Challenges and opportunities for Finnish companies

targeting Global Markets

Digia Inc.Jari Mielonen

CEO

October 17th/20th 2003

© 2003 Digia and Digia-based marks and logos are registered trademarks of Digia Inc. All other trademarks are the property of their respective owners.

Agenda

Digia Inc. – The Company Three Strategic Options Strategic Focus Decision-making in Digia Approaches to Internationalisation Networking and Partnering Decision Framework Entry Modes to International Markets Key Success Factors Closing Comments

Digia Inc.

is the recognized leader and software integration partner in developing Symbian™ OS Smartphones

Three Strategic Options

Three Distinct Strategic OptionsCompetition Based on System Economics:Complementor lock-in, competitor lock-out,proprietary standard

System Lock-In

Best ProductCustomer Solutions

Competition Based onProduct Economics:Low cost or differentiated position

Competition Based onCustomer Economics:Reducing customer costs orincreasing profits

Strategic Focus

Focus defines: Value chain position Competence stack Business segment Customers Partners Business model Profitability levels

It usually leaves out: Growth planning Internationalisation Scalability

Case Digia

Decision-making in Digia

Key process

Corporate governance Fact based management

Business case (planning) P/L and profitability statements Investments needed Risk mapping

CORE target setting Clear execution responsibilities Assessments Feedback

Case Internationalisation

-customer relationships-key partners-local support needed-licensing / consulting-scheduling-planning-value chain position-competition-risk management-economical infra-investment breakeven

Approaches to Internationalisation

Networking and Partnering

Networking model of internationalisation

From key actors into partners

Defined by value in technology architecture

Interorganisational relationships

Complementary competence Partners Business model has to

support Seldom works in proprietary

Case Digia

Decision Framework

Entry Modes to International Markets

Choosing the right entry mode for the business is critical You can either burn cash, your trustworthiness and relationships or do

it with disciplined and incremental process with managed risk What ever you do make sure you have a business case Indirect investment or direct investment – that is the question Licensing your technology or franchising your business idea may test

the essential components in the new market before committing more

Key Success Factors

Timing is everything Make a decent prestudy – it is your life insurance Use partners and networking to find out the details

as they are in real life Do not believe story telling, operationalise yourself Keep focus on

Business model Customers Profitability

Adapt the execution according to your capabilities Internationalise by increments Take care of the brand image

Closing Comments Challenges

Small economy syndrom Keeping business and technology aligned Managing your EBIDTA figures Scheduling versus activities Finding the right personalities to fight in the forefront

Opportunities Finns are straight forward and honest – trust business Niche specific scalability and increasing returns Virtual delivery channel and sales (networking / division of

work) Global customers, local business - global sales, local

production

Thank You !

Digia Inc. designs and develops Symbian™ OS based software for mobile phone manufacturers world-wide. Digia utilizes its extensive experience and technology competence in helping device manufacturers to create and bring their products into the market on time and cost efficiently. Digia works to build a wireless future with its investors, including e.g. Bayview 2000, Cisco Systems, Eqvitec Partners, General Electric, Intel, Investor AB, Sonera and Sony. For more information: www.digia.com

© Digia and Digia-based marks and logos are registered trademarks of Digia Inc. All other trademarks are the property of their respective owners.