Published on the 12/12/2022 | Written by Ahsan Malik CFO at SnapLogic
Insider advice for growth-focused tech vendors…
The APAC region is exploding with opportunity underpinned by accelerated digitalisation spurred by the pandemic, increasing digital literacy and a unique appetite for cloud-based solutions.
That opportunity has not gone unnoticed. A recent survey found that 55 percent of U.S. and Europe-based corporations identified APAC as their key target for international expansion.
Funding for fintech companies in APAC, in particular, nearly tripled from 2020 (AU$9 billion) to 2021 (AU$24.15 billion), highlighting the opportunities in the region and confidence from startups and investors.
“It’s vital to hire strong, local employees with an ear to the ground”
However, while the opportunities for growth are ample, there are still challenges, as APAC expansion demands a unique approach:
- Consider the variety of nuances that come with growing in a new area: This includes managing currency risk, understanding regional regulations and respecting the local culture. Even more, it’s critical to realise that no area is safe from global concerns like inflation pressures and talent retention.
- Speed and agility are key to winning in all markets: Integrating disparate systems and automating core processes are critical to accelerating business growth and success. This was true before the pandemic and even more so now. That’s why we are continuing to see the market for application and data integration evolve and grow. According to Verified Market Research, the iPaaS market is forecasted to skyrocket to AU$35.2 billion by 2028. Businesses that serve that burgeoning need are likely to find greater success.
- Get optimal impact from investments: Value and ROI can take many forms. What’s the short- and long-term capital investment and/or anticipated savings, what’s the impact on existing team and resources, what productivity and time to value gains can be expected, and how soon before the benefits and return on investment are seen? Data is at the heart of all of this — important financial decisions should be backed up and supported by data.
- Seize the opportunities of tomorrow: There will always be periods of disruption. Each one of them will bring new unexpected challenges as well as new opportunities. While some CFOs and other members of the C-suite might be inclined to be cautious, the leaders of tomorrow see opportunities. At SnapLogic, we’re using this time of disruption to move forward with confidence and optimism — for ourselves, as well as for our customers.
- Human capital is priceless: Holding off on infrastructure investments and hard costs until your foreign operation has matured is a sound way to justify expenses and assure a long-term ROI. However, it’s vital to hire strong, local employees with an ear to the ground. They can evaluate market penetration plans and identify untapped opportunities. They’ll also be more familiar with the area, understanding local and cultural nuances, ensuring your success within the new market.
- Strike the right balance: It’s important to surround yourself with a leadership team that is truly data-driven and metrics-obsessed, across the entirety of the business. As a finance leader, you need to be able to track and measure everything you do. It’s a delicate balance between investing for growth while also tracking bottom line results, particularly in areas that are underperforming. This allows you to quickly shift to areas that will drive better and faster growth. This speed and agility, enabled by real-time data and agreed metrics, is fundamental to success.
While expansion into new regions is a huge undertaking, it also opens up exciting opportunities to take your organisation to the next level.
Ahsan Malik is CFO of SnapLogic, responsible for leading the company’s global finance and legal organisations. SnapLogic’s self-service integration platform helps organisations connect applications across data sources to automate business processes.