In an active project at the moment, I’m assisting a client company in their Internationalisation plans and helping them enter the Middle Eastern Healthcare markets. So Maidsfield is identifying and opening the doors to their best-fit System Integrator or Support Partners. [Sometimes called: VARs (Value Added Resellers), Implementers, Channel Partners, Solution Providers, Dealers, Agents, ISVs (Independent Software Vendors).]

In analysing the specific markets, on first looks, the competitors are diverse companies that seem to have responded to opportunities on the edge of the core industry domain expertise. Basically the companies don’t seem to specially focus on Healthcare but have delivered projects into the sector. So, should we consider them as competitors?

In some cases the perceived competing System Integrator companies have partnered with competing product companies and implemented their product into the market. In other cases they seem to have developed their own. There is only so much you can tell from reading their websites and searching the news items. There is only so much reading between the lines you can do with Middle Eastern companies; the lines are few. They haven’t adopted the active and open web communications to the same level as Irish companies yet, or to that of many other western markets.

The scenarios, to be validated, could be as follows (note: I’m an optimist first, but a simple phone call can verify the scenarios, nothing ventured etc etc):

1) The Perceived Competitors have gained some exposure into this market but haven’t yet started to really push it as a real opportunity. With the right product and specialist partners with the relevant track record, who is serious about tackling the market, they may be ready to move and use their connections and expertise to build a new business stream.

2) The Perceived Competitor’s solution may compete with one of your products, but they have room for your other products and would appreciate the opportunity to sell more to the same or related markets.

3) The Perceived Competing System Integrator is focussed on making money not developing solutions, so if you present them with a bigger and better opportunity within their local markets and demonstrate the commitment to supporting them, they may be interested.

4) The Perceived Competitor doesn’t have a product at all, but technologies and capabilities. They may even be only communicating their interest to move into this market but haven’t established themselves yet. If you can present them with a strong solution, committed support, faster deal turnaround, better margins and happier customers, then they may be interested.

OK, maybe they are competitors, but they will be very quick to tell you this, once you get them on the phone. So be ready, but don’t give in too easy.

Maybe their first impression of you is that you are a direct competitor but any of the above may apply. Seek out the opportunity to talk at length with them to learn about their market. If they compete, try to find out how important this sector is to them, if they have a specialist division within their company for this sector or whether they see it as a growing or stagnant market. Start with the soft questions and dig a little deeper each time. It’s just a conversation. Equally, be willing to open up a little to what your company is doing. If you compete, so what, just compare notes.

more on this later…DK

I’ve never been to a BizCamp but heard great things about how it works. Thanks for heads up Fran. I’m registered. http://www.bizcamp.ie

The event is on all day on Saturday, Sept 19th in the Guinness Storehouse, Dublin.

From the adhoc description of what I heard, it sounds like a free-for-all, speakers everywhere and people can go to what they want to hear.

They have a video of what happened last March – RTE News footage.
http://www.bizcamp.ie/2009/07/rte-coverage-of-the-last-bizcamp/

Where the industry can share experiences and help each other, it’s a worthy event for me.

With Ireland being such a small market, many start-up software companies start with internationalisation in their plans. Many make moves internationally too soon or with too little knowledge and experience of making their business a success in their initial markets. I’m not referring to any lack of business knowledge or experience of the management team, but to the fact that it takes time for businesses to learn what really works for the business.

Many successful international Irish CEOs would give some variations on this advice about going international:

1. Understand what it is to sell and deliver your offering in your initial market first before considering going international.
The challenges in doing business in a new market are sufficient enough without having to learn the basic lessons in how to communicate, sell, deliver and support your offerings as well. You need to be building on the strong track record of your initial market to be credible in your first internationally market. You should really know your Value Proposition for your target market.

2. The business should understand its key business processes.
I’m not talking about becoming over corporate or bureaucratic but simply that everyone in the business has the same understanding of how things are done. When it gets busy, does your business operate efficiently through a series of processes or does it over depend on too few people?

3. Do you really know your target international market?
Is the buyer’s ‘Customer Journey’ the same as in your initial market? Do buyers value the same things? Does the competitive landscape in this market negate your current Value Proposition? Do a ‘Value Map’ with the market’s buying criteria comparing you against your competitors for your specific target market. Validate your assessment with prospective clients in your new market, as market research.

4. Leverage of your existing customers successes.
Can some or one of your existing customers bring you into your target international market? Do they have a sister or associate company that they could refer you into? Gaining a reference customer in the market is great start.

5. Focus on getting your beach-head customer so limit the number of target customers to get started.
Don’t go chasing 20 prospective target customers to get started. It takes time to understand the needs of 20 companies and build relationships with the decision makers. It’s better to really focus on the ones that you know you can deliver real value to and make it easy for them to buy. Get a little business from them and then build on it. Meanwhile don’t lose focus on continuing to build success in your initial market.

6. A local presence in the market is not always necessary but helps.
It depends on your product or service on whether you need a local team to sell, deliver or support your offering. This could be achieved with local support partners who are also gaining business from the sale. There are many different types of partners that might suit; it depends on your business. The selection of the right type and best-fit partners is a key component of what Maidsfield offer in its services to Irish software companies.

7. Should you Sell Direct or through Partners?
Selling direct is faster, more expensive and of greater risk. Going through Partners is slower, much less expensive and much more cautious, as long as you pick the right partners to suit your business objectives. A hybrid model would be that you sell direct with the support of a local support partner. This way you get the local knowledge and maybe delivery and after sales support from the partner but you bring the domain expertise to close the sale. Maidsfield provide services in identifying and opening doors with the best-fit partners for your business.

There are many variations within the points above depending on your particular business but the principle are basically the same.

It would be interesting to hear stories of first-time internationalisation experience…..please share stories, questions or comments.