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Copyright © 1995-2009 Open Text Inc. All rights reserved. yorktech.ca Tom Jenkins Executive Chairman and Chief Strategy Officer Open Text Corporation Capitalize.

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Presentation on theme: "Copyright © 1995-2009 Open Text Inc. All rights reserved. yorktech.ca Tom Jenkins Executive Chairman and Chief Strategy Officer Open Text Corporation Capitalize."— Presentation transcript:

1 Copyright © Open Text Inc. All rights reserved. yorktech.ca Tom Jenkins Executive Chairman and Chief Strategy Officer Open Text Corporation Capitalize on the Future Digital Media May 13, 2009 Open Text Corporation Tom Jenkins Executive Chairman and Chief Strategy Officer Copyright © Open Text Corporation. All rights reserved. Slide 1

2 yorktech.ca Agenda Open Text Overview Internet Phases Conclusion Questions

3 yorktech.ca  “A good hockey player plays where the puck is. A great hockey players plays where the puck is going to be" - The Great OneGreat Digital Media

4 yorktech.ca Copyright © Open Text Corporation. All rights reserved.Slide 4 Agenda  Open Text Update  The Evolution of the Internet  Web 1.0  Web 2.0  Web 3.0  The Future of ECM

5 yorktech.ca Copyright © Open Text Corporation. All rights reserved.Slide 5 Agenda  Open Text Update  The Evolution of the Internet  Web 1.0  Web 2.0  Web 3.0  The Future of ECM

6 yorktech.ca Crisis? What Crisis? Open Text continues to perform well in the recession Copyright © Open Text Corporation. All rights reserved. Slide 6

7 yorktech.ca Open Text Financial Performance Slide 7 40% Compound Average Growth Rate over past decade - $1 Billion this year Source: Annual Reports & Press Releases, Open Text Corporation, 2008 Copyright © Open Text Corporation. All rights reserved. Slide 7

8 yorktech.ca Large Customer Community Copyright © Open Text Corporation. All rights reserved. Slide 8 Strongest Dedicated ECM Community in the World Copyright © Open Text Inc. All rights reserved. Copyright © Open Text Corporation. All rights reserved. Slide 8

9 yorktech.ca Global Corporate Users

10 yorktech.ca Millions use Open Text software in Canada

11 yorktech.ca Investing $1 Billion into Innovation Slide 11  $1 Billion for ECM Research  2,000 Developers on average over the next five years  Inventing the Future of ECM  Open Text ranked 27 th in R&D spending in Canada last year, up from 37th in one year  Open Text grew R&D spending by 26%, third fastest growth in Canada last year  At current rate of spend and growth, Open Text will rank in the top 20 in corporate R&D spending this year in Canada

12 yorktech.ca Open Text’s commitment to Ontario University of Waterloo - Stratford Open Text has committed $10 million over 5 years to the University of Waterloo for the creation of the Stratford Institute which will: Building a skills base in Digital Media Multi-discipline curriculum focused on Technology, Business and Creativity Tom Jenkins and Ken Coates, Dean of Arts are the founders of the Stratford Campus $60 Million Canadian Digital Media Network (CDMN) Federal Centre of Excellence for Canada in Digital Media Open Text is one of the Strategic Partners of the CDMN and committed $10 million to the project Tom Jenkins is the Chair of the CDMN. $200 Million

13 yorktech.ca Open Text’s commitment to Canada The Canada Project Project will “digitize everything in Canada” ensuring all history and culture is properly recorded, protected, accurate, and available for all Canadian citizens. Open Text working closely with the Canadian Federal Government & University of Waterloo to define and implement a national digital media strategy while pioneering unique innovation for Canada. Tom Jenkins is co-lead with Ian Wilson, the national librarian of Canada. $1 Billion (when approved) Canada 3.0 Conference.  A national dialogue on the future of digital media amongst all levels of government, academia and the private sector for policy discussions and formulation  Assess national capacity in digital media in Canada today and develop collaborative strategies  Keynotes include Ministers from MRI, MEDT, Colleges, Industry Canada, Heritage, CEO of RIM, Corus, Christie, Presidents of OCAD, Ryerson, Carleton, UW, CIO of Govt of Canada and Govt of Ontario  700 participants  Tom Jenkins is Chair of the Conference  $50 Million

14 yorktech.ca How Did Open Text Get Here?  History  Strategy Decisions  Managing Growth  Operations Decisions

15 yorktech.ca The Original “Google” Jerry Yang CEO of Yahoo and Tom Jenkins CEO of Open Text launch in 1995 Open Text provided the web search for MSN, MCI, Yahoo, IBM, etc. Open Text Index was one of the most used web pages in early 90s. Open Text moved into corporate search Today it is a billion dollar company with 4,000 employees

16 yorktech.ca Open Text History – A Canadian Story  Started in Waterloo, Canada 1991  Put Oxford Dictionary online in 1991  1st Internet search engine in 1994  1st Yahoo search engine in 1995  1 st Java based workflow in 1996  1 st ECM Netscape product in 1997  Acquired Hummingbird in 2006  Largest ECM Vendor in 2007  Exceed $1 Billion in 2009

17 yorktech.ca Copyright © Open Text Corporation. All rights reserved. Strategic Decision Points Market Consolidation Internet Decisions DotCom Boom/Bust

18 yorktech.ca The boy rode on the donkey and the old man walked. As they went along, they passed some people who remarked, "it was a shame the old man was walking and the boy was riding". The man and boy thought maybe the critics were right so they changed positions. Later, they passed some people that remarked, "What a shame, he makes that little boy walk." They decided they both would walk! Soon they passed some more people who thought they were stupid to walk when they had a decent donkey to ride. So they both rode the donkey! Now they passed some people that shamed them by saying "how awful to put such a load on a poor donkey". The boy and man said they were probably right so they decided to carry the donkey. As they crossed a bridge, they lost their grip on the animal and he fell into the river and drowned. Management Lesson Management Lesson: If you try to please everyone, you will eventually lose your ass.

19 yorktech.ca Hyper Growth at Open Text 50% 70% Compounded over 12 years (6,000% from startup)

20 yorktech.ca Copyright © Open Text Corporation. All rights reserved. Channel Build Out Technology Lead Time is everything! Tech leads are fleeting

21 yorktech.ca Copyright © Open Text Corporation. All rights reserved.  Hot Market: everyone jumps in!  Competitors everywhere!  What to do? Where to focus?  Where will the best chance for ROI?  How to win the race against time….  Keep your eye on the ball:  Key Decisions  Implementation Issues Managing Hyper Growth

22 yorktech.ca Copyright © Open Text Corporation. All rights reserved.  Building long term shareholder value is not necessarily making a profit every quarter.....  Many large companies develop new products at huge losses prior to recovering investments  Open Text had some $50 million in losses before it made money  Transition to Profit is very Cultural and Painful Time is your biggest enemy

23 yorktech.ca Hyper Growth – Management Team  What happened to that great Exec team?  A manager of 10 is not good with 100.  But…  You can’t manage 10 with a 100 manager!  The more successful mgt is….  the more they put themselves out of a job!  Prep them from day one….  Move over or leave the company.  Requires CONSTANT attention!  Most Important thing to watch of all growth factors

24 yorktech.ca Staff Growth2004 3,000 staff Single Office Multi Office Divisional 10 staff 100 staff

25 yorktech.ca A Key Decision - $500 MM bet

26 yorktech.ca Copyright © Open Text Corporation. All rights reserved.  Mergers can assist organic growth  but they cannot replace core technology  Get people,applications & customer base  Mergers create potential conflicts  culture, strategy and implementation  Best M&A happens before the deal is signed!  Give the Target a worldwide mandate  MUST be done by a small group that is not involved in day to day operations Mergers Facilitate & Complicate

27 yorktech.ca Management Lesson A crow was sitting on a tree, doing nothing all day. A small rabbit saw the crow, and asked him, "Can I also sit like you and do nothing all day long? The crow answered: "Sure, why not. So, the rabbit sat on the ground below the crow, and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it. Management Lesson: To be sitting and doing nothing, you must be sitting very, very high up.

28 yorktech.ca Copyright © Open Text Corporation. All rights reserved.  Easy to be busy in a hyper growth business  Management must stay focused on the business  By definition, entrepreneur usually has the vision  Let others do the legal, financial and other work  Be ready to:  Make the Key Decision  Invest in infrastructure Eye on the right ball!

29 yorktech.ca Copyright © Open Text Corporation. All rights reserved.  Raise money! It reduces risk!  Boot strapping proves nothing!!  Building long term shareholder relationships is key: Tell them what is going on!  Investor types: momentum, long term & value  Analysts follow similar pattern  Find the match that suits you and your strategy  You CAN raise money in Canada from the right places at the right time  In fact, situation in Canada is BETTER than in the US right now! Finance

30 yorktech.ca Copyright © Open Text Corporation. All rights reserved.  1984: University Waterloo  1992: Venture Capital ($1 MM)  1995: Private placements ($10MM)  1996: NASDAQ IPO ($100MM)  1998: TSE cross list ($60MM)  2000: Placement ($150MM)  2001: Buyback ($200MM)  2002: Cash in Bank ($200 MM)  2003: Cash Flow ($60 MM per year)  2006: Finance acquisition ($400 MM) OTEX Financing History

31 yorktech.ca Copyright © Open Text Corporation. All rights reserved.Slide 31 Agenda  Open Text Update  The Evolution of the Internet  Web 1.0  Web 2.0  Web 3.0  The Future of ECM

32 yorktech.ca How much content?  32 million books  100,000 films  2 million songs  10 billion web pages  1 million newspapers Copyright © Open Text Corporation. All rights reserved. Slide 32

33 yorktech.ca Newspapers and dominate *FY05 Company Estimates Petabytes Copyright © Open Text Corporation. All rights reserved. Slide 33

34 yorktech.ca The Web is Evolving to Broadcast From newspaper style publishing to multi-media broadcasting Copyright © Open Text Corporation. All rights reserved. Slide 34 Digital Media in the corporate world is known as “Enterprise Content Management” or ECM

35 yorktech.ca Social Media is the new content Copyright © Open Text Corporation All rights reserved. Slide 35

36 yorktech.ca Social Media Drives Content & Bandwidth *FY05 Company Estimates The amount of content required for one web page written, spoken and video recorded Copyright © Open Text Corporation. All rights reserved. Slide 36 This will have a huge impact on the amount of content……

37 yorktech.ca Bandwidth Issues  2000  dominates (Microsoft)  Web page viewing  Dark Fiber – Net Neutrality  2009  Social networking dominates (Twitter)  Fiber overload  Wireless use rises  2011  Rich media dominates (Bit Torrent)  Bandwidth becomes a major variable cost  Managing content is a key factor for bandwidth management! Copyright © Open Text Corporation. All rights reserved. Slide 37

38 yorktech.ca Slide 38 Phases of the Internet Evolution Copyright © Open Text Corporation. All rights reserved. Slide 38 Copyright © Open Text Inc. All rights reserved. The Cloud Web 1.0 Web 2.0 Web 3.0 Mobile Desktop

39 yorktech.ca Copyright © Open Text Corporation. All rights reserved.Slide 39 Agenda  Open Text Update  The Evolution of the Internet  Web 1.0  Web 2.0  Web 3.0  The Future of ECM

40 yorktech.ca Competing Challenges for ECM Competitive Pressure Performance Sarbanes Oxley Increasing Regulatory Scrutiny Litigation Shareholder Value Growth & Profitability Compliance vs. Copyright © Open Text Corporation. All rights reserved. Slide 40

41 yorktech.ca We wrote the Book on ECM  Available to everyone at this conference and online at Copyright © Open Text Corporation. All rights reserved. Slide 41

42 yorktech.ca Trusted Repository for Enterprise Content


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