Carol Bartz, chairwoman of Autodesk Inc., has just handed over the role of chief executive officer to a man she once fired from the software firm for being a trouble maker, and then rehired a short time later.
The 57-year-old has used her flexible but no-nonsense management style to transform the California company from a floundering, one-product firm into a global player whose design software is the tool of choice for architects, engineers and filmmakers around the world.
Labelled by the U.S. media as one of the most powerful women in business, Ms. Bartz took home almost $29-million (U.S.) from exercised stock options, salary and bonus last year. She said she will still play an active role as chairwoman. Autodesk has targeted 15-per-cent annual growth for the next five years.
Two key drivers are expected to propel sales, which reached $1.5-billion in the fiscal year ended Jan. 31: A move to three-dimensional images in the design world and a torrent of manufacturing and building in the developing world.
"The architects and engineers and artists of the world are as busy as they can be right now, whether it's for infrastructure projects, manufacturing across the world or the media that's coming on. Look at the feature-length films that are animation today. It's an amazing time," Ms. Bartz said in a recent interview in Toronto.
Autodesk's software is used by a broad range of customers, from engineers designing bridges and auto makers building new vehicles, to filmmakers creating animated characters and visual effects. Canadian customers include the engineering firm SNC-Lavalin Group Inc., manufacturer Bombardier Inc. and video-game developer Electronic Arts Inc.
Autodesk's shares have had a bumpy ride over the last year, but are still up about 15 per cent. Analysts like the company's product lineup and strong position in the design-software market. "Autodesk is one of the very few software companies, in our opinion, that does not have Microsoft as a competitor," says Sasa Zorovic, an analyst with Oppenheimer & Co. Inc. in Boston.
Rivals are Avid Technology Inc. of Tewksbury, Mass., and Adobe Systems Inc. of San Jose, Calif.
Mr. Zorovic warns that any slowdown in economic growth, especially in construction, will hurt Autodesk's growth. But Ms. Bartz says the company has become sufficiently diversified across industries and markets that it will weather any economic slowdown.
To broaden the types of design software it sells, Autodesk has tapped plenty of Canadian talent over the years. In 1999, it paid $420-million for Discreet Logic Inc., a Montreal firm that specialized in design and engineering software.
Last year, Autodesk bought Alias Systems Corp. for $182-million. The Toronto-based firm's software creates three-dimensional graphic images that can range from technical designs to animated characters. It has been used to help shape, size and engineer products ranging from Apple Computer Inc.'s iPod to automobiles from every major manufacturer in the world.
Ms. Bartz said the integration of Alias is proceeding as planned and should contribute to Autodesk's profit this fiscal year.
Autodesk's expanded media and entertainment unit, responsible for about 15 per cent of overall revenue, is based in Montreal. Autodesk also has offices in Calgary, Toronto and Ottawa, and employs nearly 1,000 Canadians.
While Ms. Bartz says there is plenty of engineering talent here, she warns that both Canada and the United States must step up their education efforts in math and science if they are to remain competitive with the developing world.
"When we hire a software engineer in China, the average number of qualified applicants for every engineer we hire is 600. Think about that. Think about having 600 qualified people coming in for your job."
Both countries are producing fewer engineers and scientists than they will need, she said. As a member of U.S. President George W. Bush's Council of Advisors on Science and Technology, Ms. Bartz has a role in shaping and setting that government's high-tech agenda.
"The North American edge still is our creativity," she said. "A lot of the engineers in the other parts of the world are more engineers by rote. [But]sometimes as human beings we need to wake up. Change is hard and it has to be pushed on us."