June 24, 1999 presentation of:
Align Solutions Corp:
Align Solutions’ New Paradigm as a Second Generation
Internet Company:
How to Balance Rapid Growth and Rapid Technological Change
Presenter
Richard M. Scruggs, President & Chairman of the Board, Align
Solutions Corp
Moderator
Elizabeth Frank, President, Netcapital Inc.
Panelists
Ralph Doherty, President, Pebblebrook Consulting Inc.
Max Hopper, Principal, Max A. Hopper and Associates
Doug Mangum, Senior Vice President, Silicon Valley Bank, Southwest
Division
Gil Marmol, President, Clarant Worldwide Corporation
Profile
When Mr. Scruggs and his founding team started Align Solutions in 1996 to
integrate the Internet with information technology systems, they merged technical and
creative disciplines to create a unique company. Before becoming a co-founder, Mr. Scruggs
was with Rockwell International before and after it was acquired by Perot Systems. Prior
to Perot Systems, he was with Anderson Consulting, and BSG Alliance/IT.
As Internet applications move into the second generation in which Web sites converge
with information systems, the systems integrators that succeed in the future must change
the paradigm in which they approach their work. Align Solutions Corp., founded by Richard
M. Scruggs, skipped the "first generation" stage of the Internet and adopted the
"converged Web site" paradigm when he founded the Houston-based Company with 9
other people in 1996. The new paradigm and Mr. Scruggs pioneering leadership led to the
necessity for 175 employees in 1999. The Company’s revenues grew correspondingly from
$125,000 in the last two months of 1996 to $11.7 million in 1998. Revenues in 1999 are
projected at $25 million.
Although the Company has been highly successful in its techniques for launching
Web-converged information systems, its success is dependent on being able to manage the
twin challenges of fast-changing Internet technology and fast Company growth. The rapid
acceptance of the Internet ensures growing demand but attracting and keeping the right
talent, expanding sales sources, nurturing a cohesive culture, keeping up with – and
ahead – of technology are key challenges that must be dealt with to continue
uninterrupted growth.
Specific challenges include building internal teams within client organizations,
dealing with emerging competitors, national expansion, and merger and acquisition tactics.
Luminant Worldwide Corp. (Nasdaq:LUMT - news) launches IPO on
September 16 enabling it to acquire eight Web firms: technology provider and
1999 MIT Forum presentor Align Solutions; Web
marketing agencies Brand Dialogue New York (a division of Young &
Rubicam (YNR)
), Interactive8, Integrated Consulting and
Multimedia Resources; online strategy firm Potomac Partners Management Consulting;
technology consulting firm RSI (RSIS)
Group; and Free Range Media, a developer of online business technologies.
Presenter:
Richard Scruggs, President & Chairman of the Board , Align
Solutions Corporation
Richard M. Scruggs co-founded Align Solutions Corporation with 9 other
people in 1996, and launched a new paradigm to integrate the Internet with information
technology systems, technical and creative disciplines, to create a unique company. This
new professional services company, an e-business provider, grew from $125,000 in revenues
for 1996 to reach an estimated $25 million in revenues in 1999.
Mr. Scruggs has over 20 years’ experience in the information
technology services field. He has been a consultant with Andersen Consulting, as well as
on the management team of BSG Alliance/IT. During his tenure with BSG, he held many roles
including managing director of business development, managing director of the Houston
office, and responsibility for the company’s annual planning cycle. Prior to starting
Align Solutions, he was the chief operating officer for RothWell International, which was
later acquired by Perot Systems.
Panel (alphabetical):
Ralph Doherty, President, Pebblebrook Consulting, Inc.
Panel (alphabetical):
Ralph Doherty, President, Pebblebrook Consulting, Inc.
Panel (alphabetical):
Ralph Doherty, President, Pebblebrook Consulting, Inc.
Before forming Pebblebrook Consulting, an organizational development and
management consulting practice, Ralph Doherty spent 30 years with IBM. His assignments
with "Big Blue" ranged from client relationship management to worldwide
responsibility for re-engineering IBM’s method of "listening to the
customer." He led one of IBM’s initial industry distribution projects pioneering
scientific methods and technological applications to reduce client inventory levels. Ralph
served as an ex-officio member of the board of directors of IBM’s largest customer
user group, GUIDE International. At its zenith, GUIDE convened three times annually as a
virtual organization and customer forum and attracted more than 5000 participants around
the world in each conference. Ralph was responsible for defining IBM’s relationships
in this forum and managing IBM’s participation – including recruiting, training,
and supervising the participation of more than 700 IBM professionals worldwide.
Pebblebrook Consulting, Inc. applies a unique, consensus-building methodology
allowing client leadership to identify, define, and prioritize – rapidly – the
factors critical to success. Pebblebrook leads the client through incorporation of this
information into the business plans, strategies, actions and metrics tailored to manage
and achieve success. The firm’s client base is concentrated in three industry
groupings – healthcare, telecommunications, and manufacturing/distribution. Client
size ranges from small physician group practices to large, multinational organizations.
Ralph has a longstanding civic involvement with Dallas. He served as president of the
Leadership Dallas Alumni Association for two terms, and chaired the Community Advisory
Committee to the DISD Business and Management Magnet High School for many years. He
currently chairs The Dallas Forty.
Max D. Hopper, Max D. Hopper Associates, Inc.
Max Hopper founded the firm Max D. Hopper Associates, Inc. in 1995 after
retiring from AMR Corporation. The consulting firm specializes in creating the benefits
from the strategic use of advanced information technologies. In addition to addressing the
overall business aspects of such use, there is a focus on exploring emerging areas such as
electronic commerce, multimedia, networked computing, and data warehousing. Clients
include both large corporate users and technology suppliers.
At AMR Corporation, an air transportation company (American Airlines) and
leading provider of information services to the travel and transportation industry, Hopper
served as chairman of The SABRE Group from 1993, as well as senior vice president of
information systems from 1985. SABRE is a leading-edge technology services business with
revenues in excess of $1.5 billion. Prior to American Airlines, Hopper was CIO of Bank of
America where he led the Bank’s reengineering efforts in the systems and operations
area. Hopper has held executive and leadership positions at Shell Oil, EDS, and United
Airlines.
Mr. Hopper currently serves on the board of directors of the Gartner Group,
VTEL Corporation, USDATA Corporation, Payless Cashways Inc., United Stationers Inc.,
Metrocall Inc., Worldtalk Corporation, Exodus Communications, and Accrue Software, Inc. He
previously served on the boards of firms in the technology, travel and financial services
industries. Additionally, Hopper serves on the board of overseers of The Computer Museum
and is a member of The Conference Board. He is currently chairman of the Advisory Council
for the Graduate School of Management – UTD, and serves on the National Board of
Visitor’s at TCU’s Neeley School of Business in Ft. Worth. He serves on
SMU’s School of Engineering and Applied Science executive board.
Max Hopper has been called the "father of automation" in the travel
industry.
J. Doug Mangum, SVP and Manager, Southwest Division, Silicon Valley
Bank
Doug Mangum joined Silicon Valley Bank in May of 1996 as Manager of the
Texas Office. Prior to joining Silicon Valley Bank, Mangum held management and lending
positions at Chase Bank. Over the past three years, he has been specializing in the unique
lending opportunities for emerging growth technology companies. As Manager of the
Southwest Division, Doug is responsible for providing banking services for targeted
emerging growth companies throughout the Southwest.
Silicon Valley Bank, a $3.6 billion bank based in Santa Clara,
California, has been working with emerging growth technology companies throughout the
Southwest for over 5 years. In May of 1996, the bank officially opened the Southwest
office located in Austin. The Bank has identified tremendous opportunity through early
stage technology companies focusing most recently on software companies and Internet
commerce providers, new telecommunications ventures and the emerging film industry. With
16 years of first-hand experience lending to technology and life science companies,
Silicon Valley Bank has developed the in-house expertise and track record to stay with its
clients through peaks and valleys in their operating cycles. Technology and life sciences
remain the Banks’ core business today, accounting for more than 65% of its
outstanding loans.
Gil G. Marmol , CEO and President, Clarant Worldwide Corporation
Gil Marmol has been the CEO and President since August 1998 of Clarant Worldwide
Corporation. Clarant was formed for the purpose of acquiring a group of existing Internet
and electronic commerce professional services companies providing a wide range of services
throughout the United States. Previously, Marmol was a vice president of Perot Systems,
Inc., Chairman of its Operating Committee, and responsible for corporate development.
Prior to joining Perot Systems, Marmol held a variety of leadership positions during an
18-year career with McKinsey & Co., Inc. He was elected director and senior partner in
1991, and held leadership positions in the firm’s senior partner election committee,
its Dallas, Texas office and global organization practice.
Moderator:
Elizabeth Frank, President, Netcapital, Inc.
Elizabeth Frank has over 14 years combined experience in management
consulting and investment banking, including an extensive background in global business,
new media emerging growth companies, financial risk management, and digital/electronic
commerce strategy for start-ups to Fortune 50 companies. Prior to establishing Netcapital
Inc., a financial advisory and venture development concern, she was with McKinsey &
Co., Inc. and with the International Finance Corporation. Prior to that, she spent more
than seven years in the financial services industry, as an investment banker and
principal, with responsibilities in the origination, structuring, pricing, trading, and
risk management of asset-backed and mortgage-backed securities, and deal origination and
structuring of emerging market corporate finance and public finance transactions.
She currently serves on the board of directors and is acting CFO of
several portfolio companies. She serves on the Executive Committee of the DFW MIT
Enterprise Forum, on the board of directors of the Dallas All Sports Association, The
Family Place, and several other civic organizations. Elizabeth is nationally ranked in
competitive motorsports, and holds national and international racing licenses from SCCA,
FIA/ACCUS, FMAD (Mexico) and VMC. She is presently dissertating on the convergence of new
media, technology and entertainment ("technotainment").
