Go There and See –method

Understanding Glocal BusinessGlobal + Local = GlocalIs it so simple?Variation points?Cultural aspects? People? Ilkka O. Lavas – Serial Entrepreneur

Laurea 3.3.2014 International Week

Ilkka O. Lavas

• 2 books about entrepreneurship• Partner, board member, investor

– Portfolio of 14 businesses– 10+ aquisitions done– 3 exits

• Young Entrepreneur of the year 2009 in ’Southern Finland’

• 35years, 2 boys, 1 wife, 1153 fb connections, 1035 linkedin conns, twitter @lavas

Portfolio

EXITed:

EXITed:

EXITed:

Company = Brand + Mission + Collections of People with different

motivators towards same Vision

Different Mission = Different Company

Company Etymologycompany (n.)mid-12c., "large group of people," from Old French

compagnie “society, friendship, intimacy; body of soldiers" (12c.),

from Late Latin companio (see companion). Meaning "companionship" is from late 13c.

Sense of "business association" first recorded 1550s, having earlier been used in reference to trade guilds (c.1300). Meaning "subdivision of an infantry regiment" is from 1580s. Abbreviation co. dates from 1670s.

Why understanding the people and local culture is important

Who is our customer?• Customer may be a person but also a

company. In company there is still person.

• Customer is always person with personality.

• What defines personality?

Personality of world Citizens• World Citizens = 7 216 M unique persons

– Finns 5,4M• Helsinki metropolitan area 1,3M

– You 1– UK 63,23 M

• You 1– Belgium 11,14 M

• You 1– Nederland 16,77 M

• You 1– Germany 81,89 M

• You 1– Taiwan 23,34 M

• You 1– Myanmar (Burma) 52,8 M

• Mandalay (Capital City of Myanmar) 1,23 M (Metropolitan area 1,6M)

– Customer 1

U Bein Bridge (Photo: CC kudumomo)

Reaching tourists = $$$ €€€€

• The 1.2-kilometre (0.75 mi) bridge was built around 1850 and is believed to be the oldest and longest teakwood bridge in the world

• Construction began when the capital of Ava Kingdom moved to Amarapura, and the bridge is named after the mayor who had it built.

• It features 1,086 pillars that stretch out of the water.• It is used as an important passageway for the local people and has also

become a tourist attraction and therefore a significant source of income for souvenir sellers

Don’t guess - Go there and see

Terms defined Company = Many unique personsB2C: Customer = unique person directlyB2B: Customer = unique person acting his/her role in company

Whatis

uniquein

person/you/

customer?

Photo CC PughPugh

Unique people are not thingsPeople are (and objects are not, so much):• Intentional causal agents• Perceiving back• Similar to self• Self-conscious targets• Holders of crusial but nonebservable traits• Changeable• Known with indeterminant accuracy• Intrinsic complex• Requiring explanation

Source: Social Cognition: From Brains to Culture- Susan T Fiske

Understanding local people / Cultural Due Diligence

• Sense of Self and Space (hugging, comfort zone)• Communication and Language (slang, dialects, accents,

jargon)• Dress and Appearance• Food and Feeding Habits (Muslim, Jewish, Vegetarians...)• Time and Time Conciousness (exact vs relative)• Relationships (age, gender, status, degree of kindred, wealth,

power, wisdom. Physical location of company. Cousins. School friends. )

• Values and Norms. (law, order, job titles, maslow hierarchy of needs)

• Beliefs and Attitudes (Chrisitianity, Buddhism, Hinduism)• Mental Process and Learning• Work Habits and Practices.

Managing Cultural Differences By Robert T. Moran, Philip R. Harris, Sarah Moran

Case Burma / Myanmar 2013

Burma, time trip 100years backward

• Educational System• Kinship System(family

relationships and education) & Association System (Social grouping)

• Religious System and Recreational System (leisure time)

• Political System• Economic System• Health System

Child Labour

Happy or Abused?

Child Labour

• Hunger is typical reason for working– Work has direct influence on your healthy life

• Work is meaningful

• Kids enjoy to work, maybe sometimes too much and they forget to study

• Evenings are dark, no proper light for studying• If you start to enjoy working too early, there is

a danger that you will never learn to read.

Learning by Doing = School of Life

Learning By Doing

Eläkejärjestelmä Pension System

Kindergarten

Päiväkotijärjestelmä

Päiväkotijärjestelmä

Family is important

Suvun merkitys

Suvun merkitys

Nightlife

• City is dark at 18.00, silent 21-22 and awake at 5 on morning

• No TV, no Gaming machines, no parties • Work is physical, no need for gym

Respect your Boss

Marketing expands from strong outdoor and print to digital channels

Marketingdigitalization

GSM 159 USD / monthGPRS

Labour cost competitiveness

• Burma– Kids 15 USD / month– Adults 30-60 USD / month

Automaatio

Automation is killing jobs? ORAutomation is helping people to concentrate on more challenging tasks.

agrarian culture vs industrial economy

• Job titles change a lotin 100 years

Argaari vs Teollinen vs Tietoyhteiskunta

Innovations

Innovointi

Competitionbetween brands

Brändien välinen kilpailuCompetition between brands

at Drug Store

Logistics

Logistiikka

Logistics

Handicraft is disappearingor becoming luxury

• Design is hand made• User Experience design

is still hand work• Branding cannot be automatized

Efficiency and automatic bottle washing machines will sooner or

later kill their jobs.

No-Electricity

Sähköttömyys

Sähköttömyys

Sähköttömyys

Architechture

Hygiene rules

Hygienia

GO THERE TO SEE AND LEARN. FB:ilkkaolavas @lavas www.ilkkaolavas.com