https://www.buzzsprout.com/178363/5477248-episode-9-the-man-who-created-bunnings-first-online-system-and-then-floated-a-technology-company-adrian-floate?play=true
Now listen some of you haven't listened to this yet. Here is the SUMMARY
You may have been hearing Warnies questionable mud thrown at AF and his management. But what he will not tell you is that AF has been learning and growing and CRO is the culmination of it all for the last 20 years.
AF HISTORY1990s - AF developed the first ordering system online for Bunnings in his 20s. Basically sold it to Bunnings. We know how big Bunnings is today but this was a time when amazon was nothing and Bunnings was smaller. AF said to Bunnings you should sell on the internet. They laughed at him! He convinced them to take it on and Bunnings destroyed BBC hardware pretty much through his idea of online ordering.
- AF listed a company on the ASX at the age fo 24 (in the late 90s - not a common thing then). He has had the experience of management at that level at age 24!
- in 2002 - AF had great software was in the US - he heard a speech (at a conference) by a guy called Tim Draper (Billion tech backer who has backed Skype, Baydu and Tesla) AF got a meeting with him and Tim said I will give you 20 million (for 20%), but you gotta come to the US and do the work here. Given 6 month window. AF turned it down (family reasons). But AF learnt the importance of backing and capital.
BUILDING BLOCKS - AF has learnt building blocks throughout his last 20 years.
1. Collaboration - AF learnt from Bunnings about the idea of EDI (electronic data interchange) which means two computer system talking to each other - collaboration.
2. Transition to everything digital. AF asked questions like "why not sell online", why can't people get paid immediately. He has learnt the efficiency created when everything does digital.
3. Global platform
Global platforms are the way forward - thinking Facebook, Youtube etc.
CRO CULMINATION- the building blocks are the culmination and learning for the last twenty years!!
1. Collaboration: in Cro today as AF is working toward Small business to be able to compete with big business in terms of the data interchange they work with. This is how CRO will be able to work across the whole chain - from Manufacturer to consumer
So when someone asks, "what about the competitor Xero?", they have not understood the scale of what CRO is doing. CRO is integrated with all these systems as they work across the whole chain. This underlines the importance of the IP for the technology form APPstab. Collaboration and this open exchange of data is vital. All systems should share data.
2. CRO is making the transition to digital. Accounting to go digital - It is not viable to have a book-keeper, when payments can be reconciled electronically or to have to go 50 different websites to buy things. Reconciliation process happens electronically, through one receipt.
Uberification. Imagine you book a plumber and at the same time you give CC details. After job is done, similar to Uber there is no payment it just happens. This is the perfect time for greater digital transition, post covid.
3. CRO are a building a global platform from Australia
Global platforms have one thing in common - they connect human beings to communication. CRO are building a platform for business communication and payments collaboration. People join the platform (since this platform integrates) and invite others to participate in the process, they then become users and so the networks continue to expand. Australian companies tend to not go global. Have a look where Atlassian are listed (in the US). Where did they get their money from? (the US). AF wants to build a global platform from Australia.
The importance of Australian people - The team at CRO that stuck with them through reg issues and compliance are getting rewarded through shares and ownership. "Owners get out of bed at 6am and work hard" Cro wants owners. Their people will help them go global.
How will they go global? Through payments space. If you access to this payment tech get Spenda. They are not selling software, they make money in teh payments space.
The next 3- 6 months will truly be massive.
Consider
- the merger.
- The Visa/fiserve partnership. Increase in ARPU.
- Possible acquisitions (in the reg space).
- Going Global
DYOR and all that.
(20min delay)