Rebounding To Success

Spring, 2002
by Joyce Herring

When times get tough, many companies stay alive by reinventing themselves and finding new ways to leverage core strengths. Three companies featured here have been resilient while reframing where their organizations are going. Building on their core and implementing "smart" diversification have led to survival and renewed success.

GE Power Systems

General Electric (GE) Power Systems' President and Chief Executive Officer John Rice spoke to a large audience on March 26, 2002 at the Business to Business breakfast meeting. GE Power Systems is one of the world's leading suppliers of power generation technology, energy services and management system s with projected 2001 revenues exceeding $20 billion.

The organization grew 31% in the fourth quarter of 2001. What explains this aggressive growth in the face of other energy company meltdowns and how will they sustain it? According to Rice the market for power generation equipment in this country has been phenomenal. Recognizing this surge won't last forever, the company has been on an acquisitions drive to diversify against the day when gas turbine sales take a sharp dip. "We're much more than a power-generation business today," Rice says. "By moving into adjacent areas, we've leveraged our core strengths"

Another major focus has been business abroad. "Our philosophy is to constantly look at the pieces to make sure they fit right ," Rice says . "We are good at grabbing rebounds" is how Mr. Rice explained the success of his company. The company has also been practical and positioned itself in a receptive business environment by moving its headquarters to Atlanta from New York State .

DS Retail Technologies Inc.

DS Retail Technologies Inc. "has had to scale back their vision to give them a second chance," according to the Wall Street Journal of March 27, 2002 (Page R7). It stemmed from the DailyShopper Network Inc., which, three years ago, set out to be the place on the Web where consumers would find out about sales and promotions at stores near them.

The site was up and running quickly with heavy spending on public relations and marketing. But things did not go as planned, as was the case with many dot.com companies, when sales dwindled and investors vanished. Refusing to give up, the founders created a new enterprise, DS Retail Technologies Inc., with a new approach for their best asset – a good idea. Just like DailyShopper, DS Retail features a ZIP code-driven search engine that can find sales and promotions at a store close to you.

Only now, instead of trying to bring shoppers to their Web site, they bring the tool to the shoppers, on the Web sites of the retailers themselves, and earn fees in the process. This way DS Retail isn't burdened with the costs of maintaining its own site or establishing its brand on the Internet. By reinventing itself, scaling back , piggy backing on other Web sites and using its technology with a new orientation , DS Retail Technologies I n c. has turned a profit for the first time!

Triton Systems

In 1985, Triton Systems of Mississippi, Inc. was developing sophisticated electronic devices such as automated current-tracking buoys used primarily by the U.S. Navy and companies such as GE and Exxon. When the defense market slowed down, fate stepped in. Triton was asked to create a training device to educate new automated teller machine (ATM) users. The company seized the opportunity to diversify and created ATMjr Demonstrator, the first battery-powered portable ATM training machine.

First, Triton built a new business on its core engineering strengths, then leveraged its experience with banking products to become a major player in ATM production with an installed base of more than 35,000 devices. In redefining the market for cash-dispensing systems, Triton (now a Dover company) has proven its ability to adapt and now leads the ATM market worldwide. Triton President and Co-founder, Dr. Ernest Burdette, says, "Because we have managed to retain entrepreneurial-minded employees, we have continued to innovate and drive change in the ATM marketplace."

Lessons Learned

Don't give up when things get tough. Consider leveraging core strengths to diversify the product mix through acquisitions, repackage a good idea or develop a brand new product line.

Sources: Wall Street Journal
Business to Business magazine
StartupJournal.com
U.S.Industry Today

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