TechnologyOne Contract Wins Continue In Challenging Environment
Technology One Limited (ASX: TNE), a leading Australian provider of enterprise business software solutions, is continuing to win new business in Australia and overseas despite the pervading gloom in the global economy.
Over the last six months, TechnologyOne has won new contracts with organisations such as the Queensland Department of Premier and Cabinet, the City of Melbourne, SEQWater, the Children’s Medical Research Institute (CMRI), Future Flow, Barwon Water and Reliance Petroleum.
TechnologyOne has also achieved additional product sales with existing customers, including Wotif.com, Bond University, Sunshine Coast Regional Council, the Salvation Army, Melbourne Water Corporation, the Australian Sports Commission, and government departments such as Department of Prime Minister & Cabinet and the Department of Innovation, Industry, Science and Research.
Executive Chairman, Adrian Di Marco, said that one reason TechnologyOne’s business continues to grow is that customers that have purchased the company’s products have been so happy with their investment that they are choosing to invest in the broader enterprise suite.
“We’re finding that once customers start using one product, they plan for an ongoing investment and purchase more of the TechnologyOne enterprise suite. TechnologyOne software is both easy to use and totally integrated, which provides ongoing business benefits for customers.
The contract wins also continue in other regions, with important new contracts signed with the Waikaraiki Institute of Technology and Lakes District Health Board in New Zealand.
The organisation’s United Kingdom operation is gaining increasing advantage in both the education and local government sectors. In February, TechnologyOne announced that it had won a contract with Scarborough Borough Council, its first local authority in the UK.
The UK branch is also building on its success in the education sector, signing a contract with the University of Hertfordshire.
TechnologyOne Executive Chairman, Adrian Di Marco said that TechnologyOne’s resilience in periods of economic uncertainty can be attributed to a strong customer base and a sound business model.
“We have a strong partnership approach and target markets that are traditionally less affected by economic downturns, such as government and higher education, which serves us well, especially in times of uncertainty.
In these difficult and economically challenging times, we are also seeing organisations come back to the market if they are not satisfied with their current ERP solution. Our significant investment in our new generation Connected Intelligence Enterprise suite, and our significantly lower operating costs over a 10 year period, is driving our success.
Mr Di Marco said that the benefits TechnologyOne Connected Intelligence enterprise software can provide to organisations is in reducing costs, streamlining operations, improving adaptability to change and providing better information for decision making. Because of this demand for TechnologyOne products is remaining strong.
“We’re finding organisations want more information about how software can bring business benefits. For example, we’ve seen the number of new business leads for our solutions almost double in the first quarter of 2009, with more than 200 new opportunities already identified.”
“While new prospects don’t always guarantee new business for the company, the robust number of opportunities already identified this year places us in a strong position for the future.”
Mr Di Marco said the company’s product innovation is also driving its success in sectors feeling the pinch from the global downturn.
“For example, the not-for-profit sector has reported a general decrease in revenue from donations in recent months, however organisations such as CMRI and Uniting Care (Connections) have recently purchased our new Customer Relationship Management (CRM) software solution to better manage donor relations and increase administrative efficiency in line with current economic drivers.”
TechnologyOne’s strong position in a market where many IT companies are struggling is in many respects due to its position as a dominant supplier to the local, central (NZ) and federal government sectors, and Mr Di Marco said that the organisation is increasingly penetrating the state government sector throughout Australia.
“The Government sector tends to be counter-cyclical, meaning that organisations are still willing to invest in business software solutions. This meant we were presented with a unique opportunity to continue our push into the Government sector, despite the economic downturn.”
“We have long known that federal and state government departments can benefit from our enterprise solution suite. We have tailored solutions, such as eMinisterials, to meet their needs and demands. The Government sector in Australia and New Zealand recognises the competitive advantage we can offer over our multinational competitors, with an R&D headquarters based in Australia ready to deliver timely upgrades to meet regulatory and compliance requirements.”