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Catalyst Design Group was founded in 1989 by industrial designer Hugo Davidson. Later his father, architect John Davidson, as well as product engineer Malcolm McKechnie, joined him in directing the company. Catalyst provides industrial and product design including prototyping, project management and (until June 2002) architectural services. Based in Richmond, Victoria, Catalyst employs eight full time staff.
Malcolm McKechnie, Managing Director, joined Catalyst in 1995. Whilst the company was already active in the use of cutting edge technologies, Malcolm sought to further improve business processes through the use of broadband-enabled real-time technology and Highend 3D CAD systems. In particular, a web-based solution was implemented to facilitate collaborative efforts between colleagues and enable real time image transfer with customers.
PlaceWare is software that facilitates online collaboration between two or more parties over different time zones or geographical locations. Catalyst use PlaceWare in two ways. The first is through software that enables Catalyst employees to create, edit and manipulate 3D CAD models and documents whilst another person in a different location can watch and contribute at the same time. The other product use is real time video transfer via Catalyst’s SquizBiz system and use of a handheld camera and a wireless broadband Internet connection.
Catalyst intends to expand the online collaboration network. The company hopes to encourage more customers and suppliers to use web-enabled solutions to increase the scale of online collaboration.
Catalyst Design Group was founded in 1989 by industrial designer Hugo Davidson. Later his father, architect John Davidson, as well as product engineer Malcolm McKechnie, joined him in directing the company. Catalyst provides industrial and product design including prototyping, project management and architectural services.
Based in Richmond, Victoria, Catalyst employ eight full time staff.
Having utilised 3D CAD (Computer Aided Design) software since 1992, the use of leading edge technology was a core aspect of Catalyst’s business strategy. However, Managing Director, Malcolm McKechnie, recognised that with an increasingly global customer base, greater investment in technology would be required to bridge the inherent time and geographical barriers.
The nature of the business constantly exposes the company to emerging technologies in design and service delivery. Catalyst implement suitable solutions on an incremental basis with the aim of gaining a competitive advantage over industry peers.
PlaceWare is software that facilitates online collaboration between two or more parties over varying time zones or geographical locations. Using this software, users from any location can simultaneously interact in the same workspace in real time.
Catalyst use PlaceWare in two ways. The first is through software that enables Catalyst employees to create, edit and manipulate 3D CAD data and documents whilst another person in a different location can contribute simultaneously. This allows colleagues to observe others editing a 3D CAD model or 2D drawing to provide an alternative design. The ability to present ideas and amendments in real time contributes to shorter delivery cycles as the need for traditional mailing of drafts is reduced.
The second use of PlaceWare is the real time image transfer to clients. The SquizBiz system through use of Hand held or stationary cameras has a wireless connection to a receiver that is connected to the Internet via a broadband line. The video data can then be transmitted live from any location to clients, colleagues and suppliers. This technology is especially useful during the project management phase to enable confirmation of prototype designs in addition to demonstrating the product throughout the various stages of development.
To facilitate the company’s online collaboration strategy, Catalyst uses an Asymmetrical Digital Subscriber Line (ADSL) broadband Internet connection for its high speed and reliability in transferring large files. This technology is particularly pertinent to Catalyst due to the high bandwidth requirements for real-time transfer of video data.
Whilst the use of real-time collaboration is one aspect of Catalyst’s e-commerce strategy, several other processes have been web-enabled. The broadband Internet connection also enables Catalyst staff to participate in live online seminars. This is an important developmental tool with which staff can keep abreast of technological developments in the design and engineering industries.
In addition to facilitating collaboration with suppliers and customers, the Internet is also used to perform research on suppliers, products and services. By utilising online research, Catalyst is better able to scope supplier products and negotiate prices.
Although originally designed to market the company online, Catalyst’s website now includes a project management functionality for clients. By using a log-in, clients and suppliers can view and download data specific to their project, enabling clients in particular to conveniently monitor the progress of projects without having to directly contact Catalyst staff.
The website is marketed through company emails and in an electronic newsletter that is sent out to customers and suppliers.
| E-commerce Establishment Costs |
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| ($) |
| Web development | 10,000 |
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| Preliminary research | 6,000 |
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| Systems - design | 25,000 |
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| Systems - specifications and selection | 25,000 |
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| Registration of domain name | 380 |
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| Telecommunications – ADSL | 1,000 |
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| SquizBiz - set up | 2,000 |
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| Software - external client login | 2,000 |
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| Hardware – server | 20,000 |
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| Total Establishment Costs |
| 91,380 |
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| Operating Benefit from E-commerce |
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| 2001 |
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| ($) |
| Gross Profit from E-commerce |
| 20,000 |
| Add: E-commerce Cost Savings |
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| Postage & Freight | 10,000 |
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| Staff time: after sales service incl. communications | 20,800 |
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| Travel | 24,000 |
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| Telecommunications | 2,500 |
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| Total E-commerce Cost Savings |
| 57,300 |
| Gross Benefit from E-commerce |
| 77,300 |
| Less: Ongoing E-commerce Costs |
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| Amortisation of capital expenditure | (22,845) |
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| Internet Service Provider | (3,600) |
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| Systems – maintenance | (5,000) |
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| Telephony – fixed | (500) |
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| Telephony – variable | (3,240) |
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| Training | (2,000) |
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| Licence Fees - online collaboration software | (9,000) |
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| Updating web site | (2,000) |
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| Total Ongoing E-commerce Costs |
| (48,185) |
| Operating Benefit from E-commerce |
| 29,115 |
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* Note: Capital expenditure was amortised over a four year period
Catalyst achieved an overall operating benefit from e-commerce of $29,115 in 2001. Whilst the company achieved a gross profit from e-commerce of $20,000, the majority of benefits were realised in the form of cost savings, totalling $57,300.
The use of online collaboration has removed barriers previously associated with international projects. By allowing clients and suppliers to view designs in real-time, the need for Catalyst staff to travel to client premises is reduced ($24,000), as is the need to post or courier drafts and correspondence ($10,000). Furthermore, the facility enables clients to contribute to and monitor project progress, minimising reliance on after-sales service ($20,800).
Catalyst has invested $91,380 over the past seven years in setting up the online system. The most significant costs were incurred in establishing the system infrastructure including system research, sourcing, investigation and design ($25,000), system specifications, support and maintenance ($25,000), $2,000 SquizBiz system purchase and acquisition of a server ($20,000). In establishing the company website, $10,000 was incurred in web development, $380 in domain name registration and $2,000 in external log-in software.
Ongoing costs totalled $48,185 in 2001. The most significant costs were incurred in maintaining system operations including licence fees for the online collaboration software ($9,000), general maintenance ($5,000) and Internet Service Provider fees ($3,600). In addition, capital expenditure is amortised over a four-year period ($22,845).
Through implementation of real-time collaboration technologies, Catalyst has been successful in strengthening client and supplier relationships, particularly with international contacts. Previous barriers of geography and differing time zones have been overcome, ensuring client specifications are met and designs are easily delivered by the required deadline.
By enabling access to design images through the SquizBiz handycam technology, the need for phone and fax correspondence between Catalyst and clients is significantly reduced. The facilitation of real-time project monitoring empowers clients to participate in their own project and remain informed as to project progress. Both these functions are key contributors to improved service delivery and strengthening client relationships. In addition, greater transparency for all project parties minimises misunderstandings in design specifications, ultimately contributing to shorter delivery cycles.
In implementing the online system, Catalyst encountered hurdles including significant establishment costs and difficulties in finding reliable external support. Additionally the company had difficulties identifying appropriate software packages that would meet all their needs. To address these issues, Catalyst performed cost/benefit analyses on each of the potential solutions and found that by combining several readily available technologies they could generate cost effective solutions that met all of the company’s requirements.
In line with Catalyst’s interest in emerging technologies, the company intends to increase the scale of online collaboration by encouraging more peers and clients to utilise web-enabled technology.
Catalyst design Group (