• Ei tuloksia

Stages in the internationalization process

N/A
N/A
Info
Lataa
Protected

Academic year: 2022

Jaa "Stages in the internationalization process"

Copied!
32
0
0

Kokoteksti

(1)

Internationalization of small and medium-sized ICT companies

T-109.5410

Technology Management in the telecommunications industry Otaniemi 14.11.2006

Jyrki Härkki

(2)

Stages in the internationalization process

(3)

Jyrki Härkki © Finpro ry / 14.11.2006 / 3

Stages in the internationalization process

Internal

development

Market

development

Market sc reening cr

iteria

Segmentat ion

Screening o f market

options

Selection of m arket(s)

or m arket se

gments

Value Chain Analysis

Business m

odel

Preparin

g partner the proposal

Partner se

lection criteria

Screening partner candidates

Market en try an

d

product launch Selecting the partner

Selecting partner ca ndidates,

Preparin

g for the negotia tio

ns

Meetin g s w

ith

selected partner ca

ndidates

(4)

Partner search Partner

search

Market entry Market

entry Partner

search Partner

search

Market entry Market

entry Main processes

Focusing the business

Focusing the business

Preparing the partner

model Preparing the partner

model

Partner search Partner

search

Market entry Market

entry

(5)

Strategic Business Areas

Which markets we are on?

(6)

Segmentation

Customers A

Customers A Customers B Customers B Customers C Customers C

Need 1 Need 1

Solution X Solution X

Need 2 Need 2

Solution Y Solution Y

Need 3 Need 3

Solution Z Solution Z

Need 4 Need 4

Solution V Solution V

Customers C Customers C

Business A Business B Business C Business D

(7)

Jyrki Härkki © Finpro ry / 14.11.2006 / 7

Definition of strategic business area (SBA)

• Characteristics of a separate SBA

• own separate markets, customers

• own customer needs

• own solution that fulfill the customer needs

• own sales argumentation

• own channels

• own promotion and marketing methods and material

• own goals

• own competitors

• own mode of operations, success factors

• could operate as a separate enterprise

(8)

Strategic Business Areas

• Different SBA = different customer needs = different solutions= different decision makers = different

argumentation= different (channel) partner

• SBA1 – sales man

- mobility, development manager, sales company

• SBA2 - logistics

- M2M, data administration manager, system integrator

• SBA3 - operator

- value added service, product manager, directly by oneself

• To be profitable, the Company cannot manage too many different businesses

• To be able to focus in one or a few SBAs, the SBAs need to identified and described first

(9)

Jyrki Härkki © Finpro ry / 14.11.2006 / 9

Attractiveness of the SBAs

Maturity of the industry

Competitive environment

Market potential

Earning model

”Main reason to buy”

Competence needs

Needed sales effort

Partners

Dynamics

Own competitiveness

(10)

Example of analysis of various SBAs

Market

attractiveness

Relative company competitiveness ANNUAL MARKET SIZE

> 20 MEUR/a

10-20 MEUR/a

1-10 MEUR/a

SBA 1

SBA 2

SBA 3

(11)

Market selection

Which market(s) to select?

Which markets we should enter?

(12)

Example: ICT use in SMEs in Europe

% of SMEs A

T

DK E

S

FI G

R

SE U

K

D E

L U

NL IT NO

Using ICT 92 95 91 98 84 96 92 96 90 87 86 93

Having web access 83 86 66 91 54 90 62 82 54 62 71 73

Having a presence on web via own web site

53 62 6 58 28 67 49 65 39 31 9 47

Having a presence on web via third party web site

26 N/

A

28 N/

A

8 N/

A

11 21 13 N/

A

26 N/

A

Making e-commerce purchases

14 36 9 34 5 31 32 35 18 23 10 43

Making e-commerce sales

11 27 6 13 6 11 16 29 9 22 3 10

(13)

Jyrki Härkki © Finpro ry / 14.11.2006 / 13

Strategic conclusions

High

Small

Strong Weak

Put effort in the growth or managing the markets

Avoid / abandon

Cut down or focus to profitable business, country

or segment Market criteria

• size

• growth potential

• intensity of the competition

• uniformity of customer needs

• local preferences / tastes

• cultural / language barriers

• local content requirements

Technology criteria

• development stage

• speed of change

• local standards

Technology criteria

• technology competence

• product performance

• ability to innovate

• R&D capabilities

• quality / reliability

Company competitiveness Market criteria

• market knowledge

• market share

• company image

• sales power

• references

• ability to support

• product line

• product features

• delivery capabilities

• price

Market attractiveness

(14)

Market selection / Product X

Market potential

Competitiveness High

Low

High Low

France

Sweden Holland

Estonia Poland

Czech

Australia

Switzerland

Greece Argentina

Mexico Japan

Turkey

Romania

(15)

Jyrki Härkki © Finpro ry / 14.11.2006 / 15

Screening the market opportunity

(16)

Value Chains and Networks

The operative environment of the Company, positioning the Company on the market and related

earning possibilities

(17)

Jyrki Härkki © Finpro ry / 14.11.2006 / 17

Case 1: Ring Tones

• Sounds easy:

• Product: Ring tones

• Customer: Mobile operator

• Price: Revenue sharing

• The truth: …

(18)

Value Chain of the Ring Tones

Operator End user Bill

Portal Aggregator

Record company

Artist Manager

Content producer

Operator Content

Aggregator

(19)

Jyrki Härkki © Finpro ry / 14.11.2006 / 19

Wireless Value Chain

CONTENT ORIGINATION

Contents production

CONTENT PACKAGING

Contents provider

INFORMATION INTER- MEDIATION

Contents aggregator

SERVICE ACCESS

Data center, ISP

NETWORK ACCESS

Cellular network

END CUSTOMER MOBILE INTERNET SERVICE PLANNING, MANAGEMENT & OPERATION

Mobile Operator

MOBILE EQUIPMENT &

DEVICE Manufacture

MOBILE EQUIPMENT DISTRIBUTION

MO, Retailer

NETWORK PLATFORMS TELCO, MO

INFRASTRUCTURE EQUIPMENT AND SYSTEM SUPPLY NEC, Panasonic, Mitsubishi, Nokia, Ericsson, Qualcom, IBM,…….

(20)

Partner cooperation model

What do we expect the partner to do?

What do we do?

How does the partner earn money?

How can we make our company look appealing?

(21)

Jyrki Härkki © Finpro ry / 14.11.2006 / 21

Work and revenue creation with xxx

Sales Support by Partner Technical

Support Services by Partner

7.

Lead Generation by ccc

Application Integration

Services by Partner

5.

TYPICAL CUSTOMER

CASE

1.

2.

3.

Implementation Services by Partner

4.

Training 5.

Services by Partner

6.

Maintenance

& post sales consulting by Partner

8.

Sales of concept by ccc

(22)

Phase 1:

We Partner

Training Roles and responsibilities Execution process Material

Support Revenue Targets

Measurement process and reporting Reaction

(23)

Jyrki Härkki © Finpro ry / 14.11.2006 / 23

Partner business case

Revenue source time/days daily price/€ charge/€

Technical services

Installation 840

Configurations 840

Integrations 840

Consulting and Training

Business process cons. 1000

Training 1000

On-going services (per year)

Tech. Support deal 1 500

On-site support 840

Services total

Partners share of licences 10 %

Business value for Partner

(24)

Partner search, screening and selection

(25)

Jyrki Härkki © Finpro ry / 14.11.2006 / 25

Partner search

Identifying potential partners

Screening partners

Selecting partners

2

2 3

4

1 5

6 7

1 2

4

3 ?

Before entering to partner search process

Partner profile and

Partnering Proposition

should be done

(26)

Developing search criteria

• The analysis of the customer engagement process of the Company is a useful tool for defining the search criteria.

• It is important to identify partners

• willing to put effort in developing the joint business

• motivated of the opportunities provided by the Company

• no competing but synergic products in their product line

• good reputation among customers, suppliers, employees and trade associates

• for who the Company is also an important partner

• financially stable

• Personal chemistry (trust, commitment and bonding) is crucial

• It is important to be flexible with the criteria and to have enough alternatives.

(27)

Jyrki Härkki © Finpro ry / 14.11.2006 / 27

Typical failures

• Met accidentally

• Inexperienced

• No relevant clientele

• No resources to develop the joint business

• Minimal communication

• Hidden agenda

• the Company itself is not prepared and /or has no resources to develop and maintain the relationship

• Hugely expensive to get rid of wrong partners

¾ Do some homework in advance and avoid these unhappy circumstances

(28)

Tunnettuus

saksalainen asiakas

• En tunne teitä !

• En tunne yritystänne !

• En tunne tuotteitanne !

• En tunne asiakkaitanne !

• En tunne yrityksenne tavoitteita !

• En tunne yrityksenne mainetta !

• NIIN - mitä halusittekaan myydä minulle ?

(29)

Jyrki Härkki © Finpro ry / 14.11.2006 / 29

Partner meeting

Concerns of an American partner

• Are you a professional ?

• Is your product reliable ?

• What kind of marketing and sales material you have ?

• Does your product function with our product ?

• Do you bring added value to our customer ?

• Does our image suffer if we cooperate with you ?

• You represent a technology company – can you show us that customers are willing to pay for

your product ?

(30)

Beginning of a beautiful PARTNERSHIP

• Participate in the lead generation for your partner and help it to close its first deals

• Make the sales staff of your partner committed: meet as many sales person as possible

• Help your partner to find its position among high priority customers

• Make your partner committed in the level of planning and implementation

• Train the staff of your partner quickly and simply as possible (sales, support, management)

• Participate in the first pilots and deliveries

• If possible, give your products / services to the staff of your partner for usage

(31)

Jyrki Härkki © Finpro ry / 14.11.2006 / 31

Summary

• Think carefully what you want your partner to do

• Think carefully how you can support your partner and how your partner can benefit from you

• Think the criteria for choosing a partner and stick to them

• Select a partner

• Provide support, especially in the beginning

• Be patient

• Re-evaluate if you the partner or you fail

• Do not make oral agreements but written ones

(32)

End of the session

Viittaukset

LIITTYVÄT TIEDOSTOT

Hä- tähinaukseen kykenevien alusten ja niiden sijoituspaikkojen selvittämi- seksi tulee keskustella myös Itäme- ren ympärysvaltioiden merenkulku- viranomaisten kanssa.. ■

Vuonna 1996 oli ONTIKAan kirjautunut Jyväskylässä sekä Jyväskylän maalaiskunnassa yhteensä 40 rakennuspaloa, joihin oli osallistunut 151 palo- ja pelastustoimen operatii-

Helppokäyttöisyys on laitteen ominai- suus. Mikään todellinen ominaisuus ei synny tuotteeseen itsestään, vaan se pitää suunnitella ja testata. Käytännön projektityössä

Työn merkityksellisyyden rakentamista ohjaa moraalinen kehys; se auttaa ihmistä valitsemaan asioita, joihin hän sitoutuu. Yksilön moraaliseen kehyk- seen voi kytkeytyä

Since both the beams have the same stiffness values, the deflection of HSS beam at room temperature is twice as that of mild steel beam (Figure 11).. With the rise of steel

Istekki Oy:n lää- kintätekniikka vastaa laitteiden elinkaaren aikaisista huolto- ja kunnossapitopalveluista ja niiden dokumentoinnista sekä asiakkaan palvelupyynnöistä..

The problem is that the popu- lar mandate to continue the great power politics will seriously limit Russia’s foreign policy choices after the elections. This implies that the

Te transition can be defined as the shift by the energy sector away from fossil fuel-based systems of energy production and consumption to fossil-free sources, such as wind,