Methodware helps manage risk in risky times

Media Release April 26th 2009

Methodware helps manage risk in risky times

Wellington company Methodware has successfully re-built its next generation of risk management software, ensuring the company remains among the world’s best and positioning it to win a slice of the significant growth predicted in the governance risk and compliance software market.

With funding of $797,000 from TechNZ, the business investment programme of the Foundation for Research, Science and Technology, Methodware has completed the largest research and development (R&D) project undertaken by the company in its 16-year history.

CEO Dr Chris Moxon says the company’s Enterprise Risk Assessor (ERA) software has been re-architected, using advanced, best practice technologies and incorporating additional, market-leading functionality.

The re-designed software is being rolled out to Methodware’s existing clients around the world and Dr Moxon says there is already evidence that it will also bring in new business, despite the economic recession.

“Our sector is as volatile as others with many businesses deferring investment decisions but, at the same time, there is a growing awareness of the importance of managing risk.”

The TechNZ investment, secured in May 2007, has been crucial in helping the company achieve its goals.

“We needed a product that used state-of-the-art technologies and would easily co-exist with other applications used on our client’s systems. The optimal R&D investment timeframe was ambitious to the point of being almost cost prohibitive,” says Dr Moxon.

“We couldn’t have done it without TechNZ support. In addition to the new product, there has been an added benefit of building significant new knowledge and skills within our company.
We now have people who are up with the best in rapid development technologies and are also able to train others. The project has improved our game significantly.”

Foundation Business Manager Joseph Stuart says the TechNZ investment in Methodware represents excellent value for money. “The company has strong market positioning and TechNZ investment has allowed it to get the new product to market faster, providing the opportunities for continued international growth. The new company capability ensures that Methodware is well positioned to compete over the longer term and reinforce its position as the world’s leading risk management software provider.”

Methodware has staff in New Zealand, Australia, the United Kingdom and the United States. It began in 1993 as a joint venture with Ernst & Young to develop what Dr Moxon says was perhaps the world’s first risk-based auditing software. Methodware went on to sell the application to a major British bank and subsequently to other significant companies in a variety of industries.

In July 2007, Methodware was bought by Christchurch-based Jade Software. Dr Moxon says the sale to Jade strengthened Methodware in many ways beyond the balance sheet and the company is now ‘very well positioned to compete on the global stage’.

Methodware has also leveraged off New Zealand leadership in its field with Standards Australia and Standards New Zealand writing the world’s first generic risk management standard, ANZ4360. An ISO international standard is currently being developed, building on the Australasian initiative.

Around 90 per cent of Methodware’s revenue comes from exporting with its applications used by 1500 customers in 80 countries. Around 600 of them use Methodware’s ERA software and the rest use the company’s two other core products, one for internal auditing and one for IT management and control.

Methodware’s sales are geographically spread with revenues split between Europe and the Middle East, North America, Asia/Pacific, and South America. “We’re not dependent on any one market. We are experiencing slowdowns in some markets but not in others and not all at the same time,” says Dr Moxon.

New Zealand Trade and Enterprise has also supported Methodware’s growth and Dr Moxon says government support for a medium sized company like Methodware has been crucial.

“The NZTE support was invaluable. We were able to build a market presence in Europe much faster. Help with office establishment and operating costs and the access to local market knowledge really helped.

“We are a New Zealand company and of a size where we really need the assistance to get established in offshore markets. We had a proven product, were profitable and were looking to expand internationally all of which helps lower the risk from the government’s point of view.”

About the Foundation:

Website: www.frst.govt.nz

The Foundation for Research, Science and Technology invests over $530 million a year on behalf of the New Zealand Government in research and development to enhance the wealth and well being of New Zealanders.

TechNZ is the Foundation’s business investment programme. It puts $50 million a year into research and development by New Zealand companies, targeting key sectors of the economy with strong growth potential including specialised manufacturing, information technology, biotechnology and food and beverages.

ENDS

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