Macedonia

e-BIZ: A New Approache-BIZ: A New Approach

Janice BrodmanDirector

Center for Innovative TechnologiesEDC

29 November 2005

World Bank

AgendaAgenda

The “ICT for Economic Growth” DilemmaThe “ICT for Economic Growth” Dilemma e-BIZ Approache-BIZ Approach The e-BIZ CentersThe e-BIZ Centers OutcomesOutcomes Lessons learnedLessons learned

The ICT for Economic Growth The ICT for Economic Growth DilemmaDilemma

How to getHow to get concrete impactconcrete impact andand scalescale Enterprise-level developmentEnterprise-level development

Support the strongSupport the strong

Broad-based servicesBroad-based services TelecentresTelecentres ClustersClusters

The ICT for Economic Growth DilemmaThe ICT for Economic Growth Dilemma

Both approaches fall shortBoth approaches fall short Enterprise-level developmentEnterprise-level development

Achieves concrete impact…but only for a fewAchieves concrete impact…but only for a few

Broad-based servicesBroad-based services Helps many…but not with bottom-line resultsHelps many…but not with bottom-line results

USAID e-BIZ Project DeliversUSAID e-BIZ Project Delivers

Concrete results for small and Concrete results for small and medium enterprises, medium enterprises, andand

Impact on entire Impact on entire industries/clustersindustries/clusters

e-BIZ: A New Approache-BIZ: A New Approach

Innovation ingredientsInnovation ingredients Private sector Private sector andand ICT4D experience ICT4D experience USAID DOT COM Alliance mechanismUSAID DOT COM Alliance mechanism Entrepreneurial and innovative USAID Entrepreneurial and innovative USAID

Macedonia Mission leadershipMacedonia Mission leadership

e-BIZ Approache-BIZ Approach

Begin with demandBegin with demand Identify strategic opportunities and Identify strategic opportunities and

obstacles for industriesobstacles for industries Identify "high impact" ICT Identify "high impact" ICT

applicationsapplications ICTs that will ICTs that will quicklyquickly and and significantlysignificantly

improve SME competitiveness for entire improve SME competitiveness for entire industries/clustersindustries/clusters

e-BIZ Approache-BIZ Approach

Partner with local entrepreneurs to Partner with local entrepreneurs to create create sustainablesustainable e-BIZ Centers e-BIZ Centers Based on a sound business plan Based on a sound business plan High impact ICTs are the core offering High impact ICTs are the core offering Partners co-invest time Partners co-invest time andand money money

Develop e-Biz Center capacityDevelop e-Biz Center capacity Offer hands-on business expertise and Offer hands-on business expertise and

business contactsbusiness contacts

MacedoniaMacedonia

Size of VermontSize of Vermont 2 million people2 million people Unemployment over 35%Unemployment over 35% Rapidly growing number of small Rapidly growing number of small

businessesbusinesses

e-BIZ in Macedoniae-BIZ in Macedonia <www.ebiz.org.mk>

Created 6 business-based e-BIZ CentersCreated 6 business-based e-BIZ Centers Apparel Apparel FootwearFootwear TourismTourism Fashion Industry e-CommerceFashion Industry e-Commerce Digital MediaDigital Media Online Management TrainingOnline Management Training

2 university-based e-BIZ Centers2 university-based e-BIZ Centers Regional Business Development CenterRegional Business Development Center Engineering Center of ExcellenceEngineering Center of Excellence

Apparel Technology CenterApparel Technology Center

Macedonia apparel industryMacedonia apparel industry One of Macedonia’s biggest employersOne of Macedonia’s biggest employers

28% of manufacturing jobs28% of manufacturing jobs

Competes on cost with ChinaCompetes on cost with China Industry experts: “This industry is gone in 5 Industry experts: “This industry is gone in 5

years.”years.”


Apparel Technology e-BIZ CenterApparel Technology e-BIZ Center Targets a new, “rapid response” Targets a new, “rapid response”

market niche in EUmarket niche in EU Higher value-addedHigher value-added Expanding marketExpanding market

Offers CAD/CAM services to the entire industryOffers CAD/CAM services to the entire industry Re-designs the production processRe-designs the production process First step toward full-package and “own label”First step toward full-package and “own label”


Industry experts:Industry experts: This This e-BIZ Center will make a "quantum e-BIZ Center will make a "quantum

difference" to the industrydifference" to the industry Will save or create thousands of jobs in Will save or create thousands of jobs in

the next few yearsthe next few years At least two more Centers will be needed At least two more Centers will be needed

in the next 2-3 yearsin the next 2-3 years

www.newtrend.com.mk

Shoe Technology CenterShoe Technology Center

Macedonia footwear industryMacedonia footwear industry A major source of employment now in deep A major source of employment now in deep

declinedecline Ships high-quality uppers to Italy at very low Ships high-quality uppers to Italy at very low

pricesprices

Shoe Technology CenterShoe Technology Center

Shoe Technology e-BIZ CenterShoe Technology e-BIZ Center Targets “rapid response” and “full package” Targets “rapid response” and “full package”

nicheniche Higher value-addedHigher value-added Expanding marketExpanding market

Offers CAD/CAM services to the whole Offers CAD/CAM services to the whole industryindustry

Industry experts: Industry experts: This e-BIZ Center will save or create thousands of This e-BIZ Center will save or create thousands of

jobs over the next few yearsjobs over the next few years

www.modeur.com.mk

Tourism PortalTourism Portal

Tourism industryTourism industry Has potential, but “outbound travel” dominates Has potential, but “outbound travel” dominates

National Tourism PortalNational Tourism Portal Puts Macedonia on the tourist mapPuts Macedonia on the tourist map Partners with Ministry of Economy Partners with Ministry of Economy Penetrates a world-wide marketPenetrates a world-wide market Targets 30%+ rise in tourism in next couple of Targets 30%+ rise in tourism in next couple of

yearsyears

www.exploringmacedonia.com

Fashion PortalFashion Portal

Fashion industry lacks e-commerce and Fashion industry lacks e-commerce and any type of ICT for sales and marketingany type of ICT for sales and marketing

Fashion PortalFashion Portal Sales, marketing, freight consolidation, Sales, marketing, freight consolidation,

sourcingsourcing Modern marketing for trade shows, buyer visits

www.fashionmk.com

Online Management TrainingOnline Management Training

National Competitiveness Council: National Competitiveness Council: Better management skills are essential Better management skills are essential to Macedonia’s economic growthto Macedonia’s economic growth

SME management skills are weakSME management skills are weak Local management training resources Local management training resources

are limitedare limited

Online Management TrainingOnline Management Training

Online Management Training CenterOnline Management Training Center Offers training otherwise unavailableOffers training otherwise unavailable Top quality at affordable pricesTop quality at affordable prices

International business partnerships International business partnerships

www.clearview.com.mk

Digital Media Center of ExcellenceDigital Media Center of Excellence

Digital media industry Digital media industry Excellent skillsExcellent skills Limited international market links or know-howLimited international market links or know-how

Digital Media Center of ExcellenceDigital Media Center of Excellence ““Match making”Match making” Industry knowledgeIndustry knowledge Training in advanced skillsTraining in advanced skills Potential for “film city”Potential for “film city”

Engineering Center of ExcellenceEngineering Center of Excellence

Tool and die industry Tool and die industry Lacks technology required in modern marketsLacks technology required in modern markets

Engineering Center of ExcellenceEngineering Center of Excellence Targets short-run production, rapid tool Targets short-run production, rapid tool

manufacturing, 3D modelingmanufacturing, 3D modeling Opens new international markets Opens new international markets

www.cirko-mes.com.mk

South East European UniversitySouth East European University

SEEU focuses on serving the minority SEEU focuses on serving the minority communitycommunity

Business Development CenterBusiness Development Center Hands-on experience for studentsHands-on experience for students Consulting opportunities for facultyConsulting opportunities for faculty Fee-based services to price-sensitive local Fee-based services to price-sensitive local

companies companies

www.seeu.edu.mk/english/departments/business_centre.asp

Industry Expert Assessment Industry Expert Assessment

““This is one of the best uses of This is one of the best uses of development funds that I have ever development funds that I have ever witnessed.”witnessed.”

Marty McElwee, industry engineerMarty McElwee, industry engineer

Macedonia will need more centers…Macedonia will need more centers…

Customer Response Customer Response

Customer survey Customer survey (206 respondents):(206 respondents): ““Have e-BIZ Center services made your Have e-BIZ Center services made your

business more competitive?”business more competitive?” If yes: “How?”If yes: “How?”


25%

45%

59%

79%

91% 93%

0%10%20%30%40%50%60%70%80%90%

100%

"YES" response

TargetTotal customersRespondentsApparel customersShoe customersManagement training

Have e-BIZ Center services made your Have e-BIZ Center services made your business more competitive?business more competitive?


If yes, “How?”If yes, “How?” Increased sales or improved marketingIncreased sales or improved marketing Improved customer serviceImproved customer service Improved product design Improved manufacturing Reduced costs Shortened market response timeShortened market response time

Other AccomplishmentsOther Accomplishments

Attracted $1mm co-investment from local Attracted $1mm co-investment from local partner companies/consortiapartner companies/consortia

Attracted over $2mm foreign direct Attracted over $2mm foreign direct investmentinvestment

Will directly serve over 1,300 SMEs with Will directly serve over 1,300 SMEs with over 35,000 jobs over next 2 yearsover 35,000 jobs over next 2 years

Industry experts forecast: Will save or Industry experts forecast: Will save or create 10,000 – 20,000 jobs in next 3 yearscreate 10,000 – 20,000 jobs in next 3 years

Other AccomplishmentsOther Accomplishments, cont’d, cont’d

Apparel Technology CenterApparel Technology Center 47 SME customers47 SME customers Tripled the number of Macedonian SMEs Tripled the number of Macedonian SMEs

using CAD/CAMusing CAD/CAM CAM production is 3X the business plan CAM production is 3X the business plan

target target Already at 2 shifts, moving to 3Already at 2 shifts, moving to 3

In less than one year of operations…In less than one year of operations…


Tourism PortalTourism Portal 150 SME customers150 SME customers Has attracted more Has attracted more

tourists than the tourists than the industry can handleindustry can handle

Ranks 8th on Google, Ranks 8th on Google, 2nd on Yahoo! for 2nd on Yahoo! for search “Travel search “Travel Macedonia”Macedonia”

“We have been trying for years to promote Macedonia as a unique destination …to tourists from North America. Your website gives us a wonderful and very useful tool for us to attain our goal.” Canadian travel agency


Engineering Center of ExcellenceEngineering Center of Excellence Stimulated creation of tool and die clusterStimulated creation of tool and die cluster Attracted Slovenian business partnerships that Attracted Slovenian business partnerships that

open new international marketsopen new international markets Forms the base for partnerships with Slovenian Forms the base for partnerships with Slovenian

companies across e-BIZ Centers and target companies across e-BIZ Centers and target industriesindustries


Shoe Technology CenterShoe Technology Center Has attracted over $2mm foreign direct Has attracted over $2mm foreign direct

investmentinvestment

Management Training CenterManagement Training Center Has demonstrated strong demand for high Has demonstrated strong demand for high

quality management trainingquality management training

On the Road to Sustainability On the Road to Sustainability

In less than 1 year of operationsIn less than 1 year of operations Revenue generation is growing for all centers Revenue generation is growing for all centers

and very strong for someand very strong for some Over 300 customers and risingOver 300 customers and rising Clear owner commitment to sustainabilityClear owner commitment to sustainability Expanding market among the smaller SMEsExpanding market among the smaller SMEs Impact on SME competitiveness already Impact on SME competitiveness already

substantialsubstantial

Lessons Learned Lessons Learned

Strong business plans are essentialStrong business plans are essential Business experience is importantBusiness experience is important Demand is the foundation of sustainability…Demand is the foundation of sustainability…

and is often industry-basedand is often industry-based Local entrepreneurs need support to develop Local entrepreneurs need support to develop

viable business plansviable business plans All partners need to buy inAll partners need to buy in

Revenue generation takes timeRevenue generation takes time Targets were overly ambitious…typical for Targets were overly ambitious…typical for

start-ups start-ups


Co-investment is keyCo-investment is key Investment is the mother of sustainabilityInvestment is the mother of sustainability ““We can do anything” shifts when We can do anything” shifts when

entrepreneurs are co-investorsentrepreneurs are co-investors

Consortia help bridge the investment gapConsortia help bridge the investment gap Project investment provides leverageProject investment provides leverage


ICT alone is not enoughICT alone is not enough SME customers need support to exploit new SME customers need support to exploit new

opportunitiesopportunities

Ongoing “close to the business” support Ongoing “close to the business” support is crucialis crucial Big gaps: financial management and Big gaps: financial management and

sales/marketingsales/marketing

Success can be threateningSuccess can be threatening Concrete, bottom-line impact Concrete, bottom-line impact andand scale are scale are

both achievableboth achievable

e-BIZ CONTACT INFOe-BIZ CONTACT INFO

Janice BrodmanJanice BrodmanDirector, Center for Innovative Technologies, EDCDirector, Center for Innovative Technologies, EDC

[email protected]@edc.org617-618-2620617-618-2620

Hal YaegerHal YaegerChief of Party, e-BIZ Project MacedoniaChief of Party, e-BIZ Project Macedonia

[email protected]@edc.org+389-2-321-7755+389-2-321-7755

http://www.ebiz.org.mkhttp://www.ebiz.org.mk

mailto:[email protected]

mailto:[email protected]

Macedonia

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