BerkeleyABC John Chen Keynote

Doing Business in China: A Framework for Success: 

Doing Business in China: A Framework for Success John Chen, Sybase Chairman, CEO, and President The Berkeley MBA Asia Business Conference February 11, 2006

Agenda: 

Agenda About Sybase China Today Lessons Learned Bumps in the Road Outlook for the Future 2

About Sybase: 

About Sybase Creating an Information Edge — Today Founded in 1984 Headquartered in Dublin, CA Leading enterprise database and mobile/wireless software company ~4,000 employees in 60 countries Profitable and growing Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center to the point of action. 3

Strong Local Presence in China: 

Strong Local Presence in China Beijing Shanghai Chengdu Guangzhou Xi’an Taipei Operating in China for over 15 years ~300 employees 6 offices 3 R&D centers 24x7 local support Over 150 partners Growing presence throughout Asia-Pac Hong Kong 4

Strategic IT Investments in China: 

Strategic IT Investments in China Sybase is working with industry, government and business leaders are on several initiatives to help China drive technology: Digital cities High-tech industrial development zones Support of open, international, and voluntary standards Partnerships with universities to advance research and help China migrate to a knowledge-based economy Expansion of m-Government and m-Commerce initiatives Mobilize data for disaster relief, emergency response services, tourism, and 2008 Olympic Games 5

Sybase’s Success in China: 

Sybase’s Success in China Ranked among top 5 software companies in China #2 database company in China #1 in telecom and transportation industries 1st packaged Internet banking solution adopted by a top bank – Bank of China Recently signed strategic partner agreement with Xi’an High Tech Zone becoming its preferred software trusted advisor in mobile/wireless space Working on joint initiatives for Digital Cities and 2008 Olympics 6

Recognized for Excellence: 

Recognized for Excellence 2005 CCID Awards “Best Value for Users Award” in the Database Products category (Sybase ASE) “Excellent Product Award” (Sybase ASE) “Excellent IT Product for Small and Medium Business Award” (Sybase ASE) “Excellent IT Product in China Award” (Sybase IQ) 2004 “Gold Database” by CCID 2004 Editor’s Choice for Linux database (Open System World) and BI (China Computer World) 2004 Top 10 IT Enterprise awarded by Beijing Communications World Newspaper 2004 Excellence Award by eWeek 2004 Top 10 CTO Award by CCID & China Information Weekly 2004 Top 10 IT Communications Ladies by CCID, China Infoworld & China Women Newspaper 2002-2003 Most Successful Database Software Company in China 2003 CIO Choice Award & Best Database awarded by China Internet Weekly 2003 Top 10 IT Provider awarded by Communication World 2003 Editor’s Choice awarded by China Information World 2001-2003 Best Customer Satisfaction Award from CCID 7

China Today: 

China Today Step-by-step reform WTO accession Migrating from a manufacturing-based economy to a knowledge-based economy Many signs of vibrancy in China Olympics in 2008 in Beijing World Expo in 2010 in Shanghai 8

Lessons Learned: 

Lessons Learned Doing business in China is harder than expected No amount of due diligence is too much Lack of enforcement is the rule, not the exception Adapt and localize - “When in Rome, do as the Romans do” Understand and participate in the political and policy landscape 9

Due Diligence: 

Due Diligence Do your homework Know your friends, and avoid making enemies (“guanxi”) Legal and ethical considerations 10

Lack of Enforcement is the Rule, Not the Exception: 

Lack of Enforcement is the Rule, Not the Exception Intellectual property rights protection is a MUST Licensing and trade secrets Be careful: enforcement issues Credit enforcement 11

Localization: “When in Rome,Do as the Romans Do”: 

Localization: “When in Rome, Do as the Romans Do” Behave like a local company View China through their eyes, not ours Learn and respect China’s long history, philosophies culture, and traditions Success requires adaptation; stay nimble Proper mix of local and expatriate staff Show understanding of local needs 12

Understand and Participate in Political and Policy Landscape: 

Understand and Participate in Political and Policy Landscape Actively engage with China, don’t isolate ourselves Free trade policies Open, non-discriminatory, and merit-based markets Anti-corruption initiatives Protection of intellectual property rights Increase US competitiveness Results of reform may be similar to that of the Marshall Plan for Europe or post-war reforms in Japan 13

Bumps in the Road: 

Bumps in the Road International political tensions could rise Chinese system is still in transition; domestic tensions could be a barrier Economic tensions between China and the West Ideological differences Corruption Natural disasters Ultimate competitor 14

Outlook for the Future: 

Outlook for the Future Cautiously optimistic about China’s growth; this level of growth does not come without costs Short-term outlook – many benefits for China and Asia Long-term outlook – some cautionary flags we need to closely monitor Success will require collaboration, innovation, new thinking, non-traditional approaches, and risk-taking We must navigate this historic journey together 15

Click to edit Master title style: 

Click to edit Master title style THE ENTERPRISE. UNWIRED.