Explore and Exploit Explore and Exploit – – Developing an Developing an International Business International Business Professor Alan Professor Alan Barrell Barrell – – Entrepreneur in Residence Entrepreneur in Residence – – Centre for Centre for Entrepreneurial Learning Judge Business School Cambridge, Xiamen Entrepreneurial Learning Judge Business School Cambridge, Xiamen University Fujian, China University Fujian, China and and Laurea Laurea University of Applied Sciences University of Applied Sciences Helsinki. Chairman NHS Innovation Council Helsinki. Chairman NHS Innovation Council – – East England East England Experiences with Willett Experiences with Willett International Ltd International Ltd From zero to From zero to £ £ 100millions and 100millions and Business in 100 Countries Business in 100 Countries and some reflections on opportunities TODAY and some reflections on opportunities TODAY
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Explore and Exploit Explore and Exploit –– Developing an Developing an International BusinessInternational Business
Professor AlanProfessor Alan Barrell Barrell –– Entrepreneur in Residence Entrepreneur in Residence –– Centre for Centre for Entrepreneurial Learning Judge Business School Cambridge, XiamenEntrepreneurial Learning Judge Business School Cambridge, Xiamen
University Fujian, ChinaUniversity Fujian, China and and LaureaLaurea University of Applied Sciences University of Applied Sciences Helsinki. Chairman NHS Innovation Council Helsinki. Chairman NHS Innovation Council –– East EnglandEast England
Experiences with Willett Experiences with Willett International LtdInternational Ltd
From zero to From zero to ££ 100millions and 100millions and Business in 100 CountriesBusiness in 100 Countries
and some reflections on opportunities TODAYand some reflections on opportunities TODAY
A PreviewA Preview
••My International life today My International life today –– and the context of the and the context of the World today and tomorrow World today and tomorrow –– opportunities to opportunities to
Explore and ExploitExplore and Exploit
••Experiences from a past life Experiences from a past life –– Willett International Willett International –– from zero to from zero to ££100 millions and business in 100 100 millions and business in 100
countriescountries
••Lessons learned and some thoughts for further Lessons learned and some thoughts for further discussiondiscussion
Promoting beliefs in Promoting beliefs in ““Open InnovationOpen Innovation”” ““A World Without A World Without Borders Education Without Borders and Business Without Borders Education Without Borders and Business Without
BordersBorders””
Some of the Some of the ““Hats I wearHats I wear”” (or have worn)(or have worn)
And ALWAYS And ALWAYS –– ““in and aroundin and around”” thetheNHS and industry serving it. Cambridge Healthcare Ltd
12 years in Industrial 12 years in Industrial electronics electronics –– DOMINODOMINO plcplc
5 Years in Venture Capital 5 Years in Venture Capital –– Cambridge Gateway Cambridge Gateway
FundFundBacTestBacTest LtdLtd
Global Dynamics Global Dynamics –– where is a lot of the positive where is a lot of the positive change happening ?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….
Dancing with The DragonDancing with The Dragon…….more to China than .more to China than EconomicsEconomics
Lets put MODERN CHINA and HONG KONG into our Lets put MODERN CHINA and HONG KONG into our picture and contextpicture and context……..SomeSome of Chinaof China’’s Achievements s Achievements ––
Entrepreneurs have been involvedEntrepreneurs have been involved• Compound growth of GDP at 9% since 1995, 2nd 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 2010 – 20%
of all the World’s growth occurred in China• But uses 50% of the Worlds coal• Cash Reserves – US$ 2.75 Trillions
ChinaChina’’s Provinces s Provinces –– Prediction for 2020 Prediction for 2020 –– Provinces GDPs Provinces GDPs will equal many Nations will equal many Nations
Changes in Industrial Structure - UK% of Total Employment - UK Government Foresight Report 2001
0102030405060708090
100
1971 1981 1991 2001 2011
Manufacturing
All Services
Changes in Industrial Structure - Europe% of Total Employment
危机Take your pickTake your pick…….the world will be .the world will be
what we make itwhat we make it…….Opportunities to .Opportunities to grow international businessesgrow international businesses……..
A World of OPPORTUNITYA World of OPPORTUNITY
Can be A WORLD WITHOUT Can be A WORLD WITHOUT BORDERSBORDERS
Education Education Without Without BordersBorders
Business Business Without BordersWithout Borders
SO SO -- PleasePlease……..LetLet’’s IMAGINE s IMAGINE –– and Think and Think PositivelyPositively……..
Einstein on IMAGINATIONEinstein on IMAGINATION……..
““Imagination is more important than Imagination is more important than knowledge. Knowledge is limited. knowledge. Knowledge is limited. Imagination encircles the worldImagination encircles the world””
Albert Einstein 1879 Albert Einstein 1879 –– 19551955
“You look at things and ask - why?
but I dream of things that never were and
ask -
George Bernard Shaw
why not?”
Taking the thoughts a step further….Entrepreneurs can make a BIG Entrepreneurs can make a BIG
DIFFERENCEDIFFERENCE
Philips & Philips & HiTechHiTech Campus Eindhoven Campus Eindhoven ––The Age of Open InnovationThe Age of Open Innovation
““Brain CirculationBrain Circulation”” –– for joined up for joined up thinking and livesthinking and lives
“Brain Circulation Across Borders and Functions”
“Open Innovation Thinking”
Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein
7
What Innovation is NOT and What Innovation is NOT and unlikely to help business unlikely to help business
growth. growth.
Here is Albert againHere is Albert again……..more words ..more words of wisdomof wisdom
Going International Going International –– The The Willett Willett International LtdInternational Ltd ExperienceExperience
• Why ? – go international ?• When?• How?
• The questions we asked ourselves….• The story as it unfolded….
Going International Going International –– From start up to From start up to ££100 100 millions millions –– Case StudyCase Study
No No ““Rocket ScienceRocket Science””Perspiration and PersistencePerspiration and Persistence
Trust and Respect for People Trust and Respect for People –– including Partnersincluding Partners
Thought processesThought processes
TimingTiming
SequencesSequences
PlanningPlanning
MarketingMarketing
FinancingFinancing
PeoplePeople
Learning by Doing Learning by Doing –– and mistakesand mistakes
Finding the best advisors and partnersFinding the best advisors and partners
Willett’s BusinessCoding and Labelling
Willett’s BusinessCoding and Labelling
Life Cycle Life Cycle -- equipment & consumablesequipment & consumablesIndustrial Ink Jet PrintingIndustrial Ink Jet Printing
TIME
SALE
S
Equipment Consumables
Willett International Ltd Willett International Ltd --19881988
• 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
- UK - North America - South America- India - China
Willett International Ltd Willett International Ltd -- 19981998
Willett International Ltd Willett International Ltd -- Things that Things that happenedhappened
Coding and Labelling and InternationalGrowth and Success – achieved by
Ordinary People
“Dreaming of things that never were…?”
Product Life Cycle Product Life Cycle –– UK UK trends trends -- WillettWillett
Innovation Growth Maturity Saturation and decline
£
Time
Sales
ProfitsProfits
‘‘NewNew’’ and and ‘‘oldold’’ productsproductsExtending Life Cycle Extending Life Cycle –– by Export and by Export and
InternationalisationInternationalisationInnovation Growth Maturity Saturation and decline
£
Time New marketentry
0
Extension
Sales
ProfitsProfits
Poor UK Poor UK market market position position and size of and size of UK marketUK market
Impact of Impact of entry to new entry to new country country marketsmarkets
Willett International Ltd Willett International Ltd –– A A new Strategy new Strategy -- 19901990
• 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 ?...........
Overseas Entry Overseas Entry -- scale of options we scale of options we considered considered –– ““the how tothe how to””
Full Service Subsidiaries
Branch Offices
Joint Ventures
Alliances/Partnerships
Full Service Distributors
VARs
Dealers
Agents
ManfReps
Do Nothing
Inve
stm
ent a
nd R
esou
rces
Deg
ree
of C
ontr
ol
Questions we asked:-How to assess risk?Where is the greatest risk on the scale?What about the margin?
Going International– Key Words beyond “Agreements” “TTR”
• TRUST !!
• TRANSPARENCY
• RELATIONSHIPS
• CULTURAL UNDERSTANDING – not “lip service”
Manpower/People Manpower/People –– Things we Things we thought aboutthought 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.
Willett International LtdWillett International LtdGrowth in personnelGrowth in personnelPeople
Finding partners Finding partners -- the searchthe 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!
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
Key characteristics of partners Key characteristics of partners beyond beyond the the WillettWillettDistributor ProfileDistributor Profile –– what we looked forwhat we looked for
• Commitment of principals• Cultural compatibility• Commercially sound - 5-10 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
Getting the best from partnerships
• Distributors should work as ‘our people’• Best practices for marketing, sales and service• Measurement and review follow planning
Establishing a joint understanding of the market Establishing a joint understanding of the market opportunityopportunity
• Development of a business plan and a sales forecast
• Programme of visits, follow-up training and review meetings
• Joint promotional programme
Training distributors and staffTraining 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
The inclusiveinclusive approachat 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!!
Critical principle
Willett top management
Distributor principals
• Delegate the detail• Don’t delegate the business relationship
Willett GroupWillett GroupEvolution of worldwide distributor business Evolution of worldwide distributor business –– aspects of resultsaspects of results
NEW DEALNEW DEALpartnershippartnership
approach startedapproach started
Time
Mill
ions
£
1993 1994 1995 1996 1997
1m1m
12m12m
Willett SalesWillett Salesin in ££ Millions Millions –– some problems some problems
So So –– what went wrong in that last year ?what went wrong in that last year ?
External ChallengesExternal ChallengesCurrency fluctuation Currency fluctuation –– big problem in those days. big problem in those days. Where are your sales and costs Where are your sales and costs –– where do you where do you
consolidate and report results ?consolidate and report results ?Willett had 94% of business outside UKWillett had 94% of business outside UK
50
40
30
20
10
0
-10
March 1996 Sept 1997
Recent fluctuations
DollarYenFrancDeutchmark
Willett Group late 1990s Willett Group late 1990s ––when we sold itwhen 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 !
A blend of skills and experience A blend of skills and experience –– running an running an international company international company –– what we aimed at.what we aimed at.
Vision andPurpose
Reward & recognition systems
Team spirit & teambuilding/team work
Knowledge &learning facilitation
Technology & productdevelopment &
management
Firm financialmanagement
Internationalmarketing & business
development
Measures & accountability
Inspiredleadership
Clear objectives
Common culture &shared values
Good managementpractices
Cleardirection
In In Pursuit of of Excellence ! Excellence ! –– Final ThoughtsFinal Thoughts
““Excellence can be achieved, if we:Excellence can be achieved, if we:Care more than others think is wise,Care more than others think is wise,Risk more than others think is safe,Risk more than others think is safe,
Dream more than others think is practical,Dream more than others think is practical,Expect more than others think is possibleExpect more than others think is possible..””
Deborah JohnsonDeborah Johnson--RossRoss
“A World Without Borders” – a good mindset for a growing Business
