Client Global Advertising Technology Business
Service International Strategic Development
Result Creation of APAC Centre of Excellence
Date 2014
Background
Our client was a technology business that
supports the advertising industry with TV distribution and asset management
services. Following our strategic and
operational review of their existing operations in APAC, the client accepted our
recommendation to create a joint venture with an existing Asian partner to service the region. This business already had a long standing relationship with our client; it serviced their print advertising distribution and had an operational
footprint in Malaysia, Singapore and Hong Kong.
The project was firstly to relocate the client’s APAC operations from Hong Kong and secondly to form a regional ‘centre of excellence’ in Malaysia to allow for expansion throughout the region.
The project was firstly to relocate the client’s APAC operations from Hong Kong and secondly to form a regional ‘centre of excellence’ in Malaysia to allow for expansion throughout the region.
Challenge
Once the regional office was established, we
were appointed to provide the framework for the client to roll out their service
to 17 Asian markets generating USD $23M at 48% EBITDA within 3 years. Our role was to ensure that the Asian operation
was fit for purpose both as a regional head office and as a ‘centre of excellence’,
able to lead the direction of the business in the region. We were required to implement the best of the
client’s international experience while ensuring each Asian market's unique
processes were fully understood.
At the same time each of the 17 markets were transitioning from analogue to digital TV services
so, with an industry in flux, we were required to include strategies for change across a number of
markets with diverse, cultures, languages and processes.
Approach
We had already proposed the client’s global
and regional models and had completed the transition of the Hong Kong office from a regional
to a satellite sales office so we understood the task.
To build the centre of
excellence, and to meet the growth challenge, we appointed a ‘SWAT Team’
sourced from the client’s most successful operators worldwide. This team was important to help with the
digital change required within the region and to quickly instill values
consistent with the rest of the the client's business.
We then focused on hiring an experienced local leadership team to build
credibility and deliver the skills to quickly deliver transactional revenue. We ensured that the model we prepared was scaleable and easy to replicate on a market-by-market basis throughout Asia.
Results
The relocation of the regional office from
Hong Kong to Malaysia created a strong regional centre through which the client
could direct its regional growth. Despite obvious disruption, no customer was lost in the transition of the operation from Hong Kong and within 6 months, the Pan-Asian operation was servicing markets in Vietnam, China, Singapore, Thailand and Hong
Kong.
Asian business sourced from the client’s
global client network could now be managed through Malaysia, and each of the
client’s country operations can now sell Asian broadcast services to their local
clients. This was a significant win for the client who could add Asia to their many international proposals and tender requests a potential revenue lift of 20%.
Initial revenue was not however as budgeted. This was due to
the TV product having limitations in dealing with local business issues
specific to Asian markets. However, we prepared a product review and business case for interface changes that is scheduled
for completion in 2015. Revenue is forecast to meet expectations by
June 2015.
The Advisory Partnership assists its clients with operational strategy and structural change, delivering outputs that are scalable to meet the challenges of technological change and international growth.
Post by James Douglas
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