1. After integration with the EU, internationalization and benefits Tiit Vapper Example of software development & distribution With the support of the European Commission

2. Software- a Specific Business  Software Development  Software Sales  Training  Support & Maintenance  Consultancy No heavy goods, complicated transport & logistics Electronic transfer is a “service” Language- specific (localization, int-lization) Multiple versions to maintain Knowledge- based

3. Countries 160 181 104 76 37 29 37 180

4. Real Systems: 9 years of exporting: Founded in 1993 Proportion of export has been 60-90% of revenues of the last 5 years Exporting to 15 states, 3 (Latvia, Lithuania, Finland) of them belong to the EU Most of the customers are public institutions Export- markets have special segmentation (LE or e-Gov)

5. Products & Sales Objects Software for criminal analysis and investigation o law enforcement, banks, telecoms, … Public & Enterprise-level Information Systems/ Registers o Business Register, prisons, Tax Board, post, vehicle registration, etc.  Software  Training  Support & Maintenance  Consultancy

6. Internationalization The Structure of Sales –Direct Sales (EU) –Subsidiaries (3rd countries) –Partners (& Agents) Organizational development is easier for the members of the EU (more information) Business development is easier for the members of the EU, due to the helping institutions in your market states in the EU and outside

7. Changes and Barriers After Joining the EU In general- the borders of a country have become vastly wider- new borders are of the Union Real Systems has not noticed anything that could be called “a barrier” in business for the 3rd countries that has not existed before joining the EU Customs formalities have disappeared inside the EU; it’s like in the past for the 3rd countries. Taxation is not less or more complicated. EU bureaucracy has replaced much of the local one

8. The Main Benefits (1) More funding for your (potential) customers (mostly public) More funding for business support (like “Enterprise Estonia”) More support structures for business (diplomatic, business, lobbying, etc.) More initiatives (pan-European, border countries, …)

9. The Main Benefits (2) Euro is an essential benefit- the fixed currency rate (1 EUR= 15,6466 EEK ) is like belonging to the Euro fiscal zone EU does not offer any reputation to a company, it has to gain it’s own. But it gives the chance to make business easier with it while knowing the general EU standards. The EU border- countries and potential new members try to adopt the EU ways of business

10. Thank you for your attention! www.realsystems.eu