A Time for Greater Action Against Tuberculosis

On Oct. 26, 2016, The Economist Intelligence Unit (EIU) announced the publication of a report that notes: Although tuberculosis (TB) "was responsible for around 1.5m deaths in 2014, down from nearly 1.8m in 1990, it is now the leading infectious disease killer worldwide, surpassing HIV/AIDS," according to the World Health Organization. The EIU report is intended to serve as an update to a 2014 report, Ancient enemy, modern imperative: A time for greater action against tuberculosis. This post, however, will focus on the 2014 report, which investigates the health challenge posed by TB and ways to improve the effectiveness of the global response to it. I will address the findings from the 2016 report in a subsequent post on this blog.

Supported by Janssen, the EIU's 2014 report "draws on interviews with 17 public health officials, funders, academic and medical experts, researchers, and activists as well as on extensive desk research to consider the state of the TB challenge, barriers to further progress, and how efforts need to evolve." The report's key findings include the following:

1. Despite important successes, progress against TB is still slow and significant weaknesses remain;
2. Drug-resistant TB has become a public health crisis that is receiving too little attention and shows up failings in current efforts;
3. To date, TB efforts at various levels have often suffered from a lack of compelling ambition and interest;
4. A high level of stigma still affects those with the disease and hampers efforts against it;
5. Efforts against TB remain overly provider-centered and set apart from health systems; and
6. Improved success against TB will require changes on a number of levels.

On the topic of improving success against TB will required changes on a number of levels, the report says that "further progress against TB is essential, but will mean new strategies that address current weaknesses while not throwing away gains to date." These new strategies include: 

• Finding and treating people where they live. To find the nearly-3m new cases of TB every year, health systems in countries with a high incidence of TB need to look across the entire population, and even those with a lower prevalence have to find better ways of going into, and working with, sometimes marginalized populations;
• Taking TB control out of existing silos. TB needs to treat the whole person, including addressing common co-morbidities such as HIV/AIDS, and co-ordinating public and private health provision;
• Harnessing cost-effective technology. Although progress in the field of TB remains frustratingly slow, new tools available today—both medical and non-medical—have the potential to transform treatment;
• Raising the profile of TB. Perhaps most important, activists and other stakeholders must find better ways to elevate national and global ambitions to deploy the tools at hand with sufficient intensity to make more rapid progress against this disease.

The 2014 report concludes by stating "TB strategies need to move in practice beyond medical silos to work in and with communities on finding cases and improving treatment outcomes. This involves a range of changes, including those listed below:

• Seeking and treating the ill in new ways, where they live. Clinic-based efforts alone will not reach the nearly 3m undiagnosed TB cases. In high-burden countries, the search will need actively to look for TB across the population as a whole. Even in lower burden ones it will involve finding effective ways to target and treat the disease in sometimes challenging marginal populations;
• Integrating care to take account of the whole human being. Those with TB frequently have co-morbidities and lack the social or economic resources to be able to complete their treatment—especially of MDR TB—over the long term. Effective TB care means finding ways to overcome these barriers;
• Taking advantage of the resources of health systems as a whole. National TB programs are an effective way to focus attention on the disease, but they should not become a TB care silo. The whole health system needs to be involved in finding TB, and medical facilities— including HIV clinics and private care providers— are proven ways to help address the disease; and
• Harnessing new technology (both medical and non-medical). Medical advances in TB are still frustratingly slow, so those that come along need to be applied in the most useful way. The WHO has encouraged the use of GeneXpert and such a test will be essential in rapidly diagnosing and defeating MDR TB. Health systems need not rely solely on medical technology, however. Mobile information technology and integrated databases show great promise in being able to understand the challenge that TB poses at both national and local levels, as well as in tracking patients and helping to avoid issues with drug stocks.

A video produced in conjunction with the 2014 report, which may be viewed below or through this link, correctly explains that "combating tuberculosis globally required finding and treating people where they live, involving the health system as a whole, and harnessing cost-effective technology."

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Mobile Industry Delivering Economic Growth, Employment and Public Funding in the MENA Region

The previous post on this blog made reference to a 2015 report produced by GSMA Intelligence that provided an analysis of the mobile industry in the Arab States. On Oct. 17, 2016, the London, England-based organization announced the publication of The Mobile Economy: Middle East and North Africa 2016 at the GSMA Mobile 360 Series – Middle East conference in Dubai. In its press release, the GSMA says "that there are 339 million unique mobile subscribers (Q2 2016) across the region's twenty five markets, a figure expected to rise to 385 million by 2020."

The report further explains: "The number of smartphone connections has also more than doubled over the last three years to reach 263 million in Q2 2016, accounting for 42 per cent of total connections, and is forecast to reach 467 million by 2020. The availability of mobile broadband networks has increased smartphone adoption and is helping to bridge the digital divide and usher in innovative new mobile services." The availability of mobile broadband networks in the Middle East and North Africa (MENA) region provides an opportunity for companies like ROI3 to develop localized content for smartphone users.

On the topic of mobile delivering economic growth, the GSMA 2016 report notes that "mobile technologies and services generated 4% of GDP in the MENA region, a contribution that amounted to more than $150 billion of economic value. In the period to 2020 this will increase to almost $200 billion (4.2% of GDP) as countries benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services."

Infographic:
GSMA Intelligence

Moreover, "The mobile ecosystem also supported more than 1 million jobs in 2015. This includes workers directly employed in the ecosystem and jobs indirectly supported by the economic activity generated by the sector. In addition to the mobile sector's impact on the economy and labor market, it also makes a substantial contribution to the funding of the public sector, with $15 billion raised in 2015 in the form of general taxation."

Over the past several years, I have witnessed the power mobile connectivity has played in Asia's emerging economies. Therefore, it is with great interest to read that "mobile has emerged as the platform of choice for creating, distributing and consuming innovative digital solutions and services in MENA. Many local and global innovators and tech entrepreneurs are now using the expansion of the mobile ecosystem and the growing adoption of smart devices in the region to deliver mobile-based solutions that directly appeal to local interests and cultures."

My colleagues and I recognize that the successful creation and deployment of localized mobile software solutions in the MENA region will be based on establishing strong collaborative relationships with local developers, marketers, and channel partners.

What advice do you have about doing business in the MENA region?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Doing Business in the UAE: An Opportunity to Develop Localized Mobile Content for Arabic Speakers?

Produced by GSMA Intelligence, The Mobile Economy Arab States 2015 report says: "A factor preventing smartphone users [in the Middle East] buying apps is the lack of apps in Arabic language. Arabic is the fifth language in the world by number of native speakers and is the first language for more than 240 million people. Nevertheless, less than 1% of websites in the world are in Arabic. Creating local Arabic content requires local talent, so there is clearly an opportunity for local developers, local service providers and local entrepreneurs to develop apps that meet the needs of these customers." My professional interest in producing localized content for Arabic speakers was the primary reason I attended the "Business and Trade Opportunities with Jebel Ali Free Zone (Jafza), Dubai" seminar on Sept. 27, 2016 in Seattle, Wash.

Jafza, a DP World-owned company, is based in Dubai, United Arab Emirates and promoted as one of the world's leading free trade zones. Created in 1985, a"the free zone's purpose is to promote trade and support container throughput at the Jebel Ali Port," according to a promotional materials produced by the based organization. "Jafza accounts for almost 32% of total FDI (Foreign Direct Investment) flow into the country. The free zone contributes 21% of Dubai's GDP on a yearly basis and it sustains the employment of more than 144,000 people in the United Arab Emirates. In 2015, Jafza generated trade worth USD 87.6 billion."

Speakers at the seminar noted that the United States has enjoyed warm relations with the UAE since 1972 and the U.S. was the third country to establish formal diplomatic relations with the UAE. With respect to international trade, the UAE is the United States' single largest export market in the the Middle East. Over 1,000 American firms have an on-the-ground and expanding presence in the UAE. FedEx, Ford, GM, and General Electric are among the Fortune 500 companies operating in Jafza.

The seminar explained some of the value-added services and incentives for companies to locate in Jafza including: 100 percent foreign ownership, no corporate or income taxes, no import import or re-export duties, no restriction on capital repatriation and no currency restrictions. Covering 22 square miles, Jafza can provide businesses with plots of land, warehouses, a business park, and on-site residences.

Photo: Trade Development
Alliance of Greater Seattle

I enjoyed attending the seminar, which was hosted by the Trade Development Alliance of Greater Seattle, and learning about the opportunities that exist for American firms. However, the focus of the presentations was on products rather than services such as cloud computing or information technology such as software-as-a-service, the latter of which is the primary focus of ROI3, Inc. During the Q&A session, there was some discussion about UAE's planned effort to support local entrepreneurship and the creation of small businesses.

The GSMA report referenced in the first paragraph above explains that "the mobile industry in the Arab States has grown rapidly over the last few years, with 54% of the population subscribed to a mobile service as of mid-2015. At this point, the unique subscriber base in the Arab States stood at just over 200 million." Given that just 1% of websites in the world are in Arabic, entrepreneurs and small businesses in the UAE are presented with a great opportunity to develop localized mobile web content. My colleagues and I look forward to having the opportunity to develop mobile software solutions for Arabic speakers, particularly in the education and health sectors.

What has been your experience of doing business in the UAE?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Measuring the Impact of the Mobile Industry on Sustainable Development Goals

The GSMA released a study, 2016 Mobile Industry Impact Report: Sustainable Development Goals, that "offers critical insights into the transformative impact of the mobile industry on individuals, societies and economies around the world, in developed and developing markets. Importantly, it establishes a benchmark through which the industry will assess its success in contributing to the Sustainable Development Goals (SDGs) and serves as a blueprint for other industries as they commit to achieving the SDGs."

As explained in a press release dated Sept. 19, 2016, the report, which was developed by Deloitte for the GSMA, "is designed to facilitate progress reporting by creating a common, measureable system that links the industry's activities to their impact on the SDGs and will serve as an input into industry decisions on strategy, planning and investment." Furthermore, "The report will enable the mobile industry to engage more effectively with partners based on impact on the SDGs, and it creates a framework that can be shared with others in the mobile communications ecosystem, as well as with other industries. The Mobile Industry Impact Report forms a baseline to measure the industry's progress against the SDGs; updates will be published on a yearly basis."

The development of the report and its associated assets has four main objectives:

1. Facilitate progress reporting through the creation of a common, measureable system that links the industry's activities to their impact on the SDGs and their associated targets;
2. Provide an input into industry decisions on strategy, planning and investment;
3. Allow the mobile industry to engage more effectively with existing or new partners on the basis of the impact on the SDGs; and
4. Create a framework that can be shared with others in the mobile communications ecosystem, as well as with other industries.

While the report is primarily focused on the assessment of impact across the SDGs, and the forward-looking implications of that analysis, there are three additional topics covered:

1. Sustainable business policies and practices: Acknowledgement that the mobile industry has a primary responsibility to respect and uphold universal principles of responsible business in areas such as human rights, labor, environment and anti-corruption in the conduct of their business;
2. The industry's commercial model: Reflections on the strength and sustainability of the commercial model in light of the current and expected impact on the SDGs; and
3. Commitments: A series of commitments by the industry to further promote the SDGs, enhance the industry impact on the SDGs, and advance the capability of other sectors to also contribute.

The report also notes that all 17 SDGs are impacted by the mobile industry to varying degrees, with the greatest impact being felt on: SDG 9: Industry, Innovation and Infrastructure; SDG 1: No Poverty; SDG 4: Quality Education; and SDG 13: Climate Action. The way the industry contributes across these four SDGs differs significantly:

• SDG 9 calls for resilient infrastructure, sustainable and inclusive industrialization, and innovation. The industry makes a powerful contribution through: extending and upgrading its infrastructure; connecting remote, less-included communities; stimulating economic participation; and supporting IoT-related innovation;
• SDG 1 focuses on eradicating poverty, providing equal access to economic resources, and building the resilience of the poor. The industry plays its part by stimulating economic participation and activity through voice and data services; providing affordable connectivity; and acting as a provider of financial services to developing economies, including the powerful platform of mobile remittances that is particularly valuable to underserved communities;
• SDG 4 targets significant improvements in the quality of, and access to, good education across formal and more skills-based categories. The industry primarily impacts this SDG by providing connectivity to schools and learners, giving access to digital resources. The industry also provides educational platforms directly, including content, and facilitates the purchase of school-related services in poorer economies through mobile money; and
• SDG 13 seeks improvements in community resilience to the effects of climate change and improved planning and management. The industry contributes by providing emergency communications systems, connectivity and tailored services, e.g. broadcasts at times of disaster and early warning systems based on data analytics, sensors, and crowd sourcing.

Having spent my a good amount of my professional career supporting technology entrepreneurs, as well as advising the United Nations and sovereign governments on economic development matters, I understand the beneficial role mobile technology plays in improving the livelihood of billions of individuals worldwide. (This experience, coupled with my passion of creating technological tools for personal empowerment, is the catalyst that led to the formation of ROI3, Inc.) Therefore, I am pleased to see the publication of the 2016 Mobile Industry Impact Report, which comes at a point in human history when global mobile phone use is becoming ubiquitous. Measuring the impact of the mobile industry on the impact of SDGs is essential to achieving sustainable development goals in developed and developing markets.

What are your impressions of the report?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

7 Billion People Live in an Area Covered by a Mobile-Cellular Network

Mobile network coverage
and evolving technologies: ITU

"Seven billion people (95% of the global population) live in an area that is covered by a mobile-cellular network," according to a report titled ICT Facts and Figures 2016. Published annually since 2009 by the ITU, a United Nations specialized agency for information and communication technologies based in Geneva, Switzerland, this year's report provides statistical evidence of a digital divide that exists regarding access to affordable mobile broadband, as well as the widening gender gap of Internet penetration.

There is a common perception that people worldwide have access to the Internet, which is supported by the fact that 84 percent of the global population has access to mobile-broadband networks (3G or above). However, mobile-broadband networks reach just 67 percent of the global rural population. 

With respect to Long-Term Evolution, commonly marketed as 4G LTE, a standard for wireless communication of high-speed data for mobile phones and data terminals, "LTE networks have spread quickly over the last three years and reach almost 4 billion people today (53% of the global population), enhancing the quality of Internet use."

World's Offline
Population, 2016: ITU

The digital divide remains a significant problem in 2016. The ITU claims that "close to one out of two people (47%) in the world are using the Internet but only one out of seven people in the LDCs. Developed regions are home to one billion Internet users, compared to 2.5 billion users in the developing world."

It is encouraging, however, to read that "in developing countries, the number of mobile-broadband subscriptions continues to grow at double digit rates, reaching a penetration rate of close to 41%. The total number of mobile-broadband subscriptions is expected to reach 3.6 billion by end 2016."

Not surprisingly, lower costs to access ICT services via mobile devices is a key driver to smartphone and LTE adoption, particularly in developing countries. "The average price of a basic fixed-broadband plan is more than twice as high as the average price of a comparable mobile-broadband plan," says the ITU. The report further explains that 83 developing countries had achieved the Broadband Commission's affordability target by end 2015. While five LDCs achieved the Broadband Commission target, broadband, fixed or mobile, remains unaffordable in a majority of the world's poorest countries.

Internet Penetration Rate for
Men and Women, 2016: ITU

For the first time, the ITU report provides statistical data regarding the Internet penetration rate for men and women. Disappointingly, "Internet penetration rates are higher for men than for women in all regions of the world." The report continues: "The global Internet user gender gap grew from 11% in 2013 to 12% in 2016. The gap remains large in the world's Least Developed Countries (LDCs) - at 31%. In 2016, the regional gender gap is largest in Africa (23%) and smallest in the Americas (2%)."

Also for the first time, the report provides statistical data on machine-to-machine (M2M) subscriptions as the Internet of Things (IoT) economy is beginning to accelerate. The report notes that "the countries with the highest M2M penetration rates are highly industrialized, advanced economies, including the Northern European countries of Sweden, Norway, Finland and Denmark."

What are your impressions of the ITU report?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

Your Invitation to Experience ROI3's Initial Mobile Demo Apps

It is my pleasure to announce that my colleagues and I at ROI3, Inc. have completed the development of our English Language Learning demo apps. When fully developed, our apps will provide people from China with the opportunity to learn English language skills with an emphasis on the use of the language in aviation or medical settings. Our apps address technical terminology in these professions, in English, for Chinese language-speaking or -capable users. You are hereby invited to download and experience the apps on your Android or iOS device. After you have experienced the apps, we would appreciate your completing a brief online survey. Upon the completion of the survey, you will have the opportunity to enter to win one of two $25 gift cards.*

For Android users, please click on the links below to initiate the process of downloading the app file onto your smartphone or tablet:

Download ROI3's ELL Aviation app for Android

Download ROI3's ELL Medical app for Android

Since our apps are considered non-market, third-party apps (i.e., not available through any app store), Android users may need to change their Settings our install the APK file. To install the APK file on your Android device, tap "Settings," select "Application Settings" and then enable "Unknown Sources."

Please email techsupport@roi3.com for assistance with downloading or navigating through the Android apps.

For iOS users, please click on the links below to initiate the process of downloading the app file onto your smartphone or tablet:

Download ROI3's ELL Aviation app for iOS (and click on the orange icon that says "直接下载")
Download ROI3's ELL Medical app for iOS (and click on the orange icon that says "直接下载") 

Since our apps are considered non-market, third-party apps (i.e., not available through any app store), iOS users may need to change their Settings our install the PLIST file. To install the PLIST file on your iOS device, tap Settings > General > Profiles & Device Management > iSoftStone Information Technology(Group)Co.,Ltd.

Please email techsupport@roi3.com for assistance with downloading or navigating through the iOS apps.

My colleagues and I have now are now entering a new exciting chapter as we begin to implement our sales and marketing strategy. I want to express my sincerest appreciation to my friends and family for their continuing support. I also want to thank my business partners, advisors, mentors, and talented colleagues, past and current, for their efforts in helping build ROI3 into a successful venture.

*No purchase necessary. Gift cards are for Amazon.com or Starbucks, depending on the residency of the survey respondent. Sweepstakes ends on Sept. 30, 2016 at 11:59:59 pm Pacific Daylight Time. Winners will be notified on Oct. 7, 2016. Void where prohibited.

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

Resources for Globally-Minded Small Businesses

Image: http://ow.ly/XPGH302jHgz

On May 25, 2016, I attended "Startup Global Seattle" in Seattle, Wash. Sponsored by Microsoft Accelerator Seattle, the Global Innovation Forum, the U.S. Department of Commerce and Silicon Valley Bank, the forum's focus was on exploring "the opportunities and challenges for startups and small businesses in the global marketplace and to discover resources to help your globally-minded business succeed." This event featured several panelists discussing key topics such as navigating international compliance and protecting intellectual property, succeeding in the global digital economy and global e-commerce, and understanding how to access the resources to reach new markets.

I agree with the remarks made by Jeremy Snodgrass, an attorney specializing on IP licensing at Microsoft, that startups and small businesses should understand the full range of their IP assets. In my experience of advising business owners and entrepreneurs, many are aware of patents as an IP asset but they overlook (or underestimate) the valuable role trademarks and copyright provide to their company's IP asset portfolio. While it is necessary to retain legal counsel in navigating the IP filing process to protect a company's invention or brand, I recommend that every entrepreneur take advantage of the excellent resources that the United States Patent and Trademark Office provide with respect to patents and trademarks.

Diana Mooney, Director of the U.S. Commercial Service Seattle, noted that many small business owners can find useful information through Export.gov, which "provides trusted market intelligence, practical advice and business tools to help U.S. companies expand in global markets." Throughout my professional career, I have routinely used Export.gov as a primary resource in learning about the opportunities and challenges of doing business globally. Small business owners and corporate executives alike will find value in many of the export guides available through www.export.gov/Export-Guides.

For example, Country Commercial Guides, which are prepared by trade and industry experts at U.S. embassies worldwide, provide important information such as market conditions, opportunities, regulations, and business customs for over 125 countries. These guides are an excellent starting point to find everything you need to know about doing business overseas, detailing eight important factors to help you decide if a market is right for your product or service: 

1. Doing Business in ...: Provides a broad overview of the market and the top reasons why U.S. companies should consider exporting here. Recommends strategies for entering the market and summarizes challenges or barriers for U.S. companies;
2. Political and Economic Environment: Links to the State Department's website for background information on the country's political environment, its bilateral relationship with the U.S. and the country's membership in international organizations;
3. Selling U.S. Products and Services: Provides guidance and best practices for selling U.S. products and services in the market, includes typical use of agents and selling to the government. Provides steps for establishing an office or joint-venture/licensing partner, and conducting due diligence. Discusses the state of e-commerce, franchising, and direct marketing;
4. Leading Sectors for U.S. Exports and Investment: Identifies the top industry sectors that have potential in the market. Provides a general overview of each sector, including trade data, challenges, sub-sector best prospects, and a list of relevant websites and trade shows;
5. Trade Regulations, Customs and Standards: Describes trade regulations, customs and standards in the market. Provides information on import tariffs and documentation U.S firms should be aware of when exporting, including any prohibited items or temporary entry procedures;
6. Investment Climate Statement: Describes the country's openness to foreign investments and provides information on the country's investment policies, the labor market, political violence and levels of corruption. Describes foreign trade zones and laws for protecting property rights;
7. Trade and Project Financing: Describes the country's financial system and how U.S. firms typically get paid. Describes the banking system and provides information on foreign exchange controls in the market. Describes important sources of funding for project financing; and 
8. Business Travel: Describes relevant business travel information and business customs, includes any special visa or entry requirements, potential health risks, travel advisories and information on travelling around the country.

My colleagues and I at ROI3, Inc. regularly refer to the China Country Commercial Guide as we develop mobile applications for smartphone and tablet users in the world's largest mobile phone market. We are also utilizing the Country Commercial Guide for other countries as we explore new business opportunities in Southeast Asia, South Asia, and sub-Saharan Africa.

As a startup entrepreneur or small business owner, what resources do you utilize as you prepare to expand into foreign markets?

Aaron Rose serves as President and CEO of ROI3, Inc., a Seattle, Wash.-based company that empowers people in emerging economies through innovative, technology-based solutions. He is also the editor of Solutions for a Sustainable World.

Business Success in China Resides in Learning How to Communicate with its People

"Understanding China is not about learning the law and regulations, it's about understanding the people," Randall Lewis, Vice President, International Counsel at ConAgra Foods, correctly noted during a webinar produced by LexisNexis on Apr. 27, 2016. He continued to say: "It's about learning how to communicate with the [Chinese] people and embracing a new way to view the world." The webinar, "Is Your IP China-Ready?" focused on intellectual property (IP) risk prevention in the Chinese marketplace.

Mr. Lewis, together with Dan Harris, a founding member of Harris & Moure, addressed a multitude of topics including choosing a good Chinese partner, identifying the IP assets that need protection, structuring your deal to protect your IP, conducting post-deal due diligence, drafting China contracts to protect your IP, and choosing language for arbitration, forum and the ability to seek local injunctions carved out from any arbitration clause.

Mr. Lewis expressed that "one of the most important things about China is its politics." If you do not understand Chinese politics, Mr. Lewis asserts, then it is difficult to structure a business transaction or resolve a legal dispute. Furthermore, China is a political economy where the entire country is ruled by its politics. In fact, Mr. Lewis explained, Chinese politics are embedded in all institutions including the judiciary, education, and most large companies. With respect to the Chinese government's role in business, Mr. Lewis said the government often lacks sophistication and institutional framework, and foreigners may encounter a less professional demeanor from Chinese government officials compared to what they may be accustomed to in their home market.

On the topic of choosing a business partner in China, Mr. Lewis encourages foreign businesses to identify the decision-maker of the potential Chinese partner, as well as the most powerful person within the company. He also explained that the Chinese business partner places a higher emphasis on personal relationships than a contract and "how you say something is more important than what you say."

Foreign companies should expect contract negotiations to occur over a long period of time, which foreign companies are unaccustomed to and may find frustrating. To facilitate the process, Mr. Lewis recommends establishing some targets, but not a deadline to make a decision or finalize a deal.

Interestingly, Mr. Lewis remarked that "there are two type of people you will meet in China: an older generation (loosely defined by Mr. Lewis as older than 55 or 60 years of age whom were beneficiaries of Deng Xiaoping's economic reforms) and a younger generation." More experienced Chinese business people may not read contracts before signing them, rely more on Gunaxi (addressed more thoroughly below), and be more aggressive during the negotiating process. Conversely, the younger generation is better educated, may prefer the legal process of contract negotiations, and negotiate more fairly.

Guanxi (关系), which may be described as the basic dynamic in personalized networks of influence (which can be best described as the relationships individuals cultivate with other individuals) and is a central idea in Chinese society, is integral for foreigners to achieve business success in China. While Mr. Lewis explained the importance of relationship-building with Chinese business people through face-to-face meetings, social activities such as drinking together or long dinners in order to get to know them on a personal level, Guanxi is different than corruption. The positive outcomes of Guanxi may include references of honorability or credibility; whereas, a negative outcome is when your connections may help you in an illegal way.

While many of the points Dan Harris presented in this webinar may also be found in a presentation he gave in a webinar on Mar. 30, 2016, which I wrote about in a post on this blog, there are a couple of items that are worth mentioning. First, according to Mr. Harris, many documents produced during the due diligence process in China may be fake. "We have seen fake insurance policies, fake IP registrations, fake contracts, and it just goes on and on and on," Mr. Harris said.

More concisely, according to Mr. Harris, distrust all company information. He also suggests asking people about the Chinese company you are seeking to do business with including visiting the company's office or facility. Scrutinizing the paper may also help identify whether or not the document presented by a Chinese company is fake.

And how often does the production of fake documents happen in China? Mr. Harris says it happens all the time and his firm is often required to review "at least two sets of books with one of them being fake" when performing due diligence on behalf of his clients. The production of fake documents "is very common in China."

I also appreciate Mr. Harris' point: "Structure your deal and write your contract so that the Chinese partner believes it will make more money with you than without you." This is important because of the challenge foreign companies may encounter in enforcing a contract in the Chinese court system. Moreover, Chinese companies operate differently compared to American companies. If the former believes the latter is no longer useful, the odds of the Chinese company abiding by the contract decreases, Mr. Harris explained. "It is very important for you to understand Chinese business, China's economy, and write your contract accordingly," he added.

While this post addresses just a few of the many interesting and relevant points from the webinar about doing business in China, you can view the webinar in its entirety through this website and download the presentation slides through SlideShare.

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.

Do What You Set Out to Do...Push Through!

"I believe that having principles that work is essential for getting what we want out of life," Ray Dalio writes in his book on life and management principles. Mr. Dalio, Chairman and Chief Investment Officer at Bridgewater Associates, an investment firm, further says: "I also believe that to understand each other we have to understand each other's principles. That is why I believe we need to talk about them." This post looks into a few principles I apply in my life.

Mr. Dalio segments his book, Principles, in three parts: "Part 1 is about the purpose and importance of having principles in general, having nothing to do with mine. Part 2 explains my most fundamental life principles that apply to everything I do. Part 3 explains my management principles as they are being lived out at Bridgewater." He presents the purpose and desired use of this book by writing:

Above all else, I want you to think for yourself—to decide 1) what you want, 2) what is true, and 3) what to do about it. I want you to do that in a clear-headed, thoughtful way, so that you get what you want. I wrote this book to help you do that. I am going to ask only two things of you—1) that you be open-minded and 2) that you honestly answer some questions about what you want, what is true, and what you want to do about it. If you do these things, I believe that you will get a lot out of this book. If you can't do these things, you should reflect on why that is, because you probably have discovered one of your greatest impediments to getting what you want out of life.

Mr. Dalio presents the following as his most fundamental principle: "Truth —more precisely, an accurate understanding of reality— is the essential foundation for producing good outcomes." I completely agree. I can name numerous examples of when my accurate understanding of reality was essential for producing good outcomes. Equally important, however, is the fact that I am able to provide many stories of an inaccurate understanding of reality that led to the production of negative outcomes. It is these moments that I take as learning moments and opportunities to strengthen my ethical core values.

"I believe that the desire to evolve, i.e., to get better, is probably humanity's most pervasive driving force" Mr. Dalio continues: "Enjoying your job, a craft, or your favorite sport comes from the innate satisfaction of getting better. Though most people typically think that they are striving to get things (e.g., toys, better houses, money, status, etc.) that will make them happy, that is not usually the case. Instead, when we get the things we are striving for, we rarely remain satisfied." I find great enjoyment in improving my skills whether I am speeding down the slopes at my favorite ski area, learning the Chinese language or building ROI3, Inc.

In his "Summary and Table of Principles," Mr. Dalio provides more than 200 enumerated principles. I am particularly fond of principles 8-19:

8) Create a Culture in Which It Is OK to Make Mistakes but Unacceptable Not to Identify, Analyze, and Learn From Them
... 9) Recognize that effective, innovative thinkers are going to make mistakes.
... 10) Do not feel bad about your mistakes or those of others. Love them!
... 11) Observe the patterns of mistakes to see if they are a product of weaknesses.
... 12) Do not feel bad about your weaknesses or those of others.
... 13) Don’t worry about looking good—worry about achieving your goals.
... 14) Get over “blame” and “credit” and get on with “accurate” and “inaccurate.”
... 15) Don’t depersonalize mistakes.
... 16) Write down your weaknesses and the weaknesses of others to help remember and acknowledge them.
... 17) When you experience pain, remember to reflect.
... 18) Be self-reflective and make sure your people are self-reflective.
... 19) Teach and reinforce the merits of mistake-based learning.
a) The most valuable tool we have for this is the issues log (explained fully later), which is aimed at identifying and learning from mistakes.

Throughout my professional career, I have learned that success (and failure) is often associated with team that you build. Therefore, I found principles 117-127 to resonate similarly to how I approach my management style:

117) Train and Test People Through Experiences
... 118) Understand that training is really guiding the process of personal evolution.
... 119) Know that experience creates internalization.
... 120) Provide constant feedback to put the learning in perspective.
... 121) Remember that everything is a case study.
... 122) Teach your people to fish rather than give them fish.
... 123) Recognize that sometimes it is better to let people make mistakes so that they can learn from them rather than tell them the better decision.
a) When criticizing, try to make helpful suggestions.
b) Learn from success as well as from failure.
... 124) Know what types of mistakes are acceptable and unacceptable, and don't allow the people who work for you to make the unacceptable ones.
... 125) Recognize that behavior modification typically takes about 18 months of constant reinforcement.
... 126) Train people; don’t rehabilitate them. a) A common mistake: training and testing a poor performer to see if he or she can acquire the required skills without simultaneously trying to assess their abilities.
... 127) After you decide "what’s true" (i.e., after you figure out what your people are like), think carefully about "what to do about it."

And quite simply:

188) Do What You Set Out to Do... 189) Push through!

What is your reaction to Mr. Dalio's Principles? What would you add?

Aaron Rose is a board member, corporate advisor, co-founder of great companies. He also serves as editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Learning About Business Opportunities in Taiwan

Photo of the Taipei skyline:
http://ow.ly/4n5sQi

Did you know Taiwan is the tenth largest trading partner with the United States? Bilateral trade between the U.S. and Taiwan reached $67.4 billion in 2014, according to U.S.-Taiwan CONNECT. While most Americans are aware of the strong trade relations that exist between the U.S. and mainland China, many people, myself included, are unaware of the business opportunities available in Taiwan for American companies. An event sponsored by the Trade Development Alliance of Greater Seattle (TDA) explored the cross-border relations between China and Taiwan, as well as an examination of the market opportunities that exist for companies based in the Greater Seattle area. This post addresses some of the points presented during the Apr. 19, 2016 event in Seattle, Wash.

Andy Chin, Director-General of the Taipei Economic and Cultural Office in Seattle, talked about how U.S. products are well-represented in the Taiwanese market. Mr. Chin cited examples such as Boeing's long-standing relationship with Eva Airways with the former selling commercial aircraft to the latter and Microsoft's success of not just manufacturing its products in Taiwan, but commercializing its cloud-based services to the island with a population of 23 million.

Upon performing some research for this post, I learned of another dynamic between Microsoft and Taiwan such as the collaboration between Microsoft Research Asia and Taiwanese academia that "began in 2003 with a partnership between National Taiwan University, National Tsing Hua University, and National Chiao Tung University. This alliance led to programs that foster new talent, curriculum innovation, and academic exchanges. In 2006, Microsoft Research Asia extended this collaborative partnership to additional institutions, such as National Cheng Kung University in Taiwan."

Joe Borich, Senior Advisor with Nyhus Communications, said U.S. products are well-represented in the market and noted that Taiwan is a good target market for high-quality, differentiated products and commodity items. He also remarked how Taiwan possesses a comprehensive modern legal system with an independent judiciary. Lastly, according to Mr. Borich, Taiwan contains a number of excellent higher education institutions that produce graduates who are well-prepared for the challenges of working in a global marketplace.

Seattle has maintained a long and storied relationship with Taiwan including the former's sister city relationship with Kaohsiung, Bill Stafford, a Senior Advisor with TDA, explained. He also commented that Taiwan serves as a good location to export to emerging markets throughout Asia. Mr. Stafford further said economic ties between Taiwan and mainland China will continue to improve with the latter increasing its foreign investments in Taiwan over the next few years.

According to the Doing Business in Taiwan: 2015 Commercial Guide for U.S. Companies, a report produced by the U.S. Commercial Service in Taiwan, "Taiwan is a thriving democracy, vibrant market economy, and a highly attractive export market, especially for U.S. firms." Moreover, according to the report, "Mainland China (including Hong Kong) is Taiwan's largest trading partner, accounting for 26.7% of total trade and 18.1% of Taiwan's imports in 2014. The United States is Taiwan's second largest trading partner, accounting for 10.6% of total, including 10% of Taiwan's imports."

The report also provides an overview of the sectors ideal for U.S. export and investment in Taiwan. I was pleased to read: "The Taiwan authorities have identified cloud and mobile computing as the most promising sectors in the Taiwan’s computer software and service industries." The report includes business application software and Software as a Service (SaaS) in its list of Sub-Sector Best Prospects and explains "the Taiwan authorities have identified cloud and mobile computing as the most promising sectors in the Taiwan’s computer software and service industries."

On the topic of openness to foreign investment, the Doing Business in Taiwan report says:

Strategically located between Northeast and Southeast Asia, Taiwan is an important hub for regional and global trade and investment, especially in the high-technology industry. Indicative of its developed and open investment environment, Taiwan ranks in the upper tenth percentile of major global indices measuring ease of doing business, economic freedom, and competitiveness. Taiwan's investment climate has improved in recent years with expanded cross-Strait trade with mainland China and expansion trade links with other partners in the Asia Pacific region, as well as reforms to enhance protection of intellectual property rights and rationalize other investment-related regulations.

My colleagues and I at ROI3 are in the early stages of learning about the opportunities that exist in Taiwan for our SaaS solution, which provide smartphone and tablet users with the ability to learn English language skills and use of the language in business, legal, medical, aviation, and other professional settings. Do you have any advice or lessons learned of doing business in Taiwan?

Aaron Rose is an advisor to talented entrepreneurs and co-founder of great companies. He also serves as the editor of Solutions for a Sustainable World.