Archive for August, 2007

Swearing will not work


Like other blogs, I receive lot of spam. Recently, I received two comments from someone angry with two names I mentioned on a blog article. Whilst I have no objection of authorising negative comments and comments that disputes with my analysis, I do have a problem with rude comments. Unfortunately, I cannot reach the person due to not receiving the correct e-mail address. If you are listening, please improve your comments and I will be glad to authorise them. The reason I took the steps to write this is that I believe s/he had a valid point to raise. Please also ensure you give a correct e-mail address, so that we can engage in a conversation off-line if needed.

Popularity: 13% [?]

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OB10 #8 - Ready to be acquired!


 

According to VentureCast, a production of Library House, one of the most accessed companies recently is none other than OB10. The company profile from VenturePedia (another production of Library House) can be downloaded for £50 from here. As you know company’s current financial backers include Cargill Ventures, Fleming Family & Partners and Lynx Capital Ventures.

One of the key reasons for increased interest by predators is the recent announcements by OB10. Among these are the press releases about teaming up with GXS and Abbey/Santander. At least, I met one predator (I know he will dislike the use of this term - and he is really a nice guy) who is talking to OB10 and others in this space.

As far as I know, the last round of funding was completed in Q4 06 (press release on 24/10/2006). The additional capital raised at that time was $13.6 (£7.3) million from FF&P Private Equity, the private equity division of Fleming Family & Partners, which was one of OB10’s major existing investors and became the Company’s largest individual shareholder after this round of investment. The funding was mainly for geographical expansion and ongoing development of range of products and services. At the time Jamie Gunn, CEO of OB10 stated:

 ”The fact that a group as illustrious as FF&P should choose to underpin our growth in such a substantial way is a great compliment to OB10 as a company. With the support of our investors, we have delivered exactly what we set out to do over the last 18 months. That includes the continued expansion of our sales force and channel in the face of sustained market demand, and the consistent performance of our sales teams in all territories.”

So 10 months after the announcement, have they delivered? On profitability, perhaps not. On revenues, improving. On sales force expansion, yes - understood to employ over 60 sales/support personal, which is seen as a key differentiator by number of OB10’s partners. Most of them being native language speakers, this diverse sales/support personal gives the ability to deploy OB10 network across multiple supplier bases simultaneously for large corporate clients. In fact, OB10 now gives guarantees for meeting supplier enrollment targets. I am not aware of anyone else who does the same. This has been a key reason for winning some of the most recent large contracts.

In the same press release, David Donnelly, CEO of FF&P Private Equity stated:

“e-Invoicing certainly offers an attractive business proposition, since it enables companies to cut the cost of handling invoices, while also improving their on-time payments and providing much greater control over cash flow. After seeing the OB10 network continue to grow in both membership and transaction volume following our earlier rounds of investment, we feel confident that additional funding at this stage will support even greater growth”.

OB10 Chairman David Newlands, who invested substantially again at the time stated:

“Without a doubt, this latest investment is a direct result of OB10’s recent successes and progress since its last round of funding. The confidence that existing investors have in the company will not only enable OB10 to develop its business even further, but also negates the need for OB10 to tap into external markets, as the company’s investor base boasts an incredible strength and breadth of its own.”

OB10 is no doubt one of the most interesting EIPP service providers based in the UK. They have achieved significant competitive advantage due to high investment and some of the well respected financial backers in the industry. Their continuing trust on the company at a time of continuing losses is vital for the survival and continual growth of OB10. OB10 is gambling on the fact that through sheer global presence and targeting larger buyers with improving supplier roll out times, they can win at the end and be profitable. The signs are positive. Though it is hard to see how long OB10 will remain independent, given the recent acquisitions of Harbor Payments and Xign by financial institutions. Holding on for the highest possible valuation at this point seem to be the best option.

 

References:

Popularity: 28% [?]

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FreeAgentCentral # 2 - Imminent Launch


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Ed Molyneux, CEO of FreeAgentCentral, the Freshbooks for UK, supported by Dennis Howlett pinged me to say that FreeAgentCentral will come out of Beta on 18th September 2007. He is offering a good deal for Beta Testers. Here is the deal:

  1. 60-day trial account for less active Beta testers
  2. 180-day trial account for active Beta testers

Ed Molyneux Dennis Howlett

He is also giving a chance for less active Beta testers to redeem themselves (e.g. users like me). All you have to do is respond to following 2-minute feedback questionnaire:

  1. Can you summarise in one sentence (or in haiku form, if you prefer) your overall impression of using FreeAgent so far?
  2. What is your favourite feature?
  3. Conversely, what single thing do you dislike the most?
  4. If you could add one important thing, what would it be? 
  5. Would you recommend FreeAgent to your freelancer friends. Why / why not?
  6. When your free trial is over, will you be subscribing?
  7. If you have an accountant, have you mentioned using FreeAgent to them, and have they been interested in working together with us?

Ed is also offering to personally come over to your house and help with tidying, childcare or whatever you missed out on, if you did not manage to complete the questionnaire in 2 minutes. What a way to get attention?

Good luck to Ed and the team.

References:

Popularity: 8% [?]

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Sourcing Innovation - The Future of Sourcing


If you are interested in the future of sourcing and procurement technologies, tune in to Michael Lamoureux’s Sourcing Innovation on 6th September 2007 for the second annual Sourcing Innovation Series, which will run for 2 weeks. 

According to Michael:

One year ago today, the first post of the first annual Sourcing Innovation Series, which focused on the future of sourcing, hit the blog-sphere.  With cross posts from leading bloggers in the sourcing and procurement space like Jason Busch, Tim Minahan, David Bush, Dave Stephens, and Charles Dominick and from forward thinking professionals, which included Kevin Brooks, John Martin, and Doug Hudgeon (a former leading blogger in the space), the series was the first of a number of cross-blog series that turned out to be, in least in my view, a great success.

In the past, I have promised Michael of participation, but failed to deliver at the end. Rather than give false promises again, the best I can do is to let my readers know about the series, Which I have done here.

Popularity: 16% [?]

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End of holiday season


Apologies for been silent. Just returned yesterday morning from 10 nights in Ireland. We spent 3 nights in Dublin and 7 nights in Co. Kerry. Highlights included a visit to the Guinness Storehouse. Thoroughly enjoyed driving in Ireland, especially the “Ring of Kerry” and “Gap of Dunloe“. Will post some pictures later. Did not get a chance to do any work even though I had my laptop with me. Managed to read a book (Panic at the Bank) from start to finish - a massive achievement. Used the opportunity to rediscover my family. It has not been easy for my family since 2002. First the MBA, and then ebdex (Phase I). Must win at the end! Catch you later.

Popularity: 7% [?]

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CheckFree #1 - Fiserv to Acquire CheckFree


CheckFreeFiserv

Over the last year, we noticed two key acquisitions in the EIPP and Payments space, these being purchase of Xign by JP Morgan and purchase of Harbor Payments by American Express. Recently, I had lunch with a US Company looking for an acquisition in the UK. And now CheckFree is to be acquired by Fiserv. This clearly shows the importance and the increasing maturity of this segment. So according to the press release:

Fiserv, Inc. (NASDAQ: FISV) will acquire CheckFree Corporation (NASDAQ: CKFR) in an all-cash transaction valued at approximately $4.4 billion, and the CheckFree shareholders will receive $48.00 in cash for each of common stock.  

CheckFree is not strictly an EIPP solutions provider, but a significant player in the Payments space from provision of ACH solutions to transaction process management. On the other hand, Fiserv provides information management services to the financial and insurance industries. The combined organisation is expected to deliver wider range of products and services with the ability to bring new solutions to the market faster.

Few facts from the press release:

  1. Fiserv serves almost 6,000 clients and all top 100 banks in the USA.
  2. CheckFree serves 21 of the top 25 financial institutions in the USA and process more than 1 billion transactions per year.

According to Jeffery Yabuki, President and Chief Executive Officer of Fiserv:

“CheckFree’s industry-leading payment and Internet banking capabilities will significantly accelerate our strategic transformation, extending our service platform to the largest financial institutions. This combination allows us to deliver the best available solutions to all of our clients to enhance growth today, and into the future. An important objective of the transaction is to tightly integrate electronic bill payment and settlement capabilities with our core account processing and risk management solutions to create a unique value proposition unrivaled in the marketplace today.”

According to Pete Kight, CheckFree Chairman and Chief Executive Officer:

“By joining our complementary technology and capabilities with Fiserv and its unparalleled footprint, this new combined entity will broaden Fiserv’s offerings to customers worldwide. In particular, it will significantly accelerate the delivery of next-generation services to financial institutions and their customers. CheckFree’s broad range of offerings will also enable Fiserv to round out its ability to deliver solutions that address the challenges of an evolving U.S. payments landscape and help facilitate the growth of the managed accounts industry.”

Kight will join Fiserv Board of directors. So what are the synergies of this transaction and the justifications?

  1. More than $100 million in annualized cost savings.
  2. More than $125 million in annualized revenue synergies.
  3. Pro-forma revenues of $6 billion

Who would be the next to be acquired? Could this be a UK company? My views about the “Significant 4″: May be on another day.

Popularity: 24% [?]

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PrimeRevenue # 1 - Introduction


One of my regular readers, who happened to be a competitor to PrimeRevenue pinged me recently to enquire about my views on the recent announcement of partnership between PrimeRevenue and Morgan Stanley. Before I give my viewpoint, for consistency, I believe it is useful to first introduce the company in here.

PrimeRevenue is a leading company in Supply Chain Finance (SCF). According to my new friends, Paystream Advisors:

The combination of PrimeRevenue?s technology and services makes it an excellent choice for organizations seeking to accelerate cash conversion cycles and compress working capital requirements. We are impressed with the company?s evolving vision and solution functionality.?

PrimeRevenue introduces its SCF platform as a community of global 2000 buyers, their suppliers and world-class financial institutions. The core competencies seem to be in technology, working capital expertise and enablement services; three ingredients vital for successful delivery of SCF solutions.  Let’s have a quick look at their technology platform:

The technology platform allows the buying organisation to upload an electronic output from its Accounts Payable (A/P) system with approved payable date, amount, etc. Supplier is given the ability to log onto the platform to view approved payment details. Suppliers can then use payment approvals to negotiate early payment through financial institutions. PrimeRevenue charges a funding fee for this service. A remittance advice is issued to suppliers as part of the service. At the end of the normal payment terms, the buying organisation remits payment to its central clearing account, and the platform issues Electronic Fund Transfer (EFT) instructions, which distribute payments to each supplier accordingly. The platform allows payment cycles to be reduced to as little as 48 hours utilising Virtual Private Networks (VPNs).

Now, just imagine the power of this platform, if it could be offered securely without VPN technology. Then imagine adding an electronic document exchange solution. And the new solution would start to look like:

  1. Supplier organisation prepares the invoice on its back-office system.
  2. The web based electronic document exchange (Hub) that the back-office system is linked to senses the completion of a new invoice, collects it electronically and translates it to Hub’s internal data format.
  3. Now the invoice can be run through a pre-configured set of criteria set by the Buying organisation.
  4. Once the pre-set criteria is met, the invoice is translated to Buying organisation’s data format and electronically delivered to the Buying organisation’s back office system.
  5. Buying organisation approves the invoice after comparing it with applicable purchase order, either within its back-office system or within the Hub if the purchase order was sent through the hub.
  6. Approvals details are automatically informed to the supplier through the Hub.
  7. The invoice financier is automatically notified of approval of the invoice and planned payment dates, as the financier has access to transaction status in real time.
  8. Supplier is now presented with number of options, one being “get paid now”. If chosen, supplier receives a percentage of the payment (discounted or factored).
  9. And so on…

That was how ebdex saw its future - ebdex Document Exchange.

In addition to the technology, PrimeRevenue is well experienced in working capital solutions, working with supplying and buying organisations to offer optimum solutions to meet their specific requirements. This is further strengthened by an end-to-end implementation programme.

Unfortunately, PrimeRevenue does not seem to have an office in the UK. Wonder whether they have any UK clients! Over the next few weeks, I will do at least two more articles, these being:

  1. Review of partnership deal with Morgan Stanley - Most likely I need to establish contact with them to find out more
  2. Review what my friends at Paystream Advisors have said in 2006.

As I intend to take vendor analysis seriously, I also need to think of:

  1. Structure for the blog articles on vendor analysis.
  2. Analysis Report that would combine number of refined blog articles.
  3. How to make money…(heard about a great forthcoming service called edocr! Can’t wait to see it happening)

Popularity: 11% [?]

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Google # 2 - Analytics: Most used keywords


Here are the most popular keywords used by visitors to my blog from 21/01/07 to 06/08/07.

EIPP 352
OB10 267
SAP 141
American Express 129
e-invoicing 124
Ariba 103
Causeway 67
Oracle 66
Harbor 65
Abbey 60
Bottomline 49
Xign 48
Burns 48
JP Morgan 41
Accountis 30
Basware 19
Transcepta 16
Deskom 13
Albany 15
Tradex 11
Version One 6
Esker 5

Do let me know if anyone would like to see a full report for any of above keywords.

References:

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Popularity: 27% [?]

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Blogger conversation on EIPP #1 - Jason Busch rocks


I have been ranting about EIPP for 16 months now. Perhaps worth listening to few other folks about what they have to say about my favourite subject:

Michael Lamoureux of Sourcing Innovation

David Bush of e-Sourcing Forum

Jason Busch of Spend Matters

Tim Minahan of Supply Excellence

I need to find bit more time to read some of the above.

Popularity: 11% [?]

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James Governor # 1 - Learning from a Pro


james3james2james1

I have been looking for an opportunity to use these three pictures I took of James when we both attended SAP Sapphire 07 in Vienna in May 07. James is a cool chap well respected in the software industry for his no-nonsense vendor analysis. So, why am I talking about James now?

I am in the process of re-launching ebdex, capturing everything I am doing and planning to do over the next couple of years with the exception of edocr (and other startups I might incorporate), which is clearly a separate business and legal entity. I plan to model ebdex on RedMonk and Paystream Advisors (as I said before).

RedMonk (I only know James) appeals to me due to number of reasons:

  • They pride themselves on openness and transparency
  • Has a simple model - 3 packages: Supporters, Sponsors and Patrons
  • Controversial: not scared to say how it is

Now, I must admit, I have not followed their activities that closely yet, a situation I clearly need to rectify. James also referred me to his series on “how to become an analyst”. Here are the links:

Am I an analyst? I think so. Am I a great analyst? Perhaps not! Am I going to give it a shot? You betcha!

I got interested in financial analysis of companies when I started my Executive MBA programme at Manchester Business School in Autumn 2002. As part of the MBA, I have done my fair share of analysis of companies both from a strategic as well as a tactical perspective, and always wanted to do it for real some day. ah! then I started to blog, which was in itself a type of analysis, but very much unstructured.

So, how am I developing my thought process with respect to new ebdex? The company will offer services in three areas:

  1. Corporate Advisory
  2. Vendor Advisory (incorporating vendor analysis)
  3. Event Management

Vendor analysis could be paid or unpaid. Paid will ensure a programme of activities with a particular vendor with engaging discussions - a more structured approach, giving accuracy to content. Unpaid, means lot of interpretations, which in some cases, could be damaging to the analysed vendor. There is no way to avoid this, if the vendor analysed does not want to engage in a conversation. In any event, the content (analysis) will be independent.

Vendor advisory on the other hand will be completely different, this could be reviewing their existing strategy, as was the case with Causeway’s Tradex, or anything else, e.g. a US vendor venturing into Europe (been talking to one), or an American predator (he was a nice guy) looking for acquisitions in Europe (ah! that would be telling). Simply, delivering what vendor clients require.

The core competencies, for all three service areas will be on:

  1. P2P - Purchase to Payment lifecycle
  2. S2C - Supply to cash lifecycle
  3. SCF - Supply chain finance

Unfortunately, there is another area that does not quite fit with any of the above, i.e. technology startups and web 2.0 consultancy. Need to find a away to connect them with above.

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Popularity: 14% [?]

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The plan beyond Causeway! Thinking loud…


So what is the general plan after Causeway? Ideally, I like to spend 50% on fee earning work and the remainder on projects. So what are these projects?

  1. edocr - we will soon be looking for 100 volunteers to test the alpha version. If you are interested in helping us, please register your interest at http://www.edocr.com, and we will get in touch with you as soon as the Alpha version is ready. I have an excellent team working with me on this project. The other three guys are Rhys Jones, Founder of Accountis and Mike Carter and Chris Haslam, both Directors of Ixis.
  2. Blogging and evangelising - ah! nothing unusual. This is very much connected with fee earning work.
  3. Events management - OpenCoffee Manchester, NW StartUp 2.0 and Mashup Manchester.
  4. Incorporate third startup on carbon footprint and CSR - not much movement since original idea.

So, how would I like to spend 50% on fee earning. Simple, reviving ebdex. Call it ebdex II. But this is not about developing ebdex Document Exchange again! Instead offering a consulting led value proposition. Two models are helping me to refine my thought process - in most cases documenting what I was already doing anyway, these being the RedMonks (James Governor) model and Paystream Advisers (Henry Ijams) model. And I just started building the new website using Drupal, which I plan to complete during my vacation. Early thoughts are:

  1. Consulting - Corporate Advisory and Vendor Advisory
  2. Products - Resell to meet client requirements 
  3. Services - From initial concept of identifying a need to full commissioning and support thereafter
  4. Knowledge Base - P2P, S2C, SUF to start with + Analyst Reports
  5. Vendor Base - Completing the Wiki I started sometime back
  6. Events - Independent and Vendor Events

All documents produced by ebdex will be offered through edocr.

So what are the challenges with ebdex II approach?

  1. Need team/associates - do let me know if you know anyone who might be interested
  2. Need strategic partners - Both from products and service fronts. From service front, who better to team up with than Paystream Advisers?
  3. Need financial backing
  4. Need to find some clients

Its 02:22 in the morning, and let’s hope I will not regret what I have written in the morning. Good night!

Update 1:

No regrets so far! Oh! By the way, I also provide consultancy in areas such as blogging!

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Popularity: 12% [?]

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Causeway Technologies #7 - Time to move on!


My current contract with Causeway Technologies will soon come to an end. By then, I would have spent four months with Causeway’s Tradex, asking awkward questions and getting people out of the comfort zone. Tradex now has a tactical team as well as a strategic team. The tactical team is led by Dave Gilchrist, Managing Director of the BuildingRegister, whilst the strategic team is led by Phil Brown, CEO of Causeway with support coming from Tim Cole, R&D Director. Tradex is the brain child of Tim, and he was influential in securing the partnership with Lloyds TSB in earlier days. Tradex has an exciting time ahead with Dave’s telesales team kicking in to expedite trading partner roll outs. Sales effort will continue to be driven by Duncan Speight.

Hopefully, some of the partnerships I initiated would come to fruition in the near future. One thing I failed to achieve is to get the Tradex website up and running. It has taken significant resources, yet no closer to going live than when I started. Such a subjective exercise!

I wish the team the success they deserve!

Popularity: 10% [?]

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Abbey’s Supplier Payments #2 - The A Team


Whilst there has been much talk, I believe Abbey is the second company to offer a supply chain finance solution in the UK after GMAC Commercial Finance, which uses Deskom. Between the two propositions, I believe Abbey has the best chance of making an impact. I have not heard or seen much publicity of Deskom and GMAC’s joined proposition recently and wonder its degree of actual success beyond the marketing hype.

Let’s review the team responsible for delivering the expected results for the Santander Group.

 Marcus Hughes, Financial Supply Chain Solutions, Abbey UK Corporate Banking

Marcus is a specialist in financial supply chain solutions, covering financing, cash management and e-invoicing. Marcus spent 20 years in banking and trade finance, working in UK, Spain and France, as well as other international roles. This experience has recently been complemented by five years at a payments and e-invoicing solutions provider, giving him a valuable understanding of how technology can deliver business objectives. Having recently joined the Santander Group and Abbey UK Corporate Banking in London, Marcus is now helping to globalise Santander’s extensive product capability in supply chain finance, which in Spain, Portugal and Latin America, is generally known as Confirming. Marcus graduated with an MA from Cambridge University and is fluent in Spanish, French and Italian.

Obviously, Abbey does not want to declare where Marcus gained his experience from, but it is very well documented. Yes, he was with Bottomline Technologies.  Being fluent in Spanish will no doubt have helped communications with UK based team and Santander. I plan to meet Marcus sometime in September 07.

Whilst Marcus run around promoting Abbey + OB10 proposition, who is setting the overall strategy for the UK corporate banking?

Picture of David Goucher, Abbey David Goucher, Abbey UK Corporate Banking

So what do we know about David:

David joined Abbey in 2006 with responsibility for business development within the new UK Corporate Banking business. He also leads the international development and expansion of Santander’s financial supply chain solution business. David has previously worked at RBS, Standard Chartered and Chase. Prior to joining Abbey, he was head of strategy and business development for RBS in New York.

So what is next? What about the announcement of signing up the first client? When will RBS bring a similar solution to the market? Is Rhys John’s loosing his touch? Hope not, I am counting on him for the success of edocr.

References:

Popularity: 26% [?]

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Causeway Technologies #6 - No. 1 in UK Construction - Congratulations!


 

Congratulations to Causeway Technologies for becoming the No. 1 software house in the UK Construction industry with the acquisition of Elstree Computing Ltd (ECL). According to Phil Brown, Causeway has achieved No. 1 position in three fronts, these being: headcount (circa 130), revenues (pro-forma £13m) and customers (over 2000). With this acquisition, the split in terms of acquisitions vs. organic growth is circa 50:50. When Phil and I met in early Jan 07, I learnt the revenue targets the company was trying to achieve. By the rate the company is growing, thanks to Phil Brown and Peter Nagle, it is hard to see how this target can be missed. I won’t be surprised if one or two further acquisitions are announced before end of this calendar year. That will truly be a remarkable achievement.

According to the press release, the acquisition creates the industry’s first end-to-end supply chain platform that helps manage every process from design to build to facilities management. ECL is a specialist supplier of cost advice and management software for cost consultants, and model based 3-D design software for infrastructure design professionals. According to Philip Brown, Causeway?s CEO comments:

?We are delighted to announce the acquisition of ECL. With their long history of supplying software and services to construction professionals, ECL?s solutions provide a highly complementary fit with our existing offerings to contractors and their supply chains. We now have 150 people in the Causeway family dedicated to creating the first end-to-end supply chain ?platform? for the construction process that will embrace all stakeholders?.

Charles Barber, Founder and Chairman of ECL comments:

“The combination with Causeway is good news for ECL and our customers. We?ve long felt that the leading software providers need to pool their respective innovations and energy to the betterment of the construction industry, and we are therefore very excited about the possibilities presented by the combination of Causeway and ECL?.

If Causeway is No. 1, where is Coins (Construction Industry Solutions Ltd)? And more specifically, what are they up to? Coins reported revenues of £11.7m in 2005 with 112 staff, declining from their highest in 2003 (£12.8m and 99 staff). Coins has clearly spread their business outside of the UK with notable presence in the USA. Their recent acquisitions include US based Shaker Computer and Management, Inc.

Lack of up to date publicly available detailed financial accounting makes the comparison more difficult!

References

 

Popularity: 21% [?]

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Mashup* is coming to Manchester


Here is a clip from the last mashup* event in London. Mashup* Manchester first event will be held on 18th October 2007 at Sun Microsystems offices in Sale. This is a paid event. Please register through here. Click here for attendees list. The Manchester series will take a gentle approach. First session will be on “web 2.0″. Confirmed speakers:

  1. David Terrar - Editor of Blognation - UK Enterprise. Founder of D Squared C Ltd among others. Renown blogger on enterprise 2.0
  2. Simon Grice - Founder of Mashup, etribes and Midentity - Another renowned speaker.

Will do a proper introduction once the full speaker line is confirmed.

Update 1:

Had to delete the video - it started to drive me crazy, not to mention the impact it had on my reader base - here is the link if anyone is interested in watching it.

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Popularity: 12% [?]

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