Presentation held by Ms. Valentina Nushkova as a part of the ICT the enabler for business development in the region Session at the 8th SEEITA and 7th MASIT Open Days Conference, 14th-15th October, 2010

1. Export Promotion Strategy for the
Macedonian Software and IT Services
Industry
The Role of GTZ in its Implementation
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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.
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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)
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4. 4
Results of Previous Project Phase
Input Output
• 3 person-months (budget) • Benchmark analysis of the Macedonian IT industry
• 1 coordinator (GTZ) • Internal analysis (company survey)
• 2 consultants (GOPA) • Export market analysis (external analysis)
• MASIT & Working Group • 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
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5. Strategy & Project Goal
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.
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)
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6. 6
Overview: Strategic Measures
Strategic
Measures
Export Int. branding Export Quality &
Clusters & Export-oriented
promotion & capabilities company
collaboration investment
policy positioning & knowledge excellence
1 2 3 4 5 6
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7. Implementation Strategic Measure 1:
1 Export Promotion Policy
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
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8. Strategic Measure 1: Export Promotion Policy
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9. 9
Task 1.3: Increase Job Attractiveness of Software Industry
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
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10. Task 1.6: Export Promotion Program for Software Exporters
Activity: Develop a trade fair participation program
Europe:
• CeBIT
• SMAU
• Internet World
North America:
• Budgets • INFOCOMM
• Organization
• Outsource World
• Processes
• IT360 Expo
• Tools
Middle East:
• GITEX
• CAIRO ICT
• COMPUTAX
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11. Task 1.7: Introduction of an Industry Barometer
Macedonian IT Industry
Barometer
Lack of branding
Finding business partner
Lack of interest/awareness among clients
Lack of business contacts
Visa requirements
Lack of support by government
Market information
Lack of export-oriented trainings / consulting
Lack of export marketing know-how
Legal aspects
Lack of qualified staff to conduct export
Costs of exporting
Lack of technical skills
Technical standards / requirements
Culture & language barriers
%
Not Problematic Somehow Problematic Little Problematic
Problematic Very Problematic Highly Problematic
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12. Implementation Strategic Measure 2: Branding &
Positioning
2
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
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13. Strategic Measure 2: Branding & Positioning
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14. Task 2.3: Events
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
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Task 2.3: Events
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
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Task 2.4: Macedonian IT Promotion Network
Macedonian IT Promotion
Network MFG
BITKOM BICC-NET
 Objectives & activities:
 Promote cooperation (B2B)
 Branding & positioning
 Joint EU-projects Fraunhofer
Cooperation
Hessen-IT
Network
 Joint events & roadshows
 Networking & match-making
SFS LiSOG
bwcon
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Task 2.5: Web marketing & positioning
MASIT-Website
Functions:
 About us
 Objectives
 Activities
 Cluster services
 Events
 e-Catalogue
 Partners
 Search
 Groupware Log-in
 Business request
 Contact
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Task 2.5: Web marketing & positioning
Example SSC:
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19. 19
Task 2.5: Web marketing & positioning
Example CroICT:
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20. Task 2.5: Web marketing & positioning
Example: online catalogue
(BASSCOM)
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21. Implementation Strategic Measure 3:
3 Clusters & Collaboration
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
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22. Strategic Measure 3: Clusters & Collaboration
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Task 3.2: Export-oriented IT/Software Cluster
Cluster Management Topics
Ph
Ph
Ph
a se
a se
a se
1
2
3
Strategy & Business Plan x
Organizational Structure x
Cluster Services x x x
Project & Process Management x x x
Marketing & Communication x x
Information & Knowledge Management x x
HR Management x x
Financing x x x
Monitoring & Evaluation x x
Change Management x
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Task 3.5: Cooperation with Universities
Activity: Student Placement Service (cluster service)
Example: Student Placement Service
(BASSCOM)
BASSCOM
Students
Student Association
Students
form reply
Students
Student Association
Send enquiry
enquiry
via @
Company distributor Students
enquiry
Student Association
Students
Students
Process
enquiry
EDU Group
Student Association
Students
Key Account SPS II
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25. Task 3.8: Joint Sales Structure
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)
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26. Implementation Strategic Measure 4:
4 Export Capabilities & Knowledge
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
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27. Strategic Measure 4: Export Capabilities & Knowledge
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Strategic Measure 4: Export Capabilities & Knowledge
Cluster Services Cluster Services (training & consulting)
 Provide specialised services for
companies Technical trainings
 Generate concrete, tangible benefits
for companies Management trainings
 Increase competitiveness
 Aggregate demand & reduce costs Tender management training
 Attracting new members
Competitiveness
 Income generation for MASIT
Export consulting & information service
 Ensure sustainability
B2B export promotion service
Tender information service
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29. Task 4.1: Export-oriented Training Services
Activity: MASIT Academy
 Training program:
 Technical trainings
 Management trainings
 Budget & resources
 Organizational structure
 Processes
 Documents
 Quality management
Example: Academy IT Cluster bwcon (DE)
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30. Task 4.1: Export-oriented Training Services
Activity: MASIT Academy
Management Training Technical Training
 IT project management • Technical documentation
 Business process analysis and • Unified Modelling Language (UML)
modelling • Open Source Software (OSS)
 Software marketing • SAP
 Export marketing • Software engineering
 HR management • ISO, ITMark (ORF-Project)
 EU projects (acquisition & management)) • ITIL
Mode of delivery:
• Intensive trainings
• Interactive learning workshops
• Impulse presentations
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Task 4.2: Export-oriented Consulting Services
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
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32. Task 4.2: Export-oriented Consulting Services
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 (?)
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Task 4.2: Export-oriented Consulting Services
Activity: B2B Export Promotion Service
Cluster
Example Process Management: Export Promotion Service (B2B)
In: process cluster promotion
Cluster Manager
1 7 8 fund
marketing material 6
develop 2 identify cluster send out business
process enquiry
marketing material conduct mailing companies lead
12 15
C
review contract QM
Target Market mailing material business lead
3 10
5 reply form / R FQ 11 16 17
4 customer yes proposal yes no yes
Customer
fill in reply form prepare contract accepted ? payment
feed -back interested ? accepted ?
no
no
contract
Cluster Companies
14
9 13 project report
project
develop proposal sign contract
implementation
proposal
Cluster Partners Consortium
Client
C C
C
enquiry C
lead
C
Cluster Management Lead Company
C C C
SharePoint
C
M&E
Project Implementation
Project Management
Contract
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34. Task 4.4: Development of an Export Manual
Manual for export marketing of companies
Situation
Analysis
Marketing
Mix
Company
Product
Partners
Price
Customers Segmentation & Marketing
Objectives
Positioning Controlling
Place
Competitors
Promotion
Value
Context Proposition
People
Processes
Internal Analysis: Strengths / Weaknesses
External Analysis: Opportunities / Risks
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35. Implementation Strategic Measure 5: Quality &
5 Company Excellence
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
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36. Strategic Measure 5: Quality & Company Excellence
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37. Task 5.5: Promote HR Excellence
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
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38. Implementation Strategic Measure 6:
6 Export-oriented Investment
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
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39. Strategic Measure 6: Export-oriented Investment
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Task 6.6: Promote Intermediate
Mode of Internationalization
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
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41. Project Resources
Project Team Resources
 Lucas von Zallinger  Int. consultants: 10 pm
 Claus Traeger  Overall budget: > 300.000 EUR
 Alexander Kuntz
 Tobias Mollin
 Prof. Dr. Hans-Günter Lindner
 Valentina Nushkova
Project duration: 06/2010 – 12/2012
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42. Thank You!
Contact:
Valentina.Nushkova@gtz.de
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