Orion Health

[BlackPeter]

Sounds promising.

http://www.stuff.co.nz/business/indu...r-french-deals

Well, I guess it is good they have something to announce. On the other hand - they called it in the radio this morning a "trial" and the article talks about a 15 month contract - i.e. they still need to provide evidence that they can put a solution together which works for this customer ... and which works in a French speaking environment.

Succeeding in France is not easy for any service provider (what Orian basically is) unless you have enough people speaking their language. Does Orion have all these (better native) French speaking IT specialists on standby? Or do they first need to ramp up their workforce and integrate these people into their company while the clock (remember 15 month contract) is ticking?

I wish them well, but changing course from an US target market to France is more than replacing two words in the code and recompiling ...

[kiora]

Well, I guess it is good they have something to announce. On the other hand - they called it in the radio this morning a "trial" and the article talks about a 15 month contract - i.e. they still need to provide evidence that they can put a solution together which works for this customer ... and which works in a French speaking environment.

Succeeding in France is not easy for any service provider (what Orian basically is) unless you have enough people speaking their language. Does Orion have all these (better native) French speaking IT specialists on standby? Or do they first need to ramp up their workforce and integrate these people into their company while the clock (remember 15 month contract) is ticking?

I wish them well, but changing course from an US target market to France is more than replacing two words in the code and recompiling ...

Orion Health started a trial in Spain in June last year.Success maybe more reliant on functionality than language?
https://orionhealth.com/case-study/a...a-region-wide/

[BlackPeter]

Orion Health started a trial in Spain in June last year.Success maybe more reliant on functionality than language?
https://orionhealth.com/case-study/a...a-region-wide/

Integrating big data is more than selling a SW package and translating the user manual via Google. Many of Orion's technical staff will need to work quite close with their counterparts in France and be able to communicate with them well in a language both of them do understand.

I am not saying that it is impossible ... just more difficult for companies coming out of a monolingual environment like NZ (apologies to all Maori speakers on this forum, but this language is unfortunately in an international context not that useful). France had for many years the desire to keep their language free of any English words (and I think they still do) ... and while some of them happen to learn English at school, they don't use it regularly. Many of them speak no better English, than many New Zealanders speak French.

Quite different attitude to foreign languages in Spain or e.g. Latin America.

This just means - if this is a trial ... and if there are competitors with better language skills around (e.g. European competitors), than I know on who's success I would bet.

Anyway ... just pointing to another risk, does not have to eventuate ... go Orion!

[Zaphod]

Adding to the points above, work methodologies, processes, policies etc. are all influenced by cultural factors. To build a successful product you must take these aspects into account, which is a very difficult task for a foreign company whose developers are not immersed in the local culture.

[Onion]

Can tech save the National Health Service?

Guardian Tech Weekly discuss challenges to the NHS technology programme. Some interesting observations about the same arena that Orion inhabit.

http://www.theguardian.com/technolog...weekly-podcast

[Arbitrage]

There is something about a so called growth stock like Orion. They are running at a loss with their existing client base, while signing up more clients. Does this mean that more clients mean a greater loss? This doesn't just apply to this company. What are investors in these stocks waiting for? A sudden new product that makes a lot of money? Perhaps these companies should have less clients and actually try and make money. I am interested to hear a good reason (apart from philanthropy) for investing in these stocks. No dividends and a falling share price. But I guess one never knows what is around the corner....

[BlackPeter]

There is something about a so called growth stock like Orion. They are running at a loss with their existing client base, while signing up more clients. Does this mean that more clients mean a greater loss? This doesn't just apply to this company. What are investors in these stocks waiting for? A sudden new product that makes a lot of money? Perhaps these companies should have less clients and actually try and make money. I am interested to hear a good reason (apart from philanthropy) for investing in these stocks. No dividends and a falling share price. But I guess one never knows what is around the corner....

I guess its called speculation. Sometimes it works out and the stocks turn (after years) into a big shining cash cow, and often it does not. Most of them can make you money if you get the timing right (by luck or by skill).

Just close your eyes and dream: Orion Healthcare might turn into the next Amazon, Facebook, TradeMe or Google and (at least some of) their shareholders will be rich.

Of course - statistically are less than 5% of these speculative stocks ultimately successful, but low probabilities don't stop punters from buying Lotto tickets either. If you have a good hand (or luck), than this might be the way to become rich fast. Only problem - the odds are against you.

[Onion]

Just close your eyes and dream: Orion Healthcare might turn into the next Amazon, Facebook, TradeMe or Google and (at least some of) their shareholders will be rich.

I think the comparison with Amazon, Facebook and Google is incorrect.

Orion will never scale to the extent of those companies. They have millions of individual customers each paying a little. Much of the "paying" comes in advertising revenue (the customer "pays" by giving a little of their screen real estate to advertising).

I do not foresee a future where individuals become customers of Orion. Orion's customers will be large health organisations paying serious money for Orion's software. E.g. if the French trials go well then perhaps Orion's software will be adopted widely across French public health organisations, in which case those organisations will need to pay good money to Orion.

As an analogy, compare Fraser Engineering (from Lower Hutt) with Toyota.

Fraser make fire appliances, in low volume but customised for each client. Fraser will take advantage of their in-house knowledge to be able to customise appliances while still using some standard components, chassis, pumps, etc. A fire appliance from Fraser will cost more than a standard truck (you get more) but probably less that it would cost for me to build one up myself from scratch.

On the other hand, Toyota make millions of vehicles -- but my Corolla model X12 will be the same as your Corolla X12 apart from cosmetic differences -- I cannot phone Toyota and request a Corolla that is 250mm longer and 100mm wider to fit my long legs and large ears.

Orion's customers will expect a solution customised for their specific needs. That will prevent Orion from ever becoming a Facebook or Google.

I am not saying that Orion cannot succeed or grow, just pointing out that if you are waiting for Orion to take off and suddenly acquire thousands of customers then don't hold your breath, they are a different type of company.

Footnote:
The same can probably be said of Wynyard -- each customer will need to customise the software to fit a localised need.

Xero on the other hand, have potential to scale. Once configured for a local environment (think local tax rules), each new customer can be acquired at very low incremental cost.

[BlackPeter]

I think the comparison with Amazon, Facebook and Google is incorrect.

LOL - I didn't realise that you require a "correctness check" already for dreams . What happened to the freedom of the thought?

But seriously - I never claimed that these companies are identical with OHE ... other than by all of them funding growth quite aggressively and sacrificing initial earnings to support their stellar growth.

If you want to compare them with a successful company having a similar product and client structure, than maybe SAP would be a good example.
http://www.sap.com/corporate-en/abou...ory/index.html
They are huge (I think they hold more than 50% of the world market for ERP systems), their SW product requires serious customisation for every individual customer ... but than - I am not sure, whether they went initially through a long patch of loss bearing years (and somehow I doubt that ...).

[Onion]

Just close your eyes and dream

I didn't want to spoil your day dreams BP

If you want to compare them with a successful company having a similar product and client structure, than maybe SAP would be a good example.

I think the comparison with SAP is a good one. No organisation takes on a SAP implementation without dipping deeply into the cash box and with the knowledge that they have a big project on their hands.

If Orion can make to $US97B market capitalisation then your dreams will have come true.