Inside the mind of Richard Diehl continued

CD : What is the typical process a new reseller of yours goes through to get started with you?

RD : We usually like to get to know them first. Sometimes, we make them a dealer, or put them on probation status. It's different with every dealer.

CD : Vertical markets have special needs. What is Vectorworks doing to meet those needs?

RD : As you know Dale, we have recently embarked upon a two-phase re-alignment of our strategy. Phase I, which is complete, was to reposition MiniCAD as a mid-range platform product similar to AutoDesk and Bentley. A platform product means that the product is meant as a platform to build other technology on top. To do this, we developed an integrated development system, added workgroup capabilities, and create a new, next generation object oriented design system.

Now we are in Phase II, where we deliver vertical market application based on the platform. The first one is due in September, and is in Beta testing now, VectorWorks Architect. Over the next two years, we plan to introduce 7 more products. Our integrated development system was made to make rapid development possible. This capability is going to be our strategic strength in the future. The markets we are currently planing to develop for are Architectural, Landscape Design, Mechanical Engineering, Building Services, Exhibit Design, Civil Engineering, Facilities Management and Theatre Lighting. That's more than 7, but we are thinking ahead.

CD : Autodesk (AutoCAD) and IMSI (TurboCAD) just recently announced major business reorganizations. How do you see this affecting the industry, and is this a sign of things to come?

RD : These are two different stories. IMSI just had a significant loss of around 15% and laid-off a third of their work force. TurboCAD sells a lot of boxes, but really isn't a big influence in the professional CAD area. AutoDesk is different. They are being hit on both the mechanical and architectural sides hard; their only asset is their aging file format. I would see continued weakening in AutoDesk CAD sales.

CD : 3D CAD is getting more and more attention, as evidenced by the growing popularity of the "3D Designers CAD Shootout" competition. How close is the industry to making CAD stand for Computer-Aided DESIGN (3D), as opposed to Computer-Aided DRAFTING (2D)?

RD : We have supported 3D capabilities in our design process for 15 years now, but I think it's incorrect to brand 2D guys as "just doing Drafting", and

3D guys as "in-the-know." The reality is 3d is just another capability to add into the mix. The real question is, have you moved beyond just using CAD as an electronic pencil, and began using it's capabilities to move your total process forward, in Design, 3D Presentation, automated report and schedule creation, and the creation of professional working drawings. Our system integrates all of these areas, and it has proven itself against competitors in the 3D CAD shootout. Since the beginning of the competition, we have never lost to anyone costing less than $3000, have never placed less than fourth, and won the overall "grand prize" in the 1997 shootout. We can deliver 3D, but we deliver a lot more.

CD : In your opinion, how has the OpenDWG alliance affected the CAD software industry?

RD : Diehl Graphsoft is a founding member of the OpenDWG alliance. I think the alliance providing software tools to read and write a recognized industry file format is a good thing. I am opposed to the alliance existing only as a sort of "political action committee". I think the value of the alliance resides in its collective technical expertise. Why should so many companies spend valuable resources separately in order to be compatible with a common file format?

CD : One final question. Who are some of your "right hand" people?

RD : I have great people working with me. Each one of them brings something to the table that I don't. Don Webster is C.O.O. of the company, and is a great organizer. He supervises all of the graphic design that goes into our product and marketing materials. Before joining us, he led a "multi-media" department at Ernst and Young. I am reminded of the time Don and I first met. I was running the company out of my apartment, and I had never met my landlord. Don stopped by one day to see his friend who also happened to be my roommate. Don jokingly arrives at the door holding an eviction notice. I though he was the landlord coming to rid himself of me! Several years later, Don came on board as our Chief Operating Officer. Sean Flaherty is our V.P. of engineering. He was our second employee. He actually started working for me when he was a senior in high school. At that time, Sean had had only one programming class, and he was willing to work for free. It was a hard deal to pass up! As it turned out, he was brilliant. Robert Anderson, the well-known Architect, just came on board as our newest executive. I am really looking forward to what he is going to contribute to the company and our products. 


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