In the context of rapid changes in the industrial environment and the uncertainties stemming from the US-China trade war, how would Delta duplicate the experience of its business development in the EMEA and improve its business performance locally? Following recent adjustments in Delta’s Southeast Asia (SEA) organization, in this issue of Brand News we interview Jackie Chang, Vice President of Delta SEA, and ask him to analyze market opportunities and challenges, and share his plans for SEA as well as his management insights after more than 26 years at Delta.
Cultural Diversity Developing business according to local conditions
In May of this year, Vice President Jackie Chang, with his rich experience in market development and management in the EMEA region, was transferred to become Vice President of Delta SEA. The EMEA region includes Europe, Russia, the Middle East and Africa, while the SEA region includes India, Australia, New Zealand, Singapore, Thailand, the Philippines and Malaysia. “Both regions cover a large area, with cultural diversity and high management complexity. In terms of resources and labor, EMEA emphasizes simplification and efficiency. In contrast, due to differences in culture and structure, SEA has relatively loose use of labor and resources.” Chang points out clear differences between the two regions.
In employee management, brainstorming often occurs between EMEA employees and management, while in SEA, except for India, Singapore, Australia and New Zealand, employees’ are relatively more acquiescent, and provide less feedback. The SEA region also pays more attention to professional titles. The SEA needs localization, just like EMEA, due to language differences. Chang puts forward that the SEA business and FAEs should try to use local talent to cultivate customers.
Compared with the EMEA, the SEA region has relatively more government regulations, so it is more important to maintain government relations, which can also have an impact on customer management. It is also necessary to properly communicate with the local people. For example, general elections were recently held in many countries in the SEA region, causing the suspension of construction projects for nine months to one year, which had a great impact on product promotion. Chang required that the signing of project contracts should be completed six months before the elections. This was a very different experience compared to managing in the EMEA.
Promote Sales Platforms Strengthen resources for excellent performance
In terms of business unit, IABG and CISBU teams have relatively complete sales platforms. It’s commendable that Delta achieved the No.1 market share for electric vehicle chargers in New Zealand and the market share for solar inverters in India is also No.1 with limited resources. Though some products have achieved good results, Delta’s allocation of resources in key countries is incomplete due to the varying degrees of development and product demand in SEA countries, and it will face more challenges in the future. Chang adds, the responsibility of management is to assist in the “allocation of necessary resources and manpower on sales platform”. The localization of sales platforms should be implemented as soon as possible, and more regional heads with new thinking must be cultivated for a better response to customers. SEA will be divided into different areas similar to practices of Delta Greentech. After 2020 India will be the focus for in-depth business promotion.
Group photo of Mr. Shenyen Hsieh (fifth from left), President of SEA, Mr. Jackie Chang (fourth from left), Vice President of SEA, senior executives from DET (three on the left), and Nissan representatives during the MOU signing ceremony
“In terms of regional complexity and importance, business units have previously focused on China, the United States, Europe and SEA in that order. Before I took this position, people remarked jokingly that the pace in SEA would be slower.” With amusement, Chang continued, “But after actual contact, the trade issue between China and the United States has strengthened the strategic importance of the SEA. At a recent strategy meeting, we defined three key countries for the SEA: India, Thailand and Singapore. Thailand has a sound financial system and infrastructure, and can be regarded as a central hub for developing the neighboring countries of Indochina, such as Myanmar, Vietnam and Laos. Singapore is a highly developed country, and actual performance in this country helps promote business in Indonesia, Malaysia, Australia and New Zealand and the Philippines. Using these three key countries as a beachhead to support neighboring countries will be an important development strategy. Vietnam, Indonesia and the Philippines will be our next focus for development after the three key countries and will allocate resources to possible manufacturing transfer targets in the future.”
In view of the three major business areas, Delta’s infrastructure and automation business already have a certain base in SEA, and Chang is quite optimistic about the power supply and components business. Although there are not many key accounts, service-oriented businesses and start-up companies are rising, such as food delivery services, FinTech, medical care and the machinery industry. Businesses in these areas will have good opportunities in the future.
Vice President Chang received the Frost & Sullivan 2019 Best Practices Awards on behalf of Delta in Malaysia. In the category of electric vehicle (EV) charging, Delta was also honored with the award of "the Best Corporation for EV Charging in Thailand"
Industry Transformation India’s domestic market is huge
According to a forecast by the International Monetary Fund (IMF), India's economic growth is expected to reach winning 7.4% in 2019. Chang shares his plans for India. “Under the management of the former General Manager, Dalip, India's business is very impressive, and we will pay more attention to India in the future.” Chang set the tone for India's important strategic position.
Although the United States announced the termination of 2000 items for zero-tariff treatment of India’s exports to the United States from June 5, the tariffs are still lower than those of other countries. Because of its large domestic market, India may be a suitable manufacturing place in the future. Due to serious pollution in India and active environmental governance, the National Electric Mobility Mission Plan announced it is planning for six to seven million electric vehicles on the road in 2020, with 30% e-mobility to be reached in 2030. After the overwhelming re-election of Indian Prime Minister Modi, in addition to the continuation of e-mobility as one of India’s national development priorities, there will also be considerable business opportunities in water resources, electricity, building automation, pollution treatment and infrastructure projects, which is the direction of Delta’s focus.
“India’s large domestic market supports a high demand for communications power supply, and the government is actively building renewable energy. It predicts that communication power, solar and wind power generation will continue to grow after the 5G take-off in 2020. In response to the increase in manufacturing, coupled with the government’s promotion of “Made in India” and intelligent cities, the sectors with good growth momentum will include industrial automation, factory automation, data centers, intelligent cities, security monitoring and building automation. India accounts for 13 of the top 15 cities with air pollution in the world, There will be great business opportunities for related industries under the government’s reform plans. Since India’s infrastructure is not yet complete, businesses related to power quality and railway electrification are also targets for active promotion.” Chang then summed up Delta’s direction for strategic development in India.
Strive for Perfection Doing the utmost to contribute
When Chang joined Delta in 1992, the international trade business of the company was just unfolding. He majored in a foreign language and started from inside sales. At that time with his ability to study actively and negotiate with customers, he was highly valued by the General Manager of EMEA. He was invited to go to the United Kingdom to help start foreign business. To date, his accumulated management abilities have led EMEA to have significant growth in the branded business.
Chang comments on his work attitude over the years:
- Attitude determines height and breadth.
- Don’t think of work as work alone, but as managing the business of your own company.
With Delta’s increasingly large organization and complex products, Chang believes that employees with a positive learning attitude will have a bigger role. He gave an example, with Delta’s product diversification of, apparently irrelevant products can produce a comprehensive effect on sales after integration. “Take video products as an example, which can be used in shopping centers and digital advertising boards. However, if video products are used as the medium for information transmission, they can become a stepping stone for promoting intelligent city solutions to customers.”
Vice President Chang took photos with the participating professors during certificate granting ceremony at the Delta Academy of Industrial Automation
“Be glad to do it and be willing to take it on. This is my favorite saying.” Starting from the grassroots, Chang still works hard every day. “Life is a learning process. Many people like to compare and take a passive attitude in the workplace, but for positive people, it is adapting to the situation and learning quickly. Every job has many opportunities and many hopes.” says Chang, encouraging all his colleagues as the interview ends.