Customer and Revenue Acquisition in Asia-Pacific Jeremy Geiger [email_address] / [email_address] Twitter: @RTMAsia / @AsiaParagon www.LinkedIn.com/in/ JeremyG www.RTMAsia.com

Agenda Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support Go-To-Market Investment & Requirements AP Revenue in relation to global revenue

Background

Asia-Pacific expansion. When?

Country-Specific Considerations

Business Development

Product, Localization & Support

Go-To-Market Investment & Requirements

AP Revenue in relation to global revenue

Who Am I? Living in Asia-Pacific for 15 years Tokyo, Seoul, HongKong, Singapore, Bangkok Business expansion in Japan, Korea, China, HongKong, Singapore, Thailand, Philippines, Malaysia, Australia, India, NZ Started-up 15 new country branch operations Enterprise software for supply chain, ERP, BI, CRM, BPM, 3D visualization $65M revenue, 30+ partnerships, 50-150% annual growth EMBA, Kellogg School Mgmt program @Sasin in Asia Currently work with US software, SaaS, internet & consumer electronics companies as part of RTM Asia

Living in Asia-Pacific for 15 years

Tokyo, Seoul, HongKong, Singapore, Bangkok

Business expansion in Japan, Korea, China, HongKong, Singapore, Thailand, Philippines, Malaysia, Australia, India, NZ

Started-up 15 new country branch operations

Enterprise software for supply chain, ERP, BI, CRM, BPM, 3D visualization

$65M revenue, 30+ partnerships, 50-150% annual growth

EMBA, Kellogg School Mgmt program @Sasin in Asia

Currently work with US software, SaaS, internet & consumer electronics companies as part of RTM Asia

Who is RTM Asia? 80 successful local Asia-Pacific Business Executives Working with technology start-ups: Consumer/Enterprise software, internet and hardware Who have the challenge of expanding internationally RTM Asia creates new market opportunities in AP Market analysis and go-to-market plan for key Asian markets Accelerate growth & profitability Create new business models in Asia to drive incremental upside Minimizing effort, investment & learning curve from HQ

80 successful local Asia-Pacific Business Executives

Working with technology start-ups:

Consumer/Enterprise software, internet and hardware

Who have the challenge of expanding internationally

RTM Asia creates new market opportunities in AP

Market analysis and go-to-market plan for key Asian markets

Accelerate growth & profitability

Create new business models in Asia to drive incremental upside

Minimizing effort, investment & learning curve from HQ

RTM Asia Client List

Agenda Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support Go-To-Market Investment & Requirements AP Revenue in relation to global revenue

Background

Asia-Pacific expansion. When?

Country-Specific Considerations

Business Development

Product, Localization & Support

Go-To-Market Investment & Requirements

AP Revenue in relation to global revenue

WHEN to consider Asia-Pacific expansion? Customer is pulling you Enterprise: Customer is asking you to support product in AP Consumer: Significant swell of new users in AP country Strong growth, publicity and customer references in US Potential partner/reseller from AP approaches you Market potential is unusually high in Asia-Pacific Automotive, Aerospace, Manufacturing, etc. Capital available

Customer is pulling you

Enterprise: Customer is asking you to support product in AP

Consumer: Significant swell of new users in AP country

Strong growth, publicity and customer references in US

Potential partner/reseller from AP approaches you

Market potential is unusually high in Asia-Pacific

Automotive, Aerospace, Manufacturing, etc.

Capital available

WHEN to consider Asia-Pacific expansion? Typically stage $5M-$10M annual revenue for (enterprise) software vendors Initial contact from potential AP prospect and/or reseller Typical reasons Revenue (to increase profit or funds for R&D spend) Become a Global player (with international references) Company valuation (global revenue potential increases valuation)

Typically stage

$5M-$10M annual revenue for (enterprise) software vendors

Initial contact from potential AP prospect and/or reseller

Typical reasons

Revenue (to increase profit or funds for R&D spend)

Become a Global player (with international references)

Company valuation (global revenue potential increases valuation)

Agenda Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support Go-To-Market Investment & Requirements AP Revenue in relation to global revenue

Background

Asia-Pacific expansion. When?

Country-Specific Considerations

Business Development

Product, Localization & Support

Go-To-Market Investment & Requirements

AP Revenue in relation to global revenue

DIFFERENCES and considerations among AP countries *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc. Size of Market Early Adopters? Unit Price Risks Most Typical Sequence Aust/NZ 1 Japan 2 China 3 Singapore/HK 4 Korea 5 India 6 Thai/Malay/ Indo/Phil 7

Sample Asia-Pacific Expansion Timeline Months Aggressive 0 6 12 18 24 Conservative 0 12 24 36 48 Aust/NZ Japan China Singapore and/or HK Korea India Thai/Malay/ Indo/Phil

Agenda Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support Go-To-Market Investment & Requirements AP Revenue in relation to global revenue

Background

Asia-Pacific expansion. When?

Country-Specific Considerations

Business Development

Product, Localization & Support

Go-To-Market Investment & Requirements

AP Revenue in relation to global revenue

Difference among AP countries: Product *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc. Need for Localization Expected Product Maturity Need for Customization Aust/NZ Japan China Singapore/HK Korea India Thai/Malay/ Indo/Phil

Difference among AP countries: Support & Presence *Note: ROUGH Generalization. Highly dependent on product, market, industry, etc. Support Volume Local Presence (Partner or Direct) Channel Partner Network Depth Vendor Direct Presence Required Aust/NZ Single Japan Double China Double Singapore/HK Single Korea Parallel India Single Thai/Malay/ Indo/Phil Single

Levels of Localization for Sales Level 0 Marketing Materials Level 1 Product Documentation Level 2 Access files with local language names Level 3 User input in local language/formats Level 4 User interface Etc.

Level 0

Marketing Materials

Level 1

Product Documentation

Level 2

Access files with local language names

Level 3

User input in local language/formats

Level 4

User interface

Etc.

Agenda Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support Go-To-Market Investment & Requirements AP Revenue in relation to global revenue

Background

Asia-Pacific expansion. When?

Country-Specific Considerations

Business Development

Product, Localization & Support

Go-To-Market Investment & Requirements

AP Revenue in relation to global revenue

Partner Approach Most countries in Asia-Pacific require a partner-centric approach Types of partnerships Strategic Partner with investment (Majority, JV, Minority) Strategic Partner without investment Master Distributor Alliance Partner Resellers

Most countries in Asia-Pacific require a partner-centric approach

Types of partnerships

Strategic Partner with investment (Majority, JV, Minority)

Strategic Partner without investment

Master Distributor

Alliance Partner

Resellers

Go-To-Market Requirements $500k - $1M investment per country, in the 1 st year Target break-even in 12-18 months (with no/minimal royalties to HQ) Need top Pre-Sales person support Invest in Strategic top-down market analysis rather than signing first reseller that knocks on your door Need localized product unless targeting highly specialized technical/management positions Country/Regional Manager should have relevant experience doing strategic deals

$500k - $1M investment per country, in the 1 st year

Target break-even in 12-18 months (with no/minimal royalties to HQ)

Need top Pre-Sales person support

Invest in Strategic top-down market analysis rather than signing first reseller that knocks on your door

Need localized product unless targeting highly specialized technical/management positions

Country/Regional Manager should have relevant experience doing strategic deals

Go-To-Market Short-Cuts Using knowledgeable 3 rd parties that can get appointments with the most strategic partners/customers can have significant impact 3 month Strategic Go-To-Market Analysis Operate your branch operation without capital expenditure Raise capital from local strategic investors Get paid, mainly on results

Using knowledgeable 3 rd parties that can get appointments with the most strategic partners/customers can have significant impact

3 month Strategic Go-To-Market Analysis

Operate your branch operation without capital expenditure

Raise capital from local strategic investors

Get paid, mainly on results

Investment & ROI Expectations Go-to-market can be achieved with different levels of involvement & investment: High : Direct hire, open offices, local regulations ($750k/country) Medium: Country heads, virtual offices, partners Note: Option to start with 3 rd party accelerator and then move to Big Bang or Strategic Investor once market traction Year 1 Investment per country Entity Employees Offices 1 st Year Target ROI Year 2-3 Profit Potential Long-Term Profit Potential Big Bang $500k - $1M 100% owned subsidiary Direct hires Rented 0% Med High Strategic Investor $250 - $500k Majority-owned subsidiary Direct hires Rented 250% High Med 3 rd party Accelerator $100 - $400k None Provided by 3 rd party Provided by 3 rd party 150% Med Low-Med Remote Partner Mgmt $100 - $300k None None None 0% Low Low

Go-to-market can be achieved with different levels of involvement & investment:

High : Direct hire, open offices, local regulations ($750k/country)

Medium: Country heads, virtual offices, partners

Agenda Background Asia-Pacific expansion. When? Country-Specific Considerations Business Development Product, Localization & Support Go-To-Market Investment & Requirements AP Revenue in relation to global revenue

Background

Asia-Pacific expansion. When?

Country-Specific Considerations

Business Development

Product, Localization & Support

Go-To-Market Investment & Requirements

AP Revenue in relation to global revenue

AP REVENUE in relation to global revenue? AP is typically 10-50% of global revenue Median 20-25% Traditionally, almost 50% of AP revenue from Japan In future, China’s share will increase

AP is typically 10-50% of global revenue

Median 20-25%

Traditionally, almost 50% of AP revenue from Japan

In future, China’s share will increase

AP REVENUE in relation to global revenue? Much of US tech company’s growth is fueled by international expansion. Ex.: In 2008: Oracle Overseas sales +22% vs. US +2% Cisco Overseas sales +20% vs. US -8% Google Overseas sales +40% vs. US +22% eBay Overseas sales +16% vs. US +5% Apple Overseas sales +29% vs. US +20% Sun Overseas sales -2% vs. US 10%

Much of US tech company’s growth is fueled by international expansion. Ex.: In 2008:

Oracle Overseas sales +22% vs. US +2%

Cisco Overseas sales +20% vs. US -8%

Google Overseas sales +40% vs. US +22%

eBay Overseas sales +16% vs. US +5%

Apple Overseas sales +29% vs. US +20%

Sun Overseas sales -2% vs. US 10%

Summary

SUMMARY: For Business Development / Marketing There is global demand for useful solutions Global expansion improves company revenue, profitability, valuation and company credibility Each country in Asia-Pacific is different and requires a different approach There are different strategies for Go-to-market depending on investment & bandwidth available Do your homework and involve knowledgeable people

There is global demand for useful solutions

Global expansion improves company revenue, profitability, valuation and company credibility

Each country in Asia-Pacific is different and requires a different approach

There are different strategies for Go-to-market depending on investment & bandwidth available

Do your homework and involve knowledgeable people

SUMMARY: For Localization People Asia-Pacific can not be treated as 1 group of users. Each country will have unique users & needs Invest upfront in proper technology and processes because once Asian market expansion starts, it is likely to expand rapidly to other countries The structure of the sales, support and training teams will be different and more complex than in the US Customer demand will drive localization needs

Asia-Pacific can not be treated as 1 group of users. Each country will have unique users & needs

Invest upfront in proper technology and processes because once Asian market expansion starts, it is likely to expand rapidly to other countries

The structure of the sales, support and training teams will be different and more complex than in the US

Customer demand will drive localization needs

Thank You. Questions? Jeremy Geiger [email_address] / [email_address] Twitter: @RTMAsia / @AsiaParagon www.LinkedIn.com/in/ JeremyG www.RTMAsia.com