CommercialisatiCommercialisation on

in South in South AmericaAmerica

Jairo DiazJairo DiazBusiness DeveloperBusiness Developer

jairo.diaz@gmail.comjairo.diaz@gmail.comhttp://www.linkedin.com/in/dihttp://www.linkedin.com/in/diazsazs

Twitter: Twitter: jairodjairod

ObjectiveObjective

• To share my project proposal with To share my project proposal with the audiencethe audience

• To show general information about To show general information about South AmericaSouth America

• To find partners who would be To find partners who would be interested in exploring business in interested in exploring business in South AmericaSouth America

AgendaAgenda

• Market attractivenessMarket attractiveness

• South American economiesSouth American economies

• Information about ColombiaInformation about Colombia

• Possible opportunities in the software Possible opportunities in the software marketmarket

• Closing remarksClosing remarks

What to look in a software What to look in a software start-up?start-up?

Top 3 points by Michael Cusumano*Top 3 points by Michael Cusumano*

1. Strong team1. Strong team2. Attractive market2. Attractive market3. Compelling product, service or 3. Compelling product, service or

hybrid solutionhybrid solution

*In his book The Business of Software*In his book The Business of Software

Attractive MarketAttractive Market

When the market grows most people When the market grows most people win:win:

• The Property Market: 1990 – 2005The Property Market: 1990 – 2005

• The Stock Market: Mar 09 – Sep 09The Stock Market: Mar 09 – Sep 09

Attractive MarketAttractive Market

• An attractive market brings An attractive market brings more more profitsprofits::

Earnings or Profits = Revenues – CostsEarnings or Profits = Revenues – Costs

Attractive MarketAttractive Market

• An attractive market is:An attractive market is:

Large enoughLarge enough

Growing fast enoughGrowing fast enough

Structurally attractive (i.e. no Structurally attractive (i.e. no competition)competition)

Advanced vs. Emerging Advanced vs. Emerging economieseconomies

Examples from the Internet Examples from the Internet IndustryIndustry

• Facebook reached 300 million users.Facebook reached 300 million users.– 70% is outside the U.S.70% is outside the U.S.

• Google users are: Google users are: (source Alexa.com)(source Alexa.com)

– 37.3% U. S.37.3% U. S.– 9.4% India (emerging)9.4% India (emerging)– 3.7% Brazil (emerging)3.7% Brazil (emerging)– 3.5 % Germany3.5 % Germany– 3.5% China (emerging)3.5% China (emerging)

Examples from Ireland to Examples from Ireland to ColombiaColombia

• Software Product/ServiceSoftware Product/Service– HostelWord, Infacta, Prime Carrier, HostelWord, Infacta, Prime Carrier,

Cicero NetworksCicero Networks

• MedicalMedical– Clearstream TechnologiesClearstream Technologies

• EducationEducation– University of Galway, Cork, Limerick, University of Galway, Cork, Limerick,

Dublin and smaller language institutesDublin and smaller language institutes

South South America at America at a Glancea Glance

South AmericaSouth America

• ArgentinaArgentina

• BrazilBrazil

• ChileChile

• ColombiaColombia

• EcuadorEcuador

• VenezuelaVenezuela

South American EconomiesSouth American EconomiesCountryCountry RankinRankin

ggGPD 08GPD 08(billion)(billion)

Growth Growth 20102010

PopulatioPopulationn(million)(million)

ArgentinaArgentina 2424 326326 0.70.7 39.539.5

BrazilBrazil 1010 15721572 2.52.5 191.6 191.6

ChileChile 4646 169169 33 16.616.6

ColombiaColombia 3838 240240 1.21.2 4444

VenezuelVenezuelaa

3131 319319 -0.5-0.5 27.527.5

IrelandIreland 3434 273273 -3-3 4.34.3

Latin American EconomiesLatin American Economies

CountryCountry ImportImportss(billion)(billion)

% GDP % GDP ServiceServicess

% GDP % GDP IndustryIndustry

% GDP % GDP AgricultuAgriculturere

ArgentinaArgentina 5454 57.457.4 32.732.7 9.99.9

BrazilBrazil 173173 6666 1414 2020

ChileChile 5757 44.744.7 50.550.5 4.84.8

ColombiaColombia 3737 52.952.9 38.138.1 99

VenezuelVenezuelaa

4848 58.658.6 37.637.6 3.83.8

IrelandIreland 8080 4949 4646 55

ColombiaColombia

ColombiaColombia

• Colombia has been economically and Colombia has been economically and politically stable for the last 5 years.politically stable for the last 5 years.– Growth rates: 5.7 (05), 6.8 (06), 7.6 Growth rates: 5.7 (05), 6.8 (06), 7.6

(07), 2.5 (08) (07), 2.5 (08)

• Top three investorsTop three investors– U.S. (24%)U.S. (24%)– Spain (12%)Spain (12%)– U.K. (10%)U.K. (10%)

The Five RegionsThe Five Regions

• CaribbeanCaribbean– The Beach and SunThe Beach and Sun

• PacificPacific– The rainThe rain

• The AndesThe Andes– The mountainsThe mountains

• The AmazonThe Amazon– The ForestThe Forest

• The OrinocoThe Orinoco– The cowboys The cowboys

Major Cities in ColombiaMajor Cities in Colombia

1.1. Bogota – 6.8 m*Bogota – 6.8 m*

2.2. Medellin – 2.2 mMedellin – 2.2 m

3.3. Cali – 2.1 mCali – 2.1 m

4.4. Barranquilla - 1 Barranquilla - 1 mm

Size: 5 times the Size: 5 times the U.KU.K

*Population in millions*Population in millions

Treaties and taxation Treaties and taxation agreementsagreements

Service Opportunities Service Opportunities ((McKinsey)McKinsey)

• SoftwareSoftware• IT ServicesIT Services• Medical TourismMedical Tourism• CosmeticsCosmetics• Home AppliancesHome Appliances• AutomotiveAutomotive• PharmaceuticalPharmaceutical• Source: Source: http://http://

www.investincolombia.com.cowww.investincolombia.com.co// • More opportunities available More opportunities available

Information Information TechnologyTechnology

Information Technology Information Technology StatisticsStatistics

• Internet UsersInternet Users– 18.2 million (40% of population)18.2 million (40% of population)

• Mobile phone penetrationMobile phone penetration– 39.7 million (90.2% of population) 39.7 million (90.2% of population)

• Mobile Internet UsersMobile Internet Users– 3.6 million (8.18 %)3.6 million (8.18 %)

• Source: Source: http://http://www.crcom.gov.cowww.crcom.gov.co//

Colombia is major investor Colombia is major investor in ITin IT

Software Sector in ColombiaSoftware Sector in Colombia

Three segments. Two Targets.Three segments. Two Targets.

Infrastructure (Opportunities: Security)Infrastructure (Opportunities: Security)

Applications (Opportunities: SaaS)Applications (Opportunities: SaaS)

Development (Local services)Development (Local services)

Infrastructure SegmentInfrastructure Segment

Applications SegmentApplications Segment

Benefits of Benefits of InternationalisationInternationalisation

• Grow your company’s revenuesGrow your company’s revenues

• Today, you can get access to foreign Today, you can get access to foreign markets without the need to travel markets without the need to travel (use IT)(use IT)

• Not necessarily an expensive Not necessarily an expensive propositionproposition

• You can get Enterprise Ireland support You can get Enterprise Ireland support and grantsand grants

Roadmap Roadmap

• Check the business model in IrelandCheck the business model in Ireland

• Research conditions in South AmericaResearch conditions in South America

• Expand the business model to new Expand the business model to new marketmarket

• Identify key assumptions to testIdentify key assumptions to test

• Execute a prototypeExecute a prototype

• If successful then scale upIf successful then scale up

• Develop a Partnership ProgrammeDevelop a Partnership Programme

Early projectsEarly projects

• Talking to Irish companies with Talking to Irish companies with established partnership programsestablished partnership programs

• Checking a business model for Checking a business model for successful web application in Irelandsuccessful web application in Ireland

• Open to evaluate other opportunities Open to evaluate other opportunities before travelling homebefore travelling home

What opportunities What opportunities can we think about?can we think about?

Jairo DiazJairo Diaz

Business DeveloperBusiness Developer

• jairo.diaz@gmail.comjairo.diaz@gmail.com

• Twitter: Twitter: jairodjairod

• http://http://www.linkedin.com/in/diazswww.linkedin.com/in/diazs