A harbinger, Peter Karmanos Jr. led the way in developing IT systems for businesses, hospitals, and other large organizations long before personal computers were available.
In 1973, Karmanos and two partners launched Compuware Corp., a software company at the forefront of the emerging mainframe computer sector. Today, those same mainframe systems are used as servers.
Over time, the Detroit enterprise saved its clients billions of dollars by automating and updating bulk data processing for an array of applications including statistical analysis and transactional procedures. It also transitioned cli.ents through Y2K as the world, and computers, greeted the 21st century.
Following a 40-year career leading Compuware, in 2014 the lifelong entrepreneur, along with six partners, launched Mad Dog Technology in downtown Birmingham.
With a portfolio that includes digital banking and professional services, the venture capital firm may have a unicorn on its hands with Resolute Building Intelligence, an early player in providing energy solutions at a time when electrical demand and costs are rising precipitously.
Last year, Resolute, which got its start in 2016 offering now-patented building performance soft.ware to help companies lower their overall energy costs, doubled its revenue. Like Compuware in the 1970s, Resolute is at the leading edge of tracking and managing data, in this case energy and related equip.ment, to generate sizeable operational efficiencies.
“Large businesses, hospitals, and universities often have different energy systems and equipment, and by tracking and synergizing that specific data, we can generate savings of 30 percent or more right off the bat,” Karmanos says. “Those savings can immediately become profits or be used to make other investments.”
Working with a team of 35 specialists led by CEO Chris Hallendy and Daniel Mather, who oversees energy engineering and integration services, Resolute works with McLaren Health Care, REDICO, Domino’s Farms Office Park, Detroit Pistons Performance Center, Chicago Public Schools, and more to drive millions of dollars in savings.
For example, Resolute assisted McLaren in track.ing its energy use and recommending solutions like a new cooling tower system and piping. “With the latest equipment, cooling towers reduce energy costs and usage, and those are savings generated on a daily basis,” Hallendy says.
Given good timing portends opportunity, con.sider how Resolute is on the ground floor of three distinct demand trends. AI, which the company utilizes, requires accelerated computing power delivered by the latest semiconductors — which more and more, are being produced domestically.
The creation of cryptocurrencies, which some companies and individuals use to hedge against government overspending — the U.S. deficit will soon reach $35 trillion — also requires an immense amount of electricity.
And there’s the now slowing, yet EPA-mandated, production of electric vehicles and batteries being pushed into the marketplace as a centerpiece of a green energy future that has turned out to be pure fantasy. A steady stream of regulations that started with the Inflation Reduction Act (aka the Inflation Expansion Act), will require electrical utility upgrades that could reach as high as $1 trillion by 2032.
In addition, to ensure all the new electricity reaches end users requires the replacement of mil.lions of distribution transformers, a time-consuming and expensive proposition that ideally would see more production moved here from China.
“Resolute is our largest platform at Mad Dog, and you need specific data to make the right energy deci.sions,” Karmanos says. “Finding and managing that data is our secret sauce.”
R.J. King
rjking@dbusiness.com
