The mission of Going Global is to educate and inform Midwest technology companies on what local technology companies are doing internationally so other firms can learn from the successes of like-minded peers.
CHICAGO – Before we kick off 2005, let’s catch up with a couple interviewees from 2004 who have some interesting insights from the second half of last year:
Terry Howerton of FastRoot
Michael Muth: How will the recent election in the Ukraine affect your business?
 Terry Howerton: In the short term, it won't have much effect on the work FastRoot does there in our software lab. Like a significant portion of the Ukrainian economy, our team operates mostly unencumbered by the corruption and burden of the old regime.
This peaceful transition is a major step for the country and it’s celebrated by our team in Kiev. We share their enthusiasm for the future of the region (especially the long-term prospects for stronger business in Eastern Europe).
MM: What changes will you be making at FastRoot in reaction to the recent election?
TH: [While there won’t be any] changes immediately, the region will now see a stronger interest from investors and those looking to do more business there. Our experience working in Kiev over the past five years will help me and FastRoot facilitate and advise on some of those transactions.
We committed to Kiev several years ago (after working in India and many other parts of the world) and believe we’re in as good a position as any U.S. company to expand operations there over the coming years.
MM: What changes do you expect in the economy there and how long do you think it will take for them to become evident?
TH: The democratization of Ukraine will contribute greatly toward the business opportunities in the region. This is the government coming into line with the will of the people (many of whom are years ahead of where the government has been on the Ukrainian march toward freedom and prosperity that began with the break up of the Soviet Union).
This regime change is a major hurdle that has prevented the possibility of Ukraine entering the European Union and forming even closer ties to the west. It has also prevented significant foreign investment and business from being done in Ukraine.
Poland is probably one of the brightest examples of just how strong an economy can grow (and benefit the west as a result) during a march toward democratization. Poland made that transition remarkably fast. My sense is that the Ukrainian people are on pace for a strong push forward.
MM commentary: Ironically, FastRoot may encounter more competition or pay more for its resources in the Ukraine as more companies enter the country to explore the newfound possibilities.
MM: How do you think technology and offshoring to the Ukraine will change as a result of the recent election?
TH: This is a country of very educated and very intelligent engineers, mathematicians and scientists. The younger generation is coming of age. For much of the past 10 years, they launched businesses and reached out beyond their borders.
They did so while trying to ignore or avoid the oligarchy and corruption. Now they are turning that determination to domestic politics and demanding change. Eastern Europe is clearly one of the strongest global partners for technology and the future is growing stronger within Ukraine.
MM: Will the election in the Ukraine change anything in your relationship with your colleagues in Romania?
TH: No. As a technology service provider and a venture development group, FastRoot is committed to building a blended global delivery model that includes strong teammates in the U.S. and overseas.
While we have relationships in several countries and do work on various projects, we learned three years ago to be successful in building this global team by forging strong and long-term relationships and building up a team from scratch.
We chose Kiev as the primary offshore component of that equation and won’t be deviating from that plan any time soon. The expansion for FastRoot will mostly be to new regions here in the U.S. and internally with our existing team.
MM commentary: Though I agree that the recent election results bode well for the Ukraine, it will take at least a couple years for the economic effects to trickle down from this political change. It takes years to dismantle these political bureaucracies and repopulate the ranks with people more open and willing to implement democratic and capitalistic concepts.
I spent almost a year in Poland shortly after “the change” in 1994 to 1995 and Poles were starting to understand competition and how capitalism works. Some change is inhibited because the only people who can make things work are the entrenched bureaucrats who have always been responsible for getting things done.
These people must either be replaced or induced to change their thinking. There was fear of losing a whole generation that couldn’t adapt to the new reality. In Poland, there was a stream of former communists elected who are now members of socially democratic parties that were elected to make changes and get them into the European Union.
Doug Cogswell of ADVIZOR Solutions
Michael Muth: Why is new partner and Virginia-based Arlington Institute listed as an Asia/Pacific company on your Web site?
Doug Cogswell: Arlington Institute does most of its business in the Asia/Pacific region and most specifically with the Singapore government
MM: Does new partner Acuma compete with Ematrix and KD Labs in the United Kingdom? If not, why not?
DC: Our goal is to have a handful of target partners on board in each of our core markets. The London metro market is very large and having two to four committed partners on board is ideal. Given the size of the market, there is unlikely to be direct competition. If there is, we can likely still create win-win situations since the partners have different skills and focuses.
MM: Did your relationship with Sapient in the United Kingdom bring you back with them to the U.S.?
DC: Actually, it’s the other way around. We have worked with Sapient in the energy sector in the U.S. and they introduced to their counterparts in the United Kingdom.
MM: How did the relationship with Internet Security Solutions in Taiwan come about? Will they be helping you enter China?
DC: ISS was searching for data visualization technology and found us through a Web search. They are good fit for our technology. We screened them very heavily before proceeding given that Taiwan was not one of our target markets at the time.
MM commentary: This is another example of paying attention to an opportunity that I suspect many others would have overlooked.
MM: Where did you go on your insight trip with Opportunity International?
DC: We (myself, my wife, my son and two daughters) went to Honduras in March 2003.
MM: Who did you meet on that trip?
DC: We visited about a dozen small business owners across the city of Tegucigalpa. All were micro-finance clients of Opportunity International. We met in their homes and businesses (often with their families and friends).
They exhibited strong work ethic, commitment and caring for their families, respect for others, pride in what they had accomplished and a love of God (all despite living in what we would consider desperate situations). They were very excited and blessed to have received small ($100 to $400) loans that enabled them to run and grow their businesses.
MM: Why did you go on the insight trip?
DC: We wanted our family to experience how most of the world lives and realize that we have been incredibly blessed here in the Chicago area.
MM: What did you learn on the trip?
DC: The poorest of the poor can lead lives of dignity, respect and pride. Unlike we often think, most of these people are not lazy, self-centered and out for a “free ride”. On the contrary, we met small business owners who work 55-hour weeks to make $800 per year to support their families.
Life is hard and they live on a precipice. Food is scarce, health-care is non-existent and a storm or natural disaster can wipe out everything they have. Still, they showed us a warmth, respect and spirit of joy that was both admirable and contagious.
MM commentary: It’s not too late to register Opportunity.org and secure a $10 matching grant to the organization without having to donate anything more yourself.
Michael Muth is managing director of GATA, an international business development consultancy that helps technology companies build international partnerships. He can be reached at mike@intlalliances.com.
Click here for Muth’s full biography.
Previous Columns:
Q&A: Opportunity International’s John Kamperschroer on Partnerships (12/21/2004)
Q&A: Opportunity International’s John Kamperschroer on Technology (12/14/2004)
Q&A: Opportunity International’s John Kamperschroer on Innovative Financing (12/7/2004)
Q&A: IEC Senior Director John Janowiak on Trade Show Realities (11/16/2004)
Q&A: International Engineering Consortium Senior Director John Janowiak (11/9/2004)
Q&A: Founder John Lee of Chicago’s Hostway on Web Site Localization (11/2/2004)
Q&A: Founder John Lee of Chicago’s Hostway on Growing Globally (10/26/2004)
International M.B.A. Guide to Moore School of Business, Thunderbird (10/12/2004)
Your International M.B.A. Guide to Northwestern, Loyola University (10/5/2004)
Entrepreneur’s Guide to International M.B.A. Programs in Chicago (9/28/2004)
Q&A: Prairie Angels Founder Bob Okabe on Diction, International Cities (9/7/2004)
Q&A: Prairie Angels Founder Bob Okabe on International Adaptation (9/1/2004)
Q&A: Prairie Angels Founder Bob Okabe on Managing U.S. Subsidiaries (8/24/2004)
Q&A: Origin Ventures Founder Steven Miller on Investments, Angels (8/17/2004)
Q&A: Origin Ventures Founder Steven Miller on the Canadian Way (8/9/2004)
Q&A: CPCP Founder David Baeckelandt on Multilingual Importance, Mentoring (8/3/2004)
Q&A: CPCP Founder David Baeckelandt on Japanese Disclosure, Due Diligence (7/27/2004)
Q&A: Chicago Pacific Capital Founder David Baeckelandt on Overseas Funding (7/20/2004)
Q&A: ADVIZOR Solutions CEO Doug Cogswell on the Art of Partnering (7/13/2004)
Q&A: ADVIZOR Solutions CEO Doug Cogswell on BP, AstraZeneca Wins (7/6/2004)
Q&A: ADVIZOR Solutions CEO Doug Cogswell on Global Software (6/29/2004)
Q&A: CEO Terry Howerton on Why Chicago, Ukraine Made FastRoot (6/22/2004)
Q&A: FastRoot CEO Terry Howerton on Blended Chicago Approach (6/15/2004) E-Mail This Article to a Friend or Colleague
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