listed software companies in Australia.
The company has ventured into Asia, New Zealand and the United Kingdom and has 12 offices throughout the Asia Pacific. The company’s resources include the 450 staffs who have contributed immensely to the success of the company. The companies thrive to continue achieving has led to developing other resources and competencies. This include; extending the company’s product breadth and depth for the customers’ needs. To meet these needs, the company has developed a fully integrated Business Intelligence, a solution of performance planning as well as a Customer Relationship Management solution and developing and maintaining alliance partnerships among others.
Furthermore, the company has harnessed opportunities of its House of Products business model. In achieving this, the company has created a post of a General Manager with the focus as well as strategy, systems and culture to be a market leader where each of the product managers delivers integrated marketing sales, R&D and implementing the strategies for the company’s products to meet the customer’s expectations. The company has future expectations and targets. The Company will venture into New South Wales, Victoria and the ACT where it will be seeking new customers.
Conclusion
Technology One Limited is one of the largest software vendors in the world today. The company has continued to grow since 1992 with an annual growth of 30% Net Profit after Tax and 27% Revenue. The Company has ventured into New Zealand as well as the Asia Pacific and the United Kingdom with future expectations of venturing into the United States and China. The company’s results for the year that ended on 30th June 2007 showed tremendous results of $19.8m equivalent of 22% profit before tax.
The companies divided went up by 10% to 3.75. According to the chairman of the company, the results met the market expectations. The company has a brighter future as it continues investing in the R&D program in addition to expanding products, services as well as geographical reach among others. The achievements of the company can be attributed to organizational changes and better strategies and managerial skills.
Bibliography
Technology One Limited, Annual report, 2007.