How To Grow Globally

Transcription

1 BUSINESS MODELS FOR GROWING GLOBALLY Entrepreneur Speaker Paul Barber, CEO, Prophix Software Inc.

2 Business Models to Grow Globally Paul Barber President & CEO Prophix Software Inc.

3 Prophix Company Overview Established in 1987 as Software Distributor; Software Developer since 2000 Head office in Mississauga, Ontario, Canada No Institutional Investors $26MM+ Revenues; 160+ employees; 2,000+ Customers

4 Annual Growth Rate

5 Corporate Performance Management CPM Component Planning and Forecasting Financial and Management Reporting Financial Consolidations Profitability Modelling and Optimization Strategy Management Functionality Budgeting; rolling forecasts; multi-year plans Monthly report books; statutory reporting; variance analysis Inter-company eliminations; journal entries; multi-currency Cost analysis; product/customer profitability; allocations Scorecarding; KPIs; data visualization

6 CPM today Automating non-transactional processes in the Finance Department such as Budgeting, Monthly reporting, Mid-year forecasting, Financial consolidation, Scorecards, Operational Planning..

7 Nature of Our Business B2B Non-Vertical Mid-Market On Premise Implementation Services $75,000 Price Point

8 Software License Spend (CAD) Estimate

9 Global Presence

10 # Prophix Customers by Region

11 Prophix Business Models NA Direct One Location Process Driven Sales Model NA Channels 8 Partner Fully Engaged; 20 in Process International > 10 Years Experience Started with Partner Model

12 Why go Global? Risk Mitigation High Margin Business Corporate Branding Multinational Prospects

13 Global Business Canadian Companies Have Two Major Advantages: 1) They have an Enormous Domestic Market 2) They are Sensitive to the Rest of the World

14 Prophix International Business Model Start with Partners They Find Us Are they the Right Size? Are they in a Suitable Market? Do They Understand What We Do? Low Cost/Low Risk Partners Do Local Marketing Be Generous to Partners Partners Pay us Royalty Convert Partners to Subsidiaries Prophix Gets Controlling Interest Partner Gets Buy-Out Reassurance

15 Marketing NOT ONLY Brochures, Case Studies, Web Sites, Corporate Presentations, E-Marketing, Trade Shows, etc BUT ALSO What is Your Market? Who is Your Audience? What is Your Messaging? What Value do you Offer your Customers/Partners? Why Should They Buy from You? How Are You Different?

16 CPM market in North America > $1B Revenues > $250MM Revenues Enterprise Upper mid-market Time > $15MM Revenues Lower mid-market

17 Costs of going Global Initial Engagement Channels Infrastructure Partner Agreement Development Certification Course Development Reporting Mechanism International Partners Handbook Annual Partners Meeting

18 Myths Germans are OK with English The UK is a Great Springboard to Europe Singapore and China are Attractive Markets You can Recruit European Partners from North America If it Works Here, it ll Work There You can Translate in Canada

19 Truths Scandinavia & Benelux are OK with English Opening an Office is Very Expensive and Very Risky Every Country is Different - Economic Development is Important It s Impossible to Predict which Partners will Succeed Small Markets are Attractive Phoning is Better than

20 Global Advice Minimise Your Risk Don t Open an Office Immediately Don t Hire an Expensive Resource Understand the Markets North America is a Single Market Every Country is Different in Terms of Population, Economic Development etc. Understand the Culture The Rest of the World is not the Same as North America Mobile Phones, Not Put a Senior Person in Charge

21 Thank you. Paul Barber President & CEO Prophix Software Inc. +1(905) X 228