The Secret of Networking: How High-Tech Companies Expand Into New Markets

Maxim Lukyanov has dedicated over 15 years to sales in the high-tech industry, formulating sales strategies along the way. During his career, he has aided multiple large corporations in becoming certified suppliers to titans in the oil and gas sector.

Currently, he's focused on cultivating his own ventures. Maxim Lukyanov imparts insights on how business developers attain noteworthy results, and under what circumstances companies should consider hiring such professionals.

Q: Your business development journey commenced with Open Technologies IT in the CIS region. Could you shed some light on the responsibilities you had at the time?

A: When I first joined Open Technologies, I served as a sales manager in the oil and gas sector. The company was yet to establish any connections with Gazprom, so my objective was to earn our place as one of their certified suppliers.

Given my prior experience working within various Gazprom structures post-graduation, I had an intimate understanding of their business processes. This, I assumed, would aid me in forging the necessary relationships in my new role.

After about eighteen months, I found myself in an informal conversation with one of the company's shareholders. He was curious as to why our sales were not experiencing any substantial growth.

I clarified that to attain such an objective, we would need a comprehensive strategy complemented by significant investments. I also outlined the steps necessary to realize this. Upon hearing my plan, he gave me the go-ahead to put it into action.

Gazprom is a vast holding company, with numerous subsidiaries under its umbrella. My strategy involved building a productive dialogue with each of them, starting from the top and working downwards.

I arranged meetings with the leaders of the subsidiary companies, presenting our capabilities.

With their support in hand, I then fostered relationships with the engineers working on specific projects. As a result, we were able to secure several key orders, and significantly enhance the company's annualized revenue to $20 million.

Q: Were you subsequently invited to replicate your success at Huawei Enterprise?

A: Indeed, that would be a fair characterization. While I was at Open Technologies, we collaborated closely with the sales director of Huawei Enterprise in the oil and gas sector, as we were seeking a new equipment supplier for the Gazprom project.

During these discussions, it came to light that Huawei Enterprise had also attempted to become a certified supplier for Gazprom.

However, my predecessors had not been successful in establishing a robust relationship with the company and securing orders.

When hiring a sales or business development manager, there's always a period of uncertainty about whether the individual will be able to boost the company's revenue. Unfortunately, not all hires yield the desired results.

In such situations, the company not only incurs financial losses but also faces the often underappreciated cost of lost time.

The rapid pace of market changes makes these losses difficult to quantify and even more challenging to recover.

Q: Did your strategy in engaging with potential clients evolve over time?

A: I opted for a different approach. I was aware that Gazprom's specialists had a preference for brands like Cisco and HP, and they harbored skepticism towards Chinese equipment.

To overcome this bias, it was essential to demonstrate that the equipment was not just high quality and user-friendly, but in certain aspects, it even outperformed products from American competitors.

Thus, our strategy was more bottom-up this time around.

This strategy vindicated itself over time. A few years later, we successfully established ourselves as one of the key suppliers of IT and telecommunications equipment for Gazprom.

One of the significant projects I oversaw was tied to upgrading the data transmission network and substituting Cisco equipment with Huawei.

I believe this is a solid testament to the efficacy of our efforts with the engineers.

Q: What methods did you employ during this process? Were masterclasses and exhibitions part of your strategy?

A: Such tactics mainly facilitate one-off interactions with the target audience, but our job demanded a more comprehensive approach.

Firstly, we secured agreement from Huawei's leadership and initiated free training for Gazprom specialists. Within the first few years alone, we provided training to approximately 600 employees from various subsidiaries and divisions.

Some of this training was conducted at the manufacturer's campus in China.

As a result, the specialists started to appreciate the quality of the equipment, found it relatively simple to transition to, and began to recognize features that were absent in Cisco and HP products.

Secondly, Huawei began providing a substantial amount of equipment for testing. While a traditional vendor always has a stock of test equipment, customers often have to wait their turn to try it out.

However, we ensured Gazprom had access to as much equipment as required, eliminating waiting times typically experienced by other companies.

Thirdly, we offered robust technical support through a team of professional programmers. They aided in achieving compatibility between equipment from various manufacturers, or alternatively suggested ways to replace them entirely.

This multi-faceted approach allowed us to shift the customer company's perspective, garner loyalty from Gazprom employees, and secure an agreement for ongoing collaboration.

Q: What do you believe contributed to formulating an effective strategy?

A: As I've mentioned before, my thorough understanding of Gazprom was crucial. I was familiar with their business processes, the ongoing projects I could contribute to, and most importantly, the decision-makers within the company.

At Huawei, I developed a valuable habit of closely examining the annual official reports of the customer's board of directors. These comprehensive documents provide information about their completed projects as well as plans for the forthcoming years.

Given my familiarity with the company's business processes, I was able to discern the trajectory they were likely to follow and predict the projects where our involvement might be feasible.

Q: What, in your opinion, differentiates a successful sales or business development manager?

A: Firstly, effective communication skills are paramount, as they are essential for network building. Equally important is an analytical mindset, which aids in making effective decisions.

Moreover, it's critical to embrace constant challenges. Complex tasks stimulate development, and it's often while tackling difficulties that unique ideas emerge. At one point during my tenure at Huawei, I felt I had reached a plateau in terms of personal growth.

I craved a challenge and decided to venture into the European or American market, where I knew I would have to prove my worth all over again.

Q: Do your current projects also revolve around high technology?

A: Absolutely. I can provide some details about one of them. Presently, my partner and I are developing a company in the field of automotive cybersecurity. This is a very timely endeavor.

As cars are increasingly being equipped with various smart and autonomous solutions, they are becoming more susceptible to information security vulnerabilities.

Currently, I'm spearheading business development at the presale stage. I'm engaged in negotiations with representatives of European and American automakers. This is an intriguing experience for me, as I've typically worked with finished products.

Now, we're in the process of crafting a product from scratch, based on our database and the results from our testing.

Q: Could you share your approach to building a professional network?

A: Certainly. The initial step is to conduct extensive market research, scrutinizing the cultural and legislative nuances of our target countries… This is crucial, as it's clear that the dynamics in, say, Germany and Austria would greatly differ from those in the UK, or Hungary and Croatia.

Following that, we typically shortlist the three largest companies in the market, arranging meetings with their representatives to demonstrate our capabilities and initiate negotiations.

This gives us a chance to gather feedback, understand their needs more thoroughly, and get a clearer picture of the company's operational processes and pain points, as well as what we can offer them.

Subsequently, we work on building a network of contacts. This could be achieved, for example, through LinkedIn. The platform enables us to connect with individuals who have an intimate knowledge of the customer and the industry.

We then seek their advice - not necessarily in a formal, official capacity, but through informal dialogue. As per my experience, most people are quite open and willing to share their insights

Q: How can a company, that currently lacks a product, convince potential partners that future collaboration will yield positive results?

A: In reality, it's highly unlikely for a company to not have a product at all. Typically, there exists a prototype - be it a service, or a physical product, that can be modified and enhanced.   It's this prototype that you should present to potential customers.

Engaging with market players and soliciting their feedback can help refine the product to an optimal state. If a startup isn't making progress in its development, it needs to pivot until it finds the path to success.

Q: Over time, have you developed any indicators that help you gauge during initial contacts whether a potential client will absolutely not cooperate?

A:  Firstly, as a salesperson and business developer, I understand that the "win-win" principle should prevail: if a project is beneficial for both me and the potential customer, the likelihood of success is high.

Secondly, I try to empathize with them, or as they say in the UK - 'step into their shoes', to comprehend how I can assist them and if my involvement would be a burden.

Additionally, post-presentation dialogue often reveals whether or not a potential client is interested in what you have to offer. If you're well-prepared, have accurately studied the client and the market, understand the client's pain points, and during the dialogue, these issues are validated, then the chances of advancing to the next step are usually high.

There are, of course, exceptions. In some cultures, a potential client might express appreciation but then cease further contact. These are cultural nuances you need to be prepared for.

The key, once you've realized that further cooperation isn't feasible, is not to waste time knocking on a closed door but to continue your search elsewhere.

Q: What advice would you give to companies that are now planning to introduce a high-tech product to new markets? Should they hire a specialized professional or handle it internally?

A: There's no one-size-fits-all answer to that question. Based on my personal experience, I would say that hiring a specialist is advisable when business processes are well-established and roles are clearly defined.

For instance, if a large chain plans to expand into a new region, it could bring on board a competent professional to tackle this specific challenge.

On the other hand, if we're discussing a smaller company attempting to break into a new market, it may be more beneficial for the business owners to handle the business development themselves.

Yes, they could hire someone who has long-standing experience in the market, with a vast network of connections, and the ability to navigate this challenging journey following a proven path.

But without the internal drive or a vested interest in the company's revenue growth (which the business owners naturally have), shareholders might end up squandering both money and time.

I've witnessed this firsthand. It's a delicate balance to maintain, and there's probably no universal solution that guarantees success for everyone.