Presentation at CUBCCE Conference 2019, Budapest

1. ARCHIFM SPIN-OFF STORY
Adam Korbuly
My personal experiences

2. WHAT IS ARCHIFM?
 ArchiFM = Facility Management Software system (CAFM)
 Started in 1998
 Graphisoft
 Started by me as Key developer
 Client base: large enterprises
 Service oriented product portfolio
 Technically difficult product
 Spin-off: 2005

3. ARCHIFM – THE BEGINNINGS
 Graphisoft felt the market demand
 Enthusiastic developer – pure luck
 Internal consultation support
 Department built for it around me
 Professional product development
 Large group of software developers
 Product Manager
 Experienced development leader
 External consultation firm

4. ADDED VALUE OF A LARGE COMPANY
 Professional Strucutre of
 People
 Roles
 Processes
 Backoffice
 Financing product development
 Using existing global channels
 Strength at tenderings

5. ARCHIFM - ACHIEVEMENTS
 Final product
 Software
 Marketing
 Documentation
 Support
 ArchiFM became popular in Hungary and Worldwide
 Rapid market development
 €2-3M global annual revenue
Success Story – really???

6. WHAT LED US TO MAKE A SPIN-OFF
 The product needs different behavior from company’s defaults
 Service orientation vs Boxed product
 Accounting has to be aligned (related sales accounting)
 Small organization within a large organization -> Spin-off?
 Large Enterprise problems:
 Increased cost of operation
 Defocusses from core product portfolio
 Key people got unmotivated

7. SPIN-OFF AND ITS RESULTS
Pros:
 Reduced cost of operation
 Team optimized to the tasks
 Optimized workflows – better than before
 Client base can be transferred partially
 Business decisions optimized to product type (service oriented)

8. SPIN-OFF AND ITS RESULTS
Cons:
 Enterprise salaries in a Startup???
 Risk taking people are required vs Enterprise Mindset
 Many workflows to be developed – far different from previous
 Financials
 Backoffice
 Roles and responsibilities
 Workflows
 Financial difficulties
 Risk of reduced client-base
 Small company at tenderings
 Market divided with other former partners abroad -> nearly lost international
presence

9. HOW IS IT DIFFERENT?
 Ready product vs initial development cost
 Already large organization vs organic development
 High risk and responsibility vs plannable risk
 Very fast happenings vs you get used to the changes
 Already high expectation vs expectation grows with you
 Small mistake = instant death vs mistakes happen as you can handle them
Feeling of:
 1st child adopted vs you get experienced while growing your child

10. SPIN-OFF REQUIREMENTS
 Highly risk-taking and entrepreneur mindset
 Strong dedication and belief
 Key manager that has a strong respect from its team
 Well planned and rapid action – pro-activity
 Initial financial and communication support to take over liabilities from
source organization
 Sometimes though decisions without hesitation
 Involve investors!!!
Not an easy way but can lead to success

11. THANK YOU FOR YOUR ATTENTION
Adam Korbuly
+36 20 579 0119
akorbuly@orthograph.net