d.velop AG
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The d.velop Group firmly believes that the future success of companies will increasingly depend on the ability to make all professional and organizational knowledge accessible anytime and anywhere, in the simplest way possible. To meet this need, d.velop AG offers specialized software for document management (ECM) and digitalization of business processes.
Currently, d.velop AG has no business presence in China. However, many of its existing clients in other countries are also active in China. These clients have increasingly requested Chinese-language versions of the software and inquired about ways the software could be provided within China.
The Chinese software market holds significant potential for Western firms, as recent years have seen regulatory and logistical improvements that facilitate software distribution and deployment. However, Chinese users and companies tend to have unique requirements for software applications. In response to these needs, and following a business and innovation trip to China in 2019, a strategic project was initiated to explore opportunities and potential strategies for entering the Chinese market.
An initial survey of the Chinese enterprise software market within the ECM domain revealed that relatively few Chinese companies currently use solutions in this area. To better assess when and to what extent Chinese companies might demand ECM solutions, comparisons were made with other market segments, and insights were validated through interviews with companies operating in China.
The analysis identified a strong trend among Chinese companies toward adopting cloud and SaaS solutions, particularly in ERP and CRM systems. It was noted that the transition to SaaS in China is happening at a much faster pace than in the U.S. or Europe. As a result, it is expected that Chinese companies without ERP or CRM systems as of 2019 will likely adopt cloud-based solutions directly.
This led to the conclusion that demand for SaaS-based ECM solutions in China is likely to rise significantly in the next one to two years. For d.velop, this finding has further implications, as its ECM solutions are often deployed as integrated solutions with SAP or SharePoint. These assumptions were validated through interviews and discussions with potential implementation partners.
As part of the project, d.velop investigated potential next steps for entering the Chinese market, paying particular attention to the legal and regulatory hurdles involved in providing a SaaS-based ECM solution for the Chinese market.
The project culminated in a potential analysis and strategic recommendation for entering the Chinese market with an ECM product offering. Initial insights were also gained into how SAP- and Microsoft-based versions—or the stand-alone ECM version—could be developed or adapted for use in the Chinese market.
Key points of the findings include:
Through comprehensive analysis and strategic planning, d.velop AG has laid the foundation for a successful entry into the Chinese market. The insights from this project enable d.velop to address the specific requirements of the Chinese market and adjust its products accordingly. With the identification of potential partners and a clear business plan, d.velop is well-positioned to meet the growing demand for ECM solutions in China and seize new business opportunities.
This experience underscores that thorough market analysis and strategic preparation are essential for establishing a foothold in new markets and achieving long-term growth.