Globalization, synonim of growth ?
Interview de François PETIT, PDG d'ITN parue dans le magaine ESCP-EAP de novembre 2010 - N°133
ITN has been a major actor in the software industry for 25 years. Its constant adaptation to the market has allowed for successful international progression, thus becoming the driving strategy in the growth of ITN for the coming years.
Meeting with the CEO of ITN, who strives for success, and whose vision of globalization as a means of growth is both well thought and objective.
Could you briefly describe the activity of ITN?
ITN is a software company: we design, develop and implement a software package for the insurance players such as companies, mutual companies, bank insurers… We provide our expertise on a market that did not exist when the company was founded. From avant-garde pioneers in 1985, we have become the 1st French property and casualty insurance ISV (Independent Software Vendor) 25 years later, in a market that has boomed over the years.
ITN aims at going beyond this first collective satisfaction, and reaching the second level of growth, the perspectives of which surpass the European horizon. In figures, today ITN employs 120 people, makes M€15 sales in France and over a dozen foreign countries.
Over the past 3 years, the on-going technological and functional improvement of our solutions has resulted in the development of an international network of partners, consisting of modern solution integrators and active solution promoters. Our partnership with Accenture, CapGemini, or Logica provides an intervention capacity of over 500 people dedicated to the success of our clients' projects.
What is your positioning on the international stage?
The reality of the insurance software market is international. As such, globalization is no longer a choice, but is crucial to ensure durability. For some years now, all the insurance companies have developed their IT infrastructures and their softwares within the scope of globalization.
Henceforth, they demand of ISVs that they all proceed with the same quality, throughout the European community. Therefore, companies going global are merely adapting themselves and their processes to the obvious evolution of the market. Our clients with their international demands first walked us through this planetary approach, and for over 6 years now, they've been seeing us through it.
With over 50% of our operations taking place in 14 countries outside of France, it was essential to draw up a rigorous strategic plan to keep our ambition of becoming the European leader in this market in check. We are currently laying out this plan in order to structure and reinforce ITN, challenged by ferocious and aggressive competitors, and therefore impose our historical expertise in this very peculiar market. Developing partnerships with the leading integrators is one of the tactics in this 5-year scheme. External growth operations and possible mergers or acquisitions are also being considered so as to reach the stature and credibility that befits an international expansion.
Where does your international development stand in 2010?
We are developing in various geographical areas and various types of countries.
First of all, in countries which have similar insurance regulations, for example Benelux, Switzerland, Italy and Spain. Developing there seems fundamental as their insurance rules and regulations as well as their administration are close to the French ones.
We are also very involved in United Kingdom where we are highly sought out by the Anglo-Saxon companies.
Secondly, in countries which have developed insurance regulations close to the European ones: the Maghreb and South America.
Finally, emerging countries, like Romania or Ukraine, which are our clients' future growth targets. Highly important to the latter, these countries symbolize the insurance market of tomorrow.
Being successful outside of France has been the keystone of ITN's growth for more than 5 years.
What operational constraints have you ran into during this international development?
Unfortunately, the first obstacle has been the language barrier. Most of these projects are in english, meaning mastering this foreign language at a professional level. Given the long national past, this is a big change. It makes convincing and proving relevance all the more difficult, especially as finding French people capable of working comfortably in english can prove a tedious task.
Secondly, there's the setting up of local networks of partnerships, which is a complicated stage in our development plan. The further the covered country, the more important the role of the local intermediary. Consequently, one must identify the best partners, build a long lasting relationship and transfer the skills. Setting up an efficient network in a worldwide operation can be very challenging. But it's also the key to our success.
What substantial advantages have you gained from this globalization?
First, we have undoubtedly optimised our quality of our software design. Stepping out of the national frame, and covering 14 new countries with specific characteristics, has allowed opening our software to new methods and processes.
Adapting to the prerequisites of each new country has been good in terms of renewal and proactiveness. The standards in company have risen, and to some extent, routine has been done away with.
These international exchanges have opened up minds, thus favouring a positive internal dynamic. We've clearly witnessed it in the way of working, and these standards have resulted in services of higher quality. Our french existing customer portfolio has most certainly felt and appreciated this improvement.
In your opinion, what are the obstacles to global growth?
Being an active member of "l'Association Française Des Éditeurs de Logiciels" (AFDEL- French Association of Software ISVs), we often notice during our debates, that the drawback to this expansion is structural. French SMEs should exert themselves to following a path of rigorous progress to be credible and efficient.
All our fellow members agree on the part SMEs have to play in the expansion of key accounts or multi-corporations. Yet, despite having to call out to the expertise and flexibility of the SMEs, the latter unanimously feel the situation to be uneven, with regards to the sovereign and subjective multinationals. Better acknowledgement of the advantages and assets SMEs have to offer, would be the first step to a real partnership, and eventually it would be more profitable for both.
What advice would you give to a company longing for international success?
It's quite simple really. There are evidently some criteria that need to be respected.
First and foremost, define, and make sure to follow a path of extremely high standards.
At the same time, be humble and always listen carefully to the reality of your client's profession. The key to success surely lies in adapting to the local logic.
Basically, put what you were taught at ESCP to good use…
And for ESCP Europe students, ITN is a good place for this training.
Article paru dans le magazine ESCP-EAP - Novembre 2010 - N°133
Contact Presse :
Alain DUBOIS : 01 44 91 81 71
a.dubois@itnsa.com
