Development of local Network of IT competences

1
Development of local Network of IT competences

• Milan Zdravkovic
• Inovation Center for Information Technologies

Networking of local IT competencies as a tool for
improved performance on market and development of
Information Society March 3rd, 2006, Municipality
Medijana
2
Presentation overview
ProjectBackground
Overview of IT RD vendors market
Pathway for future development
Project Overview
Mission and vision
Priorities, goals and instruments
Project Implementation
Basic concepts of networking
Network Coordination Office
Project phases and Work Packages
Pilot Deployment
Development of Information Society
Self sustainable, globally recognized force
3
Overview of regional and local IT RD vendors
market

• ICT market
• Decreasing (340 M in 2003, 280 M in 2004,
  prediction of 20 decrease in 2005), 1.5 GDP
• Unbalanced dispersion (56 Belgrade, 15
  Vojvodina, 13 Niš, 16 other)
• Unbalanced structure
• 75 of a market belong to HW
• 15 - proprietary SW
• 9.5 - IT Services (20 Slovenia,35 Hungary,
  40 Greece)

4
SWOT Analysis Strengths Weaknesses
Strengths
Weaknesses

• Educational system develops staff with general
  knowledge based on strong math background,
  capable to specialize in any area very fast.
• Very good knowledge on using commercial software,
  due to piracy rate in past period.
• Solid english language proficiency.
• Significant number of self-educated freelancers,
  mostly technical facultys students.
• IT expertise in a region is balanced over
  different organizations, making very low degree
  of competitiveness, yet great potential for
  adding value to existing products and services
  with complementary offers.
• Largest cities university centers are well
  connected by road infrastructure
• Universities are equipped with computers and
  broadband internet.
• Solid number of small agencies with one or more
  SLA contracts with client from abroad.

• Lack of highly educated staff.
• Current university curriculums does not reflect
  market requirements for a staff.
• Large corporations are mostly software importers.
• Small and medium businesses sector as a largest
  buyer of IT products and services globally is not
  developed in Serbia.
• Internet infrastructure is not well developed.
• Low efficiency of IPR state agencies,
  particularily in PCT (Patent Cooperation Treaty)
  related activities.
• Very small number of ISO or CMM based implemented
  quality systems and processes.
• Lack of IT vendor management social competences.
• Low level of german language proficiency.
• Low degree of collaboration within sector.

5
SWOT Analysis Opportunities Threats
Opportunities
Threats

• Global IT outsourcing market, as well as
  awareness of the need to outsource grows rapidly,
  particularily in open-source technologies.
• It is expected that outsourcing development
  projects would move fast to Serbia, after EU
  succession of Bulgaria and Romania, due to salary
  growth.
• There is a growth of demand in IT inovations at
  the global market. It makes a number of
  opportunities for fast kick-off of global IT
  brand in software industry.
• During software legalization process, it is
  expected that the local demand for open-source
  server software would grow.
• Global institutions (EC, World Bank, IMF, NGO)
  are willing to donate to IT based projects.
• Offer of IT consumer products and services does
  not follow the growth of internet penetration
  among citizens.
• As sector clearly disseminates into local and
  global market oriented companies, potential for
  profitable relations between players grows.

• There is a risk that expected growth of demand
  for outsourced development would not be met due
  to serious lack of highly educated staff.
• Brain drain.
• Lack of understanding of IT role in a government
  processes and relations.
• Lack of knowledge on data protection,
  non-disclosure agreements and security policy
  could lead to risks of endangering of information
  confidentiality.
• Continuous lack of highly educated staff could
  lead to salary growth.
• Strategic partnership with Microsoft and 30.000
  licenses of its software in government
  institutions and public companies could set a
  path to proprietary SW based e-government
  projects, which could endanger RD investments in
  IT sector.
• Growth of demand for outsourcing services could
  lead to lack of resources dedicated to research
  and innovation.

6
Local IT Products and Services
7
A pathway for future development
OEM SW Licencing
SW components development
HW andproprietary SW
Customization and development of tailored
solutions
SW localization services
NationalSW Development Industry
8
Project Development of Network of local IT
competences
ICT sector development
Mission
Implementation of ISS
To build and maintain sustainable, credible,
interest-driven network of local IT competencies
(ICT cluster) as a framework for improving
individual performance, as well as development
of legal and policy background.
Development of cross border IT cluster
Vision
Establish globally credible force
to ensure cross-border character of initiative,
international coverage and effect of
self-sustainability
9
Project priorities, goals and instruments
10
Networking concepts

• Network of IT competences (or IT Cluster).
  Concentration of actors within IT industrial
  segment where the common denominator is that they
  draw from the same resources and/or competences
  in order to improve their ability to perform
• Player. A force acting within in a cluster. Can
  be company, department within a company, business
  area, research group, freelancer or government
  authority.
• Networks. Relations and interactions between
  players in the common environment, within cluster
  framework of rules and recommendations
• Cluster Package. Network of players who share the
  same competences.
• Horizontal network. Relations and interactions
  between players with diverse competencies which
  form complete IT offer or solutions.
• Vertical network. Relations and interactions
  between players with competencies which form
  significant part or whole of IT value chain.
• Competence. Ability to perform in certain area of
  business. Measure of potential impact of a player
  to projects mission and vision. Can be a
  knowledge, experience, quality or quantity of
  resources, negotiation strength, client
  relations, government relations, etc.

11
IT Competences

• Competence factors. Measures of potential impact
  of a player in network activities.
• General competence factors
• Competence factors for determination of export
  potential
• Competence factors for determination of
  potential impact to local and regional markets
  and IT policy

Competence. Ability to perform in certain area of
business. Measure of potential impact of a
player to projects mission and vision. Can be a
knowledge, experience, quality or quantity of
resources, negotiation strength, client
relations, government relations, etc.
12
Players

• Controlled level of diversity of players
  competences
• Primary interest of ICT cluster during its
  establishment should be to assign individual key
  players to for each competence.

Player. A force acting within in a cluster. Can
be company, department within a company,
business area, research group, freelancer or
government authority.
13
Coordination Office
14
Partners
15
Project phases

• 1 Consolidation
• Assesment of local IT sector
• Institutionalization
• Coordination center
• Advisory board
• Workgroups
• Pilot deployment
• Promotion
• 2 Development
• Education
• Marketing
• Benchmarking
• Deployment
• IS Projects
• Direct networking as a follow-up of generated
  leads

16
Work Packages

• WP1. Assesment of local IT sector and network
  consolidation
• Work package activities would be focused on
  identification of regional IT resources,
  knowledge and potential for maximizing value of
  regional IT products and services in networked
  environment, as well as network consolidation
  establishment of coordination office and advisory
  board.
• Main projects outcomes are
• detailed overview of quantitative and qualitative
  features of regional IT RD market, including
  freelance sector,
• institutionalized network and established
  coordination center and
• establishment of relevant stakeholders relations.
• WP2. Pilot 1 Performing e-readiness assesment
• Work package activities would be focused only on
  e-readiness issues relevant for local authorities
  and community and present state of Information
  Society implementation. Main components of
  assesment would be evaluation of infrastructure,
  data availability and security, institutional
  capacities and current IT projects.

17
Activities for WP1

• Project kick-off
• Sectoral announcement and assembly of advisory
  board
• Development of public and corporate relations
  guidelines
• Website launch
• Core activities
• Definition of administrative documents, templates
  and guidelines
• Establishment of NoC Coordination office
• Definition of network scope of coverage and
  membership eligibility criteria
• Definition of structural competence factors
• Establishment of quality standards required for
  Quality Charter
• Creating database of IT vendors in region
• Preparation of final report and final statement
• Promotion
• Media promotion of project outcomes
• Local buyer's market promotion of project
  outcomes
• Organization of first NoC Conference

18
Linking Development of Information Society and
networking

• National Strategy for Information Society
  Development
• Main instruments
• E-Government
• E-Education
• E-Health
• E-Business
• Development of ICT business sector
• Number of Strategy components with regional focus
• E-Readiness assesment
• Development of sectoral policies
• Information Society Forum

19
Roadmap to Information Society
20
Roadmap to Information Society (detailed view)
21
NSISD Strategic priorities
22
NSISD Strategic priorities (detailed view)
23
NSISD Instruments
24
Thank you for your attention
Development of Network of local IT competences
ICT sector development
Mission
Implementation of ISS
To build and maintain sustainable, credible,
interest-driven network of local IT competencies
(ICT cluster) as a framework for improving
individual performance, as well as development
of legal and policy background.
Development of cross border IT cluster
Vision
Establish globally credible force
to ensure cross-border character of initiative,
international coverage and effect of
self-sustainability