TARGIT has been progressively profitable in the BI market for years. But if you look at the market profit from a global perspective, it's not even close to being enough, says the company CEO.
TARGIT was just named the number one company in this year’s Computerworld Denmark Top 100 in the category of Business Intelligence. As part of their announcement, Computerworld interviewed TARGIT Founder and CEO Morten Sandlykke. We have translated the original text from Danish to English for you below. You can also find the original article on Computerworld.dk.
Danish IT Company Doing Well – But They’re Ready to Do Better
Top 100: Gartner estimates that the global market for business intelligence software will grow 7 percent this year, for a total of $14 billion. In 2016, earnings are expected to rise to nearly $18 billion. TARGIT, the winner of this year’s Top 100 in the category of Business Intelligence, is looking to grab a significant piece of that pie.
The Danish software company, founded in 1986 and headquartered in Hjørring, posted earnings of $20 million. This amount needs to increase significantly to be considered on a global scale, Morten Sandlykke, TARGIT Founder and CEO explains.
"It's great to see that the development is going forward and we're of course proud to win a Danish competition. But the downside is this measurement of our development over the last eight to nine years could lull us into false security," says Morten Sandlykke, referring to the company's financial growth over recent years.
Like a Medium-Sized Corner Shop
"We're happy and worried at the same time because we feel that even though it's going well, it's not enough. We haven't fully utilized our potential to be an international software company." That’s why TARGIT's strategy focuses on a global expansion.
"We need to change our mindset and we need to understand that when we expanded in the U.S., TARGIT is—despite our 26 years of experience and history—nothing but a medium-sized corner shop here in Boston. We consider ourselves to be a great company and we're proud of our performance so far, but now we need to step it up."
More focus in TARGIT
The international mission is the reason why Sandlykke chose to move to Boston a year ago with his family. TARGIT has two departments in the U.S.: in Tampa, Fla. and Boston, as well as distribution offices in about 10 other countries around the world.
The CEO describes the cause of TARGIT's success: "I don't think that there's any secret to it. It's hard work, and behind the figures lies the fact that we try to keep up with the development at all times."
As a part of the international strategy, TARGIT also tries to focus their activities.
"It's not just a matter of selling software,” says Sandlykke. ”Today, we need to be aware of the value that we create for our customers. And the strategic elements are segmentation and focus," says the CEO referring to TARGIT’s focus on the Microsoft Dynamics segment.
Because such a large part of TARGIT’s business arises out of the use Microsoft Dynamics solutions, it is interesting to hear what the Danish company thinks about Microsoft's growing commitment to advance its Dynamics ERP and CRM solutions into the cloud.
"It is very much about timing,” expands Sandlykke. ”Technologically, we are ready for the cloud, if customers want it. It's just not what we see right now. We readied ourselves for that shift years ago because we thought the change might be relevant to TARGIT, but the emphasis is still on selling licensed software. "
Going for a revenue of $200 million
TARGIT, Affecto, and Teradata topped Computerworld's Top 100 in the Business Intelligence category. And it's not just one year of growth for TARGIT. The company has experienced impressive growth for many years in a row now.
If you ask Sandlykke, the adventure has just begun: "Our growth rate has been about 10 percent for the past years now. The ambition is to double or triple this growth rate. That means that we will reach a revenue of $200 million within 10 years."