Connecting in the Virtual World

Marketing 101

Leaving Town


Corrections or additions?

This article by Barbara Fox was prepared for the May 7, 2003 edition of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane

Princeton can expect an influx of suntanned Floridians

this summer when nearly 300 top officers and staff of Tyco International

are scheduled to move into 9 Roszel Road. The new occupants will come

from Boca Raton and Manhattan, and while the New Yorkers might reasonably

expect to make the reverse commute, commuting would be difficult from


Gary Holmes, company spokesperson, says that the Roszel Road office

will house "the bulk of the corporate staff" but that the

Florida and New York offices will not close completely.

The 40-year-old now controversial company started as a telephone cabling

firm in New Hampshire. A manufacturing conglomerate, it takes in about

$36 billion a year; it makes everything from paper diapers to electronics

and medical supplies, and it owns ADT, the home security company.

The extravagances of L. Dennis Kozlowski, the former CEO, have been

the subject of much speculation since he resigned last June. Edward

Breen, the new CEO who is a resident of New Hope, is trying to rein

in debt and scandal. Tyco’s company’s offshore headquarters is Bermuda,

and its U.S. headquarters will remain in Portsmouth, New Hampshire.

From the "gleam in the eye," when Tyco began to look at moving

to New Jersey, to when the ink was dry on the deal was about nine

months. Tyco will take 111,768 square feet, all of the smaller of

two SJP Properties buildings on Roszel Road, which Merrill Lynch had

leased through 2009. ClinPhone, which occupies 25,000 square feet

in the two-story building that Tyco wants, will be relocated to the

three-story 7 Roszel Road, where the cafeteria serving both buildings

is located.

The architect for the 9 Roszel Road building was Hillier’s John DeLuca,

and boasts such distinguished design elements as mason-laid brick

with limestone, a long inset balcony, and an 80-foot curve on the

facade (U.S. 1, October 6, 1999). On the inside, the offices will

reportedly be spruced up before the move in. But whatever redecorating

is done, it won’t be anything like what the executives were used to

at their 10-story Boca Raton office. An August 7, 2002, article in

the Wall Street Journal reported that the former CEO’s doctor, fitness

trainer, and yacht builder were on the company payroll, as was his

favorite chef, for whom two executive dining rooms were built. "Executive-floor

staffers could special-order breakfasts delivered to their desks on

china. On Fridays, a masseur came around to soothe away stresses,"

said the WSJ.

The WSJ also reported that the company turned in the 1990s into

Kozlowski’s "personal cash machine," allegedly wiping out

at least $69 million in personal loans and paying for other extravagances.

A spokesperson for Kozlowski, quoted in the WSJ article, said "the

trainer and doctor were hired as part of a corporate wellness program,

and the chef and corporate dining rooms were added to cut costs and

improve efficiency, as many executives were ordering in costly meals

or leaving the office to eat."

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A nonprofit organization with a little Internet business

on the side has divested itself of the Internet business. North American

Electric Reliability Council, a 42-person group at Forrestal Village,

is the electric industry organization that monitors bulk electric

systems in North America. It has just passed on its Internet Service

Provider business to a privately run ISP based in Newton, Tellurian.

"After 9/11, they needed to focus 100 percent of their time,"

says Joe Giroux, sales manager for Tellurian. "They had been approached

by AOL but did not want their customers to get lost in the large companies.

We are a regional company, very customer oriented, with high end services,

growing fast — we just recently made the Inc. 500. The transition

on May 1 "could not have gone more smoothly," says Giroux.

Former NERC customers have one year to manually change their settings.

Tellurian founder Robert Boyle, whose father is an IT manager in a

large company, is something of an entrepreneurial prodigy because

he founded the firm in 1995 at the age of 20 and, unusual among ISPs,

it is profitable. Giroux, a 1992 alumnus of Rider University, started

with RCN when it was a 50-person company called C-Tech and ran sales

and operations from Manhattan when it had 5,000 employees. Then he

met Boyle and signed on with the 16-person firm.

"The number one reason Tellurian is still around is that Robert

did not buy into the `build it and the customer will come’ idea. He

believed in growing slowly and that has paid off," says Giroux,

making an unspoken contrast with RCN. Boyle has bought three companies

this year and made the INC. 500 list. "He has built up quite a

treasure chest," says Giroux. "We do not have debt. We do

not want to be influenced by someone dictating."

One of Tellurian’s customers is Nassau Broadcasting, and advertising

on Nassau Digital Media’s ferry terminal screens is part of its marketing


Tellurian offers NERC customers such additional services as DSL and

24 x 7 technical support, and it pledges not to raise rates for customers

who keep their current plans. "The NERC people were being good

community activists. They realized that you don’t make money as a

small ISP," says Giroux. He says the money exchanged in the buyout

was minimal. "For the acquisition, they didn’t want money, they

just wanted to be sure customers were taken care of."

North American Electric Reliability Council (NERC),

116 Village Boulevard, Princeton Forrestal Village, Suite 390, Princeton

08540-5731. Michehl R. Gent, president and CEO. 609-452-8060; fax,

609-452-9550. Home page:

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Connecting in the Virtual World

It’s every entrepreneur’s dream. You get an order for

your product from Wal-Mart, or one of the big catalog firms. Now comes

the entrepreneur’s nightmare. To be a supplier to one of those big

firms, you have to integrate your operations with their databases.

Yaron Inbar, founder of Interlace Corporation at 5 Independence

Way, offers a way for companies to rapidly automate their electronic

business transactions. "We deliver a single integration point

through which our customers can reach their entire trading network,

leaving their existing systems and processes undisturbed,"

says Inbar. "Interlace effectively removes the complexity barrier

that has kept both large and mid-market firms from achieving real

value from business integration."

Formerly known as PanamaTech, the firm announced a name change, expanded

from 1,200 square feet to 4,500 square feet at 5 Independence Way,

and took on a new chairman, Etienne Perold. The company had eight

people in 2001 and has 12 full-timers now, plus partnerships.

"B2B was one of the darlings of Internet bubble," Perold says.

"The area that has outdistanced the post bubble correction is

integrating suppliers with electronic systems." Wal-Mart, for

instance, has driven 14,000 suppliers to integrate with their electronic


The company’s clients are Fortune 500 and mid-market companies as

well as their trading partners in such industries as chemical, automotive,

food, packaging, consumer goods, and pharmaceutical. For the large

companies, Interlace helps speed up the transition to electronic transactions,

and for the smaller companies it can outsource the whole process.

A transaction-based pricing model lets customers track costs.

"We do everything except getting money to flow from one business

to another," Perold says. "We get documents to flow. Our company

links companies for anything from presenting inventory to vendor-managed

inventory, providing the methodology, infrastructure, software, and

service — we host transactions on our hub."

A venture developer, Etienne Perold was a practicing psychologist

for a dozen years. "I help promising tech ventures achieve economic

viability by recruiting the right people and growing their human capital,"

says Perold, who was named chairman last month after one year with

the firm. He went to the University of the Witwatersrand, Johannesburg,

South Africa, and has a PhD in psychology from Rutgers. His venture

development firm, Founding Partners, helps companies find strategies

to multiply their value, locate and hire the right people, and get

appropriate financing. He has also been a director of Ariel Corporation

at an early stage in its life (the 10-year-old public firm closed

last year) and helped orchestrate the spinoff of its broadband division.

He had also been co-founder of Quantiva Inc., a three-year-old, 15-person

Forrestal Village firm that offers performance management systems

for Internet businesses (

Inbar, the president, graduated from Columbia’s five-year

program, (combining the bachelor’s and MBA degrees) in 1989. He had

been a technology project leader at Bristol-Myers Squibb and Parke-Davis

focusing on integrating data warehousing, CRM implementations, and

handheld solutions into legacy systems.

When he founded the firm as PanamaTech in 1999, the name referred

to how the Panama Canal was a breakthrough in transport, saving a

continent’s travel, and how use of the Internet technology offers

a short cut. Also to how boats going through the canal were entrusted

to a pilot who navigated on the owner’s behalf.

"At the time we changed the name, we wanted to build further layers

onto our capability," says Perold. "We decided that this name

did not focus on the business technology. It did not convey the breadth

and versatility of our technology whereas the new name, Interlace,

refers to artfully linking existing systems to each other. We think

it speaks directly to deeper implications in the market, that when

you accommodate change, without imposing change, you have a winner."

"As an entrepreneur I feel I have a good feel for market opportunity

and the teams that can address them," says Perold. "Quantiva was

an opportunity based on core drivers that would survive a bubble environment

— websites have to work and that is what Quantiva does."

"As an investor, I saw that this company focuses on an opportunity

that would endure beyond the Internet bubble — a sleeping giant

that is not sleeping any more," Perold says. "Business is

on a steady growing march to electronic integration, and this team

is the best I have found. It combines unusual capabilities in just

the right way."

There’s plenty of room for growth in this market. In 1999 it was predicted

that E-commerce in the B2B area would be $1.3 trillion by this year.

The actual figure is $2.4 trillion, says Forrester Research. Says

Perold: "We’re a new kid on block hugely capable of helping large

firms get B2B right, and we hope they will be happy to talk to us."

Interlace Corporation, 5 Independence Way, Suite

300, Princeton 08540. Yaron Inbar, president. 609-520-0022; fax, 609-520-0044.

Home page:

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Marketing 101

Understand the full capacity of technology, but have

right-sized expectations about its possibilities for your small business,

says David Hisbrook, a former adviser to Barnes & Noble, XLibris,

and the Blue Tulip retail store. Hisbrook has opened a consulting

practice, Marketing 101, at 743 Alexander Road.

A Texas native, the son of educators, Hisbrook graduated from the

University of Texas in 1976. He worked in publishing sales, did marketing

management for Barnes & Noble, and was vice president of marketing

for Lechters, an upscale kitchen and housewares store. When Hisbrook

started his own business last year, one of his first clients was a

former Barnes & Noble colleague, David Cully, the founder of Blue

Tulip, the gift and card store with a flagship location at Nassau


At Barnes & Noble, Hisbrook had learned that entering E-commerce with

the right product mix at the right time is very crucial to success.

Though Blue Tulip’s business does not lend itself to an E-commerce

strategy, it still uses technology appropriately in the store, says

Hisbrook. "They do a fine job of creating and printing lots of

materials for consumers. Custom printing is an important part of their


Hisbrook used the E-commerce knowledge gained at Barnes & Noble when

he worked with XLibris, the publishing-on-demand company that started

in Trenton and moved to Philadelphia. Like many dotcoms, it had to

change its business model.

"In 1999 the world was full of thoughts about the Web’s very rapid

growth and valuation increases," says Hisbrook. "XLibris thought

it was a community. Part of its strategy was to aggregate a large

number of writers by offering free services, and to make money by

selling additional services and selling books. That turned out to

be not a valid concept."

Printing on demand is now the chief core service for XLIbris, and

it also does copyediting, manuscript data entry, and marketing services

— such as press release and publication announcement campaigns,

book review mailing campaigns, and promotional aids like postcards

and bookmarks.

Five years after its founding, XLibris has 5,000 books available through

a printing on demand business, and it is a strategic partner of Random

House Ventures LLC. Its competitors are 1stBooks and IUniverse.

"When XLibris changed its business and pricing concept," says

Hisbrook, "it became an astute controller of cost, a relatively

good marketer, and survived the bust. With 60 employees, it is in

the black."

Marketing 101, 743 Alexander Road, Suite 6, Princeton

08540. David Hisbrook. 609-203-5727; fax, 609-520-1300.

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Leaving Town

General Dynamics, 128 Lakeside Avenue, Burlington

05401. 802-657-6000; fax, 802-657-6292. Home page:

The 10-person combustion research lab at 11 Deer Park Drive closed,

and calls are being taken in Burlington, Vermont, where about 500

people work.

The company was formerly known as Princeton Combustion Research Laboratories

and had a testing laboratory on the Forrestal Campus. It had had contracts

to help the U.S. government in determining the feasibility of disposing

of munitions stockpiles in Russia and Ukraine and in determining the

commercial viability of recycling the munitions components for industrial

applications in these republics of the former Soviet Union.

AmeriCredit Corp. (ACF), 1 Greentree Center, Suite

306, Marlton 08053, 856-988-7400; fax, 856-988-7500. Home page:

AmeriCredit Corp. moved from 5 Vaughn Drive to Marlton.

B&R Industrial Automation Corp., 1325 North Meadow

Drive, Suite 130, Roswell GA 30076. Peter Mathe, sales manager. 609-395-9912.

Home page:

B&R closed its 7 Centre Drive office and calls are being taken at

its headquarters in Roswell, Georgia, though the New Jersey phone

numbers still work. The firm sells operator panels, PLCs, and industrial


Buckman Architecture Group, 725 Federal Avenue,

Kenilworth 07033. David W. Buckman. 908-241-3457; fax, 908-241-3459.

David W. Buckman moved his commercial architecture practice, formerly

called Silverstein Buckman Architects, from Georges Road in North

Brunswick to Kenilworth. Phone and fax are new.

Caregivers Maid in Heaven Inc., 289 Montgomery

Avenue, Bala Cynwyd 19004. 888-999-2644; fax, 609-730-1005. Home


The placement service for nannies, housekeepers, and companions has

moved from 2 South Main Street in Pennington to Bala Cynwyd, Pennsylvania

and has a new phone and fax.

El Paso Corporation (EPG), Railroad and Chemical

Avenues, Linden 07036. 908-474-0800; fax, 908-474-0804.

The El Paso Corporation moved from Forsgate Technical Center, 1095

Cranbury South River Road, and has a new phone and fax. It is the

regional office for cogeneration plant in Camden, Bayonne, and Linden,

and was formerly known as East Coast Power.

Pandatel, 1095 Cranbury-South River Road, Forsgate

Technical Center, Suite 24, Jamesburg 08831. 609-860-5971; fax, 609-860-5974.

Home page:

The North American office of a manufacturer of fiberoptic multiplexing

systems has closed. The company is headquartered in Hamburg, Germany,

and an employee, who did not wish to be named, says that she does

not know whether the firm will open another office on this continent.

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Ann Griffith Angell, 69, on April 17. She had been a measurement

statistician at the Educational Testing Service and had retired to


Diane T. Nevius Updike, 50, on April 25. She was a claims

adjuster at New Jersey Manufacturers Insurance Company.

Richard M. Ludwig, 82, on April 28. At Princeton University

he was emeritus professor of English and associate university librarian

for rare books and special collections at Fireston Library.

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