WELLINGTON INNOVATION PROFILE 2014
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Contents Case studies Foreword Welcome Innovation Methodology Case studies Get connected Acknowledgements
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CARNIVAL MOBILE DATA TORQUE GARAGE PROJECT GOODNATURE GREENBUTTON HARMONIC ANALYTICS IKEGPS INSPIRED JEWELLERY GROUP LOOMIO MAGRITEK MATAKINA TECHNOLOGY (VOLPARA SOLUTIONS) PERTRONIC PHOTO HIGHER (AVENIR HOLDINGS LTD) REGEN STANSBOROUGH SYL SEMANTICS VEGA INDUSTRIES VENDING MANAGEMENT SERVICES LIMITED
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Photo: Brian Logan
Foreword Fran Wilde Chair, Greater Wellington Regional Council In recent years, an exciting cluster of information and communications technology (ICT) and manufacturing businesses has emerged in Wellington. These flourishing sectors are built on a long history of ideas and creativity in Wellington. Our culture supports the innovation that is key to ensuring that we can produce even more enterprises with global reach.
we are implanting in our business sector and young people the depth of knowledge needed to nurture business growth. This requires a collaborative approach amongst the businesses themselves, our education, training and research sector and publicly funded support services. This collaboration is growing increasingly steadily in Wellington.
numerous beaches, parks and wilderness areas close to our urban centres.
Across the region, businesses are taking their goods and services to the world’s markets using new ways of marketing and with redesigned business processes enabled by the technologies now available. These enterprises are what we need to help us grow the regional economy and continue to build our reputation as the high tech capital of the South Pacific.
But Wellington is not just developing its own entrepreneurial talent. It is gaining an international reputation as an attractive place to base a company, as businesses discover that they can move their operations here, take advantage of the local talent and business ecosystem, yet still stay connected with global business networks. We have robust physical infrastructure and can provide excellent space for accommodation.
The case studies in this Innovation Profile are examples of the diverse businesses already flourishing here and there is also information about the support available for those considering the opportunities Wellington has as a location. The leadership of the region is strongly committed to the growth of business and we welcome talent and entrepreneurship. If you are interested in moving here, we would love to hear from you.
I am convinced there will be more stars in the future and we all want to ensure that the platform for their development remains robust. There is strong commitment to ensuring that
Although our population is small compared with other international cities, Wellington’s intimacy means strong networks have developed to support our smart thinkers – and they are able to remain globally connected.
Importantly, people working in Wellington have unsurpassed access to a myriad of lifestyle and recreational opportunities offered by the
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Welcome Wellington is an internationally competitive region led by innovation, driven by technology and focused on exports. It is home to thousands of innovative businesses across many sectors. It is with great pride that I introduce you to our first Innovation Profile (2014) which showcases 18 diverse businesses from the fast growing ICT and high value manufacturing sectors. 6
Our ICT sector is thriving – it’s a connected and collaborative scene. Here, we have the highest concentration of web-based and digital technology companies in New Zealand. Wellington also has the most New Zealand companies in the 2013 Deloitte Technology Fast 500 Asia Pacific index, and Wellington companies in the TIN 100 – an index of New Zealand high tech businesses – grew close to three times faster than any other region. High value manufacturing is making a major contribution to the region’s export earnings
in areas such as communications equipment, engineering components and biomedical equipment. Design-led companies with a commitment to R&D have become world class producers in niche areas. We have developed an interactive map online to highlight the location and distribution of ICT and high value manufacturing businesses across the Wellington region. It shows the distribution of different types of innovation, the location of innovative ‘hot spots’ and includes links to a series
of case studies about 18 diverse and innovative businesses. Some of the 18 businesses are small, others are multinationals. Some are startups, others were established over 40 years ago. Some can be found in the heart of Wellington’s CBD, others are based in Porirua, the Hutt Valley and the Wairarapa. While some businesses may be familiar, many until now have been well-kept secrets. Each study illustrates how a business is innovative in one or more ways. Together the case studies
show how innovation has been successful in solving problems for: individuals; private businesses; not-for-profit organisations; tertiary institutions; and government agencies – in New Zealand and around the world. These business leaders also point to the many connections and collaborations which have helped their innovations fly. In essence, the case studies highlight the many unique advantages of being based in the Wellington region: its culture of innovation; a small-scale city; proximity to government;
and diversity of cultural events and outdoor attractions. We hope that the Innovation Profile will inspire more local businesses to innovate and grow, and motivate those from outside the region to consider Wellington as a great place to live, work and do business. Gerard Quinn CEO, Grow Wellington
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Innovation Over time, innovation has come to mean different things to different people. It is a word often used to describe something new. But since new doesn’t always equate with better, our view of innovation is an idea that creates value based on the OECD’s definition and four types of innovation* noted below:
Product Innovation A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics.
Process Innovation A new or significantly improved production or delivery method. This includes significant changes in techniques, equipment or software.
Marketing Innovation A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.
We have developed an interactive map online to highlight the location and distribution of ICT and high value manufacturing businesses across the Wellington region. It shows the distribution of the four different types of innovation, the location of innovative ‘hot spots’ and includes links to a series of case studies about 18 diverse and innovative businesses. Each case study included in the Innovation Profile shows how each business has been innovative in one or more ways. Whether a business is focused on designing new products, developing new technology, combining research with practice or creating new ways to reach its customers – it is generating ideas that create additional value. In many cases, our region’s innovative businesses are creating this additional value for customers in niche markets all over the world. Taken together, the case studies are representative of the diversity and strength of Wellington’s culture of innovation. Our first Innovation Profile focuses on the diversity, distribution and density of innovation in the ICT and high value manufacturing sectors across the Wellington region.
ICT
High Value Manufacturing
Organisational Innovation A new organisational method in business practices, workplace organisation or external relations.
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*OECD/Eurostat (2005),Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data, 3rd Edition, The Measurement of Scientific and Technological Activities, OECD Publishing.
Methodology In order to select the limited number of businesses featured in this year’s profile, we created a comprehensive database of over 900 businesses across both sectors (ICT and high value manufacturing). This was based on our own information and that supplied by other local business support organisations. It was complemented by data gathered by two students working as research assistants through Victoria University of Wellington’s Summer Research Scholarships programme. The database of 900 businesses was initially reduced to 300 by identifying those businesses which were highly innovative. By then identifying businesses which were leading their sector through innovation, 300 businesses were narrowed to 50. We then enlisted the expertise of an independent panel of representatives from our region’s innovation and business communities.
The panel included funding organisations, universities, business consultants and investors. For example: • • • • • •
Callaghan Innovation New Zealand Trade and Enterprise (NZTE) Victoria University of Wellington Massey University Deloitte NZ Investors
From 50 businesses, the independent panel selected 18 (nine from the ICT sector and nine from the manufacturing sector) to feature in the Innovation Profile.
The 18 businesses are simply a representation of the huge number of innovative businesses across the Wellington region. The case studies show how the businesses are innovative in different ways, vary in size, export to a range of niche markets and are located between central Wellington, Porirua, the Hutt Valley and the Wairarapa. They illustrate the wealth of local experience and breadth of expertise available in our region. We look forward to expanding the Innovation Profile in future years to include many other innovative businesses which make an invaluable contribution to our region.
Each business is: • Headquartered in the Wellington region • Innovative in one or more ways (product, process, marketing,organisational) • Export focused
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Case studies
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Mobile marketing empowers big brands CARNIVAL MOBILE
Some brands have come to realise that by investing in mobile marketing they can effectively own their own marketing channel. Carnival Mobile’s co-founder Cody Bunea sees it as a compelling alternative to the big budgets needed for TV commercials and print ads. “It’s not like putting a billboard up then guessing how many people saw it. Mobile marketing is highly targeted and everything it achieves is measurable.”
In 2008, Cody (Carnival’s chief technical officer) and Guy Horrocks (CEO) realised that too many global brands were missing out on mobile marketing opportunities because they weren’t committing to ongoing analysis and engagement with their audiences.
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“To be successful, apps need maintaining and users need to be tracked and engaged with regularly. There are so many cross-promotional opportunities that come with mobile marketing too.” The entrepreneurs were once partners in Polar Bear Farm, the first iPhone software development company after the iPhone 1.0 was launched in the US only. Demand for their apps rocketed as people outside the US got their hands on jailbroken phones. The cheeky leaders of the underground app market were told by an Apple employee at an Apple developer conference that half of Apple wanted to shut Polar Bear Farm down while the other half was running its software.
Their new venture Carnival now has 100 branded apps to its name and 17 staff between its New York, Wellington and Auckland offices. On a mission to empower big brands, it has also built a powerful mobile platform for brand owners to analyse their app users and target them by geographic region, levels of loyalty, type of engagement or device, or software version. This tool aggregates all of a brand’s users in one place, which means brands can send text, photos, videos and links or interactive content such as contests, coupons, sweepstakes, or polls to highly targeted groups of users. The company’s growing stable of clients is US-based and includes CNN, TIME magazine,
Cody Bunea
2008
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Coca-Cola and DreamWorks. After its first capital raising campaign, Cody was excited to attract “dream investors including Google and a team of branding experts and social media pioneers from around the world”.
Cody sees the engineering of Carnival’s products in Wellington, away from the day-to-day noise of Silicon Valley and its US clients, as a great advantage. “We can tinker away here without boundaries.”
R&D grants from the Ministry of Business, Innovation and Employment and Callaghan Innovation have enabled Carnival to spend valuable time developing new products.
Carnival’s sales and account management team is based in New York, so working in a different time zone has worked in the company’s favour too. “We can turn things around in what looks like
www.carnivalmobile.com
lightning speed because we’re at work while New York sleeps.” Cody really values Wellington for its startup and collaborative culture. And its proximity to ski fields for snowboarding. “Doing business from Wellington means we get the best of both worlds, without having to be on a plane every day. We’ve got to be happy with that.”
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sector
ESTablished
Building tax systems for developing countries
20?? innovations type
employees
DATA TORQUE Traditionally, tax collection systems print a stack of letters to notify taxpayers of overdue payments and the money rolls in. But what if a country doesn’t have a reliable postal system? And what if most taxpayers don’t have computers to receive notifications online? Or bank accounts to make payments? Developing cutting edge systems that could be configured to manage the challenges of developing countries is something Data Torque has specialised in for many years.
Raymond Marshall
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Starting out in 1996 as a small generalist software development company, Data Torque now has 35 staff, an office in Africa and 90 percent of its clients offshore.
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It has become a specialist developer of world leading tax management systems for customers throughout the Pacific, Africa and the Caribbean. Its innovative products and systems enable countries to collect tax, manage customs and register vehicles. Data Torque’s facilities mean taxpayers can complete these tasks online or via their mobile phone. Operations manager Raymond Marshall explains that working on a project in Africa opened up the potential of paying tax by mobile phone. “Only 20 percent of people there had bank accounts.” He says using mobile phones is an easy way for people to comply with their tax obligations. Payments can be tracked and notifications and reminders can be sent via text messages. Tax compliance increases dramatically as a result.
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“Our wide variety of clients means that sometimes we’re involved in taking a developing country from having nothing by way of systems to something, whereas in other countries we’re providing advanced functions for existing systems,” says Raymond. Getting transparent systems in place and training staff are important steps to keep the systems operating as planned. “It’s hugely rewarding to help our clients collect revenue to grow the country and make a difference to its people.” Data Torque is grateful for the support it’s received through grants, technology advisors, forums and clients. With a research grant from Callaghan Innovation, the company was able to step back and spend valuable time developing new functionality for offshore customers. “The New Zealand Treasury and Inland Revenue Department as well as tax revenue departments offshore have offered us their expertise, NZTE has
www.datatorque.com
made connections to donors such as NZ Aid and AUSAid, and we have good working relationships with organisations such as the International Monetary Fund and the Pacific Tax Advisory Forum.”
Raymond explains that being based in New Zealand’s political nerve centre, is very important. He insists that the quality of IT staff in Wellington is also higher simply because of the experience many developers gain from working with Wellington’s government agencies. “More importantly, our team wants to live here so they end up being a part of the company for much longer. “There are always challenges, but recently winning the contract to build a tax management system in the Bahamas is pretty exciting stuff. And we’re doing it from Wellington.”
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Brewery’s experimental approach winning over world GARAGE PROJECT
Many breweries, craft or corporate, develop a range of beers, brand them consistently and distribute them to bars, restaurants and retailers. They are available all year round. But what if a brewer prefers to make beer that hasn’t been made before? They don’t know what it will taste like, what it might be called, what its label might look like, how and where it might be launched, and who might buy it. Pete Gillespie, brewer and co-founder of Wellington’s newest brewery the Garage Project, has chosen experimentation over certainty. And local beer lovers have come to expect, and appreciate, the surprising results.
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After working in Sydney, Pete’s plan was to start a brewery in Australia with a cellar door for onsite tastings and sales. But after a timely visit to Wellington, he and business partners Jos Ruffell and Ian Gillespie (Pete’s brother) found an old petrol station to rent in Aro Valley.
Six months later they opened their nanobrewery (50 litres) which Pete confesses was “more like a home-brew kit on steroids”. The Garage Project didn’t want to be “just another craft brewery” and it’s clear why. “We wanted to have the creative freedom to experiment, and have fun.” They challenged themselves to make 24 beers over 24 weeks. After launching a new beer every week, they sold far more than expected.
Their willingness to experiment not only led to a cult following but also attracted interest from investors. The brewery’s most recent expansion (to 2,000 litres) means they can produce larger volumes to satisfy the increasing demand. Innovation is evident from tank to tap: ingredients can be mango, seawater, chocolate or fish; beer names include Pils ‘n’ Thrills, Trip Hop, Aro Noir, Umami Monster, Burning Globe, Pernicious Weed; and because every beer has a different story, every label features a different illustration and design. The cellar door attracts curious passersby and committed converts. “We get all sorts of people coming in. Not everyone wants to drink in bars. We learn a lot from our customers who drop by for a bottle, a tasting or a chat.”
Pete Gillespie
2011
The company, which set out to create a house of brands loved locally and respected internationally, has already produced over 100 different beers, with some ending up in Australia or as far afield as Norway. Loyal locals are often seen lining up outside the cellar door in anticipation. And the World Beer Cup recently awarded the Garage Project a
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www.garageproject.co.nz
silver medal for its Cockswain’s Courage Double Barreled Porter.
in particular, just walk out on to the street and chances are you’ll find them.
Pete is sure that “Wellington has more than its fair share of innovative people; its creative culture draws them in”. He’s relieved it doesn’t take him one and a half hours to get to a meeting, and jokes that if you want to talk to someone
“We got the brewery with cellar door up and running after six months of planning in Wellington. The same idea proved impossible in Australia after three years. Good ideas are possible here, everyone is really supportive.”
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Trapping pests cleanly and efficiently GOODNATURE Every country faces the challenge of managing pests to conserve its land, protect its endangered species and ultimately restore biodiversity. New Zealand is no exception, with possums, rats, stoats and feral cats amongst its major predators. While working with the New Zealand Department of Conservation (DOC) in 2002, industrial designer Robbie van Dam, observed the laborious and expensive establishment of a traditional trap network using devices that only killed one stoat before needing to be reset manually. Robbie sat down with fellow industrial designers Craig Bond and Stu Barr and together they thought “there has to be a better way”, and so Goodnature was founded.
Many countries had already banned the use of poisons to control pests, and inevitably more would follow.
Goodnature’s team focused on inventing a trap which not only reset itself automatically multiple times, but was toxin free and met the highest of international humane standards – a trap that could be used all over the world. After initial funding from DOC in 2005, the company now employs 10 staff and ships its innovative traps around New Zealand and to 18 other countries, including Australia, the US and a number in Southeast Asia and South America.
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The traps are powered by a small canister of compressed CO2 which allows them to reset automatically multiple times (12 times for possums, 24 times for rats and stoats) before the canister needs replacing. The pest is lured into the trap by a highly attractive smelling paste before a piston strikes the animal’s head and kills it immediately. The animal drops to the ground and the trap resets itself. While the company’s first trap was developed to kill stoats, the company has applied its innovative design to a range of traps which target possums, rats and feral cats. Grey squirrels in the UK and mongoose in Hawaii are also on Goodnature’s radar.
www.goodnature.co.nz
Stu Barr, Craig Bond and Robbie van Dam
The traps are lightweight and won’t kill anything they’re not designed to kill. Their simple design makes them easy to install and safe for small land owners to use (without anyone getting their hands dirty). They are also scalable for large conservation authorities and community groups that look after tens of thousands of hectares. The New Zealand-made traps have significantly reduced the number of times someone needs to visit a conservation area – from 18 visits per year to two. And because Goodnature’s traps reduce the cost of labour, remaining budgets can be allocated to more traps (covering larger land areas) resulting in lower pest numbers, allowing more native species to survive and biodiversity to flourish. Robbie explains that being based in Wellington has helped build a strong connection with government.
“It’s pretty handy being able to walk down to the Director General’s office at DOC. And living 40 minutes from a local pest’s natural habitat and five minutes from Wellington airport means testing and field work anywhere around New Zealand or the world is easy.”
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A supercomputer at the push of a button GREENBUTTON Having 10,000 rendering jobs on the go was common for Scott Houston when he was Weta Digital’s chief technology officer. However, rendering a single scene of The Lord of the Rings that featured 84,000 orcs and 14,000 digital horses, within a very short time, was not. Scott knew it was a massive computational task, existing servers were at full capacity and the film’s completion date was immovable. Scott proposed two options: build a new, multi-million dollar data centre in downtown Wellington or ask director Peter Jackson if he’d mind going without a few orcs and horses.
Scott Houston and Dave Fellows
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The new data centre was built in two weeks and The Return of the King was released on time. Scott recalls that “it seemed a waste to see the super-sized data centre sit idle for three years until the next film needed it”. Realising that other businesses needed extra processing power for short periods of time too, Scott left his job in 2004 to start GreenButton.
2004
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www.greenbutton.com
Angel HQ was “absolutely frightening but totally worth it”. It helped secure the once-fledgling company’s first funding before New Zealand Venture Investment Fund provided them with seed funding. Grow Wellington led GreenButton to Callaghan Innovation for valuable R&D grants, and NZTE helped develop a marketing strategy to launch the company’s innovation in the US.
“It’s a great place to do business and attracts talent from all over the world. We are proud to share Wellington with some of the world’s most inspiring technology leaders – Weta Digital, Trade Me, Xero... People are doing world class things from here and the world is taking note.” In May 2014, Microsoft bought GreenButton and will integrate its services into its public cloud service Azure.
Thanks to cloud-computing, data can now be stored and accessed remotely via the internet. Scott explains, “We got started before the cloud, and have evolved to take advantage of it.”
Partnerships with Microsoft and Hewlett Packard allowed GreenButton to solve licensing issues and expand globally. With clients such as NASA, Boeing, Disney and Pixar in the US, and others in 86 other countries, having a US-based sales team was essential. “We needed to look and feel like a US company even though we knew they loved our Kiwi ways.”
He confesses that putting himself in front of the Wellington region’s angel investment network
“We were born, bred and funded in Wellington,” says Scott.
He found an innovative way of calculating the time and cost to fast-track the rendering of a file based on its size.
A customer could click on a green button (found on the menu within various software programs) and the file was automatically transferred off-site to GreenButton’s super computer for speedy processing. Customers could then get on with other work, without any downtime.
Despite having a new employer, Scott is quick to confirm that GreenButton’s Wellington staff of 18 is happy to be holding on to its office with a pool table in the capital’s creative Cuba Quarter. “And we’re still only a plane ride away from San Jose.”
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Data science keeps New Zealand running HARMONIC ANALYTICS An international client of data science company Harmonic Analytics recently suggested that New Zealand and statistics go together like Switzerland and banking. CEO Phil Shepherd agrees that “New Zealand is well resourced with really good data science expertise and technology�.
His Wellington-based company Harmonic has developed the skills and resources to optimise the life cycle of an asset – be it the national grid, kilometres of water pipes, pavements and roads, telephone networks or air traffic control systems.
Phil Shepherd
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Ongoing analysis and management of these assets is essential not only for the large scale organisations in the telecommunications, utilities, finance, agriculture, transportation and government sectors but also the many New Zealanders who rely on these services every day.
2000
Harmonic’s insights allow its clients to plan for the future, reduce costs, mitigate risk and ultimately keep their customers happy. It all began in 2000 when Phil was involved in a project that brought together New Zealand universities and businesses to establish how long the electronics behind Telecom’s copper network would last. When the problem was solved, Phil realised that data science could solve similar problems for businesses the world over. Harmonic’s team of 17 staff, including data scientists and software developers, has since collaborated with almost every university in New Zealand and is always on the lookout for their top graduates. Examples of the company’s work abound. Helping an industry training organisation establish how
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much funding is needed to train x number of apprentices over x years (to meet the needs of a growing building industry). Working with a city council to establish when water pipes are likely to need replacing or expanding, at what cost, and when roads and pavements need repairing. Building a tool for a telecommunications company to manage its inventory of spare parts. Whatever the sector or challenge, Harmonic’s expertise helps its clients in New Zealand, Australia, Japan and the US preserve assets and solve other complex business challenges such as the retention of customers and rostering of staff. “We take a long term view and in some cases that means 100 years. By analysing an organisation’s assets we can make forecasts so it’s prepared for the future, even if events beyond their control occur.”
www.harmonic.co.nz
Phil explains that “arming clients with the information they need moves them from a reactive to proactive mode. In many cases, it helps them sleep at night, literally”. Having grown up in Wellington and spent many years working overseas, Phil is quick to claim Wellington as home. While Harmonic has an office in Auckland too, he is happy to be based in New Zealand’s capital. “It’s a creative and diverse community with a liberal perspective on the world. It’s also a great place to raise a family.” He’s inspired by successful companies which have chosen Wellington as their home, including Weta Digital, Xero, and his favourite comedy duo The Flight of the Conchords. “There is a spirit of ‘we can take on the world from Wellington’. It’s fantastic to feel a part of that.”
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Hand-held tools measure up with single ‘point and click’ IKEGPS Buildings, trees, overhead wires, gas tanks, power poles, road signs… While some of these frequently measured objects are within reach, many are not. Measuring such assets using conventional tools can be time-consuming, costly and unsafe. In the late-1990s ikeGPS founder and engineer Leon Toorenburg was employed to drive around Kenya surveying radio sites. In between stops, he had spare time on his hands and couldn’t help but think there must be a better way to locate and measure distant targets. His solution in the mid-2000s was an innovative combination of hardware and software that could measure, from a single photograph, targets up to one kilometre away.
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Constantly refined, ike’s handheld devices feature a 3D compass, digital camera, laser range finder, GPS and mobile computer. Given the many tangible benefits of ike’s products, its customers around New Zealand and the world are hooked for good reason. The lightweight devices are efficient – a single ‘point and click’ in the direction of a target captures a significant amount of data so measurements and models can be made. They save time compared to conventional methods of measurement. They allow people to stand in a distant and safe location while getting the measurements they need. They are accurate – it’s possible to know an object’s true size. And the data collected is verifiable.
The company prides itself on solving big problems for niche markets. Electric utilities companies in the US are currently on its radar – its 160 million power poles are audited annually against legislated safety standards.
Without ike, the alternative means sending someone up every single power pole while someone else records the measurements – a very costly exercise. Ike’s innovative technology has been taken up by a raft of private and public organisations: energy companies; defence and intelligence organisations; city councils; emergency responders in disaster zones; public safety groups; insurers; architects; builders; and engineers.
Glenn Milnes
2003
CEO Glenn Milnes explains that a relationship with its first and biggest customer, the US Army Corps of Engineers, has been invaluable, as has its relationship and global trademark agreement with Fortune 500 company General Electric. “Both connections have validated our ideas and given us credibility,” Glenn says. These wins have helped ike attract venture capital through No.8 Ventures, funding from US private equity investors and grants from Callaghan Innovation and NZTE.
The company’s growth has seen it establish a sales and marketing office in Colorado while its research and development team calls Wellington home. The fast growing high tech company, which recently listed on the NZX, is looking to increase its staff to 50 by the end of 2014. With 99 percent of customers offshore, ike’s team travels a lot, but for Glenn it’s a small price to pay.
www.ikegps.com
“Many of us have lived in other cities around the world – I know I couldn’t go back to the dark days of one hour commutes to work.”
Ike finds it easy to attract the world’s best researchers and software developers to Wellington. “The fact that companies like Weta Digital, Xero and Trade Me are based here is proof that Kiwi innovators can make a difference to the world from Wellington.”
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Creativity and craftsmanship behind jewellers' global success INSPIRED JEWELLERY GROUP Twenty-three-years-old and newly married with a large mortgage, Ian Douglas started a small jewellery gallery and workshop in 1981 in Kelburn, one of Wellington’s more affluent suburbs. Madly ambitious, his dream was to build “the best jewellery store in New Zealand”.
Working as a retailer and designer by day and craftsman by night, the business grew and so did his ambitions. He decided he wanted to build the best jewellery store in the world. Jewellery has changed a lot since Ian founded The Village Goldsmith. There are now manufacturers in India and China with thousands of staff
producing huge volumes of high-end diamond jewellery for sale all over the world. While some people in Ian’s position might see such developments as a threat, he sees them as great opportunities. “Those big manufacturers are aiming for vertical integration as we have, but they don’t have the design or prototyping expertise we do, so they come to us for that.” Ian believes that anyone can compete on price but “when a design resonates with a customer, we know we’re on track”. He attributes the company’s international reputation to the exceptional quality of creative talent in New Zealand. “Every design starts with a hand drawn sketch.” He deliberately
1981
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recruits architects, artists, graphic and industrial designers to ensure there is a breadth and depth of design skills across the business. His global ambitions are well supported by business partners Chris Benham (CEO), Christine Douglas (COO), a team of 22 staff in Wellington and customers all over the world including China, the US, Hong Kong and India. The boutique and innovative design and manufacturing business has recently evolved into The Inspired Jewellery Group which includes The Village Goldsmith (its flagship store in Wellington), Inspired Jewellery (its specialist international brand), and Wilshi (its brand
www.theinspiredcollection.com
which allows men to propose with a temporary engagement ring before a couple chooses the perfect ring together). Ian says there is an upside to being distant from its international markets.
“Most countries in the world are constrained by their history and tradition. That’s not a recipe for innovation. It’s in our Kiwi character to be different.” Adapting to suit the needs of different markets has been fundamental to the company’s success. Visits to new markets with trade commissioners via NZTE help them make connections they wouldn’t otherwise have. “We always do our homework first – some countries have traditions and customs that mean we need to rethink almost everything.” In China, building strong relationships with government is important. In contrast, Ian jokes that “in India, it’s more important to understand cricket”. Ian says there is no better place than Wellington. “It’s the simple things. I walk to work every day – I couldn’t afford to live so close to work in New York or London. We rely on graduates from Wellington’s world class design schools. You see people you know around town – it’s a very open, creative, collaborative and connected place, and full of interesting characters. For all those reasons, we’re happy to call Wellington home.”
Chris Benham, Christine and Ian Douglas
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Collaborative decision-making tool improves democracy LOOMIO Even in democratic countries like New Zealand, most economic and political decisions are made by a select few, even if at times the public are consulted. Politicians and policy-makers, boards of directors, CEOs and senior management teams all make decisions which affect a huge range of people. But Richard Bartlett, Vivien Maidaborn and other co-founding members of Wellington cooperative Loomio, believe that many decisions can and should be made more collaboratively. Vivien insists that “there are people in leadership roles all over the world making bad decisions every day. Letting others in on the process can only result in better decisions and outcomes for everyone�. Richard Bartlett and Vivien Maidaborn
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Motivated by New Zealand’s Occupy protest movement, Loomio recognised a need for people to make decisions together without being in the same place.
2011
In 2011, it developed a user-friendly, collaborative, decision-making tool online so that more people could have a say in decisions that affect them personally. Designed initially for groups driven to maximise their social impact, Loomio has been taken up by government and NGOs, small businesses, student campaigners and activists. Wellington City Council recently used Loomio to develop its alcohol management strategy for the city. It enabled a diverse range of people from bar owners to emergency services staff to contribute – busy people who might not attend traditional public consultation meetings. “The internet has been successful at connecting one person with many people, Facebook for instance. But we want to connect many people with many other people,” Vivien says.
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Transparency is everything at Loomio. Its platform is built using free and open-source software, and any user is required to put their name to their ideas and opinions. Richard explains that “the system works because it’s based on trust. It’s about people feeling accountable for decisions they make – not hiding from them.” He points out that “by engaging stakeholders from the start, a broad range of needs can be considered and potential outcomes can be tweaked along the way.
“It’s not like a survey or poll. It’s a meaningful conversation between a diverse range of people who really care about an issue. When a final decision is made, there is momentum behind it. “Yes we want to change the way decisions are made in the world,” Vivien says, “but one step at a
www.loomio.org
time. We do a bit, learn a bit, change a bit, do a bit more. R&D is part of our every day.” The fledgling collective feels quite at home working alongside other startups housed by social enterprise network Enspiral, not far from Wellington’s waterfront. Richard and Vivien are quick to highlight the many unique benefits of being based in New Zealand’s capital. “It’s a small town really – we’re only two phone calls away from most people we want to meet,” says Richard. “We also learn a lot from being close to government which uses and tests Loomio often”. Vivien adds, “It’s easy to attract people to Wellington – it has become a youth technology centre. People wanting to be part of a horizontal management structure can find their place here. And it’s an easy city to bike around!”
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Powerful, portable scientific equipment MAGRITEK Wherever they are in the world, whether they are in industry or universities, scientists are ultimately interested in measuring what they’re dealing with – what they’ve made, changed or discovered. And after trying something new, they need tools to measure what they’ve done and therefore what they need to do next.
Applying the same magnetic resonance imaging (MRI) technology used for humans, such as in brain scans, the university spin-out company invented portable, robust and compact devices that scientists could use wherever they were to find out “what they’ve got”.
But some scientific measurement equipment is too expensive and often only available in special laboratories rather than in the factory or the field.
Understanding how a chemical has changed, analysing a core sample from an oil reserve or measuring the composition of olive oil are just some examples of how Magritek’s MRI and nuclear magnetic resonance (NMR) systems are used in universities, and the oil and gas, pharmaceutical and food industries.
When commercial equipment to measure sea ice in Antarctica didn’t stand up to the environmental conditions after day one, Magritek’s founders identified a problem that needed solving.
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CEO Andrew Coy explains, “By bringing the instrument to the sample, researchers can get better results on many levels.” The portable devices are convenient, easy-to-use and offer improved quality control. Magritek’s innovative technology currently allows its customers in 55 countries to work faster and more efficiently from their own benchtop or in the field. From its start in 2004, the high tech company knew that developing products for export markets was essential. Being close to its customers in the US and Europe is important. Following a successful collaboration with a similar company in Aachen (Germany), they and Magritek merged. Magritek now has offices in Wellington, Aachen and San Diego (USA).
www.magritek.com
Magritek’s strong academic heritage has been a major factor in its success. “It’s given us credibility when raising capital, recruiting staff and attracting new customers,” Andrew says.
Andrew Coy
The late New Zealand scientist and professor Sir Paul Callaghan was one of Magritek’s founding inventors; Massey University and Victoria University of Wellington both invested in the startup; and Callaghan Innovation has funded some of Magritek’s research and development projects. Andrew insists, “New Zealand’s education system is world class. There is technology and know-how here but we need to get better at commercialising research so we can solve problems for more people around the world.” Wellington has proven to be the perfect match for Magritek’s innovative team of scientists and salespeople. “To be the best in the world at what we do, we need to attract the world’s most talented people. They not only want to work with the world’s best companies but they also want interesting things to do outside work. They have a lot of cities to choose from, but Wellington is a vibrant city with its creative culture, mountain biking, access to native bush and clean air. “We love living in Wellington and can’t imagine living anywhere else.”
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Increasing early detection of breast cancer MATAKINA TECHNOLOGY (VOLPARA SOLUTIONS) Breasts are made up of many kinds of tissue. The higher the proportion of dense tissue in a breast, the higher the chance of cancer being left undetected since dense tissue and cancer look similar on a mammogram. Knowing this, pioneering technology company Matakina has developed a solution for the benefit of millions of women around the world.
Its world leading breast imaging software increases the accuracy of information about breast density so radiologists can make better clinical decisions and therefore detect breast cancer earlier. Company founder Ralph Highnam has been interested in the subject of breast density since finishing his PhD in quantitative breast imaging at Oxford in 1992. Ralph Highnam
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Mātakina – a Māori word meaning insight – alludes to what the company’s software (Volpara) does. It automatically reads mammograms to calculate true
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measurements of dense tissue inside a breast. Radiologists can then be informed of the potential risks of cancer and decide if it’s necessary to carry out more extensive examinations, for example an ultrasound, following a mammogram.
Ralph strongly believes that women have the right to know their breast density so they can make an informed choice before being sent on their way with an all clear letter after a mammogram. He is well aware that “women put aside one day to have a mammogram so that day is our best shot at detecting cancers early”. He insists that “if their breast density means they need further tests, those should be done on the same day. They might not come back next week or next month.” Over recent years, there has been an increase in demand from women wanting to know
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their breast density (especially in the US where changes in legislation have supported women’s right to know). There has also been an increase in concerns over the effect of radiation from mammograms. Since the dose of radiation can only be made patient-specific once a women’s breast density is known, Matakina has been able to develop technology that allows radiation levels to be monitored accurately for each and every woman. The innovative software is in high demand from breast clinics all over the US and Europe, and Matakina has grown to a staff of 17 in Wellington and five between the US, Bangkok and the UK, with more to come. Connections have played a major role in the company’s success so far. Matakina’s directors and chairperson have been able to raise funds via
www.volparasolutions.com
their personal and professional networks, and the firm works alongside a world class team of experts including academics in Toronto, Nijmegen (the Netherlands) and Oxford. It is also well supported locally by researchers at Massey University in Wellington and the Bioengineering Institute at the University of Auckland. After starting-up, Matakina was assisted by Grow Wellington and grants from Tech NZ. Ralph explains that the proximity to like-minded people in Wellington is really valuable, as is having easy access to local specialists (such as for intellectual property advice). “We were born global but love living in Wellington. And the local pool of talented software engineers ensures our technology is world class.”
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Saving property and lives from fire PERTRONIC After many years as an engineer protecting New Zealand’s network of telephone exchanges from fire, and after some time working on the inside of fire alarm companies overseas and in New Zealand, Pertronic’s founder and managing director David Percy spotted a gap in the market. In 1982 he decided to fill it. Starting out on his own, David’s goal was to be New Zealand’s first and only standalone designer and manufacturer of automatic fire alarm systems. He recognised that other players in the market were not independent – they both supplied and installed fire alarm systems. At first glance that scenario may not seem like an obvious problem, but as David explains, it was.
“When it came to commercial jobs being tendered, contractors who only managed installation were competing against others who managed supply and installation of fire alarm systems. If the installer won the tender, they didn’t feel comfortable buying products from their competitor.” Pertronic quickly became a one-stop-shop for the independent installers.
Pertronic’s innovative market position continues to be a critical point of difference and reason for the company’s success. Its once major competitor held the dominant share of the fire detection market but Pertronic’s quality design, New Zealand-made products, local
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knowledge of fire regulations and reliable delivery have helped it become the go-to company with over 50 percent market share. The company’s fire alarm systems can be found in hotels, airports, schools, hospitals, offices, apartments, prisons, art galleries, power stations and universities in New Zealand and other countries. Pertronic started exporting to Australia in 2000 and now has 70 staff at its production site in Lower Hutt, three staff in Auckland and 30 staff across its five offices in Australia. Distributors in China, Malaysia and Fiji take its products further afield.
www.pertronic.co.nz
“Specialising in a niche market means we know our customers really well and can design new products that suit their very specific needs.”
David Percy
Thanks to one of Pertronic’s innovations, an apartment dweller can silence the building’s alarm after burning their toast without the whole building needing to evacuate. The company has also developed monitoring, control indicating and reporting systems which building owners can access remotely. Supported by the Ministry of Business, Innovation and Employment, Pertronic has received R&D grants to help it develop new products. The company invests a significant amount of its own annual profits in R&D and sees this as essential for its survival and growth. The 20 percent subsidy received from MBIE is based on Pertronic’s own R&D investment.
“This helps us grow faster than we otherwise would because, putting it very simply, we can increase the number of people in our R&D team from 10 to 12.” David explains that while most of his customers are outside the Wellington region, being based near New Zealand’s capital city is an advantage. “It helps give us a national focus. The region’s infrastructure supports our business well and the road freight system between Wellington and Auckland makes getting our products from A to B overnight very easy.”
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Steady shots for film industry PHOTO HIGHER (AVENIR HOLDINGS LTD) Aerial photographers and film camera operators have high expectations when it comes to getting premium quality footage from whatever location and angle they choose. Whether filming a kite surfer from a helicopter or running with a camera through rough terrain on a windy day, they want their footage to look steady and smooth.
Now, his innovative Wellington firm is one of only a few companies in the world designing and manufacturing high-end, electronic stabilised camera mounts (gimbals) and unmanned aerial vehicles (drones) for a range of applications.
Kimberley Attwell, founder of Photo Higher, is pleased to have discovered that this niche market is prepared to invest in high-end equipment to help make that goal a reality.
Filmmakers use the gimbals as hand-held stabilisation systems while aerial photographers use the drones in industrial and commercial situations when they require very smooth and stable video while flying.
More than a decade ago, Kimberley spent his spare time flying remote-controlled model helicopters.
With a staff of six, and a commitment to its products being made in New Zealand, Photo Higher’s innovative range is available to amateurs
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and professionals through more than 70 distributors in 43 countries around the world. Being a tool maker by trade and a mechanical engineer, Kimberley can put his mind (and turn his hand) to any part of the design and production process. With a team of specialist software developers in-house and a local network of supportive suppliers, Photo Higher has developed a sophisticated range of gimbals using custombuilt stabilisation technology (rather than off-theshelf software). Kimberley insists that “keeping the end-user in mind every step of the way, continuous improvement and working closely with our local suppliers has been critical� to his success.
www.photohigher.co.nz
The company’s latest brushless gimbal is the only one in the world to be made from moulded, hollow, carbonfibre with internal slip rings. This innovation makes it very lightweight so it's easier to use for longer. Because the gimbal doesn’t have any joins, it doesn’t flex, so the camera operator can capture steadier footage. The camera tray has also been designed to allow the camera to be perfectly stable, easily balanced and moved left or right and up or down. Via the internal slip rings, auxiliary power, a video signal and a serial port are accessible.
Kimberley Attwell
A Callaghan Innovation grant through Grow Wellington enabled Photo Higher to invest in some valuable R&D after starting up and NZTE’s capital investment team connected Kimberley to investors NZ Think. Relationships with Massey University and Victoria University of Wellington have offered the company expertise in megatronics and engineering respectively, and technology students have joined the team through the Summer of Tech programme. Wellington’s compact centre is a major attraction. “It takes me five minutes to get to work. I’m 10 minutes from the middle of town and not far from the airport either. I don’t want to spend time sitting in traffic every morning – I want to be at work getting things done.
“On weekends after a short drive I can be in the middle of native bush, the Wairarapa or on the Kapiti Coast. Wellington’s such an easy place to live.”
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Helping dairy farmers make business decisions REGEN Agricultural scientist Bridgit Hawkins has always been passionate about transforming science into products and services for the agricultural sector. The founder of agri-tech company ReGen believes that knowing how and when to make decisions based on science is fundamental to any farmer’s success. She explains: “Dairy farmers measure many variables daily. There is no shortage of data available, but application of that data for good decision making isn’t always easy.”
ReGen’s ambition to help farmers make smarter decisions for the benefit of their land, bottom line and confidence, led the company to develop an innovative system for managing dairy effluent. Bridgit Hawkins
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ReGen’s sensors are installed around the farm to measure variables such as rainfall, effluent levels and soil moisture and temperature. Once a day the
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farmer receives a text message and email from ReGen including graphical information about each variable, and a recommendation about when to irrigate and how much effluent can be spread safely. Farmers can review more comprehensive information via ReGen’s mobile app and website. With farmers in mind every step of the way, features like larger-than-usual key pads allow for their often larger-than-average fingers. ReGen’s effluent management system was launched in 2010. After two successful capitalraising campaigns, the company has grown to six employees and developed another product to help farmers manage their application of nitrogen. Using the same mobile technology, the tool provides farmers with a response rate and cost of applying nitrogen at a certain time based on a range of variables.
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Bridgit finds bringing in experts at times is crucial because they offer shortcuts. The company has been well supported by Dairy NZ for its on-farm trials, Massey University (since everything ReGen develops is underpinned by science), Gen-i and the Ministry of Business, Innovation and Employment, NIWA for weather information and Landcare for its soil database. They also received an escalator grant for raising capital. Regen recently formed a partnership with technology provider NEC, who will provide sales support and direct marketing, leaving ReGen’s staff to focus on research and development of new products. While ReGen’s customers are based in rural areas, Bridgit says, “We are primarily an IT company so Wellington suits us perfectly.” With Wellington
www.nzregen.co.nz
airport being a regional hub, its team of six is only one flight away from wherever it needs to be. “Many of us enjoy walking to work every day, alongside the harbour. Our staff want to live here so we have a more stable team and can deliver better outcomes.” Being a small city to get around means Bridgit benefits from meeting daily, faceto-face, with her support crew.
Bridgit explains that networking in Wellington is easy and that being exposed to a diverse range of business people from all kinds of sectors, not just from agri-business clusters, is a real bonus. “If I ever have a question for tech entrepreneur Rod Drury, I could probably find a way to meet him next week.”
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Textiles stand out on world stage STANSBOROUGH
While Cheryl and Barry Eldridge were determined to make their textiles a local success, they never dreamed they’d be commissioned to design and produce material for costumes in international blockbusters such as The Lord of the Rings, The Hobbit and The Chronicles of Narnia. Twenty years ago when the Eldridges decided that their steep hill country farm Stansborough was a financially marginal operation, they didn’t give up. They got creative and found an alternative. The couple bought a small flock of rare sheep known for their lustrous bluegrey wool, Cheryl signed up for an adult apprenticeship in an old woollen mill in Eketahuna and over time came to own six 19th century looms.
Cheryl and Barry Eldridge
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Along with mill manager Richard Graham, they now shear, sort and grade the fleeces of over 1,200 ‘Stansborough grey’ sheep from their Wairarapa farm twice a year.
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The wool is spun into yarn and woven on their historic looms into highend textiles, blankets, babywear and fashion accessories, which are sold in New Zealand, the UK, Europe, Canada, Australia and the US. Controlling the whole process from growing the sheep to weaving and marketing the textiles is very unique. Cheryl admits that working with the film industry has been a challenge – meeting tight deadlines while keeping the quality up. “But it’s presented an exciting opportunity and has definitely raised our profile in New Zealand and overseas.” “It’s impossible to compete with China whose factories can produce over 1,000m of fabric per day,” she says.
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"We’ve pursued a niche market which favours quality and individuality over quantity and uniformity.” Interior designers, costume and fashion designers are attracted to the way Stansborough does things differently. The wool itself is silky and soft yet durable and versatile; the yarn is worsted (the short wool is combed out) so doesn’t pill; no chemicals are used to clean the wool or treat the finished textiles; only biodegradable dyes are used (without any bleaching); individual designs can be woven in short runs; and everything is hand-finished. Not surprisingly, Stansborough’s range of corporate gifts is in high demand nationally and its innovative textiles are destined for catwalks,
www.stansborough.com
movie sets, super yachts, boutique lodges and designer homes the world over. The company’s initial R&D was well supported by Wool Research, NZTE and Grow Wellington. “Knowing what our wool is capable of has helped us determine ‘what next’. Our determination and No.8 wire attitude means we are always on the look-out for new opportunities.” Cheryl is enthusiastic about being based in Petone, between Wellington and the Wairarapa. “Wellington’s a vibrant city offering many things that bigger overseas cities do but in a more compact space. It’s full of innovative people who appreciate the arts, design and premium quality. And government and corporates with VIP visitors are discerning customers so being close to them is a real advantage.”
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Solving big data problems SYL SEMANTICS Well-managed data gives businesses a competitive edge – it’s an information asset. However, as Sean Wilson, CEO of Wellington software company Syl Semantics, points out, “it’s becoming more like a ‘data landfill’ as too many businesses don’t know what data they’ve got, let alone which bits to use or lose. And it’s costing them money.” Five years ago, Sean’s passion for new and innovative technology came together with chief data scientist Peter de Vocht’s idea to better enable searches across multiple information systems – the aim being to deliver more relevant results. With the expertise of chief technology
officer Adrian John, Peter’s “original bit of code” became a commercial product. Syl Search was the company’s first product that helped solve “the big data problem” for large organisations. Most big businesses hold information about their customers, staff, suppliers, sales and finances in separate information systems.
Using semantic (natural) language, Syl searches every system and returns highly relevant results, very quickly. It gives large organisations a single view of everything they’ve got.
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The product features a semantic dictionary of over 500,000 English words and 25 million relationships between words, jargon, abbreviations, synonyms and acronyms. Syl can reconfigure and refine the dictionary for any sector from banking or the legal sector to health and telecommunications. While Syl’s search software helps people find what they’re looking for, another innovative tool, Syl Discover, tells them what the data is so they can manage its lifecycle and associated costs. With success amongst its growing stable of large New Zealand clients and a staff of 11, Syl has attracted interest from clients and investors from Australia, the UK and US.
www.sylresearch.co.nz
Syl’s local network of supporters has been invaluable: NZTE vouchers for capital raising coaching; a partnering agreement with Datacom in which they implement Syl’s technology and service its clients; NZTE funding for a strategic review and research into a potential market; graduates from Victoria University of Wellington over the summer; and an investment grant from New Zealand Venture Investment Fund which matched its funding from angel investors.
Clockwise: Sean Wilson, Peter de Vocht, Adrian John
Sean is convinced that Wellington is the world’s best-kept secret and delights in fitting half a dozen meetings into a day.
“Some people say we need to develop an IT precinct here and I say ‘we’ve got one and it’s called Wellington’. It’s a five to 10 minute walk between most meetings. Silicon Valley is 50 miles long.” While other cities are positive and inspirational too, he highlights that Wellington is a low cost city to work and live in, and the ideal place to prove technology before taking on international markets. “Public sector clients are rigorous – making them a great testing ground,” Sean says. While he takes the odd plane to other places, his team is passionate about Wellington. “The culture of innovation here means people will give you a go.”
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Precision optics aid navigation world-wide VEGA INDUSTRIES Carefully positioned, optically accurate and energy efficient marine navigation lights are one of the most important assets for any marine authority. Such authorities are responsible for the safe arrival and departure of any ship in their waters.
The Panama Canal, Port Louis, Long Beach Island, the English Channel, the Port of Durban‌ Vega's innovative lights and beacons can be found on almost every coastline around the world. In 1972, Vega designed an innovative light to mark the entrance to Paremata Harbour near Wellington. It featured three sectors (wedges) of coloured light to help keep a ship safely on course and provided a higher resolution than had ever been possible before. The design has since been refined and is now one of Vega’s core products supplied to its customers all over the world. Alistair Taylor
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Based in Porirua, the world leading designer and manufacturer has evolved to meet the highly specialised needs of marine authorities throughout New Zealand and over 50 other countries around the world. With specifications varying by country, Vega uses its expertise in optics to develop a vast range of products known for their sophisticated lenses and intensity of light.
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others can be seen from up to 24 nautical miles away. Making the most of advances in LED technology has helped lower its customers’ maintenance costs (because LED bulbs don’t need changing as often) and operating costs (because LED lights use less power).
CEO Alistair Taylor is proud that Vega’s commitment to superior optical performance has become a world benchmark. “When someone needs a light that others say is in the ‘too hard basket’, they track us down.”
Since many of Vega’s lights are installed in remote places, it has developed a remote monitoring and communication system that allows customers to collect and review information about their lights online. In the Panama Canal there is no electricity, so its lights rely on expensive solar panels. Vega has developed a system which means the lights can be turned on and off automatically to save power.
While some of Vega’s lights and beacons are designed to be seen from one nautical mile,
Staying focused on the marine industry and committing a quarter of its 43 staff to product
www.vega.co.nz
development and commercialisation has allowed Vega to design innovative products which its competitors can’t beat. Beyond the company’s design expertise, Alistair puts a big part of the company’s success down to its relationships with its niche market and insights gained from that. “We’ve had a longstanding relationship with the marine authority which controls the Panama Canal – one of our biggest customers is the US Coast Guard.” While 95 percent of Vega’s products are exported, Alistair knows being based in the Wellington region has its advantages. “We live by the sea on the Kapiti Coast and are only a 10 minute drive from our newly-opened building so we’re not moving anywhere else any time soon.”
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Bringing vending machines into the future VENDING MANAGEMENT SERVICES LIMITED From a customer’s perspective, vending machines are a convenient find, day and night, 365 days of the year. But before the Wairarapa-based company Vending Management Services Limited (VMSL) developed technology to keep track of a vending machine’s sales, they were somewhat inconvenient for their owners. Until someone turned up to service them, there was no way of knowing how many products had sold, what stock needed replacing, and how much money should be collected and therefore banked. Vending machines have come a long way since VMSL was established 24 years ago, says general manager Andy Kerr.
“They are still essentially big fridges in remote places for people wanting a cold drink or snack. We’ve found innovative ways though for them to talk back to us so we can monitor their performance.” VMSL originally designed a lock for protecting vending machines from theft. The company also found a way to automatically count sales using a small onboard computer. A combination of its hardware and software is now used to manage and monitor 40,000 vending machines around New Zealand and Australia remotely. From the outside, vending machines haven’t changed much over time but the technology on the inside has changed significantly.
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“Counting cash sales was relatively simple when coins were the only form of payment,” Andy says. “We’ve now integrated devices such as card readers so credit and debit cards can be used.” VMSL has also developed an innovative system that reconciles sales received from cash with cashless payments made through banks. The company’s most recent invention QuickTap allows consumers to pay for snacks and cold drinks using their smartphone. Andy explains the challenge that comes with adding new technology to vending machines which are designed to have the smallest possible footprint and the maximum potential for sales. “Maximising the space available for saleable
Andy Kerr
products is a big priority so whenever we add new technology, it needs to be small enough to fit into a limited space.” The benefits of VMSL’s technology are many. A vending machine’s uptime and therefore sales are maximised, operating costs are lower and cash losses are minimised. Consumers are happy because they can pay for products in various ways and are more likely to find a well stocked vending machine over a half empty one. Data from VMSL’s vending machines was once transferred via a landline. It is now mostly sent via the internet and stored in the cloud.
“The kind of data we collect means we can forecast sales and know if a machine is malfunctioning, and restockers know what needs replacing before they get there.” Andy says that being based in the Wairarapa, one and a half hour’s drive north of Wellington, suits his local staff well – Masterton offers a semi-rural lifestyle which is hard to find elsewhere. “My commute to work is 10 minutes, it’s a great community to raise a family in and the costs of living are significantly lower. Those are the things that keep us here.”
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Get connected Get in touch with the Wellington innovation ecosystem. Grow Wellington is here to help. About Grow Wellington Grow Wellington is the economic development agency working to accelerate economic growth in the Wellington region and make it more internationally competitive. Our focus is on building business capability and growing sector scale along with attracting business, investment, talent and students to the region. We are the delivery agency for the Wellington Regional Strategy.
Need to grow your business? Grow Wellington’s business growth managers can connect you to our local, national and international networks of graduates, expertise and business services. Leverage this knowledge to raise capital, develop strategies and get your products to market.
Want to get a piece of our fast growing ICT and manufacturing sectors? Some of our fastest growing companies are seeking investment now. Get a piece of the action as they are approaching the dawn of global success. Get in touch with Grow Wellington to find out more.
Boosting innovation, developing our workforce and working towards building strong ecosystems underpins all of Grow Wellington’s activities. We are targeted in our approach, working with businesses with the desire to export, innovate and grow.
Level 5, 50 Manners St
PO Box 10-347, Wellington 6143, New Zealand
P +64 4 382 0099
info@growwellington.co.nz
F +64 4 382 0098
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Acknowledgements For their contributions to this, the Wellington region’s first Innovation Profile, our particular thanks go to: The 18 businesses that generously agreed to be featured in case studies, showing the diversity of innovation in the ICT and manufacturing sectors across the region. Colleagues in Brisbane Marketing, Enterprise Connect, Regional Development Brisbane, University of Queensland, and the CEO’s of the Brisbane businesses we met in February 2014. Our two days in Brisbane, which has been publishing an Innovation Scorecard annually since 2010, underlined the potential benefits, for the wider economy as well as individual and clusters of businesses, of portraying and promoting a region’s innovative capabilities.
We would also like to acknowledge: Aimee Scott and Alex Clark, Victoria University of Wellington Summer Scholars Regional Councils and Chambers of Commerce The team at Spatial IQ: Neil, Stew and Mark Sarah Connor (writer) and Nicola Edmonds (photographer) Gina Goad (designer)
Feedback We welcome feedback on the usability, content or the approach we’ve taken to our first Innovation Profile. We also invite any organisations and companies interested in partnering with Grow Wellington for the second edition of the Innovation Profile, planned for 2015/16, to contact us. Adrian Gregory General Manager Innovation and Workforce adrian.gregory@growwellington.co.nz
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