Explore and Exploit Developing an International Business

Transcription

1 Explore and Exploit Developing an International Business Experiences with Willett International Ltd From zero to 100millions and Business in 100 Countries and some reflections on opportunities TODAY Professor Alan Barrell Entrepreneur in Residence Centre for Entrepreneurial Learning Judge Business School Cambridge, Xiamen University Fujian, China and Laurea University of Applied Sciences Helsinki. Chairman NHS Innovation Council East England

2 A Preview My International life today and the context of the World today and tomorrow opportunities to Explore and Exploit Experiences from a past life Willett International from zero to 100 millions and business in 100 countries Lessons learned and some thoughts for further discussion Promoting beliefs in Open Innovation A A World Without Borders Education Without Borders and Business Without Borders

3 Some of the Hats I wear (or have worn) 12 years in Industrial electronics DOMINO plc BacTest Ltd 5 Years in Venture Capital Cambridge Gateway Fund And ALWAYS in and around the NHS and industry serving it. Cambridge Healthcare Ltd

4 Global Dynamics where is a lot of the positive change happening? Two fifths of the Worlds people live in the two fastest growing large economies China and India Education, Wealth Creation and New Knowledge are at the heart of Economic Planning in Asia Growth in Asia is far ahead of Europe. Dynamic Growth in Manufacturing Base CASH is in place in the Asian economies as well as brainpower- China has US$ 2 Trillions of reserves Labour and Material cost advantages Asia and The Americas power and influence.

5 Dancing with The Dragon.more to China than Economics

6 Lets put MODERN CHINA and HONG KONG into our picture and context.some of China s s Achievements Entrepreneurs have been involved Compound growth of GDP at 9% since 1995, 2 nd largest economy in the world One of top 10 trading nations The most popular FDI destination The largest mobile phone market The second largest PC market Suplying 70% of the Worlds Solar Energy products The third largest advertising market An opportunity market for Western Goods in % of all the World s growth occurred in China But uses 50% of the Worlds coal Cash Reserves US$ 2.75 Trillions

7

8

9 China s s Provinces Prediction for 2020 Provinces GDPs will equal many Nations

10 Changes in Industrial Structure - UK % of Total Employment - UK Government Foresight Report Manufacturing All Services

11 Changes in Industrial Structure - Europe % of Total Employment Manufacturing All Services

12 Manufacturing has Migrated!

13 The West s Competition?? Courtesy of Asia Pacific Foundation

14 Today s peacock is tomorrow s feather duster

15 Crisis?...or Opportunity? 危机 Take your pick.the world will be what we make it.opportunities to grow international businesses.

16 A World of OPPORTUNITY Education Without Borders Business Without Borders Can be A WORLD WITHOUT BORDERS

17 SO - Please.Let Let s s IMAGINE and Think Positively.

18 Einstein on IMAGINATION. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world Albert Einstein

19 Taking the thoughts a step further.entrepreneurs can make a BIG DIFFERENCE You look at things and ask - why? but I dream of things that never were and ask - why not? George Bernard Shaw

20 Philips & HiTech Campus Eindhoven The Age of Open Innovation

21 Brain Circulation for joined up thinking and lives Brain Circulation Across Borders and Functions Open Innovation Thinking

22 Here is Albert again..more words of wisdom Insanity: doing the same thing over and over again and expecting different results. Albert Einstein What Innovation is NOT and unlikely to help business growth. 7

23 Going International The Willett International Ltd Experience Why? go international? When? How? The questions we asked ourselves. The story as it unfolded.

24 Going International From start up to 100 millions Case Study Thought processes Timing Sequences Planning Marketing Financing People Learning by Doing and mistakes Finding the best advisors and partners No Rocket Science Perspiration and Persistence Trust and Respect for People including Partners

25 Willett s Business Coding and Labelling

26 Willett s Business Coding and Labelling

27 Life Cycle - equipment & consumables Industrial Ink Jet Printing Equipment Consumables SALES TIME

28 Willett International Ltd Late ( LAST ) to market No protectable I.P. No technology advantage the worst products Always strapped for cash private company BUT always independent Highly entrepreneurial profits re-invested for growth Struggling not quite a basket case"

29 Willett International Ltd Years Old Sales 100m + Compound Growth 30% Operating in 100 countries 27 Subsidiaries 80 Distributor Partners Manufacturing in: - UK - North America - South America - India - China

30

31 Willett International Ltd - Things that happened Coding and Labelling and International Growth and Success achieved by Ordinary People Dreaming of things that never were?

32 Product Life Cycle UK trends - Willett Innovation Growth Maturity Saturation and decline Sales Profits Time

33 New and old products Extending Life Cycle by Export and Internationalisation Extension Poor UK market position and size of UK market Innovation Growth Maturity Saturation and decline Sales Impact of entry to new country markets Profits Time 0 New market entry

34 Willett International Ltd A new Strategy Positioning, Differentiation and Branding The World s Coding Company Outstanding People Not another Ink Jet Company Broader product Range Outstanding Marketing The Best technical service and support Focus on Training Staff and Distributors Get to markets others haven t penetrated So what about the HOW?...

35 Overseas Entry - scale of options we considered the how to Full Service Subsidiaries Investment and Resources Branch Offices Joint Ventures Alliances/Partnerships Full Service Distributors VARs Dealers Agents Manf Reps Do Nothing Degree of Control Questions we asked:- How to assess risk? Where is the greatest risk on the scale? What about the margin?

36 Going International Key Words beyond Agreements TTR TRUST!! TRANSPARENCY RELATIONSHIPS CULTURAL UNDERSTANDING not lip service

37 Manpower/People Things we thought about. World think - company-wide Understanding Custom and Practice and Culture Implications of global competitiveness Organising across time zones Logistics and distribution Training, trainers, coaches and mentors Sources of appropriate people Subsidiaries and Distributor balance.

38 People Willett International Ltd Growth in personnel UK Based International Total Year

39 Finding partners - the search Sources of information and support UKTI Overseas Consulates Chambers of Commerce Business Link ( then! ) Libraries Commercial operations Overseas agencies Institute of Export But the profile was key!

40 Finding Partners The profile for Willett Ownership and objectives Size Financial soundness Market/channels presence and knowledge Technical/engineering fit and capability Sales and marketing organisation and style Organisation and management Commitment to investment Customer base Potential for our business to become very important Willingness for seamless interaction and relationship English language capability

41 Key characteristics of partners beyond the Willett Distributor Profile what we looked for Commitment of principals Cultural compatibility Commercially sound year record Technical excellence Market knowledge National sales and customer support network Unquoted and independent Commitment to Willett Potential for Willett to become at least 60% of business Commitment to staff and customer training - including residential visits to UK or other training base English language capability

42 Getting the best from partnerships People Process Technology Distributors should work as our people Best practices for marketing, sales and service Measurement and review follow planning

43 Finding partners - Willett s s approach Profile Desk research Agency help Outside help C an d i d a t e s Reduce to 3 per country? One year trial Reciprocal visits - selected candidates Visits with structured information gathering Usually took 2 years to bring a new distributor to profitable contribution. Investment worthwhile.

44 Partnerships making them work big effort needed. Involvement of relevant disciplines Top-Level commitment Openness and trust Flexibility Clear joint objectives Working Together Long-term Relationship Total Quality Management Proactive not Reactive

45 Distributor selection management & Best Practices Key success factors - critical issues Agreements, terms - two way obligations & commitments Managing the business and the relationship Building enduring partnerships

46 Distributor selection management & Best Practices Key success factors - critical issues Suitability & selection process Multi-product line will require multiple distributor channels Understanding country differences and World think - Culture - Language - Geography & logistics - Regulatory - Custom & practice - Distributors motivation

47 Establishing a joint understanding of the market opportunity Development of a business plan and a sales forecast Programme of visits, follow-up training and review meetings Joint promotional programme

48 Training distributors and staff Market and industry applications training Technical and hands-on training Sales training Our company and the way we do things Company products: (i) features and benefits (ii) sales arguments Competitors and competitive products Selling against competition

49 The inclusive approach at Willett Developing all key relationships - customers; employees; suppliers; shareholders; community; distributors - License to operate worldwide - World think - concept and practice - Cultural inclusiveness For Our Own Good!!

50 Critical principle Willett top management Distributor principals Delegate the detail Don t delegate the business relationship

51 Willett Group Evolution of worldwide distributor business aspects of results 12m Millions NEW DEAL partnership approach started 1m Time

52

53 Willett Sales in Millions some problems even when growing $ 1989/ / / / / / / /97 So what went wrong in that last year?

54 External Challenges Currency fluctuation big problem in those days. Where are your sales and costs where do you consolidate and report results? Willett had 94% of business outside UK Recent fluctuations Deutchmark Franc Yen Dollar March 1996 Sept 1997

55 Willett Group late 1990s when we sold it 94% of business is outside UK Unquoted Growth has been organic Entrepreneurial - but growth with financial control Re-thinking and re-structuring for future growth Aiming at 250 million in 3 Years good for the buyer!

56 A blend of skills and experience running an international company what we aimed at. Reward & recognition systems Measures & accountability Inspired leadership Clear direction Team spirit & team building/team work Knowledge & learning facilitation Technology & product development & management Firm financial management Vision and Purpose International marketing & business development Good management practices Common culture & shared values Clear objectives

57 In Pursuit of Excellence! Final Thoughts Excellence can be achieved, if we: Care more than others think is wise, Risk more than others think is safe, Dream more than others think is practical, Expect more than others think is possible. Deborah Johnson-Ross A World Without Borders a good mindset for a growing Business

58 Thank You for Listening