Executive Chairman Adrian Di Marco said the company’s ongoing commitment to its customers and power of one business model was allowing Technology One to maintain growth in the market.
“Technology One continues to win business against the multinational vendors because we own the customer relationship,” Mr Di Marco said.
“We sell a fully integrated, out of the box, solution to our customers, taking total responsibility for the software, implementation and the support. If a customer is unhappy for any reason, the buck stops with us and we fix it,” he said.
“On the other hand, our competitors, such as SAP, Microsoft and Oracle, continue to choose to sell their services and software through a Vendor/Reseller model which we believe is fundamentally flawed and not suited to today’s operating environment.
“There is no doubt that it has been a very profitable business model that has allowed our competitors to opt out of dealing directly with the customer, moving the costs and risks associated with implementing their software to a third party, the Reseller. However, these days the market is far more educated, and we are winning significant business from our competitors through customers who have been burned by vendors over promising and under delivering.
“We offer a totally integrated solution from marketing, sales, implementation to support – allowing us to deliver synergies across our business and lower the total cost of ownership for our client’s investment in our solutions over the long term.
“That’s a value proposition far more suited to today’s market.”
In the past 12 months, Technology One strengthened its position in the general commercial market with the signing of numerous high profile brands, including Wesfarmers, West Coast Eagles, Ramsey and Bourne, Royal Flying Doctor Service, Bing Lee Electrics, and Ed Harry Menswear.
The organisation also continued to assert its dominance in the local government sector, signing 15 new councils including City of Stonnington, Snowy River Shire Council and Frankston City Council. The signing of James Cook University in the higher education sector was a significant win, with Technology One now having won the last two deals to come to market in this sector in the past couple of years.
Technology One also gained traction in newer vertical markets, such as health, utilities, financial services and entertainment with the signing of companies such as Pearl Healthcare, Adelaide Airport Limited, Allco Finance Group, Film Australia Limited and Premier Media.
A major area for growth has been the New Zealand regional market – Technology One has signed a further 16 deals in this region in the past 12 months. This has been the company’s strongest year to date in the New Zealand market. The company signed major deals with high profile New Zealand brands including Todd Petroleum, NZ Automobile Associated, Pinnacle Group, Ministry of Defence, North Shore City Council, Far North District Council and Port of Tauranga.
In the wider Asia-Pacific region, the company secured the Whole of Samoan Government, Papua New Guinea Harbours, and in Malaysia, Nando’s Chickenland Delcom Services, Hijrah Holdings, and Khazanah Holdings Berhad.
A major area of success for Technology One has also been growth within its existing client base for the company’s integrated solutions. In the past 12 months, the company sold its HR/payroll solution, Local Government Rating and Property solution, Work and Asset Management solution and out-of-the box budgeting solution to numerous existing clients, who were looking to fully integrate their complete suite of business applications and reduce their total cost of ownership.
Mr Di Marco believes the company’s decision to develop fully integrated solutions for key vertical markets will be a strong selling point in the years ahead.
“Company’s are now looking for one solution for one vendor to manage their complete business requirements. Technology One has developed the intellectual property and R&D for a full suite of financial applications from financial management, to HR/payroll, supply chain, business intelligence and work and asset management,” he said.
“We have also developed a complete solution for the higher education and local government sectors to give us a competitive advantage in these markets.
“This decision has helped us record such strong results in the past 12 months, and will help position us for growth in the next few years.”
The company will announce its full year results on 26 August 2005.