Datalogic CEO Leads Company Into New Era AB&R Appoints Dino
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1572 Kuntz Road ■ Erie, PA 16509 ■ PH (814) 866-1146 ■ http://www.scandcr.com May 25, 2007 THIS JUST IN! Datalogic CEO Leads Company Into New Era AB&R Appoints Dino As of April 2, Datalogic SpA officially completed its Farfante President/COO business transformation into four autonomous companies [See SCAN/DCR 4/13/07]. The Datalogic Group’s new On May 11, American Barcode and organizational structure is now operational with the RFID Inc. (AB&R) announced that Dino former business units acting as separate entities: Farfante has joined the company as Datalogic Scanning, Datalogic Automation, and president and Chief Operating Officer. Datalogic Mobile. Company CEO Roberto Tunioli, along Farfante was formerly president of Insight with the help of his key advisers and the Datalogic Board, Direct Worldwide and has been a was responsible for the strategy behind the restructuring. business partner and member of the Board of Directors of AB&R since May In a recent conversation with the 2006. visionary leader, he explained why he favors his strategy over the seemingly “Dino's extensive contradictory strategies being experience in managing implemented by some of his the growth of large competitors. “Often, we hear about organizations, leading companies trying to be a one-stop- proactive sales and shop for AIDC technologies,” Tunioli marketing models, and told SCAN/DCR. “Certainly, we’ve seen executing strategic this in companies like the former initiatives will significantly Symbol—now Motorola—and strengthen AB&R's Roberto Tunioli, Intermec. But, managing a company vice chairman/CEO, like that is difficult. You almost have to management team,” said Datalogic SpA. Michael Stryczek, who Dino Farfante, new be a god to understand every aspect of president/COO, the market and how to keep all the will continue his roll as American Barcode Chief Executive Officer. and RFID Inc. divisions working together. I believe that, by letting each “Over the last year we division run autonomously, you can keep things simple have benefited greatly from Dino's advice and avoid complexity. and guidance as a board member and we are excited to have him actively involved “Our transformation allows the autonomous divisions to in a leadership roll on a day-to-day basis.” focus more clearly on developing products that match customer needs,” he continued. “Our service businesses Farfante’s track record should prove are specialized. And, it is much easier to evaluate how a valuable to AB&R. While at Insight, division or product line is doing in its market. We’ve Farfante grew sales from $400 million to found that our managers are much more motivated, over $3 billion in nine years. because their efforts and successes are more visible.” For more information: American Finding adjacent markets Barcode & RFID, Phoenix, AZ, Tunioli contends that the AIDC industry has reached a PH (800) 274-0324, point where it is difficult to sustain double-digit sales and Email: [email protected], revenue growth. “Traditional markets are providing Web site: www.abrfid.com. consistent growth,” said Tunioli, “but just not in the double digits. I believe the only way to increase our company’s ability to grow at a faster rate is to find new markets…markets that are adjacent to what we already do. Often, it requires an acquisition of a company already playing in the adjacent market.” Since 1977, the premier management & marketing newsletter of automatic data capture, including: ● Bar coding, 1-D & 2-D symbologies ● Bar code printers, scanners, terminals, verification products and labels “...I believe the only way to increase our ● Wireless (RFDC & RFID) company’s ability to grow at a faster rate is to ● Magnetic stripe find new markets…markets that are adjacent to ● OCR products ● Voice recognition systems what we already do. Often, it requires ● Vision systems, video scanners an acquisition of a company already ● EDI playing in the adjacent market.” ● Smart cards ● Biometrics Roberto Tunioli, CEO/vice chairman, ● Application software Datalogic SpA. ● Peripherals or supplies for the above Vol. 30, No. 10 Several years ago, Datalogic acquired a company called Laservall [See SCAN/DCR 10/29/04], which in its early days, provided laser technology for soldering jewelry, such as gold and diamonds. It also offered laser technology for the Editor: Rick Morgan medical industry. Tunioli recognized that Laservall’s PH (814) 866-1146 [email protected] technology would also work well in industrial part marking applications, a market that is predicted to show rapid growth. [See the Cognex story in the 4/27/07 issue of Founding Editor: SCAN/DCR.] So, he approached Laservall’s management George Goldberg and convinced them to give DPI (direct part marking) a try. A year later, the two companies merged. This is one Publisher: Larry W. Roberts example where Datalogic was able to enter a market RMG Enterprises, Inc. through the acquisition process. 5905 Beacon Hill Lane Erie, PA 16509 “Part of the evaluation process is to look upstream and PH (412) 480-5116 FX (412) 291-1352 downstream from where your product fits in,” said Tunioli. [email protected] “Datalogic’s main expertise is in AIDC readers. But, readers are only useful if there are labels and markings.” Tunioli also cited the “portable shopper” market as one SCAN/DCR is published 24 x per year, on the 2nd & 4th Fridays of the month, by: that has done well for the company. The portable shopper RMG Enterprises, Inc. concept was developed years ago, but never really caught 5905 Beacon Hill Lane on to a great degree in the United States. According to Erie, PA 16509 Tunioli, it is a rapidly growing market in Europe where both PH (412) 480-5116 Datalogic and Symbol offer systems. Web Site http://www.scandcr.com Copyright © 2007 by RMG Enterprises, “This is not the same as self-checkout,” said Tunioli. Inc. Federal copyright law prohibits “These are individual terminals that customers carry with unauthorized reproduction by any means them as they do their shopping. Our sales of these systems including photocopying or facsimile distribution of this copyrighted newsletter. went from zero to eight million Euro ($11 million) in just Such copyright infringement is subject to five years.” fines of up to $25,000. Because subscriptions are our main source of income, newsletter publishers take Datalogic Mobile already seeing results copyright violations seriously. Some Although the transformation officially ended the first of publishers have prosecuted and won April, the process had been going on for months. In our enormous settlements for infringement. To encourage you to adhere to this law, we April 13 issue, Datalogic Scanning President/CEO Bill make multiple-copy subscriptions available Parnell told us about some of the positive results he was at a substantially reduced price. seeing. According to Tunioli, Datalogic Mobile is also doing Subscriptions: $597 per year for very well. electronic copies. 2 SCAN: The DATA CAPTURE Report May 25, 2007 Notice: No part of this publication may be reproduced or transmitted by any means, electronic or mechanical, without written permission of RMG Enterprises, Inc., Erie, PA, USA. Datalogic Mobile is the combination of Datalogic keep our innovation strong and move from Mobile Computer and the former PSC’s wireless products that do too much to ones that simply do business unit. The consolidated results reached by what a customer needs. the two, in the first three months of the year, is 26 million Euro (over $33 million), with a total “I want to thank our staff from the various growth of 20% over the first quarter of last year. divisions, John O’Brien, Bill Parnell, Francesco The performance of the Datalogic Mobile Montanari, and the team at Ernst & Young for all Computer business unit was particularly the hard work they provided during the exceptional with a registered increase of 45% over transformation process. It was like a family the same period in 2006—a record for the atmosphere, and they continue to help us company. maintain our momentum in the market.” “These results are amazing when you consider For more information: Datalogic SpA, Bologna, that they were reached during a period of Italy, PH +39 051 3147 479, extensive company transformation,” said Email: [email protected], Francesco Montanari, GM of Datalogic Mobile. Web site: www.datalogic.com. “Our customers and partners have confirmed their trust in us once again. This is definitely the best way to start Datalogic Mobile’s new adventure.” RFID—how fast will it grow? Hello Goodbye—Ian Smith Long before many of the current market leaders Leaves AIM UK For New were even in existence, Escort Memory Systems, owned by Datalogic, was pioneering Position RFID technology. So, we asked Tunioli to give us his spin on how RFID adoption will play out. “In There were two significant retirements in Great general, Europe is not as strong as some Britain in recent weeks. Tony Blair announced his geographic areas in the use of high-tech retirement date as Prime Minister after 10 years of products,” he replied. “So RFID is not as big here service; Ian Smith resigned as the General as it is elsewhere in the world. But, I don’t think Secretary/Chief Executive Officer of AIM UK after RFID is nearly as big as it will be in the future. 23 years of non-stop service. “I may differ from some of my peers, but I believe As far as the AIDC industry is concerned, Ian's RFID will follow the same course as other AIDC resignation is potentially the most interesting. He technologies. Adoption is not going to be an leaves to take up the role of CEO of a new multi- overnight process.