Twenty years ago, business "clusters" were touted as the key to economic development.
And unlike Walkmans and shoulder pads, the buzzword has survived the decades.
This year 3D image consultancy Nextspace linked arms with three fledgling companies thus forming a cluster and is applying the business theory in the hope of spurring a billion-dollar 3D imaging industry in New Zealand.
Nextspace, a not-for-profit organisation, takes the latest 3D technology developed by Auckland company Right Hemisphere and helps businesses use it to achieve their goals.
Right Hemisphere, which is based in Greenlane but sends its software around the world, promised the Government it would nurture a cluster in 3D graphics technology when it secured a US$8 million ($11 million) loan for research and development in 2006.
Nextspace, which was officially opened in February this year, is the execution arm of this commitment.
Chief executive Gavin Lennox says Nextspace's aim is to turn complex data into accessible, easy-to-use business tools.
"We are looking to make a big change in New Zealand by allowing [3D graphics] to be embedded in many industries," he says.
And within just a few months, "cluster members" Urban Voyage, Predefine and Revisia have applied the technology to minimise costs, break into new markets and co-ordinate projects.
For Urban Voyage, Nextspace's cluster proposal was a no-brainer.
The experts in visualising marine projects work with clients, builders and designers scattered across the globe.
They knew about Right Hemisphere the software has won major contracts from aerospace, defence, automotive and medical industries around the world but presumed it was out of reach for their company of five staff.
But under Nextspace's guidance, Urban Voyage has been able to turn screeds of naval architects' drawings into one 3D model which, regardless of their geographic isolation, everyone involved can see from their computer.
Rather than flying across the world to see the boatbuilders, an Urban Voyage client can now play an active part in the step-by-step construction of their dream machine from home.
Visualisations are sent as pdf files which can be opened with an Adobe Reader program.
The recipient can flip the 3D image around to view it from different angles and activate animations explaining how all the components fit together.
Urban Voyage has also created virtual images to show a client what it would feel like to be sitting inside the vessel.
By writing in a textbox, clients are able to comment on the image and these comments are sent directly to the designers and builders.
The chief executive of Urban Voyage, Richard Elliott, says the ability to communicate visually is saving builders and owners huge amounts of money.
"It costs a lot of time and money to make changes once a project is complete," he says.
And Elliott says the investment has more than paid off for Urban Voyage: the company has a number of international clients who will benefit from the 3D imaging.
No other company in the world uses the same technology, he says.
"It's a totally unique and powerful system we're effectively changing the way the superyacht industry works."
The Nextspace partnership has helped heavy industry specialists Revisia develop animated 3D images which produce clear returns for its clients.
An image created for New Zealand Steel, for example, shows the anatomy of a hazardous component of a plant.
The steel company is able to teach workers how to fix the component without having to shut down parts of the plant to show them the procedure which would cost thousands of dollars.
And virtual construction consultancy Predefine uses Nextspace's technology to create prototypes of building projects.
Director Zolna Murray says the 3D images enhance a construction model by including information on time and cost, and speed up the consultation process.
Using animation, the different parties involved in construction can identify potential conflicts in the design, materials or construction schedule.
"Anyone involved in the project can see visualisations and walk-throughs in real time, without needing a high-end computer and CAD [computer-aided design] software expertise. Instead, they can do it over the internet on almost any computer," Murray says.
Lennox says Nextspace may be working with top-of-the-range 3D imaging software, but now it is not confined to the top-of-the-class architects and engineers.
"The performance you can get with a regular computer is the sort of thing you would usually get with a very high-tech engineering computer," he says.
The Right Hemisphere and Nextspace offices are so flash they are almost intimidating all ergonomic chairs and plasma screens but in the school holidays they are buzzing with teenagers building 3D games and animations.
Nextspace is creating a nurturing environment, Lennox says.
The cluster members meet regularly to bounce ideas off each other and there is no shortage of experts at hand, he says.
The company also provides software to the University of Auckland, AUT University and the Wellington Institute of Technology.
"We are building tomorrow's entrepreneurs and engineers," Lennox says.
In May last year Economic Development Minister Trevor Mallard announced that Nextspace will receive $7 million in funding over the next three years.
Lennox hopes to have at least a dozen cluster members signed up by the end of the year and would like to see tens of companies using the software to build their businesses.
It's a matter of showing the business community that the applications of 3D imaging extend far beyond pretty pictures - there's training, support, customer services, sales and marketing ...
"It's the kind of thing that's only limited by the imagination," Lennox says.
Real results from virtual images
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