R. Halsey Wise, chairman, president and CEO of Intergraph kicked off the company’s weather-delayed user conference with an emphasis on turning their innovations into opportunities for economic success during challenging times. The high production quality of the main stage, with multiple screens, lights and booming bass sounds, drove home a presentation of customers “that see no limitations” to the audience of more than 2,000 people representing 50 countries around the world.
Wise began the discussion, focusing on how fortune and opportunity are made and not found, especially during challenging and uncertain times. The conference program centers on identifying opportunities, and the freedom to innovate and drive change when things are uncertain.
Among the changes that Wise highlighted are:
- the growth and competitiveness of China
- social media’s impact on how we connect and communicate
- Software as a Service and the Cloud as a delivery mechanism for on-demand software and solutions
Wise emphasized that, taking risks to seize opportunities with chance of failure is what good organizations do. He urged the audience to think of ways that they can think differently, head away from industry group think, and innovate for success.
The negative environment of the Great Recession has been referred internally at Intergraph as “getting around Cape Horn” to turn the challenge into a rallying cry to remain profitable and gain market share. The company’s “data centric” product strategy is at the heart of their success.
While they are in the software business, the company is focused on making sense of data to make decisions and realize value. Their customer satisfaction survey of 2009 indicated that 82% of users were satisfied or very satisfied with their Intergraph investment.
Wise recapped the company’s turnaround since 2002, discussing their Now, Next and After-next road map. In 2010 the company’s total revenue was $839 million with profits of $205 million. They’ve increased their operating income by 900% since 2003, and have increased stock value by more than 800%.
With the benefit of this profitability, the company has invested more than $150 million in R&D since 2005, with an increased spending of 40% over three years. New products have been at the heart of their increased performance, generating new revenue that amounts to a $115 million growth since 2003.
The acquisition by Hexagon for $2 billion was discussed, with all government approvals in place last week, and the transaction is set to close on or around October 1. Intergraph will continue to operate a wholly owned subsidiary, that maintains the brand.
In somewhat shocking news, it was communicated that Hexagon leadership will take an active role, with each of the division presidents reporting direct to Olla Rollen, CEO of Hexagon. The current C-level management team of Halsey Wise, Reid French and Anthony Colaluca will step down.
