Since the late 1980s Gentrack has been creating specialist ERP software for utility companies and airports. Today, more than 150 customers in 25 countries use its products

August 22, 2013 Leave a comment

SPECIALIST SOLUTIONS

20 August 2013

By James Docking, CEO of Gentrack

Gentrack

Since the late 1980s Gentrack has been creating specialist ERP (enterprise resource planning) software for utility companies and airports. Today, more than 150 customers in 25 countries use its products. CEO James Docking comments on the company’s successes and challenges and why it is vital to have people in market who understand the local ways of doing business. Most of our business comes from the specialised and growing niche of utility billing and CRM software for energy and water utilities. Having secured the business of about 30 local utility companies, we expanded into Australia in 1994. Gentrack is now the leading vendor in water and aeronautical billing in Australia, and our presence in the energy sector is growing. In 2012, for the first time in 25 years, Gentrack’s revenues from Australian airport and utility customers exceeded those from New Zealand.Gentrack’s international growth has been the result of targeted sales activities across core regions where reforming utilities markets have presented significant opportunities. In Australia and the UK, we’ve focused on utility companies with an immediate need for our software.

The UK is our next big growth area in the utilities market. The recent addition of our first water company, Bournemouth Water, will see our London office expand to 20 staff by the end of the year.

Sales of our airport software account for around 15 percent of revenue, and we are actively pursuing new opportunities and beating large US competitors to key projects. We recently delivered systems to Pakistan’s 48 airports, and international airports in Hong Kong, Sri Lanka, Dublin, Finland and North America, including JFK and Newark Liberty.

Our company culture has really supported Gentrack’s international business growth. It’s based on a Kiwi ‘can-do’ attitude and we take this to our offices in Melbourne, Brisbane and London. Gentrack has a very open travel policy because we believe nothing can really replace face-to-face communication.

The challenges we’ve encountered have varied according to the sector and region we’re dealing with. For example, US utility companies tend to be more conservative and parochial than in other parts of the world. We learnt that you really need to look and sound American to gain their confidence, so when we push further into that market we’ll adopt a different strategy, either purchasing a US company or finding a US partner.

Gentrack software has been used to manage all sewerage billing in Malaysia and the electricity in Cambodia for 20-odd years so we have a lot of experience in Asia. It’s vital to have people there who understand the local ways of doing business. In some of our Asian markets, enforcing contracts can be extremely difficult, and we’ve had companies continue to use our product but refuse to pay fees.

We’ve transferred these learnings to the airports side of Gentrack. For example, in Pakistan, our airport customers make payments before each component is delivered.

Sales of Gentrack’s Airport 20/20 software will continue to grow around the world. Our next big expansion is into China, where we’re working with third parties to get a foothold in the market.

Ironically, one of our biggest struggles has been getting acceptance in New Zealand. It’s vital for us to have a good customer base here, but with our utilities products, we’re going head-to-head with high-profile US and European companies who tend to appeal to those who believe big and offshore is beautiful.

When it comes to our profile overseas, confidence is crucial. In places like the UK, the New Zealand Embassy and NZTE is doing a lot to promote the longevity and reliability of Kiwi businesses like Gentrack. As a New Zealand company taking on the world, we’ll take all the help we can get from these organisations.

Gentrack is a finalist in the ‘ANZ Best Business Operating Internationally — $10m-$50m’ category of the 2013 New Zealand International Business Awards.  www.gentrack.com

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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