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A tech company built to last in small town Ontario

• Posted by Leo Valiquette
• March 26, 2009
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By Leo Valiquette

Ross Video is not as well known as some companies in the Ottawa area. And yet, it employs 300 staff between its operations in Ottawa and the small community of Iroquois about an hour south, and has enjoyed average annual revenue growth of 20 per cent since 1991.

Ross Video makes a variety of video-production equipment used for broadcast and live events.  Its products ship all over the world, with customers that range from major television networks, Scotiabank Place and the Vatican to the Red Hot Chili Peppers. The company’s success has earned it some kudos. It won an OCRI Technology Company of the Year award in 2005, a Gemini Award for Technology in 2007 and an OCRI Product of the Year award in 2008. Still, it doesn’t command the immediate name recognition as other names in the Ottawa tech sector. Perhaps that’s due in part to the fact that the Ross Video name lacks the infamy associated with some of those other names.

As an Iroquois boy myself, I couldn’t help but chuckle at the irony as second-generation chairman and CEO David Ross talked about the company’s obvious staying power at this morning’s OCRI Technology Executive Breakfast.

For anyone who knows it, Iroquois is a quiet village on the shores of the St. Lawrence River with fewer than 1,500 residents. It greatest claim to fame was its wholesale relocation to higher ground during the construction of the St. Lawrence Seaway in the 1950s. This humble setting is the hometown of a success story that has more than a few lessons to teach to the Ottawa technology community about what it takes to build a global player.

The company was founded by David’s father, John, in 1974 with seed money earned from the sale of his prized Second World War twin-seat training airplane and a bank loan for a grand total of $8,000.

John Ross founded the company with two guiding objectives:

• Have a family-owned business
• Maintain control of his own destiny indefinitely

The emphasis has always been on building a company to last, rather than one to sell, which, as David stressed, is a tougher road that requires a far different mindset. It’s not enough to think a fiscal quarter or a year ahead, but a decade ahead. It is this emphasis on private control without diluting ownership through external investment, and the long-term business strategy this demanded, that has helped build a company well prepared for any economic downturn.

Among Dave’s best practices to build an enduring company:

• For its first 18 years, Ross Video sold only video-production switches and was hammered by recessions in the ’80s and ’90s. This taught the value of diversifying the product line to help make the company more resilient to downturns. One way was to develop more economical and stripped-down versions of its products. The Lamborghini model may sell well when times are good, but the Kia version will still sell well when times are tougher.
• But . . . don’t wait until a recession has struck to design the Kia model. When times are good, re-invest profits in research and product development. About two-thirds of Ross Video’s product line has been introduced within the past three years.
• Make sure your products touch on as many edges as possible with common markets, customers, materials, manufacturing processes and so forth. This drives a lean and efficient operation.
• Diversify the customer base, both by market and geography.
• Don’t sit on a pile of cash. Again, invest in new product development and diversification. “If the downturn is long term, the cash will eventually evaporate and only postpone layoffs.”
• Spread your technology bets. For example, don’t bet the company on some new emerging technology at the expense of older legacy products that still have a solid market. Again, diversify.
• Partner. Partner on marketing, sales channels, product development, manufacturing — whatever it is where your company is strong and another is not and vice versa. Ross Video has built a partner channel with more than 20 other smaller companies in its space that, for the most part, are in some fashion a competitor. And yet, these partnerships are beneficial on both ends.
• Consider carefully where there is the most benefit from outsourcing a process versus keeping it in house. Ross Video still prefers to keep its manufacturing inside the company and has taken advantage of new technologies to improve the cost efficiency of these operations.
• Take advantage of government funding, such as through IRAP or the SR&ED program.
• Customer service is critical, especially if you are second or third in your market. “People buy from people they like.”
• By the same token, “People work for people they like.” Treat staff with respect, invest in them and have regular celebratory events.
• Manage growth. Don’t be greedy and look to grow too fast. Ross Video has walked away from more opportunities than it has pursued.

Leo Valiquette

Posted in:

• Technology marketing

The Pope and PR ethics

• Posted by Danny Sullivan
• March 19, 2009
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By Danny Sullivan

This is probably the first and last time the Pope gets a mention on this blog, but this week’s events in Africa got me thinking.

What got the Pope in hot water while visiting a continent ravaged by AIDS/HIV was his public assertion that the use of condoms could increase risks to public health related to the spread of the disease.

For most companies, there are countless topical situations that could be taken advantage of for the purpose of making a point. In some cases it might be appropriate and prudent to do so, and for others, definitely not. The events of September 11, 2001 are a prime example of the latter, where there were some who tried to capitalize on the fear generated around the attacks. But the majority of businesses rightly balked at such callous practice.

Many technology firms will unfortunately come across occasions when a global disaster or terrible event would provide a potential platform from which to illustrate their product’s capabilities, and how they might have prevented events from happening. But they just don’t. Our ethics help us to realize it’s better to say nothing in certain situations.

While I understand that the Pope has an agenda that he firmly believes in (as does the leadership of most organizations), I would have thought that someone within the Vatican’s PR department might have raised the point that certain subject matter might be better left alone when visiting the epicenter of that subject.

Danny Sullivan

Posted in:

• Public and media relations
• Random thoughts

Give’em what they want, not what they need

• Posted by Leo Valiquette
• March 12, 2009
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By Leo Valiquette

What is a brand? As the speakers at OCRI’s Zone5ive event emphasized this week (and anyone in the marketing or public relations space should have learnt long before they ever picked up their first pay cheque in the business) it’s much more than a logo.

Brand is the perception of your products or services in the minds of consumers, customers and clients, a perception that is created, moulded and reinforced at every point of contact with the audience you are trying to reach. These points of contact encompass everything from the treatment a disgruntled customer receives when they call a service agent, the reliability and functionality of your product and the tone of your advertisements on radio and television, to your image as an upstanding corporate citizen who is socially and environmentally responsible.

According to presenters Mike McGuire, managing partner at Wingspan Design, and Dennis Van Staalduinen, founder of Brandvelope Consulting, we tend to buy on emotion, regardless of how we may attempt to rationalize the utter logic and objectivity of our purchasing decisions. How we perceive a brand, rather than how we judge the features and benefits of a particular product, often decides our willingness to put cash on the counter.

However, part of how we perceive or favour a brand will be based on how accurately that brand reflects what we consider important, in terms of features and benefits.

For marketers, the challenge is understanding the consumer’s perspective and conveying that to the engineers and developers, while the engineers … well, the engineers need to listen to the customer-facing folks who are anything but engineers. Somewhere in the middle are the industrial designers, who must look backward from the customer’s perspective and focus on the functionality and aesthetics of a product, rather than whether it meets a certain technical specification. Apple is the perfect example of a company that has taken this to heart with a distinct brand that drools cool and exploits our propensity for emotional buying.

For a company looking to put a product on the market, the first question to answer is “What are people willing to pay for?” What they need, even what can make their lives better, doesn’t mean a bloody thing if it isn’t a product or service they are willing to buy.

The classic example that Van Staalduinen cited is the Segway, that two-wheeled gyro-balanced thingamajig from celebrity inventor Dean Kamen. For months it was hyped under the code names “IT” and “Ginger,” touted by the likes of Apple’s Steve Jobs as a revolutionary invention that would change the world and remake the urban landscape for the benefit of flowers, trees, people and puppies every where. And yet, the public at large had little idea what it actually was.

When it was unveiled, we got a high-tech scooter that did nothing that the humble bicycle hadn’t already done for us for decades, only stripped away the health benefits of physical exertion.

Nine years later, the Segway has sold about 30,000 units, whereas the investors had expected to sell 50,000 in the first month. A failure born of too much hype that failed to ask the critical question, “Will people actually pay for this?”

How about it? As you take stock of your business and attempt to chart a strategy to weather the downturn and emerge stronger on the other side, have you sought out the input of your customers and potential customers? Have you taken to heart what’s important to them, regardless of what’s important to you and your design team? Are you sure what you are planning to put out on the market is something people will pay for?

Think carefully, there’s little room for error or opportunity to beg more money from your investors and go back to the drawing board.

,

Leo Valiquette

Posted in:

• Marketing strategy
• Product marketing

Twitter: My first impressions

• Posted by Francis Moran
• March 10, 2009
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By Francis Moran

As recorded here, I started Tweeting a bit less than a fortnight ago. (Handle is @francismoran, if you’d like to follow me.) Today, I want to come up for air as I barely tread water in the Twitterstream and share a few first impressions.

1. Twitter is the most addictive thing since crystal meth was synthesized, and it has precipitated a massive relapse in my online behaviour.

I am an easily distracted guy at the best of times. So over the past few years, I have instituted some processes in my work life to diminish the potential that my focus on the task at hand will be derailed by incoming emails, news feeds or other bright shiny objects. I turned off all email alerts, stopped using instant messaging services and schedule specific times in my day when I will deal with email, my RSS feed and the like.

Then along came Twitter. At the office, at home, waiting for my Clover at Bridgehead, at the breakfast, lunch and dinner tables, at red lights while driving … hell, almost anywhere and at any time of the day, I MUST check Twitter and see what the ‘Stream is bringing me. It’s obsessive, and I’m actively seeking therapy.

2. Twitter is also incredibly seductive.

I wrote that I intended to use Twitter not as a sort of ersatz IM tool, or as a way to stay in touch with friends, or to post self-promoting updates about what airport I was now landing at. Nope. Twitter, for me, was going to be strictly business. I intended to use it to tweet about things not worth a full blog post, to draw attention to interesting things that came through my RSS reader, to promote great content secured by one of our clients here at inmedia, and to participate in Twitter conversations.

Well, it was that last one that pulled me in. (Right now, I’m channelling Al Pacino’s character in Godfather II.) Before I knew it, I was giving grammar tips, talking about what I’d name my boat if I had one, and, most un-businesslike of all, posting pictures of myself on a Jamaican beach.

3. Twitter has really goosed our blog traffic

It hasn’t all been obsession and personal indulgences, though. While the data points are still relatively few in number, we saw a tidy spike in blog traffic last week, with visitors up about 25 per cent from the weekly average for the previous month, page visits up 80 per cent and a 10-per-cent increase in subscribers. And Twitter has become the third-best source of referral traffic to our blog. All in less than two weeks. Nice.

4. The tools are a bit bewildering

Selecting a Twitter client has been a bewildering exercise. Initially, I started off both reading and posting directly on the Twitter site, hitting F5 every time I wanted a fresh deluge of tweets. Of course, as any member of the Twitterati knows well, there is a plethora of clients that can be installed.

I’ve been testing TweetDeck. It’s okay, but its constant pings are just too demanding on my too-fleeting attention span. Maybe I’ll play around with TweetDeck a bit more and explore its greater functionality but for the moment, I think I’ll continue to use my browser on my desktop.

I’m on my third client for my mobile platform, the iPhone. And it’s here that my obsessiveness really runs amok anyway. I’ve been using the free iStore application TwitterFon for the past several days. I really like the interface, especially how it uses colour to categorize incoming tweets and shows all replies whether or not I follow the person replying. Conversation threads are also very easy to follow. I think I’ll stick with this one. Until a brighter, shinier one catches my eye…

5. @snolen takes the prize for best Twitter Stream this first two weeks

The Globe and Mail‘s excellent Stephanie Nolen, who was recently reassigned from the paper’s Africa bureau to its India bureau, kept up a steady stream of live tweets reporting on the Dalai Lama’s speech to his followers marking yesterday’s 50th anniversary of his flight into exile from Tibet. This is the future, kids.

Francis Moran

Posted in:

• Social media

‘Angry phone calls are your friend.’

• Posted by Francis Moran
• March 06, 2009
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By Francis Moran

“Angry phone calls are your friend,” writes Seth Godin in a blog post today. “They’re your friend because the alternative is angry tweets and angry blog posts.”

I agree so completely I’ve already tweeted this post of Godin’s.

But I think companies should have more holistic approaches to customer satisfaction and service for good business reasons that go beyond fear of being slagged on the ‘net. We write about this a lot here at inmedialog so forgive me for sounding a bit like a broken record.

Superior customer service is the only sustainable competitive advantage available to most companies. If you have a technology advantage, your product will swiftly be reverse-engineered, or the next refinement by a competitor will leapfrog over it. If you have a price advantage, outsourcing and off-shoring will swiftly erode it.

If you treat your customers better than your competitors do, however, you will build and expand an advantage than no one will be able to take away from you.

Don’t treat your customers properly just because you’re afraid they’ll write nasty things about you on Twitter or on blogs. Treat them properly because it’s the surest way they’ll stay customers.

[tag] Customer service, Seth Godin [/tags]

Francis Moran

Posted in:

• Public and media relations
• Social media