Asian Century Solutions
Assess, Launch and Grow Your Business in Asia

Case Study - SE Asia Distributor Recruitment for Data I/O

 

Challenge: Data I/O Corporation (”DIO”) is the global leader in programming solutions for semiconductor devices. For 35 years, DIO’s innovative design, new product introduction and manufacturing programming solutions have contributed to the success of the world’s leading electronics and technology companies. DIO’s FlashCORE ™ technology is the choice of leading manufacturers of wireless devices, handsets, television/set top boxes, digital cameras, automotive electronics, appliances and industrial products.

 

In light of DIO’s global success, performance in SE Asia was proportionately lower than the presence of electronics manufacturers in the region indicated should be achievable. Data I/O decided to change their strategy for distribution in SE Asia.  DIO needed help finding a distribution partner that matched well with their strategic goals.

 

What ACS Did: ACS implemented a three phase distributor identification, assessment and selection plan for DIO. Each phase had its own deliverables and payment terms. DIO was able to decide at the end of each phase if and when to proceed with ACS to the next phase.

 

  • Identification: ACS utilized its industry knowledge, network of relationships and second hand data sources to identify in 6 countries across Asia 50+ companies that met DIO’s partner profile, which ACS helped DIO to describe in quantitative and subjective terms. This process took about two weeks.

 

  • Assessment: ACS developed with DIO criteria and weightings for each criteria to come up with a numeric score for each partner candidate. This process required two teleconferences, a few emails, and about 3 days to complete.

 

 

The three primary characteristics the criteria were used to quantify were:

 

1. Big Enough to Matter: Does the candidate have the geographiccoverage, customer relationships, financial strength, technical skills, and management depth to achieve significant success?

 

2. Small Enough to Care: Will DIO be a strategic addition to the candidates business such that DIO will receive the resource and mindshare necessary for significant success?

 

3. Competent Enough to Win: Has the candidate demonstrated the ability to consistently win? Do they have the revenue focus, sales process discipline, and entrepreneurial innovation necessary to achieve significant success?

 

 

ACS grouped the criteria into these three categories and applied the scoring tool to the list of candidates.

 

  • Selection: The Assessment phase resulted in a short list of 7 candidates. ACS then contacted each company for initial face to face or telephonic meetings with the senior management of each to confirm the candidate’s interest in partnering with DIO. Of the 7, in-depth discussions were conducted with 4 candidates. Of these, one clear winner, Le Champ Pte Ltd, emerged. Le Champ met all three criteria exceptionally well, and the management team was very eager to bring DIO’s solutions to their customers. After a few rounds of information exchange and contract review, DIO and Le Champ were ready to begin collaboration. Nick Deppen, DIO’s Director of Asia Pacific Sales, came out for contract signing, sales training, and participation in an exclusive interview with Electronics Manufacturing Asia regarding the new alliance and DIO’s value proposition. The selection process, through to contract signing, took about one month due to travel schedule related delays.

 

This assignment required semiconductor and electronics manufacturing

industry expertise not present within ACS’s current workforce. So, ACS’s ACS obtained the necessary expertise by recruiting an industry expert as an independent contractor. David Fleischer of Catalyst Partners Asia  leveraged his 20+ years in the semiconductor industry to execute the ACS distributor recruitment plan quickly and professionally.

 

When the agreement with Le Champ was signed, Nick Deppen said, “ACS told me that they would apply a structured approach to finding the right partner for us and quickly forging the relationship, and that is exactly what they did.”

 

This assignment required semiconductor and electronics manufacturing

industry expertise not present within ACS’s current workforce. So, ACS’s first step in the process was to obtain the necessary expertise by recruiting an industry expert as an independent contractor. David Fleischer of Catalyst Partners Asia  leveraged his 20+ years in the semiconductor industry to execute the ACS distributor recruitment plan quickly and professionally.