Inc' mail : 200501075481 Stara wersja prezentacji firmy

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Do we believe in our potential?
Jerzy Dryndos CEO Email dryndos_at_logotecengineerin
g.com
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• Logotec Engineering
• founded in 1989, the idea exporting software
• one of not many polish software companies acting
  on the international markets with his own,
  well-recognized brand

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• Due to limited ? capital a very specific
  strategy
• Innovation
• Only new, not-recognized areas
• - usually about 5 years before the market
  becomes
• recognized
• - in Poland first customers for our first
  export
• product (1990) ? 2005
• using only the newest technology

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• First customers in Germany already after 6 months
  (1989)
• Several thousand/200 customers mostly in
  German-speaking countries
• Subsidiaries in some countries
• Profit (after taxes) in the middle of 90th
  ?25-38
• 50 awards for the best software in Poland
• Special award of Cebit in 1997 for Logotec
  PDM9000
• Some product lines like product data management,
  document management systems/workflow, CRM systems
  
• 2001 about 130 people

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• Autumn 2001
• Decision to risk all we had money, position,
  our newly
• created companies in Western Europe
• Target to create a new kind of software which
  will make possible
• building mobile solutions 10 times cheaper
• 100 times faster than considered possible
• all this even by people without programming
  skills
• Public announcement
• the software will become 1 worldwide

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• - we built the software ( in 8 languages,
  including Japanese)
• we started promoting the software (60
  international
• fairs and conferences in 10 countries)
• we started searching partners on some continents
• of course
• without any external financing,
• despite the complete disbelief around us
• and almost killing our company financially

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We won international awards .Net
Application of the Year, Award Finalist (Microso
ft Fusion, Los Angeles 2002) .Net Packaged
Application of the Year, Award Finalist (Microso
ft Worldwide Partner Conference, New Orleans
2003) Best of TechEd Europe, Award
Finalist (Microsoft TechEd Europe, Amsterdam
2004)
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We became 1 Microsoft Mobile Developer
Conference, New Orleans, March 2003
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Logotec Mobile_at_Connector is winning against all
international competitors Best Development Tool
for Pocket PC Microsoft Mobile Developer
Conference, New Orleans, March 2003.
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Bill Gates at our booth Microsoft Mobile
Developer Conference, New Orleans, March 2003
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Innovation Poland's Logotec is one of
world's 25 most innovative firms Logotec
Engineering Group from Myslowice is one of the
world's 25 most innovative software companies,
according to Microsoft Corporation Service of
PAP SA, December 2004
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We financed all the steps by ourselves. We
invested all we had. We radically cut our other
areas (130 ? 70 employees) Currently we are
fighting for financing (Euro 5 millions) to
start building (worldwide) the sales channel.
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Success story, a proof of the innovative
potential of new EU countries or of something
just completely opposite?
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What one need to support innovation? -
supportive attitude - financing - law Do
we really have it???
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• Supportive attitude/financing
• Are you kidding? The Americans didnt do it but
  you want to convince us that your small, Polish
  company will do it?
• Are you crazy? You want to win against all
  Americans competitors? (after already having
  the running product)
• It is just accident (after winning our first
  international award)
• It is too general (not focused on mobility)
  (after winning our second international award)

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• Supportive attitude/financing
• That you won all the awards doesnt mean that
  you will find partners wanting to use it (after
  becoming 1 worldwide in our category)
• You only have small partners - serious,
  established partners will never accept your
  POLISH product (3 months before winning Siemens)
• Japan is 3 years ahead of European mobility. You
  have no chance there (1 months before we won our
  first Japanese distributor)

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Supportive attitude/financing We looked for
additional possibilities to win money supporting
innovation. In Poland are many such supporting
initiatives!!! The challenge (Polish Product
of the Future), supported by Polish Prime
Minister and many others The target of the
contest is supporting the achievements of
creators of innovative products Looks
great! Really ???
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• innovative products which have a chance to
  become known on the POLISH market ???!!!!!!
• Software products can take part in the contest
  ONLY if they are a part of a computer-controlled
  production systems
• Poland ? a country of manufacturing
• software ? US
• if somebody, unfortunately, is so stupid that he
  decides to built software in Poland he should at
  least limit it to Polish market and to
  manufacturing.

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Supportive attitude/financing Due to this
disbelief we still havent any investors we
stopped to talk to investors operating in
Poland. The reaction? If you are so good, how
it is possible that you still havent investor?
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• Law
• Software patents in Europe
• What is the discussion about?
• 3 group of rationales
• freedom, anti-globalization etc.
• nonsense in patenting software inventions
• money ( we have nothing to protect compared with
  Americans)

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• Law
• Software patents in Europe
• What is the discussion about?
• Freedom, anti-globalization etc.
• Sorry no comments

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Law Software patents in
Europe Nonsense in patenting software
inventions Patenting the
mouse-click Even the patents supporters try to
convince you that it will not happen. But
actually is this really an example of the
software-patents nonsense?
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Law Nonsense in software patents
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Law Nonsense in software patents
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Law Nonsense in software
patents Just move the hole to the other end
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• Law
• Nonsense in software patents
• A computer freak try to find nonsense in the
  no-software area to dilute the bad impression
  about the software nonsense
• Unfortunately
• the examples are not nonsense just the
  opposite there are the flagship examples of
  patenting!
• Im not a computer freak

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Law Money (based on assumption that we
cannot compete against USA)
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Innovation and the European reality Conclusio
n The whole discussion is ONLY about one
point we do NOT believe in our potential in
innovation Are you still sceptical?
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• Supportive attitude/financing
• February 2005 PARP decides to assign money
  (which should be assigned for training in area of
  innovative technologies) for
• training of welders
• training of tiles layers
• NO EVEN ONE innovative product gained the money
• Public explanation disbelief that somebody in
  Poland
• would be interested for trainings in innovative
  areas.

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What about others? The Business Week (March
2005) For last 3,5 years the new CEO of
GE, Jeffrey Immelt tries to transform the
hard-driving, process-oriented company into one
of innovation and creativity. He is looking for
an army of dreamers not in USA but worldwide.
He assumes that the people which will mostly
account to this change and growth will come NOT
from US Are we not able to learn? Doesnt our
strategy seam to be obvious?
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What about others? Intel several hundreds
programmers in Poland. Wanted to extend it
(not successful too less innovative ) News
from last 2-3- weeks - Motorola 700
programmers in Krakow - Samsung new
programming center in Poland (700
programmers) - Siemens 700
programmers in Wroclaw All this concerns only
software and mobility Are all the guys just
stupid or what? Do we have nothing to protect???
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Innovation and the European reality What are
we talking about??? Is innovation really a
European focus? The Lisbon strategy The
second Lisbon strategy All Europe is full
of this innovation pitch Are we just
kidding???
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Innovation and the European reality What
Im doing here?? - ALL what I do for last 25
years is about innovation - the main reason
why I NOT have the success I could have
is lack of financing structure in our
country (attitude?) - the main reason Im
LOOSING my investment is lack of a law
protecting my investment (examples?) I wanted
to show you the practical point of view of your
discussion
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Innovation and the European reality Thank
you Questions?