Nov. 18, 2003 — The recipient of Frost & Sullivan’s 2003 Entrepreneurial Company award is Avexus, Inc.
Avexus, Inc., is a provider of maintenance, repair and overhaul software solutions oriented towards organizations involved in the aftermarket support and services business for highly engineering complex assets. Avexus is being recognized for applying its expertise in the aviation industry to the power industry.
The company has its foundations in the aviation industry with significant market share. The company has demonstrated entrepreneurial spirit to replicate its competencies in the power industry segment. In recognition of its potential to offer winning solutions to the power services segment, and for demonstrating market building ability, Avexus Inc. is the recipient of this award.
Entrepreneurial companies have always been characterized by their passionate belief in their ability to meet specific market needs and rely on product and marketing innovations to establish a stronghold in a market. Innovations invariably catch the established players off guard and become a source of competitive advantage for the new entrant.
In the late 1990s, merchant market opportunities opened up because of deregulation in the United States. Large power companies saw this as an opportunity to increase profits and deploy excess manpower to manage these assets. However by early 2000s, the US energy economy underwent a dramatic transformation with several bankruptcies.
Power companies still stacked with excess manpower, saw an opportunity in farming out their core competencies in operations and maintenance to third-party utilities. Increasingly power companies have also developed confidence in their ability to outsource plant maintenance activities on a routine basis.
The focus of the industrial world has increasingly shifted to service offerings, and large original equipment manufacturers (OEM’s) have also started offering operations and maintenance services.
Third-party O&M solutions providers with long-term contracts, as well as short-term plant maintenance service providers have wrestled with the problem of contract management, integrated financial analysis, scheduling resources from one job to the other, tracking third-party assets and providing comprehensive delivery guarantees to power companies.
Quite often, the only toolset available with corporations has being a mixture of enterprise asset management solutions along with project scheduling software like Primavera or Microsoft Office Suite products. These toolsets are grossly inadequate to handle the complexity of maintenance organization with intricate scheduling, planning and tracking requirements associated with high value, complex assets.
Avexus Inc.’s, Impresa suite, was designed to handle the complexity of contract management in the aviation industry. The need to overhaul aircraft engines, landing gears and other parts for multiple customers, at different locations has been traditionally handled using the functionality within Impresa.
Realizing that the niche product could be tailored to meet the exacting demands of the utility aftermarket industry, Avexus has aggressively worked with clients, industry experts as well as its software development team to capitalize on market opportunities. Several customers have evinced keen interest in the solutions available from Avexus. The company is poised to close breakthrough orders in the power industry segment. The power services market has always been a late adopter of innovative solutions.
However, the markets have typically favored the first mover. In the power industry segment, and one who creates the market, typically keeps it as well. Avexus Inc’s Impresa solution is rich in functionality and provides rich graphical interfaces. As no clear market space classification exists for this segment, Frost & Sullivan has included this product for the services category in the broad EAM definition.
The projected revenues for total world asset management solutions in 2010, for the power industry segment are $356.2 million. Out of this, almost $120.0 million sales are anticipated from the services category. Service companies have to demonstrate not only the ability to complete the work contracted by them but also have to prove that they have the tools and systems to provide guaranteed delivery date compliance. When the risks are large, it pays to be armed with the best solutions.
In recognition of its focus on delivering a unique value proposition to the services sector and creating a new category in the market, Frost & Sullivan is proud to present Avexus Inc. with its Entrepreneurial Company Award for the year 2003.
This Frost & Sullivan Entrepreneurial Company Award is given each year to an emerging company that demonstrated superior entrepreneurial ability in its industry. This award signifies the company’s identification of a unique and revolutionary product solution with significant market potential. Additionally, the award recognizes that the company’s product and marketing strategy is sound and poised for success.
Entrepreneurial ability is assessed using mostly primary research with top manufacturers and end-users in the industry. Frost & Sullivan analyst teams perform extensive interviews with the company in question to evaluate its products, business, and marketing plan. In addition, primary research with manufacturers and software vendor is performed to benchmark the award recipient’s product strength and strategy for growth against established players’ strategies. Also considered are elements such as strategic alliances, expected time to market, and the senior management team. Primary research with end-users is also conducted to evaluate and compare the value of the award recipient’s product solution.
A recipient that is chosen for the Entrepreneurial Company Award must match the following criteria:
* The company must have fewer than 300 employees.
* The company must have identified a brand new and completely unique product solution.
* The product solution must have significant market potential (at least $100 million) and a high probability of reaching its potential in the next 2-7 years.
* Financial and employee based resources to ensure a large probability of success. Financial resources include backing from VCs, IPOs and funding from large corporate partners.
* Protection from competitors: patents, large product development lead time, strategic alliances with key component suppliers, first mover advantage into a specialized area etc.
* Strong plans for marketing: strategic alliances for distribution, relationships with key customers, voluminous positive-press in the media, endorsements from industry experts, etc.