What happens when a group of companies collaborate as an industry body to find solutions for their shared challenges? Good things happen.
In a recent blog post for NZTE, Andrew Radcliffe, Chair of the New Zealand Telematics Alliance, shared how collaboration in this industry is giving New Zealand telematics companies a competitive edge.
Andrew writes that the Telematics Alliance helps its members by sharing knowledge, insights and complementary technologies. Together they are working smarter, exploiting their strengths and sharing technology, IP and R&D costs. This benefits not only the members of the Alliance but also the wider New Zealand telematics industry.
So what is telematics? Telematics is a technology that monitors moving things (such as cars and trucks) and combines it with GPS and wireless technology to transmit information and improve efficiencies. It is a well-known tool for efficient fleet management as it can track the data of each vehicle in a fleet, allowing fleet companies to monitor the performances of their drivers, get an accurate picture of driving patterns, and even reroute drivers to avoid traffic problems. It is estimated that in the US alone the number of monitored vehicles will increase from 14.7 million in 2014 to 37.9 million by 2020.
As we move towards a more connected world, telematics is becoming an increasingly popular, competitive and growing industry with applications in many other industries. From apps that can tell if you your car is in need of a service to car insurers that will give you a discount on your premiums based on your driving behaviours, telematics is a hot technology.
To facilitate collaboration in this sector, Callaghan Innovation and NZTE brought six leading New Zealand telematics companies together in 2014 – Blackhawk, Smartrak, Xlerate, Telematics Data Systems, International Telematics Holdings (ITHL) and Imarda – resulting in the New Zealand Telematics Alliance.
The criteria to join the alliance include being export-focused and willing to share knowledge and market insights.
While most members have formed collaborative partnerships, two telematics companies in the Alliance – ITHL and Imarda – realised that merging would benefit them the most and in October this year they formed Coretex.
Selwyn Pellett, CEO of Coretex (previously Imarda’s founder and CEO), says that both companies have been experiencing strong growth in North America, Australia and New Zealand, with a number of recent strategic wins.
“As a combined entity we are on track to meet our full year revenue target of NZ$30 million, which will represent year-on-year revenue growth of more than 50 per cent. Over 72 per cent of our total sales come from outside of New Zealand, of which 45 per cent is generated from North American markets. The merger brings together our sales geographies, channels, technical capabilities and vertical markets.”
It seems that Henry Ford was right when he said, “Coming together is a beginning; keeping together is progress; working together is success”.
Companies interested in joining the Telematics Alliance can contact Jonathan Miller.
Updated: 10 December 2015