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Internationalization for Software Business
The document outlines the importance of internationalization for software companies, emphasizing that it should be a strategic and planned endeavor involving the entire organization. It discusses the necessity of adapting products and processes to meet local market requirements and provides a roadmap for entering new markets, including market selection and strategic execution. Key operational aspects include understanding competition, cultural considerations, and building appropriate partnerships to enhance market presence and mitigate risks.
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Internationalization for Software Business
- 1. Internationalization for SoftwareBusiness Benefits and Investment to Cross Borders Ernani Ferrari ernani.ferrari@mondostrategies.com 08/24/2016 Brazilian Association ofSoftwareCompanies
- 2. Summary Internationalization is apathway not only for growth, but also to protect acquired market share Internationalization should be a strategic, planned move, and not something casuistic. It should, therefore, be planned and executed with care and proper investment Internationalization is a company-wide movement, not something of a single department. It encompasses products, processes, people and time – just like a local new operation does Markets in perspective: IT in Brazil expends only 3% of global IT expenditures The entire Chilean market is as big as Santa Catarina’s market
- 3. AGENDA Why go international? Whengo international? Requirements to enter new markets Choosing markets How to put the required resources in place Other considerations Summary: Roadmap for Going International
- 4. Internationalization (I18N) Adaptation ofproducts and processes to support international environments and to simplify the implementation of localizations Internationalization and Localization Localization (L10N) Adaptation of products and processes for a specific market (country) Operational Aspects Internationalization Doing business in more than one country Business
- 5. Why Go International? Distributionof the global IT market Internationalization has become mandatory for the medium and long term Entering new markets Sustaining market share in local markets • Globalization. Where are (were?) the borders? • Growth and attack of large, international players • Clients are also going international
- 6. Approaches for Internationalization Astrategic or an opportunistic move? Strategic planning and systematic execution The short long way The long short way
- 7. Driving Forces xGuidance to the Future Markets CurrentNew Current NewProducts Driving Force: Market Driving Force: Product Driving Force: Profit / ROI
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- 9. Planejamento Business Objectives –Market Expansion Operational Objectives Reduction of time-to-market Reduction of costs from “trial-and-error” approaches Reduction of costs for product adaptation Better product adherence to the chosen markets Reduction of risks and liabilities Preparation for faster, more adequate responses to the chosen markets Investment optimization – directions and anticipation of requirements Tax benefits
- 10. Planejamento Business Objectives –Market Expansion Operational Objectives Reduction of time-to-market Reduction of costs from “trial-and-error” approaches Reduction of costs for product adaptation Better product adherence to the chosen markets Reduction of risks and liabilities Preparation for faster, more adequate responses to the chosen markets Investment optimization – directions and anticipation of requirements Tax benefits We reap what we sow...
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- 12. Requirements for GoingInternational Understanding the methodological, technological, organizational and marketing aspects that are fundamental for the productivity and quality required at international levels Visibility over the local and international competition Conception of business approaches – strategies and tactics Education of management and operational staff Software processes – methodologies, techniques, best practices and tools Knowledge management Contact centers and remote customer support Services – consulting, software implementation, technical support Project management Applied technologies Internationalization of software and business processes
- 13. From a businessperspective: What is necessary to be succesful in your current market?
- 14. Entering a NewMarket – Strategic Factors: PRODUCT World-class solutions Addressing local market requirements BRANS Recognized brand SALES CHANNELS Coverage Expertise SERVICES Availability Expertise
- 15. Business Model – KeyAlternatives PRODUCT Competitive solution (price x benefit) Complementary solution Innovative solution MARCA Start from scratch Generate perception of presence Size Market-share in other markets References (customer base) Attach solutions to the brand of someon established SALES CHANNELS Direct sales Use of distributors / representatives / partners OEM sales Mergers and acquisitions SERVICES Direct presence Service / sales-service channels Outsourcing – field services / customer support
- 16. Business Model – KeyAlternatives PRODUCT Competitive solution (price x benefit) Complementary solution Innovative solution MARCA Start from scratch Generate perception of presence Size Market-share in other markets References (customer base) Attach solutions to the brand of someon established SALES CHANNELS Direct sales Use of distributors / representatives / partners OEM sales Mergers and acquisitions SERVICES Direct presence Service / sales-service channels Outsourcing – field services / customer support IN PRACTICALITY: Knowledge Products Processes
- 17. Market Segmentation Current and potential segments Segments thatare(or will be) attractive Attractive segments for which we are (or can be) strong Assets for positioning and results in the chosen segments
- 18. Selecting Markets –6 Steps 1 – Identify the universe of markets 2 – Select evaluation criteria 3 – Evaluate markets according to the selected criteria 4 – Validate markets with key prospects 5 – Prioritize markets 6 – Make adjustments as you go
- 19. Cuidados Especiais Delegated Authorityx Delegated Responsibility The responsibility will always be yours, somehow • Risk analysis • Image damage Deep investigation of potential partners and/or channels Plan for an exit Partnerships – bridges or tight-ropes? Partnerships – Complementation and speed History of (Failures) Sucesses Product partnerships – Icebergs seen from the surface More attractive markets More competition. More costs Legislation – regulatory requirements and local practices Taxes – taxation; bringing money home
- 20. Internationalization – Battleor War? Market Opportunities Threats Waterfall effect Desires for greater expansion Demands for greater expansion Drawing the roadmap Natural tracks for expansion Market attractiveness SWOT analysis Synergies – products, organization, customers, complementary products
- 21. Product Internationalization Key Requirements Addressingthe target markets’ requirements Assessment of the available solutions – potential competition Product functionality Common international features Flexibility for adaptation and re-configuration Architecture – Technical and Functional Ease for localizations (and customizations) • Functional modularization for component reuse • Personalization resources; flexible user interfaces • Internationalized business rules • Localizations independence • Handling of data format / display Languages • Externalized labels • UIs of dynamic configuration • Double byte characters • Multiple text formats and abbreviations • Variable text lengths for different languages Documentation – Functional; Technical
- 22. Key Processes for Internationalization StrategicProcesses Strategic Planning Marketing • Market Intelligence • Market Positioning • Product Management Operational Processes Marketing Communication Sales Channel Management Product Development and Maintenance Services Customer Support PEOPLE PROCEDURES TOOLS OBJECTIVES
- 23. Product Localization Aspects toAddress Legal Aspects Legislation Mandatory standards Documentation Business Practices Lore and habits Informal market standards Economy and market adaptations Technology context Cost of resources – human, infrastructrure, financial, technological Language Language and dialets Slangs and regional expressions Culture – formality, foreign terms
- 24. Process Localization Aspects toAddress Strategic Processes Marketing • Market Intelligence • Market Positioning • Product Management Operational Processes Marketing Communication Sales Channel Management Product Development and Maintenance Services Customer Support PEOPLE PROCEDURES TOOLS OBJECTIVES
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- 26. Roadmap to theWorld Evaluate the potential markets. Identify the opportunities Make thorough SWOT analyses Map potential markets for the short, medium and long terms Analyze and learn about target markets Establish long-term strategies. Prepare short-term action plans Establish a foundation for internationalization – adequate products and processes Adjust the focus – Requirements x Opportunities Define strategies for your first incursions Presentation and development of your brand Establishment of channels for sales and services Localization of products and processes “Operate within your circle of influence”
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