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Doing Business in China: A Framework for Success
John Chen, Sybase Chairman, CEO, and PresidentThe Berkeley MBA Asia Business Conference February 11, 2006
Agenda
About Sybase
China Today
Lessons Learned
Bumps in the Road
Outlook for the Future
2
About Sybase
Creating an Information Edge — Today
Founded in 1984
Headquartered in Dublin, CA
Leading enterprise database and mobile/wireless software company
~4,000 employees in 60 countries
Profitable and growing
Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center to the point of action.
3
Strong Local Presence in China
Beijing
ShanghaiChengdu
Guangzhou
Xi’an
Taipei
Operating in China for over 15 years ~300 employees 6 offices 3 R&D centers 24x7 local support Over 150 partners Growing presence throughout Asia-PacHong Kong
4
Strategic IT Investments in China
Sybase is working with industry, government and business leaders are on several initiatives to help China drive technology:
Digital cities High-tech industrial development zones Support of open, international, and voluntary standards Partnerships with universities to advance research and help
China migrate to a knowledge-based economy Expansion of m-Government and m-Commerce initiatives
Mobilize data for disaster relief, emergency response services, tourism, and 2008 Olympic Games
5
Sybase’s Success in China
Ranked among top 5 software companies in China #2 database company in China #1 in telecom and transportation industries 1st packaged Internet banking solution adopted by a top bank – Bank of China Recently signed strategic partner agreement with Xi’an High Tech Zone becoming its preferred software trusted advisor in mobile/wireless space Working on joint initiatives for Digital Cities and 2008 Olympics
6
Recognized for Excellence
2005 CCID Awards “Best Value for Users Award” in the Database Products category (Sybase ASE) “Excellent Product Award” (Sybase ASE) “Excellent IT Product for Small and Medium Business Award” (Sybase ASE) “Excellent IT Product in China Award” (Sybase IQ)
2004 “Gold Database” by CCID 2004 Editor’s Choice for Linux database (Open System World) and BI (China Computer World) 2004 Top 10 IT Enterprise awarded by Beijing Communications World Newspaper 2004 Excellence Award by eWeek 2004 Top 10 CTO Award by CCID & China Information Weekly 2004 Top 10 IT Communications Ladies by CCID, China Infoworld & China Women Newspaper 2002-2003 Most Successful Database Software Company in China 2003 CIO Choice Award & Best Database awarded by China Internet Weekly 2003 Top 10 IT Provider awarded by Communication World 2003 Editor’s Choice awarded by China Information World 2001-2003 Best Customer Satisfaction Award from CCID
7
China Today
Step-by-step reform
WTO accession
Migrating from a manufacturing-based economy to a knowledge-based economy
Many signs of vibrancy in China Olympics in 2008 in Beijing World Expo in 2010 in Shanghai
8
Lessons Learned
Doing business in China is harder than expected
No amount of due diligence is too much
Lack of enforcement is the rule, not the exception
Adapt and localize - “When in Rome, do as the Romans do”
Understand and participate in the political and policy landscape
9
Due Diligence
Do your homework
Know your friends, and avoid making enemies (“guanxi”)
Legal and ethical considerations
10
Lack of Enforcement is the Rule, Not the Exception
Intellectual property rights protection is a MUST
Licensing and trade secrets
Be careful: enforcement issues
Credit enforcement
11
Localization: “When in Rome,Do as the Romans Do”
Behave like a local company
View China through their eyes, not ours
Learn and respect China’s long history, philosophies culture, and traditions
Success requires adaptation; stay nimble
Proper mix of local and expatriate staff
Show understanding of local needs
12
Understand and Participate in Political and Policy Landscape
Actively engage with China, don’t isolate ourselves Free trade policies Open, non-discriminatory, and merit-based markets Anti-corruption initiatives Protection of intellectual property rights Increase US competitiveness Results of reform may be similar to that of the Marshall Plan for Europe or post-war reforms in Japan
13
Bumps in the Road
International political tensions could rise
Chinese system is still in transition; domestic tensions could be a barrier
Economic tensions between China and the West
Ideological differences
Corruption
Natural disasters
Ultimate competitor
14
Outlook for the Future
Cautiously optimistic about China’s growth; this level of growth does not come without costs
Short-term outlook – many benefits for China and Asia Long-term outlook – some cautionary flags we need to closely
monitor
Success will require collaboration, innovation, new thinking, non-traditional approaches, and risk-taking
We must navigate this historic journey together
15
Click to edit Master title styleTHE ENTERPRISE.UNWIRED.