As Featured in ERP Today | Written by Mark Sweeny, Chief Exec of de Novo

As my three-year tenure as an expert contributor to ERP Today sadly comes to an end, I wanted my final swansong to promote the wider technology evolution that is geographically occurring across the UK.

With the HM Government policy around ‘levelling up’ coming back into focus, many tech hubs are flourishing. We have the Newport-Cardiff-Swansea corridor in South Wales, which is close to my beating Welsh heart. Throw in ecosystems around Manchester, Newcastle upon Tyne and the Glasgow-Edinburgh corridor, and you will find there’s a lot more going on in the tech space these days outside of London.

In Wales, the tech dragon is well and truly roaring and finding its voice. It comes aided and abetted by a series of business-friendly Welsh Government policies that look to encourage entrepreneurs to develop Welsh based-businesses that actively contribute to the local economy, as well as independent trade bodies such as FinTech Wales and innovative organisations like the Alacrity Foundation.

The Welsh Government recognised early on that the local economy was lagging behind other regions across the UK, and the need to drive growth would only come from transitioning away from the traditional industries and market sectors of heavy manufacturing, agriculture and tourism, to one that is firmly based around advanced engineering and digital technology. In return, this has been unlocking the potential of the rich talent pool that is available in-country, driving specialism and economic growth. It is a generational project, true, but unless started, a journey can never be travelled.

It is a generational project, but unless started, a journey can never be travelled

The markers of intent

The Welsh Government has been clear with its mission: “drive economic growth, productivity, resilience by embracing and exploiting digital innovation”.

Turning strategy into viable tangible action, its intention is to deliver by (1) encouraging collaborative and shared workspaces; (2) recognising the wider role colleges and universities have beyond research and structured education; (3) relentless focus on niche technology skills and products that service long-term growing markets – e.g. cybersecurity; (4) supporting businesses in accelerating adaption to the future of work and skills based upon principles of a green sustainable economy; and lastly (5) improve procurement practices and processes by working with suppliers to deliver better outcomes.

Outcome-based results delivering tangible value include:

• A thriving digital business sector and community, with a mixed ecosystem of small, medium and large technology-based companies
• An ability to capitalise on new areas of digital innovation, to stand out in global competition for new markets and industries and attract new talent to Wales
• Ensuring people have the skills to be able to take the jobs of the future and employers have a pipeline of talent for digital, data and technology careers
• Developing a global reputation for leading technical innovation and a thriving export business
• Adoption of leading procurement practices that will enable Wales to move forward
  

Shy bairns get nowt 

Whilst the mission is well intended, it is pleasing to see that Welsh technology entrepreneurs are not just waiting around, but instead moving forward, investing time and money ahead of the economic curve. As they say in Newcastle, ‘shy bairns get nowt’. 

Part of the game is calculated risk taking and having resilience. We can only build and grow the economy by getting out there and doing stuff, kicking down doors, not accepting the status quo, and refusing to accept no as an answer. 

In South Wales, for example, a partnership between Wesley Clover (the family investment company of billionaire Sir Terry Matthews), the Welsh Government, and The Waterloo Foundation (David and Heather Stevens) has resulted in the Alacrity Foundation. 

In recession the need for economic recovery always starts with government spending

Alacrity actively attracts, develops and promotes graduate entrepreneurial talent to create the next generation of technology companies. However, it is much more than a study course. The Foundation actively links entrepreneurs, corporations, universities, risk capital and government in one network. The programme is unique because no one is required to enter a cohort with an idea. The ideation is instead developed through challenges and problems sourced from the public and private sectors. This approach ensures solutions are designed to address customer challenges at a repeatable and expanding scale.

“Young graduates are a blank canvas and see challenges through a new lens,” says Simon Gibson, CEO of Wesley Clover. “By empowering young entrepreneurs with an applied business and technology curriculum, complemented by more than 100 professional mentors, innovations are being developed with considerable market potential.”

Tech always needs people 

Organisations like Tramshed Tech meanwhile look to bring like-minded startups together through collaborative sharing of experiences and space. First in Cardiff and now in Newport, these spaces are designed for entrepreneurial early-stage startups and collaboration of like-minded technology businesses, thereby facilitating a key ingredient of any successful entrepreneurial community – effective networking. 

The technology industry needs people, and one of the many benefits of regional technology hubs is that they reach communities and ecosystems of talent that many of us did not know previously existed. The days are long gone when the best resource was the perceived monopolistic domain of Oxbridge and that all things had to revolve around London.    

‘In-house’ of the dragon

The Welsh tech-dragon needs to keep roaring. But the often-missed opportunity, and perhaps the most obvious, is that in recession the need for economic recovery always starts with government spending. Central and local government organisations and bodies need digitalisation to deliver services more effectively, and therefore need technology companies and technology service providers to facilitate this. 

Whilst competition between suppliers must be maintained for the markets to work effectively, spend should be targeted towards small/medium enterprises who can actively demonstrate that they are contributing to growing the local economy. 

Government spending in any form should be seen as an investment and not a cost. Just like entrepreneurs, public sector bodies must see their spend as investment to accumulate. If you don’t invest, the only guarantee is that nothing ever changes.

Innovation is the hotbed of SMEs and not large corporations. Large established vendors find it impossible to deliver niche innovation and have a strong reluctance to pioneer new technology in-house as it does not make an immediate cashable return on investment they can demonstrate in-year. Organisation pricing and political dynamics both internally and externally with market expectations, especially at publicly listed companies, always work against them.

Finally, we should proactively challenge thinking around offshoring – why is it that when we are making arguments to develop our own talent, we still consider moving work and money offshore? I have long been vocal about the ‘race to the bottom of the ratecard’, but we can achieve similar financial models through labour arbitrage across the UK, stimulating our own economy. 

Offshoring does nothing for the local economy as we do not see the benefits of monies spent re-entering the local economy. It sounds nationalistic, and it is hard to avoid politics here – but if we are truly serious about creating new ecosystems of home-grown talent then the answer will not be found in this outdated commercial model which does not drive the outcomes we are looking for to grow the economy.   

Why are we still considering moving work and money offshore?

Apprenticeship schemes – ‘learn while you earn’ 

Apprenticeship schemes surely must be one of the key ways forward across the country for attracting, developing and retaining the next generation of talent. I have personally never believed that an individual’s future should rest solely on a score achieved on one hot sunny day in an exam room. What we want is access to the raw material that we can encourage in the workplace to innovate and learn, injecting real life working experience alongside continuing a structured education.  

The Welsh scheme is simple. An individual is employed by an organisation for four days a week, and on the fifth day they are enrolled and attend an approved degree course at a local approved university. The course fees are picked up by the Welsh Government. The individual is employed and can ‘learn while you earn’. They do not leave university with student debt levels which they are then unable to repay.

We know we are short on talent, without getting drawn into the political arguments that all of us in this country know too well. Regional technology offers a multitude of different opportunities and resources, from lower cost base to access to a wider diverse range of talent. We talk about diversity and inclusion every day; well, here’s the opportunity on a plate to do something about it.

Challenge of regional technology – getting noticed

Wales, alongside other regions, has a long way to go in marketing itself effectively to the world. What starts within its own borders needs to break out quickly, both across the UK and also across the world. The bigger the market, the bigger the opportunity – but being able to access that market in a cost-effective way has and remains key. However, effective outward promotion is the starting point, and again this is where government in partnership with business can lead to success. It is a much needed area for further capital investment.    

For our economy to recover successfully, this will always require like-minded individuals to take calculated risks and invest. Regional technology hubs geographically spread and supported by business-friendly policies like those developed by the Welsh Government, bring success, as we make available all the resources we have available to us – innovation, people and capital.  

As for Cymru, the region is well placed to stimulate and grow its economy over many years to come as it transitions to become a market leader in digital products and services, something #wearedenovo is proud to be a part of.

Yma o(07) hyd!

It’s been an absolute pleasure and reassuringly cathartic to have been part of the ERP Today story. What a success it is, and my thanks to Paul Esherwood and team. I have met so many great people and learned so much over the past three years, but the time is now right to pass the torch onto new blood who will bring different perspectives and no doubt even wider diverse thinking. 

One word of advice though, echoing the words of Daniel Craig to the actor who next inherits the 007 mantle: “Don’t be sh*t!”

As for me, ‘Yma o hyd.’  

Mark Sweeny, Chief Executive, de Novo Solutions

Published on May 26, 2022

Well, being honest it is not really an accident, but I always thought the title was really cool and have unashamedly plagiarised it for headline grabbing attention. However, on reflection I have always been an entrepreneur, it just took the first 15 years of my working life to realise it with the last 20+ years being a rollercoaster of a myriad of ups and downs, highs and lows, success and failure over four businesses.

This blog reflects on de Novo’s journey pioneering into the experience economy as we close out our first year of full trading and provide some insight into what it is like to re-climb the mountain that is building a successful sustainable business when you find yourself at the bottom looking up.

There are no short cuts, but experience increases your chances of success as you roll the dice.

So why go again after the success of Certus?

After spending a frustrating 18 months sitting at home, putting on weight, watching every TV box set there is and counting the days tick off from a punitive meaningless no-compete legal clause I needed to get back into the game for my own sanity.

A combination of meeting some wonderful entrepreneurs who I subsequently invested in (shout out to Emma Sinclair, Holly Stephens, Dean Shephard, Paul Shepherd, and Alex van Klaveren) and a visit from Mr Peter Jenkins inviting me to revisit the old stomping turf and our familiar joke around ‘Next year Rodney will be billionaires!’, was enough to put a smile back on my face, take a hard look again at the market for possibilities, and with encouragement make the phone call to my old partner in crime – Tim Warner.

I missed the everyday cut and thrust of our wonderful industry, and not being active was a massive disappointment.

Even more annoying and being brutally honest, I had a massive sense of jealously as others tried to take the ground Certus had previously filled, not in my opinion because they had done anything special, it was just we left a massive void in the Oracle eco-system in the UK when we were acquired. I fully acknowledge this is a negative place and I bare absolute no ill will to others, but you can get yourself into a very bad place mentally when you are inactive and for me the feeling of success had simply eluded me.

Unfinished business

Certus simply had too much unfinished business, and whilst extremely successful, much to mine (and others) endless frustration it did not achieve the greatness it always deserved. Missed opportunity! – absolutely.

Certus was never about just making money, it was about creating choice and challenging the status quo of the tier one management consultancies & systems integrators, breaking the monopoly, searching and demonstrating delivery excellence every single day and delighting our customers at every opportunity. Thinking out of the box was for us business as usual.

It was always about trying to be the very best we could be whilst always reaching for the stars. If we made our customers successful, we would be successful, plus having a lot of fun along the way. There is a lot to be said in being able to work alongside really good people every day whose company you like to be in and being able to smile and laugh together.

Instead of languishing in self-pity (first world problem!), I was brave and went to have a conversation with my wife Natalie to ask if I could try again. I caught her walking through the door when she took one look at my sheepish attempt to open my mouth for her to say ‘You’re going to start another business’ – it was a rhetorical question – busted!

Negotiations followed over a bottle or two of red, with terms agreed including moving back to South Wales to be nearer family as well as promising that the new venture regardless of outcome would be the very last one before we could enjoy a proper retirement together. There is always risk, and success is never guaranteed in this game.
Amazon swiftly delivered the first company assets the next day, being two whiteboards, crayons and stickies of various colours, shapes and sizes with myself commandeering the company’s first new HQ – the kitchen table, which was swiftly moved (under instruction) to the garage. Natalie meanwhile contributed by finding the company name – ‘de Novo’, which in Latin translated means ‘new’ and continues the Certus legacy.

New proposition for a new era

No point just recreating the past as the world has moved on. Pioneering into the experience economy was something I had been carefully watching and subconsciously plotting since late 2019 in the back of my mind.

This time we needed a much larger addressable target market, and my insatiable quest for knowledge and admiration of what Bill McDermott was starting to do when he arrived at ServiceNow just could not be ignored. However, equally knowing that Oracle SaaS Cloud not only remained the foundation of the enterprise, being the most complete and best product around but sooner or later Larry Ellison would also move into the experience economy as market momentum accelerated. This crystal ball prediction materialised in April 2022 with the launch of Oracle ME. (see The Conversation has Changed… | LinkedIn)

The market opportunity was clear, and my enforced sabbatical allowed me to conduct extensive research and further crystalise my own thinking. Numerous conversations followed, even being able to talk to the Godfather of the experience economy himself – Mr Joseph Pine, Harvard Professor, who with Pete Gilmore originated the phrase back in 1999! His research and thinking on the subject was simply twenty years ahead of everyone else.

You build not where the market is today, but where it’s going to be in 5 years’ time

It was clear we were entering a new era of SaaS Cloud, and de Novo was going to be at the front of this thinking in the UK&I, being able to create digital experiences by connecting front, middle and back offices, recognising employees do not work in functional silo’s. Just like a decade ago, we began creating a new language to differentiate ourselves.

The magic recipe in 5 simple steps

1.    Vision – create the vision, differentiated proposition and the backdrop story

2.    Build – focus on building a desirable brand from the outset – ‘quality over quantity’

3.    Fund – ‘cash is king’ – raise, inject, creating runway and time

4.    Assemble – bring together the very best people to turn concept into reality; good people always attract good people

5.    Hustle – leverage the network, let everyone know your back and find that first deal

and then above all else DELIVER and EXCEED CUSTOMER EXPECTATIONS!

The importance of governance

Being a Chief Executive can be a lonely job and the buck ultimately stops with you. With numerous stakeholders to keep constantly satisfied surrounding yourself with people that can constructively challenge you, offer insight and provide that sounding board is critical.

From the outset we moved to secure an extremely experienced Board of Directors led by Tim Warner as the Chairman, backed by Richard Summerfield, Chief People Officer of Hawksford and Clive Swan, former SVP Oracle Product Development to offer guidance and support, whilst always ensuring the necessary checks and balances were in place.

Having NED’s is not a vanity project but rather loading the deck of cards in our favour and increasing our chances of success.

Dealing with rejection

Dealing with rejection is all part of the journey. From losing a deal and we have lost several already (hey we were a bit rusty!), to someone deciding not to join after they had already said yes. But from experience, as one door closes another opens (even if it does need a nudge!).

We deal with disappointment transparently, learn where we can, and move on quickly. It is difficult, especially when people will not even give you a chance, but that says more about them than it does about us.

Doing what we do is not for everyone, and you must taste defeat to know how to win.

The Power of Alumni

Being part of building something special is a very powerful aphrodisiac. It is an addictive drug. The power of a collective vision reaches out to natural human behaviour of wanting to be part of something.

So, it comes as no surprise to build a successful company we immediately went back and surrounded ourselves with as many of the same people from the #certusalumni network as we could, injecting immediately the experience into the organisation from the outset.

Some, quite understandably, did not want to come on the journey again – the Certus legacy casts a long shadow. However, it has been pleasing to see we had a rush of the ex-Certus alumni wanting to be involved, showing the hunger and passion to build something and are prepared to make sacrifices and take risks – that’s our DNA!

For some the timing is not right just now, however the market and opportunity wait for no-one, and we continue to push ahead whilst leaving the door always open for our alumni to join when they are ready later.

Equally we also are looking for new blood and new ideas to stimulate our thinking and push the company to greater heights!

Thinking sh*t up days! – Real value creation

Personally, I enjoy this more than anything and for me it’s the best part of being part of a team. Back to basics, around a whiteboard, just throwing ideas up, the majority falling away, but then some gold emerges and collectively an idea turns into a hypothesis, then a concept and from that into product and/or service offering, and hopefully into revenue. Once the idea is partially crystalised we just go out and sell it.

Serendipity also sometimes unexpectedly intervenes and shines a light on a potential opportunity into a new market sector perhaps often overlooked or never even considered.

It just proves as I have always said you don’t need a swanky innovation lab in the centre of London but it does help if you have plenty of coffee and cake!

No Free Pass back to the top of the mountain – 365 days of tale of the tape

And for those in business development the job is not about managing a procurement process, it is about solving someone’s pain points and generating value. You need to originate – bang on doors (occasionally kick the door in!), network and engage through conversation both face-to-face and digitally through social media. Sales do not just appear! – phone calls, digitally posting and shoe leather are the order of the day, every day, so hustle.

To win our first deal it took 6 months and…

Tenacity, hard work and simply bloody mindlessness, proving doubters wrong and suddenly you find the pipeline coverts and you have a different ‘quality problem’ to solve…

The future is full of opportunity

We are now well beyond start-up with momentum building day-by-day with the de Novo brand established and being recognised. We have beaten the odds again that only one company in ten makes it successfully through its first trading year, and that is cause for celebration.

Any new business needs support, and I cannot thank enough those whether being ex-employees, suppliers, partners or former / current clients and of course both Oracle and ServiceNow who were prepared to help us get started again. It is something we all very much appreciate.

What we are all building here at de Novo is something special, it is not a flash in the pan, and it is going to take time to nurture. I can feel the same buzz as in the early days of Certus, and whilst different, de Novo already feels special. We are not trying to build the biggest company in the world, but we are on the mission for building the very best company we can be.

It is hard work, but it is also incredibly rewarding for everyone involved. We have always said ‘if you come and work with us, no matter how good you think you are, we will make you better’. It’s a bold statement, and not only is it true, but it raises our own game and in doing so we all become better!

My undying thanks for Peter Jenkins for being the magician in the background, Tim Warner, Clive Swan, and Richard Summerfield for their faith and support, and most of all Ian Carline, Tara Dewar, Alex Alexandru, Craig Roch and Hayley Dobson who were prepared to make the jump at the beginning, unleashing their internal entrepreneurial spirit, pioneering into the #expereinceeconomy and being the DNA of #wearedenovo.

Finally, a shout out to our ever-expanding wonderful workforce, my thanks for coming on the journey and respect to all of you.

And of course, Mrs Natalie Sweeny (aka the honorary ‘first lady of de Novo’) for all her love and support. Could not have done it without you.

Game on – here we come, ignore us at your peril, we are not going away!