March 7, 2005
Group dynamics | MESDA hopes a new home will help it increase communication among Maine techies
By Sean Donahue
MESDA, Maine's trade group representing an industry built on bits and bytes, is finally getting a brick-and-mortar home of its it own. In mid-February, MESDA Executive Director Joe Kumiszcza was close to signing a lease on space that would become the Maine Software and Information Technology Association's first official headquarters, as well as an educational and networking resource for Maine's technology providers and users.
Since 1997, when Kumiszcza became executive director of what was then a five-year-old organization, MESDA's primary presence has been its website ˆ where it offers services such as Code ME, which helps companies search for technology service providers ˆ and whatever space Kumiszcza could borrow to hold meetings and other gatherings. But now, with the tech boom and bust several years in the past, Kumiszcza sees the industry poised to grow again. He points to signs such as MESDA's online job board, which recently listed more than 400 job openings. A year ago, the board averaged between 10-25 jobs, Kumiszcza says.
Having a permanent MESDA facility could be an important component of that growth, Kumiszcza says. Thanks to a $237,000 grant from the Maine Technology Institute, matched by industry donations, MESDA currently is looking at a 3,200-square-foot facility (Kumiszcza declined to say where, since negotiations were still ongoing) of which only half is needed for administrative purposes. The other half would be set aside for classroom space needed to support MESDA's growing users groups program, which since 2001 has been a vital piece of the organization's efforts to support and grow Maine's technology workforce. By sponsoring users groups focused on specific technologies ˆ which allow technologists to share tips and stay ahead of trends ˆ MESDA is helping provide ongoing education that Kumiszcza hopes will keep skilled workers in Maine, as well as attract new employers.
MESDA plans to wire its new facility to broadcast those users group sessions to locations across the state. Kumiszcza also plans to expand the program from its current eight groups to 15 or 20, offering new technology focus areas as well as higher-level executive sessions, such as a CEO or CIO round table. He also envisions classes in what he calls "soft skills" like management and marketing to help technologists handle the business side of running a company.
Mainebiz recently asked Kumiszcza about MESDA's workforce development efforts and the potential impact of the organization's new headquarters, as well as other trends he's watching in Maine's technology industry.
Mainebiz: MESDA has managed to operate for 13 years without a permanent headquarters. What inspired you to look for a facility of your own?
Kumiszcza: The search is a result of a survey we did back in 2001. What [the survey] really told us was that luring talent to Maine wasn't a problem ˆ the biggest problem is keeping the talent once it gets here. What we identified is that there isn't the educational infrastructure for technology professionals to keep their skills at the bleeding edge. So we started to play around with what we called users groups ˆ a way to get folks together, talking about technologies that are on the horizon, talking about technologies that businesses should be investigating and building community around the different technologies.
We started slowly, and we now have eight [users groups] that are running on a regular basis. But what's happened is, they've become so successful that I've run out of space. I've already moved out of five different locations that I've borrowed, and I am in space now that's still too tight. So it doesn't even allow me to promote the most effective thing for Maine's technology industry ˆ the users group program.
So the search began as the result of needing more space for that [program]. The users groups have evolved a little bit from being a monthly get-together over pizza to something that's... I guess the new term is "communities of practice." And our industry is different than a lot of others, because the knowledge that gets picked up isn't necessarily learned in school. The knowledge is shared knowledge ˆ people talking to other folks about tips or techniques that they've used, about tweaking technology. Nothing that you can really pick up in classroom but that you can pick up in a community setting.
Are there external industry trends happening right now that also make this a good time for MESDA to find its own home?
I've really been working on this for the last four years, trying to pull all of the pieces together. It started, of course, back in the bubble, when things were great and we needed to move some things forward from that standpoint. It really kicked into gear again with the offshoring situation. What we were finding through national studies was that one out of every 10 positions in technology organizations could be offshored in 2004, and that one out of every 20 technology positions in non-technology companies could be offshored. So what that meant to the state of Maine is that we could have lost 400 technology jobs at a payroll hit of $130 million.
That told me that we needed to make sure we were giving broader sets of skills to Maine's technology workforce. Instead of someone being just a technologist, they were now becoming "versatilists," picking up skills across a range of different technologies. And what could happen from that is, if we're successful, then a company is maybe going to give off some of the commodity piece of a job, but individuals having more education will add value to the employer, and they'll keep that person on. The worst-case scenario is that if a job still gets cut, then what we've created in Maine is a really enhanced workforce that companies from across the country will start to look at and say, "Wow, we have to be in Maine because that's where the real talent is."
Besides talent level, though, you need a critical mass of skilled technology workers to attract companies, and Maine doesn't match the numbers that Silicon Valley or Boston has. What's been happening to your membership levels, and by proxy Maine's technology industry, since the big run-up of the 90s?
I would have to say since 1999 the industry has consolidated. There are a number of companies that just don't exist anymore. But our membership has been solid throughout that whole time. When I started in 1997, we had 50 member companies. And today we're about 250, and we've never had a membership campaign. So all of the members have come on because they're recognizing services that we offer and the return on investment that membership brings with it.
Have you noticed any changes in your membership that reflect changes in the industry's make up?
Well, the organization itself has changed. When MESDA was started it was the Maine Software Developers Association. We changed that a few years back to really encompass the information technology industry as well. There's a lot of application development going on in the state, and we wanted to make sure we could support both the software and the IT side ˆ and not just for developers but for the heavy users. Companies that are heavy users of technology feel comfortable with the programs that we're running, and what we're doing is working to support their workforce. [For example,] L.L. Bean is a member.
There are still software organizations around, there are still growing IT shops around. And what we're seeing is the telecommunications side is also a component of what we're doing now.
There's also a new media aspect that plays into [the organization]. In the beginning of February, we partnered with [Portland law firm] Troubh Heisler and had the second annual Business and Arts Collaboration, which was a neat art show. So we're getting more involved with the art community to make sure they're aware of the opportunities that exist within the technology field.
Besides running the users groups, are there other ways MESDA is trying to encourage workforce development?
Users groups are a key, definitely, but also this year we will be kicking off the Maine Brain Gain Campaign. With that, we're looking to create chapters across the state to identify folks in colleges and universities and make sure they're aware of what's happening [in the industry] in our state. We'd like to have an ambassador on each campus and have that person act as a liaison between MESDA and the students.
Now that we'll have a facility and can bring students into the users groups, the other piece is to get the students mixing and networking with the technology professionals in the state. That helps on a number of different levels. First, it starts to create some mentorships, so a student starts to feel some roots here, and also understands there is some technology going on in the state ˆ the kids get kind of isolated on campus. It also starts to create, on the company side, the opportunity to create internship programs. We're going to be looking at developing some templates for internships so the companies have an easier time getting started with that.
The other piece that's really important is that colleges and universities are great at dealing with companies that have HR departments. Most of the technology companies in Maine ˆ the small startups ˆ don't have HR departments. They get overlooked when students are looking for jobs. So if they start to network while they're still in school there's a better chance we can get the students interested in staying here.
What are the dominant trends in Maine's technology industry right now?
It's hard to say right now where the technology is going to shake out, because it changes all the time. My goal is not as much to monitor the technology from the standpoint of where the businesses are going, but to make sure we're providing the necessary infrastructure to enable any of these technologies to move forward.
You can't talk about tech industry development without talking about financing issues. How does Maine's venture capital environment look in 2005?
I think the best indicator is the round of money that BlueTarp just got ˆ over $14 million. One of the organizations that was part of that round is interested in other investments in Maine. So there is an interest in what we're doing.
I noticed that one of the other big venture investments last year went to Phylogix, a biotech company. With biotech appearing to have caught everyone's attention in recent years, do you feel any competition from biotech-specific organizations?
I don't really look at it as competition. Biotech organizations are members of MESDA. Idexx sits on our board. The programs really run in concert. I think if you were to look at our job board right now, you'd see the biotech companies hiring information technology and software people at just as high a rate, or maybe even a higher rate, than they are scientists.
Biotech has the sexy label now that IT and software had back in 1999. But biotech investments are going to be longer term, and payback is going to beˆ who knows? It's an avenue that's just starting to be investigated by VCs. I think a lot of VCs are also looking back to the software and IT industry again and seeing a lot of opportunities. I think Maine companies that have weathered the storm and have succeeded from 1999 to current, that always were there with a business plan that made sense, are looking very attractive now.
Since 1997, when Kumiszcza became executive director of what was then a five-year-old organization, MESDA's primary presence has been its website ˆ where it offers services such as Code ME, which helps companies search for technology service providers ˆ and whatever space Kumiszcza could borrow to hold meetings and other gatherings. But now, with the tech boom and bust several years in the past, Kumiszcza sees the industry poised to grow again. He points to signs such as MESDA's online job board, which recently listed more than 400 job openings. A year ago, the board averaged between 10-25 jobs, Kumiszcza says.
Having a permanent MESDA facility could be an important component of that growth, Kumiszcza says. Thanks to a $237,000 grant from the Maine Technology Institute, matched by industry donations, MESDA currently is looking at a 3,200-square-foot facility (Kumiszcza declined to say where, since negotiations were still ongoing) of which only half is needed for administrative purposes. The other half would be set aside for classroom space needed to support MESDA's growing users groups program, which since 2001 has been a vital piece of the organization's efforts to support and grow Maine's technology workforce. By sponsoring users groups focused on specific technologies ˆ which allow technologists to share tips and stay ahead of trends ˆ MESDA is helping provide ongoing education that Kumiszcza hopes will keep skilled workers in Maine, as well as attract new employers.
MESDA plans to wire its new facility to broadcast those users group sessions to locations across the state. Kumiszcza also plans to expand the program from its current eight groups to 15 or 20, offering new technology focus areas as well as higher-level executive sessions, such as a CEO or CIO round table. He also envisions classes in what he calls "soft skills" like management and marketing to help technologists handle the business side of running a company.
Mainebiz recently asked Kumiszcza about MESDA's workforce development efforts and the potential impact of the organization's new headquarters, as well as other trends he's watching in Maine's technology industry.
Mainebiz: MESDA has managed to operate for 13 years without a permanent headquarters. What inspired you to look for a facility of your own?
Kumiszcza: The search is a result of a survey we did back in 2001. What [the survey] really told us was that luring talent to Maine wasn't a problem ˆ the biggest problem is keeping the talent once it gets here. What we identified is that there isn't the educational infrastructure for technology professionals to keep their skills at the bleeding edge. So we started to play around with what we called users groups ˆ a way to get folks together, talking about technologies that are on the horizon, talking about technologies that businesses should be investigating and building community around the different technologies.
We started slowly, and we now have eight [users groups] that are running on a regular basis. But what's happened is, they've become so successful that I've run out of space. I've already moved out of five different locations that I've borrowed, and I am in space now that's still too tight. So it doesn't even allow me to promote the most effective thing for Maine's technology industry ˆ the users group program.
So the search began as the result of needing more space for that [program]. The users groups have evolved a little bit from being a monthly get-together over pizza to something that's... I guess the new term is "communities of practice." And our industry is different than a lot of others, because the knowledge that gets picked up isn't necessarily learned in school. The knowledge is shared knowledge ˆ people talking to other folks about tips or techniques that they've used, about tweaking technology. Nothing that you can really pick up in classroom but that you can pick up in a community setting.
Are there external industry trends happening right now that also make this a good time for MESDA to find its own home?
I've really been working on this for the last four years, trying to pull all of the pieces together. It started, of course, back in the bubble, when things were great and we needed to move some things forward from that standpoint. It really kicked into gear again with the offshoring situation. What we were finding through national studies was that one out of every 10 positions in technology organizations could be offshored in 2004, and that one out of every 20 technology positions in non-technology companies could be offshored. So what that meant to the state of Maine is that we could have lost 400 technology jobs at a payroll hit of $130 million.
That told me that we needed to make sure we were giving broader sets of skills to Maine's technology workforce. Instead of someone being just a technologist, they were now becoming "versatilists," picking up skills across a range of different technologies. And what could happen from that is, if we're successful, then a company is maybe going to give off some of the commodity piece of a job, but individuals having more education will add value to the employer, and they'll keep that person on. The worst-case scenario is that if a job still gets cut, then what we've created in Maine is a really enhanced workforce that companies from across the country will start to look at and say, "Wow, we have to be in Maine because that's where the real talent is."
Besides talent level, though, you need a critical mass of skilled technology workers to attract companies, and Maine doesn't match the numbers that Silicon Valley or Boston has. What's been happening to your membership levels, and by proxy Maine's technology industry, since the big run-up of the 90s?
I would have to say since 1999 the industry has consolidated. There are a number of companies that just don't exist anymore. But our membership has been solid throughout that whole time. When I started in 1997, we had 50 member companies. And today we're about 250, and we've never had a membership campaign. So all of the members have come on because they're recognizing services that we offer and the return on investment that membership brings with it.
Have you noticed any changes in your membership that reflect changes in the industry's make up?
Well, the organization itself has changed. When MESDA was started it was the Maine Software Developers Association. We changed that a few years back to really encompass the information technology industry as well. There's a lot of application development going on in the state, and we wanted to make sure we could support both the software and the IT side ˆ and not just for developers but for the heavy users. Companies that are heavy users of technology feel comfortable with the programs that we're running, and what we're doing is working to support their workforce. [For example,] L.L. Bean is a member.
There are still software organizations around, there are still growing IT shops around. And what we're seeing is the telecommunications side is also a component of what we're doing now.
There's also a new media aspect that plays into [the organization]. In the beginning of February, we partnered with [Portland law firm] Troubh Heisler and had the second annual Business and Arts Collaboration, which was a neat art show. So we're getting more involved with the art community to make sure they're aware of the opportunities that exist within the technology field.
Besides running the users groups, are there other ways MESDA is trying to encourage workforce development?
Users groups are a key, definitely, but also this year we will be kicking off the Maine Brain Gain Campaign. With that, we're looking to create chapters across the state to identify folks in colleges and universities and make sure they're aware of what's happening [in the industry] in our state. We'd like to have an ambassador on each campus and have that person act as a liaison between MESDA and the students.
Now that we'll have a facility and can bring students into the users groups, the other piece is to get the students mixing and networking with the technology professionals in the state. That helps on a number of different levels. First, it starts to create some mentorships, so a student starts to feel some roots here, and also understands there is some technology going on in the state ˆ the kids get kind of isolated on campus. It also starts to create, on the company side, the opportunity to create internship programs. We're going to be looking at developing some templates for internships so the companies have an easier time getting started with that.
The other piece that's really important is that colleges and universities are great at dealing with companies that have HR departments. Most of the technology companies in Maine ˆ the small startups ˆ don't have HR departments. They get overlooked when students are looking for jobs. So if they start to network while they're still in school there's a better chance we can get the students interested in staying here.
What are the dominant trends in Maine's technology industry right now?
It's hard to say right now where the technology is going to shake out, because it changes all the time. My goal is not as much to monitor the technology from the standpoint of where the businesses are going, but to make sure we're providing the necessary infrastructure to enable any of these technologies to move forward.
You can't talk about tech industry development without talking about financing issues. How does Maine's venture capital environment look in 2005?
I think the best indicator is the round of money that BlueTarp just got ˆ over $14 million. One of the organizations that was part of that round is interested in other investments in Maine. So there is an interest in what we're doing.
I noticed that one of the other big venture investments last year went to Phylogix, a biotech company. With biotech appearing to have caught everyone's attention in recent years, do you feel any competition from biotech-specific organizations?
I don't really look at it as competition. Biotech organizations are members of MESDA. Idexx sits on our board. The programs really run in concert. I think if you were to look at our job board right now, you'd see the biotech companies hiring information technology and software people at just as high a rate, or maybe even a higher rate, than they are scientists.
Biotech has the sexy label now that IT and software had back in 1999. But biotech investments are going to be longer term, and payback is going to beˆ who knows? It's an avenue that's just starting to be investigated by VCs. I think a lot of VCs are also looking back to the software and IT industry again and seeing a lot of opportunities. I think Maine companies that have weathered the storm and have succeeded from 1999 to current, that always were there with a business plan that made sense, are looking very attractive now.
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