Marketing initiatives pay off for rivals

By RICHARD WOOD

Two Auckland-based health software firms credit an Industry New Zealand-sponsored visit from a US expert, and the Health IT Cluster, for their first joint export win.

Orion and Sysmex Delphic have secured a deal with Health Network Laboratories in Pennsylvania and the deal follows a study visit by Sam Merkouriou, chief executive of health technology consultants Rhodes Group.

Health Network Laboratories will use Delphic's Eclair software for secure viewing of lab test results via the web, and Orion's Rhapsody integration engine to connect systems and streamline reporting.

Merkouriou, a consultant for Health Network Laboratories, came to New Zealand to visit hospitals and learn about New Zealand's health IT firms. He saw the two firms' products working together at South Auckland Health, and recommended them to the company.

Its chief information officer, Jane Erdman, saw no problems with using New Zealand suppliers. Geography was not an issue compared to a company's people, services and product functionality.



The value of the deal, in the low-to-mid $100,000s, is not huge for these software vendors, but Delphic sales and marketing director Mark Cox said it could lead to other opportunities. A number of deals in the US were close to being agreed.



Cox and other shareholders at Delphic own 49 per cent of the firm, with 51 per cent owned by global health sector specialist Sysmex. Sysmex sells the Delphic AP software alongside other Sysmex software. Orion already boasts 1500 sites in the US. Orion and Delphic software overlap, but Orion chief executive Ian McCrae said there was more credibility as a joint bid.

The firms have been working together through the Health IT Cluster. McCrae said the cluster concept was succeeding. Traditional rivals in a small market were co-operating.



Cox said the Cluster's member firms, who now number 20, operate in different niche markets.

"The big picture is winning the business overseas."

McCrae said New Zealand's perceived weakness in being small was a strength because it could bring the interest groups together, where that would not be possible in a larger country.

Cox said Industry NZ had provided valuable sponsorship to get the Cluster up and running. Ernst & Young was now writing a business proposal to the Government to take the initiative to the next level.

He said the key to making the cluster work was the involvement of all interest groups.

"That means the whole industry, not just the IT sector. It needs Ministry of Heath, the universities, the DHBs and the GPs, to achieve what we're trying to achieve here."

The Health IT Cluster attracted 20,000 visitors to a New Zealand food and wine event at the Health Information Management Systems Society conference in San Diego this month. It plans a similar event in Britain next month.

Health IT