Challenges for Global

Competitiveness
Agenda
• ICT Global Competitiveness
• Market Trends
• Strategy
• Getting Started
• Challenges
Are We Globally
Competitive?
Are We Globally
Competitive?
Global Competitiveness –
• India Ranks 55 in year 2004 ratings, one up from its ranks as the 56th
most competitive nation in 2003.
• This is below China at 46 (it slipped down 2 places from 44 in 2003).
• It is also below countries as Australia, Canada, South Africa, Mexico
and quite a few East European Countries.

Global ICT Competitiveness –

We come 45th Way ahead of China at 51st , yet the others
mentioned above are still ahead. This is a reflection of –
•the environment for ICT offered by a given country.
•the readiness of the community's key stakeholders
(individuals, businesses and governments).
•and the usage of ICT among these stakeholders.
So what?
• While we are a “Leader” in ICT, our foundations (in the
Industry) are not rock-solid. We carry an “early mover”
advantage.

• As a “Short-Term” perspective, we can leverage on the

discrepancies between home base and serviced nations.

• As a “Long-Term” Strategy we would need to be amongst

the leaders in competitiveness on both an Industry (here
ICT) and a Overall level to maintain and grow this lead.

Having set the pace for the next few

minutes….
 What's in it for us?
The Global ICT Market 24%

C o ns um e r M k t.
G o v e rnm e nt & B us ine s s

76%

 Total ICT market value = $2.8 trillion.

 Communications Services & Equipment has
largest share at 53%.
 USA has largest ICT spending of $1.06 trillion.
 Japan in second position with $ 349 billion.
Where’s the Market
Going?
The Market Trends
14
12
10
8
6
4
Dot Com
2 Crash
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2007
 Global ICT market to grow at 8% from 2003 through 2007.

 The rate is more than expected Global GDP growth

 USA to relinquish position as highest per capita ICT spender –

 Switzerland = $ 4,282/-
 USA = $ 4,147/-
 Regional Growth
Compound growth rate (2003-07)
11.9%
12.0%

10.0% 9.3%
8.8% 8.7%
8.3%
8.0%
6.8% 6.7%
6.0%

4.0%

2.0%

0.0%
Easte rn Asia Africa We ste rn Middle East Latin North
Europe Europe America America

 Focus shifting from Developed to Developing Nations

 Highest growth in Eastern Europe with a spending of
$ 68.8 billion in 2007
 Asia to be the power house with a spending of $ 811.1
billion in 2007
* itaa.org
Business Strategy – A
Paradigm Shift
Moved From Moved To

Satisfying Demand Creating Demand

Excellence in Operations Strategic Vision

Hardware Software

Vertical Integration Outsourcing

Natural Resources Knowledge

Tangibles Intangibles

Commodities Brands

Mass Production Mass Customization

And the Changing Mindset
of the CIO

Outsource/open platforms/
• Synchronization of IT
Scalability/modularity
• Increased value with
reduced cost

• Tightened security for

business continuity

2007 Vision
2002 Commandments
Getting Started for Global
Competitiveness
 Defining Global IT
Infrastructure
~ People ~
Policies
~ Physical Assets ~
Politics
Growth
Growth

••Economic
Economic
••Technological
Technological
••Social
Social
••Cultural
Cultural

Partnerships Products
~ Countries ~ ~ Hardware ~
Enterprises Software
~ Symbiotic ~ Sourcing ~ ITES
Global IT Models
Sourcing Software ITES
Outsourcing Programming Selling Services
licensed software

Business Oriented Technically oriented Eclectic

Large professional Limited professional Mixed pool

pool pool

Selling directly to Selling to vendors Selling directly to

enterprises (OEM)/enterprises individuals/enterpris
es
IT Globalization -
Characteristics
• Globalization of IT
– Opportunity= Prosperity
– Challenge= Diversity

• Technological isolation- a thing of past

in the open market scenario

• Governments to realize the Economic

Value of IT (EVIT)
Global Market –SWOT
Opportunities Strengths

• Cost and Revenue: • Early Mover Advantage

-Lower salaries
•Brand
-New markets
• Time & Distributing work 24 X 7 •Multinational alliances

• Resources & Pool of worldwide talent •Balanced risk

Threats
• Increased Discrepancies
-Income
-Education
-Digital divide
• Emerging Players
•Unable to resolve differences
Weaknesses
• Lack of knowledge
•Governance & Bureaucracy
•Unpredictable infrastructure
• Cultural/linguistic differences
How MNC’s Win Globally
• Get to new global markets before competition

• Counter-attack the competition at home

• Invest in new technology

• Design optimum sourcing policy

• Install the right managerial system

• Take early losses if necessary & re-capitalize

• Rely on strategic alliances

To Win in a Global
Environment – BRANDING

UN VE EH
DI TAK

VE
S

IT RSE OL
E

TI
IA
EC
PR
AP
DE
RS
6 1
EXTENDABLE 5 2 ENDURING
4 3

MO
ILE

LD
AT

AB
RS

LE
VE
Branding – Historical
Evolution • Brand building
BUSINESS
involves trust,
EMPLOYER
REPUTATION consistency,
BRANDING (banks) uniqueness,
NATION
(consulting)
QUALITY targeting and
BRANDING ASSURANCE internal marketing.
(Singapore)
10 1 (cattle)

9 2
PERSONALITY INGREDIENT
CREATION 8 3 DIFFERENTIATION
(athletes) (medicine) • Winning Brands
7 4 are like personal
6 5 TRADEMARK leadership. They
INTANGIBLE
ASSET PROTECTION
(soft drinks)
require passion,
(services)
empathy &
LIFESTYLE
MARKET
SEGMENTATION competence.
REFLECTION
(automobiles)
(clothing)
Challenges for Global
Competitiveness
Challenges
• Strategy

• Branding

• Different languages/Culture

• Communication/ infrastructure

• Legal infrastructure

• Political environment

• Influence in the target country

Influencing Factors
Social-Cultural
Economic & Legal
• Literacy
• GDP,per capita income
• Population,age distribution
•Wealth distribution
• Depth of education
• Affordability index
• English competency
• Labor force and distribution
• Immigration & emigration
• Regulatory laws
• Trust

Political Technological
• Form of government • Availability of telecom channels
• Censorship • Demographic distribution of IT
• Corruption • Total number of IT vendors
• Government guarantee • Government funding of IT
 Matrix of IT Powers
Challengers Leaders
Mor
e ~ Australia ~ Northern ~ India ~ Ireland
Ireland ~ Israel ~ Philippines
~ Canada ~ Singapore ~ USA
~ China ~ South Africa
~ Japan ~ Taiwan
~ Korea ~ Western
Europe
~ Mexico
Beginners Up-and-Comers
& s ecr uos e R
er ut c urt s arf nI

~ Bangladesh ~ Cuba ~ Brazil ~ Caribbean

~ Ghana ~ Mauritius ~ Eastern Europe ~ Egypt
~ Nepal ~ Senegal ~ Malaysia ~ Russia
Fewer/L ~ Thailand ~ Vietnam ~ Venezuela ~ Sri Lanka
ess

* gartner.com
 Matrix of IT Powers
Challengers Leaders
Mor
e ~ Australia ~ Northern ~ India ~ Ireland
Ireland ~ Israel ~ Philippines
Advantage India
~ Canada ~ Singapore ~ USA
~ China ~ South Africa
We~have
Japan a 10 year accumulation of Process
~ Taiwan

and~ Korea
IPR
Europe Wealth~ Western
from our endeavors across
the~Globe…
Mexico
Beginners Up-and-Comers
& s ecr uos e R
er ut c urt s arf nI

~ Bangladesh ~ Cuba ~ Brazil ~ Caribbean

… We ~ Ghana ~ Mauritiuson this
can Capitalize ~ Eastern
with Europe ~ Egypt
a proper
~ Nepal ~ Senegal ~ Malaysia ~ Russia
backing from
Fewer/L ~ Thailand our government
~ Vietnam
to
~ Venezuela
move far
~ Sri Lanka
ess
above the value chain.
The New Approach – Move
up and…

Move From Position As

Value for Money Top rung in the Value

Chain
Managers of Processes Strong Hold of Intellectual
Property
Satisfying Demand Creating Demand

Disparate and Diverse End-to-End Value Providers

Project / Product Providers “Leads” and Partnership

Managers
… Summit the Global
“VALUE CHAIN”
“Lead” on
Domain
Knowledge
Brandin Partnerships Alliance
Customer Value

g s
Global Presence and
Acceptance

Referen Third-Party Bundling

ces “Leads”
Intellectual & Domain Knowledge
Consolidation
Building Customer Centric Predicting Domain
Solutions Dynamics
Intellectual & Domain Knowledge
Accumulation
Invest in Domain Churn R&D
Expertise investments
Enterprise wise Commitment to Intellectual
Property Development
Foundations to ICT and Value Development
“Challenge is a dragon with a gift in its
mouth… Tame the dragon and the gift is
yours”
- Noela Evans