TimeTec Cloud - A Letter to Resellers

Dear Valued Resellers,

We all seek stability in a volatile business world all the time. 

Most of us are not accustomed to a roller-coaster pattern of sales, because even though it evokes excitement to some people, it could cause a heart attack in others. 

The fast changing nature of technology makes business sustainability a constant worry for business owners, regardless of the stability and profitability of their existing industry. When a certain technology goes obsolete, it could drag the whole industry down with it, and you may find yourself out of business almost instantly.

We are fortunate. Our biometrics business started to boom in 2005 when the technology stabilized and the market was ready to accept the new technology, and so far we have registered a Compound Annual Growth Rate (CAGR) of 40.68 percent from 2005 to 2011. But new technologies are quickly becoming old; we can't just expect the line on the chart to continue going upward as we please. Eventually it would slow down, progress into a plateau and even start a downhill progression if nothing is being done to improve the trend; this is the norm for most businesses. 

It occurred to me that a recurring revenue business model could be the solution to our worry. When we deal with hardware, customers would buy once and only repurchase when their hardware encounters irreparable damage or a breakdown, or if they happen to open a new branch. In this situation you would be just hoping that they will stick to your brand. Even if you have secured some maintenance contracts and received recurring fees every year, the revenue contributed from this segment is minute in comparison. However, a recurring sales model might seem beyond our reach for our industry. 

A few years back when I was contemplating on the cloud computing technology concept, it transpired to me that we could offer TimeTec Cloud to be seamlessly integrated with our FingerTec products, as a recurring revenue business model to be operated concurrently with our current business model.

We built on that idea when we planned and implemented a CRM system four years ago to improve our sales and support system. We settled on Salesforce.com without much argument, and our exposure to the world's most successful Software as a Service (SaaS) model, gave us a hands-on experience from the world’s best. To be the best, we learn from the best.

Unlike Nokia that was promoting their cell phones as hardware only, Apple which came out with their smart phones in 2007, offered various services which included apps and content uniquely integrated with its hardware to guarantee recurring revenue. And, without much struggle, they became the most valuable company in the world.

Equipped with our own vision, it took us almost four years to materialize it. Of course, as our valued resellers, we have factored you into our plans for the future of FingerTec. Successfully changing goals from a product-based company to a service-based one will take one large and contributive effort from all parties - preparation and foresight is essential in this effort.

And along with TimeTec Cloud, you may even want to start considering a change in your product sales model to a rental based business model. 

The future is now, and the question is: Are you up for joining us? 

Teh Hon Seng

Chief Executive Officer

by Teh Hon Seng, CEO, FingerTec HQ