INNOVATION

AND EMERGING MARKETS

PRESENTATION

OUTLINE

• WHO WE ARE

• GROWTH, INNOVATION AND EMERGING MARKETS

• EMERGING MARKETS : A CHANGING PARADIGM

• THE LINK BETWEEN INNOVATION AND EMERGING MARKETS

• HOW TO OPERATE ?

• CONCLUSIONS

WHO ARE WE?

Bertrand VIALA French citizen raised in Germany

Focused on emerging markets and innovation - strong

government relations and business intelligence background.

Government relations in the fields of

IT, Homeland Securiy (Identification, surveillance), Defence

(UAVs, optronic), Biotech, Nanotech

over 5 five years of business experience in Turkey for world wide

players

5 years experience at the French and German Ministry of Defense

Lobbying experience in DC - staff at the House of Rep / Consultant

at various lobbying institutions

Education:

•McGill University , MA Political Science, Canada - 2000

•Institut d Etudes Politiques Aix-en-Provence, MA, France- 1998

•Universitaet Konstanz, Politikwissenschaft, ECT, Germany, 1996

Fluent in Turkish, German, English

Senior Business Development Specialist

Managing Partner

EFRAN INTERNATIONAL CONSULTING

We are located in Ankara

We also have a network of permanent world class

EFRAN CONSULTING correspondents that work

in business development projects on a regional

base in:

New Dehli – India

Abidjan – Ivory Coast,

Rabat – Morocco

Baku – Azerbaidjan

A project extending:

Turkmenistan Mongolia Ethiopia Tunisia Malaysia

OUR JOB

Economic/competitive

Intelligence

Business

Diplomacy

Marketing

Strategies

GROWTHMarket

Penetration

Project

What does ‘growth’ mean for

a company?

What would be a ‘growth

company’?

Any firm whose business generates significant

positive cash flows or earnings, which increase at

significantly faster rates than the overall

economy. A growth company tends to have very

profitable reinvestment opportunities for its own

retained earnings. Thus, it typically pays little to

no dividends to stockholders, opting instead to

plow most or all of its profits back into its

expanding business.

Investopedia (Forbes Company)

IDEAL – Exple : GOOGLE

GROWTH

New

Customers

New / Updated

Products

Emerging

MarketsInnovation R&DMarketing

THE SECOND

WORLD

Parag Khanna

EMERGING MARKETS : A

CHANGING PARADIGM

TYPICAL FORM OF INTERNATIONAL TRADE STRUCTURE IN 20th

Century

Developed

Markets

3rd World

Markets

Financial power

Technology

Intra zone trade

Natural and

Agricultural

Resources

Non- Solvability

No Middle Class

Spin off

products

Natural and

Agro

Resources

EMERGING

MARKETS

The Rise of Emerging

MarketsMain characteristics

Major

disruption

Competition at

home and

foreign markets

Changing

balance of

power

Capacity to

influence and

generate

innovation

processes

More

competitive

More

adapted to

new types of

customers

Going up the ladder of

conception and design

of products

Expanding middle class

with increasing

purchasing power

A lot of needs to be

dealt with

Own industrial capacity

INNOVATION

SEARCHING FOR DISRUPTION

Innovation

Main Concepts

‘Crossing the

Chasm’ (Geoffrey A.

Moore’s)

‘Seize the white

space beyond’

(Mark W.

Johnson)

What is

innovation

about?

What is the

process at

work?

Disruptive

Innovation

(Christens

en)

New business

model

New

Marketing

Strategies

Revolutionary

Evolutionary

R&D

investment

Market and

diffuse your

innovation

Growth

ROI

The Reverse Innovation Model – Jeffrey R.

Immelt, Vijay Govindarajan, Chris Trimble

PROS CONS

Original

product

MATURE MARKET EMERGING MARKET

Heavy

infrastructure

High cost POOR SALES

Readapt

to the

marketDesign a low cost –

more user friendly –

lighter devices

New

product

NEW MARKET

OPPORTUNITY

Link between emerging markets and

innovation

Doesnt reflect totally the evolving situation of markets

themselves - when does a market stop to be emerging?

.

Provides insight about how

to maximize market

penetration

Local adaptation costs and risks – IP

rights, heavy regulations,

Example: GOOGLE in China

Doesnt detail the cost of reintroducing your

product in the mature market – especially

adaptation to quality standards.

HOW TO OPERATE?

Different

than tradingMORE COMPLEX THAN

DELOCALIZATION

Internal

R&D team

Analysis and

research on

target market

Local

R&D team

Project Design phase

SPECS

Implementation Phase

Finding

local/foreign

partners for

production and

marketing

Set up

management

team internally

Local Marketing

Sales and marketing

teams locally managed

Back to home

market

Costs can be reduced

by the use of Web2.0

applications +

Ecommerce + Utrade

Readaptation of

marketing

Quality control

and standards

Competitive

intelligence Business

Diplomacy

Marketing

Strategies

CONCLUSIONS

INNOVATION IS STILL A LEADING

FORCE IN MATURE MARKETS

ACCESS TO NEW MARKETS IS

A STRONG INCENTIVE FOR

INNOVATION

EMERGING MARKETS ARE

THE WORLDS GROWTH

POTENTIAL

BUT LET’S BE

PRAGMATIC

INTERACTION WITH EMERGING

MARKET HAVE STRONG RISKS AND

COSTS – ESPECIALLY FOR SMES

DEVELOPMENT OF NEW FORMS

OF MARKETING MAKE THESE

OPPORTUNITIES OPERATIONAL

However enthusiatic

an idea extensive

research and risk

assessment is a

priority

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