Business Essentials: 'Our software is intelligent but the image of our industry isn't clever'

A firm offering data-analysis products needs to overcome the negative PR caused by the failings of others

How can a company grow in a sector with a terrible reputation? That's the dilemma facing Andy Honess, the UK managing director of QlikTech, which specialises in business-intelligence software.

"QlikTech works with firms, including WH Smith, to help them analyse their data to allow for better decision making," he explains. "Our software is inexpensive, fast to implement and easy to use - it does what it says on the tin. But the industry of business-intelligence software has an awful image for over-promising and under-delivering, so we're finding it a challenge even to get in the door of corporates to prove that we're different."

QlikTech International, the UK firm's parent company, was founded in Sweden in 1993 (though it recently moved its corporate headquarters to Philadelphia). It was set up, says Mr Honess, after the founders discovered a new way of consolidating information. "They came up with a product where the basic principle is to grab data from multiple sources and pull them together efficiently and quickly in order to analyse them."

Potentially, he says, the product can help any type of company - from big business to small not-for-profit organisations - where information stored on IT systems is no longer readily accessible. "In many cases, companies have 20 to 30 years of data that they can't get hold of. The result is they make decisions that are as risky today as they were when they formed because they can't unlock the trapped data in their IT systems."

So products such QlikTech's should be in high demand. But, says Mr Honess, that isn't the case. "The problem is, the traditional players [take months to] deliver projects, [which can] cost around £10m. What's more, the success rate of these projects around the world is about 35 per cent, so a lot of money and time is invested for something that may not be very successful."

Little wonder, then, that many businesses don't want to know about QlikTech. "It's frustrating because once we're in front of a company, we can prove what we are capable of, often within minutes and certainly within an hour. You get them really interested in what we can do and how different we are. But unless we can get in front of them, they just don't believe us. They've been burned before or know a company that has been."

QlikTech currently has nearly 200,000 users in 4,000 companies. "They all say we're very different from the rest and there is a lot of loyalty towards us," says Mr Honess. "But while we have a lot of great customers, there are still companies that don't know our name, and don't want to know it, because of the perception of the industry."

One of his customers in the logistics industry uses QlikTech products to work with its own clients. But Mr Honess says these firms tend to be suspicious of the product because it can be up and running so quickly. "Are we at a point where the quantum leap we have made is too far?"

www.qliktech.com

WHAT THE EXPERTS SAY

Clive Longbottom, Service Director at Quocirca, The Research and Analysis Company

"Mr Honess's problem is that the company name doesn't get on to enough prospective customers' radars. Building a brand and profile will create market 'pull', and can be done quite effectively by small companies.

"Mr Honess needs to be seen as a leader in his sector, and one way of achieving this is by becoming a commentator in the media on the business-intelligence market.

"He must also use his existing customer base. Case studies detailing the problem a client had, the decision criteria used and the business benefits gained all help to build a positive view.

"Lastly, QlikTech must ride Microsoft's business-intelligence wave - an area in which the software giant, with its huge marketing budget, is expected to make a lot of noise over the coming months.

"Many of Microsoft's [retail] partners will be looking for alternatives to its product, and Mr Honess may be able to sell through these outlets."

Paul Gostick, Chairman, The Chartered Institute of Marketing

"Many companies in business-to-business sectors tend to focus on the facts and figures, stressing the size, speed and specifications of their product in their marketing. But people buy brands and benefits, not features, and many purchasing decisions are made for reasons that are not purely rational.

"Mr Honess has little problem convincing customers once he has their attention and can demonstrate what his product can do. By building the reputation of his brand, he will find it easier to secure those first appointments. BlackBerry is a good example of shrewd marketing: many wanted one long before they knew exactly what it did.

"The services that QlikTech provides are complex, but its marketing messages must be simple. Highlighting one or two core attributes will help create a brand that is desired. Above all, it must be clear about what business it is in and consistent in communicating its message."

Mic Woodhead, IT Strategy and Architecture Director, Kingston Communications

"QlikTech has a good product but is in a market that is perceived as having failed to deliver the expected benefit, leading to scepticism about new products. So Mr Honess must build the brand and reputation.

"Money-back guarantees are basically good but they may not be enough. I believe the best solution is to work with existing customers to promote his claims and to provide confidence for prospective customers.

"This is an area in serious need of new innovations that can meet business needs effectively."