Thursday, February 16, 2012

Why Irvine?

Irvine, California became the home of Triconex and Wonderware because the original founder, Jon Wimer, owned a house in nearby Newport Beach and looked to the technology friendly Orange County as a place to start a business.  Beginning operations in nearby Santa Ana in March, 1984, it soon moved to Irvine, a master planned community that only incorporated as a city in 1971.  Irvine is today ranked among the most livable small cities in the country.   It attracted most of the auto company design centers by the 1980's, each hoping to catch some of that mischevious 'California cool' in a bottle.   By the 1990's, the Irvine Technology center was home to mighty Western Digital (Where Bill Clinton campaigned in 1992) and PC makers ALR and AST.  

Low cost center - it's not - but home to a diverse, educated workforce?  Check.  And investor cash.  Though the initial VC angel for Triconex lived up north in Malibu, Chuck Cole.

Jon Wimer invited Triconex employees in the early days to his home for gatherings.   Manufacturing supervisor Vern Winger gleefully pulled up in his Red Corvette in the driveway during one such party in 1985.  Mr. Wimer asked Vern how he could afford such an expensive car when the CEO drove an aging used one.   "Because you live in Newport Beach and I live in an apartment" Vern deadpanned.

The History of a Safer World began with a business plan written by Jon Wimer with help from Peter Pitsker.   The original plan had three product lines:

- Tricon safety controller
- Programming software
- Tri-View (HMI Interface)

The requirements of the Tricon controller were outlined in the business plan, including Triple Modular Redundancy (TMR) and hot swapping of modules.  The key technical challenge for the hardware engineers was to prove reliable diagnostics and alarms were reported timely.   Once this hurdle was overcome, and Exxon Safety Test Supervisor Troy Martel signed off on the Tricon in 1986, the company was then in a sales and marketing race it would winlargely because CEO Bill Barkovitz was able to keep raising money to build the infrastructure.  The company had spent much of its original capital developing the Tricon. 

Which of the three original product lines did the Triconex board choose not to fund?   What were the consequences?  What was the opportunity?   And what were the choices?

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