PartnerShips

When you ask more than 700 ICT companies all over Europe – both in the traditional Western economy and in the Accessions countries to EU - how they feel that their trade association have helped them becoming more effective and prosperous, they all have very few comments and very few roses to give. When you ask them about their business plans – their penetration activities and their survival strategy – they don’t have their association as an integrated part of those activities. When you ask them, of who they turn to, when they need assistance on the global market, associations are not mentioned and only in written surveys they indicates that associations have a place in their mind – but on a very low level…

The associations are simply to invisible – especially in a market where there is a need for increased information, knowledge sharing and ingenuity.

When LITTA invited me to come back here to the Baltic IT&T Conference, I decided to re-launch some previous surveys, and furthermore include a number of questions related to the companies’ demands for assistance – and especially where associations could make a difference. In December 2001 and again in June 2002 we carried out a survey to determine which issues were most critical from SME’s in relation to their globalization effort.

The answer on the original survey and the survey we conducted in January 2003 give more or less the same picture…

	December 2001	June 2002	January 2003
Assisting in PartnerSearches (one-to-one advise)	1	1	1
PartnerShips events	2	2	3
Planned participation as visitor to selected Exhibitions	3	3	2

Participation in international seminars and conferences	4	5	4
Embassy and commercial trade assistance	5	6	7
Exhibiting on an international fairs	6	4	5

Matchmaking events about venture capital and financial support to start-up companies	7	8	6
Networking initiatives	8	7	8
Trade missions	9	9	9
News media in form of articles	10	10	10

Finding international partners is not an easy task, and most companies have problems with this. Here the trade associations could easily chip in. The European Union carried out years ago PartnerSearches across Europe – a tremendous success, which unfortunately was terminated due to budget reductions. In my opinion, the associations need to re-launch this idea, and across Europe build a system for PartnerSearches and PartnerShips. The associations have the members – they have the power – the have the structure to do so.

Exhibitions have been on return for some years, but it seems that a new wave is there. The e-business has turned out not to be as profitable as everyone expected and more and more ICT companies is returning to their original core business. The Internet search and business over the net has been reduced, and old traditional and well-proven methods are now in use again. Meeting people is still the best way to do business and growing partnerships, is an excellent way to be successful.

You need to combine the above findings, with the survey shown below. This is the trend for most ICT companies who want to pursue the international opportunities^[1]…

The challenges that needed attention	May 1999 (Western economies)	January 2002 (Western economies)	January 2003 (Western economies)	Not Western economies January 2002	Not Western economies January 2003
We have difficulties in penetrating a specific market	61%	63%	58%	14%	15%
We have difficulties in penetrating markets in general	45%	43%	42%	94%	87%
We need international partners in various regions	23%	62%	67%	86%	88%
We need international partners in a specific area	22%	43%	37%	12%	11%
We need to re-thing or even develop an International Business Plan.	74%	34%	28%	7% (NA)	6% (NA)
We have difficulties in establishing a proper Partner Profile for our search for partners.	16%	20%	19%	28%	14%
We have a bad result when we participate in Exhibitions and foreign trade shows.	28%	36%	35%	78%	68%
We need an exit strategy for some of our partners.	4%	19%	13%	(NA)	(NA)
We sell direct, but have a hard time understanding the market conditions	26%	59%	45%	87%	88%
We need product enrichments in several markets in order to compete	9%	33%	27%	18% (NA)	43% (NA)

Only 15% in the accession countries have difficulties in penetrating a specific market, while the same figure in the Western European business circles is 58%. It is not because the Western companies are less prepared, less focused or has less experience – the accession countries haven’t simply not reached this level of challenges yet. We are still in the East discussing in general terms as the figures on the next question indicates. The associations need to be sharper to discuss specific target markets, products and niche segments with the members, in order to accelerate the debate and launch new meaningful activities. Question 3 and 4 simply confirms this…

Most ICT companies in the traditional Western economy have a business plan and strategy that highlights the goals and direction for the company. During decades the ICT industry have been struggling to create those and to fully understand the importance of a strategic approach to mission critical issues – a battle that have made ICT companies in the West more focused, more successful and more profitable. Most ICT companies in the transition economies and the accession states to the European Union do not have the same perspective, and do not fully grasp the reality – that doing global business is much more than just having a great idea, a great and competent group of employees or a great product. Realizing this is vital and the trade associations need to assist the local business community to understand the scope of this. When only 6% indicate that they need to re-think or even develop an international business plan it is not because they already have one – it’s because they do not see the importance.

The last 43% in the survey clearly confirms this as the group indicates that they need product enrichments in several markets in order to compete – a fact that is not necessary true. In most markets - smaller and minor adjustment is quite adequate, but without any solid arguments, plans and strategies, this is often the conclusion from an international adventure.

The ICT companies can either learn it the hard way – making all the mistakes we in the West have already done – or start learning from Best Business Practice, and the best way is to team up with companies in the West, where technology, market knowledge and insight can be shared – this is where the associations can make a difference.

There is a big difference between being a professional association and a trade association. The Baltic Region have very skilled IT professionals – and they don’t need to have an ‘ICT Professional foundation‘ to lean on – what they need is the practical issues in their daily life – assistance in PartnerShips, creation of global understanding, and practical guidelines in operation sales on the foreign markets.

It is perhaps interesting to note that in a recent survey among ICT companies in Europe the following priority or rank, was noted about the biggest frustrations in relation to business with ICT companies in the accession countries.

Needed qualities that gave the most frustrations from the European ICT Business Executives	Rank
The attitude of lack of trust and the idea that the accession countries ICT companies had much more to offer than the similar companies in the traditional Europe	1
The preparedness for a fruitful dialogue was missing. It seemed that the ICT companies expected ‘second chances’ and time to re-evaluate and re-think again	2
The momentum and speed in the process was to slow and awaiting – not the push that was expected	3
The Strategic and International Business Plans was missing, and the few that was identified was static and not a process-oriented task for the entire company	4
The messages was not clear and concise, but left the impression that lack of preparation was equal to flexibility	5

in ’Western Europe’ – all ICT companies that had participated in a similar

Some-one need to educate the ICT sector and teach them multi-cultural business conduct and expectations in the West – creating a much better in-sight and preparedness for doing real business -and a cross-border cooperation between Western ICT associations and ‘Easter’ associations is a real good idea – learn from the West – and be realistic. It is in the coming year the West that still has most to offer, with years of practice, power and valuable experiences.

Corporate, sectorial and even national branding has been a key adventure for many the past years and branding in the ICT sector is not just Marketing, PR and Certification – it is a lifestyle. Around Western Europe you see that the branding process is used as a tool to re-create the nations and individual corporation’s excellence and market strengths – combined with association and national support and focus.

In ICT companies all over the world, you will find unique qualities – otherwise they didn’t exist. And in most regions of the world you will find special structures to support, develop, and maintain those qualities. And everyone has their own special story to tell – the main challenge is to find the right message and tell it - in the right shape - to the right people - at the right time.

A recent survey made it clear that if you want to be among the leading nations, enterprises and the winners in the IT industry, it is a question of extensive profiling and increased awareness of the region, their companies, their key products, the sectors services and the organization to back it up.

Branding is an integrated part of a company and touches the enterprise’s strategy, their International Business Plans, their Customer Relationship Management focus, the marketing and PR initiatives – but most of all the staffs’ ability to perform according to the brand belief. This belief should be supported by a strong regional branding support and initiative – taking the profiling and image creation of the sector to the national level.

The idea with national branding is not to have a passive group of ICT companies that awaits incoming orders based on certification, advertising and PR – the main idea is to create a positive and open environment with a trustworthy atmosphere where it is easy and secured to buy products and services – now and in the future. Having this set-up you will also benefit in form of attracting the right partners, the right customers, the right work force, the right investors, and the right vendors – because everyone believes in the niche you have chosen to brand.

In the European and global knowledge-base economy, issues like stability, lifestyle and credibility are new parameters - elements that are underestimated in the dialogue. The demands to the modern ICT company today is to make a clear, transparent and precise picture of the capacity the organization can provide, and make it accessible in a form where the customers, vendors, investors and the outside world can understand and easily find the company – on a level where business easily can be conducted. The employee’s commitment to the corporate strategy is therefore evident in this game, in an era where globalization put heavy demands on the business’ and nations performance.

Learning from others is an excellent idea and the modern trade associations need to make a transparent and contemporary contribution to the market, by providing the insight, the knowledge and the basis for a successful sector. Branding, creations of business plans, partnerships and information is important cornerstones for the future – and linking West to East, is an unavoidable task for the future.

^[1] This survey consist of answers from 687 ICT companies in 24 different countries and hold questions regarding the problems (challenges) that the companies are facing in their globalisation effort. It is not a complete list but indicates the highest or most important issues. The survey have been re-launched with 585 answers in January 2003