Post on 26-Mar-2015
Georgia State UniversityEMBA
GLOBAL UNDERSTANDING-
GLOBAL REACH
BENEFITS, PITFALLS & OPPORTUNITIESPresented by
Jerry M. StriplinApril 2006
www. Global-Business-Group.comJerry@Global-Business-Group.com
1 404 275 9108
2
Topics for discussion
• My background • Global Business Group• Some of my recent work• Lessons learned• What makes your future different?
Before we begin….•? What would you like to discuss?
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Our Business
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Business Growth
Through Applied
Business Intelligence and Leadership
Creating sustainable business growth through... Applied business intelligence, Operational and management leadership; Supported by an…
Action-based strategy and Improved business processes;
Creating improved profitability, competitiveness and the acceleration of market share capture.
Our Business
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Recent Work
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CHINA A full Partnership and Alliance analysis for a Fortune 500
software firm.Today, for US corporations considering business in China, the questions are no longer "why" and "when." Today, the only question remaining is "how."
CONSIDER THESE ECONOMIC REALITIES: Annual GDP growth of nearly 10% for over twenty years A potential consumer market of 1.3 billion Full membership in the World Trade Organization (WTO)
Projected to be world's second largest economy by 2030
CONSIDER THESE ECONOMIC REALITIES: Annual GDP growth of nearly 10% for over twenty years A potential consumer market of 1.3 billion Full membership in the World Trade Organization (WTO)
Projected to be world's second largest economy by 2030
However, despite these accolades and the positive market potential they describe, the Chinese marketplace is exceedingly complex, with an intricate array of cultural, political and social complexities. Being successful in this complicated business environment requires market intelligence of the highest value from a trusted experienced partner.
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CHINA THE SCOPE OF THE OPPORTUNITY
The economy has been growing dramatically for 20 years: GDP expanded at an average 9.7% annually from 1997 to 2000Retail sales of consumer goods have climbed steadily to over $405 billion
in 2003. China now has the largest mobile phone market in the world, and its PC
market is about to overtake that of Japan. China attracted $400 billion in foreign direct investment in the past
decade. The largest province, Sichuan, contains 110 million people, about as
many as Japan.The provinces of Guangdong, Hubei, Anhui, Hunan, Hebei, Jaingsu,
Shandong Henan each contain 60 million people (roughly the same and population as Mexico, France and Egypt.)
It is not one market. While the “common language” of China is mandarin, there are 8 main dialects, which in turn break down into many more dialects and cultural differences. There are also a further 55 minorities, each speaking their own language.
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CHINA REASONS TO BE CAUTIOUS
China is still in transition from a centrally-planned to a market-driven economy. The banking structure is fragile; the rule of law is weak; the distribution infrastructure is underdeveloped; and corruption continues to be a widespread problem.
An estimated 900 million Chinese live in the countryside, mired in debt and hampered by inefficient farming practices.
The average disposable income of urban residents in 2000 was a mere US$708 per annum (for rural residents it was US$206 per annum).
The emerging affluent middle class is mainly located in a relatively small number of major cities on the east coast.
Social unrest is growing as the gap between the rich and the poor continues to widen dramatically.
Personal contacts are very important in China, and knowing the 'right' person can be a distinct competitive advantage.
The currency is not convertible, and it is difficult to repatriate profits.
An estimated 900 million Chinese live in the countryside, mired in debt and hampered by inefficient farming practices.
The average disposable income of urban residents in 2000 was a mere US$708 per annum (for rural residents it was US$206 per annum).
The emerging affluent middle class is mainly located in a relatively small number of major cities on the east coast.
Social unrest is growing as the gap between the rich and the poor continues to widen dramatically.
Personal contacts are very important in China, and knowing the 'right' person can be a distinct competitive advantage.
The currency is not convertible, and it is difficult to repatriate profits.
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Romania US corporation re-evaluating India outsourcing, the questions were no longer "why" and "when." The only question remaining is “where and how."
ECONOMIC AND CULTURAL REALITIES:
NEAR SHORE AND IN-CULTUREVS
OFF SHORE AND OUT-OF--CULTURE
ECONOMIC AND CULTURAL REALITIES:
NEAR SHORE AND IN-CULTUREVS
OFF SHORE AND OUT-OF--CULTURE
Despite the accolades and the positive marketing of India and China and the potential they describe, their outsourcing marketplace is losing its competitive edge due to:
An intricate array of cultural, political and social complexities.
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Romania FDI – Foreign Direct Investment
Long-term Investment
Phase I - Romanian Focused - Development for “Core and Mission Critical”
applications s
Phase II- Serving C&EE
Phase III – Global Development
Employment of up to 200 employees - Romanians
Phase I - 50 employees – Immediately
Training in the USA
Significant growth impact on Adjacent Industries
Green-Field Business opportunity
Start as soon as possible
Lease-Build, Hire or Acquisition
Software Development, Delivery, Sales and Professional Services
Sustained Phased entrance
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Romanian Selection Criteria Location
Cost of Business, space availability Phase I thru III.
Access to Expertise:
Technical and management resources
Universities … Pipeline of qualified graduates and Internships
Adjacent Technical Industries
Local Government involvement and pro-active
Taxes
Incentives
Support and ease in establishing a business … Start-up and Ongoing
Infrastructure
Telecom
Transportation & physical access
Cost-of-Employment
Salary
Benefits
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Romania
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Indonesia’sCompetitiveness Program
Industry Value Chain – IVC…Vertical and horizontal supply chains components, external drivers such as government / regulatory and internal activities, capabilities and enablers
Industry Value Chain – IVC…Vertical and horizontal supply chains components, external drivers such as government / regulatory and internal activities, capabilities and enablers
Alliance Clusters – All business/ industry / social elements that have a direct impact or contribution to the Value-Chain
Alliance Clusters – All business/ industry / social elements that have a direct impact or contribution to the Value-Chain
Initially identified 12 Industries that represent over US$15.2 billion or 21% of total Indonesian exports.
Initially identified 12 Industries that represent over US$15.2 billion or 21% of total Indonesian exports.
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Indonesian performance in the world market, 1999-2004
Electric Machinery , $6,572,508,497
Apparel Articles And Accessories, Not Knit Etc.,
$2,814,054,297
Natural Rubber, $2,181,251,502
Plastics And Articles , $1,323,264,343
Footwear, $1,320,478,684
Vehicles, Except Railway Or Tramway, And Parts Etc,
$935,136,938
Seats Of Cane, Osier, Bamboo , $205,668,889
Furniture Of Cane, Bamboo , $132,799,223
Fish Fillets, Frozen, $91,638,631
Seaweeds & Other Algae Frsh Or Dried , $25,296,399
Fish Meat Exc Fish Steaks & Fillets, Frozen, $13,644,826
Fish, Frozen (No Fish Fillets Or Other Fish Meat),
$12,990,314
Cuttle Fish And Squid, Frozen, $10,387,829
-11.00%
-6.00%
-1.00%
4.00%
9.00%
14.00%
-7.00% -5.00% -3.00% -1.00% 1.00% 3.00% 5.00% 7.00% 9.00%
Growth rate of relative market size
Gro
wth
rat
e o
f In
do
nes
ia's
mar
ket
shar
e
Apparel Articles And Accessories, Knit Or Crochet, $1,475,628,312 (-37.64%, 50.17%)
Outlier
Indonesia
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Lessons learned
• Know what you don’t know …Seek out, validate and use trusted resources.
• Culture is always an issue and an advantage.• Leadership will take the path of least
resistance.• Global expansion is a personal business.
The needs of the individual over the many
• The test… Can you reconnectAnd be welcomed
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ATTRIBUTES ATTRIBUTESExpansion or entrance into THE GLOBAL market is one of the most challenging endeavors a company can undertake.It requires: On the ground experience, Ongoing market research, brand awareness, tracking, customer satisfaction and
competitive analysis, An understanding of specific HR requirements, such as the ability to terminate for performance, long term social and health system support, and staff retention, A unique pricing strategy, Appropriate financing, terms and payment instruments, The availability of qualified personnel, technology, laws and support systems, An understanding of the market’s attitude toward service and quality, Requirements for “Time-to-Market” Implementing different security requirements for systems, software, physical and technical, Unique sales plans and approach strategies, Internationalization of the products and services, Specific contracts with “different” country based legal and financial protection, Personal contacts, Partnering and alliance expertise, An understanding of the business and political environment, A knowledge of the appropriate laws and regulations, Unique support systems for operations, sales, proposal (local language) creation,
training and delivery, Financial investment (physical presence, training, assessment of market and personnel, etc), A knowledge of the resources available to US companies, Staying power and Most importantly, an “In-Country Experience & Presence”.
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THE MISSION of every profitable business…Capture market share, obtain significant revenues and create sustainable profits in the shortest time possible. …IT IS A JOURNEYIt is possible with (1) a clear mission, (2) “current & accurate” business/market intelligence (3) a practical tactical & strategic plan and (4) leadership.
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UNIQUE VALUE PROPOSITION
IDEAL CLIENT
RESOURCES ANDCONTACTS
CURRENTSITUATIONANALYSIS
ATTRIBUTES
CHECK POINT
CHECK POINT
CHECK POINT
CHECK POINT
CHECK POINT
CHECK POINT
CHECK POINT
BARRIERREMOVAL
COUNTY LIFE-CYCLEMODEL
MARKETAPPROACH
REGIONCOUNTRYINDUSTRY
APPROACHCURRENT SITUATIONANALYSIS
BARRIERREMOVAL
TARGEYINDUSTRYSTRUCTURE &MATURITY5
CURRENTSITUATIONANALYSIS
SALESREADINESS
ASSESSMENT
PRODUCT & SVR.READINESS
ASSESSMENT
KEY MARKETID & FOCUS
IN-COUNTRYCONTACTS
TARGETCOMPANY
TARGETINDIVIDUALS
CYCLES-OF-LEARNINGAPPLIED
AREAS OF FOCUS
Exe. TeamSales Mgmt
Product MgmtDeliveryProgram MgmtFinanceLegalSupportMar/ComR and D Country ReqmtsEnhancements
HRSkillsRetention
OSSDesign, Billing, Service,Reporting
METHOD1-on-1 InterviewsDocumentsResearch
DELIVERABLESRiskIssues
Burning platforms
Mission critical issues
Base programplan
AREAS OF FOCUS
Experience &Expertise
Needs AssessmentMarket KnowledgeCompetitionPost win-loss reviews“Hearts and Minds”
METHOD1-on-1 Interview In person or telephone
Current Situation Analysis
DELIVERABLESIssuesReadiness Plan to improve
AREAS OF FOCUS
Market IntelligenceRegional AdaptabilityInternationalizationCountry CertificationCompetition AnalysisDocumentation, local language
Country specificcontractual rqmts
Source Code issuesSecurityLogisticsLocal languageField modificationsLocal in-country
supportabilityEnhancementsTraining
METHOD1-on1 interviewsResearch
DELIVERABLESRisk AssessmentIssues Identified
AREAS OF FOCUS
Market Intelligence viaPersonal ContactsChambers of Comm.Etc.Existing PresenceAttributes
Ability to payCompetitionPenetrationLaws and regulationsFunding to buyPeople available to
support and usePartshps and AllianceTechnical, BusinessPolitical, Credibility
Mar/ComAdvertisingSocial impactSupport and Del. PlanLanguageTraining
AREAS OF FOCUS
Political OrgFCSEmbassyChamberso Local Partners
BackgroundFinancialCapabilitiesResources
METHODResearch and
ContactsPrioritize Countries
A,B,C
DELIVERABLESID Companies
to meetArrange meetingsAssist in planning
the PresentationDevelop an “End-Game
Strategy”
METHODResearch and
ContactsPriorities Countries
A,B,C
DELIVERABLESCountry Prioritization
A – Fast TrackB – Short TermC – Long Term
Country Specific Contacts
AREAS OF FOCUS
Market IntelContact Sources
METHODIntel gathered from
previous elementsResearchFormal Market
research
DELIVERABLESCompany PrioritizationA Fast PathB Short termC Long term
Country Specificcontacts
AREAS OF FOCUS
Identify specificIndividuals within “A’ Companies
METHODIntel Gained Form
Previous StepsUse contactsIn-country Agencies,Personal Contacts
DELIVERABLESID specific individualsAssist to CreatePresentations
Arrange meetingsCreate “ End-Game”
Strategy”Join team as req’d
AREAS OF FOCUS
Repeat for “B” and “C” countries
ENTRANCE PLANENTRANCE PLANConfidential.
May not be used withoutwritten permission
from J. Striplin
ENTRANCE PLAN
CORECOMPETENCIESOF BUSINESS
CURRENTCAPABILITIES
ANALYSISEMPLOYEES COMPETITION PARTNERSCUSTOMERS BUYERS SUPPLIERS
“EYE-TO-THE-WORLD”IDEA-TO-MARKET
CONTINUUMBUSINESSSUCCESS
MISSION VALUE STATEMENTPRODUCT & SERVICESBRAND & REPUTATIONMARKET COMPETIONCUSTOMERSEMPLOYEE & WORK PLACEOTHER STAKE-HOLDERSSPECIAL ISSUES
IDEACONCEPTDESIGNMARKETINGSOLUTIONIMPLEMENATIONOPERATIONSVALIDATIONENHANCEMENTSCYCLES-OF-LEARNING
Critical Success Factors
STRUCTURESTRATEGYTACTICALMEASUREMENTSTRAININGIMPROVEMENTS
ORG OPERATIONAL SUPPORT SYSTEMS
TELECOM IT
WEB SITE
“E” CRM BSS SECURITY
SALES DELIVERY MAR/COM
FINANCE MANAGEMENT
BUSINESS AND PROCESS IMPROVEMENTS
INDUSTRY LEADERSHIP
Property of The Striplin GroupMay not be used without written permission
STEP # 2THE COUNTRY LIFE-CYCLE MODEL
STABLE
Infrastructure
Legal Systems
Medical
Security
Financial
Education
Wages
Customs
Government
Privatization
Environment
Insurance
Social Development
Fund Management
Housing & Construction
Tax
Trade
EVOLVING
DEVELOPING
EVOLVING
GROWTHKEY SECTORS.. The “Primary Parent Industry”
that will use or support the proposedproducts and services and howthey fit within the
“Value-Chain”
For Example: Automotive Mfg and Sales.The goal is to determine if the atmosphere is favorable and if the country is positioned to accommodate and embrace the manufacturing and selling of automobiles.
Perhaps the most attractive country would have reached a STABLE age of maturity.
LEGALCONTRACTUALSTRUCTURE
COUNTRYREADINESS
IS THE BUSINESSREADY & CAPABLE
BARRIERREMOVAL
ORG.ALIGNMT
ACTIVATESTRATEGIC &TACTICALPLAN
PARTNERSHIPALLIANCES ACTIVATE
CYCLES-of-LEARNING
RoIVALIDATION
4
CONSULTATIVE BASED SOLUTIONS
UNIQUE SALES PROPOSITION (USP)
CONSULTATIVE BASED SOLUTIONS
UNIQUE SALES PROPOSITION (USP)
KEY “CUSTOMER AWARENESS POINTS”:THIS IS A KNOWLEDGE BUSINESS.COMPETITIVE DIFFERENTIATION IS INFLUNCED BY THE LEVEL OF CLIENT KNOWLEDGE &
EXPERIENCE.ESTABLISHED CLIENTS HAVE LITTLE OF NO “TRUE” KNOWLEGED OF THE COMPETITION – SO
A SWITCH TO THE COMPETITION IS DUE TO STRONG DISSATISFACTION WITH SERVICE OR PERFORMANCE.
CUSTOMER CENTRIC
USPLONG TERM &SUCCESSFUL BUSINESS
ISO STANDARDS
COMPANY OWNEDFACILITIES, NETWORKS,
CUSTOMER CENTERTRAINING AND SOFTWARE
OUTSOURCING ISA CORE BUSINESS
NO UNIONS
GLOBAL REACH
IN-COUNTRY PRESENCE
PEOPLE STAYLOW TURNOVER
EMBEDDED EXPERTISES
SOLUTIONS BASED ALTERNATIVES
CONSULTAIVE SELLING
OPEN SYSTEMS-IDEAS-ACTIONS
Confidential. May not be used without
written permission from J. Striplin
MAR/COM5
CURRENTSITUATIONANALYSIS
SALESREADINESS
ASSESSMENT
PRODUCT & SVR.READINESS
ASSESSMENT
KEY MARKETID & FOCUS
IN-COUNTRYCONTACTS
TARGETCOMPANY
TARGETINDIVIDUALS
CYCLES-OF-LEARNING
APPLIED
AREAS OF FOCUS
Exe. TeamSales Mgmt
Product MgmtDeliveryProgram MgmtFinanceLegalSupportMar/ComR and D
Country ReqmtsEnhancements
HRSkillsRetention
OSSDesign, Billing, Service,Reporting
METHOD1-on-1 InterviewsDocumentsResearch
DELIVERABLESRiskIssues
Burning platforms
Mission critical issues
Base programplan
AREAS OF FOCUS
Experience &Expertise
Needs AssessmentMarket KnowledgeCompetitionPost win-loss reviews“Hearts and Minds”
METHOD1-on-1 Interview
In person or telephone
Current Situation Analysis
DELIVERABLESIssuesReadiness Plan to improve
AREAS OF FOCUS
Market IntelligenceRegional AdaptabilityInternationalizationCountry CertificationCompetition AnalysisDocumentation,
local languageCountry specific
contractual rqmtsSource Code issuesSecurityLogisticsLocal languageField modificationsLocal in-country
supportabilityEnhancementsTraining
METHOD1-on1 interviewsResearch
DELIVERABLESRisk AssessmentIssues Identified
AREAS OF FOCUS
Market Intelligence viaPersonal ContactsChambers of Comm.Etc.Existing PresenceAttributes
Ability to payCompetitionPenetrationLaws and regulationsFunding to buyPeople available to
support and usePartshps and AllianceTechnical, BusinessPolitical, Credibility
Mar/ComAdvertisingSocial impactSupport and Del. PlanLanguageTraining
AREAS OF FOCUS
Political OrgFCSEmbassyChamberso Local Partners
BackgroundFinancialCapabilitiesResources
METHODResearch and
ContactsPrioritize Countries
A,B,C
DELIVERABLESID Companies
to meetArrange meetingsAssist in planning
the PresentationDevelop an “End-Game
Strategy”
METHODResearch and
ContactsPriorities Countries
A,B,C
DELIVERABLESCountry Prioritization
A – Fast TrackB – Short TermC – Long Term
Country Specific Contacts
AREAS OF FOCUS
Market IntelContact Sources
METHODIntel gathered from
previous elementsResearchFormal Market
research
DELIVERABLESCompany Prioritization
A Fast PathB Short termC Long term
Country Specificcontacts
AREAS OF FOCUS
Identify specificIndividuals within “A’ Companies
METHODIntel Gained Form
Previous StepsUse contactsIn-country Agencies,Personal Contacts
DELIVERABLESID specific individualsAssist to Create
PresentationsArrange meetingsCreate “ End-Game”
Strategy”Join team as req’d
AREAS OF FOCUS
Repeat for “B” and “C” countries
ENTRANCE PLAN…FULL PROGRAMENTRANCE PLAN…FULL PROGRAMConfidential.
May not be used withoutwritten permission
from J. Striplin
SALESREADINESS
ROADMAP
© Copyright 2003Property of J. Striplin
Use with permission only
MARKET SHARE CAPTURE
REVENUES AND
SUSTAINED PROFIT
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21
Your Future… Applied Business Intelligence
Business Intelligence is the result of the assessment, transformation, blending and interpretation of:
Firsthand experience, personal knowledge, market data- environment, supplier changes, client requirements, gaps, customer requirements, investors, current - future - forthcoming trends employee expectations, and organizational readiness.
Applied Business Intelligence is the application of “Over-the-Horizon” Business Intelligence
Allowing a business to create and apply “Cycles-of-Learning” that determine-direct the health, growth, transition and “Future State” of the business.…. Leadership
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Thank you for this honor.Your questions?
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