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Small size not a big issue - October 2008
22nd October 2008
A budding motor mechanic turned Mathematician talks about the challenges of being an SME and how his company's software is now used by several of the top oil majors in the North Sea.
Watching your product and business evolve through the internet era certainly makes you appreciate the impact that technology has on a business. More than most, Mike Davidson has experienced first hand how online processes and the World Wide Web has revolutionised the oil and gas industry. Since founding Monitor with his business partner in 1987, their software suites have not only helped clients internationalise but have also opened up markets around the globe for the SME too.
Mr Davidson, who grew up in Kemnay and moved to Aberdeen during his teenage years, set up Monitor with co-Director Ian McKenzie. Having studied at Robert Gordon's Institute of Technology (as it was called at the time), he came away with a degree in Mathematical Sciences which led him onto on his first job with Conoco. Working on various offshore control systems gave him a taste of what opportunities there were in the industry to help businesses have one seamless system for invoicing, HR, timesheets, planning and forecasting. With nothing in the market that could deliver an all encompassing service, Mr Davidson and Mr McKenzie set about launching their own software suite which could do it all.
"The main backbone of the company is our software called mpower which has evolved since the nineties to become a leading web-based project control system. Monitor is essentially a software products and consultancy firm that offers a blend of project control consultancy and computer programming skills which means companies can have one system that looks after all their key processes."
The success of Monitor's systems is tangible with the return on investment for their clients being extremely quick. Monitor leads by example and invests a large amount of its revenue back into its own ICT investment - in the past 12months, 40% of its turnover.
"Technology changes so quickly and software products have a very short lifespan - 3 to 4 years - so its essential we spend time analyzing market trends and developing product plans for the future. This includes our own processes and making sure we are ahead of the game at Monitor too - it is important we practice what we preach."
With an impressive list of clients including BP, Total, Shell, Wood Group, Sigma3 and Apache, you would be surprised to hear that the main stumbling block for Monitor is that it's an SME. The old age philosophy of ‘size does matter' seems to crop up every now and then and Mr Davidson still finds it frustrating.
"In today's business world, it seems that big companies still feel it is necessary to work only with other big companies. As an SME, this can be a real barrier but more often than not, once we explain how we work and what we do, our size is not an issue."
Monitor recently picked up an award from the Chamber of Commerce for its ICT practices and the recognition from working alongside oil majors had a real impact on the business. With a substantial team of consultants Monitor has assisted businesses around the world.
"We work in Brunei, Algeria, Trinidad, France, Angola, Dubai - the list really does go on. The main target for us internationally has always been the US and we have a base in Houston to grasp the opportunities there. We are attending ADIPEC in Abu Dhabi next month to grasp the business potential in the Middle East and because our systems are multi-language and multi-currency, this has aided our international growth massively."
Working internationally wasn't necessarily one of Mr Davidson's dreams as a youngster. Growing up in Kemnay, his heart was set on being a motor mechanic once he left school - this continued to be his goal when his family moved to Aberdeen and he continued his education at Northfield Academy.
He explained, "I loved taking things apart and discovering how they worked so always wanted to be a mechanic. However, the teachers at Northfield really pushed me into staying at school and then going onto University - I have always been grateful that they took interest and supported me through my education. My mathematics degree was great - I found the logic and numerical aspects of learning very easy. However, languages I have always struggled with which is why it is so surprising to me that a large aspect of my job, and one that I love, is dealing with customers in so many different countries."
The other arm of Monitor is its training division, headed up by Training Development Manager, Alison Wood. Working with the Association of Project Managers (APM), Alison has managed training programmes for a number of industries with support from regulatory bodies including ECITB (Engineering Construction Industry Training Board) and Scottish Building Federation as well as ConstructionSkills and Scottish Enterprise. With the training division placing such an emphasis on personal development and professional training, it is understandable that Mr Davidson places a strong focus on it for Monitor also.
"We are an ‘Investor in People' and we roll out programmes of training to ensure all our staff are up to speed in project management technologies and software. We have a fantastic team at Monitor and both Ian and I feel very lucky to have everyone on board for our plans in the future."
The plans for Monitor are ambitious - turnover is forecast to triple in the next 3 years. With many of the North Sea operators using Monitor's software and with long-term clients such as Wood Group, Petrofac and KCA Deutag who have been advocates of mpower for the past 10-15 years, this is more than achievable. With the next few years focused on growth, Mr Davidson is adamant that he will continue to have a work/life balance with sport being a great way to unwind and spend time with his three sons.
"My wife Aileen and three boys are all sporty - I would like to think I was quite a talented hockey player in my younger years and this seems to have passed onto my sons too with them all playing at a reasonably high level. I have recently joined the gym and find that being able to switch off with my iPod helps me really focus on my working day. Keeping my energy levels up is important and although Ian's role is more on the business development/travel aspect of our work, I still spend a good part of my working life visiting clients around the globe."
Although the internet is now the main tool for how Monitor markets its services, Mr Davidson admits it hasn't always been that way.
"When we first launched the business, it was a lot more difficult to market our products and services as the internet wasn't really that highly regarded. I know I sound old, but much of our early business was generated through word of mouth and was locally based. Today it's a different story, with everything revolving around the internet and international sales and marketing. I'm not complaining as it has resulted in our success globally but I still believe you can't beat the traditional approach of meeting face to face too."
The challenges ahead for Monitor are to continue to crack the prejudices associated with being an SME and to manage the high growth that is forecast for the business.
"We are in a great position to really grasp the opportunities that come with technological advancements - the world really is our oyster."
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