Invest and Export - a roadmap to Alna's success stories

Tomas Milaknis, CEO, AB “Alna”Investor League, Oct-22-2002

Content

Introduction to Alna

Where from good ideas come?

Success factors for product investment

Case story

Summary

Alna: A Snapshot

Leader in Value Added IT Services

ISO 9001:2000 certified

2001 revenues of 24,9 million Euro

Public company, 40% owned by foreign financial institutions, incl. European Reconstruction and Development Bank

Founded in 1989

Employs over 200 people

Headquartered in Vilnius, Lithuania

Development sites in Vilnius and Kaunas

Export team

Software team consists of 70 engineers

Alna’s people in Finland and Australia on permanent assignment

Projects in 12 countries:

• Australia• Brazil• China

• Belgium, Finland, Germany, Italy, Netherlands, Sweden, and UK

• Saudi Arabia• USA

Multiple expertise areas

The Way to Grow

Core Competence……..

………in Expanded Markets

Lithuania The Baltic’s Scandinavia W. Europe

Establishing Our Presence in New Markets

New services

New products

Acquisitions

U.S.A.

Alna’s Way:

A Good Idea Comes From…

Corporate culture formed by company values…

• Respect

• Quality

• Professionalism

• Personal development

• Customer orientation

• Dynamics

• Informal internal culture

• Innovation

A Good Idea Comes From…

Initial personnel enthusiasm, resulting in…

• ASC - Alnos Smegenų Centras (Alna’s Brain Center)- for innovative and informal Alna’s people

• Greenhouse - For the gifted IT students

• Radar- For the best ideas not to be lost

A Good Idea Comes From…

Executive support…

• Timely executive involvement at the later stages brings valuable ideas into products

During the last year Alna has developed 8 new products in the following areas:

• Industrial design applications

• Advanced search tools

• Content management systems

Investment: from ideas to products

Process:

• Screening of ideas• Preparation of the investment budget and marketing plan• Board evaluation / approval

Criteria:

• Fits Alna’s strategy

• Reasonable risk

• ROI in < 2 years

Results:

• > 50% of investment proposals were approved

• Investment projects ranging from 4.000 to 210.000 Euro

Success factors

Expertise powerhouse …

• backed up by over 230 certifications

• year-by-year training budgets

• technology transfer with partners

• cooperation with universities

• internal training

Success factors

Quality focus …

• ISO 9001:2000

• CMM started Y2000, target – level 3 by 2004

• Company-wide unified project management methodology

• Project tracking, version control and bug tracking systems

• Substantial investments (~140.000 Euro Y2001-2002)

• “Never stop improving” thinking

… By applying CMM-based continuous software process improvement program, Alna is evolving towards a culture of engineering excellence.

Success factors

Product “-ization” experience …

• 5+ years in product development

• Full product cycle performed

• Certification methodology

• Licensing / marketing experience

• Maintenance/support functions

• Worldwide cooperation:• Documentation written in UK• Sales channels/distribution: UK, Germany, USA

Critical success factor

WHERE TO SELL IT?

All may be lost without appropriate sales channels!

Case story - EED

Product Intro

Elementary Electrical Diagrams

OVERVIEW FEATURES/BENEFITS USER PROFILE

Advanced electrical computer-aided design (ECAD) and data management application

Produces schematic diagrams, elementary diagrams, control schematics, ladder diagrams and schematic wiring diagrams, also bills of materials, wire schedules, component schedules and more

• MicroStation users

• Electrical engineers

• Ship builders

• Control system builders:

- power engineering

- railways

Product Background

Created in 2001

Team size: 4 full time people and support/marketing

Investment size: ~85.000 Euro

Worldwide distribution agreement with Bentley Systems

Product price: ~3000 Euro per license

Break point status achieved in Sep-2002 (took 12 months)

Competitors:• AutoCad platform: ACTRIX Technical, ElproCAD..• MicroStation platform: TriForma for Electrical Systems..• Standalone platforms: PCschematic Elautomation, Uni-Tool Automation..

Customers in the World

48

61

2345

407

2812

5419

12

Customers by Industries

28%

38%

8%

9%

12%5%

Railways Power

Petroleum Air Transportation

Other Ship Building

Main Customers:

• Banverket Huvudkontoret (Sweden)

• ABB Transmit Oy (Finland)

• Energex (Australia)

• Transgrid (Australia)

• Petroleos Mexicanos (Mexico)

• CAE Systems (USA)

• Siemens Westinghouse Power Corp (USA)

• Rijkswerf Den Helder (Holland)

• Spoornet (Republic of South Africa)

Closing up..

Alna is an idea-oriented organization, basing success on:

• Sound strategy

• Innovative ideas

• Timely and effective execution

Thank you

Questions?