“Internationalization – you need to feel under your skin.”
DI (Danish Industry) recently reported, that investigations have shown, that companies driving E-Commerce and E-Export can increase income by 216% per employee. This is a huge potential – for any enterprise in Denmark; no matter what size.
When companies address to me, because they have an ambition to internationalize, then I can see, that they often target a country similar to their own:
- in language
- financial structures
- legal and economic systems
and/or
- culture
In principle there is nothing wrong with this approach, but not necessarily the country where you can make the biggest impact with your products and/or services and by that: make the highest profit.
Beyond market research, collection of all the key facts and clarification of your real chance to be successful in another market, there is a factor (the last 20% of your internationalization approach), that can make a significant difference:
I call it the “Internationalization – you need to feel under your skin” – Factor.
It is an insight into a market, that is very crucial to have in order to avoid wrong investments and getting headache.
Therefore, ensure, that you have this insight, that you can buy in by e.g. having employees, that know market and potential customers very well. Or let you advise by people with international working experience or incorporate board members with an international background, that have the competences to develop together with you a successful export strategy.
An example
Let me give you a concrete example, where I see potential in e.g. Germany for companies, that are active in IT/Digitalization industry despite of the fact, that the infrastructure and culture in Germany is not similar to ours in Denmark.
Having worked and lived in Denmark for more than 10 years, I consider myself as a proud New-Dane. Nevertheless, I can of course not ignore my roots. Being German, I am still following close German economy, political situation and society in general.
That Germany is behind in the field of digitalization is surely not a secret nor a special insight. However, when I follow daily news and discussion rounds between politicians and industry, then I can notice a clear change of mindset towards digitalization since C-19:
- Germany in general is not only aware of being behind in this area, but feels now daily what that means. E.g. during lock-down, but also now when schools are closed in a hotspot area, pupils hardly can be teached, because there is not enough hardware, hardly digital platforms nor digital schooling concepts.
- Despite of the fact, that government in a hurry has provided hundred of million Euros to boost digitalization, regions and local authorities hardly use the funding. Why? Because they do not know how or there are not enough local companies with expertise in IT/Digitalization.
So, all in all, I notice a special desperation in Germany right now, that I have not experienced in former times. First of all, because society suffers in different areas of being behind in digitalization and secondly, because they cannot tackle the situation due to too less competences in digitalization in comparison with other countries. And Germans are used to get control of whatever situation…..
The Chance
In nearly every political discussion in recent months, Denmark is named as the country Germans need to look up to and learn from. And this is new, too! I cannot remember ever, that Denmark has been so often named to be a good example Germany needs to use as a guide.
Therefore, I can only encourage Danish companies in IT/Digitalization industry to make use of the good reputation we have gained. And do not fear e.g. the lack of infrastructure in some parts. Germany is a big country – in some areas infrastructure is somehow in place; start there. Look into the plenty of opportunities; funding coffers are full. Germany is a big economy – the biggest in Europe.
I hope, that I could give you some inspiration and wish you a great start into a new week.
Karina