Hrm- Ict Policies Gsc

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ICT Policies & Global

Supply Chain Penetration

in Developing Countries

WSIS Facilitation Meeting on

« E-Business and E-Employment »

UNCTAD, ITC and ILO

Palais des Nations , 24 May 2007

Claudine Bichara de Oliveira

neTune, Executive Director (Brazil)



ICT Policies & GSC Penetration in Developing Countries

| Claudine Bichara de Oliveira | neTune Ltd, Brazil2

Plan

• Global Supply Chains in Developing Countries – How it Works?

– Main Obstacles

– ICT Requirements and Trends

• Policies & Practices in Latin America – Business Environment Policies

– ICT related Policies and Practices

– Innovation and IT Adoption by SMEs

• General Assessment





Global Supply/Value Chains: What is it?

“Global Value Chains cover a full range of

interrelated productive activities performed

by firms in different geographical locations to

bring out a product or a service from

conception to complete production and

delivery to final consumers”Global Value chains for Building National Productive Capacities

UNCTAD – TD/B/COM.3/79





GSC: How it Works?

Competitiveness

based on cost

reduction through:

• Just-in-time

manufacturing

• Cost of labour indeveloping

countries

Manufacturerss

Distributors Retailers Consumers Suppliers

Competition between chains Source:

VOLLMANN, T.E., CORDON,C. Making supply chain relationships work . M2000 BusinessBriefing, n.8, Lausanne , IMD, 1996.





Attractive Factors to FDI

83%

54%

52%43%

41%

30%

29%

28%

23%

23%Access to export market

Local Government Support

HR Cost & quality

Profit Repatriation

Quality of Infrastructure

Presence of Competitors

Macro-Economic Stability

Legal Environment

Political Stability

Market Share

Source: A. T. KEARNEY





Global Competition Challenges

For TNCs

• Management

• Real time data sharing

• Delivery Delays

• High demand on technology

• Infrastructure

For SMEs

• Economic Globalisation /New

Markets and Competitors

• New Products and Services• Speed of Change

• Exponential Multiplication of

Information

• Production Capability

ICT: Key Ingredient to Enhance Competitiveness





Main Obstacles in Developing Countries

• Lack of strategic vision and/or concrete actions

• Red Tape and Informal economy

• Lack of Venture Capital• Lack of technology infrastructure and logistics

• Human Resources Capabilities

• Legal Framework

- Taxes- Consumer rights- Intellectual property- Self-regulation

- Telecommunications- Security (payment, delivery…)- Electronic contracts and signatures- Internet crimes





ICT Requirements & Trends

• Ubiquitous Communication

– High Speed

– Wireless Technology

– IPv6

• Interoperability and Convergence – Multi-channel operation

– XML language

• Management Support Applications

– SCM applications

– PLM (Product Life Cycle Management)

• Security, Confidence and Trust Aplications and Services





ICT Trend - Example

• RFID - Radio Frequency Identification Technology

for contactless identification of objects.

– Barcode: product identification

– Tag: product description (what it is, where it has been,

when it expires ..)

– Antenna: always turned on, wirelessly

– Biosensor chip: information on physical condition of

materials in transit





Business Environment Policies

• Infrastructure:

Transport, Warehousing, Logistics

• Regional/Int’l Trade Agreements

• Free Trade Zone

• Tax incentives

• Financial system; Royalty

remittances & loans

• Venture Capital and funds

• Public Private partnership

• SMEs competitiveness

• HR: Development of

capabilities & educational

system

• Entrepreneurship andentrepreneurial culture

• Simplification of bureaucracy

• Intelectual property,

Trademarks

• Industrial Clustering

• International Standards

adoption

• Arbitration system adoption





ICT Related Practices and Policies

• Telecom privatisation

• National Strategy for ICT &Development

• Technology clusters

• FOSS• E-Gov Policies: online services &

e-procurement

• Skill development

– Public Awareness

– Technical support training

–High level IT education

• E-Business enabling

environment – PKI: data protection, digital

signatures & certification

– Interoperability of PKI oper. – Acceptance of digital

transactions – Business data online

validation & verification – Transport & logistics

– E-payment – Customs automation – Self regulation for high

quality of online services





Innovation and IT Adoption among SMEs

• Tax incentives to stimulate IT adoption, purchase &

production

• Funding for R&D and innovation• University - Enterprise cooperation

• E-network / linkage to int’l iniciatives

• Business Telecenters





Mexico: “Innovation for Competitiveness”

Programme

• Business Innovation Programme / CONACYT + World Bank

– Consortia and research networks

– Venture capital fund – Pre-competitive fund

– Sectoral funds

– Researchers and technologists in industry

• HR: Financing scholarships Programme / CONACYT

• Technology and innovation policy framework + international

integration





Chile: Customs Modernization / ISIDORA

• Integration of Customs procedures with those of other

public and private participants of the international supplychain such as:

– Other Government agencies (Single-Window)

– Seaports

– Warehouse administrators

– Shippers

– Transport agents

– Consolidators

Internet-Integrated Systems for the Development of Customs

Operations and Regulations





What is Brazil doing ?





Brazil : Governmental Programs

• Governmental Programs towards technologicaldevelopment and innovation adoption in the private sector (specially among SMEs)

– PAC: Program of Acceleration of Growth

– PROGEX: Program of Technological Support to Exportation – PITCE: Industrial, Technological Policies & Foreign Commerce

– PROTEC: Brazilian Society Technological Pro-Innovation

– Program for the Development of the national industry of Sw &related services

– Profarma: production, R,D&I for cies of National control





Brazil : Financial support

– Fiscal exemption: Lei do Bem

– Wages: PDTI; PDTA,for R&D&Inovation, andUniversity/enterprise cooperation: PAPPE, RBT

– Funding: Pró-Inovação (technology for supply chains); JuroZero (inovation in SMEs)

– Private Equity and Venture Capital: Inovar, Bovespa Mais,Forum Brasil

– 16 sectoral funds





Brazil : Enhancing Online Services

• ICP-Brasil / PKI

• E-Ping / Interoperability

• FOSS

• SPB / Sistema de Pagamento Brasileiro

• SISCOMEX – Sistema Integrado de Comercio Exterior + Export Fácil Web

• Sinmetro & ABNT (Certification) procedures via WEb

• NF-e : Nota Fiscal Eletrônica

• Procomex: customs modernization

• BraziltradeNet

• Business Telecenters into SMEs Clusters





General Assessment

• Red tape and high taxation• Security concerns

• Informal economy not integrated, microenterprises still lacking in everything

• Connectivity in remote rural areas• Underdeveloped transportation

infrastructure

• Lack of a “go abroad” culture

• Latin America: distinct trading groups,not a single trading block

• More emphasis on import substitutionthan international market integration

• Segmented efforts

• High potencial local market

• New multinationals emerging from

the developing countries

• New business areas: biotech,energy, environment, etc. in

traditional sectors empowered by

ICTs

• Successful associative initiatives

Still remaining obstacles Assets





How is Brazil in the picture ?

Goods Services

L o c al

Head

R em o t e

CSN

Embraer

SADIA

Grandene

SMEsClusters

Petrobras Pão de Açucar

Mendes Junior

Monsanto (soy)

Automotive

PIM-Manaus(Assembling electronics)

Unilever (food)

Telmex

Telefônica

Tata

Walmart

Petrobras





Role of International Organizations

• Situation analysis and strategy definition for e-trade

practices

• International standards and norms

• Research and information exchange with other

regions

• Capacity building at all levels





Is the World Flat ?

“Globalization has bound people, countries, markets closer than ever,rendering national borders relics of a bygone era – or so we’re told”

“[But] In fact, more than 90% of all phone calls, web traffic, andinvestment is local”

“Why the world isn’t Flat”- Pankaj Ghemawat, Harvard Business School Foreign Policy, March-april 2007 pp.54-60

“Obviously, the world is not yet flat. ….This is about trend lines and ascale of change brought on by these “flattening” new technologies.

Answer from Thomas L. Friedman – “The World is Flat” author

Foreign policy, May-June 2007 p.4 - Letters





THANK YOU !

[email protected]

Rio de Janeiro, Brazil

Tel/Fax: +55 21 2511-3129

www.netune.com.br

mailto:[email protected]

mailto:[email protected]

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