Complex algorithms are both the underlying core capability and inherent in-built knowledgeprotection for Optima Corporation’s unique emergency management software being rolled out aroundthe world.
Getting the right ambulance or fire engine, with the right personnel to the right place asquickly as possible is a complex scheduling and logistic challenge.
“It’s a very difficult thing to solve,” says the Auckland-based company’s chiefexecutive, Chris Mackay. “What we provide is something that’s much faster and more effectivethan a human mind can do.”
Users of Optima’s mathematical-based software are presented with an interface and graphics thatare easy to use and provide recommendations of which ambulance (or fire engine) should be used, fromwhat geographical location, anytime day or night. It also optimizes where emergency services shouldbe and how it should be staffed at any time of day.
“What it does provide is improved and superior performance, where the right unit gets therequicker,” he says.
As a provider of unique software tools, Mackay says the company wants to take advantage of thefact it has virtually no competition, and as well as educating the market about its programs’capabilities wants to spread its sphere of operation beyond the current 30 implementations acrosssix countries.
“We have a long sales cycle of one to three years which currently is averaging two years,” hesays. “Every time we talk to a new opportunity, we receive their immediate attention. Themarket’s responding, and as it is still leading edge technology, for us the opportunities aresubstantial.”
The software also enables emergency services to carry out scenario simulation modeling –changing variables such as funding and being able to demonstrate how that will affect operations
Mackay estimates that North American alone is a $1 billion market, with Western Europe about halfthat. The private company has grown by 60% in the past two years, and expects to expand by another50% this year.
Its 25 person team has two fulltime sales representatives in America and Europe, as well as preand post sales support often flying out from New Zealand to its customers’ bases. Of those staff,six have a pHD, and there’s numerous master degrees in residence. “We’re semi full of semirocket scientists,” Mackay says.
Optima is also one of 10 entrants into the University of Auckland Business School’s 2010Entrepreneurs’ Challenge, all competing to win capital funding from a $3 million endowment giftedby ex-pat financier Charles Bidwill. The funding is to enable expansion into overseas markets.
If he wins, Mackay will use the loan to put more sales resource into the market, “more peopleon the ground,” he says.
“For us to build ongoing momentum and take advantage of the window of opportunity while thecompetition sleeps, we need to do a land-grab exercise and secure as many customers now as wepossibly can,” he says. “Competitors will turn up at some stage.”
A direct customer relationship is a critical part of its business compared to relying on othersto introduce Optima to emergency management organisations.
Optima’s genesis was in the aviation industry ten years ago, when it helped Air NZ schedulewhich planes should fly where, as well as matching those flights to staff rosters. This exerciseallowed the national carrier to save $14 million a year Mackay says.
With the 9/11 bombings in New York however, suddenly all airlines contained their spending. Anapproach from the Melbourne Ambulance Service asking if Optima could help manage its operatin betterexposed the company to a new market, emergency management services. Optima’s team ofmathematicians used the same logical processes to provide solutions for the new market.
Mackay says the company hasn’t patented its proprietary software “though its complexity isits safeguard.”
Its business model is a relatively typical in selling software licences, a one-off implementationfee, and ongoing and reoccurring support and maintenance fees.
Optima’s future is “certainly to secure ourselves as the dominant software supplier inemergency management services,” Mackay says. “We would argue we’re already there, but we wantto consolidate the position.”
This base would also allow it to expand into other markets such as police he says.
Ironically, Optima is also reviewing its opportunities in the airline industry once again.
“There’s plenty of competition there however,” he says. “It’s a case of having limitedresources and thinking about where we can best apply those resources.”