The Israeli Cyber Security Advantage

Israel is known for developing some of the most advanced technologies in the world.  While that’s true for a number of industries, such as Medical and Telecom, in recent years the Cyber Security industry has taken center stage.  There are more than 250 companies in Israel that provide a variety of creative solutions for protecting organizations and governments from the growing number of Cyber Attacks.  As attacks become increasingly creative and sophisticated, there’s greater need for more robust and future-proof solutions.

Solebit (www.solebitlabs.com) is a young Israeli Cyber Security Start-Up, which takes a logical and conceptually simple approach to protecting cross-industry enterprises, of various sizes, from attacks launched through the execution of malicious code embedded in commonly known data files, such as Word and PDF, which are sent through email.  Such attacks could take any number of forms such as data theft, data manipulation, or total network shutdowns. 

Embedding malicious hidden code in common data files is no simple task.  Those who undertake this criminal effort work hard to identify software vulnerabilities that will enable them to place their code in data files, undetected, such that it launches when the file is opened.  Existing, Dynamic Analysis solutions address this threat by opening incoming files in a secure environment where their behavior can be observed, but fall short of providing a fool-proof solution if the malicious code is designed to recognize the environment in which it is launched.

Solebit’s starting point was the assumption that data files should never contain executable code.  It therefore developed a sophisticated engine designed to identify the embedded executable code and to block it from entering the enterprise’s network, as an example, through its email server.  The simple, conclusive “go / no go” solution takes away the uncertainty that characterizes competing products.   

Solebit’s solution, which has already been deployed on three continents, is purely software based.  It is simple and quick to install, is based on a virtual infrastructure (can be deployed on premise, with or without a physical footprint, or on the cloud) and does not burden the enterprise’ security team with additional overhead. 

Ilan Friedman

ilan@ncompas.net

The Creative Advantage

In an effort to reduce cost and maintain global competitiveness, many Western corporations adopted, since the 1990’s, the concept of software development offshoring to eastern European countries, Russia, India and other low-cost environments.  True innovation, however, was kept in the home markets.  In parallel, the Israeli hi-tech industry developed into a leading source of creativity and innovation, fueled by a mixture of highly-educated human capital, government incentives, military influence, and culture.  What characterizes the Israeli hi-tech scene today is an exceptionally high-level of creativity, ingenuity, and entrepreneurialism, which have earned the country such titles as Start-Up Nation and Silicon Wadi.

Take Efcom, for example (www.efcom.co.il).  This is not your typical run-of-the-mill software company.  They develop and integrate software and hardware solutions where the need might be known, but not the path to address it; where requirements are so stringent, they rarely make sense to ordinary thinkers; where accuracy, reliability and durability are so important, lives actually depend on them; where if not for their integrity and confidence, some of the most sensitive industries would not risk employing them.

“Our vision is to be among the select few boutique companies known among global players as the go-to provider of software and hardware solutions where there’s a necessity for a high-level of creativity and out-of-the-box thinking, based on a multi-disciplinary set of skills applied to a wide range of industries,” says Alex Efros, who founded the company in 2006 and serves as its CEO.    

Alex served in an elite technology unit of the Israel Defense Forces (IDF), where his ability to think outside the box and to develop highly creative solutions, actually saved lives.  He assembled a team of exceptional talent, with background in such areas as software and hardware engineering, physics and electro-optics, UX and algorithm expertise. 

Companies in a variety of industries, such as FDA-approved medical systems for hospitals and surgery rooms, defense and homeland security optical and vision systems, industrial automation and CNC systems, biomedical drug-development research systems, and sophisticated data management systems reach out to Efcom when they require a high-level of creativity and support in the development of unique solutions, often in challenging environments and withconstrained resources.  “No engagement is typical” says Alex.  “Each begins with an in-depth understanding of the customer’s goals, challenges and needs, and relies heavily on the team’s deep understanding and experience in a wide range of content types and technologies and on their ability to integrate this variety into an effective and optimal solution” he adds.

Ilan

 Ilan Friedman

ilan@ncompas.net

Overcoming Fear, and Reaping the Benefits

Israelis, unfortunately, have learned to live with the occasional, sometimes frequent spurts of violence that come in the form of a wave of terrorist attacks or all-out war.  The global media naturally jumps at the opportunity to report, and often not so favorably towards Israel, making it appear as though the country is under siege and that it has perhaps come to a stall.  This, fortunately, could not be farther from the truth.

It’s sad that after 67 years of independence, some of Israel’s neighbors continue to strive for its destruction.  But amazingly, Israel, and its over 8 million Jewish, Muslim and Christian citizens, continues to prosper (with religious freedom for all faiths, a free and independent press, and a robust, sometimes even rambunctious democracy) as a global hi-tech leader and with that come opportunities for foreign professionals, investors and business leaders.  Those who persist, undeterred by media-generated fear, and continue to travel to Israel regardless of what is perceived by many as “unrest”, find a completely different environment and reap the fruits that this extraordinary industry has to offer.

One such example is Jonathan Minnen, a transactional attorney and head of the Israel Practice Group at Smith, Gambrell & Russell, LLP.  He shared this thought with me, having just completed a two week business trip to Israel:  "Experienced overseas professionals and executives furthering business relationships in Israel realize that there is little, if any, correlation between the political climate existing at any particular point in time, and the pace of business.  The zeal of Israelis to develop and enhance cutting edge innovation transcends both internal challenges from acts of terrorism as well as external challenges such as the BDS movement.  While this was certainly not one of Israel's more peaceful periods of time, I was struck by the number of international business people found in the hotels and restaurants; not only from Europe, but from Asia, including the subcontinent.  For those international professionals and executives seeking opportunities in Israel, a major key to success is consistent presence in Israel."

Jonathan has been persistent about visiting the country at least once a year for the past 15 years, regardless of the situation on the ground, and in return has earned respect and appreciation by Israeli businesspeople, as well as their business – not because of the great risk he’s taken on himself, but because he overcame the fear that keeps many from witnessing, first hand, the gap that exists between what is perceived, and what is reality.

Ilan Friedman
ilan@ncompas.net

Originally posted on LinkedIn November 12, 2015

What's in a Message?

Successfully launching a young technology start-up is challenging, particularly if its markets are abroad.  Assuming the technology is sound, that it addresses a true need and that the business model makes sense, there still remains a question about its ability to compete.  Contrary to what many enthusiastic entrepreneurs might think – technology does not usually sell itself.  Marketing efforts and a sound strategy are a necessity, particularly when targeting cross-border customers.

According to Michael Porter, a company’s competitive advantage is achieved primarily through cost advantage or through differentiation.  The former is straight forward, while the latter requires additional thought.  If the message is not delivered properly, prospective customers could easily assume that a technology or service being pitched to them is no different than what they’ve already seen or used.  While this might very well be true, more often than not the key differentiating features are simply not conveyed properly.

Effectively conveying a message about a product’s competitive advantage begins by carefully examining its true strengths – the features that make it different and better than others like it.  Its key differentiating features might be comprised not only of the product itself, but also of attributes of the people or company behind it.  Its competitive advantage might result from the quality of its materials, or from a combined set of features. 

Gaining clarity on a product’s competitive nature involves not only looking internally, but also examining the market’s challenges and the existing competitive landscape.  Through this process a company should be able to form a message that concisely, and effectively defines its product or service, and might very well discover that it must shift to a different target market or customer profile.

So, what’s in a message? - Quite a bit of research, thought and creativity.  It’s the first step in gaining an audience, which could lead to sales.  It could make the difference between a company’s success, and its failure.         

Ilan Friedman
ilan@ncompas.net
www.ncompas.net

Originally posted on LinkedIn November 2, 2015

The Secret to Fast (and effective) Global Market Penetration

Over the past fifteen years I’ve spoken with numerous Israeli executives, in various hi-tech industries, about their plans for global market penetration.  Israeli companies develop some of the most innovative technologies the world has seen, but face unique challenges as they must become export-oriented from day one.  Many executives underestimate the challenges and time frames associated with this effort, and some believe that key to their success in this endeavor relies on expertise in their specific technological field.

Without derogating from the importance of vertical technology expertise, I believe the key to gaining global recognition and traction relies more on a mixture of personality traits and on a broad range of experiences.  Technical-orientation, exposure to multiple technologies and short learning curves fill the vertical technology gap.  The rest I divide into three categories:

External: the ability to establish effective lines of communication between the company and prospective customers, partners and investors, which should ultimately lead to sales, depends on one’s cultural mindedness, relationship and trust-building skills, and language proficiency.  Also key, of course, is sales-orientation.

Internal: global marketing, business development and sales efforts are best performed by teams, which cover the various aspects of the endeavor: technical, scientific, sales, marketing, executive, etc.  An effective team leader should be responsible, authoritative, energetic, and of course – a team player.

Self: successfully addressing the many aspects involved in bringing a product from point A to B, particularly when B is someone else in the world, requires a number of basic traits: proactivity, creativity, persistence and detail-orientation.

So in summary, there is no secret to fast (and effective) global market penetration.  It’s an effort that requires a broad range of experiences, certain types of expertise, and a unique set of personality traits.

Ilan Friedman

ilan@ncompas.net

Originally Posted on LinkedIn October 12, 2015

Delivering True Value in Global Marketing, Business Development and Sales

Israeli hi-tech companies develop some of the most advanced, sophisticated, and groundbreaking technologies in the world.  A gap exists, however, in their ability to access global markets, which they work to overcome by recruiting talent that can bridge cultures, language, and relationships.  The following are key functions that, if addressed professionally, could shorten the path towards successful market entry:

• Marketing Strategy: Building an Israeli company’s strategy for penetrating global markets involves understanding the technology, its competitive value, and its target audiences; forming a vision and marketing messages that convey the desired information; and planning entry routes based on market knowledge.     
• Access and Relationships: Gaining access to global players involves a set of research skills and creativity to identify entry points and establish ties directly, or through multipliers. It requires correct and culturally-mindful messaging, communication skills that build trust, and persistence. 
• Validation: A critical element of penetrating global markets involves obtaining feedback from real potential users to determine the viability of the product, solution and strategy.
• Sales: While Sales is an integral part of most company functions, it is a discipline on its own that requires strong drive, focus, dedication and determination. My own sales methodology originates from a desire to build long-term, fruitful relationships.  This attitude requires a strong belief in the product being sold and a desire to match its capabilities with the customer’s needs.
• Partnerships: Building partnerships requires a strong element of trust-building, which becomes more challenging when dealing across borders and cultures.
• Market Research: Research is an essential part of marketing requiring creativity, resourcefulness and attention to detail.
• Marketing Communications: Business opportunities begin with clear, culturally-minded messages that effectively convey value-add. The messages can be delivered in written form via e-mail, Web Sites, news releases, brochures, presentations, and posters and signs.  They can be conveyed at trade shows and conferences, demonstrations and training sessions.  Success in this arena relies on strong intercultural communications skills, multi-cultural experience, cross-industry exposure, fluency in English, and the ability to form comfortable and trusting relationships. 

Exposure to a diverse set of cultures, strong communications skills and ability to easily establish rapport, comfort in speaking before audiences, and an ability to enlist peers are additional characteristics that could prove useful to this effort.

Ilan Friedman

Ilan@ncompas.net

Originally Posted on LinkedIn September 3, 2015

Strategic Skills

A deep gap often exists between the development of a superb technology and its successful market deployment.  The depth of the gap, however, is not always appreciated and companies end up burning a lot of cash and making some pretty significant mistakes along the learning curve.  The smart approach for growing a unique technology or solution into a profitable and competitive enterprise lies, to a great degree, in the development and execution of a sound market-entry strategy.  Developing a strategy might not be rocket science, but it does require an important set of skills and experience.  The right person should possess the following characteristics:

1. Technology Oriented: This does not typically characterize professionals in the business development, marketing and sales fields, yet being able to truly grasp the technology at hand is crucial to the following steps
2. Associative: A combination of experience, exposure, and an ability to reference similar solutions or situations
3. Extrapolative: Develop initial thoughts around market potential, marketing techniques and technology applications way before any real research is done
4. Methodical: Based on initial thoughts, lay out the foundations of strategy and its various components on a case-by-case basis
5. Sales oriented: The entire approach must be oriented towards the sale, which might mean choosing one possible direction over another or one target audience over another
6. Marketing oriented: Creative thinking about effective messages and methods of their delivery
7. Research oriented: Resourceful and organized in collecting relevant information
8. Networked: The broader and larger the network, the better, and the more indicative it is of one’s ability to establish and maintain relationships, and to communicate effectively
9. Leadership: An important skill exhibited not only in one’s ability to lead others, but also to lead oneself, to maintain discipline and direction, to oversee the process and take initiative

As inventors and entrepreneurs launch new ventures they should keep in mind the need for sound strategy and bring on board the right people to build and execute that strategy.  As Jim Collins wrote in his book “Good to Great” – “…leaders of companies that go from good to great start not with “where” but with “who.” They start by getting the right people on the bus, the wrong people off the bus, and the right people in the right seats.”      

Ilan Friedman

ilan@ncompas.net

Originally Posted on LinkedIn August 3, 2015

Attributes of Success in Business Development, Marketing and Sales

I've been involved in aspects of international business development for fifteen years, and have come across interesting viewpoints about the business development process and qualifications required.  In this post I focus on two aspects commonly discussed with young Israeli technology Start-ups looking to expand globally:

• The differentiation, if any, between business development, marketing and sales
• The level of industry/technology expertise required to do the job

In general terms, business development involved a high-level view and approach to getting a company from where it is today, to where it wants to be, or where it can be, in the future.  Marketing dives more specifically into the mechanisms for creating long-term value for the company, and sales centers on short-term generation of income.  Although this is a simplified view of the topic and the following is an incomplete outline of attributes, it might offer some high-level insight and differentiation.

Business Development, Marketing and Sales Defined

Business Development

• Gaining and understanding of the product to the point of distinguishing it from its alternatives, in the eyes of the prospective customer
• Acquiring initial knowledge about the target markets from the perspective of geography and industry at different resolutions
• Forming a vision statement, based on current knowledge
• Outlining a market-entry strategy and the tools necessary to achieve it
• Executing the strategy by stages, refined by the continuous acquisition of more accurate and realistic information and the accommodation of constraints (human or capital resources, etc.)

A professional business development person not only has knowledge and experience but also a talent for grasping technologies quickly and translating that knowledge into competitive messaging, followed by an ability to envision a complex strategy even with limited actual market information.  It is someone who successfully interacts with others, even across cultural and political boundaries, establishing trusting relationships and exploring new and creative approaches.

Marketing

• Building effective messages based on an understanding of the product, its value and competitive nature, alternatives and constraints
• Designing and building mechanisms for delivering information to prospective customers and partners, such as Web Site, brochures, presentations, trade shows, conferences, etc.

A professional marketing person doesn't only work with a commonly known set of tools, but is creative in how he or she uses those tools to effectively create long-term value for the company, translated into enduring sales.  This person is detail-oriented yet sees the big picture, possesses an ability to multitask yet bring things to a clear resolution, and knows how to identify, qualify and manage supportive resources.

Sales

Put simply, the role of sales people is to generate income as quickly as possible.  They are measured, and usually compensated by numbers.  Yet their effectiveness relies on a unique set of characteristics, which involve an ability to identify the shortest path to generating income, and executing on that path effectively.  Their success depends on knowledge of the product and the industry and the constraints and challenges that affect purchase decisions.  They communicate effectively by identifying and adjusting to the customer's personality, drivers and constraints.  They are persistent, yet courteous, and never lose sight of the dollar sign (or other currency…) that guides them.

Sales activities involve a set of attributes that are quite different from those upon which marketing or business development activities rely.  Nevertheless, to be successful, marketing and business development professionals must be sales-oriented.  The three functions can be combined at a managerial-level, although the successful integration of the three is also influenced by other factors, such as company size and stage of development, availability of specialized human capital, and more.

Technical or Industry Expertise

The assumption, by many chief executive officers, that their business development, marketing and sales professionals must possess specific experience in their industry, set of products or technologies, is not always correct.  It depends on how technical the initial interactions with prospective customers get, and what depth of knowledge they expect to receive early on in the process.  In my experience, there are only few areas where industry or technology experience and expertise are necessary for the successful implementation of either of these functions.  Instead, I believe CEOs should focus on identifying people who possess the right combination of knowledge, experience and talent to fulfil their role as business development, marketing or sales professionals.

Ilan Friedman
ilan@ncompas.net

 Originally posted on LinkedIn June 15, 2015

The Art of Launch

Israel has a plethora of young technology Start-ups, typically characterized by highly innovative technologies and out-of-the-ordinary thinking.  Since their local market is limited in size and their nearby region offers little or no opportunities, their growth could only come from expanding farther into the Americas and Europe, and often into Asia or Africa.

While Israeli Start-ups might enjoy a technological competitive advantage, they face greater global market-entry challenges because of higher costs, cultural and language differences, and gaps in understanding and/or complying with various regulations.

Launching an early-stage company into foreign markets is no simple task, but it's exciting!  To begin with, it involves different aspects of business development: refining the vision, zeroing in on the company and technology's competitive strengths, and building an initial market-entry strategy.  Target markets must be researched to gain greater insight into the competitive landscape, industry structure, geographic considerations, regulatory environment, and more.  This process is also useful in order to justify or refute company assumptions and claims and thereby modify and tighten strategy and messaging. 

Although not always done sequentially, outreach to prospective customers and/or partners typically follows.  Establishing a clear and justified strategy, built on an understanding of the market and opportunity, serves as the foundation for productive discussions with prospective partners and the design of realistic collaborative relationships.  It also proves important in opening doors to, and commencing discussions with prospective customers who need effective convincing (which they usually do…). 

The execution stage might more heavily rely on sales and marketing activities, but it remains connected with the earlier stages described above – vision, competitive messaging, and strategy, which need to be continuously revisited and re-evaluated.

With some training and experience, many could perform the tasks listed above.  One's uniqueness in outperforming the rest, at least in particular industries or geography, depends to a great degree on talent, not skill:  an ability to absorb detail, yet see the greater picture; explore the present, yet envision the future; remain realistic, while reaching to the stars.  One's ability to effectively connect and communicate with others, particularly across cultural and language barriers, is an essential element in generating successful interactions that build trust and generate opportunities.

Naturally, far more can be said about this complex and exiting topic.

Ilan Friedman

ilan@ncompas.net

Originally posted on LinkedIn June 9, 2015

Boycott Israel? Think Again...

Yesterday Stephane Richard, Chairman and CEO of Orange - France Telecom's global mobile phone operator, told reporters in Cairo that he'd gladly sever his ties with his Israeli affiliate, Partner Communications, because of Israel's policies in areas inhabited by Palestinians.  To begin with, it's a bit ironic that he'd make such a statement in Cairo, where almost 900 civilians were killed during what's locally known as the January 25 Revolution in 2011, where a growing number of people are sentenced to death as part of the government's crackdown on Islamists, and where an embargo is imposed on the Gaza Strip because of an influx of terrorist activities into Sinai.

Mr. Richard may or may not personally believe in his own statement and might just be responding to pressure by so called "human rights" or other anti-Israel organizations, nevertheless it was an unfortunate statement to make.  To be clear, organizations which push for boycotting Israel, do not do so in defense of the innocent, but rather out of racism and hatred, under the guise of battling for human rights, and those who support them either suffer from the same ailment or are naïve and uneducated about the situation in Israel and its complexity.  If human rights were truly their guiding concern, these activists would balance their outcry by extending it to other countries, organizations and regimes as well.

Had it not been for the Israeli-based R&D center of Motorola, which developed the original cell phone technology, Mr. Richard might not have been in the position to discuss this matter in the first place.  In fact, had it not been for Israeli companies, Orange customers worldwide might have had a completely different cell phone experience altogether: identity authentication was developed in Israel, as well as text and voice messaging, the cell phone camera chip, and a multitude of (revenue-making, I might add) applications used with Smart Phones (such as Waze).

Mr. Richard and anyone else considering boycotting Israel should first re-examine their reasoning as it is most likely based on racist sentiment and in any event is not justified by reality.  Furthermore, they should consider the positive impact Israeli technologies have on the lives of millions of people around the world who enjoy better communication, greater health, safety and security, and a safer and healthier environment because of the unparalleled amount of leading innovation that stems from this country.

Thankfully, enough people do not agree with Mr. Richard or those who pressured him, realizing that claims of Israeli mistreatment of Palestinians are baseless and that boycotting the country would negatively impact the lives of millions across the globe.

Ilan Friedman    

ilan@ncompas.net

Originally posted on LinkedIn June 4, 2015