June 09, 2008
Intergraph 2008 Report
Please note that contributed articles, blog entries, and comments posted on GIScafe.com are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.
Welcome to GISWeekly!
GISWeekly examines select top news each week, picks out worthwhile reading from around the web, and special interest items you might not find elsewhere. This issue will feature Industry News, Top News of the Week, Acquisitions/Agreements/Alliances, Announcements, New Products, and Events Calendar.
GISWeekly welcomes letters and feedback from readers, so let us know what you think. Send your comments to me at giscafe-editor@IBSystems.com
Susan Smith, Managing Editor
Intergraph 2008 Report
By Susan Smith
Caesar’s Palace, Las Vegas, Nevada was the setting for the Intergraph 2008 conference June 2-5. Intergraph President and CEO R. Halsey Wise delivered the opening keynote address in the Coliseum, the venue for both Elton John and Cher and many other shining stars. Wise made the comment, why did Elton John and Cher bookend their performances around the Intergraph conference?
He joked that they arrived without a Power Point projector which they borrowed from Intergraph, and in exchange took John’s red piano off the stage.
The largest Intergraph conference to date drew over 2,500 attendees from over 60 countries. Wise pointed out that 50% of revenue comes from customers outside the U.S.
The theme of the conference, “Experience the Power” was a thread that wove its way throughout all the keynote presentations. Intergraph’s industry divisions are divided into Security, Government & Infrastructure and Process, Power & Marine. For the purpose of this report, we will address Security, Government & Infrastructure focusing on geospatial.
Wise said that Intergraph customers do work that changes the world we live in. Based on feedback from customers and users, Intergraph meets their request for an opportunity for structured networking. Customers are united to achieve common goals.
Cautioning against organizational contentment, Wise said that the status quo wants things to stay the same, and we must always seek good ideas. The ‘way we always do it” is the “pursuit of incrementalism.” He quoted the irascible Tom Peters, business consultant and writer: “Nearly 100% of innovation,from business to politics to life, is inpsired not by market anlaysis, but by people who are supremely pissed off by the way things are.”
The parting message here is we’ve got to keep changing. Change has been a popular topic at this year’s technology conferences, which to me is an indicator of just how important this is to the industry, and to the entire globe.
Wise outlined a framework for business, including five waypoints of change signalling how organizations experience change:
1. status quo, “the way things are.”
2. imbalance to status quo – shock or realization may drive
3. incentive to change – innovation
5. sustained achievement
In the status quo stage there are rewards for saying no. The disruption of the status quo is characterized by a general unease and people unhappy with the way things are. Wise said you need to be prepared for that before it happens. The incentive to change comes with the realization that there is a premium to achieving something better even if it means uncertainty. Transformation occurs when there is organizational freedom to create the future state. Sustained achievement is the reward for risk taking and organizations should remain in perpetual response to this phase.
Wise cited examples of great innovation and change: the City of Las Vegas being one of them. He credited Las Vegas’ openness to change with its success, and said that it has reached the sustained achievement phase. Over 5,000 people a month move to Clark County, over 40,000,000 visited Las Vegas in 2007, and 85% of the world’s top hotels are in Vegas.
He noted Lance Armstrong, seven-time winner of the Tour de France and cancer survivor, with his incredible achievement and daring accomplishments.
Wise showed graphs of each growth – the growth of Las Vegas, Lance Armstrong’s growth from a healthy cyclist to his cancer diagnosis at the age of 25, tracking his physical and mental battle, and five months after diagnosis, back on the bike, then the seven Tour de France wins. Overall, Wise said his most notable impact on the world is as a philanthropist, and founder of the LiveStrong Foundation to help cancer patients.
These examples preceded a graph that outlines Intergraph’s changes since it was founded in 1969. From 1995-2002, Intergraph was in the hardware business, which began to do poorly, the company experienced disruption and exited that business. From 2003 to 2004, Intergraph implemented the “Now, Next, After Next” goals toward innovation, and Wise cites this as the “Now” phase. 2005 to 2007 marked the “Next” transformation period, and 2008 marks “After Next.”
In the Now phase the company developed a vision, mission and culture, strategic plan, goals, and rebranded company, The Next phase, characterized by transformation, in which the company realigned business, created security government division and PPM, got out of areas they didn’t excel in. In the After Next phase the company plan to accelerate revenue growth, take advantage of R&D investments, product market and company expansion, and bold transformation opportunities.
By FYE 2010 Intergraph maintains the goal of reaching $1B revenue, $140 M of R&D in 2010. Their focus is on investment in Asia, India, European Union, energy, oil and gas, utility, security, real estate, land management, and vertical geospatial applications.
The Power of Innovation
Reid French spoke on “The Power of Innovation.” He stressed the importance of innovation to the global economy, and that it is critical to the success of a software business. In research conducted by Booz, Allen Hamilton (Global Innovation 1000), it was found that 45% of R&D spending is in North America, however market growth is greater in China and India. The GDP growth of China is over 11%. Of the new R&D centers that start up over the next five years, ¾ of them will be in China or India.
To most businesses, innovation is elusive, according to French. For one thing, spending more on R&D doesn’t necessarily give you greater returns. So with no correlation between R&D spending and profit growth, innovation remains least consistent and has the least amount of process discipline applied to it.
Creativity, which drives innovation, depends on intelligence but also depends on creative ability that can be learned.
How do you engineer process to get innovation results? Booz Allen Hamilton statistics showed that how often company worked with customers on R&D made a significant difference to innovation results.
French wove Intergraph back into the talk with noting the company’s innovation: in Security Government and Infrastructure the company was first in the world to integrate sensor data into their dispatch solutoin, he said, which became part of their critical infrastructure protection system.
For Utilities and Communications the operations center for SmartGrid technology improves the efficiency of the electrical grid. Intergraph solutions provide improved situational awareness and power restoration.
In the geospatial analytics field, Intergraph is working to develop motion exploitation for video. The new capability includes video sharpening from Video Analyst which will be included in the next release of the geospatial data management storage application, TerraShare, to be launched early in 2009. This technology could be viewed in the Tech Expo. With TerraShare, organizations are integrating imagery into time and mission critical applications like emergency response, highway design, and land information management applications. The geospatial imagery is structured in a single enterprise catalog so that end users can easily find and access an image
without needing to know the file type or any image processing technologies.
You can find the full GISCafe event calendar here.
To read more news, click here.
-- Susan Smith, GISCafe.com Managing Editor.
Be the first to review this article