IT strategy implementation

17.10.2010 Seite 1

Export Promotion Strategy for the

Macedonian Software and IT Services

Industry

The Role of GTZ in its Implementation

17.10.2010 Seite 2

GTZ Investment and Export Promotion Project

A project within German-Macedonian Development Cooperation

German counterpart: Federal Ministry for Economic Cooperation and Development

Macedonian counterpart: Ministry of Economy

Implemented by GTZ - German Technical Cooperation

First phase: June 2008 - December 2009

Second phase: January 2010 - December 2012

Project budget: EUR 2,50 million

Overall Project Goal:

The international competitiveness of the Macedonian

companies in the supported industries (textile and clothing,

automotive industry and IT/software) has grown.

17.10.2010 Seite 3

GTZ Investment and Export Promotion Project

Areas of assistance:

Investment Promotion

Export promotion:

- IT/Software

- Textile and clothing industry

- Automotive industry

Implementing partners:

• Invest Macedonia - Agency for Foreign Investments and

Export Promotion of the Republic of Macedonia

• MASIT - ICT Chamber of Commerce

• Textile-Trade Association - Textile Cluster of Macedonia

(TTA-TC)

• Automotive Cluster of Macedonia (ACM)

17.10.2010 Seite 4

4

Input Output

• 3 person-months (budget)

• 1 coordinator (GTZ)

• 2 consultants (GOPA)

• MASIT & Working Group

• Benchmark analysis of the Macedonian IT industry

• Internal analysis (company survey)

• Export market analysis (external analysis)

• 9 business leads from German companies

• KM system introduced (SharePoint)

• Development of Export Promotion Strategy

• Collaborative strategy development

• Joint learning process & organizational knowledge

• Basis for successful strategy implementation

Results of Previous Project Phase

17.10.2010 Seite 55

GTZ Project Goals (Second Phase):

Support the implementation of the Export Promotion Strategy

Increase the international competitiveness of the Macedonian software industry

Successfully position the Macedonian software industry in export markets (DACH)

Provide specialized export promotion & training services to MASIT members

Achieve tangible results for the industry & companies (increase export volume)

Overall Goal of the Export Promotion Strategy:

To establish Macedonia as a well-recognized brand for specialized, high-quality

outsourcing services and software products within Europe, based on systemic

competitiveness, company excellence and superior customer value.

Strategy & Project Goal

17.10.2010 Seite 6

6

Strategic

Measures

Export

promotion

policy

Quality &

company

excellence

Export-oriented

investment

Export

capabilities

& knowledge

Clusters &

collaboration

Int. branding

&

positioning

1 2 3 4 5 6

Overview: Strategic Measures

17.10.2010 Seite 77

Improving the export promotion policy for the software industry

Rationale:

• Establishing the framework conditions conducive to the internationalization of the Macedonian software industry

• Improving competitiveness and export capabilities (software export capability model)

• Proactive policy formulation in collaboration with companies (SMEs)

• Mainly responsible: ministries

1

Implementation Strategic Measure 1:

Export Promotion Policy

17.10.2010 Seite 88

Strategic Measure 1: Export Promotion Policy

17.10.2010 Seite 9

9

Activity: Special Job Section on MASIT Website

Example IT Cluster

Regina Aachen: HR Service

“1 application 100 recipients”

Scope:

Professionals

Graduates

Vocational education

Internships

Thesis

Task 1.3: Increase Job Attractiveness of Software Industry

http://www.mfg.de/

17.10.2010 Seite 1010

Activity: Develop a trade fair participation program

• Budgets

• Organization

• Processes

• Tools

Europe:

• CeBIT

• SMAU

• Internet World

North America:

• INFOCOMM

• Outsource World

• IT360 Expo

Middle East:

• GITEX

• CAIRO ICT

• COMPUTAX

Task 1.6: Export Promotion Program for Software Exporters

17.10.2010 Seite 1111

Macedonian IT Industry

Barometer

Culture & language barriers

Technical standards / requirements

Lack of technical skills

Costs of exporting

Lack of qualified staff to conduct export

Legal aspects

Lack of export marketing know-how

Lack of export-oriented trainings / consulting

Market information

Lack of support by government

Visa requirements

Lack of business contacts

Lack of interest/awareness among clients

Finding business partner

Lack of branding

%

Not Problematic Somehow Problematic Little Problematic

Problematic Very Problematic Highly Problematic

Task 1.7: Introduction of an Industry Barometer

17.10.2010 Seite 1212

Improving international branding and positioning

Rationale:

• Lack of branding has been identified as a primary obstacle to Macedonian software exports

• Increasingly important due to intensifying competition within the offshoring market

• Important source of differentiation (“focused differentiation”)

• Create awareness, visibility and recognition for the Macedonian software industry

• Clearly defined core brand values: quality, company excellence, customer value

2

Implementation Strategic Measure 2: Branding &

Positioning

17.10.2010 Seite 1313

Strategic Measure 2: Branding & Positioning

17.10.2010 Seite 1414

Activity: Training on trade fair management & business

development

Success factors

Trade fair action plan

Before the fair: planning & preparation

The marketing-mix

Preparing marketing material

Business development process

Mailing & telemarketing

Using Web 2.0 and social networks (e.g. XING)

During the fair: management at the booth

Sales techniques

After the fair: follow-up

Task 2.3: Events

17.10.2010 Seite 15

15

Activity: Participation at trade fairs & IT events

Financial support for Macedonian booth at CeBIT 2011 by GTZ

Consulting: preparation, implementation and follow-up

Mailing & arrangement of B2B meetings

Participation at BITKOM Outsourcing Forum

Task 2.3: Events

17.10.2010 Seite 16

16

Macedonian IT Promotion

Network

Objectives & activities:

Promote cooperation (B2B)

Branding & positioning

Joint EU-projects

Joint events & roadshows

Networking & match-making

BITKOM

Fraunhofer

SFS

bwcon

LiSOG

Hessen-IT

BICC-NET

MFG

Cooperation

Network

Task 2.4: Macedonian IT Promotion Network

http://www.mfg.de/

17.10.2010 Seite 17

17

MASIT-Website

Functions:

About us

Objectives

Activities

Cluster services

Events

e-Catalogue

Partners

Search

Groupware Log-in

Business request

Contact

Task 2.5: Web marketing & positioning

17.10.2010 Seite 18

18

Example SSC:


http://www.mfg.de/

17.10.2010 Seite 19

19

Example CroICT:


17.10.2010 Seite 2020

Example: online catalogue

(BASSCOM)


17.10.2010 Seite 2121

Promoting clusters and collaboration

Rationale:

• Tool for export promotion: collaborative planning & implementation of export activities

• Examples: Serbian Software Cluster (SSC), BASSCOM, RUSSOFT

• Key benefits: economies of scale, better visibility, cost reduction, bundling of competences, improved access to information and markets

• Tool for international branding and positioning

• Enabling specialization and adaptability

• One-Stop-Shop for potential clients

• Cost-effective provision of export-oriented cluster services

3


Clusters & Collaboration

17.10.2010 Seite 2222

Strategic Measure 3: Clusters & Collaboration

17.10.2010 Seite 23

23

Strategy & Business Plan x

Organizational Structure

Cluster Services

Project & Process Management

Marketing & Communication

Information & Knowledge Management

HR Management

Financing

Monitoring & Evaluation

Change Management

x

x x x

x x x

x x

x x

x x

x x x

x x

x

Phase

3

Phase

2

Phase

1

Cluster Management Topics

Task 3.2: Export-oriented IT/Software Cluster

17.10.2010 Seite 24

24

form

Company

Key Account SPS II

enquiry

Process

enquiry

Send enquiry

via

distributor

enquiry

Student Association

Student Association

Student Association

Student Association

Students

Students

Students

Students

Students

Students

Students

@

reply

EDU Group

BASSCOM

Task 3.5: Cooperation with UniversitiesActivity: Student Placement Service (cluster service)

Example: Student Placement Service

(BASSCOM)

17.10.2010 Seite 2525

Activity: Training & capacity building of promoters

Introduction into the Macedonian software / IT industry

Software / IT-services marketing

Outsourcing models

Business development in the IT industry

CRM and key account management

Mailing & telemarketing

Using Web 2.0 and social networks (e.g. XING)

Sales techniques (e.g. SPIN)

Task 3.8: Joint Sales Structure

17.10.2010 Seite 2626

Strengthening export capabilities and knowledge

Rationale:

• Development of capabilities which reflect demand / requirements of potential export markets

• Permanent need for upgrading and updating capabilities

• Key problem: limited resources of SMEs

• Lack of export-oriented training & consulting identified as major obstacle

• Cluster services: providing training & consulting services more efficiently and at lower prices (Cluster Academy)

• Provision of relevant market information: market and customer orientation

4


Export Capabilities & Knowledge

17.10.2010 Seite 2727

Strategic Measure 4: Export Capabilities & Knowledge

17.10.2010 Seite 28

28

Cluster Services

Provide specialised services for

companies

Generate concrete, tangible benefits

for companies

Increase competitiveness

Aggregate demand & reduce costs

Attracting new members

Income generation for MASIT

Ensure sustainability

Cluster Services (training & consulting)

Technical trainings

Tender management training

Management trainings

Export consulting & information service

B2B export promotion service

Tender information service

Competitiveness

Strategic Measure 4: Export Capabilities & Knowledge

17.10.2010 Seite 2929

Activity: MASIT Academy

Training program:

Technical trainings

Management trainings

Budget & resources

Organizational structure

Processes

Documents

Quality management

Example: Academy IT Cluster bwcon (DE)

Task 4.1: Export-oriented Training Services

17.10.2010 Seite 3030

IT project management

Business process analysis and

modelling

Software marketing

Export marketing

HR management

EU projects (acquisition & management))

Mode of delivery:

• Intensive trainings

• Interactive learning workshops

• Impulse presentations

• Technical documentation

• Unified Modelling Language (UML)

• Open Source Software (OSS)

• SAP

• Software engineering

• ISO, ITMark (ORF-Project)

• ITIL

Technical TrainingManagement Training

Task 4.1: Export-oriented Training Services

Activity: MASIT Academy

17.10.2010 Seite 31

31

Activity: Export Consulting & Information Service

Market analysis: export target markets (DACH)

Macroeconomic overview

ICT market

Software segment

IT services segment

IT consulting

Outsourcing/offshoring

IT trends

Market studies, reports, events

Company databases & addresses (e.g. ISIS)

Workshops: export & international marketing

Task 4.2: Export-oriented Consulting Services

17.10.2010 Seite 3232

Activity: B2B Export Promotion

Service

Identification of potential target groups

IT industry

Verticals

Conduct mailings & marketing activities

Generation of business leads:

Date

Company name

Website

Cooperation profile

Contact details

Follow-up and PM support

Cluster promotion fund (?)

Task 4.2: Export-oriented Consulting Services

17.10.2010 Seite 33

33

C

C

C

C

C

C

C

C

C

Contract

Lead CompanyCluster Management

enquiry

Client

Cluster Partners

lead

SharePoint

Consortium

Cluster

Project ManagementProject Implementation

M&E

Target Market

Example Process Management: Export Promotion Service (B2B)

Cu

sto

mer

Clu

ste

r C

om

panie

sC

luste

r M

anag

er

1

develop

marketing material

marketing material2

conduct mailing

mailing material

3

customer

interested?

reply form / RFQ

6

process enquiry

7

identify cluster

companies

8

send out business

lead

business lead

9

develop proposal

proposal

10

proposal

accepted?

11

prepare contract

contract

13

sign contract

12

review contract

14

project

implementation

15

QM

project report

C

16

accepted?

17

payment

5

fill in reply form4

feed-back

no

yes yes

no

yesno

In: process cluster promotion

fund

Task 4.2: Export-oriented Consulting ServicesActivity: B2B Export Promotion Service

17.10.2010 Seite 3434

Task 4.4: Development of an Export ManualManual for export marketing of companies

Internal Analysis: Strengths / Weaknesses

External Analysis: Opportunities / Risks

Company

Partners

Customers

Competitors

Context

Situation

Analysis

Objectives Segmentation &

Positioning

Product

Price

Place

Promotion

Marketing

Mix

Marketing

Controlling

Value

Proposition

People

Processes

17.10.2010 Seite 3535

Fostering quality and company excellence

Rationale:

• Quality plays a crucial role for international branding and positioning

• Working according to clearly defined rules and norms: trust building

• Competitiveness: quality + efficiency

• Important source for differentiation

• Example: massive investment of Indian companies into CMMI

• Company excellence: qualification and expertise of staff

• Investments into education, training and HR management

5

Implementation Strategic Measure 5: Quality &

Company Excellence

17.10.2010 Seite 3636

Strategic Measure 5: Quality & Company Excellence

17.10.2010 Seite 3737

Activity: Training in HR management

Strategic management

Corporate performance management

Psychology & motivation

Compensation & benefits

Integrated HR management

Employee retention management

Employer branding

Personell development

Team building

Task 5.5: Promote HR Excellence

17.10.2010 Seite 3838

Promoting export-oriented investment

Rationale:

• Interrelation between export and investment promotion

• Example of the importance of export-oriented investment: Irish IT industry

• Adoption of new management methods

• Technology transfer and innovation

• Intermediate mode of internationalization (indirect foreign market access)

• But: danger of crowding-out effects and sharply rising labour costs

6


Export-oriented Investment

17.10.2010 Seite 3939

Strategic Measure 6: Export-oriented Investment

17.10.2010 Seite 40

40

Activities:

Information workshop: indirect internationalization

Business opportunities through intermediate mode of internationalization

International best practice examples (e.g. Ireland)

Best practice examples from Macedonia

Potential target groups

Needs assessment

Definition of product and service portfolio

Match-making events & linkage

Presentation of products and service portfolio of Macedonian software / IT

companies

Match-making between Macedonian software / IT companies and foreign

investors (MNCs)

Follow-up and sales support

Task 6.6: Promote Intermediate

Mode of Internationalization

17.10.2010 Seite 4141

Project Team

Lucas von Zallinger

Claus Traeger

Alexander Kuntz

Tobias Mollin

Prof. Dr. Hans-Günter Lindner

Valentina Nushkova

Project duration: 06/2010 – 12/2012

Resources

Int. consultants: 10 pm

Overall budget: > 300.000 EUR

Project Resources

17.10.2010 Seite 4242

Contact:

[email protected]

Thank You!

mailto:[email protected]

IT strategy implementation

Documents

Transcript of IT strategy implementation