When Wonderware's InTouch was first introduced in 1989 and there were some initial sales, a competitor was quoted as saying: "InTouch really doesn't do much - but customers love it." 750,000 licenses around the world by 2012, customers are still lovin' it.
If only the search, social network and consumer entertainment companies could come up with such a product? Wow! They might learn some ideas from the early marketeers of Wonderware who implemented the founding vision, like Colleen Kelly and Vickie Stowe. Don Allen led early press tours. Vince Allen became known as the Wizard for his virtuoso demonstrations of Wonderware at trade shows.
Havard Business School may have a 'real world' case study to add to its curriculum. In fact, the Founder of Wonderware, Dennis Morin once spoke to a group of HBS students.
"Colleen Kelly was significantly involved in the promotional success of Wonderware, creating a "bigger than life" image for the company. Even in the early years customers, competitors and the press had the impression that we were a much larger company due to a great extent to the efforts of Colleen and the promotional team." Peter Pitsker, Wonderware CEO
Today's entrpreneur's takeaway from the Wonderware (continuing) legacy? Go big on the idea, not the product! If you know why you are building it, more customers will ask what you are selling.
History of a Safer World
The History of a Safer World is a love story - about business. It describes the rise of two Orange County, California start-up companies, Triconex and Wonderware. They operated locally but defined themselves globally. In an era from the fall of the Berlin Wall to the dawn of the dot.com economy, its an astounding story of entreprenurial triumph, a legacy of an employee-centric culture, and a blueprint for business success in today's rough seas.
Saturday, February 18, 2012
The French Connection Part ll - Triconex and Wonderware
As they say, the times were a changing. Moving backwards promised a brighter future. The world was at the height of the cold war in the early 1980's. Conservative governments were being elected in America, West Germany, and Great Britain. Popular support in those countries to respond to the Soviet Union meant massive increases in government spending for the defense industries, and corresponding policies to liberalize the economy and limit social spending.
One can see the obvious consequences in history of sustaining global armies that stretch empires, but it is less obvious what the price would be if strategies would be accomodation and appeasement. Generally, democratically elected leaders can retain public support for sharp policy turns for about the length of an election cycle at best, but government funding and tax policy tends to build alliances that last much longer.
At the end of the day, politicians will turn to the entrpreneur(s). From the Muslim Brotherhood today on the precipice of power in Cairo, to Francois Mitterwand's France in the mid-1980's, it is the builders and ideas that attract capital to fund their fancies.
When the Socialist Mitterwand was elected in France in 1981, he was not admitted to the club whose members were Ronald Reagan, Margaret Thatcher, and Helmut Kohl of West Germany. They winced, kept their distance, and barely contained publicly their private disdain for the determined and popularly elected new French leader. Of course, in France, Mr. Mitterwand gleefully used French disapproval at the sharp turn to the right of fellow NATO countries to his electoral advantage.
In November, 1982, American voters sent a sharp message of disapproval to the Reagan government. But by 1984, it was morning again, at least for a growing economy in the United States, and buoyed by a Democratic opponent who could have been from central casting, Mr. Reagan coasted to re-election. In West Germany, Mr. Kohl was challeged from the left, especially by media sensation Petra Kelly in May of 1983 who led Die Grune movement to seats in Parliment, setting the stage for confrontation with the deployment of SS-20 missiles in Germany a timely platform for both sides to exploit. The Generals in Argentina ensured the Iron Lady's re-election in Great Britain, with a clumsy attempt to seize the Falkland Isles in 1982.
In France, circumstances forced Mr. Mitterwand to change course shortly intro his first term. Initially he nationalized banks and for private companies into more direct cooperation with his socialist government. The French economy did not recover as did it's Western counterparts, and by 1986, Mr. Mitterwand had to share power with the right-leaning (for France) Jacque Chirac.
Where was French venture capital to turn for investment? The Silicon Valley was attractive, as Intel, Oracle, Sun Computer, and others were starting. Apple Computer had hired Jean Louis-Gassee to start its French entry into the European market. In Southern California, Jon Wimer was raising capital with help from Peter Pitsker in 1983. Mr. Wimer owned a house in Newport Beach, California, and was looking to nearby Irvine industrial park to start Triconex. When Los Angeles based investor Chuck Cole approved the business plan and invested, Triconex was funded and began operations in 1984.
Factory Systems was an automation distributor in France with a venture capital arm looking for the next big thing. By 1988, it owned 10% of Triconex and was distributing the safety system in France. During a visit by Factory Systems executives to meet with CEO Bill Barkovitz at the Irvine factory, Triconex QA engineer Jerry Cuckler told his friend Dennis Morin that it might be an opportunity to chat with potential investors for Wonderware. Among other talents, Mr. Morin had learned French during a New England childhood. There was a meeting and enthusiam on both sides for investment. Factory Systems could now distribute both Triconex and Wonderware in Europe, two exciting companies with "California cool" stamped on the label! The Southern California brand sold througout the world from fashion to automation products!
By the timeTriconex and Wonderware were sold in 1995 and 1998 respectively, French investors recouped at least 6 times their investment, according to investor Dominique Vomschied. Laurent Berns, another Factory Systems executive works for the parent company, Invensys, today. He played a key role managing the Triconex office in Paris in the mid-1990's.
For the movie 'French Connection ll - The Triconex-Wonderware Years" new actors will have to be found to play the roles Gene Hackman and Roy Scheider once immortalized. The script for the sequel is still being written, and will entertain and inform.
Where does The History of a Safer World travel to next?
One can see the obvious consequences in history of sustaining global armies that stretch empires, but it is less obvious what the price would be if strategies would be accomodation and appeasement. Generally, democratically elected leaders can retain public support for sharp policy turns for about the length of an election cycle at best, but government funding and tax policy tends to build alliances that last much longer.
At the end of the day, politicians will turn to the entrpreneur(s). From the Muslim Brotherhood today on the precipice of power in Cairo, to Francois Mitterwand's France in the mid-1980's, it is the builders and ideas that attract capital to fund their fancies.
When the Socialist Mitterwand was elected in France in 1981, he was not admitted to the club whose members were Ronald Reagan, Margaret Thatcher, and Helmut Kohl of West Germany. They winced, kept their distance, and barely contained publicly their private disdain for the determined and popularly elected new French leader. Of course, in France, Mr. Mitterwand gleefully used French disapproval at the sharp turn to the right of fellow NATO countries to his electoral advantage.
In November, 1982, American voters sent a sharp message of disapproval to the Reagan government. But by 1984, it was morning again, at least for a growing economy in the United States, and buoyed by a Democratic opponent who could have been from central casting, Mr. Reagan coasted to re-election. In West Germany, Mr. Kohl was challeged from the left, especially by media sensation Petra Kelly in May of 1983 who led Die Grune movement to seats in Parliment, setting the stage for confrontation with the deployment of SS-20 missiles in Germany a timely platform for both sides to exploit. The Generals in Argentina ensured the Iron Lady's re-election in Great Britain, with a clumsy attempt to seize the Falkland Isles in 1982.
In France, circumstances forced Mr. Mitterwand to change course shortly intro his first term. Initially he nationalized banks and for private companies into more direct cooperation with his socialist government. The French economy did not recover as did it's Western counterparts, and by 1986, Mr. Mitterwand had to share power with the right-leaning (for France) Jacque Chirac.
Where was French venture capital to turn for investment? The Silicon Valley was attractive, as Intel, Oracle, Sun Computer, and others were starting. Apple Computer had hired Jean Louis-Gassee to start its French entry into the European market. In Southern California, Jon Wimer was raising capital with help from Peter Pitsker in 1983. Mr. Wimer owned a house in Newport Beach, California, and was looking to nearby Irvine industrial park to start Triconex. When Los Angeles based investor Chuck Cole approved the business plan and invested, Triconex was funded and began operations in 1984.
Factory Systems was an automation distributor in France with a venture capital arm looking for the next big thing. By 1988, it owned 10% of Triconex and was distributing the safety system in France. During a visit by Factory Systems executives to meet with CEO Bill Barkovitz at the Irvine factory, Triconex QA engineer Jerry Cuckler told his friend Dennis Morin that it might be an opportunity to chat with potential investors for Wonderware. Among other talents, Mr. Morin had learned French during a New England childhood. There was a meeting and enthusiam on both sides for investment. Factory Systems could now distribute both Triconex and Wonderware in Europe, two exciting companies with "California cool" stamped on the label! The Southern California brand sold througout the world from fashion to automation products!
By the timeTriconex and Wonderware were sold in 1995 and 1998 respectively, French investors recouped at least 6 times their investment, according to investor Dominique Vomschied. Laurent Berns, another Factory Systems executive works for the parent company, Invensys, today. He played a key role managing the Triconex office in Paris in the mid-1990's.
For the movie 'French Connection ll - The Triconex-Wonderware Years" new actors will have to be found to play the roles Gene Hackman and Roy Scheider once immortalized. The script for the sequel is still being written, and will entertain and inform.
Where does The History of a Safer World travel to next?
Friday, February 17, 2012
The People who shall lead us
"Why are all the people who know how to run the country cutting hair or driving a cab?"
George Burns
One such former Boston cab driver, Dennis Morin, migrated out to Southern California by the late 1970's. He was joined in the Southland by long time friends Chet Tomsick and Hank Castignetti.
The taxi driver could took jobs at Hughes Aircraft and later Varco Oil Services. The later caught the attention of a struggling startup, Irvine based Triconex in 1984 when Dennis's resume surfaced. Triconex was looking for someone with oil services experience, as that was the market they were targeting. Most of the early engineers at Triconex barely had automation experience, let alone understood what it would take to sell their product to refineries.
Mr. Morin had a good run at Triconex, as a staff engineer he designed the early Ladder Logic based programming interface. He gained confidence in observing the meticulous committment of Triconex to relentless quality and also how adept the executive team was at raising venture capital. Mr. Morin did not leave Triconex in February, 1986 of his own volition. But he left with friends and and some ideas about a product concept and starting his own company. Founded April Fool's Day, 1987, Dennis whimsically gave the company a temporaty name, Wonderware. The name stuck, and the company grew so fast that it nearly missed the growing pains associated with any startup.
Next in the History of a Safer World - The French Connection
George Burns
One such former Boston cab driver, Dennis Morin, migrated out to Southern California by the late 1970's. He was joined in the Southland by long time friends Chet Tomsick and Hank Castignetti.
The taxi driver could took jobs at Hughes Aircraft and later Varco Oil Services. The later caught the attention of a struggling startup, Irvine based Triconex in 1984 when Dennis's resume surfaced. Triconex was looking for someone with oil services experience, as that was the market they were targeting. Most of the early engineers at Triconex barely had automation experience, let alone understood what it would take to sell their product to refineries.
Mr. Morin had a good run at Triconex, as a staff engineer he designed the early Ladder Logic based programming interface. He gained confidence in observing the meticulous committment of Triconex to relentless quality and also how adept the executive team was at raising venture capital. Mr. Morin did not leave Triconex in February, 1986 of his own volition. But he left with friends and and some ideas about a product concept and starting his own company. Founded April Fool's Day, 1987, Dennis whimsically gave the company a temporaty name, Wonderware. The name stuck, and the company grew so fast that it nearly missed the growing pains associated with any startup.
Next in the History of a Safer World - The French Connection
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?
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?
With IPO Cash, Triconex Goes Shopping
Triconex, with less than 100 employees worldwide (90 of them in Irvine), had its IPO in March, 1992. It was a great day for the employees that were hired from 1986-1989 after the re-organization. The IPO raised millions and was engineered by CEO William Barkovitz and CFO Charlie McBrayer. The company was now growing at a 20-25% annual rate, it had turned a profit less than 2 years earlier after beginning operations in March, 1984, an insufferably long time for impatient VC investors. Among those early Triconex employees who did not cash in on the Triconex IPO were Dennis Morin, Phil Huber, Cole Chevalier, Bill Urone, Jerry Cuckler, Linda Ellison and Diane Castignetti, but they more than made up for it a year later at the Wonderware IPO!
With some cash, Bill Barkovitz went shopping to expand the company. In June, 1993, he paid 8 million for Tri-Sen, a La Marque, Texas based manufacturer of turbo-machinery systems. Tri-Sen had been founded by Australian turned Texan Alan Johncock, with technical wizard John Mitchell becoming a partner later. Tri-Sen had already acquired a reputation of excellence in the turbo-machinery industry with reliable low cost systems and value added applications experts.
In January, 1994 , Mr. Barkovitz handed a one million dollar check to Kirk Clark and Phil Blanchard for their Premier Safety Systems company, based in Baton Rouge. Founded four years earlier, it was located in an industry sweet spot and had the right safety systems analysis expertise at the right time when industry demand for safety was rapidly expanding. Now, Triconex could add their market leading safety critical controller with applications expertise.
When Alan Johncock left Tri-Sen after the purchase to pursue riding motorcycles (later opening a museum dedicated to bikes), Triconex operations VP Lam Soon Ving asked Phil Blanchard to move to La Marque to run Tri-Sen. Phil and his wife Vicki reluctantly agreed to commute each week. The Tri-Sen product line was getting expensive to manufacture, and margins were low, especially in the mill industry which was beginning to whither by the late 1990's.
Triconex eventually made a strategic decision not to invest further in Tri-Sen product development, but the value added applications group kept growing as customers gained trust in the market leader. Competition for projects from integrators was not as fierce in the highly specialized field.
In 2007, Invensys, the corporate parent of Triconex, sold Tri-Sen to William Barkovitz Jr., a former Triconex VP of Sales and son of William Barkovitz, who had originally bought the company. The new Tri-Sen attracted some of the original employees and is expanding internationally, particularly in China.
The History of a Safer World has documented the rise, fall, and transformation of these companies, and recorded the best stories!
With some cash, Bill Barkovitz went shopping to expand the company. In June, 1993, he paid 8 million for Tri-Sen, a La Marque, Texas based manufacturer of turbo-machinery systems. Tri-Sen had been founded by Australian turned Texan Alan Johncock, with technical wizard John Mitchell becoming a partner later. Tri-Sen had already acquired a reputation of excellence in the turbo-machinery industry with reliable low cost systems and value added applications experts.
In January, 1994 , Mr. Barkovitz handed a one million dollar check to Kirk Clark and Phil Blanchard for their Premier Safety Systems company, based in Baton Rouge. Founded four years earlier, it was located in an industry sweet spot and had the right safety systems analysis expertise at the right time when industry demand for safety was rapidly expanding. Now, Triconex could add their market leading safety critical controller with applications expertise.
When Alan Johncock left Tri-Sen after the purchase to pursue riding motorcycles (later opening a museum dedicated to bikes), Triconex operations VP Lam Soon Ving asked Phil Blanchard to move to La Marque to run Tri-Sen. Phil and his wife Vicki reluctantly agreed to commute each week. The Tri-Sen product line was getting expensive to manufacture, and margins were low, especially in the mill industry which was beginning to whither by the late 1990's.
Triconex eventually made a strategic decision not to invest further in Tri-Sen product development, but the value added applications group kept growing as customers gained trust in the market leader. Competition for projects from integrators was not as fierce in the highly specialized field.
In 2007, Invensys, the corporate parent of Triconex, sold Tri-Sen to William Barkovitz Jr., a former Triconex VP of Sales and son of William Barkovitz, who had originally bought the company. The new Tri-Sen attracted some of the original employees and is expanding internationally, particularly in China.
The History of a Safer World has documented the rise, fall, and transformation of these companies, and recorded the best stories!
Entrepreneurs - Searching for Scottie Pippen
Scotty Pippen was undoubtedly the greatest straight man in the history of professional sports. He was a superstar - but with a Michael Jordan to lead the enterprise - his teams would be champions. Scottie Pippen was every bit the equal of Dean Martin (Martin & Lewis), George Burns (Burns and Allen). He was brilliant, restless, and people-centric. Mr. Pippen led three different NBA teams to the playoffs, but he would be remembered as MJ's straight man with the Chicago Bulls.
With due diligence, the History of a Safer World, a story of entrepreneurs, sought out the Scottie Pippen of Orange County startups. His name is Phil Huber. He excelled at a string of startups from co-founder to chief technologist. Like Benjamin Franklin, Mr. Huber can't seem to keep still. His present job is serving as straight man to Rick Bullotta, founder of Thingworx, a technology company based in Philadelphia. Phil was also co-founder of Alteer, working with Jim White. But, like Mr. Pippen, Phil will be known for the championship years at Wonderware - playing straight man to the mercurial Dennis Morin 1989-1995.
Phil is often referred to as the youngest guy in the room - for the past 30 years! Working with brilliant companies just after college (Bell Labs), he migrated to Southern California in the early 1980's, quickly assuming software development manager positions at Orange country startups. By 1984, he was managing the software team at Triconex. His team included a staff engineer named Dennis Morin, already known (and perhaps tolerated for the eccentricity) for tinkering on Apple inspired graphical interface machines. At the time, Triconex has a development path for a product called Tri-View. The product would later have a future - but not with hardware focused safety systems company.
"We were talking baseball statistics at the water cooler and Phil was holding up his end of the conversation - all the time he was at his PC typing about 146 wpm of Mozart-esque code that would be the centerpiece of our next release!" Mike McCulty
"Now Norm, whatever you do, don't touch those espresso machines!" Phil Huber to Wonderware Controller Norm Farquhar looking to cut costs
"We needed an program that would allow applications to be shared across networks - a few weeks later Phil delivered NetDDE - a key milestone in Wonderware's growth and solidified our relationship with Microsoft." Dennis Morin
With due diligence, the History of a Safer World, a story of entrepreneurs, sought out the Scottie Pippen of Orange County startups. His name is Phil Huber. He excelled at a string of startups from co-founder to chief technologist. Like Benjamin Franklin, Mr. Huber can't seem to keep still. His present job is serving as straight man to Rick Bullotta, founder of Thingworx, a technology company based in Philadelphia. Phil was also co-founder of Alteer, working with Jim White. But, like Mr. Pippen, Phil will be known for the championship years at Wonderware - playing straight man to the mercurial Dennis Morin 1989-1995.
Phil is often referred to as the youngest guy in the room - for the past 30 years! Working with brilliant companies just after college (Bell Labs), he migrated to Southern California in the early 1980's, quickly assuming software development manager positions at Orange country startups. By 1984, he was managing the software team at Triconex. His team included a staff engineer named Dennis Morin, already known (and perhaps tolerated for the eccentricity) for tinkering on Apple inspired graphical interface machines. At the time, Triconex has a development path for a product called Tri-View. The product would later have a future - but not with hardware focused safety systems company.
"We were talking baseball statistics at the water cooler and Phil was holding up his end of the conversation - all the time he was at his PC typing about 146 wpm of Mozart-esque code that would be the centerpiece of our next release!" Mike McCulty
"Now Norm, whatever you do, don't touch those espresso machines!" Phil Huber to Wonderware Controller Norm Farquhar looking to cut costs
"We needed an program that would allow applications to be shared across networks - a few weeks later Phil delivered NetDDE - a key milestone in Wonderware's growth and solidified our relationship with Microsoft." Dennis Morin
History of a Safer World - Webcast February 23rd!
Am going to be on a webcast February 23rd, promoting my book "History of a Safer World - A Love Story - about Business" Its about the astounding rise of two Orange County companies; Triconex and Wonderware, and how they made history in an era from the fall of the Berlin Wall to the dawn of the dot.com economy. They left a legacy on how to triumph in an age of globalization and a recipe for business success today. And yes, its a love story.
http:// www.chattininmanhattan.com/ featured-guests/ 332-the-history-of-a-safer-worl d
Blog:
http:// historyofasaferworld.blogspot.c om/
http://www.chattininmanhattan.com/
Chattin In Manhattan, with Kim Ward the Chick Gab Chick and Garth Sandiford, Internet Talk Radio.
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