|
(Written
for Minnesota Technology Magazine, Fall, 2001)
MINNESOTA TECHNOLOGY 2001 TEKNE AWARD WINNER
PROFILE
LEADERSHIP: INDIVIDUAL
Joel Ronning,
Digital River
Vision. Innovation. Spotting and seizing opportunity. That's
leadership. Joel Ronning's leadership abilities emerged
earlier than most. While still a student at the University
of Minnesota, he earned $15,000 a month with a software
program he wrote to track hard-to-find Mercedes Benz cars
for dealers. It was just the beginning. Since then,
Ronning's leadership has launched three more Minnesota
companies, along the way producing seven patents in
encryption technology and digital delivery.
By tempering his success - and the success of his
companies-with a focus on Minnesota, Ronning is attracting
and building intellectual capital akin to that of Silicon
Valley, which will contribute to Minnesota's technology
community well into the future. Tekne Award judges agree: "Ronning
has made his mark on Minnesota by setting a standard of
success through his strong leadership and commitment to
promoting technology in the state."
From the launch of MAC USA-Ronning's direct-marketing and
catalog company-and Tech Squared, a software and peripherals
distribution company-to Digital River, Inc.-the Eden
Prairie, Minnesota Internet-based software delivery
company-Joel Ronning has proven his ability to predict
market trends, seize an opportunity and succeed. While all
of his companies have been market leaders, Digital River has
become the hallmark of his vision and innovation.
Anticipating the impact of the Internet back in 1994,
Ronning started Digital River with a new vision: "To use the
Internet instead of retail to deliver software, and be
recognized as the world's largest source of inventory,
transactions and fulfillment of software products on the
Internet." He rightly foresaw delivering software via the
Internet as more efficient, cost-effective and
environmentally friendly than delivering it on disks in
boxes.
Two years after beginning operations, Digital River reached
$3.4 million in net revenues. Upon attaining its aim of
market leadership among software publishers, Digital River
broadened its goals, setting its sights on becoming the
world's leading provider of e-commerce outsource services.
By 2000, six years after inception, Digital River was at
$31.2 million in revenues-proving that it could build
successful business-to-consumer and business-to-business
e-commerce solutions for a range of clients, from
manufacturers and distributors to brick-and-mortar
retailers. The company has attained more than 80 percent
market share of the digital services and software publishing
market. At its current pace, analysts project Digital River
net revenues in the neighborhood of $57 million-with the
company reaching profitability-by the end of this year.
But it didn't just happen. Ronning's foresight positioned
the company to take advantage of the Internet boom when it
came in the late 1990s. Likewise his sound judgment-what
some might call prudent restraint-helped the company weather
the Internet bust as well.
Digital River's unique and comprehensive approach to
e-commerce, along with its diversified product and service
portfolio, garnered stability and the ability to generate
revenues through changing market conditions.
Indeed, in the second quarter of 2001, while many companies
missed earnings targets and laid off staff, Ronning grew
Digital River's revenues 97 percent over net revenue logged
the same time last year. He did this efficiently, growing
his employee base by only 20 percent, while reducing
operating expenses 76 percent-"metrics that many companies
only dream of achieving," according to Perry Steiner, a
general partner with Arlington Capital Partners. Unlike
other companies of recent times, Digital River has had no
significant lay-offs due to a slowing economy.
It's important to Ronning that he builds his successful
technology companies in Minnesota, rather than Silicon
Valley. Digital River offers a fun-spirited, Silicon Valley
culture grounded in midwestern values and a strong work
ethic. Its open environment encourages people to stretch
their talents and have fun at the same time. For example,
it's not unusual for an employee to attend a company
barbecue on a Wednesday afternoon, bring a dog to work on
Thursday or share a beverage with a colleague on "beer
Friday."
It's not just his employees who benefit from Ronning's
leadership and Minnesota focus. Ronning, his companies and
his family contribute to the state's technology landscape.
Recognizing the importance of higher education and training,
Joel and his wife, Patricia, recently co-chaired the board
for Minnesota Technology, Inc.'s Scholarships for Technology
Careers program. Joel is also visible and proactive in
sharing ideas and views with other technology leaders at
local business roundtables. Finally, the national media
attention festooned upon Ronning and Digital River (in
publications such as Interactive Week, Internet Week,
Internet World, Business Week, Smart Business, Smart
Partner, Powerlunch, CBSMarketwatch and CNNfn) fosters
awareness of Minnesota as a strong technology state.
According to Tom Madison, president and CEO of MLM Partners,
"[Ronning's] success can be attributed to his leadership
skills-his ability to stay focused on a vision, set out
objectives and motivate people to achieve results. Digital
River is proof of his ability to turn vision into reality."
- Greg Irsfeld
#
# # |
