Infoactiv - Case Study

Helen Jarman founded Infoactiv in 1999 to realise her passion for helping businesses think differently about procuring, designing and fulfilling their supply chain and sustainability needs. The company started as a logistics and transportation solutions provider and soon grew its operations to become a leading independent provider of supply chain design and technology, lean process management, strategic sourcing and advisory services. Today, Infoactiv supports users in 17 countries across the Asia Pacific region.

Infoactiv moved into India in 2010, capitalising on its work with IBM Australia for the procurement, forecasting, deployment, management and end of lease disposition for IT assets for Cisco. The company's Indian launch strategy focussed on ECOACTIV, its product stewardship and environmental product recovery solution – a smart move in a country where about 800,000 tonnes of e-waste is generated every year.

India proved to be the best location for the supply of services and for its customers,
as well as offering a cost advantage compared to Australia. The country was well positioned to support the organisation not only across the Asia Pacific, but also as a centralised operations location for Infoactiv's global programs. Specifically, the company opted to set up in Bangalore due to its established reputation as a hub for IT development.

By taking measured steps to earn the trust of its clients, Infoactiv has found success in a highly complex and competitive environment. Its customers now include IBM, Symantec, WIPRO and ELCITA (Electronics City, Bangalore).

Key learnings

  • Engage trusted local partners - The groundwork to kick-start a business in India begins
with identifying and engaging trusted local partners. Infoactiv developed relationships with knowledgeable and dependable partners to help guide its entry into the country.
  • Build strategies for a long-term presence in India - There is no short cut to success in India: strategic planning is vital. Investment in India should not be driven solely by short-term profit. By being patient and taking a medium to long-term view, Infoactiv gained steady traction against its objectives.
  • Tailor your solutions to suit the market - Customers' needs in India are often markedly different to those in Australia. Infoactiv recognised this and tailored its offerings accordingly.
  • Respect cultural diversity - Social and cultural differences affect everything you do in India, from where you locate and how you manage local staff to extended business development processes and the importance of developing culturally relevant marketing.
  • Understand the regulatory and compliance environment - Lack of knowledge about the regulatory framework could be a major barrier to success. From lodging a simple form to negotiating India's complicated taxation structure, every step demands due diligence. Infoactiv engaged partners and staff with local knowledge to mitigate potential risks.

Engage trusted local partners: do your research, be selective and act prudently

Commencing business operations in India can be very challenging. In a country with mixed cultural values and a highly complex regulatory system, it is essential to build strong relationships with knowledgeable and dependable local partners. These partners can play a critical role in selecting and retaining local staff and can assist in tackling complex labour compliance requirements. Equally, the choice of suppliers and partners is crucial to how customers view your business.

With this in mind, Infoactiv started its Indian venture by creating a team of four local professionals in May 2010. Recruitment of an in-country Head of Operations further enabled careful scrutiny of the market and various stakeholders in order to ensure a credible start to the business.

Infoactiv developed close contacts with the Victorian Government Business Office (VGBO), India, building on this relationship through the Victorian Trade Mission in 2012. This created a window of opportunity for Helen and her team to pursue the interest of the business to a higher level. "When the mission was announced, the VGBO had a sound working knowledge of the company, the management team, our local capability and the solutions we provide," she said. As a result, the process of being introduced to customers and strategic partners became much easier.

The VGBO also helped in facilitating Infoactiv's attendance at relevant meetings, providing pre-briefings and generally assisting with local business advice. The Infoactiv team continues to leverage these resources to open as many doors as possible.

Strategically, planning meetings and engagements with potential customers and partners directly following the formal meetings of the mission helped to extend the breadth and depth of contacts being made. Regular follow-ups and return visits were then conducted by the management team to build relationships with those key contacts. Working through networks and associations that were both trusted and in harmony with their vision and approach was of paramount importance to Infoactiv.

Tailor your solutions to suit the local market: understand your clients and refine your strategies

While a core business approach and model can extend across territories, the nature of customers' needs changes by country and the delivery of services must remain flexible to accommodate local conditions.

Traditionally, customers have had little flexibility and choice in the market if they are looking for a tailored supply chain service to suit the needs of their business. Customers are asked to fit into prescribed structures and methodologies dictated by the service providers, their footprint and the needs of their shareholders.

Infoactiv distinguishes itself from competitors by approaching clients with a flexible, innovative and open brief to solve their supply chain and sustainability challenges. Specifically, Infoactiv provides turn-key supply chain solutions that are adaptable and customer-centric. The priority has been to develop and tailor service methods to meet clients' requirements, and not vice-versa. This approach has meant partnering with providers in areas where Infoactiv initially considered they had sufficient expertise and did not require local assistance.

Helen explained: "We work with the customers to fully understand their needs, and then source the best services and resources across the market. We then design and implement the final solution that meets the needs of the project." This collaborative and inclusive approach has paid off.

Infoactiv has found that companies in India are far more open and willing to embrace new methods and approaches compared with those based in Australia. The entrepreneurial nature of business in India makes a refreshing change, and is one of the surprising elements in operating in India, Helen noted. Local staff are enthusiastic and eager to develop themselves professionally and take a more results-oriented approach. "The quality in customer service approach in India is increasingly difficult to find in Australia," Helen said.

Effective leadership of the local team also plays a key role in ensuring a profitable venture in the host country. Staff need to remain connected at all times to your vision and be part of the company's journey overall, not just in that country.

Infoactiv's Indian team – now 21-strong – is largely self-managed with supervision and assistance provided by the Australian team. Regular video and audio conferences, combined with visits by the Australian team to the Indian base, keep the lines of communication open and ensure that everyone is updated with the strategy and operations of the company.

Australian businesses need to take a longer-term view of their engagement in any country – and India is no exception. As Infoactiv's experience has shown, sound investment in the form of time, money, labour, leadership and thoughtfulness are the means to achieving sustainable operations.

In the medium term, Infoactiv envisages expanding its service offering and operational footprint into several other Asia Pacific countries. The company's commitment to strengthening its Asia capability indicates that the journey to achieving those goals is well underway.

With the right approach, this success could be shared by other businesses. "Australian business has a huge opportunity to export services to the growing Asian market," Helen said.

 

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