European ICT Market and Successful Entry into these Markets
description
Transcript of European ICT Market and Successful Entry into these Markets
consim
European ICT Market andSuccessful Entry into these Markets
Claus Traeger
consim – Consulting for International Channel Marketing
AL Invest Business Meetings – e-PMESIMO 2006 Madrid, Spain – November 7th to 12th
www.consim.de 2
consim
Market
www.consim.de 3
consim
World ICT Market by region
Source: EITO 2006 / IDC
1,9 bi €
www.consim.de 4
consim
World ICT market growth by region
Source: EITO 2006 / IDC
www.consim.de 5
consim
European ICT Market by country
Source: EITO 2006 / IDC
660 bill €
www.consim.de 6
consim EU* ICT market growth
(1997 - 2007)
Source: EITO 2006 / IDC (* excluding Cyprus and Malta)
www.consim.de 7
consim
European* ICT Market by product
• Value = € 659 bi
• HW (25%)SW (75%)
• IT (47%) TC (53%)
• 3.2% of GDP
Source: EITO 2006 / IDC
(*includes EU, N, CH, RO, BG)
www.consim.de 8
consim
WE ICT market growth by segment
Source: EITO 2005 / IDC
www.consim.de 9
consim
European IT Market by country
312 bill €
Source: EITO 2006 / IDC
www.consim.de 10
consim European IT Market annual Growth,
by country
Source: EITO 2006 / IDC
www.consim.de 11
consim
European TC Market by country
348 bill €
Source: EITO 2006 / IDC
www.consim.de 12
consim European TC Market annual Growth,
by country
Source: EITO 2006 / IDC
www.consim.de 13
consim
Vertical ICT Markets in Europe
Source: EITO 2006
www.consim.de 14
consim Trends in Europe (SW)
• SW Growth: 5,5% (05) and 5,8% (06)• Application solutions:
• ERP: upgrades, +efficiency• manufacturing, finance, retail/wholesale, business services
• CRM, SCM: upgrades, new investments• Gov., transport, utilities, healthcare, education, bus serv.
• SCM, SRM, PLM: +adoption in manufacturing• CRM: in verticals – banking and insurance• Industry specific applications: usable and attractive solutions
• finance and healthcare
• Regulatory compliance: manufacturing, healthcare and finance
www.consim.de 15
consim Trends in Europe (SW) (cont.)
• System Software:• Infrastructure: security, storage, resource mgt.• Optimization and simplification of IT Infrastructure• Business Intelligence: growth but saturation• Software Tools: Web-enabling• Open Source: important for flexibility and cost
• IT Services – growth rate 4,7%(05) and 5%(06)• Outsourcing and Management Services
• More in Northern Europe than Central and Southern Europe• Buyers: const-conscious
• Offshore competition: Eastern Europe
www.consim.de 16
consim Spain (ICT Sector)
• Economic Growth: 3,4% (05) and 3,2% (06)• Highest in the EU-Zone• Benefit: IT spending
• ITC Growth: 6,6 (05) and 4,0 (05)• IT Growth: 6,8% (05) and 6,7 (06)
• HW: recovery (PC, Laptop, Printers)• SW: Sys. Infrastructure, Application Development, Deployment
sw.• Positive Application SW: CRM, ERP, SCM, PLM
• IT Services: Outsourcing (competition)
• TC Growth: 6,5% (05) and 2,7% (06)• Fixed tel. , DSL , Mobile tel. , G3/UMTS
www.consim.de 17
consim Number of ICT companies in
Germany by revenue2
53
92
29
23
5
32
34
8
36
17
4
39
74
7
42
10
6
30
19
35
82
38
92
45
29
50
51
56
00
82
3
10
59
12
70
14
00
16
70
19
27
0
10000
20000
30000
40000
50000
1994 1996 1997 1998 1999 2000
up to 1 Mio. DM 1 to 5 Mio DM 5 to 100 Mio. DM
Source: Statistisches Bundesamt, IfM, BITKOM
84,7%
11,3%
3,9%
0,2%
% Co. Year 2000
www.consim.de 18
consim Market share of ICT SME in
Germany
Source: Statistisches Bundesamt, IfM, BITKOM
49,9
23,9
20,2
99,3
99,1
98,2
0 20 40 60 80 100
WZ 72
WZ 32
WZ 30
Companies in % Revenue in %
WZ 30 – Office technology, HardwareWZ 32 – TelecommunicationsWZ 72 – Databases, IT Services, Software
www.consim.de 19
consim Number of ICT companies in
Germany by number of employees
Source: BVIT, Bonn
11 to 2017%
21 to 5012% 6 to 10
23%
51 to 1005%
>5001%
101 to 5005%
<637%
Turnover by Employee:
± € 115.000 / year
# of companies = 50.000 > 90% of thecompanies are SME
www.consim.de 20
consim
Internationalization of SME companies
www.consim.de 21
consim
SME
Forms of Internationalization
• Direct• Branch• Company acquisition
• Indirect• “Big Players”
(e.g. IBM, SAP, MS)• Local Partner
++ --
• 100% control• Act like in home
market• Bigger margin
• Cost• Human Resources• Gain the market• long cycle
• Good entry• Image• Low cost
• Have the opportunity
• Dependence
• Existing channels• Will• Low cost
• Lower Margin• Distance to the costumer
www.consim.de 22
consim
Partnership• Local partner:
• Local presence• Market knowledge• Clients• Portfolio of Products/Solutions/Services
• Products:• Complementary• Competitors• Another segment
• Other market segments (Eastern Europe, Magreb)• Other technologies (Java, Web Services, Linux, SOA)
www.consim.de 23
consim Conditions
• Conditions:• Have Products/Services/Solutions
• Quality, International, Material
• Preparation for international markets:• Investment of resources: Human and Financial• Internal organization of the company
• Experience with indirect sales• Reference clients
• Higher probability to succeed:• Niche market / Focus• Market knowledge:
• Characteristics of the market• Competitors• Competitive advantage
www.consim.de 24
consim
European Mentality in Business (1/2)
• Serious, formal• Long time thinking Long run partnership• EU Markets = Mature Markets• Patience; Gain confidence through competence• Do what was agreed: in time! will be expected!• Send and answer post
• E-mail, fax, post
• Everybody ‘speaks’ English / ‘Portuñol’
www.consim.de 25
consim
European Mentality in Business (2/2)
• Which are the most important factors for an European Company to choose a Business Partner:
(Reseach done by an English business magazine among Managersin several European countries)
1. Reliability / Trust
2. References
3. Price
4. Technology
www.consim.de 26
consim
Presentation• Presentation of your Product / Services:
• Know your partner’s intention• ‘Personalize’ the Presentation
(tec, sales,mgt, ceo)• ‘Elevator Speech’:
• what is the product / service• what for it is used | what problem it solves• goal market | advantages for the end user
www.consim.de 27
consim
Successful Meetings & Good Business!
Thank You!
Claus Traeger
consimConsulting for
International Channel Marketing
[email protected] www.consim.de
www.consim.de 28
consim consim – Consulting for
International Channel MarketingActivities
• Find partners in Europe/L.A. according to companies’ needs• For groups and/or individual companies
• Companies preparation for international markets• Internationalization of the company• Speeches, courses, coaching, monitoring• For individual and/or group of companies
• Marketing support needed to enter the European markets• Event participation (fairs, congress)• Public Relations• Publicity• Market Research
• Additional support needed (legal, location, financing, etc.)
www.consim.de 29
consim
W.Europe Economic Background
Growth Rate GDP
0
0,5
1
1,5
2
2,5
3
3,5
4
(%) W. Europe Germany• Gross Domestic
Product (GDP):• W.Europe =
€ 9.224 billion• Germany =
€ 2.045 billion
Source: Eurostat
www.consim.de 30
consim General situation and Trends in the
ICT sector in Europe
• Demands of ICT Economic Environment• Trust of companies and investors• Companies performance
• Trends in ICT• Return on Investment (ROI)• Subjects of costs and efficiency• Optimization of existing infrastructure• Returns on passed investments
Source: EITO 2003 / IDC – update October
www.consim.de 31
consim
Negative aspects of the development
• Delay in investments in basic industries
• Unused Capacity
• Selective Demands• ROI, ‘is the new technology really necessary’
business focus
• Price war
www.consim.de 32
consim
Positive aspects of the development
• IT in small and medium size enterprises (SME)• Integration of internal systems• Integration of external systems• Outsourcing:
• Fix costs Variable costs• ‘Core competence’
• Security• eEurope 2005• National Governs• E-Health• E-Education• Basel II Agreement• E-Business: Web interface of existing applications
www.consim.de 33
consim
Long run Trends
• Off-Shore services• Price pressure• Virtualization
• Pool of decentralized resources• Performance, economy of scale, reliability, existing capacity• Integration of applications• Convergence of IT e TC
• Internet: Contend Management and paid content• Mobile computing and Wireless
• Mobile solutions (WiFi, Bluetooth)