Ngigi Waithaka symbolises the power of passion: it drove him to quit his studies for a Bachelor of Science in Electronics at Jomo Kenyatta University of Agriculture and Technology (JKUAT) and it has sustained him in an incredible journey to the top echelons of the local software development community.
Alliance Technologies, the firm he founded, would not be what it is today were it not for his “great love of software”. From a start-up developing internet billing solutions and peddling them to cyber cafe operators ten years ago, the firm is today one of the largest IT solutions providers in the region, with most of its revenues coming from the large public and private sector contracts.
It specialises in developing and implementing enterprise-level applications. Amongst its clients include the Ministry of State for Defense (MOSD), Kenya Revenue Authority and the Kenya Medical Services Agency (KEMSA), among others.
Its main solution is an enterprise resource planning (ERP) the company calls the A1 ERP designed for public and private enterprises with base modules for finance, procurement, sales, asset management and human resources functions. The firm also offers independent modules for Supply Chain Management, Performance Management (A1 eHR), Healthcare (A1 eHealth) and Campus Management (A1 Campus). “These are innovative, world class solutions whose demand by different organizations from different parts of the world is on the rise, he says, adding the growth in popularity of the A1 ERP, and repeat references by clients, has led to the company to go global earlier than initially planned.
Alliance Technologies’ success has turned attention on Mr Waithaka, 35, and what his admirers call his “genius”. Tall and bespectacled, he cuts the image of a natural nerd and it is sometimes hard to believe that he has never been inside a programming class. On his desk at the company’s offices at Methodist Ministries Centre, he is surrounded by typical geek gadgets—an Apple MacBook, a Nokia smart phone and a Samsung Galaxy Tab.
Born in Murang’a County, he first saw a computer at his father’s office while a teenager. He was naturally attracted to the device and would “tamper” with it whenever he had an opportunity. By the time he was joining Alliance High School, a deep interest in computer technology had already set in his mind. The school had no computers but in the course of his studies, a well wisher donated three desktops. The young Waithaka set up the “Computer Club”, giving him an opportunity to create his first innovation: a digital school timetable.
After Alliance, his desire was to study computer science at university. This was however not possible as his preferred university had no such a programme. The closest course to computer science was a BSc in Electronics Engineering. But once he enrolled at JKUAT, he became disillusioned with the course. Mark this: Although this was the best technology-oriented university in the country, he says JKUAT had no policy on use of computers by students, short of the few hours allocated weekly for classtime.
Computers were beyond the reach of most institutions and at the time, a single PC cost as much as KSh150,000. “Later, some pieces were bought but access was severely limited,” he says. He couldn’t bear it and he raised money from his family and bought his first computer. “I also sourced for books from abroad on computer technology and programming,” he says.
Within a year, he had honed his skills and was doing part time programming for a German software firm. “I was becoming really good at it and couldn’t justify my continued stay at JKUAT to myself.” However, he still continued with his campus education, but doing the least possible to hang on with his primary degree course.
He has no regrets about the decision he made. “You sometimes reach a point where you have to choose between your passion and other people’s expectations.” By quitting his studies, he was following a tradition set by many of today’s most successful technology entrepreneurs including Bill Gates, the founder of Microsoft and the world’s second richest man; Larry Elisson, the founder of Oracle, (itself an ERP developer and a direct competitor of Alliance Technologies) and of course, Steve Jobs- Apple Inc’s stalwart . They all abandoned their university studies to pursue their passion.
Start up blues
His first job was as a consultant with with MailAfrica, an African internet portal, where he was the position of chief technical officer. The idea of starting a business occurred to him after a chance encounter with a friend in a cyber café that he frequented. He told him the cyber café had problems with billing as it had to calculate manually the time customers were logged in.
He offered to develop a billing solution for the cyber café in exchange for free browsing. “The owners agreed and for me it was a good deal because internet access was so expensive.” About the same time, Africa Online was rolling a chain of cyber cafés that it dubbed e-touch and he learnt they too were having issues with a billing application the company had imported from Israel. He pitched his solution now, named Surfari, and the then biggest ISP in East Africa warmed to his application but still insisted that it would take up the Israeli system once it was sorted out.
They gave him a test site with three computers. It was just what he needed to demonstrate the solution’s versatility. Within weeks, 100′s computers were running on his system. The returns were good as he charged Africa Online a monthly of of KSh1, 000 for every computer using the billing system. Soon, all the e-touch centres were running on the billing system!
The name of his company, which he started in 2000, is a tribute to his old school. “Alliance had a big influence in me and I decided to honour it by naming my firm after it.” The auspicious origins of the name didn’t lessen the start up challenges he faced. “Most people had no confidence in local software,” he says adding that the cost of essentials like internet access and computers made the business capital intensive. “Today, we take a lot for granted. When I was starting a basic laptop cost over KSh400,000.”
With time, he realised that his “one man” approach would not take him far. One of the first people he tapped was Andrew Ngigi, a bespectacled 32-year old, who serves as the company’s general manager. He joined Alliance Technologies while still a 22-year-old Bachelor of Commerce student at the University of Nairobi.
Mr Ngigi was a perfect match. He had a healthy interest in technology and had the instincts of a business man. He worked during the day and studied in the evening. “He [Mr Waithaka] would make the software and I would test and market it,” he recalls.
After graduating, he joined the fledgling firm, much to the chagrin of his peers who opted for blue chip companies. “I was totally sold out to the founders’ vision and have never looked back. He is a true visionary.”
As CEO, Mr Waithaka focuses on strategic issues and leads the research and development (R&D) team while Andrew Ngigi is in charge of the day to day running of the organisation. Their partnership has had its share of difficulties. When their contract with Africa Online was terminated, they survived for nearly two years on odd jobs. At one point, they even contemplated taking up employment. But that would be no option as soon, Mr Waithaka would be back at it again, developing software to run education institutions. This was the first software certified by the Ministry of Education for use in local schools.
The key to the company’s rapid rise is identifying problems and developing solutions around them. A1 ERP for instance is customised to the needs of local organisations and takes consistency with such matters as legal compliance and best practices. Since they are developed on the “open source” platform they have the potential to reduce IT costs as they do not attract expensive initial investments as well as annual licenses, unlike their proprietary competitors. Most companies are unable to implement ERPs due to high initial costs and annual licence fees. “Our goal is to develop affordable solutions,” says Mr Waithaka. “We have solutions that SMEs can pay for on a monthly basis.”
The firm has also focused on building applications than can be replicated in other markets. Its vertical solutions for the department of defence can be used in other countries with minimal customisation. The CEO says the system implemented at the Armed Forces Memorial Hospital can be used in any hospital. “It is being used at Metropolitan Hospital, a private hospital.”
It is not easy to win contracts in the public sector due to fierce competition from global vendors, particularly Indian companies. To give it an edge, Alliance Technologies has a dedicated division called Advisory Services that is tasked with bidding and managing public sector contracts. Patrick Njenga, the head of the division says big tenders can wreck a firm. “Tenders are often narrow in brief but big on implementation. You can easily win a tender to supply a minivan only to realise later you are expected to deliver a truck, figuratively speaking.”
The division is responsible for “mapping, scoping and spearheading implementation of projects”. It also provides training on new software to clients and change management, especially in government agencies.
Such services sometimes determine the success of a project. One of the challenges that projects face is internal resistance. Automation is in particular resisted due to fears of job losses and potential to eliminate opportunities for kickbacks. “Change management training creates acceptance for the new systems,” says Mr Njenga, who joined Alliance two years ago.
Future plans
With its arsenal of products, Alliance Technologies is now preparing for a major market onslaught. While its initial focus was on large enterprise clients, the new drive will be focused on small and medium enterprises. This is a category of users that most vendors have ignored. One of the products it’s launching is the A1 eXpress, a lighter version of the A1 ERP. “This solution is ideal for firms with turnover of below KSh1 billion and is also available on the web via subscription in the model of software as a service (SaaS),” says Mr Waithaka adding an implementation costs of the A1 Express costs KSh5 million while the web-based SaaS subscription would go for a few thousands annually. “Medium sized enterprises need software to turn them into efficiently run large organizations,” asserts Mr Njenga.
The firm is taking the roll out seriously. By the end of last year, it poached Hutia Mungai from the transnational LG Electronics, where he was in charge of East and Central Africa to fill the newly created position of commercial manager. Mr Mungai is credited with establishing and building LG’s mobile phones business in the region. “He will be instrumental in our roll out,” says Mr Waithaka.
The CEO says Alliance Technologies has the products and wherewithal to address the global market. By offering the solutions over the internet using the Software-as-a-Service model where clients pay a subscription fee or per use, it will access a wider market. It will however continue to serve its core enterprise market as demand is strong. “We have deals in the pipeline in Uganda, Tanzania, Zambia as well as international clients in far flung countries like Sweden, Indonesia and are finalising details of a partnership that will enable us roll out in India.”
Great! You guys are awesome and you have the full capability to strengthen SMEs and automate government processes as well.Nice job
Good work. This is the kind of firm that has the potential to transform kenya. There is a big market for your products- with the SME’s growing by the day. Looking forward to work for you some day.
In deed you had the passion to go for IT From your blog your a hero you have motivated me that what ever small opportunity life creates go for it in a full full condition at some point I will be looking forward to work with you people.