HANNOVER: Centre of IT universe

Europe Business Review, March, 2000 by John Shaw

The biggest show of the world's biggest industry is not at its technological and financial centre - the United States - but in an ancient city in Germany.

While Silicon Valley and Wall Street together excel in making blue chips out of microchips, and hard cash out of software, Hannover is where the world goes each year to see what now makes it go round.

CeBIT, the world's biggest expo of the world's fastest growing industry, is held each year (February 24 to March 1) in the 800-year-old north German city, a place now dedicated to exhibitions of all kinds.

Before the IT age it was famous as the home of the Hanoverians - a dynasty which provided British monarchs, from King George I to Queen Victoria.

CeBIT's first show in the century of the Internet will have more than 750,000 visitors, from computer nerds to E-commerce executives. All show space was sold months before opening day.

Australia's presence was modest but punching above its weight in some sectors of software and computerised electronics.

This year Austrade's CeBIT Incubator initiative, started in 1999, again helped Australian companies to use CeBIT, the world's largest window on IT, to the full.

The Austrade programme provides CeBIT first-timers with the experience of being at a major international exhibition with support facilities and at a relatively low cost.

"The Incubator programme is a learning platform which helps companies develop a better feel for the international ICT industry, learn market success factors, develop contacts, and understand investment and marketing trends," says Peter Frank, Austrade's Senior Trade Commissioner in Frankfurt.

CeBIT, which attracted about 750,000 visitors in 1999, provides a panorama of potential customers and of the European and global markets for IT systems and services.

A director of the Catalyst Design Group, Hugo Davidson, who took part in the Incubator scheme last year says "Prior to going to CeBIT with Austrade, we had a business plan focused around an assumed customer base and a certain market.

"We returned from CeBIT with a totally different perception and immediately altered our business plan to reflect this new insight. The Incubator visit included an excellent briefing to help prepare for the experience."

Sydney company Brookstone Pacific attended CeBIT last year and changed its business perspective as a result of feedback it received there on its "paperless office" software.

Company director Errol Pollnow says "We got some fairly critical comments at CeBIT which were useful in improving our technology."

Features of Austrade's programme for the CeBIT 2000 Incubator visit include a pre-exhibition briefing and training workshops, use of the Australian national stand lounge, and access to a multilingual mentor with marketing skills at Hannover.

This year the Incubator Programme companies were Cardsoft and Spectrum Information Services, both of Sydney.

Cardsoft serves the electronic commerce and payment industries. Its markets include financial institutions, payment terminal manufacturers and telecom companies with smart card products.

The Cardsoft core product is Cardscript, launched in 1993, which is a rapid application development tool for the payment terminals. Cardsoft also provides application development, consulting for electronic commerce, and a serverbased solution for connecting business systems to banks for electronic credit and debit.

Spectrum's major product is Topaz, a customer relationship management solution. Spectrum is a high-tech IT solutions provider with sales to blue chip corporates and government departments.

Austrade has assisted about 200 Australian companies to paiticipate in CeBIT over the past three years. Exhibitors on the 1999 Austrade national stand reported sales expectations of more than $125 million over the following 12 months as a direct result of their CeBIT '99 participation.

Since 1997, Australian companies have reported writing $100 million worth of CeBIT-linked business, with another $250 million under negotiation.

The CeBIT 99 national stand exhibitors reported launch of 68 new products, identification of 127 potential distributors, negotiation of 6 licensing agreements, intention to open 11 new marketing offices in 5 international markets, and $17 million sales in the first six months following the expo.

CeBIT in 2000 again provides the best stepping stone for companies wishing to break into European and global IT markets.

Exhibiting at CeBIT is essential for IT exporters needing to have a company and product recognised as a serious player in the global market.

At CeBIT 2000 there were 21 companies booked for the two Australian national stands of which 10 had exhibited at Hannover before.

IT companies booked for the Australian national software stand this year included: Blaze Corporation, Econsult, Maus Business Systems, Random Computing, Southrock Software, Jumbomall.com, MulitEmedia.com, Webstation Network, Australia Street Consulting, Gold Coast City Council, Scientific Management Associates Australia, and Zoom Systems.