PURCHASING POWER: The BigDogg Solution

BigDogg Technologies Limited, clients of Dublin City Enterprise Board, are the winners of the Dublin City Denis Colleran Award 2010

BigDogg will represent Dublin City in the National Final organised by the County & City Enterprise Boards.

BigDogg developed http://www.sourcedogg.com, easy to use, free to try online software that gives buyers or buying groups the information and tools to Discover, evaluate and negotiate with quality suppliers globally. The results can be much faster sourcing cycles, 75% decrease in administration with impressive savings.

Pictured are John Quigley and Mark Scanlon, Entrepreneurs from BigDogg Technologies, receiving the Dublin City Enterprise 2010/11 Winners of the Denis Colleran Award from Patrick Lynch, Chairman, Dublin City Enterprise Board.

Two years into the worst recession experienced in Ireland since the country gained developed status, one would think that costs have been cut to the bone. However, it would appear that there are still significant opportunities to get greater value, particularly on the supply side. According to Aberdeen Research, 91% of the pressure experienced by Chief Financial Officers is to identify cost reductions. The research shows that the highest response action by CFO’s has been to increase sourcing activity.

It was against this background that John Quigley and Mark Scanlon, set up BigDogg technologies at the Invent centre on the Dublin City University campus in September 2009.

Many purchasing officers will argue that they are getting the best possible deal from their suppliers for the amount they buy. And, that is the crux of the matter. How does your local convenience store hope to compete with large multiples, such as Tesco? They join symbol groups, such as Spar or Centra, and avail of the massive buying power of the group. Purchasing groups have been around for a long time.

BigDogg’s competitors are large multinational companies that like to deal with similar type companies as themselves, according to Mark Scanlon. “They tailor make solutions for their clients typically costing in the region of €250k to €450k. This puts them beyond the reach of all but very large companies. These solutions are also very complicated to use and require training. One leading pharmaceutical company found that only three of their purchasing executives could use the system they had purchased.”

BigDogg’s SourceDogg software, unlike the rest, is available on the internet, where it is free to trial for 30 days. SourceDogg may be used by either individuals, or buyers may form a group. Where groups are formed, they may hold periodic auctions where suppliers bid for the business on offer. An example might be a group of buyers from different financial institutions holding an auction for cash in transit services.

SourceDogg applies Social Network concepts to the procurement process which makes the offering unique. This forms the underlying technology approach to how buying groups form, share knowledge and resources.

Unlike their competitors, the cost of using SourceDogg is minimal. It is expected that the average user will spend €640 per month, says Mark Scanlon, who adds that a typical client will be any company with a procurement function that have a high % spend in services as opposed to physical goods or anyone in an established buying group.

SourceDogg is already in use with the Moritz Group, a diversified company with interests in property, retail and technology, with documented savings of thousands of euro on a single sourcing project. The next major customer will be AIB Bank, who will commence using SourceDogg in October 2010. So far in excess of 300 potential client companies have been identified in Ireland. Currently, trials have been agreed with 120 Irish companies.

Affinity groups are also likely to provide an exploitable market. Attendance at the recent ploughing championships has led to the opening of discussions with the Irish Farmers’ Association which has in excess of 100,000 members, all with buying requirements. Interest in SourceDogg is also coming from abroad and the largest Business Process Outsourcing (BPO) in Romania has entered an exclusive deal to resell there.

With this level of interest, BigDogg is now launching a funding round to raise funds, primarily for Sales & marketing activities, with two new customer relations executives to be employed. Next year a further funding round will take place, under the Enterprise Ireland Propel programme. It is also anticipated that BigDogg will receive High Potential Start Up status from Enterprise Ireland in the new year. In 2010, Dublin City Enterprise Board invested €45,000 in the company by way of a Priming Grant.

With two new products in the pipeline and markets now opening at home and abroad, the future seems assured for BigDogg Technologies.

And what about the BigDogg? John Quigley, who founded the company, is a graduate of St. Ambrose University in the U.S., where he received a master’s degree in business while on a basketball scholarship. He subsequently played professional basketball in Europe, where his fans dubbed him BigDogg. On returning to Ireland, he captained the Irish Basketball team.

Mark Scanlon, a qualified Computer Engineer also holds an MBA from Trinity College, and is a noted athlete. He has run marathons on every continent to raise money for the Irish Cancer Society, gained an entry in the Guinness Book of Records and a Mayo Sports Star Award.

By the end of next year BigDogg will employ eleven people or, most likely eleven very fit people.