Enterprise Division CEO Report

Enterprise Division CEO Report (Enprise Group) September 2021

In his report included in the Enprise Group Annual Report for the year ended 30 June 2021, Enterprise Division CEO Ronnie Baskind shared an enlightening summary of the formation of the Enterprise Division, how it operates and what’s instore for the year ahead.  

For Enprise Group Annual Report

Ronnie Baskind

C.E.O. Enterprise Division

September 2021

Who are we?

The Enterprise Division was formed by the complete merger of the operations of Kilimanjaro Consulting in Australia and Enprise Solutions in New Zealand in January 2020.  Strong improvements in productivity and economies of scale have followed and this is clearly reflected in the profitability of the Enterprise Division.

We continue to leverage our position as MYOB’s largest partner in the Enterprise space, with an overall goal to maintain our position as the “Partner of Choice for MYOB Enterprise Solutions in the Australian and New Zealand markets”.

“One Company – One Team – One Brand”

To further leverage off our strengths and control our costs, the Enterprise Division is rapidly moving towards operating as “One Company – One Team – One Brand”.  The Enprise brand will be reserved for the listed entity Enprise Group Limited (ENS). This will facilitate clearer positioning of the Group as a high-tech software and services investment company. The “Enprise Solutions” brand has already been phased out in Australia and will be replaced by the Kilimanjaro brand in New Zealand over the coming months.

What does the Enterprise Division do?

The Enterprise Division specialises in the implementation, training, support, integration, and further development of MYOB ERP solutions for larger, more complex companies. Our portfolio has expanded from MYOB Exo to include MYOB Advanced and MYOB Advanced People and now includes a suite of integrated third-party products.

The accelerating trend for organisations to use technology to improve their efficiency, and a rapidly growing base of SaaS users in different market verticals, gives us the opportunity to maximise the lifetime value of our large and loyal client base, and to attract new clients. Our offering is particularly attractive to organisations that aspire to a unified cloud-based business and people management solution.

Connected Services, Hosting and MYOB Advanced

Our “Connected Services” approach enables existing clients to leverage off the power of “Best of Breed” SaaS solutions. This also creates an easy path to the cloud for our Exo clients, if and when they want it. Our ExoHosted solution facilitates this, moving on-premise servers to the cloud. The development of new integrations is always on our radar. Our newest self-developed tool, Synkit, facilitates integration between MYOB Exo and several 3rd Party SaaS services, including HubSpot, SalesForce, Smart Freight, Magento, and more.

The MYOB / Acumatica connection is strong, with MYOB represented on the Acumatica Board. The robust and flexible General Ledger capabilities of MYOB Advanced, together with configurable workflows, make this the most powerful mid-market ERP system in its class. MYOB is now the only SaaS vendor in Australia and New Zealand with a fully integrated ERP / Payroll / Workforce Management solution.

MYOB Changes

MYOB, under KKR ownership, has undergone major changes in both company structure and product focus. The Enterprise Division is a strategic partner of MYOB and continues to work together with them to support existing products, new product development, and marketing.

MYOB have changed their strategy in the Enterprise space from a purely channel partner model, to a combination of direct and channel. This is causing some disruption, as MYOB announced the acquisition of two of their Channel partners. The direct strategy is primarily aimed at defined segments, and some specialised verticals. An engagement desk has been put in place by MYOB to ensure fair competition and non-solicitation of our clients or employees. MYOB has reiterated the importance of partners in helping to achieve their mid-market growth ambitions and will continue to invest in building their capability. The partner channel remains a core pillar of their Go-to-Market strategy.

Our Enterprise Division services the top end of the MYOB target market, which is currently a segment that MYOB does not service via their direct channel. Our investment in developing capabilities to service this market positions us very well to remain a valuable channel partner for MYOB.

Financial Performance

The current Strategic Plan of the Enterprise Division is designed to achieve a Compound Annual Growth rate of 15%. The Enterprise Division showed a revenue increase of 24% above the previous 15-month period. EBITDA was effectively on budget, despite the COVID-19 impacts. This meant the division made a significant contribution to the Enprise Group’s EBITDA. (Revenue $15.239m) (2020 $12.251m)).

 

Revenue

 

30 June 2021

30 June 2020 (15 Months)

Enterprise Solutions Division

$15,239,000

$12,251,000

Recurring and Contracted Revenue

In a SaaS world, success is measured by recurring revenue.  A large proportion of the Enterprise Division revenue is recurring or contracted.  Of the $15.239m revenue, $3.321m was recurring and $2.645m was contracted, total recurring and contracted revenue was $5.966m.

Table 1: Recurring and Contracted Revenue

 

Recurring Revenue

Contracted Revenue

Total Recurring and Contracted Revenue

Y/ E June 2021

$3 321 000

$2 645 000

$5 966 000

Our #ClientFirst initiatives are aimed at customer satisfaction, which will preserve and expand on the contracted and recurring revenue.

Our People

The Enterprise Division employs over 100 highly skilled people across Australia and New Zealand. We have the largest team in the MYOB channel and are continuing to grow and incrementally improve. We recognise that our people are our greatest asset, and we are committed to being in the top quartile of employers, based not only on remuneration but also on a strong culture and employee engagement.

Corporate Social Responsibility (CSR)

We take pride in supporting the work done by groups making a difference to the communities in which we operate, and to the people we work with. With tremendous hardships arising throughout COVID-19, we continued our culture of supporting social causes, communities, and other individuals.

Government Assistance

The skills built up in our teams over the last 21 years are critical to our success. Government subsidies received with thanks during the COVID-19 pandemic enabled us to retain these skills, which may otherwise have been lost. Our quick pivot to embrace remote working, acceleration of our on-line learning initiatives, and encouraging and assisting our existing clients to use technology to survive, will ensure not only our own survival but enable us to fulfil our obligation to support economic growth.

The Year Ahead

Despite the prevailing uncertainty caused by COVID-19, the adoption of technology is seen by most companies as essential to survival and growth. This positions us well for the next year. Our recurring and contracted revenue provide a stabilising factor.

The year ahead will see us continue with our current strategic directions, with a focus on:

  1. Adapting to MYOB’s entry into the market with a direct channel.
  2. Implementing the recommendations of our large-scale internal review of processes and systems.
  3. Productivity improvements.
  4. Cost control.
  5. Better utilisation of resources across the Enterprise Division.
  6. Continued recruiting of high-level skilled resources

I would like to thank the Board, my Management Team and all the Team Leaders for guiding our exceptional pool of talented people through this challenging time and producing good results despite these difficulties.

Ronnie Baskind


5 good reasons to choose Enprise

Reason 1: Gold standard service and support. 

Reason 2: Cloud options for every piece of software we sell.

Reason 3: The largest MYOB Advanced and MYOB Exo partner in Australasia, with dedicated sales, implementation & support teams.

Reason 4: A wide range of proven companion products from trusted partners. 

Reason 5: With Enprise, you get MYOB Exo from the people that invented it. 

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