The company claims in the last six months it has achieved a $1 million-plus annualised revenue stream and aims to grow annuity business to 25% of revenue in the next two years.
Readify managing director Graeme Strange says the ‘IP factory’ is all part of the company’s strategy to become Australia’s first “innovation powerhouse by combining brilliant software development, beautiful design and insightful data”, as it announced following the acquisition of data analytics business Huegin and partnership with UX design house Folk in 2014 and 2015.
According to Strange, it had quickly become clear both Huegin and Readify had a lot of intellectual property, created over the years building solutions for clients, that had not been put to any commercial use.
“The business has since started to pick up the shavings, and has already seen a 61% increase in annuity revenue by adding subscriptions from IP.”
In addition to building up the subscription business from existing IP, Strange says Readify has put processes in place to identify, capture and commercialise future products.
“All employees are invited to submit napkin models on a quarterly basis, which are then evaluated. The strongest ideas are put through a specific commercialisation process to get them to market, with staff rewarded in the process.”
Strange says a strong incentive plan for staff has been put in place. “Our staff are very entrepreneurial already, some already pursuing their ideas as side projects - so this is also a way to accelerate the long process of commercialisation with them.”
Readify says seven products are already in different stages of development, with three solutions co-developed for customers as part of the company’s services business, three products acquired with Huegin and “one light bulb moment”.
But, despite the focus on IP, Strange says Readify won’t stop being a services business first and foremost.
“Many tech companies have made the transition to product and managed services and then let the original services business die or used it as a cash cow to fund the product development. We definitely won’t shoot the stallion after getting a few good foals.”