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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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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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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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 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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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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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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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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