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By Bill May, The Journal Record
Even though high-tech companies have lost
their appeal on Wall Street, software makers --
especially in Oklahoma -- can gear up for a round of major growth. Another
oil boom is looming
and with it software designers and engineers can expect to be lofted to new
heights. That's because
of all the new technology that's going to be needed in the oil field, according
to an Oklahoma City
computer consultant.
"Assuming there is another oil boom,
and with natural gas prices at an all-time high and supplies
so low, I don't see why not, companies that haven't drilled in 15 years will
need new equipment and
software," said Dan Lessmann, president of Data Systems Consultants.
"That's also true of the companies that
supply the oil field, the trucking companies, the machine
shops and the manufacturers."
Fifteen-year-old equipment and software
won't handle databases and tracking processes they
way new systems will, Lessmann said.
Even though stock in high-tech companies has
been plummeting in recent months, that fall has
not impacted the software makers yet, Lessmann said.
"Traditionally, software companies lag
behind the other companies (in the stock market), they
are usually the last to feel the downturn and the last to pull out," he
said. "But, theoretically, the
Oklahoma software makers can miss most of the problems because the economy
should recover
fairly quickly when the boom comes along."
Hardware makers will be the first to feel
the high-tech oil boom, but when the drilling companies
realize that standard off-the-shelf software won't meet the drilling industry’s
special needs, then they
will turn to consultants for custom software.
"We should see all these companies
loaded with business fairly quickly," he said. "Once they
start punching holes in the ground, they will realize the old database systems
will no longer meet
their needs, they will recognize that they need custom software to track the
well activity and remain
competitive."
Large multinational companies, which have
state-of-the art computer systems, will not be the main
customers for local companies that write custom software. Instead, it will be
the small, independent oil
people who went out of business after the last bust and are restarting in the
light of the new boom.
Already, the beginning of the boom seems to
be evident. Several companies that work in the
Anadarko Basin have called his company, seeking advice on new software to
prepare for the anticipated
new activity, Lessmann said.
"We're also seeing the beginning with
the number of rigs that are being put to work," he said.
Shortly after graduating from Oklahoma State
University with a degree in mechanical engineering
in 1983, Lessmann studied what was happening in the oil field as he worked for a
variety of manufacturing
firms. During this time, he saw that computers were beginning to play a vital
role in well production.
Today, it's even more so, he said.
Data Systems Consultants Inc. was started in
1988 by Larry Lessmann, Dan's brother, as a sole
proprietorship.
Dan joined the firm and became a partner in
1991. By 1999, the company had incorporated with Dan
serving as President.
Today, there are three employees, all of
whom telecommute.
Even though he expects to reap his share of
the new software business generated by any oil boom,
his company is not at all dependent upon the oil industry, Lessmann said.
Although his company does more than just
write custom software, that category makes up 60 percent
of the business, he said.
"We don't resell hardware or software,
so if we recommend to a client that something should be changed,
they tend to listen to our recommendations," he said.
"Usually, we are called in after a
company has tried to fit their business into a canned program. These
programs are too generic to truly fit a unique business model so we add on to
them to increase our clients’
efficiency and productivity."
Lessmann didn't disclose fee arrangements,
but he acknowledged that it isn't cheap to have custom
software written.
"Typically, by the time we recommend
custom software, we’ve gotten to know the client’s business.
There has to be a true advantage to custom software before we’ll make the
recommendation," Lessmann said.
In one instance, a client was trying to get
custom information from a canned program. "It took them two
days to get the special sales report they wanted," Lessmann said.
"We went in and wrote some simple, new
code and cut that two days down to five minutes.
"It's that kind of performance
improvement that makes people want to pay our fee, to call us back and to
recommend us to associates."
Since the company is small, Lessmann is
using that as a marketing tool. "Our small size allows us to react
quickly to our clients' needs. But really it's about plain old fashioned quality
service.
"What I like to point out, what
separates us from some other computer consultants, is that we do what we say
we will. We develop a relationship of trust by always acting in our clients’
best interests," he said. "Then, we always
respond rapidly to what the customer wants and needs.
"We will use this as a growth mechanism
but we will never grow so fast that we can't deliver what we say we will." |
