Winner: Triodent Ltd
Triodent, an enterprise that develops simple solutions to common dental procedure problems, achieving annual sales in excess of $10 million in just a few years of business, has won the award for Best Use of Research and Development in International Business, supported by TechNZ, in the New Zealand International Business Awards 2009.
Founded by Chief Executive Dr Simon McDonald in 2003, Triodent’s success is based on creating, manufacturing and selling low-cost, high-margin consumables which dental customers will buy repeatedly.
The company, whose qualities include perseverance and a willingness to explore the seemingly impossible, has enjoyed explosive growth since 2007, when annual sales were around $1.5 million. Staff numbers have also risen rapidly to 70 to keep up with demand. The road to international success, however, was anything but smooth, recalls Dr McDonald.
Working as a dentist in Katikati, he wanted to create a product for export that would enable him to give up his day job. During his evenings and weekends he made about 180 prototypes before going to market with his first product in 2003. It was hailed by dentists but wasn’t a commercial success.
“We’d invested around $300,000 but it was only breaking even and I was still working my day job. I had a lot of sleepless nights but during one of them an idea for a new product came to me. It was actually very similar to an earlier prototype that I had discarded – I had already invented it but raced past it.”
The idea became the V3 Sectional Matrix system. Designed to overcome one of the most difficult procedures in dentistry – filling molars – Dr McDonald says it has revolutionised aspects of dentistry and is recognised by top US dentists as the best of its kind.
From idea to commercialisation, however, took more money and time. Dr McDonald wanted to make the product entirely out of nickel-titanium, but after contracting an American specialist to help and working on it himself two days a week in a local panel beater’s workshop, it proved too difficult to manufacture.
“I had to think of a totally different way so I tried adding stainless steel and then the business really took off.”
The US was targeted initially as the most affluent and influential market for Triodent’s leading-edge products, though it now sells throughout the Western world and is making inroads in the Middle East.
Research and development, design and manufacture is all done in Katikati. The majority of sales are direct, the balance over the internet or through distributors. There is a strong focus on customer support, with a 24-hour call centre providing after sales service as well as making direct sales calls to dentists around the world.
Dr McDonald says Triodent maintains its market leading position through a strong focus on R&D, and continues to improve the V3 Sectional Matrix system in response to customer feedback.
“Making those improvements can be expensive, but I’m not interested in the cost. I’d much rather produce a product that is totally wonderful – a fantastic design that the customer wants.”
Dr McDonald has delegated the general management side of the business so he can focus on R&D. Diversifying in order to spread the risk is a priority. “Everything is superseded at some time and we can’t afford to be a one-trick pony.”
New developments include a product to help dentists handle crowns and inlays, which Dr McDonald thinks is going to be “huge”. Triodent is also looking at products outside dentistry.
“We’ve got about 30 ideas on the ideas list – some are off the wall. We want something with a high margin, high value to the customer, low weight and consumable, so customers keep coming back. And it has to be simple – simple, smart and innovative.”
For further information
Peter Watt, publicist, Triodent Ltd, 07 549 0727, peter.watt@triodent.com, www.triodent.com
Ann Clifford, Corporate Communications Manager, New Zealand Trade and Enterprise, 04 816 8321, 027 283 3858, ann.clifford@nzte.govt.nz
