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MIP: Richard Firth

Software innovator and risk-based billing pioneer proves that local is indeed lekker

Monique Verduyn



Richard Firth of MIP

In 1989 Richard Firth left a stable job to join a small IT business called MIP. Founder of the business Granville Dunbar appointed him MD and Firth turned the business into one of South Africa’s most forward thinking software companies.

Today, MIP’s customers include healthcare,employee benefits and life assurance businesses, along with unit trust administrators, managed care companies and lending companies. Automotive dealerships also feature as a separate investment. And there is the motor maintenance and warranty short-term insurance.

One of the company’s first coups was the development of a new IT billing model based on a per member per month scenario.“To encourage business owners to go with our solutions, we decided to share risk.

By including all services in one figure, our partners could fix their IT costs. The variable bottom line was replaced by a fixed top line. We linked our growth to the success of our business partners and smoothed our cost infrastructure by having our suppliers buy into the same model.

“This risk-based billing model proved to be one of the company’s biggest differentiators. Large payments for software, followed by even larger financial outlays for implementation services, as well as regular upgrade and maintenance fees, are standard in South Africa.

“This just doesn’t make business sense,” say Firth. “So we share the risk with our partners. We don’t charge them for the product. Billing is calculated on a monthly per member or per policy fee, based on volumes. We use a sliding scale to reduce marginal costs, which includes all the upgrades and any new value-added systems.”

The monthly fee covers all costs relating to the system: the software, database licences, implementation, training, data conversion, ongoing support and product enhancements. From a user perspective,risk-based billing provides a guarantee that the service provider understands the users’ business and technology needs.

“Although our systems are tailored for specific market sectors, such as healthcare, life assurance and employee benefits, they have been created according to a common design that ensures ease of use and accessibility for the end-user. They have also been designed to support later additions and are easily managed and time-efficient, which translates into peace of mind for users.

They also give users the ability to offer their own clients improved service and quicker turnaround times.”In 2001, MIP developed the Astra framework which was chosen as the backbone for US company Progress Software’s opensource Web enablement initiative.

The framework is being deployed by partners worldwide. MIP used a Department of Trade and Industry (DTI) grant to develop Astra2, which beat entries from more than 30 other Progress developers around the world. Immediate benefits were a 71% increase in turnover in 2001, and growth of offshore revenue to 35%. “We completely repaid the DTI in taxable revenues within the first year of developing the product,” says Firth.

Firth says MIP understands industry challenges and uses these to develop its software. “It means that the software is appropriate for the industry and we can best advise on implementations and customisations to meet specific partner needs.

We are partners, not suppliers. The only way we can grow our business is to grow our partners’ businesses.”The company maintains an innovation incubator where some of the top technical skills in the country are allowed to be creative.

One of the highlights for Firth was receiving accreditation for MIP’s medical aid administration system from the Registrar of Medical Schemes,“One of our user partners, Genesis, was the only administrator to get unconditional accreditation in the first round. MSO, our managed care partner,also won unconditional accreditation in the first round for the managed care accreditation process.

That’s proof for us that local software does work and is a huge feather in our caps because that is the core of our business.”Firth’s biggest challenge has been trying to convince business that local is actually lekker. “Thank goodness for the registrars who have changed our financial services industry so much that it has become increasingly difficult to take an overseas application and implement it here.

Another challenge we face is implementing BEE in a young firm. The cost is vast and there is a high turnover of good, young black professionals.”With more and more international software companies being excluded from financial services industry tenders, the outlook for MIP remains sunny. “We have just been through a consolidation phase and we are now looking forward to extensive growth. A core aspiration for us is to spread our wings onto the global market.”

Monique Verduyn is a freelance writer. She has more than 12 years’ experience in writing for the corporate, SME, IT and entertainment sectors, and has interviewed many of South Africa’s most prominent business leaders and thinkers. Find her on Google+.

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25 Of The Most Successful Business Ideas In South Africa

Find out who’s making waves in numerous industries and how they managed to differentiate themselves in local and international industries.

Nicole Crampton



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“Disruption is all about risk-taking, trusting your intuition, and rejecting the way things are supposed to be. Disruption goes way beyond advertising, it forces you to think about where you want your brand to go and how to get there,” says Richard Branson.

South Africa has its fair share of innovative and disruptive businesses taking both local and international industries by storm. From cutting edge space technology to reimagined logistics, and innovative business models, here are 25 of the most successful business ideas in South Africa:

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Colin Timmis Says ‘Position Yourself For Success By Starting With The Numbers’

People pay first who they feel pressure from, so people will pay you when they feel pressure from you.






Entrepreneur Colin Timmis founded South Africa’s first cloud accounting practice in 2011, Real Time Accounting. Then, a few years after being appointed as South Africa’s first Xero partner Colin became Xero Country Manager South Africa. Xero is the emerging global leader of online accounting software that connects small businesses to their advisors and other services.

Related: Pat Pillai On How He’s Helped Over 5000 Entrepreneurs Using 3 Key Steps

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Company Posts

Two 20 Year Olds Reshape Entrepreneur Landscape With New Social Investment Platform

The Merge vision is to become the ‘go to’, digital meeting place for entrepreneurs and investors, and to truly make a difference in the world.

Merge Connect




Vital Stats

It’s no secret that finding the right investor for your venture is a challenge that most entrepreneurs face. The current process of finding investment is one that is outdated, and limits entrepreneurs due to a lack of time, and network that is needed to find the right investor. But, this doesn’t have to be the case in today’s digital society, says Zander Matthee and Brandon Bate, co-founders of Merge.

“By making the Internet the middleman, we are able to connect with each other much simpler and faster than before” was Zander’s response. “We have taken advantage of this, and have created a digital meeting place for entrepreneurs and investors” added Brandon.

Merge is a social platform that connects entrepreneurs and investors. It aims to simplify, refine and accelerate the process of finding investment for entrepreneurs, and the process of finding investment opportunities for investors. From idea to developed, the platform allows entrepreneurs to present a brief outline of their venture to a network of all investor types. While doing this, entrepreneurs are able to browse through, and connect with investor profiles that suit their requirements.

Related: 8 Codes Of Success That Helped Priven Reddy of Kagiso Interactive Media Achieve A Networth Of Over R4 Billion

From Private Investors to Venture Capital, and everything in between, Merge allows all investor types to join. Investors have the opportunity to personalise their feed to suit their investment preferences, and will be able to connect with innovative businesses – that are looking for investment – at their fingertips. Only once there is a mutual interest in each other, are users able to enter a secure private chat where they can discuss further and share documents under the protection of a digital NDA.

The two boys became good friends during their time in high school at St Stithians Boys College. However, it was only in their last year, 2016, that they decided to pursue their dreams and create the platform. They didn’t know how to code, so rather ironically, they needed some form of investment to get the platform off the ground.


“We knew we had a mountain to climb, but we believed in our vision and that we were really trying to make a difference, and if we could get others to see that, they would be onboard.” said Zander.

Related: Lessons From The Rich And Famous: Manage Your Money Like Oprah To Avoid Going Into Debt Like Nicholas Cage

Chris Peters is one of these individuals that bought into their vision, and became Merge’s first investor. As a successful entrepreneur and part time investor , Chris saw how much value the platform could bring to all entrepreneurs and investors alike. His marketing and strategic background gave him insight into how Merge could play a vital role in a lucrative space, Brand involvement.

“Entrepreneurship and SME development are two key factors that drive economic growth in developing countries like South Africa. That is why brands are currently getting involved, and looking to support entrepreneurs through various means. We have built a platform that allows these brands to successfully market, and execute on the programmes they have created to assist entrepreneurs.” said Chris

Merge was created to assist all entrepreneurs and investors in finding exactly what they are looking for, regardless of age, race, sex, financial position or social status. That is why anybody can sign-up as an entrepreneur. As long as you are determined and willing to work for your dreams. For too long has the investor space been seen as an “elite club for the select few”, and Merge is here to change that. Whether you’ve gotten your bonus at the end of the year and looking for new investment opportunities, or are an active investor, you can sign-up. Whether you’re currently working, or a retired industry leader, you can join as a mentor.

Their vision is to become the ‘go to’, digital meeting place for entrepreneurs and investors, and to truly make a difference in the world.

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