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

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