Strategy Framework Intranet

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  • STRATEGY FRAMEWORKFOR SUSTAINABLE ECONOMIC AND INDUSTRY DEVELOPMENT(AND FOR DETERMINING AND PRIORITISING THE ROLE FOR GOVERNMENT)Corporate Strategy and PolicyPIRSA, Govt. of South AustraliaNotes

    BackgroundThe South Governments reform agenda has a strong emphasis on initiatives that improve policy and service delivery integration and cooperation across agencies. The government has declared that it is essential that those cross-agency initiatives which are critical to delivering the Governments reform agenda are identified and addressed appropriately in the planning and budget process.The role of Strategy Framework is to provide a tool that better enable PIRSA identify and respond to the key issues facing South Australia and engender a joined up approach to the Governments reform agenda that is characterised by collaboration across divisional, agency and jurisdictional boundaries; and that is responsive to the strategic needs of PIRSAs key constituents and stakeholders. As well as being a tool for collaboration with industry and the community, it aims to provide a coordinated, consultative and coherent input into the Governments planning and budgeting processes. The ultimate purpose of this role is to facilitate and assist the primary and resources industries enhance sustainable economic growth.Contact:Tim Mares, Director Corporate Strategy & PolicyPrimary Industries and Resources SAGPO Box 1671Adelaide SA 500108 8226 0516mares.tim@saugov.sa.gov.au

  • Overview

    Government Program determining the appropriate contribution from Government Notes

    The framework has five levels of analyses as the planning and decision-making focuses down from broad industry visions to specific Government actions. The discussions move from setting targets for industry growth and identify opportunities for industry development, down to the resource allocation decisions made by PIRSA Groups to assist industry to capture particular opportunities.1 Outcome. At this level the industry Government discussions set targets for accelerating wealth generation in South Australia. The process starts with the vision from industry leaders of what could be achieved. Industry scorecards and the Monash model of the South Australian economy are used to measure past trends and potential gains to the South Australian economy from productivity enhancements captured by industry on both the supply and demand sides. Scenario building indicates where the market opportunities are, and which industries might have the greatest potential for growth.2 Strategy. The aim is to capture sustainable economic development. The Michael Porter model for determining industry competitive advantage is used as the common framework for industry analysis. It helps identify the impediments to growth in specific industries and potential opportunities that should be pursued.3 Government Programs. Given a policy orientation toward industry self-mobilisation, what is the role of Government in industry capturing the identified opportunities for growth, and what should industry be expected to do for itself? If Government has a role, what is the most efficient and effective form of intervention, and which Agency is best equipped to intervene? Tools used to help answer these questions include Agency portfolio statements, market failure analysis and industry strategic plans.4 PIRSA Programs. The aim is to maximise economic benefits to South Australia from Government investments in economic development. The issue for PIRSA is to determine the suit of programs that maximises the sustainable economic return to South Australia. Tools used to help determine those optimal investments include benefit cost analysis, the Monash model to determine the impact of investments on Gross State Product and employment, and PIRSA Group business plans.5 PIRSA Input. On the principle of beneficiary pays, what is the appropriate sharing of the costs of Government intervention between the public and private beneficiaries? The tools used to help determine the appropriate balance are a public private benefit analysis and a cost recovery model similar to that recently published by the Productivity Commission.

  • Outcome: Getting to Accelerated Wealth Generation

    Inter relationship between PIRSA outcomesNotes

    1 Outcome. At this level the industry Government discussions set targets for accelerating wealth generation in South Australia. The process starts with the vision from industry leaders of what could be achieved. Industry scorecards and the Monash model of the South Australian economy are used to measure past trends and potential gains to the South Australian economy from productivity enhancements captured by industry on both the supply and demand sides. Scenario building indicates where the market opportunities are, and which industries might have the greatest potential for growth.Importantly, economic growth should be undertaken with recognition that environmental and social outcomes need to be attained.The Diagram shows how outcome - getting to sustainable economic development - is linked to the strategic priorities of PIRSA as illustrated by our Outcome 1-5 goal posts. PIRSA has developed measures for monitoring and assessing these outcomes.

  • Each industry requires its own vision and growth targets

    Typical industry lifecycle characteristicsTIMEGROWTHNotes

    As industries develop and grow over time from an embryonic to a mature state, the requirements of each industry to maintain its growth typically change. Hence the strategies that the industry may wish to pursue to achieve development targets and the forms of assistance that an industry may seek will depend to an extent on where it is placed on the industry life cycle curve.Typically, an industry can pass through a number of phases, Emerging, Growth, Mature, Regeneration or Decline. To contribute to a regions on-going economic development and prosperity it is necessary that industries aim to attain or remain in a growth phase.Achieving growth in an increasingly globalised environment requires industries to be internationally competitive.

  • Conditions for International Competitiveness

    Porters DiamondNotes

    Professor Michael Porter of Harvard University found that firms or industries gain and sustain competitive advantage in international competition through improvement, innovation and upgrading. These are ongoing dynamic processes, which demand continuing commitment both to perceive and act on opportunities. Porter identified four determinants of competitive advantage that shape the industrial environment of a regions firms. The determinants are the forces within a nation that provide firms with the pressures, incentives and capabilities to undertake necessary improvement and innovation.Factor conditions are the inputs necessary to compete in an industry, such as labour, arable land, natural resources, capital and infrastructure. Factors can be divided into basic factors and advanced factors. The factors most important to modern competition are not inherited, but created. Thus, a nations stock of factors at any particular time is less important than the rate at which they are created, upgraded, and made more specialised for particular industries. States that continually invest in the creation of advanced and specialised factors often translate these investments into industrial success.Home demand conditions play an important role in the creation of a State's competitive industries. Firms often succeed in industries where the presence of particularly sophisticated and demanding customers forces them to sharpen their performance at home. A State's firms often gain competitive advantage in industries where the home demand anticipates foreign demand and therefore gives local companies a clearer or earlier picture of emerging buyer needs. It is the quality of demand in particular industry segments that is critical to success, rather than its size. The third broad determinant is firm strategy, structure and rivalry, which encompasses the conditions in the region governing how companies are created, organised, and managed, and the nature of domestic rivalry. Many aspects of a state influence ways in which firms are organised and managed. Some of these include social norms and attitudes towards business, which are often reflected in government policy. These in turn grow out of the educational system, social and religious history, family structures and other unique national conditions. The socio-political environment structure and context tends to have a distinct impact on the kinds of industries in which a region achieves international pre-eminence.Related industries are those that share common technologies, inputs, distribution channels, customers or activities, or provide products that are complementary. World-class related industries can provide firms with sources of technology, ideas, individual and potential competitors that can be advantages in international competition. States typically are competitive in clusters" of related and supporting industries. The complex web of interactions within these clusters can provide a major source of competitive advantage throughout the entire economic system. Often such clusters are geographically concentrated, making the interactions closer and more dynamic.

  • STRATEGY: Getting to Sustainable International Competitiveness

    Develop a ready access to knowledge, skilled workforce, physical resources, capital and infrastructureLand, water, resourcesRoads, ports, railCourses, graduatesManagement resource baseResearch and developmentHuman capitalMaintain the sustainable integrity of the natural and social environmentBio-securityClean and greenDisease-free statusBio-diversityDevelop a discerningdomestic marketLeveraging domestic characteristics intoexpor