KEY POINTS

Admittedly, when my company, Templafy, planned its expansion into the APAC market, we didnt factor a global health crisis into our strategy. Our services enable large organizations to automate compliance (both brand and legal) and increase productivity across teams, and theyve always had healthy organic interest from the region. Following extensive planning, we were due to launch our APAC headquarters out of Sydney, Australia earlier this year, when the unexpected COVID-19 pandemic hit. However, despite the odds being against us, I believe our APAC expansion has gone better than we could have ever anticipated.

Startups today are increasingly conservative with their growth endeavors, which leaves many business leaders perceiving global expansion as going against the grain. But Templafy has only experienced increasing momentum since expanding. This isnt a fluke nor is success in the APAC region unique to our business. The region boasts demographic diversity and a number of emerging markets that are undergoing a rapid digital transformation, providing ample opportunity for investment.

But that doesnt mean expansion into the APAC market is right for every organization. You must perform ample due diligence to determine if investment in this corner of the world is right for your business. That starts with developing an understanding of current innovation needs and cultural distinctions across the APAC region. And even once youve done all your homework, you must be ready for the unexpected.

Innovation is top of mind for APAC organizations

The APAC market has recently accelerated its adoption of cloud computing to meet a growing need for innovation and growth, especially with remote technologies. Cost was previously a key driver, but has become less important. There is an understanding that cloud computing not only facilitates more flexibility and personalization of product and service offerings, but also enables businesses to potentially deploy new services faster something thats become of greater interest for businesses in light of COVID-19. Companies in the region have realized that integrating cloud computing into their technology initiatives can provide benefits beyond cost savings. It can give them a competitive advantage through accelerating innovation and improving customer engagement, all of which boosts revenue.

This growing need for innovation means nearly every organization in the region is going through some form of digital transformation. CIOs and CEOs are aligned on their agendas especially as remote productivity becomes paramount. Organizations are adapting their processes for risk, procurement and governance to suit the cloud. Theyre investing in people with the necessary knowledge of engineering as well as skills in designing business focused use cases. Most importantly, they need the partnerships, products and services to accomplish successful transformation.

3 things to consider before expanding into APAC

Use the following three questions as guideposts for you and your team when planning an APAC expansion.

1. Is there organic interest or a small customer base in the region? An existing customer base or clear interest is of course helpful, but its not necessarily essential. You can also gauge interest by assessing your competition. Is there demand or a hole in the market that you can capitalize on? Ensure this next geographic endeavor is logical before moving forward.

At Templafy, we started in Europe before opening operations in the U.S. with great success. Then, we found investing early in the APAC region where we already had a small but growing customer base made the most sense. That said, the market is saturated with players, so be sure youre adequately prepared to differentiate your product or service offerings.

2. Can you commit to the culture? There are many benefits to having an office in an APAC time zone, especially if your company already has a European and U.S. presence. Business in this region is relationship-based, which means a top-level team on the ground and in the same time zone is essential for quality partnerships. A soft expansion, one without a physical office, isnt enough to build long-term relationships and credibility in this region.

Investing in the right people who are looking to build a business along with you is also crucial. At Templafy, we focus on hiring team players who think long-term and have high emotional intelligence. We hand-picked the top performers from our global offices to form part of the landing team and then hired locally. This is to retain the best parts of our Danish origins while integrating with local culture, unifying both worlds. With a top tier team in our new APAC office, we were confident that Templafy would establish a presence, build awareness and fully understand local customer needs from day one.

3. Are your strategies flexible and adaptable? This question is perhaps the most important. COVID-19 has forced us to adapt our strategy early on and reminded us of the old adage: Change is the only constant. Make sure your business is prepared to adapt to change, including remote work. Ensure your APAC employees can be productive and efficient even when they arent in the office by investing in processes, partnerships and technology to support all possible future scenarios.

Outside of a potential second wave of remote totality, approach expansion with the mindset that plans might and should change. Our plan at the beginning of the year was completely different from our current operation plans. Such adaptation may arise as you gain new regional knowledge. Countries like Australia, Singapore, Japan and India foster distinct business environments with unique cultures, customs and customer behaviors. In Singapore, it's common for employees to begin work at noon and continue later into the night. Meanwhile, in Australia, employees prefer an early start in order to have more home time in the evening hours. Your strategies need to be adaptable to these local nuances and any other obstacles that might stand in your path.

Opportune investment awaits in the APAC region

Global expansion is daunting, especially at a time when many organizations are risk averse. At Templafy, weve found the risk was worth the reward: The APAC region is full of opportunity. Organizations in the market are seeking out partners with the products and services necessary to support digital transformation and bring their businesses into the future. Consider what this opportunity could mean for your business. Are you ready to take the next step?

Kavita Herbert is Regional Director ofAPAC at Templafy

The rest is here:

How Companies Should Expand In The Asian-Pacific Market - International Business Times