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Invest and Export - a roadmap to Alna's success stories. Tomas Milaknis, CEO, AB “Alna” Investor League, Oct-22-2002. Content. Introduction to Alna Where from good ideas come? Success factors for product investment Case story Summary. Alna: A Snapshot.
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Invest and Export - a roadmap to Alna's success stories Tomas Milaknis, CEO, AB “Alna” Investor League, Oct-22-2002
Content • Introduction to Alna • Where from good ideas come? • Success factors for product investment • Case story • Summary
Alna: A Snapshot • Leader in Value Added IT Services • ISO 9001:2000 certified • 2001 revenues of 24,9million Euro • Public company, 40% owned by foreign financial institutions, incl. European Reconstruction and Development Bank • Founded in 1989 • Employs over 200 people • Headquartered in Vilnius, Lithuania • Development sites in Vilnius and Kaunas
Export team • Software team consists of 70 engineers • Alna’s people in Finland and Australia on permanent assignment • Projects in 12 countries: • Australia • Brazil • China • Belgium, Finland, Germany, Italy, Netherlands, Sweden, and UK • Saudi Arabia • USA • Multiple expertise areas
The Way to Grow Alna’s Way: • Core Competence…….. • ………in Expanded Markets Acquisitions New products New services U.S.A. Lithuania The Baltic’s Scandinavia W. Europe Establishing Our Presence in New Markets
A Good Idea Comes From… • Corporate culture formed by company values… • Respect • Quality • Professionalism • Personal development • Customer orientation • Dynamics • Informal internal culture • Innovation
A Good Idea Comes From… • Initial personnel enthusiasm, resulting in… • ASC - Alnos Smegenų Centras (Alna’s Brain Center)- for innovative and informal Alna’s people • Greenhouse - For the gifted IT students • Radar- For the best ideas not to be lost
A Good Idea Comes From… • Executive support… • Timely executive involvement at the later stages brings valuable ideas into products During the last year Alna has developed 8 new products in the following areas: • Industrial design applications • Advanced search tools • Content management systems
Investment: from ideas to products • Process: • Screening of ideas • Preparation of the investment budget and marketing plan • Board evaluation / approval • Criteria: • Fits Alna’s strategy • Reasonable risk • ROI in < 2 years • Results: • > 50% of investment proposals were approved • Investment projects ranging from 4.000 to 210.000 Euro
Success factors • Expertise powerhouse … • backed up by over 230 certifications • year-by-year training budgets • technology transfer with partners • cooperation with universities • internal training
Success factors • Quality focus … • ISO 9001:2000 • CMM started Y2000, target – level 3 by 2004 • Company-wide unified project management methodology • Project tracking, version control and bug tracking systems • Substantial investments (~140.000 Euro Y2001-2002) • “Never stop improving” thinking … By applying CMM-based continuous software process improvement program, Alna is evolving towards a culture of engineering excellence.
Success factors • Product “-ization” experience … • 5+ years in product development • Full product cycle performed • Certification methodology • Licensing / marketing experience • Maintenance/support functions • Worldwide cooperation: • Documentation written in UK • Sales channels/distribution: UK, Germany, USA
Critical success factor WHERE TO SELL IT? All may be lost without appropriate sales channels!
Product Background • Created in 2001 • Team size: 4 full time people and support/marketing • Investment size: ~85.000 Euro • Worldwide distribution agreement with Bentley Systems • Product price: ~3000 Euro per license • Break point status achieved in Sep-2002 (took 12 months) • Competitors: • AutoCad platform: ACTRIX Technical, ElproCAD.. • MicroStation platform: TriForma for Electrical Systems.. • Standalone platforms: PCschematic Elautomation, Uni-Tool Automation..
Customers in the World 48 28 12 12 7 40 61 54 19 45 23
Customers by Industries Main Customers: • Banverket Huvudkontoret (Sweden) • ABB Transmit Oy (Finland) • Energex (Australia) • Transgrid (Australia) • Petroleos Mexicanos (Mexico) • CAE Systems (USA) • Siemens Westinghouse Power Corp (USA) • Rijkswerf Den Helder (Holland) • Spoornet (Republic of South Africa)
Closing up.. • Alna is an idea-oriented organization, basing success on: • Sound strategy • Innovative ideas • Timely and effective execution
Thank you Questions?