A Virtual Company Enhancing People-to-People Communication
A Virtual Company Enhancing People-to-People Communication
From the 70's to the 80's
In the late 1970s and early 1980s, as our inventor's fledgling company navigated the complex landscape of innovation, a breakthrough moment emerged with the deployment of the Expedialer at Macy's furniture dispatching and delivery center in Stone Mountain, Georgia.
John Lucas's Return: During this pivotal time in late 1979 and early 1980, John Lucas played a crucial role in the company's journey.
He returned, not just as a familiar face but as a catalyst for progress, picking up the first-ever Expedialer unit for delivery to Macy's furniture dispatching center.
Revolutionizing Confirmations: The impact of the Expedialer was swift and transformative.
Prior to its introduction, the manual process of confirming telephone deliveries was a laborious and time-consuming task. Individuals had to manually dial each number, spending a significant portion of their time navigating through rings, bad numbers, and announcements—an inefficient and tedious process.
Efficiency Unleashed: With the deployment of the Expedialer, a new era began. Though not initially fully automated (as the 'answer detection' feature was yet to be invented), the operator could now enter all the phone numbers to be called for the day.
Utilizing one of the 4 telephone lines, the operator retrieved the next phone number stored in memory. As multiple lines rang simultaneously, the operator silently listened, ready to initiate the next step.
Streamlined Confirmations: As soon as a person answered their phone, the operator pressed the 'play' key, initiating a pre-recorded voice message.
This message sought confirmation of the next day's delivery appointment. If confirmed, either through a touch-tone signal or a voice response, the furniture would be promptly loaded onto the delivery truck. If not confirmed, the customer would be contacted at a future time—a seamless and efficient process that marked a departure from the cumbersome methods of the past.
This deployment at Macy's not only showcased the practical application of the Expedialer but also paved the way for future innovations.
The positive feedback received from this endeavor fueled the inventor's determination to refine and enhance their products, setting the stage for the remarkable growth that lay ahead in the 1980s.
The challenges faced in those early days served as stepping stones, propelling the company toward becoming a hallmark of ingenuity in the years to come.
1981/82 - The Genesis: Pioneering the Compudialer™
The Genesis: Pioneering the Compudialer™
In the early 1980s, amidst the technological revolution, Melita embarked on a journey that would redefine the landscape of communication and automation.
It all began in 1981 when our visionary inventor successfully developed and installed the first-ever Compudialer™ at the Wisconsin Emergency Notification Center, a pivotal moment that marked the birth of a groundbreaking solution.
Fueling Innovation: Automated Political Solicitation in Tennessee
Following this success, our inventor didn't rest on his laurels.
In 1982, he introduced an innovative, automated political solicitation system in Tennessee, showcasing his ability to adapt his creations to diverse needs. This marked the inception of a visionary's plan to maximize returns on his intellectual properties and solution investments.
Navigating Uncharted Waters: The Mailout Program
Undeterred by the unfamiliar terrain of marketing, our inventor, with the support of Halina, embarked on an ambitious journey. Armed with thousands of envelopes, stamps, and printed advertisements, they launched a massive mailout program.
Little did they know that a simple sponge could have made the process much smoother. The stamp-licking days are now cherished memories, a testament to the humble beginnings of a grand enterprise.
The Leap of Faith: Leaving Lockheed and Starting Solo
By June 1982, responses from the mailout program trickled in at 1%-2%, prompting our inventor to log contacts in his 'purple' notebook, a cherished relic of those early days.
With uncertainty hanging in the air but an undeniable potential to replicate the success of the Compudialer™, he made a life-altering decision — to leave Lockheed and venture into the unknown.
Armed with determination and a gut feeling that he could generate income to sustain his family, our inventor took the plunge. Despite having no commitments and only a modest income from his kids' account, he set out on a path that would lead to the creation of a pioneering company.
Formalizing Independence: The Separation Agreement
Before embarking on this entrepreneurial journey, our inventor, in consultation with Ben, formalized a separation agreement. While Ben opted to stay at Lockheed for reasons including financial security, our inventor took on the challenge of building something from scratch. The agreement meticulously allocated assets and intellectual properties, setting the stage for an independent venture.
Crafting the Future: The Birth of Sprintel®
As 1982 unfolded, creativity continued to flow. The year saw the emergence of a multi-color brochure, innovative mailouts, and redesigned packaging for the Compudialer™.
The culmination of these efforts was the creation of Sprintel®, a configuration that would serve as the cornerstone for numerous solutions and products in the years to come. With audio cassettes separated from the main microprocessor controller board, housed in a sleek plastic enclosure, Sprintel® became the blueprint for future innovations.
In the pages of this remarkable journey lies the essence of a relentless pursuit of innovation, a testament to the spirit of entrepreneurship that defines our company.
First Office
In January of 1983, I found myself at a pivotal juncture, embarking on a journey to establish something of my own. After diligent negotiations with Shaheen and Company, I secured a 3000-square-foot space in an industrial office park. This shell of a space held immense potential, and with the support of allowances from Shaheen, we began crafting the foundation of our venture.
The front part of the space underwent a transformation, evolving into three offices and a modest lobby. I staked my claim in the corner office, with my neighbor Dale La Porte occupying the space next to mine. Chester Quinn, our software developer, settled into the office nearest the front door, while Jerri Fleet, our indispensable assistant and visitor's welcomer, held court at the front lobby's desk.
The remainder of the open space was a canvas awaiting purpose. Shelves were installed for inventory storage, benches for PCB assembly and testing, and rear doors designated for shipping and trucks. In collaboration with Mr. Herb Joast, a German man leading a dedicated team, electronic parts found their place on printed circuit boards that I had meticulously designed. Sam, our skilled technician, would put these boards to the test, assembling systems and conducting comprehensive evaluations of Expedialers and, later on, Sprintels.
In those nascent days, the seeds of our enterprise were sown with great personal sacrifice. To kickstart the business, I committed the entirety of my savings—$6,000—from the Lockheed Credit Union savings account. This modest sum became our lifeline during those initial months, sustaining us as we navigated the challenges of building something from the ground up.
It wasn't until I crossed paths with Mike Dormer that the tides began to turn. Through shrewd negotiations and a financial agreement, funding finally flowed in. Mike pledged to provide financing, supporting my family with up to $19,000 per year and allocating additional funds for inventory and system production. In return, he secured a stake in the fruits of our labor—a percentage of future sales from the newly developed 'Sprintel.'
Even in the face of financial uncertainties, I continued to forge ahead, selling a few more 'Expedialers' to John Lucas. These transactions not only bolstered our finances but also served as a testament to the potential of our products.
The adversary and the foe.
In the tumultuous journey of building his fledgling company, our inventor faced a formidable adversary in the form of Ronald Katz, a figure with a past at Amex and an ambitious agenda.
Unbeknownst to Chuck Warner, Katz quietly enlisted the services of intellectual property lawyers to challenge and dismiss our inventor's patent related to Caller ID.
Katz's legal team went to great lengths, filing dismissal documents with the intention of convincing the US Patent Office that Katz held the initial invention. Despite Katz having a patent under his name from his time at Amex, it was discovered that it rightfully belonged to the company.
The patent did not address the true essence of Caller ID, failing to utilize the extracted and decoded phone number of the caller to search for and display relevant information.
Upon discovering Katz's maneuvering, our inventor took legal action, demonstrating that his patent, specifically '911, claim 42, performed the crucial function Katz's patent lacked.
Faced with the evidence, Katz and his attorney approached our inventor for discussions on potential payment and cross-licensing agreements. Meetings were held at Melita's offices, where a deal was struck—a $10,000 payment to our inventor and cross-licensing arrangements that expanded their intellectual property portfolio.
Little did our inventor know of Katz's future plans for his business. Over time, it became apparent that Katz used the acquired patents, including our inventor's '911 patent, to sue major US telecommunications companies.
Companies such as AT&T, MCI, Verizon, Bell South, Sprint, and more faced legal threats, resulting in multi-million dollar settlements to avoid going to trial. Katz's company amassed an immense fortune, reaching over $600 million in the late 1990s.
Despite our inventor's belief in sharing innovations globally at reasonable licensing fees, Katz took a different path. His aggressive approach, characterized by acquiring key innovations and using them as leverage to extort money, earned him significant wealth. Katz indulged in a lavish lifestyle, acquiring a private plane, luxury items, and multiple homes.
In a surprising turn, when our inventor reached out to Katz, hoping for charitable contributions to causes they both ostensibly supported, Katz declined. Despite the undeniable role our inventor's innovations played in Katz's success, he refused to contribute, citing existing commitments to other causes.
The clash with Katz serves as a stark reminder of the complexities and challenges inherent in the world of intellectual property, where innovation and legal maneuvering can shape the destiny of companies and individuals alike.
Building Sprintel product line.
Contract with LA Unified School District
Seizing the Opportunity
In the labyrinth of innovation that characterized the late 1980s, Melita International found itself on the brink of a transformative opportunity.
As the Sprintel product line took shape, a cascade of automated features, including 'answer detection,' support for multiple audio message recordings onto a single loop cassette, and downloadable software updates, heralded a new era for the company.
The Tipping Point: Amidst the whirlwind of advancements, Mike Domer, a key figure in Melita International's journey, delivered news that would set the stage for substantial growth.
A potential customer had emerged with a keen interest in their revolutionary solution—the Los Angeles Unified School District.
Recognizing the gravity of this opportunity, Domer swiftly arranged a meeting with the directors of the school district.
The Presentation in LA: The team, driven by anticipation and determination, embarked on a journey to Los Angeles to present the Sprintel 4 telephone line Telecomputer™ to the LA Unified School District directors.
The product, distinguished by its capability to call and deliver messages on multiple lines simultaneously, resonated as a unique and invaluable solution.
Meeting Critical Needs: The LA Unified School District, responsible for the education of over 5,000 students, faced a pressing need to ensure the safety of children and minimize absenteeism—a factor crucial for state funding.
The Sprintel emerged as the beacon to address these needs. Its innovative features, including 'answer detection' and the ability to deliver messages in 40 different languages, struck a chord with the audience.
A Decision with Impact: Impressed by the capabilities of the Sprintel telecommuters, the LA Unified School District made a strategic decision to purchase and install these groundbreaking systems.
The commitment extended to 135 schools, marking a monumental leap forward for Melita International in 1984.
Prelude to Growth: This landmark contract with the LA Unified School District not only validated the efficacy of Melita International's innovations but also laid the groundwork for the company's meteoric rise in the 1980s.
The challenges faced in building and installing the Sprintel telecommuters were but a prelude to the complexities and triumphs that would shape the company's trajectory.
The Midnight Oil Burns
With the ink barely dry on the $1.4 million contract with the Los Angeles Unified School District, Melita International found itself at the crossroads of exhilaration and trepidation.
The prospect of a deal of this magnitude was beyond their wildest expectations, marking a significant milestone for the nascent company.
Beyond Imagination: For Chuck Warner, the feeling of accomplishment was overwhelming, almost surreal.
A year into the official start-up, the realization of nearly $1 million in revenue was a feat he couldn't have fathomed. The journey from a humble start-up to securing a deal of such magnitude brought a mix of pride, disbelief, and the daunting realization of the challenges that lay ahead.
Overtime and Innovation: The euphoria of the signed contract quickly gave way to the realization that the real work was just beginning.
The team delved into overtime, burning the midnight oil with dedication.
Chester, a pivotal member of the team, worked tirelessly on various sections of the software.
Meanwhile, Chuck took on the monumental task of conceiving and coding a real-time call progress detection algorithm using the 8080 assembly language—a groundbreaking innovation that would later play a decisive role in deploying Melita International's call center platforms across 45 countries.
Challenges Unveiled: As the development process intensified, so did the financial challenges.
With no deep pockets to rely on, Melita International faced the daunting task of financing orders for electronic components, manufacturing PC boards, fabricating Sprintel enclosures, and covering the costs of stuffing and soldering components.
The financial burden extended to paying technicians, including the indispensable Chester.
The Brain Freeze: In the midst of this intricate dance of hardware and software development, a challenge surfaced.
Chester experienced a 'brain freeze,' an inability to recall the intricate 8080 assembly language codes crucial for the project.
Software development came to a standstill, and Chuck, recognizing the urgency, spent hours working closely with Chester. The arduous process of recollection involved going over instruction codes, from 'shift left' to 'exclusive or,' or 'jump' to 'move.'
After days of concerted effort, Chester began to restore his memory, ensuring the project stayed on track to meet committed deadlines.
Financing the Dream: The financial contributions from Domer, though crucial, proved insufficient to cover the extensive expenses.
The team needed to secure parts for a significant number of Sprintels, get them manufactured, tested, shipped, and the initial few installed—tasks that required substantial financial backing.
The challenges were formidable, but the team's resolve was unyielding.
Overcoming the Odds
As Melita International braced for the colossal task of delivering on the critical contract with the Los Angeles Unified School District, Chuck Warner and his team encountered hurdles that demanded ingenuity and collaboration.
Empowering School Officials: Chuck and Chester embarked on a strategic mission to ensure the seamless installation and self-sufficiency of Sprintels by school officials overseeing absenteeism programs.
A key innovation was the provision of an external audio cassette with an interface for software loading and updates.
This unique solution allowed non-technical school officials to manage corrections, improvements, and updates independently.
Strategic Partnerships for Components: Recognizing the need for a robust supply chain, Chuck approached Hamilton Avnet and Pioneer Electronics, suppliers of a variety of components crucial for Sprintel production.
The meeting with Mr. Wendl, Avnet's store manager, proved fruitful.
Chuck proposed a flexible 'on-demand' inventory management system, convincing Avnet that this collaboration would be mutually beneficial.
This innovative arrangement enabled Melita to finance batches of Sprintels without the burden of immediate payments, fostering financial flexibility crucial for a startup.
Innovative Component Management: A similar arrangement was forged with Pioneer Electronics, solidifying Melita's ability to focus on innovation without the constant strain of cash flow concerns.
This strategic approach not only ensured a steady supply of components but also established Melita International as a resourceful player in the competitive landscape.
Herb Jost and Streamlined Production: Halina and Chuck, through their connections, discovered Herb Jost, a seasoned German-born individual with expertise in stuffing and soldering PC board components.
In a stroke of convenience, Herb agreed to relocate his operations to Melita's facility, bringing along the necessary equipment and workforce.
Together with their neighbor Dale LaPorte, the team assembled sturdy shelving units near Herb's workstations. These shelves housed an extensive inventory of components, meticulously organized and cataloged.
This arrangement streamlined the entire production process, from parts reordering to module assembly and the final testing phase—all conveniently under the same roof.
The Triumph of Teamwork: As Melita International navigated the intricacies of delivering on a critical order, the innovative solutions and collaborative efforts of Chuck, Chester, Halina, Dale, and their strategic partners emerged as the driving force behind their success.
With obstacles turned into opportunities, Melita International not only met but exceeded expectations, setting the stage for a remarkable era of growth in the 1980s.
The relentless pursuit of innovation and the ability to overcome challenges became the hallmarks of Melita's journey.