KEY POINTS:
If you suspect your employees are wasting too much time surfing unproductive internet websites, here's a company with a technology product that may internet you.
Savvy businesses first leapt on the broadband bandwagon in the late 1990s. They had to if they wanted to keep up with competitors.
But, as Simon Gamble and Chris Massam realised while working for internet service provider Telecom Xtra, many were floundering as they adjusted their systems to the network.
Managers didn't have the technical skills to fix basic glitches and the cost of seeking outside help was eating into their bottom line.
So, operating out of a humble backstreet office, Gamble and Massam honed a concept that would allow businesses to understand, monitor and control their internet use.
Called Mako Networks, the system was launched in 2002.
Now based in much larger offices in Albany with 20 staff, the company has clients across 18 countries and an office in Britain.
Bill Farmer was appointed chief executive in 2002. He had known Massam and Gamble for 15 years and was working alongside them as a business mentor.
Throughout his varied career, Farmer had owned and run a number of businesses spanning manufacturing, wholesale, imports and exports.
He and his wife Jennie were original waterbed pioneers.
Farmer says technology had always been key to boosting productivity and shareholder returns in his businesses.
He saw Mako Networks as an opportunity to bring valuable information technology systems to a wide section of small to medium-sized businesses.
Yes, the market is swarming with competitors - from small, specialised companies to behemoths from the United States.
But the success of Mako Networks comes down to sticking to its original concept - making local and global networking easy, Farmer says.
The company's product stands out from its competitors because it is simple, automated, eliminates the overheads of external IT support and allows managers to control and monitor employees' internet use, he says.
It also issues its clients with reports showing which internet sites are claiming the bulk of their staff's time. Employers are often shocked to see use of Facebook or Trade Me topping the charts.
"It's widely publicised that there are major productivity differences from broadband over dial-up.
"But the downside is people are online all the time and there's a number of external people who are offering products that engage employees sometimes a little bit more than they should," Farmer says.
Clients such as environmental and engineering consultants Tonkin & Taylor and some branches of Fonterra are using Mako Networks to link their national offices or international branches.
"Whether it's a small site in Tauranga or somewhere in Malaysia, not having that technical expertise but very quickly being able to fix it yourself is of great value."
Mako Networks secured its first commercial customers in 2003. Now it boasts 4000 clients with around 45,0000 people on the system. Farmer estimates the company is growing at a rate of around 300 per cent each year.
But it hasn't all been smooth sailing.
"We seem to have made every single mistake that New Zealand Trade and Enterprise [in their publications for New Zealand companies going into Britain] say you could have made," Farmer says.
Mako Networks opened an office in England at the end of 2003 and found it was much harder to crack the market than expected, despite the fact that small and medium-sized businesses across the world shared similar issues to its New Zealand clients.
"Because it's English-speaking you expect things to be very similar."
But the competition is tight, marketing channels are different and businesses tend to have 10 to 50 times as many employees as Mako Networks' New Zealand clients.
Farmer and his team carried out extensive research in order to adjust their packages for the British playing field.
And they had to come to terms with the fact that while the Kiwi card may get you into a boardroom, it doesn't mean anyone will care after you walk out the door.
"The biggest thing was understanding that people aren't going to buy off you just because you're a Kiwi."
Farmer says the company learned that while New Zealanders are world-renowned for their innovation in technology, they have to make sure the message presented in the meeting is relevant to the audience.
It's easy to overlook the differences in culture and scale because Britain is seen as being quite similar to New Zealand, he says.
"Sometimes it's an advantage being a Kiwi but it's sometimes a two-edged sword.
"The real advantage is delivering on what you say you can do - the proof of the pudding is in the eating."
Conducting business in Britain was a steep learning curve and Mako Networks brought home crate-loads of knowledge to further develop the business into an international brand. In 2005 the company set up a South African base and also confirmed a contract with Telecom New Zealand.
The Mako Networks system is now used for Telecom's small business clients under the Secure Me service, a deal Farmer says brought the company thousands of new customers.
The relationship also links the health network for New Zealand doctors and pharmacists to the Mako system.
Last year Mako signed a distribution agreement with Australian company Netcomm, which markets the system as NetAssure, and the product was a finalist in the Australian innovation awards in May.
Having made a profit in 2007, Mako Networks is now looking at the second stage of its launch into the US.
Farmer has been investigating opportunities in the Middle East and Europe, and several networking companies are also looking at adopting the solution.
To cater for the projected growth, the company plans to take on new staff in research and development and sales.
"We see significant growth, expanding into a major international business. It wouldn't be out of the question to see a company that was as big as Navman was in its heyday."
Mako Networks
* Provides hardware and software that allows users to monitor their broadband connection.
*Launched in 2002.
*Based in Albany.
*45,000 users.
*Contracts with companies including Telecom, Fonterra and Tonkin & Taylor.
*Clients in Australia, Malaysia, Indonesia, Singapore, United Arab Emirates, Bahrain, Qatar, South Africa, Tanzania, Nigeria, Botswana, Britain, Ireland, the US, Canada, Mexico and Fiji.
