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Sweet-TALK: 1st Quarter 2005
CEO Corner |
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My column in the last Sweet-TALK issue briefly discussed the central strategy behind the acquisition of Avel-Tech, now part of Ortivus North America, as is the previous Sweet operation. In this column, I would like to touch on how this is working and what our plans are for the future. Frequently, companies make acquisitions in an attempt to solve problems. As a result, acquisitions are notorious for failing to live up to expectations, and often, fail altogether. In the case of Ortivus (formerly Sweet) acquiring Avel-Tech, we began with an organization that was operationally sound with over 1,500 customers in the US. To this, we added a powerful development and support operation (Avel-Tech), who provided a much needed new Computer-Aided Dispatch (CAD) application and a foothold in the wider components of Public Safety. With the experience in Emergency Medical Services (EMS) held by our Decorah operation, the advanced understanding of CAD in our Montreal operation, and great human effort, we were able to go to beta with a completely new CAD application on a new platform (Microsoft .NET) in six months. I do not believe this would have been possible for either operation without the relentless commitment of the other. So when I am asked by customers, vendors, competitors, industry pundits and my neighbors, “How is the acquisition working out?” - I can sincerely say “I have never experienced a better unification of companies.” As for future plans… we are again searching for solid businesses to acquire. We will stay within Public Safety (Emergency Response) because it truly is our ‘sweet’ spot. We are looking for businesses that offer our existing customers greater value from the investment they have made to date with us and which will encourage our customers to further expand their commitment with Ortivus. We seek companies not to relocate them out of convenience, but rather leave them where they are established because that is where the real value is - with the employees. I have heard on two separate occasions the question, “Does this mean Ortivus will ignore EMS in favor of Police and Fire?” The simple business answer is absolutely not. Indeed, if we had acquired Avel-Tech first, we would be seeking a Sweet next. The complimentary nature of the two operations is financially that compelling. The internal and well-documented plan of Ortivus is to assemble a solid mix of applications and operations, within the broad heading of Public Safety, which through foresight, sound business practice and commitment to the customer, become ever more central in the business operations of our customers. Presently, aside of acquisition events, our planning dictates our consideration of issues extending all the way out to 2009. The market is bracing itself for change. Not simply reimbursement, but security, support and possibly most of all, integration of multiple (if not multitudinous) applications. Microsoft and other vendors are pushing forward faster and faster as competition threatens corporate health. The near “think-speed” evolution of the World Wide Web is a good example, as is the success of Google. There is a business saying that goes “not all motion is necessarily forward” and another that states “if you are not moving forward, you definitely are falling behind.” I subscribe to both. When I decide to make the purchase of a cell phone, a dishwasher, a car or a PC for my sons, that is where I begin - moving forward. |
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