BEN Networking - New Markets Abroad July 2012


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  • BEN Networking - New Markets Abroad July 2012

    1. 1. BEN Networking EventNew Markets AbroadBristol & Bath Science Park,12th July 2012, 6-9pmin collaboration with:
    2. 2. Practicalities phones emergency exits
    3. 3. Networking
    4. 4. Keep in touch!
    5. 5. Upcoming BEN Networking Events Theme When Where WhatSummer BEN 16th August River Cruise to • Cruise Bristol Harbour 2012 Beeses • Head out into countrysideSocial Event 6.30 – • BBQ at Beeses Tea Rooms 9.30pm • Bring friends and familyTechnology 6th Bristol & Bath • Leading edge technologies September Science Park • Measurement – LIMAUpdate – 2012 • Simulation and compositesFuture 6-9pmManufacturingMaking the 11th October Bristol & Bath • Tips and pitfalls 2012 Science Park • What investors are looking forPerfect Pitch 6-9pm • Get the tone and body language right • Preparation for VenturefestVenturefest Wednesday UWE • Keynote speakers 7th November Conference • WorkshopsBristol 2012 Centre • Innovation showcase2012 All day • Pitching panel
    6. 6. VenturefestBristol 2012 1-day event on 7th November at UWE Conference Centre Registration opens on 18th July ‘bringing together innovators, entrepreneurs and investors to make things happen’ – Keynote presentations + workshops – Innovation Showcase + support exhibitors – The Pitch – IP Clinics + Funding Clinics
    7. 7. This Evening’s Programme6:45-8.30 Speakers Introduction Alastair Watson BEN Key Note Paul O’Collins UKTI Views from Tom Jarman Biocentre the coal face Technology Mark Ellis Mervarde Ltd Chris Swingler Propath Continental Q&A8:15-9:00 Networking
    8. 8. Exporting – Is it for me? Suggestions on how to become an effective exporter Paul O’Collins Project Manager – Public Sector Contracts Business WestExporting 12th July 2012 9
    9. 9. Protect and Grow Exporting can help you survive and grow. There are real opportunities and real support activities to help you trade internationally. The UK offers exporters a market with few barriers to entry.UK Trade & Investment | Exporting for Growth 10
    10. 10. Top 10 products and services What we sell overseas Top 10 Products (up /down) • Pharmaceuticals (£16.9bn) 6. Aerospace (£7.6bn) • Petroleum related (£12.4bn) 7. Telecoms (£7.6bn) • Automotive (£11.8bn) 8. Organo compounds (£5.3bn) • Other oil related (£9.9bn) 9. Measuring/Analytical (£4.8bn) • Engines/motors (£9.6bn) 10. Alcohol/beverages (£4.6bn)UK Trade & Investment | Exporting for Growth 11
    11. 11. Changing world ? The world is converging Rapid growth in internet access Example Demographics • 1.3bn population in China • Western World • 314m middle class in next 5 yrs Long lives, small families • Shenzhen 12m population • Developing World • 100m urban residents since 2006 Short lives, large families • 100’s of millions getting out of poverty in Asia ‘The Asian Tilt’ - The move from West to East Emerging markets are driving recoveryUK Trade & Investment | Exporting for Growth 12
    12. 12. Export in the South West The facts… • 196,605 VAT registered companies (9.4% of UK) • 5,700 companies export from the South West 50/50 split goods / services • South West lags behind the rest of the UK in terms of export 4.3% Challenge is to • National Challenge is to increase number of GDP boost exports and increase companies exporting from 20% to 25% number of companies exporting Source: HMRC and UK Trade & InvestmentUK Trade & Investment | Exporting for Growth 13
    13. 13. Helping South West exporters Across sectors, markets and across the worldUK Trade & Investment | Exporting for Growth 14
    14. 14. The world awaits Economic growth forecastUK Trade & Investment | Exporting for Growth Source: Price Waterhouse Cooper 15
    15. 15. The Export Journey • If you don’t know where you are going, you don’t need a map.UK Trade & Investment | Exporting for Growth 16
    16. 16. What type of exporter are you? Strategic – based upon research and analysis Adaptive – “How about selling this in xxxxland ?” Reactive – “You want it for where?” Passive – “How did that happen?” Source: UK Trade & InvestmentUK Trade & Investment | Exporting for Growth 17
    17. 17. What gets people into export? Some examples of how companies become exporters • Unsolicited enquiry • Over selling • Enquiry from a prospective sales channel • “Cunning plan” suggested by colleagues, suppliers or friends Evidence shows • Attended an international trade event that new exporters are likely to • Relatives live there improve their productivity by a forms part of a strategic third in their first year plan for growth 33% Source: British Chambers of CommerceUK Trade & Investment | Exporting for Growth 18
    18. 18. Rising to the challenge Lots of reasons why not to do business internationally  Resource, availability and cost  Legal, regulatory and IP issues  Insufficient margin in product  Finance and cashflow implications  Selecting channels to market  Managing risk and getting paid  Language and cultural barriers  Logistics  Loss of focus on domestic market  Loss of controlUK Trade & Investment | Exporting for Growth 19
    19. 19. Why exporting is good for business Become more dynamic, innovative and successful Companies that export: • More productive and innovative than non-exporters • More resilient to an economic downturn • Improve their financial performance 60% • Better international profile and UK companies that brand recognition / value export are responsible for 60% of national • Are more likely to stay in business productivity growth Source: Nottingham University / UK Trade & InvestmentUK Trade & Investment | Exporting for Growth 20
    20. 20. The Export Formula • For those who like neat formulae: Pr + S((T + M + R )F * (I))Pl/Rk = EUK Trade & Investment | Exporting for Growth 21
    21. 21. The Export Formula or: Products and Services*((Time + Money + Resource )*Fear * (Information))* Planning/Risk = ExportUK Trade & Investment | Exporting for Growth 22
    22. 22. 5 Steps to ExportUK Trade & Investment | Exporting for Growth 23
    23. 23. Create an export culture - share the dreamUK Trade & Investment | Exporting for Growth 24
    24. 24. Creating an export cultureUK Trade & Investment | Exporting for Growth 25
    25. 25. Mine your resources, your clients and your network. Employees, Associates, Suppliers What do your customers do with your products? Who knows who or what?UK Trade & Investment | Exporting for Growth 26
    26. 26. International Trade Solutions - South West England 3 Support Agencies – 1 point of access International Trade AdviserUK Trade & Investment | Exporting for Growth 27
    27. 27. How UKTI support can help you Working with European Partners Enterprise Europe Network Project funded jointly by the EU and by UKTI Support for SME’s wishing to operate in Europe with help to implement competitiveness and innovation initiatives  Providing information and advice on trade in Europe  Foster international business cooperation  Stimulate innovation particularly in joint R&D and technology transfer projectsType your title and date here 00/00/0000 28
    28. 28. How UKTI support can help you Working with European Partners Enterprise Europe Network EEN Capability 600 host organisations 51 countries 4000+ staff EEN operates across the European Trade area covering > 21m businesses and a population of over 700m Also includes non EU countries Russia, Israel, USA, Japan S.Korea and ChileType your title and date here 00/00/0000 29
    29. 29. How UKTI support can help you Working with European Partners EEN Core services include  Access information through Partner Network  IP Support and advice  European R&D funding guidance  Access to over 15,000 business collaboration opportunities  Information and advice on EU Regulation and Legislation  Partner search for commercial, technical and R&D collaboration  Trade Show and Brokerage (B2B) supportType your title and date here 00/00/0000 30
    30. 30. ERDF Expertise in every aspect of international trade  ERDF Internationalisation Programme for South West eligible companies - Enhanced support to help grow your business through export - Grant funding (£1,000 up to £25,000) 2:1 match - Additional support in the form of:- International Trade Advisory support, Research, Events, Clinics and Business Development ProgrammesUK Trade & Investment | Exporting for Growth 31
    31. 31. UK Trade & Investment Opportunities for British firms around the world UK Trade & Investment helps UK-based companies succeed globally and assists overseas companies to bring high quality investment to the UK.UK Trade & Investment | Exporting for Growth 32
    32. 32. Global reach There are opportunities for UK exporters in all areas of the world British Embassies and Diplomatic offices based in 96 markets, with 2,400 UKTI staff that offer local, in-market knowledge and expertise.UK Trade & Investment | Exporting for Growth 33
    33. 33. Delivering the difference UKTI core offer provides well defined incremental support to SMEs Trade Market Business Export Export Overseas Develop Intense Show Visit Language Market Training Market Export Support Access Support & Culture Research (P2E) Introduction Strategy for Export (ECR) (EMRS) (OMIS) (G3) Growth Value Add Strategic Tactical With intense support from International Trade Advisers to provide customised export solutions to SMEsUK Trade & Investment | Exporting for Growth
    34. 34. How UKTI has helped Some key figures on UKTI activity • Every £1 UKTI spends, £22 is generated for the Over 3,000 UK economy. companies increased R&D • UKTI’s financial benefit to businesses across all activity as a trade services £6 billion in 2011 (up from £5bn) result of UKTI 24,400 support • Helped create more than 126,000 jobs in UK Companies Benefited • Over 3,000 companies increased R&D activity in the UK as a result of UKTI support. • UKTI assisted 24,400 companies to exploit opportunities in overseas markets over a 12 month period.UK Trade & Investment | Exporting for Growth 35
    35. 35. Access all Markets Package of support to help companies grow exports  Our goal is to help companies to export more  Intense programme of support to help overcome barriers and manage risk  Help to grow export in new markets  Diverse, flexible and customised support  Support based on readiness, competence, capability and desire to grow export salesUK Trade & Investment | Exporting for Growth 36
    36. 36. Getting it right Use the assistance available to:1. Research your market and 1. Establish the effect on cashflow choose well and profit2. Create an export strategy in 2. Sort out logistics line with your current /planned 3. Protect your Intellectual Property capabilities and ambitions 4. Make sure you get paid3. Understand tax and duty 5. Resource up and stay the distance4. Choose and develop a distribution model5. Sort out contractsUK Trade & Investment | Exporting for Growth 37
    38. 38. How to contact UK Trade & Investment For help, advice, access to International support programmes Local help from the International Trade Centre • Access to International Trade Advisers and support programmes International Trade Centre: Call 0845 6060969 0845 6060969 Enquiries@uktisouthwest.orgUK Trade & Investment | Exporting for Growth 39
    39. 39. 40
    40. 40. New Markets Abroad Tom Jarman Chasm Crossing © Keydynamic Ltd
    41. 41. Tom Jarman• Engineer• Product Manager - CEO• Generating Value through Technology and Markets• International / Partners• Renishaw … Tellermate … Screen Technology … Chasm Crossing Beach Solutions … Chevin … Biocentre …• VC – MTI• Many funding rounds, exits through trade sale, IPO and secondary• Cradle to exit, funding to returns; technology, to market, to business, to wealth © Keydynamic Ltd
    42. 42. Other Side of the Chasm? • >95% export • 90% GM core products • 90% + market shares • Still managed by the founders Chasm Crossing • Still >50% owned by the founders • £M’s pa dividend income • >£1Bn market cap © Keydynamic Ltd
    43. 43. Chasm Crossing – TheChallenge for TechnologyBusinesses Chasm CrossingG A Moore. 1991 and later …. Differences? © Keydynamic Ltd
    44. 44. Chasm Crossing – TheChallenge for TechnologyBusinesses Chasm Crossing • Founder / Owner’s Attitudes – Endeavour …. Sleepy Decline © Keydynamic Ltd
    45. 45. Chasm Crossing – TheChallenge for TechnologyBusinesses The technology adoption chasm New markets, new geographies chasm Funding chasm Chasm Crossing Management / leadership chasm Strategic growth chasm Exit chasm © Keydynamic Ltd
    46. 46. Our Kind Of Product• Product which is a big step forward for the industry / market – Major USP’s • USP’s OF VALUE to target customers • Core USP more than just price or/and brand• Not easily copied Chasm Crossing • Protected IP• Markets with significant geographic factors• Modest marketing budget © Keydynamic Ltd
    47. 47. New Market ChasmPick a chasm – not all are equal Chasm Crossing © Keydynamic Ltd
    48. 48. New Market ChasmPick a chasm – not all are equal • Strategically Significant Market • Ease entry to other markets / reference / partner / OEM Chasm Crossing • Ability to access • Identified partner • Benign competition • Killer USPs • Ability to support • Resource compatible – can you do it! © Keydynamic Ltd
    49. 49. Be Prepared• Product• Partners• Pricing• References Chasm Crossing• Support• Supply• Market knowledge• Competitive positioning• Targeting• Goals © Keydynamic Ltd
    50. 50. Think outside the box Chasm Crossing © Keydynamic Ltd
    51. 51. Think outside the boxTotal Product Marketing• Product – whole product / system• Partners• Pricing Chasm Crossing• Competitive positioning• References• Support• Supply © Keydynamic Ltd
    52. 52. Be Prepared• But only just Chasm Crossing © Keydynamic Ltd
    53. 53. Find a local champion Chasm Crossing © Keydynamic Ltd
    54. 54. Find a local championOptions:• Distributor• Agent Chasm Crossing• Franchise• OEM / ODM• Direct• Subsidiary• Customer / JV © Keydynamic Ltd
    55. 55. Find a local championCharacteristics:• Believer – from a position of knowledge• Hungry Chasm Crossing• Motivated• Driven• Helpful• … and preferably connected © Keydynamic Ltd
    56. 56. The Value of Partnerships• Supply Chain Investment, Capital and Working Capital• Investment, Direct and Indirect (eg licencing)• Broaden Technology Base• Spread Investment, Research, Development etc Chasm Crossing• Provide Leading Edge Technology• Market Access• Local Knowledge• Potential Acquirers• Allow Business to ‘Punch above its Weight’ © Keydynamic Ltd
    57. 57. Be Present Chasm Crossing © Keydynamic Ltd
    58. 58. Be Present• Physically, and in commitment• Local people• Visit, spend time• Communicate – two way Chasm Crossing• PR and Web/social• Language• Listen, and respond © Keydynamic Ltd
    59. 59. JFDI Chasm Crossing• Don’t dither, don’t over-complicate, deliver! © Keydynamic Ltd
    60. 60. JFDI Chasm Crossing• Believe in the dream and GFI © Keydynamic Ltd
    61. 61. JFDI Chasm Crossing• ACPMM – firewood!• Renishaw – Mitutoyo• Tellermate – Mouldings• Screen Technology - Taiwan © Keydynamic Ltd
    62. 62. Don’t get lost Chasm Crossing © Keydynamic Ltd
    63. 63. Don’t get lost• Be focussed and driven• But not blind• And not inflexible• Listen to customers Chasm Crossing - don’t be afraid to believe better - eg Renishaw, Tellermate, Dyson• But recognise the dead horse• Impossible? © Keydynamic Ltd
    64. 64. How to fund the (ad)ventureLots to observe but in summary•Its expensive, and far more time consuming thanyou want, and very draining resources Chasm Crossing•Look to partners, suppliers, customers, channelbefore funders (bank, VC, friends and family etc) © Keydynamic Ltd
    65. 65. Be lucky Chasm Crossing © Keydynamic Ltd
    66. 66. Be lucky• Focus, but don’t put all your eggs in one basket – a paradox?• Be able to cope with challenges – how?• Keep your eyes open Chasm Crossing• Encourage people to help you – give them reasons• Be able to respond to opportunity © Keydynamic Ltd
    67. 67. • Choose your chasms• Be prepared – but only just. Plan and monitor, don’t paralyse• Find a local champion : hungry, committed and able : incentivise! Chasm Crossing• Be present – communicate• JFDI• Don’t get lost – be committed, but not blind• Fund the venture – partners!• Be lucky – give yourself chances and react © Keydynamic Ltd
    68. 68. Questions : Thoughts : Input ? Chasm Crossing © Keydynamic Ltd
    69. 69. Chasm Crossing© Keydynamic Ltd
    70. 70. 71HELPING HIGH GROWTHSMES TO ACCESS NEWMARKETS ABROADMark Ellis, Mervarde Limited7th July 2012
    71. 71. Introduction and Context72  My background  Real-time Software Engineering background  Bag carrying sales guy  Sales Manager, Sales SVP  Managing Director  Experiences  3 * UK VC backed organisation (3i, Questor)  1 * Finnish backed (Connor, Ferd)  1 * PE (HG Capital)  Verticals  Document Management in Life Sciences  Outsourcing and Hosting in Accountancy and Legal SME  Fuel saving / Green energy Maratime.  So I have a few badges
    72. 72. My Metaphor73  Mountains & climbing expeditions  Inspiration  SheffieldClimbers  Rebecca Stephens  My mountains…
    73. 73. Experiences of accessing new markets74  UK based  targeting W. Europe, Middle East & Japan  (B)leading Edge  Software Technology, B2B
    74. 74. So how do you do this?75
    75. 75. Establishing base camps76  Sales, pre-sales and consulting  Local corporate entity  Hiring  Hiring is difficult, a local, a native  Training and Indoctrination  Training them at your HQ, continue to train them  Technical and business  Belief  Socialise with them  Make sure that you are hiring skills and experience, not strong bilingual speakers  Work with Partners  Get references  Localise Marketing  Have a country & market plan  Use it as an “aide memoire” and corporate memory  Don’t be afraid to change it  Give it time 4-6 months
    76. 76. Cultural Issues77  Diversity of issues  Italian Contracting processes  Japanese entertaining  UAE partnership promises  Business ethics – gifts, bribes and entertaining  Effort Required  Pacing your self  Quarter ends, Year ends  Marathons and sprints  Success and Failure  Have a medium  term view  You need pockets  Expect the first foray into a market to fail  Failure will help you learn and focus  Manage the joining and leaving of staff professionally
    77. 77. And Finally…78 You only have 2 real problems:- Expectation setting  Internal & External Communication
    78. 78. Reaching the summit…79 So you make it to the peak… Result?  Trade Sale?  Acquisition by larger organisation Losing control  Cultural and Organisational issues  Loyalties change Staff departures  Professional, humane and respectful  Fast exits What about you?  Should I or stay or should I go ?
    79. 79. Climbing Kit80  Preparation And Homework  “Crossing the Chasm” - Geoffrey Moore  “Good to Great” - Jim Collins  “Angels, Dragons and Vultures” (How to tame your investors… and not lose your company) – Simon Acland  “Strategic Selling” - Miller Heiman  “SPIN”, Simon Rackham, Huthwaite International  Rent or buy some experience…  …going up and coming down…  Energy drinks and sleeping aids
    80. 80. 81  Mark Ellis  +44 7788 871052  “Sales, Management and GotoMarket Consultancy services to accelerate growth within dynamic entrepreneurial businesses”
    81. 81. 82
    82. 82. Exporting: Relationships andShowing an interest in the local language pays dividends Chris Swingler PROPATH CONTINENTAL +44(0)7980.915290 New Markets Abroad - Exploring the Opportunities for Exporting BEN event at Science City Bristol – Thursday 12th July 2012
    83. 83. My backgroundUniversity of SheffieldDegree in Accounting, Finance and Computer Science27 years in IT in many technical roles (worked in Paris 1989 -1996)16 years running own software consulting businessOver the past 3 years have moved from technical focus to salesfocus(a very long transition...)Partnership with IAP (German software tools company) since2009- have successfully sold to customers in France, Italy and Turkey
    84. 84. France - Experiences prior to selling German software toolsProgress Software (NASDAQ: PRGS) Paris office Delivering training in French - Worked for 5 years as a technical was mandatory for all consultant delivering technical customers training in French across France and twice in AfricaCNAF - French National Child & Family Benefits – Clermont-Ferrand Working in French - Project work all in French was essentialPhoenix Engineering and Specsavers Optical Group – Lyon & Eastleigh Providing the language - Translation and Interpretation for bridge between French and Document Imaging system now English was key to the pilot integrated and used in Specsavers project success stores for storing prescriptions.
    85. 85. France - Paris The seminar I ran on the “Volcano day” in Paris was all in French. French businesses expect to be spoken to in French perhaps more than other nationalities do (althoughApril 2010: Seminar in Paris the level of English of younger French peopleNov 2010: Deal with Atuana is getting better and better).to use german software tools(OF-1) to build a SaaS/Cloud I am fortunate to be fluent inPayroll application for French. Fluency in a languageaccountants in France means that customers can “Atuana in the Cloud” forget that the supplier is not local.
    86. 86. ITALY - near Bologna June 2010: I sent my introductory email to Aptiva in Italian.This increasedDr. Donato Battistini MD Aptiva srl the confidence and seriousness of my propostition.Application Orientated Platform(AOP)December 2011: Deal to June 2011: When visiting Aptiva I spoke asintegrate AOP with IAP Skin- much Italian as I could in theClient evenings but still spoke English in the meetings. Creating very warm relationships.Jan 2012: AOP Seminar in Bristol
    87. 87. Turkey - Istanbul Used a few Turkish words in emails, Skype exchanges2009: Initial contact and calls. This helped to create warmth in the relationship.May 2012: We had only met once before atAfter 3 year sales cycle, a conference in 2005.signed deal with Turkeys2nd largest logisticssoftware company: 35 employees 600 customers Chosen to representTurkey for a pan-european logisticsintegration project Part financed by theIstanbul DevelopmentAgency Chris Swingler Propath and Ilker Pakten CEO Ulukom Istanbul 9th May 2012
    88. 88. Recommendation  Take a little time to learn the local language. Even just a few words of well intentioned effort can go a long way. Shows recognition that the potential customer is not the only one making the effort to be bilingual. Increases the feeling that a potential supplier is making an effort and taking an interest in the culture of the country. Learning Languages - at least a few words - is within the reach of most of us
    89. 89. Experience in France - Italy - Turkey Chris Swingler PROPATH CONTINENTAL +44(0)