China Ip Cs Emerson Process Management 2007[1]

ChinaChinaChina卖对熊猫

Peddling to the Panda

[File Name or Event]Emerson Confidential27-Jun-01, Slide 2

China China –– AustradeAustrade presentation May 2007presentation May 2007

BristolBristolBristolBristol Babcock Bristol Babcock estest 18891889

Manufacturer(60m)Manufacturer(60m)Owner of Apps/IPOwner of Apps/IPMedium Entity(400)Medium Entity(400)Small AP footprint (2)Small AP footprint (2)

Bristol DigitalBristol DigitalSubsidiarySubsidiary““WesternWestern”” interface to USAinterface to USA

Emerson Process ManagementEmerson Process ManagementAcquired 12 monthsAcquired 12 monthsUSD 20bUSD 20b32,000 AP32,000 AP

TechnologyTechnologyTechnologyS.C.A.D.A

Supervisory Control And Data AcquisitionSupervisory Control And Data Acquisition



IP/IT- the riskIP/ITIP/IT-- the riskthe risk

IPApplication

IPIPApplicationApplication

IPknowledge

IPIPknowledgeknowledge

Up & Middle Ware softwareUp & Middle Ware software

Hardware Field & Hardware Field & Control RoomControl Room

MarketMarketMarket



China – Oil & GasChina China –– Oil & GasOil & GasUSD 200b5 major clients– PetroChina– Sinopec– CNOOC– CNPEC– CNPPB

Demand for Energy45,000km pipeline400 Cities on Gas9 LNG plants

DownstreamDownstream DistributionDistributionMidstreamMidstreamUpstreamUpstream



China – FocusChina China –– FocusFocusTarget Market @ FY2000– USD 200m– 3 major clients

• PetroChina• Sinopec• CNOOC

– Demand for Technology– 45,000km pipeline– 9 LNG plants– Oil & Gas Fields

10% market share objective

MethodologyMethodologyMethodology



Challenges circa FY2000Challenges circa FY2000Challenges circa FY2000No market penetrationNo localisation“Far East”US centric market2 staffNo supply chainLanguageCultureEmbedded competitors



StrategyStrategyStrategyIn-house reliance– Take ownership

The three rules– Source– Knowledge– Needs

Phone A Friend– Global Relationships– Regional Relationships– Local Relationships

Create a Niche– Brand– Expertise– P.O.D

Adapt & Overcome– “Yes” paradigm

Trailblazer– Where others fear to

tread.



TacticsTacticsTactics 战争艺术

“When in Beijing”– Blend in

Create a sense of Ownership– Engage in “their” business– Promote their cause– Seek common goals

Learn the principles– "借刀杀人" - Borrow

another's hand to kill– "无中生有" - Create

something from nothing

– "打草惊蛇" - Scare the snake by hitting the grass

– "李代桃僵" - Plum tree sacrifices for the peach tree



Outside the ZoneOutside the ZoneOutside the ZoneUnderstand “peripheral” issues– Related industries– Business associations– Chambers of Commerce– Work with multiple

approaches– Know their holiday

schedule

Look to Assistive Collaboration– Increase your value

• Home base associations

• Reciprocal business



An Asian ToolAn Asian ToolAn Asian Tool



Outcome – FY2006Outcome Outcome –– FY2006FY20067% market penetration– USD 14 m in systems– Global market is 12% share

Local Partner– Factory trained– Market protective– Stock & Service– Creates IP & shares

Leveraged Business– Sudan– India– Malaysia

Branded– BB

Future– Now part of Emerson

• The game changes.

– Maintain Relations– Move to:

• Ethics Policy• Anti-trust• FCPA



Thank youThank youThank you

Panel

China Ip Cs Emerson Process Management 2007[1]

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