TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 1
1. Introducingaprocessforstar%ngaclusteringini4a4ve,or
2. Forrenewal,revitalisa%onofacurrentclusteringini4a4ve
ClusterDevelopment:TheHow,inTwelveSteps
TCIDelhiNovember,2010IforFfowcs‐Williams
CEO,ClusterNavigatorsLtd,NewZealand
Aclusteringini%a%veis…
…anorganisiedcollabora%onwithfirms,governmentandacademiawithinaconcentratedgeographicalarea
• coopera'ngtowardscommongoals,
• establishingcloselinkagesandworkingalliances
…toupgradecompe%%veness
Upgradingacluster’scompe%%veness
Designprinciples,12Steps
• MovingfromclumpsoffirmsandacluCerofpublicagencies
• Changenevercomeseasy,andtakes4me
• Successfultransforma4onneedsacoali4onofvolunteers
• Shorttermwinsbuildsthecredibilitytoaddresssubstan4veac4vi4es
ClusterdevelopmentDrawingonbothsidesofthebrain
LogicDetails
Safe
FeelingsBigpictureRisktaking
Step1:IntroducingrelevanceMobilisingsupport
• Introducingtherelevanceofclusterstopoten4alfunders,usuallyapublicagency
• Obtainingtheresourcestoproac'velyengageinthedevelopmentofpriorityclusters
• Muchmorethanananalysisexercise
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 2
Posi%oningclusterdevelopmentAcentrestagestrategyNot‘anotherproject’
Acomprehensiveframeworkforarangeofeconomicdevelopmentagendas,including:• Skills,training;workforcedevelopment• SMEdevelopment;Newbusinessstart‐ups• InvestmentaRrac4on;migrantaRrac4on• Exportdevelopment,interna4onalisa4on• Rural,communitydevelopment;• Incubators;Industry/TechnologyParks…
Step2:Iden%fying,priori%singclusters
Segmen%ngthelocaleconomy
• Themajorityofjobsandbusinessesineverylocaleconomyarethesame:• Restaurants,retail,healthcare,housebuilding,vehiclerepair…
• Aboutathirddiffer:• Thetradedsector• Firmsinthissectordrivethelocaleconomy,pullinthewealth
Iden%fyingthetradedclustersThepriori%esforearlypublicaCen%on
Shortlistedclustersshould:• Drawontheregion’sstrengths,specialisa4ons• Maycenteronaspecialisedcapability,aculturalstrength,atechnologyplaYorm
• AlreadyaRractincometotheregion
• Alreadyhavearangeoffirms• Haveappealforfunders
• Focusonthestrongclusters,nottheweak
SiliconAlley,ManhaRan,New York;SiliconBeach, Santa Cruz;USA;Silicon Bog, Limerick, Ireland;SiliconCity,Chicago,USA;SiliconCoast,Auckland,NewZealand;SiliconCorridor,M4,UK;SiliconDesert,Phoenix,Arizona; Silicon Ditch, M4, UK; Silicon Dominion, Virginia; Silicon Fen, Cambridge, UK; Silicon Forest,Portland, Oregon; Silicon Forest, Australia; Silicon Freeway, Southern California, USA; Silicon Glacier,Montana,USA;SiliconGorge, Bristol, England;SiliconGlen, Scotland;SiliconGulch, San Jose – California,USA; SiliconGulch, Aus4n, Texas, USA; SiliconGulf, Davao, Philippines; SiliconHill, MassachuseRs, USA;SiliconHills,Aus4n,Texas;SiliconHoller,WashingtonDC,USA;SiliconHollow,Tennessee,USA;SiliconIsland,Virgin Islands;Silicon Island, New York, USA;Silicon Island, California, USA;Silicon Island, Taiwan;SiliconIsland,Whidby Island,Washington, USA; Silicon Isle, Ireland; SiliconKashba, Istanbul; SiliconMesa, NewMexico,USA;SiliconMountain, Colorado Springs;SiliconMountain, Pennsylvania,USA;SiliconMountain,MassachuseRs, USA; SiliconNecklace, Boston,MassachuseRs, USA; Silicon Oasis, Dubai; SiliconOrchard,Wenatchee Valley, Washington, USA; Silicon Planta%on, Virginia, USA; Silicon Plateau, Bangalore, India;Silicon Polder, Netherlands; Silicon Prairie, Champaign‐Urbana, Illinois; Silicon Rainforest, SeaRle,Washington, USA; Silicon River, Missouri, USA; Silicon Sandbar, Cape Cod, MassachuseRs, USA; SiliconSaxony,Saxony,Germany;SiliconSeaboard,Richmond,Virginia,USA;;SiliconSeaside,SouthNorway;SiliconSlopes, Utah, USA; Silicon Snowbank, Minneapolis‐St Paul, Minnesota; Silicon Spires, Oxford, UK; SiliconSwamp, Florida,USA;SiliconTriangle,Durham,NthCarolina,USA;SiliconTundra,ORawa,Canada;SiliconValais, Switzerland; Silicon Valley North, ORawa; Silicon Valley East, Malaysia; Silicon Valley Forge,Pennsylvania,USA;SiliconValley,Iowa,USA;SiliconValleyofChina,Zhongguancun;SiliconValleyofEurope(Dublin);SiliconValleyofRussia,Moscow;SiliconValleyofSouthKorea,Incheon;SiliconValleyofSweden(Kista);SiliconValleyofTaiwan;SiliconVillage,MassachuseRs,USA;SiliconVillage,California,USA;SiliconVineyard, Okanagan, Bri4sh Columbia, Canada; Silicon Vineyard, Napa Valley, USA; Silicon Wadi, Israel;SiliconWelly,Wellington,NewZealand;andCwmSilicon,Wales.
Notanother‘SiliconSomewhere’
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 3
TheClusterMusterHighprofile,kick‐offpublicmee%ng
Roundingupthe‘usualsuspects’…andtheunusualones
• Publiclyannouncingtheini4a4ve• Introducingthefacilitator(s)• Reques4ngthecluster’sstakeholderstobeavailableforanearly1‐on‐1mee4ng
• Announcingthedateforafirstworkshop• Presen4ngfeedbackontheinterviewsandanalysis
Soloplayers,hardtomusterDon’twaitforall
Step3:Ini%alclusteranalysisTwothrusts
1. Ini4alcompe%%venessdiagnosis,factbased,understandingcluster’scurrentsitua4on:structure,scale,opportuni4es,constraints,culture…
2. Establishingapla]ormforac%on,Introducingtheprocess;mo4va4ngkeystakeholderstopar4cipate;iden4fyingthecluster’stalent&poten4alleaders...
ClusteranalysisDevelopingasharedunderstandingacrosstheclusteroncompe%%veness
Step3:Ini%alanalysisessen%alsInwardlookingemphasis
• Iden4fyingthecluster’sleadfirms• Theinnovators…andtheirsuccessfactors
• Iden4fyingotherstakeholders…supportfirms,soiinfrastructure• Needtodiligentlyiden4fy;
• Detec4veworkneeded• Muchmorethana‘YellowPages’orindustryassocia4onlist
• Securingtheirinvolvement
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 4
HistorymaCers!Understandthecluster’sfounda%ons
• Howdidtheclusterstart?Why?
• Howdiditgrow?Whatchanges?• Evolu4onofthelocalspecialisa4on?• Whatchallengesalongtheway?Whatpublicsupport?
• Developmentoflinks,trustwithinthecluster?• Levelofsocialproximity?Subcontrac4ng?Interdependencies?Jointac4ons?Universityac4vity?
• Developmentofgloballinks• Exports?Overseasinvestment?Interna4onalisa4on?
Gatheringclustersta%s%csCau%on!
• Clustersarebroaderthanan‘industry’;maybeatechnology
• Clusterboundaries≠regionalboundaries• Establishthecluster’sfunc%onalboundary• Importanceofsurveys,ratherthananover‐analysisofpublisheddata
Ini%alanalysisprocessFace‐to‐faceinterviewing
• Interviewingoienmerits80%oftheanalysiseffort;GemngbehindthewriRenword
• Introducingtheclusterconcepttoscep4cs• Buildingalliesforsubsequentmee4ngs
• Ini4alassessmentofleaders• Anovertagenda,andacovertone
EstablishtheBaselineDataWhatwillbeonthecluster’s
dashboardtomeasureprogress?
Establishingtheperformanceindicators
• Numberoffirms?Employees?• Numberofnewfirmstotheregion?• Totalsales?
• %local,%na4onal,%interna4onal?• Numberofstudentsinlocaltrainingdirectedatthecluster’sneeds?
• %workforcewithhighereduca4on?• ……………
Based on Oxford Research, Norway
Step4:FormingtheLeadershipGroup
Ac4veclusteringdemands:• Acoali4onofpreferredleaderswhounderstandandcareaboutthebigpicture
• AGroupwithabalanceofskills,abletoaggressivelyworkasateam
FacilitatorplaysakeyroleinestablishingGroup
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 5
BuildingtheLeadershipGroup
Takes%metogettherightpeopleonthebus…andintherightseats
thewrongpeopleoffthebus
ClusterLeadershipBus
Step5:Developingthepreferredfuture
• Apreferredscenario…theclusteratit’sfuturebest
• Acommonreasonforthefailureofclusteringini4a4vesislackofagreementonthedirec4on
ThePreferredFuture
Thevision
ThepreferredfutureTheVision
Building on the cluster’s current competitive position … with a challenge,
a s t r e t c h factor
PreferredfutureexampleFilmclusterAuckland,NewZealand
Avibrant,growingscreenproduc%onindustryintheAucklandregion.
Ac%vitydoublingoverthecoming5years.
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 6
Step6:StandinginthefutureIden%fyingthesteppingstones
• Lookingbackfromthefuture:
Backcas%ng
• Notacon4nua4onofthepresent…Forecas4ng
Auckland,NZFilmClusterVision:vibrantgrowingindustry
doublingac%vityin5years
Key steps Voting
Culture 28
Skills, training 25
Hard infrastructure 19
New investment 18
International marketing 18
I P & R & D 14
Step7:Shortterm,tac%calagenda
ForeachofthePrioritySteps• Pickthe‘lowhangingfruit’• Notwishlistsforothers
Immediateprojectsthatdemonstratethevalueofcollabora4on
Justdoit!
Projectimplementa%onMovingquicklyintoac%on
• Buildteamsaroundthepriorityac4onprojects
• CATs…ClusterAc%onTeams• Teamsworkbestwithvoluntarymembers
• Andself‐destructontaskcomple4on
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 7
Step8:Launching,formalisingthecluster
1.Launchingthecluster• A‘TownHall’publicevent• 3‐6monthsaierfinalworkshop
• Highlightini4alsuccesses• Andtheforwardagenda• Ensuremediacoverage!
ClusterlaunchLakeKatwesaltcluster,Uganda
Take%meinformalisingthecluster’sstructure
• Firmswantearlybenefits• Notdelaysthroughdiscussionsonstructure• Avoidearlystakeholderfa4gue
• Cantake4mefor:• Thecluster’sboundariestoemerge• Thecluster’sLeadershipGrouptobeiden4fiedandsolidifyasateam
Step9:In‐depthanalysis,benchmarking
Factbased,outwardfocussedanalysis
• Fundamentallyunderstandingthecluster’scompe44veposi4on,thelocalspecialisa4on
• Frameworks:Porter’sFiveForces&Diamond• Benchmarkingv.referenceclusters
BenchmarkingvisitsExample:Norway’sMountain
TourismclustervisittoBanff,Canada
• Iden4fyanappropriate(model)referencecluster
• Benchmarkingvisitsprovideacollabora4velearningopportunity• Business+publicagencies+academicssharingtheirlearning
• EstablishingB2Blinks• Visitscanprovidemobilisingdatashocks
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 8
Step10:Long‐term,strategicagendaMoresubstan%ve,morestrategicini%a%ves
Movingbeyondtheini4alac4vity…the‘lowhangingfruit’e.g.• Technology&SMErelated
• R&Dcenters;CentersofExcellence;Incuba4onfacility• TechnologyPark;One‐stop‐servicecentre
• Interna4onalisa4on• Clusterbranding;Exportdevelopment;InvestmentaRrac4on
• Skillsdevelopment• Ter4arycoursedevelopment;Partnershipswithlocalschools
• Finance• Equityanddebtfunding,venturecapital,angels,seedfunding
Developingthecluster’sStrategicAgenda
AStrategicAgendaisnotconstrainedbythecurrentavailabilityofresources
• Ithighlightsthepriorityac4vi4es,andthenseekstofindtheresourcesforimplementa4on
Incontrast,aStrategicPlaniden4fiesthepriorityac4vi4estobeundertakenwithintheresourcesthatareavailable
Step11:LinkingtheclusterBasedonaclearunderstanding
ofthecluster’sstrengths
Threelevelsofleverage:1. Withotherregionalclusters
• Linkingrelatedclusters,e.g.wine&tourism• DevelopingtheRegionalInnova%onSystem
2. Na4onally,withclustersinthesamesector• Developingna4onalstrategiesfromtheboRom‐up
3. Interna4onally,withclustersinthesamesector• Fosteringspecialisa4onbetweenclusters• Buildingvaluechain,B2Blinks
Apor]olioofclusteringini%a%vesGävle,Sweden’sClustersuitcase
TheRegionalInnova%onSystem
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 9
LinkingregionalclustersDevelopingnewcombina%onsin
Catalonia,Spain
• A‘KidsCluster’drawingoncompetenciesfrom3regionalclusters:• Children’sclothing,children’spublica4onsandtoys.
• A‘HabitatCluster’drawingon5clusters:• Tworegionalhomefurnitureclusters,aligh4ngcluster,ataps/valvesclusterandahometex4lecluster
LinkingOntario’stopthreeICTclusters:
Linkingregionalclusters Ontario’sTechnologyCorridor
+ +
Step12:Review,evalua%on24‐36monthsalerthelaunch
1. Thepay‐offfromtheclusteringprocess
2. Isthecompe44vnessoftheclusterbeingupgraded?
1.Pay‐offfromtheclusteringprocess
• ‘ReturnonInvestment’review• Qualita4veratherthanquan4ta4ve
• Reviewbothsuccesses&failures
• Feedbackfromclusterstakeholders• Value‐addedbytheclusteringini4a4ve
ReviewingtheBaselineDataAgainstagreedperformanceindicators
Whatwerethekeyperformanceindicatorsfortheclusteringini4a4ve?
• Growthinemployment?NumberofPh.D.?
• Growthinexports?• Numberoffirmsinthecluster?Start‐ups?• Increasedcompe44veness?
• Measuredbymarketshare?Produc4vity?
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 10
2.Upgradingcompe%%veness?Harddata
• Arethecluster’sfirmsabletoprofitablyserviceevenmoredistantcustomers?
• Hasthecluster’smarketsharegrown?
2.Upgradingcompe%%veness?Qualita%ve
• Clumpremoval?Closerlinksamongstfirms?– Increasingtrust,tacitinforma4onflows?– Out‐sourcing,sub‐contrac4ng,co‐specialisa4on?
• CluCerremoval?Arepublicagencypriori4esstronglyinfluencedbythecluster’sagenda?
– Universi4es,schools,training,technologyproviders,investmentaRrac4onagency,exportdevelopmentagency…
• IstheclusterademandingcustomerforR&Dcentersanduniversi4es?
• Anincubatorwithoutwalls?
Clusterreview:Implementa%onFromReviewtoAc%on
• Followingreviewofprojectmilestones,budgets• Closedownslowerini4a4ves?
• CurrentrelevanceofthePreferredFuture?• Opportunitytostretchfurther?
• ArethekeySteppingStoness4llvalid?• Havecircumstanceschangedthestrategy?
• RevisittheLeadershipGroup’smembership?• Extendgenepool?Bringinnextgenera4on?
ClusterworkshopsFundamentaltothecluster
developmentprocess
• ‘Thewisdomofthecrowd’• Consensusbuilding,transparent• Workshopsopentoall
• Broadagreementonpriori4es• Notafewdecidingformany• Capturingheartsaswellasminds
AddressingCompe%%venessThursdayalernoonbreakout
Aninterac%veworkshop
1.LarsEklund,ScandinavianCompe44venessGroup,Sweden
2.IforFfowcs‐Williams,ClusterNavigators,NewZealand
TCI Delhi Cluster Development: The How 11/29/10
© Custer Navigators Ltd 2010 11
IforFfowcs‐WilliamsCEO,ClusterNavigatorsLtd22ExaminerSt,Nelson7010NewZealand
[email protected]+6435480606www.clusternavigators.com
www.linkedin.com/in/clusterdevelopmentSkype:‘clusterguy’Blog:www.e4oncompe44veness.com
Top Related