Idealog Guide toWeightlessExportingHOW TO TAKE YOUR IDEAS TO THE WORLD WITHOUTHAVING TO PACK THEM UP AND SHIP THEM OFF NOVEMBER-DECEMBER 2011 / IDEALOG / 87
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GUIDE TO WEIGHTLESS EXPORTING Contents90 96 Why are you WeightlessWhat is banging on about this? ExportingWeightless 97 Creative licensing The term ‘weightlessExporting? FOR beginners exporting’ has been floating around for a 98 Banking 102 while, flitting in and out of other discussions on Weightless about innovation and Exporting 103 US and commercialisation. So we figured it was time Foreigners – younger, cheaper and better than you them to nail that sucker to the wall, because it’s vital to the future of New 108 It’s a big Zealand – and to anyone Our man 104 world who lives here and wants in China after all to earn more than a farm worker’s wage. Making it in 110 Making it sing in 114 New ideas 109 Malaysia Singapore in old Europe115 116 Keeping it Kiwi, but not just Kiwi, or too Kiwi In association with Export New Zealand and proudly brought to you by: 120 124 How do I get on 126 Apple and the Apps revolution ‘the Google’? Does weightless 128 Everywhere you go, 127 mean treading always take the lightly? profits with you
Idealog Guide to Weightless Exporting Weightless success What is FORMWAY’S LIFE CHAIR WAS DESIGNED AND DEVELOPED IN Weightless NEW ZEALAND, BUT SHIFTED TO PRODUCTION IN THE NORTHERN HEMISPHERE ON Exporting? ITS WAY TO SELLING MORE THAN ONE MILLION UNITS. Put simply, weightless exporting is the business of selling ideas raw, usually by licensing or some sort of contractual agreement, instead of making and shipping products from here in New Zealand, or hiring service staff and consultants to work with clients ICEBREAKER’S WEIGHTLESS WOOLLIES Icebreaker’s clothing is built on a primary production platform – it makes snazzy outdoorwear out of wool. It started out as a purely weighted product, with wool raised in New Zealand, clothes made here, and then shipped all over the world. But like some big ol’ balloon, as it’s been blown up larger and larger, it’s become more and more weightless. The manufacturing has been moved to Shanghai, and the emphasis placed on design from the outset has become a major tool for adding value to a business that now employs more than 1,000 people and buys about a ﬁfth of New Zealand’s merino wool. Increasingly, what it’s really exporting is an idea, as chief executive Jeremy Moon puts it: “It’s about our relationship to nature, and to each other. And it’s about new ideas and doing things differently, being an authentic natural choice in an age of synthetics, and seeing how far we can develop this simple idea.” But most importantly Icebreaker has maintained its core connection with New Zealand and the wool industry its whole story is based on. Most recently, this has been expressed in its Baacode system, which customers can use to trace their Grenville Main garment back to the farm it was grown on. 90 / IDEALOG.CO.NZ
GUIDE TO WEIGHTLESS EXPORTING THE DAIRY COLLECTIVE – HOW TO MAKE YOGHURT TRAVEL Fresh yoghurt is not known for keeping for long periods of time. When Ofer Shenhav and Angus Allan of Auckland-based The Dairy Collective wanted to go offshore, they could have frozen up batches and shipped them, but they may have ended up being some of the most expensive dairy produce in history and not as fresh as they once were. Instead they shipped the recipe out to the UK, got the yoghurt made there, and started stocking the ▲ shelves of big players like Sainsbury’s, Waitrose and Ocado. Crucially, they not only sold the system, processMARK ZUCKERBERG – THE WEIGHTLESS BILLIONAIRE and the component parts ofThe jaw-dropping appeal of Mark Zuckerberg’s meteoric rise to billionaire status is partly about the intellectual property –the weightless way in which Facebook was originally created using just a laptop and an internet their special way of makingconnection – in other words, how weightless its global spread has been. Facebook now gets more yoghurt – but they also tooktrafﬁc than Google in the US. If Facebook were a country, it would be the third largest in the world. the brand over there as well. NOVEMBER-DECEMBER 2011 / IDEALOG / 91
Idealog Guide to Weightless Exporting Peter Salmon THENEXTPLAYS.COM – SUCCESS ON THE CARDS When I ﬁrst encountered NextPlays, it was a bunch of ideas on cards being touted by social entrepreneur Peter Salmon from his Wellington- based outﬁt Fische Consulting like he was the world’s ﬁrst designer conjurer. Described by the company as “part research, part collaborative workshops, part prototyping labs” the NextPlay system brings together 70 case studies or ‘plays’ from around the world, each showing one process the company concerned has used to grab EverEdge IP CEO Paul Adams and senior VP, operations, Edward Scott. a little more sustainable market share. Users can analyse these ‘plays’ in CRUSHING THE COMPETITION Weightless success several different ways. One approach takes examples EverEdge IP’s experiences in licensing the Crushpak from the point of view of crushable plastic food pottle demonstrates how the need LES MILLS SET UP HIS FIRST a list of key sustainable for scale can all add up. innovation criteria. These Adams says, “We prepared the commercialisation strategy GYM IN 1968. IT COULD HAVE include Authenticate, and got ready to take it to market. It became apparent very Engage, Go Long, Loops, quickly that a single factory in the US could produce about SO EASILY HAVE BECOME JUST Mixed, Needs Based, and a million of these units a day and that’s one of dozens of Simplify. Another allows you these factories around the US. A SINECURE FOR A RETIRING to choose from the same “In New Zealand the annual consumption of this product case studies in light of is about six million units, so a week’s worth of US production ATHLETE. INSTEAD, UNDER Doblin’s Ten Types of from one factory could supply New Zealand for a year. Innovation to see where the “So even assuming we had been able to secure the capital THE GUIDANCE OF HIS SON innovation occurred, in to build a factory to supply at the rate required to supply the Finance, Process, Offering or US, and assuming we could ship those units to LA and land PHILLIP, IT HAS SPAWNED Delivery. Then the result of them there, and assuming we do that every single day, day in each play is catergorised as day out, we still wouldn’t have had the distribution to move a A WORLD-FAMOUS RANGE OF Reﬁned, New and Shifted. million a day. So there was no way that technology was going The system has been used for to be commercialised in a weighted way.” GROUP FITNESS CLASSES THAT Air New Zealand, Kraft, Coca EverEdge IP licensed Crushpak and Adams says it’s since Cola, Shell as well as a social been “phenomenally successful”. IS NOW LICENSED TO 14,000 project called ‘Sociedades Del “It’s generating millions of dollars of royalties annual and Futuro’ in Mexico. So it looks those revenues are 90 percent margin. GYMS WORLDWIDE like it might be a good way to “So you can stuff things into containers and compete toe pick a winner. The only to toe with much better resourced competitors in their home ‘weight’ involved is the markets, or you can use a licensing business model and trainer and the training achieve extremely high-margin revenue. To me the choice is materials: thenextplays.com. both stark and obvious.” 92 / IDEALOG.CO.NZ
Want to hear a story?Once upon a time, not so long ago, two Kiwi guys had a crazyidea. ‘Let’s reinvent reading,’ they said. And so they did It’s exciting, as an advisor, to see your client launching successfully and progressing IN BRIEF from having an initial prototype Booktrack was launched by Mark and and an idea to turning it Paul Cameron in August, with the help into something that can be of AJ Park downloaded from the app store It represents the ultimate in the weightless exporting model – highly efﬁcient, and with global reach CONTACT To ﬁnd out more, contact Hadleigh Brown, 09 353 8216, hadleigh.brown@ ajpark.com, www.ajpark.com
Researcher Kelly Sheerins work could potentially be used to assist the NZRU, Super 14 and the ACC.(L-R) Paul Cameron, Brooke Geahan, Derek Handley and Mark Cameron launched Booktrack in August. IP firm AJ Park was instrumental in ensuring the technologywas protected and appropriately commercialised, using its well-established relationships with overseas associates to help file patent applications around the world. Facebook director of global creative solutions (and Kiwi expat) Mark D’Arcy is one of a collection of big names backing the venture.
Idealog Guide to Weightless Exporting Why are you banging on about this? Closing the knowledge gap in New Zealand’s economy DON’T PAY THE POSTAGE As New Zealand is the last bus stop on the planet, shipping is costly and comes with an inherent, if relatively small, risk of it not getting there. Sending a 20-foot container to the UK can set you back a couple of thousand dollars, and that’s without factoring in the handling costs. Then it can take about a month to get to its destination. This can play havoc with your forward planning and cash ﬂow, especially in situations when somebody wants small amounts of products fast, an even more costly business per unit than sending whole container loads. With rising fuel costs and the threat of the imposition of carbon taxing, shipping isn’t going to get cheaper anytime soon. VALUE OF THE WEIGHTLESS ECONOMY PER CAPITA: YOU TAKE THE SUPPLY ROAD, AND I’LL TAKE NEW ZEALAND US SWEDEN THE KNOW ROAD $33 $279 $499 SINGAPORE FINLAND You can commercialise $263 $322 anything through three models: SCALE IT UP In the world of tangible as opposed to digital products, one Sell the of the immediate challenges facing us is that even if our intellectual property manufacturing were competitively priced on the global market, which it’s not, we wouldn’t have enough capacity to make License the enough stuff for the biggest markets in the world. It’s one thing intellectual property to make a product in New Zealand, it’s another to set up the infrastructure that a market, like the US, demands. Adams says, “Often you get very successful products but they Incorporate the then get an order from overseas and it’s 10, 100 or 1,000 times technology into the company’s ability to fulﬁl that order.” And you can’t wait a product, make until you get the big order before tackling the problem. it and ship it “The market abhors a vacuum. If there’s a great new product out there but the original creator can’t supply it, someone else Adams says: “Our de facto will. We’ve seen many examples where New Zealand products commercialisation has been were very successful here, the ﬁrm tried to supply the market the third [manufacturing] from New Zealand, simply wasn’t able to and other, better and it has been not especially resourced players from overseas jumped in and took the market.” successful. The net One way to get around this is to create things that can be commercial output is scaled up much more easily. You can’t build a new factory remarkably low. Maybe overnight, but you might be able to ﬁnd one somewhere on the we need to rethink the model planet that can get you what you need pretty quickly. Having a we’re using?” digital product also helps. AJ Park’s Mark Hargreaves says, “If you build your model around weightless exporting, your ability to scale is greater. Software as a service is hugely scalable; you can grow quite rapidly.” 96 / IDEALOG.CO.NZ
GUIDE TO WEIGHTLESS EXPORTINGCreative licensingFOR beginnersIt’s easy to think that the licensing exists in aparallel universe only inhabited by legal eagles, THE PROCESSbut it’s crucial to maximise your returns Spend time understanding the market you are trying to plug into Match your intellectual property protection to your commercialisation strategy – you can’t earn royalties effectively from places where your IP is not protected Mark Hargreaves Spend a lot of time working on how the product gets to the market offshore and ONCE MORE INTO to the end user – is there government BREACH, DEAR FRIENDS procurement going on? It’s madness to do all that negotiating to license a product if you don’t bother to Understand what each party wants out of follow up to make sure they’re the license, not just how much money you paying you what they owe. Hargreaves says, “You always want and whether they can pay it have audit provisions in your license, but they are more Understand that it takes a long time honoured in the breach than – it is not uncommon for licensing anything else. Often the audit is not carried out, and when negotiations to take a year or more. they are carried out, more The more complex the technology and often than not the licensee the more important to the licensee, the has been under-reporting longer it will take to get a result the royalties. So you do need to keep an eye on them.” As anyone who runs a small Don’t underestimate the work. business will tell you, don’t Don’t think that’s it’s always necessarily count on the big corporates going to be easy to be the best payers. The license for a product that may be your life and soul If the license you are offering is going to might end up stuffed in a be part of a large portfolio for the licensee, bottom draw somewhere in how will it ﬁt in their existing lines? Do MegaCorp HQ and seldom seen again. Stay in touch with they have the same expectations for it, or your licensees or risk losing is it just one of many products they are touch with your product. licensing and they are not going to push it that hard? NOVEMBER-DECEMBER 2011 / IDEALOG / 97
Idealog Guide to Weightless Exporting Banking on Weightless Exporting Banks can be gun-shy when you start talking about intangible investments. But banks here are increasingly willing to take a look at propositions that don’t necessarily fit into a shipping container IS THERE A CLEAR REVENUE STREAM FOR THE FUTURE? COMMERCIALISATION IS WHAT COUNTS There is no shortage of incredible ideas out there. And there’s huge demand for innovative products. So how do you make them meet? IDEA P RO D U C T R E A L I T Y S T RO N G I P NO-ONE SUSTAINABLE POSITION COPIES YOU MARGINS COMMERCIALISATION SMEs, ‘PINCH POINT’ investors, STRONG IP CRIs, universities, SUPPLY OF IDEAS DEMAND FOR INNOVATION Corporates, VS research PRODUCTS governments WEAK IP institutes, private R&D WEAK IP NO-ONE EVERYONE POSITION COPIES YOU COPIES YOU INABILITY TO R I S K AV E R S I O N MOV E TOWA R D S D I S C O U R AG E S C O M M E RC I A L I S AT I O N MOV I NG TOWA R D S C O M M E RC I A L I S AT I O N P RO D U C T I S P RO D U C T I S Source: EverEdge IP A FA I L U R E A SUCCESS 98 / IDEALOG.CO.NZ
Bringing breakfastto the worldWith its unique formulations, ongoing productdevelopment and speed to market, Kiwi cerealmaker Smartfoods is in a bowl of its own THE NUMBERS In the ﬁnancial year to March 2011, Smartfoods’ exports accounted for 12 percent of total turnover. In the next ﬁnancial year, they will account for 24 percent. That’s 143 percent growth across its total export business. Exports for Asia are growing ahead of that at an average of more than 670 percent over the same year. CONTACT New Zealand Trade and Enterprise, www.nzte.govt.nz
Smartfoods founders Justin Hall and Vicky Taylor credit New Zealand Trade and Enterprise for helping their business grow, expand, and connect with other Kiwi exporters.
Idealog Guide to Weightless Exporting US and them There are two types of companies in the US – the quick and the dead Duncan Catanach You can make very good money in the US, but you have to be well prepared. You have to be on your game – because everybody else is 102 / IDEALOG.CO.NZ
GUIDE TO WEIGHTLESS EXPORTINGNEW ZEALAND COMPANIES Foreigners –DOING HEALTHYBUSINESS IN THE US younger, cheaperORION HEALTH – YOURSELF OR SOMEONE LIKE YOUIn the 16 years since Orion Health was founded, the ﬁrm has and better than yougone from a ﬁve-person startup to New Zealand’s largestsoftware company. Its specialist healthcare programs mightone day save your life, or the life of a loved one. They may It used to be the case that having your productalready have done so. Your doctor almost certainly uses made somewhere else was driven by theOrion products, as does your local hospital every time a newpatient arrives. potential for saving money. That maxim Orion’s Concerto Portal has helped sweep away centuriesof staggering down hospital corridors clutching dog-eared doesn’t necessarily apply anymorepaper ﬁles. It allows medical staff access to a single view oftheir patients’ computerised admissions records, blood test,x-ray results and more. The ﬁrm now has turnover of around $60 million and 500 Astaff, with ofﬁces in the US, UK, Spain and Australia, and hasjust announced it is recruiting another 100. MANUFACTURING WORKER’S AVERAGEB2P – TESTING THE WATERS MONTHLY WAGEB2P’s range of products sniff out serious bacterial infectionin water in less than two hours, and can conﬁrm water isdrinkable in about 14. Current testing takes between 22and 72 hours. Inﬂuential US magazine Popular Science said: “TheThermos-size MicroMagic device lets inspectors check forE. coli on site and at every stage of food production andpreparation and it produces results in 45 minutes to 10hours.” This is valuable: waterborne disease is estimated to NEW ZEALANDcost the US healthcare system about US$100 billion. Thecompany has set up a US company to penetrate the market. US$2,740EMENDO – CAPACITY PLANNING SOFTWAREAny fan of TV hospital dramas knows how hard it is to getthe right people and equipment into the right places inhospitals at the right time. This is what Emendo CapPlandoes, and apparently it does it pretty well. According tothe ﬁrm Bedford NHS Trust in the United Kingdom saved CHINAUS$500,000 in the ﬁrst four months of using the software. US$580Since 2007 their saving in inpatient areas alone has averagedapproximately US$1.2 million a year.MATAKINA INTERNATIONAL – SIMPLY THE BREASTMatakina’s Volpara breast screening software has proveditself as a more accurate and lower cost alternative toexisting systems in the US. The company now has deals withtwo major breast screening hardware suppliers to use the INDIAsoftware – a potentially US$4.3 billion market overall. US$119 NOVEMBER-DECEMBER 2011 / IDEALOG / 103
Idealog Guide to Weightless Exporting It’s a big world after all Nearly half a billion people speak English around the world, depending on who you ask (and how slowly and loudly you ask them). That leaves a few billion adults who don’t, and some of them have cash in their pockets you might like to have in yours Hans Frauenlob ASIA IS A RICH WEB OF CULTURAL COMPLEXITIES AND ADVERTISERS NEED TO HAVE A DEEP UNDERSTANDING OF THE CULTURE OF EACH COUNTRY THEY MARKET TO 104 / IDEALOG.CO.NZ
Knowledge is powerThanks to its global banking network, BNZ is helping Power SystemConsultants take its specialist knowledge to the world IN BRIEF For a company like Power BNZ offers PSC a full range of day-to-day Systems Consultants, which banking services such is truly global, it all has to as term loans, overdrafts, company work. PSC needs to be able credit cards, internet banking and FX online to do business anywhere in for making payments overseas. the world at any time, and link BNZ also assisted back into whats happening PSC with strategic planning, advice on in New Zealand board structure, and transactional reviews. As part of the NAB group, BNZ has banking links worldwide. CONTACT To ﬁnd out more about BNZ Partners, please contact 0800 273 916 www.bnz.co.nz
(L-R) BNZ managing partner Phil Bennett and Power Systems Consultants co-founder Tony Armstrong. The partnership has been vital to PSCs global growth.
Idealog Guide to Weightless Exporting Our man in China ‘Made in China’ has built up a whole load of assumptions, most of CHINA, which are wrong. We spoke to Patrick English, consul general, trade THE BIG COUNTRY commissioner, Guangzhou, to get the real deal on making ideas IF YOU WERE ONE into reality in the most populous country in the world. He’s been IN A MILLION IN visiting China for 22 years and living there for 11, so he should know CHINA, THERE WOULD BE 1,300 PEOPLE JUST LIKE YOU. CHINA WILL SOON BE THE NUMBER ONE ENGLISH- SPEAKING COUNTRY IN THE WORLD 108 / IDEALOG.CO.NZ
GUIDE TO WEIGHTLESS EXPORTING Making it in Malaysia In case you have any images NOT CHEAP IN CHINA of Malaysia as all palm trees GETTING THE snorkelling, check this out: the latest World Economic Forum RIGHT ADVICE Global Competitiveness ON CHINA IS Report placed Malaysia IMPORTANT, 21st, four slots ahead of Patrick EnglishAND NOT CHEAP. New Zealand at number 25 ACCORDING TO RECENT bout a quarter of the country’s GDP comes from manufacturing, spurred on as companies look REPORTS, beyond China as an entry point to Asia. Meanwhile, Malaysia is trying to increase the value of its LANZATECH manufacturing, and move into the service sector. The Malaysia- New Zealand Free Trade Agreement, which came into force lastSPENT $509,000 year, suggests they are keen for Kiwis to get involved. Meanwhile, the middle class is busy burgeoning in Malaysia, ON AN just as it is all over Asia, and increasing their consumption of protein and their interest in brand-driven sophisticated shopping EMPLOYEE OF experiences. So there’s a market there for the right products too. IP protection is in a relatively advanced state, and there’s a ITS INVESTOR, growing uptake of social media, with businesses using Facebook to build brands and even business-to-business networks. QIMING All this means Fiona Acheson, trade commissioner, Malaysia, Indonesia and Brunei, reckons there are good opportunities out VENTURE there for the right propositions. “Like doing business in New Zealand, the most successful PARTNERS, TO businesses tend to be those that view business as an ongoing relationship in which you invest time, money and support,” HELP WITH she says. “New Zealand products and services aren’t necessarily top of mind for Malaysian businesses or investors looking ALL MATTERS for opportunities. “Assumptions that things will be similar to New Zealand or RELATING TO other developed markets tend to be a stumbling block.” Victoria University’s Kim Fam says, “Malaysia and Turkey THE CHINESE are both Islamic countries, but Malaysia is more lenient when it comes to advertising alcohol. This is because Malaysia is a MARKET multicultural country that needs to maintain social and cultural NZTE has 11 staff in three ofﬁces in China. For more NZTE harmony with its various ethnic groups, including Malay, advice on trading in China, visit bit.ly/ojKshf. Chinese and Indian.” NOVEMBER-DECEMBER 2011 / IDEALOG / 109
Idealog Guide to Weightless Exporting Making it sing in WHAT TO KEEP IN MIND When looking at selling a Singapore technology product, ensure that it is one of the ﬁrst few countries to have seen the product or service. If it is a medical device, obtaining FDA approval or EU certiﬁcation or having been tested and piloted in Australia could potentially Tucked away at the bottom of Malaysia, the Singapore powerhouse speed up its market entry. Consumers in Singapore are is becoming a key staging post for New Zealand companies looking used to the ﬂash imagery from markets such as the to promote their ideas and innovation out to Asia and beyond US and Europe, so New Zealand products should have the same level of sophistication if not more. Singapore is a very brand-conscious society. Brands sell – and they sell very well. THE ASIA OPPORTUNITY Some of the key trends across Asia that say, yep, we will pay innovative countries to do cool stuff for us: Increasing disposable Ziena Jalil incomes Growing focus on health and wellness Growing appetite for Western/imported products An emphasis on convenience LINKEDINDONESIA Brand consciousness LANZATECH – NOBODY SAID IT WAS EASY Indonesia has just Ageing population Lanzatech’s team of biologists and process design engineers spend their days in a state-of-the- become the world’s (in some markets such art lab facility in Auckland cooking up patented processes and microbes. Among other things, second largest user of as Singapore) they convert carbon monoxide-containing gases from coal, steel manufacturing, oil reﬁning, Facebook with 35 chemical production, as well as recycled waste, into valuable fuel and chemical products. million users Increasing focus on halal Over the past couple of years, the ﬁrm has entered partnerships with industrial corporations certiﬁcation in Malaysia, The United Indonesia and Brunei (and across Asia, including Chinese steelmaker Baosteel, with which it is working to commercialise States Embassy in Singapore, to some extent) its technology, IndianOil, China’s Henan Coal and Chemical Industrial Corporation and Mitsui Jakarta has about & Co, part of Japan’s Mitsui conglomerate. Interest in knowing the 143,000 friends Revenues on licensing deals are just starting to trickle in, but the company reported a net loss origins of a product of $14.6 million in the 12 months ended March 31, almost twice the loss of $8.4 million a year About 12 percent of the world’s tweets Growing focus on earlier, according to ﬁnancial statements lodged with the Companies Ofﬁce. stem from Indonesia food safety Chief executive Jennifer Holmgren has said the ﬁrm won’t break even until the end of 2013. 110 / IDEALOG.CO.NZ
KnowlEdge here. TMMillions of tons of water. Harnessed by concrete and steel. And knowledge. EVEREDGE IPEverEdge IP is a world leader in technology and intellectual property commercialisation. ®We understand the power of knowledge. We know how to harness that power to drivegrowth and create wealth. This is commercialisation. This is our edge. The Commercialisation Specialists.Talk to us today about how we can help you convert innovation into international email@example.com | (09) 489 2331 | www.everedgeip.com
On displayNapier-based Future Products Group – the power behindthe McCafé cabinetry – has experienced untold businessgrowth. TelstraClear has been there all the way The company’s jump in IN BRIEF If you’re exporting, Skyping to facilitate its export you’ll need to be well connected to the activity led to an increase in globe. TelstraClear is a data usage – so TelstraClear subsidiary of Telstra, the world’s ﬁfth largest recommended an upgrade telecommunications company. Its network extends worldwide, which means TelstraClear can offer great leverage, particularly to companies that operate at a trans- Tasman level. CONTACT To speak to a TelstraClear business advisor, call 0508 BUSINESS (287 463) www.telstraclear.co. nz/business
TelstraClear advisor Nigel Hulena with FPG founder Jared Vaughan, McCafé has since gone global after being trialled in Australasia, and FPG has reaped the benefits. There are at leastwho says the telco’s assistance has been invaluable. 1,300 McCafés in operation now – this one’s in Germany.FPG expanded into Australia in the 1990s with custom-made retail and food display units, and McDonald’s contracted them to supply cabinetry for its McCafé concept stores.
Idealog Guide to Weightless Exporting New ideas TOP TIPS FOR SELLING TO THE EUROPEANS in old Europe Scoliège says that before deciding to enter a new market and on the strategy for that market any New Zealand company should: Europe has hit the business headlines recently for all of Have a good understanding the wrong reasons, but the credit crisis doesn’t mean that of the market. Have one senior New Zealander from every European is skint just yet – and there are a lot of them your team in country for several months or link up with the right* local partner, agent, reseller or distributor. Ideally, do both. Sell a solution, not a technology, especially when communicating to the end user of the product directly. Engineers will like talking technology, while the purchasing, marketing or ﬁnance directors want solutions that relate to their objectives and problems. Marcus Scoliège Be persistence and patient. A good commercial relationship is not built in one or in two meetings. Both commercial partners and customers want to see that you are committed to the market and that they can trust you to still be there in three years’ time. Appearing quickly without good preparation to then withdraw again can hurt your image more than taking your time and entering when you are ready. Know that cultures differ. The main points of a German customer might be very different from those of, say, the Australian customer, and therefore the beneﬁt to them and the positioning might vary a lot. *The wrong one will cost you money and time, and cause you severe frustration and embarrassment 114 / IDEALOG.CO.NZ
GUIDE TO WEIGHTLESS EXPORTINGTime to getNew Zealandout from under You don’t need to set upthe cloud a factory, you don’t need to invest in plant and equipment, you don’t need to get expensive financeInnovation in New Zealand is sometimestreated like a capital offense. Here’s why or establish extensive distribution channels Mark Hargreaves TO BE THE BEST, WORK WITH THE BEST. HOW CAN YOU SOAR LIKE AN EAGLE IF YOU’RE SURROUNDED BY TURKEYS? NOVEMBER-DECEMBER 2011 / IDEALOG / 115
Idealog Guide to Weightless Exporting Keeping it Kiwi, but not just Kiwi, or too Kiwi DNA’s Grenville Main is a man who knows how to sell Kiwi stuff abroad. He warns weightless exporters that leveraging off of our strong New Zealand identity is one thing, but leaning on it is another thing altogether THE CHALLENGES OF BRANDING WHILE WEIGHTLESS Your brand captures and communicates the uniqueness of the idea you’re selling. But there are some challenges: there can be less physical product to stick things to, both literally and metaphorically; it can be more challenging to centrally control your brand if you are not in direct control of production; conversely, it can be easier to control all branding elements in a Grenville Main says while the Kiwi attitude factor and ‘Kiwi on the edge hoo-ha’ holds a degree of allure, digital environment, and your customers will expect you to do so. New Zealand needs to aim at something else entirely: to get recognised as a design engine. 116 / IDEALOG.CO.NZ
WE HELP TAKEKIWI BUSINESSTO THE WORLD.Designing customer experienceAT WE IDENTIFY AND EXAMINE CUSTOMER EXPERIENCE ISSUES. AT WE DELIVER ON THAT THINKING.
In vino veritasTwo homegrown vineyard managers are on the verge of transformingviticulture around the world, thanks to a little help from our friends IN BRIEF EverEdge IP helps innovators make money from ideas. It guides clients through the commercialisation process, from start to ﬁnish. It’s also independent of the patent attorney industry and provides objective, insightful and robust advice around if and how to commercialise technology. The EverEdge IP team has been there, done that – two thirds of company revenue still comes from commercialising its own technologies, so its advice is pragmatic and deal orientated. CONTACT Paul Adams, EverEdge IP, 09 489 2331, p.adams@everedgeip. com, www.everedgeip.com
Researcher Kelly Sheerins work could potentially be used to assist the NZRU, Super 14 and the ACC.Klima founders Marcus Wickham and Nigel George were astounded when they first saw their highly successful pruning mechanism in action. It’s taken off since then, with German licencepartner ERO Weinbau on board and licence agreements being negotiated around the world. EverEdge IP played a huge part in the company’s successful commercialisation.Wickham says EverEdge IP guided Klima through the whole commercialisation process – and that if they’d done what they thought was the right thing, they’d be in ‘allsorts of strife right now’. EverEdge IP CEO Paul Adams says failure often happens because the commercialisation process is mismanaged, not because an idea is terrible.
Idealog Guide to Weightless Exporting Business AT THE speed of light Businesses don’t come more weightless than digital businesses, but they do have to be treated every bit as seriously as any other business – and they come with their own special set of challenges The weightless nature of digital business means if you can get it going with just a laptop and a smart idea, so can a lot of other people 120 / IDEALOG.CO.NZ
GUIDE TO WEIGHTLESS EXPORTINGRod Drury, Sam Morgan and Sir Stephen Tindall are doing the groundwork for a new era in New Zealand connectivity. NOVEMBER-DECEMBER 2011 / IDEALOG / 121
Ready to fly? DNA’S RULESWhen it comes to exporting our great ideas, location FOR EXPORTING SUCCESSis irrelevant – and New Zealand companies could get A concept or model that’s worked in oneairborne faster with a lighter strategy from the very start market won’t necessarily work perfectly somewhere else. You may have to ﬁne-tune it. Focus on anything you can build IP around, deliver better value with, deliver ‘in market’ because it’s light, and you can prove customers in that market will pay for. Consider adding a pinch of Kiwi attitude, create a brand that will have customer relevance, and drive resonance – design a service experience that’s all about user needs and goals. Stand out – you may beat the tyranny of distance, but you’ll always have to work to beat the tyranny of indifference. Certain sectors are more ripe because they are light: science and technology, IT, education, ﬁlm, furniture and food. CONTACT Grenville Main, 09 489 2331 or 09 375 1592, grenville.main @dna.co.nz, or Donna Maxwell, donna. firstname.lastname@example.org, www.dna.co.nz
DNA head Grenville Main says client Trilogy Skincare is a great example of Epic Beer broke with convention in creating a beer with far more hops than youra business with strong IP and an ability to capitalise on the weightless model. average beer, and as a result is reaping the rewards, with attention from US brewers.DNA helped BNZ take its Out Of The Box (OOTB) concept from Kiwi shores to Australia, where it lived on – very successfully – in another incarnation for parent company NAB.
Idealog Guide to Weightless Exporting How do I get on ‘the Google’? Social media for beginners – in other words, pretty much everybody GEEKS, MAKING US ALL MORE SOCIABLE SINCE... ONLINE SOCIAL NETWORKING, AS OPPOSED TO THE AGELESS VERSION OF CHATTING TO PEOPLE OR GOING TO ROTARY, HAS NOT BEEN AROUND FOR VERY LONG 2003 MYSPACE 2004 FACEBOOK 2005 YOUTUBE 2006 TWITTER 124 / IDEALOG.CO.NZ