Business in Vancouver's "How I Did It" feature asks business leaders to explain in their own words how they achieved a business goal in the face of significant entrepreneurial challenges. In this week's issue, Clevest Solutions Inc. co-founder and CEO Thomas Ligocki describes how he capitalized on the growth of smart grid technology.
"My wife, Lily, and Arthur Lo were part of MDSI Mobile Data Solutions Inc. During the dot-com [boom], it seemed like a good idea to have an online something. We started out in the online food-ordering business (YummyWeb.com). YummyWeb was a part-time thing.
"You have to keep your eyes open for events in the industry, and the event that we latched onto – and which was transformational – was the advent of the smart grid. In 2006, the utility industry experienced perhaps its most significant transformation, as the smart grid was taking hold.
"We started with a blank piece of paper and an idea. In 2006, a group of six people started working out of my basement. The idea was to help automate the process associated with the installation of smart meters and the post- installation of the smart meters. It is also providing electronic tickets [work orders] to workers in the field and providing the business process workflow.
"We had a PowerPoint product. There was no product, no customers. Raising money was almost impossible because people had a hard time, at first, understanding the difference between the other players and us. Not having customers, not being profitable, not having reputation – that makes it very, very difficult.
"But we were providing a solution that was desperately needed. The smart meters needed to be installed, and yet there was no solution that would address the operationally effective installation of these meters. We were there first, and we offered a solution. There was nothing better in the market.
"I took money from anyone who would give me money, including my dentist. We raised several million dollars from angel investors. By 2009, we signed an exclusive agreement with NRTC [National Rural Telecommunications Co-operative] and that really launched us into a very large space.
"This was a greenfield opportunity that was untapped. They not only didn't have the smart-grid solutions, they didn't have workforce management. They were still using paper for the technicians in the field. We were able to establish ourselves as the de facto workforce management standard.
"Since we were first to market, we now have the biggest market share. We distinguish ourselves [from competitors] by continuing to innovate and add differentiating innovative products and putting up barriers to entry – like patents – and by establishing partnerships that not only will help us but will also prevent others from entering the market.
"We have about 110 employees now, up from six only six years ago. We are now operating in North America, Latin America, Europe, Australia and Asia." •
