Soft mining market hasn’t softened acQuire’s commitment to its customers

David Stephen, managing director of acQuire Technology Solutions — Photo courtesy acQuire Technology Solutions

Trying to sell a high-priced information-management software system to cash-strapped mining companies is a difficult task at the best of times, never mind when the entire industry is skidding along the bottom along with commodity and metal prices. However, David Stephen, recently appointed managing director of Australia-based acQuire Technology, said not only is his company up for the challenge, it is confident it will come out the other side of this down cycle stronger than ever.

“We’re like everybody else,” Stephen said. “It’s very difficult to sell a licence and earn a dollar. Many companies are treading water, but we are still putting 25 per cent of our profits into research and development, as we’ve always done, because we have to be ready when the market turns around.”

acQuire’s core product is its GIM Suite, a geoscientific information management (GIM) software system that enables mining companies to administer all of their drill hole and geochemical data efficiently in a single, integrated system. Stephen pointed out that data management has become increasingly important in recent years due to the high-tech nature of mining as well as the industry’s growing reliance on consultants and subcontractors to carry out various stages of exploration and development. As a result, data is turning out to be a mining company’s most valuable commodity. Failure to manage it efficiently can mean the difference between success and failure, especially when margins get squeezed.

acQuire’s software is being used to manage information flow at 450 mines worldwide.

Virtually all of the major mining companies employ the GIM Suite, including Teck, Barrick Gold, Rio Tinto and Anglo American. However, one of the challenges facing acQuire is how to make the GIM Suite accessible to smaller mining companies that could clearly benefit from the technology but are unable to afford the high ticket price.

One solution Stephen and his team have come up with is to license the GIM Suite to consultants who spread out the cost across a number of their clients. Like many other large software companies, acQuire is also moving toward a subscription model so that rather than a large, up-front capital expenditure, companies are able to take their subscription fee out of their operating expenses and avoid costly, unexpected upgrades. Finally, acQuire is also moving much of their training courses online and implementing other changes to make acquisition and maintenance of the GIM Suite more affordable.

“Opportunities are really all around us for developing our software for customer needs,” Stephen said. “We like to work very closely with our customers and understand what their needs are.”

Stephen is not afraid to admit that acQuire has felt the pinch alongside their clients in recent years, but rather than get discouraged, they are using it as a learning opportunity. “Good times cover the cracks in your business,” Stephen said. “Difficult times bring them out. It’s good companies that take a look and do something about it and are in better shape when good times come again.”

One area in which acQuire is growing is sales. “For the past few years, our selling has been reactive. The phone rang, and we delivered solutions," said Stephen. "Over the last few years, we have had to be far more proactive. A skill set has to be learned to do that. We always talked about being proactive in sales, but it’s not until it bites that realization sets in.”

Despite market headwinds, so far acQuire has managed to avoid layoffs and downsizing, strategies that many companies employ when times are tough. Stephen said this is a reflection of one of acQuire’s core values. “We consider people before we consider money or profits. Our goal is to get through this period without making anyone redundant for economic reasons," he said. "So far, we’ve been able to avoid that, even though it’s a real challenge to make ends meet.”

Retaining people isn’t just a gesture of goodwill though. Stephen believes it’s a shrewd survival move. Allowing a brain drain during slow times is simply setting yourself up to fail. “We have good people with a depth of knowledge in our industry,” he said. “It’s imperative. They simply must be with us when things turn around. Our philosophy is to weather the storm, be there for our customers through tough times and be prepared when people are ready to buy again.”