These books cover vital subjects like supply chain management, geopolitics, leadership, business strategies, the AI economy, cultural diversity, and the historical context of global trade, offering valuable perspectives for navigating the complexities of the worldwide market.

1. The Culture Map: Breaking Through the Invisible Boundaries of Global Business by Erin Meyer

Erin Meyer’s book “The Culture Map” explores cultural differences in the workplace, emphasizing the importance of understanding nuances for effective communication and collaboration. She introduces “authentic flexibility” for adapting to diverse cultures while staying true to oneself. The book provides insights on virtual communication in multicultural teams and offers practical tips for successful cross-cultural interactions. Meyer’s work is a valuable resource for enhancing intercultural competence and succeeding in diverse professional environments.

2. The Value of Everything: Making and Taking in the Global Economy by Mariana Mazzucato

The Value of Everything” by Mariana Mazzucato critiques how economic value is measured and the blurred line between value creation and extraction in the global financial system. The book examines cases from Silicon Valley to pharma, illustrating how this confusion impacts innovation and inequality. Mazzucato calls for a re-evaluation of capitalism, public policy, and value measurement to promote sustainable economic growth. She challenges the idea that market prices reflect true value and argues for a re-politicization of value as a social and political concept. Professionals importing or exporting are well versed in the myriad of complexities in valuing products, services and components. This book offers a fascinating perspective on the whole system.

3. How the World Ran Out of Everything: Inside the Global Supply Chain by Peter S. Goodman

The book “How the World Ran Out of Everything” by journalist Peter S. Goodman explores the complexities and vulnerabilities of the global supply chain. Through gripping storytelling, Goodman exposes the intricate pathways of manufacturing and transportation that bring products to our doorsteps, while also unveiling the ruthless business practices that have left local communities vulnerable to disruptions. Highlighting recent events like the pandemic-induced shortages, Goodman illustrates how financial interests, market opacity, and deteriorating working conditions have placed the supply chain on the brink of collapse. By following the journeys of individuals from factories in Asia to striking railroad workers in Texas, Goodman advocates for a reformation of the supply chain to ensure reliability and resilience.

4. Scale: The Universal Laws of Growth, Innovation, Sustainability, and the Pace of Life, in Organisms, Cities, Economies, and Companies by Geoffrey West

Geoffrey West, a pioneering physicist in complexity science, unveils the hidden laws governing the life cycle of diverse systems, from living organisms to cities. Contrary to the complexity of these systems, West’s discoveries reveal an underlying simplicity that unites them. By applying the rigor of physics to questions of biology and mortality, West found that mammals, despite their diversity, follow scaling laws that relate their size to various biological characteristics. This groundbreaking insight extends beyond biology to include cities and businesses, where similar laws of scalability apply. West’s work offers a unique perspective on the fundamental principles governing diverse systems, relevant for professionals working in global business. “Scale” is a captivating journey through fundamental natural laws that connect us all in profound yet straightforward ways, illuminating how cities, companies, and life itself are governed by the same principles.

5. Pivot: The Only Move That Matters is Your Next One by Jenny Blake

If change is the only constant, let’s get better at it.

In “Pivot: The Art and Science of Reinventing Your Career and Life,” Jenny Blake, a former career development manager at Google, shares practical strategies for navigating career transitions effectively. In today’s dynamic economy, where job roles change frequently and career plateaus are common, Jenny Blake introduces the concept of the “pivot” as a way to methodically make your next career move. Drawing from her experience in Silicon Valley and as a career consultant, Blake presents the Pivot Method, a framework for taking small, strategic steps towards a new direction in your career. Whether you’re considering a new role, starting your own business, or transitioning to a new industry, this book provides actionable advice to help you move forward with confidence.

With practical guidance and real-life examples, Blake empowers readers to embrace change and chart a path towards greater career satisfaction and success.

6. The International Business Culture Pathfinder: A Practical Guide to Navigating Cultural Differences in Global Markets by Marvin Hough

Written by experienced CITP Marvin Hough, The International Business Culture Pathfinder is a collection of concise business culture guides for 11 countries, including Brazil, Canada, China, UAE, South Africa and more.

This book provides a comprehensive overview of each nation’s business landscape, cultural traits, and practical scenarios demonstrate the impact of culture on business. Whether you are a seasoned global business professional or just embarking on your international journey, this resource is indispensable for grasping negotiations, communication norms, relationships, management approaches, and time management in varied cultural settings.

7. Power And Prediction: The Disruptive Economics of Artificial Intelligence by Avi Goldfarb, Ajay Agrawal and Joshua Gans

In “Power and Prediction: The Disruptive Economics of Artificial Intelligence,” Avi Goldfarb explores the “Between Times” of AI evolution, highlighting the necessity for systemic changes in decision-making processes within organizations. Despite the transformative potential of AI, its widespread adoption has been delayed, akin to past technological revolutions such as electricity and computing. Goldfarb stresses the need for complementary innovations alongside AI advancements.

8. Dare to Lead: Brave Work. Tough Conversations. Whole Hearts by Brené Brown

Leadership goes beyond titles, status, and authority. A true leader is someone who takes on the responsibility of identifying potential in individuals and ideas and has the bravery to nurture that potential.

Renowned author Brené Brown, a four-time #1 New York Times bestseller, has dedicated decades to studying emotions and experiences that add value to our lives. For the past seven years, she has collaborated with transformative leaders and teams worldwide. In her book “Dare to Lead,” she delves into how courageous leadership entails recognizing potential, staying open-minded, sharing power, and embracing vulnerability. The book stresses the importance of cultivating human qualities like empathy, connection, and courage in a society dominated by scarcity and fear. It presents four essential skill sets for courageous leadership and advocates for choosing courage over comfort.

From the humblest middle manager to the CEO of a fortune 500 company, anyone who wants to lead effectively could learn from this book.

9. Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail by Ray Dalio

A few years ago, Ray Dalio observed unique political and economic conditions, leading to his exploration of repeating patterns in wealth and power shifts over the last 500 years.

“Principles for Coping with the Evolving World Order” delves into the most tumultuous economic and political eras in history to explain why the future is expected to be markedly distinct from our own experiences, yet reminiscent of past occurrences.

Ray Dalio discusses unique circumstances leading to global changes and offers advice on navigating upcoming challenges. Dalio’s analysis covers major empires and historical patterns to provide practical principles for preparing for the future.

For professionals working in international trade, navigating the turbulent geopolitical and economic environment is part of the job. Learning more context for how things evolve may just help you get ahead of the curve.

10. Prisoners of Geography: Ten Maps That Expla in Everything About the World by Tim Marshall

Journalist Tim Marshall’s book “Prisoners of Geography” explores how physical characteristics of countries like Russia, China, the US, Latin America, the Middle East, Africa, Europe, Japan, Korea, and Greenland and the Arctic, their strengths, vulnerabilities, and leaders’ decisions. In ten chapters and ten maps, the book delves into geopolitics and how geography shapes global strategies and historical events. It highlights the impact of geography on nations’ destinies and provides a fresh perspective on world affairs, something that is incredibly helpful for anyone doing business in foreign markets.

Knowledge is power, and continuous learning is the cornerstone of success in the evolving world of international trade. Share with us your top reads in 2024!

The post Top 10 books for international trade professionals to read in 2024 appeared first on Trade Ready.

• New product that opens an entirely new market for the company and meets a new consumer need
• Product modification that improves the product, engages new consumers and re-engages existing consumers in the market
• Product that replaces an existing company product
• Product that significantly broadens the market for an existing company product
• Existing/old company product introduced in a new market
• Existing/old company product packaged in a different way
• Existing/old company product marketed in a different manner

Product development and adaptation is a continuous process. It requires full liaison between the manufacturer and the agent or end user to ensure the product meets market requirements and profitability is maintained.

In seeking to satisfy new markets, companies have several options available, including:

• Selling standardized products as is, i.e. the same product and promotional message
• Modifying products for specific safety and functional requirements, e.g. for some countries or regions, product power requirements may need to change from 110 volts to 220 volts
• Designing entirely new products for foreign markets
• Incorporating locally induced differences into product offerings, known as glocalization

Different types of products can serve different purposes. For example:

• Innovative products are a means for companies to enter an existing market.
• Additions to existing product lines supplement and expand options for consumers.
• Improvements or revisions to an existing product line can improve market share and re‑engage past consumers.
• Repositioning products allows companies to target new markets.
• Product development and adaptation can be used to reduce production costs and sometimes reduce prices for consumers when a similar product can meet the same needs at a lower cost.

With these goals and strategies in mind, here’s 4 of the many examples of how adapting products or developing new ones has paid off in spectacular fashion for companies worldwide.

1. The evolution of the razor

The cartridge safety razor was first introduced in the 1960s. These razors were a popular and cheaper alternative to the electric razor introduced in the 1930s. Made from moldable plastics, the cartridge razor contained a disposable, replaceable cartridge head. Each cartridge generally held two blades and would slide on and off a straight plastic handle. This version is the basis for today’s disposable razor.

The cartridge of a modern safety razor generally has three to five blades, with lubrication strips on either side of the blades. The handle is contoured to fit the hand; some vibrate, while others have a ball in the handle and a flexible cartridge to better glide over facial contours.

These product adaptations have taken the simple safety cartridge razor to a higher-end product without losing the usefulness of the first simple model.

2. So much more than just “a coffee”

Consider the American coffee company Starbucks. The service provided by baristas making and customizing Starbucks beverages for the desires of individual customers is an integral part of customers purchasing the company’s products. In 2015, service generated USD 19.2 billion in revenue for Starbucks.

Starbucks entered the market offering a coffee shop experience. The company sells its signature fair trade coffee perfectly ground, brewed and served in their coffee shops all over the world. In 2016, Starbucks had baristas serving coffee in fifty countries. In terms of continued growth, it expects to have more than 37,000 stores by 2021.

Starbucks continues to innovate both in terms of its products and its brand experience.

Starbucks offers coffee-based drinks, such as lattes, as well as teas and smoothies. It also sells coffee paraphernalia, such as mugs, coffee beans and coffee makers. Customers can also buy food products. Starbucks uses these associated products to enhance its coffee service and offer more to customers with a “one-stop-shopping” strategy. Customers can go in for coffee and also have a snack or lunch. Starbucks has also expanded its home brewing by selling beverage pods for consumers using single cup brewing systems.

3. Going “glocal”: It’s the same, but different

In business, the term “glocal” describes activities that take into consideration both local and global concerns. There are many examples of brands that enter into emerging markets by adapting their products to local tastes, attitudes and values.

For example, McDonalds, a brand built on providing high quality beef products, has adjusted its menu in India, where the cow is considered a holy animal. Its localized menu items include McAloo tikki burgers (mashed potato patty) and Chicken Maharaja Mac with Indian spices.

4. Wait, you can do that? The future of manufacturing

A Dutch design company called MX3D is collaborating with a variety of partners, including Autodesk and the Amsterdam City Council, to 3D print a metal bridge over one of the city’s canals.

Designer Joris Laarman says the project will free the world to think about craft in new ways.

“I strongly believe in the future of digital production and local production, in the new craft,” says Laarman.

This bridge will show how 3D printing finally enters the world of large scale, functional objects and sustainable materials while allowing unprecedented freedom of form.

This is not the only project of its kind. In 2016, Michigan Technical University built an open-source 3D metal printer for under USD 1,000; and in the 2015 “Launch Tennessee Master Accelerator Program”, a startup called Branch Technology took inspiration from nature to develop 3D-printed walls for homes and buildings using a “cellular fabrication” process.

The post Learn to adapt your products from these 4 success stories appeared first on Trade Ready.

At FITT’s upcoming conference, Your Future in Global Markets, we’ll be exploring the key issues international businesses will face in tomorrow’s global marketplace. It goes without saying that innovations in technology will be driving that future.

So, ahead of the deep dives we’ll be taking into all aspects of preparing a global business to be a top performer into the future, we wanted to get a sneak peek into how today’s tech innovations are already changing the way multinational businesses are operating, planning and even staffing. Here’s what the experts had to say in this month’s #TradeElite Twitter chat.

Moderator:

Kelly Freeman from ICECORP Logistics Inc. (@Icecorplog), based out of Toronto, Ontario.

Panelists:

Nicole Verkindt (@Offsetmarket) – Founder, OMX, “Dragon”, Next Gen Den, Panellist, CBC News, The Exchange based out of Toronto, Ontario.

Amy Karam (@AmyKaram) – Author, speaker, instructor and global expansion and competitive strategy consultant based out of Ottawa, Ontario.

Gustavo Zentner, CITP|FIBP (@GZInterpoc) – President of InterPOC – International Point of Commerce and Trade Champion for Canadian Manufacturers & Exporters, based in Winnipeg, Manitoba.

Paula Greene, CITP|FIBP (@PaulaIntlMkt) – President & CEO at BEYOND Ventures Group Inc. DBA BEYOND, based out of Halifax, Nova Scotia.

Omar Allam (@Omar_Allam_) – Founder and CEO of Allam Advisory Group based out of Ottawa, Ontario.

1. What are the biggest tech innovations driving global business today?

A1: Procure-to-pay and supplier engagement solutions for sellers & SMBs worldwide #TradeElite @FITTNews #globalbiz #innovation

— Omar Allam (@Omar_Allam_) September 14, 2017

A1. 1/2 – There are many; it is fundamental for companies to know what they look for before they start using tools.

— Gustavo Zentner (@GZinterpoc) September 14, 2017

A1. 2/2 – Automated online filing systems for custom & border crossing; live platforms with border patrols and customs reports are usefull

— Gustavo Zentner (@GZinterpoc) September 14, 2017

Automation, every industry is starting to be disrupted with this innovation #TradeElite @FITTNews #globalbiz #innovation

— Sarah Barnes (@sarahcaroline88) September 14, 2017

Q1: in mobile handset space where innovation has built on past successes like #android and #appleiphone platforms by Chinese company #Xiaomi https://t.co/kUlRIKkZuK

— Amy Karam (@AmyKaram) September 14, 2017

A1. Transportation – New Silk Road aka #OBOR utilizing rail, HYPERLOOP and Drones change the game #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

Big tech innovations driving global business: big data, B2B procurement platforms, #IOT #TradeElite

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

2. Where do you see the biggest impact to your business?

A2. For us creating experiences helps drive sales, even in B2B. 3D printing has been HUGE for us with sampling. #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

A2: Biggest impact remote workforces, decentralized company structure, meaning less commercial real estate…#tradeelite @tresaudrey

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

A2 With transition to remote workforce, adv communication tools means competing globally, have to stay competitive #tradeelite

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

A2. Video, improved photo quality, anything 3D or 360 helps our customers see the final product b4 we’ve produced #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

A2 Potential to reach more entrepreneurs around world with less travel. Less worrying abt how to be in many places at same time #tradeelite

— Sara Haq (@HaqCast) September 14, 2017

#TradeElite A2) Biggest trends I saw on @cbcdragon #NextGenDen was online marketplaces, “Ubers of ___”, #IOT and other consumer products.

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

3. Is technological change creating a new global economy?

A3 – Yes – absolutely. Crypto currencies are a perfect example. New platforms and basic forms of trade are making us more connected.

— Gustavo Zentner (@GZinterpoc) September 14, 2017

A3: Tech change is just evolving w. the global economy, and evolving with the progression of needs, behavior and capabilities #tradeelite https://t.co/7wlJ7PAW9s

— Amy Karam (@AmyKaram) September 14, 2017

A3 Yes, in virtually every sector, with remote work and transactions digitally, business knows no borders…& tax issues #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

#TradeElite A3)Yes, #tech has created an entire new digital,
networked #economy -will require new #leadership styles,collaboration, openness

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

A3. Absolutely. You can pay with your watch! Your WATCH. It’s a totally different economy. #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

4. AI is a hot topic – how do you see that affecting business in the future?

A4: on a commerce platform #AI can learn from user interactions, improve business processes & offer contextual info instantly. #tradeelite

— Omar Allam (@Omar_Allam_) September 14, 2017

A4. What AI will have trouble doing is any type of creative thinking. That’s the future of our workforce. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

A4) #AI will impact @offsetmarket allowing us to learn #procurement behaviour, make predictions + serve our users better #support #chatbots

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

Look out for role of AI in corporate boards. Some firms already deploying this resource for better decision making #TradeElite

— Marcos Vaena (@MarcosVaena) September 14, 2017

A4: AI will mean business people will need to become smarter in different ways in order to stay relevant and add value #training #tradeelite https://t.co/B6XD3fyWra

— Amy Karam (@AmyKaram) September 14, 2017

A4. I think it brings up new governance challenges but also opens the door to new service delivery & sales pitch channels #TradeElite

— Clarecia Christe?? (@ClareciaChriste) September 14, 2017

5. What are 3 ways tech will disrupt business in the future?

A5 automation, robotics and operational efficiency, decisions made with more data and less manual labor #TradeElite

— Sarah Barnes (@sarahcaroline88) September 14, 2017

A5) #Tech will change how we consume, so companies have to change how they sell #TradeElite

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

@FITTNews the change of technology to trade “everyone will sell something to anyone.” Trade moves from big companies to small personalities.

— Peter Kucherepa (@Kucherepa) September 14, 2017

The world is changing at an unheard of pace… watch, do research, be prepared and open. i.e. don’t put your head in the sand!!! #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

A5) #Tech will change us on personal +social level, providing more open access, less barriers, more diversity, more merit based #TradeElite

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

A5: tech leveling the playing field for small businesses and empowering both producers and consumers, making global trade more inclusive.

— Marcos Vaena (@MarcosVaena) September 14, 2017

6. What is key to staying ahead of disruption?

A6. Learning new stuff. Being open to different ways to accomplish goals & get stuff done. #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

A6: BE the disruptor in order to stay ahead of disruption #tradeelite think and act 3 steps ahead of where the market is #tradeelite https://t.co/6xq6INb7OH

— Amy Karam (@AmyKaram) September 14, 2017

A6) Be optimistic, be open, collaborate, iterate, small steps every day. And it’s all in the people around you #TradeElite

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

A6-challenge your thinking and reporting structures; hire professionals; don’t be afraid of making mistakes when trying new processes.

— Gustavo Zentner (@GZinterpoc) September 14, 2017

7. How can global business use tech in their strategy to stay competitive and maintain growth?

A7. Every experience is custom tailored,individual like in the old days of business, with tech we can do this at scale. #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

A7. integrate tech in the corporate norms, operations and human capital. Be innovative and use design thinking for strat plans #TradeElite

— Clarecia Christe?? (@ClareciaChriste) September 14, 2017

A7 – FAIL FORWARD
(encourage anyone in the org to point out mistakes and suggest corrective steps)

— Gustavo Zentner (@GZinterpoc) September 14, 2017

A7 figure out a way to get on top of the data you need, assess risk and be open to new tech #TradeElite

— Sarah Barnes (@sarahcaroline88) September 14, 2017

A7: use #tech to increase sales and reduce costs #TradeElite – at the end of the day, being competitive is that formula

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

A7. Where possible, use automation & digital tools so your team can do creative / service work, not admin. #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

A7: leverage it 2 keep closer connection 2 yr clients. Tech enables firms 2 have a pulse on the market and foresee trends to guide decisions

— Marcos Vaena (@MarcosVaena) September 14, 2017

8. Are there any emerging innovations that you’ve seen that you think will make an impact in the future?

A8. Yes, in not only how we are doing business, but what we are doing in business #cleantech #TradeElite

— Paula (Lunn) Greene (@PaulaIntlMkt) September 14, 2017

A8. Anything that incorporates tech to correct & protect the environment. Waste is an issue in a lot of industries. #TradeElite

— audrey ross (@tresAudrey) September 14, 2017

A8) just seeing start of #AI, #digitalmesh,big data etc, BUT I am most excited about is leverage into B2B, traditional sectors #TradeElite

— Nicole Verkindt (@nicoleverkindt) September 14, 2017

A8: more important than specific innovation is the shift in market behavior. Tech enables greater consumer empowerment and transparency

— Marcos Vaena (@MarcosVaena) September 14, 2017

Read the rest of the chat and follow future discussions by following the #TradeElite hashtag.

It’s not too late to register for Your Future in Global Markets 2017, so act now to sign up see all of our panelists live, along with our other great speakers, events and more!

And stay tuned for the next #TradeElite chat, coming up Thursday, October 12 at 2:30-3:30PM ET.

The post How will today’s tech innovations affect the future of your global business? appeared first on Trade Ready.

Innovation has become a necessity for all firms wishing to continue their survival in this disruptive and competitive environment. But the process of innovation is much more easily conceived of than completed. So what is innovation, and how can a business set out to truly innovate?

Profits can poison the porridge

For some companies constant modernization and advancement just seems natural. In these companies and new innovations are developed regularly, while others are confined to riding the wave of the last innovation by making small product adaptations or branding.

What sets these companies apart, though? What is the “stuff” that exists in one but not the other?

The start of a new product is always an idea, but where do ideas come from? In the new season of ‘F is for Family‘ on Netflix, there is a scene in the boardroom of a Tupperware company which is facing a loss of market share through increased competition, and needs a new product urgently.

An idea generation session is organised among the board members and the result are ideas which are totally disconnected from the company’s target consumers. The discussion of new products in this scenario started from the need to make up lost ground in market share and revenue. One can’t help but compare this backwards approach to innovation to companies who failed in their quest to stay relevant (Blockbuster video comes to mind) by missing the opportunity to create something new.

In his TEDx talk, ‘The Art of Innovation’ Guy Kawasaki, Chief Evangelist of Canva suggests that the focus should never start with money, but rather meaning. The money will come after, once you understand what you want to achieve. He cites the examples of tech companies like Apple, which tried to bring computers to everyone, and Google, which tried to make information available to everyone. It is this vision of democratization which drove them. These are now two of the most profitable companies on the planet. But if profits were the only goal from the beginning, they may not exist as they are today.

Put the chef hats on the right people

The next question is – who should be involved in innovation? Are the board members the right people, or should this job reside in an R&D department? Forbes contributor Glen Llopis suggested that,

Innovation is not dependent on the participation of high-ranking executives, but on any employee that is a student of the business, knows their consumers and their specific need.

This makes sense because the employees are the ones engaged in production and sales and interacting with the customers. In many cases they are customers themselves. Llopis goes on to quote a Wall Street Journal article titled “Together We Innovate” which stated that most companies continue to assume innovation comes from the resident genius or small sequestered teams who retreat to a think tank and return with big ideas.

The article argues instead that “most innovations are created through networks – groups of people working in concert.” Chances are that a diverse group of people are more likely to generate unique ideas than a homogeneous group populated with people from similar backgrounds, education and life experiences.

Innovation does, however, require a certain type of person. Llopis describes them as courageous enough to take a leap of faith and follow it all the way through. Kawasaki supports this, adding that in the product development cycle there is a period when innovators need to shut out the naysayers, but as soon as the product is shipped they need to start listening to people and keep evolving the product.

Ideas and innovations can thus originate from anyone in the company who knows the business and consumer needs, but they must be courageous in seeing their ideas through. This also means that the leadership of the company needs to have some degree of trust in their employees. Llopis describes these leaders as ‘courageous enablers’ who take charge and embrace the role of a change agent in support of constructive disruption.

Finding clear blue water

The dream of most companies is to develop that product or service which has its own market space, often referred to the “clear blue water” around them. These products and services generate their own demand and have no close competitors. Companies may think that the only way to achieve this is through invention – developing something totally new. However, Llopis defines innovation as an idea that represents a communal adaptation or application used and embraced by the masses.

Oftentimes what is required for successful market entry is a public embrace of the benefits derived from products, rather than what they do.

If Uber saw itself as a taxi service it would be still be utilising licensed taxi drivers. Instead it saw itself as a transport company, and was thus able to introduce something new – ride share services. The real innovation was a mobile application connecting passengers to drivers for hire, resulting in a sharing economy which set the foundation for other companies like Airbnb, Kickstarter and Craigslist.

So, what is the “stuff” required for new product development or innovation? It would have to be the courage among leaders to trust and enable employees, and the courage among employees to see their ideas through to implementation. And it has to start with a good understanding of what the business means to people.

The post What’s the difference between Apple and Blockbuster? The secret ingredients of innovation appeared first on Trade Ready.

Negotiation is the linchpin of international trade transactions. It is during negotiations that the exporter and buyer start to solidify their business relationship. The importance many cultures place on relationships means a considerable amount of time is often invested in forging a business relationship before formalized negotiations can actually begin.

When the time comes, negotiations allow the two parties to exchange demands, offers and concessions, and allocate responsibilities in the hope of arriving at an agreement that is beneficial to both parties. Following these helpful negotiating tips will ensure your business is prepared to close the deal.

1) Conduct due diligence

Due diligence involves investigating the capabilities, legitimacy, and financial strength of a potential international buyer. Information is gathered from government, industry, and financial sources, as well as from the media. The investigation provides information about whether to proceed with negotiations and, if applicable, the issues and terms to pursue. Some of the required information about potential buyers may have been revealed as part of the organization’s research into the feasibility of, and risk involved in, a specific trade initiative.

Organizations must have a good understanding of the current state of the potential buyer’s operations.

To reduce risk, more due diligence may need to be conducted about a potential buyer’s reputation and creditworthiness by asking questions about the potential buyer’s affairs.

 2) Define the relationship

The power of a negotiating party is influenced by how much it stands to gain or lose. There are certain questions the exporter can consider to better understand the value of the sale and business impact to gauge the dynamics of the relationship between them and the buyer. For example, the exporter should consider whether its product or service is rare or difficult to deliver. If so, this would define the exporter-buyer relationship as strategic and might give the exporter an advantage.

Cultivating the relationship with the potential buyer is critical to making a sale and to maintain a high volume of sales. However, the nature of that relationship is in part defined by the value of the sale and the business impact of the exporter’s product or service on the buyer’s operations. This can determine the resources spent on the negotiation process and the fostering of that relationship.

 3) Define the zone of potential agreement

It is important to define the zone of potential agreement. It sits between the maximum price the buyer is willing to pay and the minimum price that the exporter is prepared to accept.

If the buyer’s highest price is lower than the exporter’s lowest acceptable price then there is no zone of potential agreement.

In such cases, negotiations reach an impasse and risk being interrupted, as they will evidently not meet the exporter’s needs. Agreeing to negotiations outside of acceptable limits can place the organization at risk.

 4) Anticipate the expectations of the other party

Understanding and estimating the buyer’s demands and objectives allows preparing possible responses to objections, finding potential agreements that are mutually beneficial (win-win), and maintaining a serene climate of negotiation. Thus, the sales team must also anticipate what is important for the buyer:

• Is it price?
• Is it volume?
• Is it exclusivity?
• Is it quality?
• Is it dependable deliveries?
• Are there concerns about other elements of risk?
• Is the duration of the contract important?

 5) Find innovations to improve position

The ability of the exporter to introduce innovation in the production or delivery of the product or service can impact the negotiation process. For example, in India, there is a need for trained individuals who can provide clients with customized advice about life insurance. An insurance company looking to launch operations in India could differentiate itself from the competition and gain trust by promoting an approach of listening to customers to understand their unique needs, and then providing tailor-made advice based on those needs. To stimulate exchanges and constructive discussions, the following approaches could be used:

• Search for information on how to increase value for buyers.
• Ask the buyer the key question— “Why?”—and thus generate creative information.
• Develop ways to reduce costs “inside the system” together, e.g. transportation.
• Make use of the advantages that each party has, such as the capacity to absorb exchange-rate fluctuations.
• Make proposals without commitment and invite the other party to do the same. For example, “Would you be interested if we did this? What advantages can we offer to distinguish ourselves from other exporters?”
• Explore constraints, limits, and obstacles.

The post 5 negotiating tips to help you close the deal appeared first on Trade Ready.

Any business that sells goods or services online, can call itself an e-commerce business.

Over the past few decades, a number of businesses have risen from very humble beginnings and adapted their existing strategies to become titans of the e-commerce world, worth billions of dollars.

Ebay, Apple, Walmart, and Amazon are all companies that perfectly exemplify this shift. Here is a closer look at these companies, and four lessons you can learn from them to boost your own business’s growth.

1. eBay: Swift payments are key

Founded in 1995 by Pierre Omidyar, eBay is an international auction website where people sell a wide variety of items. In just over two decades, eBay went from a small startup in San Jose, California, to a global e-commerce powerhouse. In 2016 alone, eBay generated a colossal $8.9 billion in revenue, making it a true giant in the industry.

Due to the extremely high volumes of transactions that eBay experiences every day (currently over 2 billion), the company needed to make its payment methods as swift as possible.

To optimize online payments, eBay purchased and developed its own online payment system called Billpoint. However, Billpoint failed to outcompete PayPal in the online payments space. So, eBay simply acquired PayPal for $1.5 billion in 2002.

Since this acquisition, PayPal has been fully integrated into eBay’s system, and this swift payment option continues to help eBay process incredibly high volumes of transactions every day.

2. Apple: Pivoting to respond to market needs can expand profits exponentially

Apple was founded in 1976 in a garage in Los Altos, California. In roughly four decades since Steve Jobs and Steve Wozniak first started assembling computers together, Apple has grown into one of the largest companies in the world.

In fact, the computer and electronics business is so successful that it saw over $215 billion in sales in 2016, more money than many governments spend in a year.

Apple began as a personal computer company. Its early models helped to revolutionize the personal computing industry and bring computers into homes all over the world.

However, sensing opportunities to fill market needs with other types of products, Apple transitioned from being just a computer company, to a much more diverse products and services retailer in the electronics space.

For example, a large portion of Apple’s profits now come from smartphones, tablets, watches, and even iTunes, its music platform. In fact, iTunes alone generated over $16 billion in 2013.

So, the lesson e-commerce companies can learn from Apple is to avoid being pigeonholed into one type of product if you know that your company can deliver a wider range, and you also know that the market is demanding them.

3. Walmart: Adapting to keeping up with the competition is crucial

Historically, Walmart was built on a retail model with shoppers flocking to its many brick and mortar stores. However, in the last decade, Walmart has been transitioning to accommodate a larger e-commerce segment of its business.

In an effort to grow its e-commerce business, Walmart has made a number of key moves. These include closing or planning to close hundreds of physical stores around the world, opening a large e-commerce fulfilment center in Georgia, and hiring many programmers and software engineers to optimize its e-commerce platforms and apps.

Walmart also created its own competing version of Amazon Prime called Shipping Pass. This service only costs $50 per year, roughly half the price of Amazon Prime, while offering many of the same benefits, such as expedited delivery.

All of the effort that Walmart has made in its e-commerce segment, including a 30% growth in Q4 2016 alone in U.S. e-commerce sales, have helped the company to generate over $478 billion in revenue in 2016.

Although Walmart has been a dominant retailer for many decades, it faced the threat of losing a large amount of their market share to tech-driven competitors such as Amazon and eBay if it could not modernize to keep up.

Recognizing the need to adapt to keep up with the modern economy, Walmart has aggressively pursued its e-commerce offerings. This is proving to be quite successful and in the coming years, Walmart is poised to battle with Amazon and a few other major corporations for control of the largest shares of the e-commerce market.

4. Amazon: The importance of vision should never be underestimated

Amazon, one of the world’s largest retailers, was also founded in a garage, just like Apple. Amazon was founded by a 30-year-old entrepreneur named Jeff Bezos in 1994. He saw and understood the retail opportunities that the internet would provide far earlier than most, and created Amazon to take advantage of these opportunities.

Within Amazon’s first 60 days in business, the company was already generating $20,000 a week in sales. In just over two decades, Amazon has become one of the most powerful and successful companies in the world, with $135 billion in revenue in 2016. The company has also become synonymous with efficiency, innovation, and reliability. Today it sells an extremely wide variety of products all over the world.

The concept of Amazon is relatively simple; take real-life products and sell them over the internet. Many people could have taken this idea and ran with it as Jeff Bezos did. However, Bezos had the vision first, and beat everyone to the punch. That is why he was able to establish Amazon as a major market force so early into the “dot-com” revolution.

Bezos’ vision, combined with his work ethic, and the constant innovation of his company has allowed him to reach the lofty heights of the third richest person in the world. Vision is largely what propelled both he and his company and onto incredible levels of success.

Have any other lessons or tips for budding e-commerce entrepreneurs? Share them in the comments below!

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Paolo Filipponi’s father, a Senior Executive at Alitalia (Italy’s flag carrier airline), inspired him to follow his footsteps into an international career of his own. He graduated from Humber College in Toronto with a diploma in Travel and Tourism, yet on the cusp of a burgeoning career in this field, he decided to pursue an Arts degree specializing in Italian and Film Studies at Carleton University in Ottawa. As he puts it:

“Before university, I graduated with a diploma in travel and tourism from Humber College. I had a job with a European airline ready for me the day after I graduated but I went to university instead. This was partly due to the disruptive changes in the travel industry and personal aspirations. I was fortunate to have the full support of my parents and nonno (grandfather) on these career decisions and changes. But in the end I came full circle with another international client service-oriented profession.”

Starting with a crash course in international trade at the Minister’s office

After graduating college, Paolo’s love for travel, politics and international relations led him to start a career at the Department of Foreign Affairs and Trade.

Paolo hit the ground running in his first position in international trade, as an intern in the Office of the Minister for International Trade.

“Upon completion of my Bachelor’s degree from Carleton University, I started working full-time in the Minister’s office providing client service on trade programs and initiatives to industry leaders, associations, and stakeholders at the provincial and municipal levels.”

Through this work, he learned a lot about international trade policy, promotion and the barriers Canadian companies face in foreign markets. He also learned the value of the Trade Commissioner Service to companies’ exporting initiatives, witnessing the strong support the TCS offered through 14 cabinet shuffles and four changes in government.

“I really thrived in discussions with political staffers and how the prevailing government’s policies affected companies and the Canadian economy. This prompted me to seriously think about how I could be more directly involved in shaping Canada’s prosperity.”

I firmly believe in global trade as a positive force in improving people’s lives.

Promoting trade through knowledge building

Paolo’s first foray into trade promotion came when he joined the Investment Services division, marketing Canada as a prime location for Foreign Direct Investment. From there he moved on to the Science, Technology and Innovation division, where he promoted Canada’s innovation eco-system, to advance the country’s ambitions to scale-up and commercialize technologies.

Today he is a trade commissioner for Global Affairs Canada in the TCS Support Division. As a trade commissioner Paolo provides the tools and training the global TCS network needs to help companies successfully do business abroad.

“My typical day involves developing and maintaining many online learning initiatives that help our officers prepare for assignments abroad. My job is to develop materials and interactive methods of learning to increase our officers’ knowledge in a specific field so that they can provide the necessary support to clients out in the field. This could be in the areas of trade policy, investment or science and technology.”

Paolo can also be found speaking to trade commissioners overseas about their learning needs, talking to the provinces on what his Department is doing to increase commercial knowledge, shooting a video, or planning and organizing the next set of learning events.

He also runs a Lunch and Learn series to promote and increase internal knowledge of various business lines within his department.

“As the global economy becomes more complex with cross cutting issues playing heavily into the mix, it is important for Trade Commissioners to view things in an integrated fashion in order to provide value added service to clients.”

All in all, Paolo plays an integral part of in the knowledge capacity of his important department team at the Trade Commissioners Service.

We are a knowledge-based Department and you might say that I’m an integrator and broker of knowledge.

Network building online and off

In his spare time, Paolo continues the sharing of knowledge with the greater international trade community. He launched and managed the  TCS Global Science, Technology and Innovation discussion group on LinkedIn three years ago while working in the Science, Technology and Innovation division. It has become a vibrant international innovation network with over 2200 members.

“Any exporter or international trade professional who thinks strategically and internationally needs to join this network. I am also working on a new social media project, an Alumni network for the Canadian Trade Commissioner Service.”

“It’s all about relationships and building your networks of communities of interest. The various social media platforms have opened up new levels of opportunities for us to promote Canadian goods and services, technology and values to compete in globally. It’s up to us to dream big, be creative and innovative, and seize the opportunities.

Paolo also looks for new ways to expand his own global trade knowledge, which is how he got involved with the FITTskills program.

The courses were comprehensive and I learned a lot. The facilitators were skilled and experienced in their field. I will always refer back to the FITT textbooks in all my future work.

“My favourite course was Global Supply Chain Management because it really helped me conceptualize international trade into practical terms.”

After completing the program, Paolo applied for the CITP|FIBP designation to formalize his practical experience in international trade.

“I’m very proud of achieving this designation and can see myself applying the methodologies in my daily work.  It will give me the confidence to pursue and provide value-added service to a broader range of clients.”

Paolo’s other passion is being part of another international community – the soccer community.

“I have spent over 20 years as a player and volunteer in a local soccer club, the Ottawa Gloucester Soccer Club. I have a passion for both roles. Whether it is international trade or team sports, you have to build a strong, integrated and compact unit and work together to see real success.”

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Through constant overuse, the term innovation has been somewhat debased and today it refers to just about any change, big or small. For managers, however, business innovation should not be about tinkering at the margins. It should be about looking for opportunities to effect fundamental positive change.

The real test of a business innovation is not its novelty, its technology, or its cleverness: it is whether or not it adds or creates significant value for customers or shareholders.

When managers try to decide what innovations are worthwhile, they should look for how proposed changes will affect the value perceived by customers.

They should also look to innovations that enhance value to a company’s shareholders as well as its partners and other stakeholders.

Set clear business innovation goals to get the best results

The idea of value innovation or a value strategy map has been proposed as a way of focusing on value. It asks four fundamental questions:

1. Eliminate: which of the factors that the industry takes for granted should be eliminated?
2. Reduce: Which factors should be reduced well below the industry standard?
3. Raise: Which factors should be raised well above the industry’s standard?
4. Create: Which factors should be created that the industry has never offered?

To take just one example, Cirque du Soleil is an extremely successful innovation despite being positioned within a market for circus-type entertainment that was in significant decline.

Cirque du Soleil deliberately shook up customer expectations by introducing not only spectacular acrobatics but also artistic music, dance and multiple theme-based productions that were the equivalent of theatrical offerings. As a result, the Cirque has become a global phenomenon and has redefined the idea of a circus.

All of this is another way of saying that innovation is related to productivity. Business innovation allows managers to lower their prices, accelerate delivery times, add features, enhance services, or improve quality. It also allows them to develop or transform their internal processes, thereby strengthening their bottom line.

Innovation can be big or small, but it must be constant

As used today, the word innovation can refer both to a specific improvement (“the new stamping machine was a significant innovation”) and to the process by which improvements are identified and pursued (“in this company, the managers practice innovation”).

This is not a trivial distinction. Innovation understood as just another improvement is not enough to achieve sustainable competitiveness. What is really needed is to transform the company into an innovating organization, one that has implemented a process for identifying, developing and implementing innovations on a continuous and ongoing basis.

Today’s reality is that business innovation never stops. The manager has to develop structures and attitudes within the organization that are geared toward continuous improvement.

Continuous improvement depends on two factors: creativity and implementation. It is perhaps obvious that innovation requires creativity in the sense of coming up with new ideas. However, it also requires acting upon those ideas in a way that makes a difference.

Innovation is not just about brilliant insights. An idea, a change or an improvement is only an innovation when it is put to use and effectively causes a social or commercial reorganization. Innovation is about how to transform insight into action – only then can the manager make a difference.

This notion has often been expressed by reference to the commercialization gap. Many observers have noted that it is not enough to have bright ideas, it is also necessary to know how to commercialize those ideas.

In other words, true innovation occurs when someone uses an invention or an idea to change how business is conducted, how it is organized, or what it tries to achieve.

Business innovation may occur regardless of whether it succeeds in generating value for its original promoters. It can still affect the business world at large. And innovation need not always lead to positive results. The recent bundling of sub-prime mortgages as asset backed commercial paper was innovative, even if its impact on the financial industry was disastrous.

Innovation is about more than just technology

Innovation does not require something wholly and entirely unprecedented. In fact, such comprehensive transformations are relatively rare and their consequences cannot be foreseen. The best recent example of this is the Internet, which was originally designed as a military communication system that could withstand nuclear attack. Today it has transformed society.

Many valuable innovations are extensions or adaptations of existing ideas, methodologies or devices. They can affect human resource management, technology development, procurement, sales and marketing, after-sales service as well as the other components of a company’s value chain.

Since innovation covers many areas and functions, it is not just about implementing advanced technology, although the use of new technologies may be part of business innovation. It is also about improving business processes with the aim of improving and sustaining profitability.

It can be difficult to differentiate change from innovation. Business literature generally argues that an idea, a change or an improvement is only an innovation when it is implemented in a way that causes a social or commercial transformation. In that sense, innovation is more substantial than just invention or marginal improvement.

Business innovation is really about the implementation of new ideas, methodologies, or devices in a way that changes the fundamental relationships of a business – the relationships between input and output, cost and price or buyer and seller.

The post Change your industry by staying at the forefront of global business innovation appeared first on Trade Ready.

A reason that companies often try but fail in global markets is a lack of awareness of what makes a successful global trader and global organization.

Entrepreneurship is a very important quality for navigating the complexities of global business. However, entrepreneurs can make the mistake of placing too much importance on their own passion and strength of conviction and not enough importance on self-examination and strategic preparation.

Taking a “leap-before-you-look” approach to pursuing foreign opportunities is likely to be costly and has a high potential for failure.

Whether the CEO of a medium-sized firm, a small-business owner or a lone consultant, a business person should be aware of some of the strengths of today’s successful global companies as well as the weaknesses that most new traders must overcome.

Many companies succeed in the current global marketplace by concentrating on niche positioning and innovation. These companies also realize that success and profits in global trade are directly tied to the amount of energy, commitment, planning and follow-up they put into it.

1. Focus on niche value

Today’s higher concentration of global competition has made refining the value proposition and focusing on developing niche markets an attractive and often necessary strategy.

Until recently, a niche approach was viewed as the domain of small companies competing with larger firms. Now, companies of all sizes are developing products and services for increasingly segmented global markets.

One of the drivers of this trend is the complete penetration of the Internet and e-commerce into the global business environment.

The Internet is the ultimate niche marketplace. The level of choice, combined with the ever-increasing demand for end-user customization, means that successful online companies are usually those that define their value with an intensely refined focus.

This trend is mirrored in the offline global marketplace, where heightened competition has required many companies to re-position their product or service, or their market strategy and market orientation.

Niche marketers specialize in products and services that, at the time, might not appeal to other companies because of non-existent or limited demand.

Once recognized, the niche can be developed “under the radar” of potential competition until enough demand for the product or service has been created to attract their attention.

By that time, niche strategists may well have protected their position with patents, brand loyalty or a reputation for excellence.

The original market entry of Google Inc. is a popular example of using a niche focus to capture a global audience.

The renowned Internet search engine company, officially launched in 1999 when it was barely more than a home-based business, concentrated on providing a single service—a search tool for locating relevant web-based content with superior quality and accuracy of results.

At the same time, other more established Internet companies, such as Yahoo!, were attempting to add value to their search functions by providing news services and other types of content.

By 2002, while Google’s competitors continued to dilute their original strategy, Google focused exclusively on the production of the best search results, and managed to gain enough market share through user loyalty and word of mouth that their website became, and continues to be, the world’s most-used search engine.

2. Innovate, innovate, innovate!

Companies that innovate can create their own demand by generating new products and processes. But an inventive product or service, even if it finds success in the domestic market, will not necessarily translate into success in foreign markets.

Global business leaders are turning their focus towards innovation in the organization itself.

For many companies, innovation in the corporate approach may simply mean a commitment to proper awareness of and preparation for the differences between conducting domestic business and doing business globally.

3. You need to commit to sustainability

The quality of leadership and a flexible attitude towards change are inherent aspects of innovators. For a number of decades now, Sun Tzu’s The Art of War has been required reading for corporate executives the world over, particularly in the context of global business competitiveness.

The application of the strategies of war has inspired many business managers on how to approach “the enemy.” However, global managers have since begun to take a more innovative view of what it means to be competitive.

Valuing collaboration, awareness, accountability and understanding of the marketplace, partners and customers are key elements in how competitiveness is defined in an environment that is more connected and interdependent than ever.

Consequently, in addition to vision and innovation, a commitment to sustainability is seen as a vitally important management commitment in any business.

Corporate sustainability borrows elements from four well-established concepts: sustainable development, corporate social responsibility, stakeholder theory and corporate accountability theory.

In other words, companies that are going global recognize the necessity of balancing the need for economic growth with environmental protection and social equity (i.e., sustainable development).

They also acknowledge that ethical managers should consider the needs of society, not just the interests of the shareholders or themselves (i.e. corporate social responsibility).

Finally, firms recognize that there are many groups and individuals who can affect or who are affected by the achieving of the organization’s objectives (i.e. stakeholder theory) and that the firm has both a legal and an ethical responsibility to provide an account for the actions of the firm (i.e. corporate accountability).

While this commitment to sustainability may appear too far-reaching in principle, it is the very soundest foundation for business in that it is a commitment that will help firms avoid short-sighted business decisions that can be catastrophic to the firm in the long run.

What are your top goals as a global business entrepreneur? How can these tips help you achieve those goals?

The post Global business entrepreneurship requires these 3 qualities to be successful appeared first on Trade Ready.

The challenge becomes even greater if the company is also operating a number of offshore subsidiaries. The dispersion of operations requires special initiatives to ensure that there are suitable lines of communication, between headquarters and subsidiaries, as well as between the company and its customers around the world.

Using technology as a tool for international business innovation

What is more, communication has to be sensitive to and accommodate cultural differences that can have a significant bearing on what is important and what needs to be improved

Thus the first priority for the innovating international business is to set up stable and effective linkages between different parts of the organization, and this includes linkages between different functional units as well as geographical locations.

This has become easier today with the proliferation of communication technology that supports e-mail, teleconferences, video conferences and net meetings.

Such technology needs to be used, however. This means that there should be a variety of formal and informal channels through which new ideas can be heard and incorporated into the company’s operations or planning.

Formal channels might include regular meetings, workshops or retreats that are specifically focused on reviewing progress, identifying problem areas and brainstorming solutions. Teleconferences or video conferences can be used to support weekly or monthly meetings and thereby minimize the time and expense of executive travel between different company locations.

Innovating your international business requires face-to-face meetings too

On the other hand, it is also a good idea to organize a face-to-face meeting at least once a year so that managers can develop a personal rapport with each other that can support more open and useful exchanges of opinion.

Some of these sessions will probably take the form of regular reviews or planning meetings, but others should be devoted specifically to brainstorming.

One cardinal rule in brainstorming is that there are generally no rules about what can be put on the table (subject, of course, to civility and social propriety).

To get people thinking outside the box, all ideas should be given some consideration.

It is also important that senior managers do not stifle creativity at this stage: employees should be free to propose anything, however unlikely and discuss it thoroughly. Even if an idea seems completely bizarre, it may get others to think “outside the box,” which is precisely how the most transformative innovations arise.

The other basic rule is that all meetings should end with next steps or action items assigned to participants. This is because at all times, participants should be forced to think about how to move from their initial creativity to implementation; as emphasized already, it is creativity plus implementation that is the foundation for innovation.

Informal channels for gathering ideas can include e-mail, and discussion areas on company websites. They can also include talking at the water cooler or at social gatherings.

Many innovative international businesses actually set up common areas where employees can meet to relax, play games and chat. The psychology behind this is that when people are relaxed and together, they are more likely to think creatively about what they do.

Whatever the method, managers should create opportunities for staff to interact with each other.

It is only through bringing together ideas and opinions that opportunities for innovation can be identified.

Ultimately, innovation arises from a combination of serendipity and structure. Managers have to allow their employees the freedom to be creative, no matter how outrageous.

On the other hand, they also need to maintain a structure that can test and validate ideas prior to determining whether or not to implement them.

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