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Government Regulations ¡V Software vendors must assume that the regulatory environment in most Asian countries is complex (with the exception of Hong Kong and Singapore.)? Japan, Korea, China, Taiwan and India all create very confusing circumstances with their diversity. There is significant favoritism which encourages local dominant players. There are non-tarriff barriers in some nations ¡V witness the security industry in China. It all boils down to entering markets in a very different way: you can¡¦t impose your way in. Look at the experience of leading firms like Google & eBay in China ¡V it hasn¡¦t been as easy as many people expected it to be. |
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Leadership Strategies for Software Vendors |
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There are several must-haves for software vendors looking to move ahead in Asia. |
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Local Leadership. Regardless of country or strategy, the key to success in Asia is identifying, recruiting, developing and retaining very strong global leaders in each nation.? The reality is that these leaders should be locals: Japanese for Japan, Koreans for Korea, Indians for India, etc¡K. China is a different story. In this case, it should be Chinese for China, or more specifically, Mandarin speakers for China. In China, there is particularly great demand for the ¡§Tier 1¡¨ executives -? the best Chinese national to lead their organizations. This elite group is generally born in China, educated at the best schools in China and then graduates of Ivy League schools in the U.S.? However, most companies can¡¦t get these ¡§Tier 1,¡¨ native PRC Chinese, though there are a few exceptions, such as private equity firms, leading venture capital firms, investment banks, and strategic consulting firms like Mckinsey.? Are they a bargain? No. They¡¦re rapidly becoming amongst the most well-paid professionals on the planet. And the very significant demand for these people and a big shortage of them that will continue for foreseeable future. The reality is that most businesses don¡¦t need (and generally can¡¦t afford) this caliber of person. They need strategic, yet tactical, ¡§block & tackle¡¨, executives for China. They need to be able to manage upwards effectively (many Chinese nationals still face this challenge); manage across their peers, and manage their direct reports. The good news is that there are many capable Mandarin speaking professionals in Greater China today, coming from Taiwan, Hong Kong, and Singapore,? as well as returning PRC Chinese or Mandarin-speakers from Western countries.? |
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Savvy Asia Leadership ¡V There is no perfect configuration for managing Asia. Very often, nationals want to be managed independently, particularly Japan and Korea. China is increasingly becoming such an important focus nation, that the country manager can capture a higher level of CXO mindshare. Often you¡¦ll hear about an Asia Pacific region that is really Asia Pacific excluding Japan, India, and increasingly, China. The region is massive and intricate ¡V like managing north & South America. It is a unique skill to be an Asia Pacific manager. On a regional basis, the Asian manager needs to be above all else, a human ¡§cultural systems integrator¡¨.? This person must integrate the needs and vagaries of all of Asia¡¦s diverse markets. They must integrate the wide-ranging capabilities of professionals and managers with capabilities that are frequently immature relative to U.S. standards. |
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