Development of local Network
of IT competences
Milan Zdravković
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
Presentation overview
Project
Background
Project
Overview
Overview of IT R&D vendors market
Pathway for future development
Mission and vision
Priorities, goals and instruments
Basic concepts of networking
Project
Implementation
Network Coordination Office
Project phases and Work Packages
Pilot Deployment
Development of Information Society
Self sustainable, globally recognized force
Overview of regional and local IT
R&D vendors market
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ICT market
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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
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75% of a market belong to HW
15 % - proprietary SW
9.5 % - IT Services (20% Slovenia,35% Hungary, 40% Greece)
Core IT
HW/SW direct
importers
HW/SW Retailers
Development of
accounting SW
System Integration
Development of
tailored solutions and
SW components
Special IT services
Non-Core IT
Freelancers
Joint Venture,
FDI
Web design agencies
Web application
development
ISP
Genesis of IT services local market (export perspective)
SWOT Analysis – Strengths &
Weaknesses
Strengths
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Educational system develops staff with general
knowledge based on strong math background, capable
to specialize in any area very fast.
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Very good knowledge on using commercial software,
due to piracy rate in past period.
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Solid english language proficiency.
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Significant number of self-educated freelancers, mostly
technical faculty’s students.
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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.
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Largest cities – university centers are well connected by
road infrastructure
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Universities are equipped with computers and
broadband internet.
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Solid number of small agencies with one or more SLA
contracts with client from abroad.
Weaknesses
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Lack of highly educated staff.
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Current university curriculums does not reflect market
requirements for a staff.
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Large corporations are mostly software importers.
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Small and medium businesses sector as a largest buyer
of IT products and services globally is not developed in
Serbia.
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Internet infrastructure is not well developed.
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Low efficiency of IPR state agencies, particularily in PCT
(Patent Cooperation Treaty) related activities.
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Very small number of ISO or CMM based implemented
quality systems and processes.
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Lack of IT vendor management social competences.
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Low level of german language proficiency.
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Low degree of collaboration within sector.
SWOT Analysis – Opportunities &
Threats
Opportunities
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Global IT outsourcing market, as well as awareness of
the need to outsource grows rapidly, particularily in
open-source technologies.
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It is expected that outsourcing development projects
would move fast to Serbia, after EU succession of
Bulgaria and Romania, due to salary growth.
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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.
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During software legalization process, it is expected that
the local demand for open-source server software would
grow.
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Global institutions (EC, World Bank, IMF, NGO) are
willing to donate to IT based projects.
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Offer of IT consumer products and services does not
follow the growth of internet penetration among citizens.
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As sector clearly disseminates into local and global
market oriented companies, potential for profitable
relations between players grows.
Threats
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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 egovernment projects, which could endanger R&D
investments in IT sector.
Growth of demand for outsourcing services could lead
to lack of resources dedicated to research and
innovation.
Local IT Products and Services
A pathway for future development
SW components
development
HW and
proprietary SW
System integration
services
SW localization
services
Freelancers
Incorporation,
Joint Venture
Customization and
development of
tailored solutions
Vertical industry
expertise
Business SW
Development
Long term SLA
IT Outsourcing
NationalSW Development
Industry
OEM SW Licencing
Project: Development of Network
of local IT competences
ICT sector development
Mission
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.
Implementation of ISS
Development of cross border
IT cluster
Vision
to ensure cross-border character of initiative,
international coverage and effect of self-sustainability
Establish globally credible force
Project priorities, goals and
instruments
Networking concepts
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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
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Player. A force acting within in a cluster. Can be company, department within a company,
business area, research group, freelancer or government authority.
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Networks. Relations and interactions between players in the common environment, within cluster
framework of rules and recommendations
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Cluster Package. Network of players who share the same competences.
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Horizontal network. Relations and interactions between players with diverse competencies which form
complete IT offer or solutions.
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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 project’s mission and vision. Can be a knowledge, experience, quality or quantity of
resources, negotiation strength, client relations, government relations, etc.
Player
Player
Competence
Competence
Competence
Network
Competence
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 project’s mission and vision.
Can be a knowledge, experience, quality or quantity of resources,
negotiation strength, client relations, government relations, etc.
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.
Coordination Office
Partners
Project phases
#1 Consolidation
– Assesment of local IT sector
– Institutionalization
• Coordination center
• Advisory board
• Workgroups
– Pilot deployment
– Promotion
#2 Development
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Education
Marketing
Benchmarking
Deployment
• IS Projects
• Direct networking as a follow-up of generated leads
Work Packages
WP1. Assesment of local IT sector and network consolidation
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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 project’s outcomes are:
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detailed overview of quantitative and qualitative features of regional IT R&D market, including freelance
sector,
institutionalized network and established coordination center and
establishment of relevant stakeholders relations.
WP2. Pilot #1: Performing e-readiness assesment
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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.
Activities for WP1
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Project kick-off
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Core activities
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Sectoral announcement and assembly of advisory board
Development of public and corporate relations guidelines
Website launch
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
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Media promotion of project outcomes
Local buyer's market promotion of project outcomes
Organization of first NoC Conference
Linking Development of Information
Society and networking
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National Strategy for Information Society Development
Main instruments
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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
Roadmap to Information Society
Roadmap to Information Society
(detailed view)
NSISD Strategic priorities
NSISD Strategic priorities
(detailed view)
NSISD Instruments
Thank you for your attention
Development of Network of local IT competences
ICT sector development
Mission
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.
Implementation of ISS
Development of cross border
IT cluster
Vision
to ensure cross-border character of initiative,
international coverage and effect of self-sustainability
Establish globally credible force