Service-Sectors 2009218597234

Export Strategy Design Sector-Level Strategy Service Sectors
Guidelines for Strategy-Makers
Acknowledgements
Members of the International Trade Centre's Executive Forum Team and Trade in Services Section prepared these guidelines. Substantive process and technical contributions were provided by Mr. Stephen Sultana (Consultant, Malta), Ms. Leonor von Limburg (evtrade, Germany) and Professor Owen Skae (School of Accounting, University of KwaZulu-Natal, South Africa) of the modicum coalition.
Part A
Introduction
Introduction
Application of these Guidelines will result in the preparation of a realistic export development strategy for a service sector or sub-sector. It is recommended that a team, comprising private and public sector representatives, develops the strategy and that it completes the process within a maximum period of three months.
Introduction
The strategy development process involves the completion of thirteen steps. Each step is covered in detail in these Guidelines. The Thirteen Steps of Sector Strategy Design and Management 1 Process Fundamentals 2 Ensure Private Sector Leadership and Public Sector Support Ensure Comprehensive Scope Border-In Border Border-Out Development Benchmark the Sector's Business Environment Assess Competitors Review Main Markets, Current Performance and Capacity to Respond Evaluate Current Approach to Export Development Improve Efficiency Retain Value Add Value Create Value Maximize the Sectors Contribution to Development Current Participants in the Value Chain Potential Participants in the Value Chains Aspiring Participants in the Value Chain Competency Development Trade Information Trade Finance Export Quality Management Other Support Finance Institutions Programmes People
Depart from a Thorough Assessment of the Sector
4 Analysis Where are We Now?
Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options to:
Confirm Client Demands and Needs
Review Essential Trade Support Services
7 8 Strategic Focus Where Do We Want to Be? 9 10 11 Formulation and Management How Do We Get There?
Assess Available Resources within Public and Private Sectors Prepare a SWOT Analysis Create a Vision Specify Priorities Establish the Framework for Managing and Monitoring the Strategy
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Formulate a Plan of Action
Confirm Strategic Considerations Determine Objectives Specify Performance Measures Set Targets Specify Initiatives Identify Responsible Organizations Allocate Resources Set the Implementation Schedule
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Maintain the Public-Private Partnership for Strategy Implementation
Introduction
The Strategy Design and Management Framework The thirteen-step process involves determining: (i) (ii) (iii) where the sector currently stands with respect to its international competitiveness and performance, where the sector should be with respect to competitiveness and performance within a period of 3 to 5 years, and how the sector will reach this position within the specified timeframe.
Once the Strategy Team has been established and completed its analysis of where the sector currently stands with respect to foreign competition, performance, market opportunities and capacities to respond (i.e. completed Steps 1 to 8), it should begin the detailed design phase of the process. It is important that the Team determines the most effective approach to managing the implementation of the strategy implementation, concurrently with preparing the strategys detailed design. To this end, it is recommended that the Strategy Team: defines a Vision for the medium-term development of the sector (i.e. where do we want to be in 3 to 5 years' time); takes into account the Perspectives of the various stakeholders in the sector (i.e. the Development Perspective, the Competitiveness Perspective, the Client Perspective and Institutional Perspective); confirms the priority Strategic Considerations of each Stakeholder Perspective; determines what Objectives are to be achieved for each Stakeholder Perspective; agrees the Measures that will be used to determine the extent to which each Objective is being achieved during implementation of the strategy; sets Targets against which these Measures will be benchmarked; specifies the Initiatives that will be implemented to achieve each Objective; identifies those Organizations that will be responsible for implementing each Initiative; realistically assesses and effectively allocates Resources to the implementing Organizations; and prepares a detailed Plan of Action and a schedule for implementing the Initiatives.
In addition, it is recommended that the Strategy Team should decide on which organization, or coalition of organizations, will assume responsibility for monitoring the strategys implementation and impact.
Introduction
The Four Modes of Supply Competitiveness in a service sector is often determined by advantages related to the Mode of Supply. The World Trade Organizations General Agreement on Trade in Services (GATS) identifies four different "modes" of supply: Mode 1 or Cross-Border represents services that are sold by someone in your country to someone abroad, with only the service crossing the border e.g. architectural drawings sent by courier and a consultancy report sent by e-mail. Mode 2 or Consumption Abroad represents services sold to foreigners in your country. These include all services sold to foreign firms, whether in the domestic economy or offshore. In addition to services sold to resident offices of international organizations (e.g. UNDP), or individual foreigners visiting (e.g. tourists, trainees, persons seeking medical treatment). Mode 3 or Commercial Presence refers to national companies established abroad selling services in a foreign market. Mode 4 or Temporary Movement refers to services that are sold or delivered through the presence of the service provider temporarily in a foreign market. For example, if you were to travel to South Africa to deliver training, you would be exporting through Mode 4.
It is essential that the Strategy Team keep these Modes of Supply in view throughout the strategy design process, especially in identifying supply alternatives.
Introduction
The Strategy Design and Management Framework An Illustration
The Development Perspective
Weighting of Perspectives Strategic Consideration #1 - Objectives - Performance and Impact Measures - Targets - Initiatives
To achieve the vision, how must politicians, government decision-makers, civil society and the donor community perceive its relevance from the standpoints of social and economic development and its contribution to the national good? What are the implications for strategy design and management?
Strategic Consideration #1: The Development Gear of Strategy
The Competitiveness Perspective

Strategic Consideration #2-4 - Objectives - Performance and Impact Measures - Targets - Initiatives Priorities
To achieve the vision, how must sector associations and advocacy groups, potential investors (domestic and foreign) and prospective buyers/importers perceive it in terms of reinforcing the sectors capacity, improving the business environment, enhancing participation in the international value chain and increasing the sectors opportunities for value retention, value addition and value creation? What are the implications for strategy design and management? #3: The Border Gear of Strategy #4: The Border-Out Gear of Strategy
#2: The Border-In Gear of Strategy
The Vision The Client Perspective

#5: Client Priorities
To achieve the vision, how must the sectors current, potential and aspiring exporters, and other key enterprises and players in the sectors value chain perceive its relevance in terms of furthering their commercial objectives and satisfying their needs for support? What are the implications for strategy design and management? #8: Trade Finance #9: Quality Management #10: Other Support
Strategic Consideration #5-10 - Objectives - Performance and Impact Measures - Targets - Initiatives
#6: Business Competency
#7: Trade Information
The Institutional Perspective
To achieve the vision, how must each organization w ithin the sectors trade support netw ork, public and private, perceive the vision's relevance in terms of consolidating/reinforcing its position, facilitating its w ork and enhancing its capacities and competencies? What are the implications for strategy design and management? #12: The Services Delivery Netw ork
Resources
#11: The Strategy Support Netw ork
Introduction
The Sector's Trade Support Network Throughout the strategy design process, the Strategy Team should assess the implications of each decision and strategic option on the sectors trade support network. The trade support network, in fact, involves two networks: the export strategy support network which is responsible for ensuring that the sectors business and policy environment reinforces the sectors competitiveness (and the competitiveness of enterprises in the sector); and the services delivery network, which comprises those public and private sector organizations that provide export-related services to enterprises in the sector.
Relevant Line Ministries Ministry of Education and Research Ministry of Com m unication and Inform ation Technology Ministry of Finance Ministries of Trade, Econom y and Com m erce Export / Com petitiveness Council Association of Exporters and Im porters
Ministry for Wom en's Affairs
Cham ber of Com m erce
Ministry of Foreign Affairs
Export Strategy Support Network

Board of Investm ent
Regional and Local Governm ents Statistical Agency
Ministry of Labour
Service Sector Associations Research and Technology Organizations Banks / Financial Services Organizations Clustering Organizations Technology Parks & Business Innovation Centres Sm all Industry Developm ent Organization Regional Developm ent Organizations NGOs Border-In
Standards Organization Vocational and Training Centers Universities Certification Bodies
Services Delivery Network

Developm ent
Border Telecom s Organizations
Insurers
Wom en's Associations Border-Out Micro Finance Providers Trade Prom otion Organizations Investm ent Prom otion Agency Trade Inform ation Organizations Exporters' Associations
Introduction
The Output of the Process - The Sector-Level Export Strategy Document It is recommended that the Strategy Team prepare a written document that summarizes its analysis, conclusions, and recommendations for action. It is, in this regard, important that the Team ensures that specific members are assigned responsibility for preparing the Document at the outset of the strategy design process. Recommended Outline of the Strategy Document
1. Introduction Rationale Principles of Analysis: Scope of Strategy Framework for Strategy Design and Management Application of the Value Chain 2. Where Do We Want to Be? The Vision The Sectors Future Value Chain An Illustration 3. Where Are We Now? An Assessment Export Performance and Assessment of Overall Competitiveness The Sectors Current Value Chain An Illustration Performance against Critical Success Factors Government Policy and Strategy in Support of the Sector The Sectors Trade Support Network: Capacity, Competency and Coordination 4. The Resource Situation in the Public and Private Sectors (Current and Projected) 5. SWOT Analysis of the Sector 6. The Way Forward (over 3-5 years): The Development Perspective Strategic Consideration # 1 Developmental Considerations and Priorities The Competitiveness Perspective Strategic Consideration # 2 Border-In Issues and Priorities Strategic Consideration # 3 Border Issues and Priorities Strategic Consideration # 4 Border-Out Issues and Priorities The Client Perspective Strategic Consideration # 5 Client Prioritization Current Exporters and Other Current Participants in the Value Chain: Support Requirements and Response Potential Exporters and Other Potential Participants in the Value Chain: Support Requirements and Response Aspiring Exporters and Other Aspiring Participants in the Value Chain: Support Requirements and Response Implications for Sector Support Services Strategic Consideration # 6 Business Competency Strategic Consideration # 7 Trade Information Strategic Consideration # 8 Trade Finance Strategic Consideration # 9 Quality Management Strategic Consideration #10 Other Support Services The Institutional Perspective Strategic Consideration # 11 Strengthening the Sectors Strategy Support Network: Strategy Coordination and Management: Structure Process (Strategy Monitoring) Strategic Consideration # 12 The Sectors Services Delivery Network 7. Weighting of the Stakeholder Perspectives and Summary of Strategic Objectives 8. Resource Mobilization Annex 1: Overview of the Sectors Global Market Annex 2: The Plan of Action Annex 3: The Strategys Balanced Scorecard
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Part B Process Fundamentals
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Process Fundamentals
Steps 1 and 2 of the Strategy Design and Management Process 1 Process Fundamentals 2 Ensure Private Sector Leadership and Public Sector Support Ensure Comprehensive Scope Border-In Border Border-Out Development
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Step 1. Ensure Private Sector Leadership and Public Sector Support ITC's experience suggests that the private sector has a better understanding (than the public sector) of best business practices and market requirements in the target sector. Consequently, ITC recommends that the private sector should take the lead in designing sector-level strategy. The ITC approach involves, therefore, the private sector determining priorities within each target sector and developing strategy within the context of these priorities, while the public sector maintains responsibility for determining priorities among sectors. To ensure that the design process is effectively managed, it is recommended that overall leadership be assigned to one member of the Strategy Team. Ideally this 'navigator' will be from the sector association. Strategy Team Membership Team Navigator: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #: Team Member 1: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #: Team Member 2: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #: Team Member 3: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #:
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Process Definition
Step 1. Ensure Private Sector Leadership and Public Sector Support Strategy Team Membership (continued) Team Member (4): Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #: Team Member 5: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #: Team Member 6: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #: Team Member 7: Name: Surname: Position: Organization / Company: E-mail Address: Telephone #: Fax #:
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Step 1. Ensure Private Sector Leadership and Public Sector Support To facilitate management, and transparency, and to ensure that all interested parties are engaged in the process, it is recommended that the Team work on the basis of a RACI matrix. The RACI matrix assigns specific functions to each team member with respect to completion of individual tasks: to be Responsible (R) for completing, or contributing to the completion, of a particular task, to be Accountable (A) for the completion of a task by an agreed time and to an agreed standard, to be Consulted (C) while the task is being completed, or to be Informed (I) on progress.
It is advisable to routinely consult and inform all stakeholders, including those who are not Team members. This ensures that there is universal support of the process. It will also facilitate information collection and analysis.
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Example of RACI Matrix
The RACI Matrix Team Member Informed Start End
Week 1 Week 1 Week 1 Week 1 Week 1 8,9 6,8 5 7,4 Week 1 Week 1 Week 1 Week 1 Week 4 Week 4 Week 4 Week 4 Week 4 Week 4 6 Week 5 Week 2 Week 2 Week 2 Week 2 Week 3 Week 3 Week 3 Week 3 Week 4 Week 4
. Responsible Accountable Consulted Task Step 1: Ensure Private Sector Leadership and Public Sector Support Task: Establish Sector Strategy Team Navigator Task: Determine the Sectors Business Model All Navigator Step 2: Ensure Comprehensive Scope Task: Prepare Summary of Strategic Consideration #1: All 4 Development Issues Task: Prepare Summary of Strategic Consideration #2: All 2 Border-In Issues Task: Prepare Summary of Strategic Consideration #3: All 5 Border Issues Task: Prepare Summary of Strategic Consideration #4: All 7 Border-Out Issues Step 3: Depart from a Thorough Assessment of the Sector Task: Benchmark the Sector's Business Environment 1,4 7 2,3,5,6 Task: Assess Competitors 2,5 1 3,4,7,9 Task: Review Main Markets, Current Performance and 3,7,9 6 1,2,4,8 Capacities to Respond Task: Review Current Approach to Export Development 5,6 8 1,2,3,9 Step 4: Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options Task: Confirm the Sectors Business Model All Navigator Task: Map and Analyze the Value Chain All Navigator Task: Map Alternative Value Chains by Mode of Supply All Navigator Task: Assess Ability to Meet Critical Success Factors All Navigator Task: Review Value Options All Navigator Task: Develop an Initial Version of the Future Value Chain All Navigator Step 5: Confirm Client Demands and Needs Task: Assess Demands and Needs of Client Categories All Navigator 1,5,8
Week 4 Week 4 Week 5
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9 3 8 6 4 2,7 1,2,9 7,8 Week 5 Week 5 Week 5 4,5,9 1,7,8 Week 8 Week 9 Week 9 Week 9 Week 9 Week 9 Navigator Navigator 1 Navigator Navigator Navigator Navigator Navigator Navigator Navigator 1 1 Week 7 Week 7 Week 7 Week 8 Week 9 Week 9 Week 9 Week 9 Week 9 Week 10 Week 10 Week 11 Week 12 Week 12 Week 12
Step 6: Review Essential Trade Support Services Task: Assess Business Competency Development Services 3,4,5,8 Task: Assess Trade Information Services 2,4,6 Task: Assess Trade Finance Services 1,9 Task: Assess Quality Management Services 5,7 Task: Assess Other Trade Support Services 2,5 Step 7: Assess Available Resources within the Public and Private Sectors Task: Assess Available Resources (Strategy Support All Network) (institution specific) Task: Assess Available Resources (Services Delivery All Network) (institution specific) Task: Assess Available Resources (Business Sector) 2,4,7 Step 8: Prepare a SWOT Analysis Task: Complete Sector's SWOT All Step 9: Create a Vision Task: Review Initial Version of Future Value Chain All Task: Draft the Vision All Step 10: Specify Priorities Task: Prepare Long List of Priorities All Task: Weight the Stakeholder Perspectives All Task: Prepare Final List of Priorities All Step 11: Establish the Framework for Managing and Monitoring the Strategy Task: Prepare the Objectives/Measures/Targets Matrix All Step 12: Formulate a Plan of Action Task: Complete the Objectives/Initiatives/Organizations/ All Resources Matrix and Timeframe Step 13: Maintain the Public-Private Partnership for Strategy Implementation Task: Review Options and Determine Structure/Approach All 1,2,6,7 1,5,7,8,9 3,4,5,6 3,4,8 1,3,6,9 Week 6 Week 6 Week 6 Week 6 Week 6 Week 7 Week 7 Week 7 Week 7 Week 7
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The Strategy Teams RACI Matrix
It is recommended that the Strategy Teams Navigator complete the following matrix at the beginning of the strategy design process. The RACI Matrix Team Member Informed Start End
. Responsible Accountable Consulted Task Step 1: Ensure Private Sector Leadership and Public Sector Support Task: Establish Sector Strategy Team Task: Determine the Sectors Business Model Step 2: Ensure Comprehensive Scope Task: Prepare Summary of Strategic Consideration #1: Development Issues Task: Prepare Summary of Strategic Consideration #2: Border-In Issues Task: Prepare Summary of Strategic Consideration #3: Border Issues Task: Prepare Summary of Strategic Consideration #4: Border-Out Issues Step 3: Depart from a Thorough Assessment of the Sector Task: Benchmark the Sector's Business Environment Task: Assess Competitors Task: Review Main Markets, Current Performance and Capacities to Respond Task: Review Current Approach to Export Development Step 4: Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options Task: Confirm the Sectors Business Model Task: Map and Analyze the Value Chain Task: Map Alternative Value Chains by Mode of Supply Task: Assess Ability to Meet Critical Success Factors Task: Review Value Options Task: Develop an Initial Version of the Future Value Chain Step 5: Confirm Client Demands and Needs Task: Assess Demands and Needs of Client Categories
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Step 6: Review Essential Trade Support Services Task: Assess Business Competency Development Services Task: Assess Trade Information Services Task: Assess Trade Finance Services Task: Assess Quality Management Services Task: Assess Other Trade Support Services Step 7: Assess Available Resources within the Public and Private Sectors Task: Assess Available Resources (Strategy Support Network) Task: Assess Available Resources (Services Delivery Network) Task: Assess Available Resources (Business Sector) Step 8: Prepare a SWOT Analysis Task: Complete Sector's SWOT Step 9: Create a Vision Task: Review Initial Version of Future Value Chain Task: Draft the Vision Step 10: Specify Priorities Task: Prepare Long List of Priorities Task: Weight the Stakeholder Perspectives Task: Prepare Final List of Priorities Step 11: Establish the Framework for Managing and Monitoring the Strategy Task: Prepare the Objectives/Measures/Targets Matrix Step 12: Formulate a Plan of Action Task: Complete the Objectives/Initiatives/Organizations/ Resources Matrix and Timeframe Step 13: Maintain the Public-Private Partnership for Strategy Implementation Task: Review Options and Determine Structure/Approach
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Step 1. Ensure Private Sector Leadership and Public Sector Support Determine the Sectors Business Model
Once the Strategy Team has been set-up, its first task is to agree the business model for the sector. This is necessary given the fact that services provide a degree of flexibility in their design, production and delivery that is far greater than their product counterparts. Moreover, in service sectors, there are significantly greater possibilities for positioning the service and segmenting the market, i.e. defining the business model, than in product sectors. Developing the business model for the sector is, in large part, an exercise in understanding the technical and commercial processes involved. Two examples follow.
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Determine the Sectors Business Model
Example 1: The Business Model for the Export of Management Training Services
Specialized Knowledge --Expertise and Experience --Resources (People, Equipment, IPR) Establish Network of Qualified Tutors and Experts (Internal or External) Trainees Secured via InMarket Trainees Marketing and Programme Arrive in Packaging the Sales of Packager Firm's Country Firm's Training Firm's Training OR to Receive Capabilities Capabilities via Online Training Registration or Referals
Trainees Leave Firm's Country
Development of Service Concept: Management Training
Design of Curriculum and Training Materials
Delivery of Training
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Determine the Sectors Business Model
Example 2: The Business Model for the Export of Customized Software
Specialized Knowledge --Buyer Expertise and Approaches InExperience Market Broker --for Supply of Resources Customized (IPR, Software Proprietary Code, People, Equipment) Buyer Agrees to Business / Technical Specifications Onsite Testing of Prototype by Broker (with possible inputs by Supplier) Onsite Deployment by Broker (with possible inputs by Supplier)
Broker Consults with Buyer to Understand Requirements, Prepares Business Specification and Forwards to Supplier
PostDeployment Review and Fine Tuning / Changes --User Acceptance
Post-Sale Support / Training / Upgrading as per Agreed Service Agreement (with possible inputs by inmarket associate)
Development of Service Concept: Customized Software
Design Technical Specification / Post-Sale Agreement
Offsite Development of Prototype (with possible outsourcing)
Bug Fixing
'Packaging' of Software and Documentation
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Step 2. Ensure Comprehensive Scope To be effective, sector-level strategy must be comprehensive, responding to all issues that have an impact on the sectors business model and its international competitiveness. As importantly, strategy must address the following key question: How will improved competitiveness of the sector contribute directly to the wider concern of economic and social development within the country as a whole? In other words, what is, and what should be the sectors contribution to national development. To achieve this combination of competitiveness and developmental impact, the scope of strategy should comprise four 'gears': the border-in gear the border gear the border-out gear the development gear
For strategy to be effective, each gear must mesh with (i.e. reinforce) the others.
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Step 2. Ensure Comprehensive Scope The tendency is for strategy-makers to concentrate on improving export performance by: seeking increased access into priority markets; and concentrating trade support on market development and promotional activities.
In short, strategy-makers are usually preoccupied with the border-out gear of strategy. This preoccupation is inadequate. While border-out activities represent an essential aspect of strategy, they do not address the key factors determining export competitiveness. Export competitiveness is a function of the capacity to sell the service demanded in the international marketplace, at the quantity, quality, price and time required. The border-out gear of strategy does not address these issues. The greatest single challenge faced by service exporters from developing countries and transition economies, is to acquire credibility. Credibility, in turn, leads to trust which in the service sector is significantly more important than for product sectors. Credibility can only be achieved through relationship-building, based on a consistent demonstration of capability and performance. The rationale for highlighting credibility and relationship-building is obvious. Services are intangible. They are therefore difficult to assess against objective criteria. Indeed, most services are sold on the basis of a 'promise'. The purchase decision is, in many respects, a leap of faith. The higher the degree of 'criticality' of the service, the greater is the level of credibility required by the buyer. Criticality can be defined in terms of: the importance of the service to the buyer's operations and profitability, the nature of the service itself (e.g. in terms of the level of confidentiality required, the sensitivity and timing of the service).
Considerations relating to credibility, relationship-building and criticality must therefore underpin the strategy's three competitiveness gears, i.e. border-in, border, and border-out.
Only through implementation of a strategy that is driven by the combined power of border-in, border and border-out gears, can long-term international competitiveness within the sector be achieved, and momentum given to the development gear of strategy.
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Step 2. Ensure Comprehensive Scope The Border-In Gear of Sector-Level Export Strategy Strategy must ensure that the sectors 'supply side' can effectively respond to opportunities in the international marketplace. Strategy must therefore encompass initiatives to: reinforce existing supply side capacities, develop new capacities, reinforce skill and technical competency and encourage entrepreneurship.
This, paradoxically, requires export strategy to have an inward-looking orientation. Border-in issues can be divided into three categories: Capacity Development Capacity development issues relate to supply capability with regard to productivity, volume, quality, level of sophistication and value-addition. Enhancing capacity requires the combination of private sector readiness to invest, and the availability of specialized skills and services within the private and public sectors. The challenge for the strategist is twofold: to establish an environment that facilitates skill acquisition, promotes entrepreneurship and stimulates private sector investment, and to ensure that the export support services delivered to enterprises in the sector encourage investment, increased productivity and export orientation.
Capacity Diversification Capacity diversification involves: generating new service lines (i.e broadening and adjusting the sectors current value chain) and/or producing new related services (i.e entering into new value chains associated with the sector).
In service sectors, capacity diversification is generally "intellect intensive", or at a minimum, people intensive, rather than capital intensive. Capacity diversification, therefore, is often more an issue of innovation than of financial risk. Support to the development of enterprise clusters and joint ventures can be particularly effective in diversifying export capacity within a sector. Human Capital Development Strategy-makers must ensure that the strategy addresses directly the need to generate, and continuously upgrade, the sectors basic and specialized vocational and technical competencies. The ability of the sector to grow depends considerably on the overall importance that the sector is given at national level, on having a concentration of capacity (to meet demand, to encourage new entrants into the sector, to stimulate innovation) and on the perception of international buyers. Adequate human capital development contributes to the sectors strength on all counts As development of the service sector relies not just on technical competence but entrepreneurial zeal, the strategy-maker must ensure that the stimulation of entrepreneurship is a key component of the Border-In strategic consideration.
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Step 2. Ensure Comprehensive Scope It is recommended that each team member completes the following chart and that the designated RACI 'A' team member then prepares an overall summary of the Teams views and findings. Issues The Border-In Gear of Strategy Capacity Development:
Capacity Diversification:
Human Capital Development:
Implications for Strategy Objectives On-Going/Required Initiatives Organizations Concerned Resource Implications
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Step 2. Ensure Comprehensive Scope The Border Gear of Export Strategy Border issues have a significant influence on the sectors competitiveness. They define the sector's operating environment, and largely dictate the cost of the export transaction. Analysis of the border gear of strategy is, therefore, of paramount importance to the strategy design process. An initial review of border issues will assist the Strategy Team in identifying what organizations should be closely involved in the process (i.e. the strategy support network and the services delivery network). The Strategy Team will have to consider objectively all border issues that affect the sectors business operating environment. Infrastructure Issues Probably the most obvious border issues to be addressed are bottlenecks in traderelated infrastructure. Of particular importance to all service sectors is the availability of an efficient, reliable and competitively priced international telecommunications infrastructure, both for telephony and for Internet, which often represents the service enterprise's sole distribution channel, i.e. Mode 1 of Supply (e.g. online booking systems, digital media, medical transcriptions, and translation services). Other types of infrastructure are, of course, particularly relevant to the competitiveness of specific service sectors. For example, port facilities are crucial to transshipment services and tourism. Legal infrastructure is essential to export capability in financial and professional services. Trade Facilitation Issues Perhaps the second most important border issue that the sector strategy must address relates to regulations, administrative procedures and documentation requirements that govern how business is done in the sector. Unlike trade facilitation for product sectors where the focus must be on minimizing internal regulations with respect to export, trade facilitation from the standpoint of the service exporter is largely an external matter. For services firms, this often involves facilitating enterprise managers and entrepreneurs obtaining business and transit visas. Why? Because exporting services such as business consultancy, training, construction and environmental services requires the temporary presence of the service provider in the target foreign market. Thus for example, the conclusion of bilateral agreements on the issue of visas on arrival could result in a reduction in commercial uncertainty (particularly with respect to the pursuit of business opportunities), and in the time and costs expended by the service exporter (or aspiring exporter) in accessing and developing the market. 'Cost of Doing Business' Issues The strategy must also seek to reduce the cost of doing business within the sector. For service sectors, the reduction of non-tradeable costs is key to export competitiveness. Non-tradeable costs include costs of company registration, ISO certification, international accreditation, personnel-specific accreditation, membership in locally and internationally recognized industry associations and other costs that cannot be reasonably built into the price of the service export.
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Step 2. Ensure Comprehensive Scope Each team member should complete the following chart and the designated RACI 'A' team member should then summarize the Teams views and conclusions. Issues The Border Gear of Strategy Infrastructure:
Trade Facilitation:
Cost of Doing Business:
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Step 2. Ensure Comprehensive Scope The Border-Out Gear of Export Strategy The border-out gear of export strategy relates to:
Market Access This relates to the negotiation of market-entry conditions and includes the assessment of the impact of non-tariff barriers and related entry issues on the countrys medium- to long-term export prospects. In-Market Support Services These include the dissemination of trade information, identification of commercial opportunities, initiation of contact with potential buyers, generation of interest among prospective foreign direct investors and joint venture partners, and provision of support to exporters and entrepreneurs visiting the market. National Promotion This involves building and reinforcing the international image of the country and its export sectors, and organizing promotional programmes (e.g. publicity, fairs and missions).
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Step 2. Ensure Comprehensive Scope Each team member should complete the following chart and the designated RACI 'A' team member should then summarize the Teams views and conclusions. Issues The Border-Out Gear of Strategy: Market Access:
In-Market Support Services:
National Promotion:
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Step 2. Ensure Comprehensive Scope The Development Gear of Export Strategy While the border-in, border and border-out gears of strategy directly influence the sector's competitiveness, the development gear of strategy reflects the extent of the export sector's contribution to overall economic and social development within the country. The development gear addresses the key national issues of: Employment generation Poverty alleviation Development of disadvantaged and backward regions Gender equality Environmental sustainability.
To ensure widest stakeholder commitment, the strategy must highlight the development perspective.
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Step 2. Ensure Comprehensive Scope Each team member should complete the following chart and the designated RACI 'A' team member should then summarize the Teams views and conclusions. Issues The Development Gear of Strategy Employment generation:
Poverty alleviation:
Development of backward regions and disadvantaged groups:
Gender equality:
Environmental sustainability:
Other:
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Part C Analysis Where are We Now?
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Steps 3 to 8 of the Strategy Design and Management Process Benchmark the Sector's Business Environment Assess Competitors Review Main Markets, Current Performance and Capacity to Respond Evaluate Current Approach to Export Development Improve Efficiency Retain Value Add Value Create Value Maximize the Sectors Contribution to Development Current Participants in the Value Chain Potential Participants in the Value Chains Aspiring Participants in the Value Chain Competency Development Trade Information Trade Finance Export Quality Management Other Support Finance Institutions Programmes People
Depart from a Thorough Assessment of the Sector
4 Analysis Where are We Now?
Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options to:
Confirm Client Demands and Needs
Review Essential Trade Support Services
7 8
Assess Available Resources within Public and Private Sectors Prepare a SWOT Analysis
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Analysis Where are We Now?

Step 3. Depart from a Thorough Assessment of the Sector To be in a position to identify and assess strategic options, the Strategy Team should first determine where the sector currently stands, in terms of: competitiveness, export performance, readiness to meet future market opportunities and challenges.
As a first step the Strategy Team should: benchmark the sectors business environment, identify competitors, review main markets, current performance and capacity to respond to commercial opportunities and demands, evaluate the current approach to export development.
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Step 3. Depart from a Thorough Assessment of the Sector Benchmark the Sector's Business Environment It is suggested that each member of the Strategy Team completes the following and then compares notes. Competitiveness Indicators A. Values and Behaviour
1. My country has: Social cohesion A strong legal and institutional base A system of values that encourages learning and innovation A system of values that encourages entrepreneurship Mechanisms to encourage cooperation between the private and public sectors Confidence in the integrity of public institutions and officials (Y/N) Remarks
B. Macroeconomic Environment
1. My country has a predictable macroeconomic environment for enterprise development characterized by: Low budget deficits Tight inflation control Competitive and stable exchange rates Intense local competition (including in the target sector) Competition in the banking system A high level of private business investment (as percentage of GDP) A high level of foreign direct investment Openness to trade (import and export policies) 2. The current approach to the sector's development is: Export-oriented Supportive of business initiatives Supportive of investment in research and development Reinforced by full protection of property rights, including intellectual property (Y/N) Remarks (Y/N) Remarks
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Step 3. - Depart from a Thorough Assessment of the Sector Competitiveness Indicators (continued) C. Private Sector Support Environment
1. Compared to foreign competitors, the sector has a competitive advantage: 2. The competitive advantage of the sector is due to: Sustained investment in human capital Access to a sizeable pool of suitably-trained personnel (basic level) Access to a sizeable pool of suitably-trained personnel (technical and managerial ) Assistance from industry associations Availability of affordable local business counselling and management consulting Availability of technological support Existence of business incubators Existence of business parks Proactive support to enterprise clustering Tax incentives for training Tax incentives for research and development 3. Enterprise competitiveness in the sector is supported by: Effective and competitively priced telecommunications (including Internet access) Efficient and cost-effective issue of business and transit visas Regular and direct flights to major cities 4. Enterprises in the sector enjoy: Export incentives Tax incentives Access to cost competitive finance Access to training and competency development services (Y/N) Remarks (Y/N) Remarks (Y/N) Remarks
D. Business Attitudes (in the sector)

1. Compared with foreign competitors, enterprises in the sector seek to: Continuously improve efficiency Continuously raise quality performance Continuously innovate Continuously upgrade their technology absorption capacity Pursue realistic business strategies Enter alliances and cooperation schemes with other local firms Achieve effective advocacy through business associations (Y/N) Remarks
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Step 3. Depart from a Thorough Assessment of the Sector Benchmark the Sector's Business Environment The RACI 'A' team member concerned with the task of benchmarking the sectors competitiveness should summarize the Teams analysis and conclusions. The Sectors Competitive Environment Overall Conclusions Values and Behaviour:
Macroeconomic Environment:
Private Sector Support Environment:
Business Attitudes:
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Step 3. Depart from a Thorough Assessment of the Sector
Assess Competitors
It is recommended that two to three members of the Strategy Team assume responsibility for completing this assessment.
Sector Competitiveness
Current Competitiveness Situation Likely Future Situation (in absence of new strategy)
Main Competitors Why? More (M), Equally (E) or Less Competitive Why?
More (M), Equally (E) or Less (L) Competitive
Country 1
Country 2
Country 3
Country 4
Country 5
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Step 3. Depart from a Thorough Assessment of the Sector Assess Competitors Based on the previous analysis, the RACI 'A' team member should complete the following. Assessment of Competitors to the Sector Overall Conclusions Main Competitors:
Sectors Current Competitive Position:
Sectors Forecast Competitive Position (3-5 Years):
Key Issues:
Strategic Options:
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Step 3. Depart from a Thorough Assessment of the Sector Review Main Markets, Current Performance and Capacities to Respond to Commercial Opportunities and Demands Consolidated statistical information on trade in services is seldom available. While statistics on specific services and their export or import may exist, these sources are extremely difficult to locate. As a consequence, the strategy-maker will most likely have to rely on business journals and estimates and projections provided by enterprises in the sector, and anecdotal evidence to obtain an overall picture of existing and potential markets, and of the sectors export performance.
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Review Main Markets, Current Performance and Capacities to Respond to Market Opportunities and Demands
It is recommended that two to three members of the Strategy Team assume responsibility for completing this assessment for each of the sectors main sub-sectors or service lines.
Part 1: Main Markets (Traditional and New Markets)

Total Exports to Country (Estimated Value) Estimated Share of the Countrys Total Import of the Service Prospects for Increasing and/or Diversifying Exports to Country (Remarks) Recommended as Target Market in Future Strategy? (Yes/No)
Country
Service Lines Exported to Country
1.
2.
3.
4.
5.
6.
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Review Main Markets, Current Performance and Capacities to Respond to Market Opportunities and Demands
Part 2: Sectors Capacity and Export Performance Sub-Sector or Service Line: 0-10 Employees Growth Growth Growth Neutral Neutral Neutral 11-30 Employees More than 30 Employees Decline Decline Decline
Number of Firms:
# of Firms as Compared to 5 Years Ago
Trend (Export Value):
Trend (Value Addition):
Dominant Mode of Supply: High High Medium Medium Low Low
Capacity to Improve Performance in Traditional Markets
Sector Capacity to Improve Performance in New Markets
Key Factors Influencing Capacity and Performance Priority to be Attached to SubSector/Service Line: High
Medium
Low
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Step 3. Depart from a Thorough Assessment of the Sector Main Markets, Current Performance and Capacities to Respond Following the Teams assessment of main markets, performance and capacities to respond the designated RACI 'A' team member should complete the following summary. Main Markets, Current Performance and Capacities to Respond - Conclusions Main and Prospective Markets:
Current Performance:
Sectors Capacity to Improve on Performance:
Scope for Diversification (Markets and Service Offering):
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Step 3. Depart from a Thorough Assessment of the Sector Evaluate Current Approach to Export Development in the Sector It is important for the Strategy Team to review the initiatives underway to address the issues that influence the sectors export competitiveness and prospects for value acquisition, greater value retention, value addition and value creation. The objective is to identify on-going programmes that are having a positive impact on the sectors export performance and to build on these within the context of an enhanced sectorlevel strategy. Likewise, programmes of limited utility, or those which have a negative impact on the sector's export performance, should be identified with a view to phasing them out under a future strategy.
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Step 3. - Depart from a Thorough Assessment of the Sector Evaluate Current Approach to Export Development in the Sector Designated members of the Strategy Team should complete the following assessment. Assessment Current Approach to Export Development in the Sector Status Y/N 1. An export strategy exists for the sector 2. Scope and emphasis of strategy Border-In Border Border-Out 3. The strategy is led by the private sector 4. The strategy specifies priorities 5. The strategy is under implementation 6. The strategy is being managed and monitored 7. The strategys objectives are Remarks
8. The principal initiatives of the strategy are 9. These initiatives are under implementation 10. The key organizations concerned with strategy implementation and management are 11. Resource constraints mainly are financial institutional personnel 12. The more effective initiatives/programmes include 13. The public-private partnership in strategy design and management is effective 14. Areas where the strategy is failing include 15. New initiatives are required in the following areas 16. Overall the strategy is working 17. The major lessons learned are
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Step 3. Depart from a Thorough Assessment of the Sector Current Approach to Export Development in the Sector The following should be completed by the designated RACI 'A' team member. Current Approach and Strategy for Export Development in the Sector Conclusions Key Aspects of Current Strategy:
Level of Effectiveness:
Major Achievements:
Major Shortcomings:
Lessons Learned:
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Step 3. Depart from a Thorough Assessment of the Sector Based on the analysis to date, the Strategy Team may wish to organize a group consultation to prepare preliminary conclusions. Initial Strategic Summary An Assessment of the Sector Where are We Now? The Sectors Business Environment:
Preferred Strategic Option
Competitors:
Main Markets, Current Performance and Capacity to Respond:
Current Approach to Export Development:
Implications for Strategy Organizations Concerned Resource Implications
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options The value chain is a systematic approach to identifying options for improving competitive advantage while creating the greatest possible value for buyers. For products, the links within the national and international components of the value chain are easily distinguishable and measurable. This is not the case for services as, rather than selling a physical product within a well-defined value chain, the service provider is selling the promise based on time, expertise and intellectual property, all of which are difficult to map on the value chain. The strategy Team is nevertheless to apply the value chain approach as the fundamental step in formulating the strategy.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options The strategy Team has already developed the business model as the first step in understanding the sectors value chain (reference Step 1). The business model identifies the key links in the sectors value chain. To facilitate decisions on the sectors focus and options, the strategy Team should now determine which of these linkages fall within the national component of the value chain, which fall within the international component of the value chain, the relative value of each link and where the source of value lies. The Team must distinguish between: Internal Value Internal value refers to those inputs into the final service offering that are added by the service provider's internal resources. These inputs may include concept development, design, testing, delivery and support. 'Internal value' links are not always immediately identifiable or measurable. External Value External value refers to those inputs into the final service offering that are supplied or added by sources outside the enterprise (whether local or foreign). Such external value, in most instances, is clearly identifiable and measurable since it generally involves a formal business transaction. Examples of such inputs include the purchase of expertise or intellectual property, equipment and supplies, and physical packaging or transport (e.g. for an off-the-shelf software package).
Enterprise managers should recognize that the buyer attaches significantly greater importance to internal value when making the purchasing decision. The sectors strategymaker should, on the other hand, focus attention on ensuring that maximum external value is sourced within the national component of the value chain.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options
Example 1: Business Model for the Export of Management Training Services via GATS Mode 2 (Consumption Abroad)
Specialized Knowledge --Expertise and Experience --Resources (People, Equipment, IPR) Establish Network of Qualified Tutors and Experts (Internal or External) Trainees Secured via InMarket Trainees Marketing and Programme Arrive in Packaging the Sales of Packager Firm's Country Firm's Training Firm's Training OR to Receive Capabilities Capabilities via Online Training Registration or Referals
Trainees Leave Firm's Country
Internal Value
Internal/ External Value Internal Value
Internal Value
Internal/ External Value
Internal Value
Internal/ External Value
External Value
Internal Value
External Value
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Example 2: Business Model for the Export of Customized Software via GATS Mode 1 (Cross-Border)
Specialized Knowledge --Buyer Expertise and Approaches InExperience Market Broker --for Supply of Resources Customized (IPR, Software Proprietary Code, People, Equipment) Buyer Agrees to Business / Technical Specifications Onsite Testing of Prototype by Broker (with possible inputs by Supplier) Onsite Deployment by Broker (with possible inputs by Supplier)
Broker Consults with Buyer to Understand Requirements, Prepares Business Specification and Forwards to Supplier
PostDeployment Review and Fine Tuning / Changes --User Acceptance
Post-Sale Support / Training / Upgrading as per Agreed Service Agreement (with possible inputs by inmarket associate)
Design Technical Specification / Post-Sale Agreement
Offsite Development of Prototype (with possible outsourcing)
Bug Fixing
'Packaging' of Software and Documentation
Internal Value
Internal/ External Value Internal Value
External Value
External Value
Internal Value (with possible External Value)
External Value (with possible Internal Value)
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options Following the clarification of the business model, and its sources of value, the strategy Team should complete the analysis by: A. B. C. D. E. Mapping the sectors current value chain Mapping alternative value chains by Mode of Supply Identifying the critical success factors Assessing value options Developing the initial version of the sectors future value chain that will enable the Team to identify those linkages in the new chain upon which strategy should focus (i.e. prioritize), and to decide what key initiatives are called for.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options A. Map the Sectors Current Value Chain Objective The objective is to obtain a comprehensive understanding of the sectors current value chain and its dynamics. Specifically: What are the links in the value chain? Which of the links contribute the most, and the least, value Where in the national component of the chain is value lost (e.g. through inefficiency, waste or leakage)? Where do unexploited opportunities to acquire value, retain greater value, add value or create value exist?
Outputs The outputs of the exercise are: A map of the current value chain for the sector, including a detailed map of the national component of the chain; An assessment of each links contribution to final value (as determined by the buyer); The identification of opportunities to acquire value, retain greater value, add value and create value.
How to Proceed Identify the main links in the international value chain by completing the Assessment Value Chain Analysis. The strategy Team should use the business model as the basis for completing this assessment and mapping the chain. An example is provided in the following pages to facilitate the analysis.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options A. Map the Sectors Current Value Chain
Example of Value Chain Analysis Customized Software Value Chain Links (Internal and External) Post-Deployment Support / Training / Upgrading Estimated ValueWeighting per Link 10% Cumulative Value External Value (Value Outsourced) 50% Internal Value (Value Retained) 50% Analysis
100% (i.e. 90% + 10%)
Value addition (Leakage) Value addition
Software Developer 10% 'Packages' the Final Software Application and Documentation Software Developer 'Fine Tunes' Application Broker Performs Post-Deployment Review Broker Deploys Application Broker Performs Onsite Testing 5%
90% (i.e. 80% + 10%)
0%
100%
80% (i.e. 70% + 5%)
0%
100%
Value addition
5%
75% (i.e. 70% + 5%)
80%
20%
Value addition (Leakage) Value addition (Leakage) Value addition (Leakage)
5% 5%
70% (i.e. 65% + 5%) 65% (i.e. 60% + 5%) 60% (i.e. 20% + 40%)
80% 100% 50%
20%
Software Developer 40% Develops and Tests Prototype of the Software Application
50%
Significant value addition, but high value leakage opportunity for value creation from new proprietary code Value addition
Software Developer 5% Designs Technical Specifications and Post-Deployment Service Agreement (for Training, Support and Product Upgrades) Broker Prepares Business Specification Service Concept / Proprietary Code Start of Value Chain 5%
20% (i.e. 15% + 5%)
0%
100%
15% (i.e. 10% + 5%)
100%
Value addition
10%
10%
0%
100%
Value
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Step 4. A. Map the Sectors Current Value Chain
Assessment - Value Chain Analysis Value Chain Links (Internal and External) Estimated ValueWeighting per Link Cumulative Value External Internal Level of Value Value Influence (Value (Value in the Outsourced) Retained) Value Chain (H/M/L) Analysis Type of Trade Support Service Involved
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Start of Value Chain
100%
How to Complete this Assessment: Enter the links in the value chain, beginning with the final user or buyer, and moving backwards to the original intellectual property. Assign an approximate % value created by each link in order to show the relative importance between links. The 'Cumulative Value' (at the final user or buyer link) must therefore reach 100%. Strategy Team members should use their best judgement (in the absence of hard data) to estimate the percentage contribution of each link to the final value (i.e. the 100%). Precise figures are not necessary. What is necessary, however, is to reach consensus on where (i.e. which links) the most value is created.
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Current Value Chain for the Export of Customized Software via GATS Mode 1 (Cross-Border)
Value Equipment
Accreditation
Main Market # 1 Development of Software / Bug Fixing 'Packaging' of Software and Documentation Carrier (Internet/ Courier) Broker (provides interface with buyer throughout the process)
Research & Development, and IPR Proprietary Code
Design of Technical Specifications
Initial Contact with Buyer Support Upgrades Facilitates Onsite Deployment
Develops Business Specification Provides Onsite Training
Facilitates Onsite Testing Provides Onsite Support
Buyer
Specialized Skills and Expertise
Training
National Component of the Value Chain
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options B. Map Alternative Value Chains by Mode of Supply The competitiveness and efficiency of service sectors is influenced by the Mode of Supply through which the service is delivered. Changing to, or adding, new modes of supply will provide supply alternatives for the sector to achieve the goals of value acquisition, value retention, value addition and value creation. Objective The objectives are: to identify the opportunities to improve competitiveness and develop markets through utilizing alternative modes of supply to deliver the service, to determine the strategic implications arising from the adjustment in the sectors value chain.
Outputs The outputs of the exercise are: identification of opportunities for acquiring value, retaining greater value, adding value and creating value through adjustment of the sectors mode of supply; identification of implications for the sector and the trade support network if alternative Modes of Supply are utilized.
How to Proceed Identify how the main links in the value chain are affected when applying alternative modes of supply to the service sector. An example is provided in the following pages to facilitate analysis of alternative modes of supply.
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Current Value Chain for the Export of Management Training Services via GATS Mode 2 (Consumption Abroad)
Value
Specialized Skills and Expertise Equipment Accreditation
Intellectual Property
Main Market # 1
Development of Service Concept: Management Training Design of Curriculum and Training Materials Delivery of Training Carrier (Temporary Movement of Trainees)
Research and Development
In-Market Programme Packager
Trainee
Ancillary Services / Facilities (e.g. Transport, Accommodation, Meals, Entertainment, Bureau Services) Qualified Tutors and In-House Experts
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Supply Alternative 1: Example of Generic Value Chain for the Export of Management Training Services via GATS Mode 1 (Cross-Border)
Value
Specialized Skills and Expertise Intellectual Property Accreditation
Equipment and Software Platform
Main Market # 1
Development of Service Concept: Management Training Research and Development Delivery of Training Online
Design of Curriculum and Online Training Materials
Carrier (Internet)
Trainee
IT Technical Support
Online Tutor Support
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Supply Alternative 2: Example of Generic Value Chain for the Export of Management Training Services via GATS Mode 3 (Commercial Presence)
Value
Specialized Skills and Expertise Accreditation
Main Market # 1
Development of Service Concept: Management Training Design of Curriculum and Training Materials Headquarters Support / Innovation
Research and Development (Intellectual Property)
In-Market Office Adaptation of (Extension of the Delivery of Curriculum National Training and Training Component of the (face to face) Materials Value Chain)
Trainee
In-House Experts
Equipment
Accreditation
Qualified In-Market Tutors
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Supply Alternative 3: Example of Generic Value Chain for Export of Management Training Services via GATS Mode 4 (Temporary Movement)
Value
Main Market # 1
Development of Service Concept: Management Training Design of Curriculum and Training Materials Headquarters Operations Carrier (Temporary Movement of Trainers)
In-Market Intermediary / Associate / Promoter
Trainee
Qualified Tutors and In-House Experts
Ancillary Services / Facilities (e.g. (Extension of the training venue, National bureau services) Component of the Value Chain)
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options C. Assess Ability to Meet Critical Success Factors in Specific Target Markets Objectives The objectives are to: identify the critical success factors within the sector as determined by market conditions and international buyer preferences, determine the extent to which the sector complies with these critical success factors, confirm if action is required within the strategy.
Outputs The outputs will be: an assessment of the compliance of the sector (i.e. the national component of the value chain) to each critical success factor, the identification of those success factors upon which strategy should focus.
How to Proceed i) For each geographic target market identified earlier (Step 3), the Team should assess the sectors competitive position with regard to the following market conditions: market access (for the service itself and for temporary movement of the firms personnel), technical barriers to trade, (e.g. quality assurance requirements, accreditation issues, recognition of professional credentials and credibility) other market conditions (e.g. cultural proximity and consumer preferences).
Assess which market conditions represent critical success factors and which may therefore need to be addressed under the sector strategy. ii) Using the Assessment - Ability to Meet Buyer Preferences, establish what the key buyer preferences are in each target market: list buyers overall preferences, indicate the relative importance of each preference, indicate how well the sector (i.e. the national component of the value chain) responds to each preference, indicate how well international competitors respond to each preference, identify which preferences represent critical success factors.
iii). From the analyses of market conditions and buyer preferences: confirm the list of critical success factors (general and market specific) that must be addressed within the sectors future export strategy (to sustain or increase competitiveness and to ensure greater value retention, value addition and value creation), determine the initiatives that should be taken at appropriate links in the chain.
Record the results in the Assessment matrix - Critical Success Factors.
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The concerned team members should complete the following matrix. The designated RACI 'A' team member should then summarize the findings in the matrix 'Assessment Critical Success Factors'. Assessment Target Market Conditions
Action Required? (Recommendation) CSF Action Required? (Recommendation) (Yes/ No) Other Market Conditions (e.g. consumer preferences/ biases) CSF (Yes/ No) Action Required? (Recommendation)
Geographic Market Technical Barriers to Trade (Competitive Advantage, Disadvantage, Neutral)
Mode of Delivery (Mode 1/2/3/4)
Market Access
CSF
(Competitive Advantage, Disadvantage, Neutral)
(Yes/ No)
Competitive Position (Advantage, Disadvantage, Neutral)
1.
2.
3.
4.
5.
6.
7.
8.
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Ability to Meet Buyer Preferences - Example (Customized Software) Target Market: (Germany)
1 Buyer Preference 2 Relative Importance (I) (%) 5% 10% 5% 15% 3 Sector Performance Rating (R) (1-10) National 8 6 7 9 Competitor 7 9 8 8 4 Competitiveness (IxR) National .40 .60 .35 1.35 Competitor .35 .90 .40 1.20
Price (Exchange Risk) Track-Record of Supplier Timeliness (ability to meet deadlines) Quality (in design, coding and efficiency of the application) Quality of Relationship with Supplier Quality of Documentation Quality of Training Quality of PostDeployment Technical Support Possibility of Future Upgrades Total Competitiveness Index (sum)
15% 5% 10% 20% 15% 100%
8 7 8 7 6
9 8 7 9 8
1.20 .35 .80 1.40 .90
1.35 .40 .70 1.80 1.20
7.35
8.30
In this example, we note that the national suppliers have a competitiveness index score of 7.35, compared to 8.10, for the highest performing competitor. Although national suppliers score higher in areas such as overall Quality (in design, coding and efficiency) of the application and Price, the analysis shows clearly that the sector rates poorly vis--vis competitors on the key buyer preferences with respect to Quality of Post-Deployment Technical Support, the Possibility of Future Upgrades and the Quality of Relationship with the Supplier (i.e. those with high relative importance). Meeting these key buyer preferences is fundamental to the ability of the sector to compete in this international market, and these therefore represent critical success factors.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by the relevant members of the Strategy Team for each target market and the results to be incorporated into the Assessment Critical Success Factors by the designated RACI 'A' team member. Assessment - Ability to Meet Buyer Preferences Country/Market: (Complete the matrix for each target market) Buyer Relative Sector Performance Competitiveness Preference Importance Rating (1 lowest, 10 (%) highest) (I) (R) (I x R) National A. B. C. D. E. F. G. Total 100% Competitors National Competitors
Critical Success Factor (Yes/No)
The 'Assessment - Ability to Meet Buyer Preferences' above is a decision support tool that identifies a sectors ability to respond to specific buyer preferences compared to that of competitors. This matrix can be completed either qualitatively, using a consensus approach, or by using actual quantitative data. How to Complete this Matrix Select the target country/market. List the buyer preferences in column 1. In column 2, using percentages, indicate the relative importance of each preference to the buyer. In column 3, indicate on a scale of 1 to 10, how well the sector rates on each buyer preference. Do the same for the three major competitors. In column 4, Competitiveness, multiply the rating (R) (in column 3) by the percentage Relative Importance (column 2) to obtain a competitiveness score for the sector and for major competitors (I x R). In column 5, indicate whether the buyer preference is a critical success factor. Record the results in the Assessment matrix - Critical Success Factors.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by the designated RACI 'A' team member. Critical Success Factors Example (Customized Software)
Critical Success Factors
Sector's Position vis--vis Competitors

H/M/L M
Root Causes of the Gap
Links in Value Chain were CSF is Met
Implications for Sector Strategy
Quality of Human Resources (BP)
Insufficient attention given to promoting the recognition of locally acquired credentials of personnel.
Software Development Deployment Post-Deployment Support
Need to promote and facilitate acquisition of international accreditation for technical personnel in the sector.
Recognition of Professional Credentials (MC)
Absence of bilateral agreement to recognize professional credentials and affiliations.
Deployment Post-Deployment Support
Negotiation of agreement on mutual recognition of professional credentials and promotion of national image. Need to counteract weakness in this area by boosting the international profile of the sector, highlight success stories, build credibility, increase international media exposure etc. Strategy should focus on the provision of Border Out services to help sector to diversify its client base. Need for enhancing skills in dealing with international clients; project management at enterprise level.
Customer References (BP)
Lack of an international track record and absence of established portfolio of foreign clients
Buyer
Ability to Meet Deadlines (BP)
Firms accustomed to dealing in local market where less stringent delivery and deadline criteria may apply. Possible cultural issues.
Software Development Deployment Buyer
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by the designated RACI 'A' team member. Assessment - Critical Success Factors
Critical Success Factor (CSF) Target Market Specific or General Sector's Position vis--vis Competitors (Advantageous, Disadvantageous, Neutral) Root Cause Relevant Link(s) of the Gap in the Value (Basis for Chain Advantage) Implications for Sector Strategy / Action Required
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Note: In column 2, indicate whether the CSF is a factor that is relevant to all markets or if it is limited to a specific market or markets. In the latter case, specify which markets.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options D: Assess Value Options Objective The objective is to identify options for reinforcing, adjusting or extending the national component of the sector's value chain to maximize value acquisition, retention, addition and creation. Output The intended output is confirmation of possibilities for: acquiring value by improving efficiency within the national component of the value chain (and thereby enhancing the sectors competitiveness), retaining greater value by reducing leakage from the national component of the value chain, adding value by developing new product lines and/or extending the national component of the value chain, creating value by increasing production of existing or new product lines or by entering the value chains of related sectors, distributing value within the economy by increasing the sectors direct contribution to such national development goals as employment generation, poverty reduction, rural and regional development, gender equality and sustainability of the environment.
How to Proceed The Strategy Team should review the sectors current value chain in the context of each of the five future scenarios indicated above. Based on the analysis of these options, the Team should decide, on a preliminary basis, which option, or combination of options, should ideally form the basis of the sectors future value chain and export development strategy.
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options D: Assess Value Options How to Proceed (continued) Value Option I: Acquire value by improving competitiveness Identify: dysfunctions within the existing national component of the value chain, and how they can be overcome, links, and linkages (internal and external), within the existing value chain where performance could be improved, and how, synergies to be exploited through linkages with other sectors' (or sub-sectors') value chains, and how, whether adding or changing modes of supply, can improve the sectors efficiency, thereby enhancing its competitiveness, the implications for the enterprises in the sector (i.e. what they themselves can do to improve efficiency), the implications for trade support services and their providers (i.e. which support services need to be provided, or improved, to increase the sectors efficiency), and how.
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Value Option I: Acquire Value by Improving Efficiency Management Training Services
Value
Main Market # 1
Development of Service Concept: Management Training Delivery of Training Carrier (Temporary Movement of Trainees)
Centralized Research and Development
Centralized Design of Curriculum and Training Materials
Trainee
Efficiency through clustering/ sharing/pooling facilities and centralizing functions Pool of Qualified Tutors and Experts Ancillary Services / Facilities (e.g. Housing, Bureau Services)
Centralized Administration and Promotion
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Value Option I Acquire Value by Improving Efficiency Assessment Correct dysfunctions within the existing national component of the value chain:
Improve linkages within the existing value chain that could be improved:
Maximize synergies through linkages with other sectors' (or sub-sectors') value chains:
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options D: Assess Value Options How to Proceed (continued) Value Option II: Retain greater value by reducing leakage in the national component of the chain Determine: the prospects that may exist for local enterprises to secure additional internal value, or 'external' value from local sources rather than from imported sources, the possibilities for maximizing the involvement of local personnel (and particularly managerial personnel) in the operations of foreign-owned firms in the sector, the scope for encouraging foreign-owned firms to re-invest profits in the national economy, rather than repatriating them, whether a change in Mode of Supply can minimize leakages, what are the implications for the enterprises in the sector (i.e. what they themselves can do to retain higher value), what are the implications for trade support services and their providers (i.e. which support services need to be provided, or improved, to minimize leakages).
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Value Option II: Retain Greater Value through Minimizing Leakages Management Training Services
Value
Main Market # 1
Development of Service Concept: Management Training Design of Curriculum and Training Materials Delivery of Training Carrier (Temporary Movement of Trainees)
Trainee
Maximizing local intellectual property and competence Qualified Tutors and In-House Experts
Ancillary Services / Facilities (e.g. Housing, Bureau Services)
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Value Option II Retain Greater Value by Reducing Leakage in the National Component of the Chain Assessment Prospects for local enterprises to avail of local sources of value (i.e. inputs and services):
Possibilities for maximizing the involvement of local personnel in the operations of foreign-owned firms:
Scope for foreign-owned firms to reinvest profits in the national economy:
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options D: Assess Value Options How to Proceed (continued) Value Option III. Add value by reinforcing and extending the national component of the value chain Confirm if: the sector can add value by promoting a distinct attribute that differentiates the product and enhances its value, the sector can capitalize on certain buyer preferences (e.g. certification) that enhance the products value, opportunities exist to stimulate the creation of new or spin-off services, scope exists for extending the national value chain for existing services, the current Mode of Supply, or a different mode, provides opportunities for adding value to the service, there are specific implications for the enterprises in the sector (i.e. what they themselves can do to add greater value), there are implications for trade support services and their providers (i.e. what key support services need to be improved to effective promote value addition).
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Value Option III: Add Value by Reinforcing and Extending the National Component of the Value Chain
Value
Specialized Skills and Expertise Accreditation
Equipment
Main Market # 1
Development of Service Concept: Management Training Delivery of Training Carrier (Temporary Movement of Trainees)
Trainee
Ancillary Services / Facilities (e.g. Transport, Accommodation, Meals, Entertainment, Bureau Services) Qualified Tutors and In-House Experts
Post-Training Online Reference Centre and Tutor Support
Adding value through providing an enhanced and ongoing service
Carrier (Internet)
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member.
Value Option III Add Value by Reinforcing or Extending the National Component of the Value Chain Assessment Scope for promoting a distinct attribute that differentiates the service:
Scope for capitalizing on certain buyer preferences (e.g. certification):
Scope for extending the national value chain for existing service lines:
Scope for developing new, higher-value added service lines:
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options D: Assess Value Options How to Proceed (continued) Value Option IV: Create value by expanding production and/or entering new value chains within the sector, or related sectors Determine if: market and local conditions are consistent with expanding output and capacity, the sector can expand into value chains in associated sectors, and if so, how, the Mode of Supply, or a different mode, provides opportunities for creating value, there are particular implications for enterprises in the sector (i.e. what they themselves can do to enter new value chains), there are implications for trade support services and their providers (i.e. what key support services need to be improved to be able to enter new value chains).
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Value Option IV: Create Value through Expanding Production and/or Entering New Value Chains
Value Accreditation Main Market # 1 (GATS Mode 2: Consumption Abroad)
Equipment
Carrier (Temporary Movement of Trainees) In-Market Intermediary / Associate / Promoter Delivery of Training Carrier (Internet)
Trainee
Main Market # 2 (GATS Mode 1: Cross-Border)
Trainee
Ancillary Services / Facilities (e.g. Transport, Accommodation, Meals, Entertainment, Bureau Services) Franchise Partner
Qualified Tutors and Real-Time Online Support
Main Market # 2 (GATS Mode 3: Commercial Presence)
Adaptation of Curriculum and Training Materials
Qualified In-Market Tutors
Trainee
Headquarters Support / Innovation
Value created through coalitions of providers developing and delivering new training offerings
Accreditation
Equipment
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Value Option IV Create Value by Expanding Production and/or Entering New Value Chains Assessment Scope for expanding output and capacity:
Scope for expanding into value chains in associated sectors:
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options D: Assess Value Options How to Proceed (continued) Value Option V: Distribute Value by Maximizing the Developmental Impact of the Sectors Value Chain Determine: the links in the national component of the value chain that are most important from the perspective of the sectors overall contribution to economic and social development (e.g. poverty alleviation, employment generation, geographic diversification of productive capacity and gender equality), if the value options assessed previously are consistent with national development objectives, what are the implications for enterprises in the sector, what are the implications are for trade support services and the trade support network overall.
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Value Option V: Distribute Value by Maximizing the Sectors Contribution to Development:
Value
Main Market # 1
Development of Service Concept: Management Training Design of Curriculum and Training Materials Delivery of Training Carrier (Temporary Movement of Trainees) Training Region 3
Trainee
Training Region 1
Training Region 2
Raising Local Competence and Employability by Adapting Materials and Delivery to Local Target Audiences Qualified Tutors and In-House Experts
Ancillary Services / Facilities (e.g. Transport, Accommodation, Meals, Entertainment, Bureau Services)
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Value Option V Distribute Value by Maximizing the Sectors Contribution to Development Assessment Links that are most important to developmental considerations:
Relevance of Value Options I, II, III and IV to developmental considerations:
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Step 4. Apply Value Chain Analysis, Identify Critical Success Factors and Assess Value Options E. Develop the Preliminary Version of the Sectors Future Value Chain Based on: its assessment of the sectors competitiveness and performance (Step 3), its review of the sectors current value chain and prevailing and projected market conditions and buyer preferences, its prospects of supply alternatives for strengthening the competitiveness of the national component of the value chain, and its analysis of value options for reinforcing and adjusting the national component of the chain,
the Strategy Team should develop a preliminary outline of the future national component of the value chain.
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Step 5. Confirm Client Demands and Needs The enterprises in the sector are the ultimate clients of the export strategy. To ensure that the strategy has full credibility within, and has the support of, the business community, it must respond to the demands of the enterprises in the sector. At the same time, the strategy must address clients' needs. These may differ substantially from their demands for support as, in many instances, the individual enterprise manager does not recognize his, or his enterprises, needs (e.g. the need for management training). Moreover, the envisaged future value chain, developed in preliminary fashion by the Strategy Team (Step 4), may create new needs for support within the sectors business community. Complicating the situation is the fact that different enterprises in the same sector are likely to have different demands and needs, as a consequence of their differing priorities, range of experience and level of prior success in the international marketplace. The strategys clients fall into three categories: Current participants in the national component of the value chain The principal demand from current exporters is most likely to be for export finance, trade information and, of course, market access. Trade facilitation (i.e. the streamlining of regulations and procedures) and reduction in the costs of doing business are also likely to be high on their agenda. Other current participants in the value chain are most likely to prioritize access to finance and border issues. Potential participants in the national component of the value chain Enterprises that have the capacity to export but are not exporting fall into this category. They require encouragement and support before investing in an export effort. They are likely to require a mix of border-in, border and border-out assistance. Aspiring participants in the national component of the value chain This client category wishes to join the export effort, but lacks the capacity to do so. Enterprises in this category tend to be entrepreneurial and therefore should not be overlooked. They are likely to require a broad package of border-in support, at least initially.
As the above suggests, it is essential that the sector strategy addresses not just the demands and current and future needs of exporters. The requirements of other players in the sectors value chain upon whom exporters rely (such as intermediate producers, local suppliers of production inputs, and business services providers) must also be addressed. The strategy should in other words, take into account the activities, demands and needs of all players in the national component of the sectors current and future value chains.
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Step 5. Confirm Client Demands and Needs Within the context of the sectors current and possibly new (i.e. future) value chain, relevant members of the Strategy Team should complete the following chart and the RACI 'A' team member should then summarize the findings. Issues Enterprise Demands and Needs Key Demands: Current participants in the value chain
Potential participants in the value chain
Aspiring participants in the value chain
Key Needs (Current and Future): Current participants in the value chain
Potential participants in the value chain
Aspiring participants in the value chain
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Step 6. Review Essential Trade Support Services The availability and quality of trade support services is likely to be a major determinant of the sectors competitiveness. It is essential that the Strategy Team determines which export support services are essential and at which links of the value chain. Trade support services most often required by the business community include: Business Competency Development Services Trade Information Services Trade Finance Export Quality Management Services
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Step 6. Review Essential Trade Support Services Business Competency Development Services The view of the majority of export managers is that the constraints to steady improvement in export performance are largely external to the enterprise. This assessment is often wrong. The constraints to export are also internal to the firm and often relate to limitations in managements knowledge and skill. The fact remains that in developing and transition economies, the business sector as a whole considers an investment in management training to be money poorly spent. As a consequence, there is, at best, only a small market for competency-development services. Most developing countries lack the capability to deliver competency development services of the type that will have a direct impact on an enterprises competitiveness. Training programmes currently on offer tend to be more general than 'applied', more conceptual than practical, and more information-based than competency-based. They lack sector specificity and generally do not reflect the realities that confront the exporter. The sector export strategy-maker is therefore confronted by two challenges: to change the mindset of the strategy's clients and create demand within the sector for competency development services, to strengthen the trade support networks capability to deliver relevant training and competency development services.
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Step 6. Review Essential Trade Support Services To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Issues Business Competency Development Services Principal business competency needs in the sector:
Creating demand for competency development services within the sector:
Capacity to deliver competency development services of relevance to the sector: Current Value Chain
Envisaged Future Value Chain
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Step 6. Review Essential Trade Support Services Trade Information Services Despite the limitations in the availability of statistics on trade in services, information is available on commercial opportunities and ways of doing business. Often, existing clients provide an excellent source of business intelligence. It is essential that the trade support network captures and disseminates this information.
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Step 6. Review Essential Trade Support Services To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Assessment Trade Information Services Client Requirements (Current and Envisaged Future Value Chains): Enterprises:
Sector Associations and Advocacy Groups
Public and Private Sector Business Service Providers
Supply Capability: Public Sector Information Providers
Private Sector Information Providers
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Step 6. Review Essential Trade Support Services Trade Finance Access to finance at competitive rates is usually a top priority. For service enterprises, trade finance is even more of a challenge than for enterprises engaged in the production of goods, since banks are hesitant to take receivables for intangibles into account when granting lines of credit. Strategy-makers must, therefore, ensure that adequate attention is given to finance and finance-related issues at each 'gear' of export strategy: the border-in gear (availability and affordability of investment and operating capital), the border gear (acceptance of letters of credit, and facilitation of export transactions and payment), the border-out gear (creation of matching grant programmes, and export credit and guarantee schemes).
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Step 6. Review Essential Trade Support Services To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Issues Trade Finance
1. Border-In Finance Issues:
2. Border Finance Issues:
3. Border-Out Finance Issues:
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Step 6. Review Essential Trade Support Services Export Quality Management Services Meeting technical and quality requirements in the international marketplace is a tall order. But it is one that the export strategy for the sector must address. For service sectors, quality assurance involves service certification. Service certification: installs trusted and focused codes of practice for the sector, demonstrates transparency in the sectors operations, improves the sectors performance and export prospects.
Service certification involves four principal steps: Standardization The key to standardization involves a number of steps: 1. Identification of key client expectations, best practices and challenges. 2. Drafting of the standard together with the private sector representatives. 3. Endorsement of the standard by both the public and private sectors. 4. Publishing the standard. Implementation Widely communicating the standard within the sector. Gaining the commitment of enterprises within the sector to implement the standard. Encouraging self-assessment among the sectors enterprises. Audit and Certificate Award Audits by qualified service auditor. Certification decision. Continuous Improvement Regular benchmarking and improvement of the standard based on best practice.
Exporters in the sector must ensure that their services meet the specifications that have been established in the main markets. The strategy must reinforce and facilitate service certification.
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Step 6. Review Essential Trade Support Services To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Assessment Export Quality Management Services Certification Needs within the Sector:
Current Response:
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Step 6. Review Essential Trade Support Services Other Trade Support Services Apart from the services most commonly needed by enterprises, there may be other trade support services that are essential for the sector's export performance and competitiveness. These may include: Research, Development and Innovation Networking Services.
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Step 6. Review Essential Trade Support Services To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Issues Other Trade Support Services
Other Support Service (1):
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Step 7. Assess Available Resources within the Public and Private Sectors The design of sector-level export strategy must be consistent with the resources available to implement it. Otherwise the exercise is not grounded in reality and strategy becomes nothing more than a wish list. In most instances, funding is the greatest resource constraint facing export strategy-makers and the various institutions in the trade support network, public or private. The challenges confronting the Strategy Team are, therefore, to: assess correctly the resources available for export development, design an export strategy that is consistent with available resources, allocate these resources in a suitable manner within the trade support network, ensure that the strategy incorporates ways of generating additional resources.
Categories of Resources Finance: Defined in terms of funds available within the private and public sectors to implement strategic action leading to the improvement of the sectors competitiveness and export capacity/performance. Financial resources include the budgets of individual institutions in the trade support network. It is also important for the strategy to accurately estimate the financial resources within the private sector that are available for investment in production and product development. Institutions: Defined in terms of the assets of organizations in the sectors trade support network. Such assets include databases and information systems, contact networks and physical facilities such as training rooms and reference centres, and reputation and goodwill (within the business community). Programmes: Defined in terms of the relevance, efficiency and impact of existing programmes offered by the trade support network that are designed specifically to enhance the sectors competitiveness and export capacity/ performance (e.g. certification schemes, matching grant schemes, incentive programmes, trade fairs and missions, and awareness and 'export culture' development programmes). People: Defined in terms of the number and competence/experience of individuals within the trade support network. The assessment of the sectors resources, by-and-large, involves estimating the resources of each organization in the sector's trade support network.
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Step 7. Assess Available Resources within the Public and Private Sectors The strategy support network ensures that the business environment reinforces the international competitiveness of the export sector as a whole. In other words, it ensures that the business environment is 'pro-export'. The services delivery network extends services to the enterprise to enhance its competitiveness. The services delivery network normally includes specialized public and private sector organizations. To be effective, trade support must: develop the overall competitiveness of the enterprise, rather than seek to increase its immediate export sales, develop capabilities, both technical and managerial, rather than simply marketing competency, promote technology acquisition, investment and linkages within the national component of the value chain, in addition to making it easier to get the goods out of the country.
One of the key objectives of the strategy must be to build the capacities of the overall trade support network in terms of competence, delivery and coordination.
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Step 7. Assess Available Resources within the Public and Private Sectors The Sector's Trade Support Network

Ministry of Labour
Service Sector Associations Research and Technology Organizations Banks / Financial Services Organizations Clustering Organizations Technology Parks & Business Innovation Centres Sm all Industry Developm ent Organization Regional Developm ent Organizations NGOs Border-In
Standards Organization Vocational and Training Centers Universities Certification Bodies

Developm ent
Insurers
Wom en's Associations Border-Out Micro Finance Providers Trade Prom otion Organizations Trade Inform ation Organizations Exporters' Associations
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Investm ent Prom otion Agency

Step 7. Assess Available Resources within the Public and Private Sectors To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Issues Resources 1. Finance (including Budgets): Public Sector Key Organizations: Private Sector: 2. Institutional Assets: Public Sector Key Organizations: Private Sector: 3. Programmes: Public Sector Key Organizations: Private Sector: 4. People: Public Sector Key Organizations: Private Sector: 5. Impact on the Relevance of the Envisaged Future Value Chain
Implications for Strategy Objectives On-Going/Required Initiatives Organizations Concerned
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Step 7. Assess Available Resources within the Public and Private Sectors Following its assessment of client needs (Step 6) and resource availability, the Strategy Team should re-visit the preliminary version of the sectors future value chain and adjust it as the magnitude of needs and limitations on resources dictate.
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Step 7. Assess Available Resources within the Public and Private Sectors It is inevitable that resource availability will fall short of resource requirements. In this respect one of the challenges confronting the team is to mobilize additional resources that the public sector or donor community may be prepared to contribute. Ideally, proposals for incremental resources would be based on self-contained initiatives focusing on specific objectives and outputs.
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Step 7. Assess Available Resources within the Public and Private Sectors To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Resource Mobilization
Sources of Incremental Resources:
Suggested Approach to Generate Interest:
Possible Areas of Focus:
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Step 8. Prepare a Sector SWOT Analysis Based on the 'Where Are We Now?' analysis, selected members of the Strategy Team should prepare a SWOT analysis of the sector. The analysis should be finalized by the designated RACI 'A' team member. Strengths Weaknesses
Opportunities
Threats
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Part D Focus
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Focus
Steps 9 and 10 of the Strategy Design and Management Process Strategic Focus Where Do We Want to Be? 9 10 Create a Vision Specify Priorities
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Focus
Step 9. Create a Vision Creating a vision for the sector is the principal means of unifying, and thereby motivating, all stakeholders in the sector. The vision also provides the foundation for setting priorities. The vision illustrates where the sector ought to be at a future, but not too distant, point in time, ideally three to five years. The vision should, therefore, be fully consistent with a description of the sectors future value chain. The vision should be a short statement that provides an inspirational view of the sectors future position. It should address the concerns of all principal stakeholder groups in the sector. It should be credible but challenging. It should be non-quantitative (i.e. not expressing targets in terms of percentages or specific numbers). The Vision An Example "An entrepreneurial and vibrant sector maximizing commercial opportunity while contributing directly and increasingly to the national goals of employment generation, skill development and the overall well-being and image of the country."
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Focus
Step 9. Create a Vision To be completed by all members of the Strategy Team and finalized by the designated RACI 'A' team member. The Vision
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Focus
Step 10. Specify Priorities The issues that the strategy should address will in most instances exceed the resources available. Priorities must therefore be established. Specifying priorities is the most challenging step in the strategy design process. It requires that the Strategy Team has a clear overview of: the strategic options that have emerged during the assessment of the sector (particularly during the value chain analysis and the review of relevant support services), and the availability of resources.
Priorities should be defined taking into account: The Development Perspective This perspective addresses the following questions: How will politicians, government decision-makers, civil society and the donor community perceive the vision from the standpoint of its relevance to social and economic development and its contribution to the national good? What are the implications for the strategys design and management? The Competitiveness Perspective This perspective addresses the following questions: How will sector associations and advocacy groups, potential investors (domestic and foreign) and prospective buyers/importers perceive the vision in terms of reinforcing the sectors capacity, improving the business environment, enhancing participation in the international value chain and increasing the sectors opportunities for value retention, value addition and value creation? What are the implications for the strategys design and management? The Client Perspective This perspective addresses the following questions: How will the sectors current, potential and aspiring exporters and other key enterprises and players in the sectors value chain perceive the vision in terms of furthering their commercial objectives and satisfying their needs for support? What are the implications for the strategys design and management? The Institutional Perspective This perspective addresses the following questions: How will each organization within the trade support network, public and private, perceive the vision in terms of consolidating/reinforcing its position, facilitating its work and enhancing its capacities and competencies? What are the implications for strategy design and management?
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Focus
Step 10. Specify Priorities Priorities and Strategic Considerations: It is recommended that the priorities be grouped under the relevant Strategic Considerations specified in the strategys design and management framework. Specifically: The Development Perspective: Strategic Consideration #1: Development Employment generation Poverty alleviation Development of disadvantaged and backward regions Gender equality Environmental sustainability Other Competitiveness Perspective: Strategic Consideration #2: Border-In Issues Capacity Development Capacity Diversification Human Capital Development Strategic Consideration #3: Border Issues Infrastructure Trade Facilitation Cost of Doing Business Strategic Consideration #4: Border-Out Issues Market Access In-Market Support National Promotion Client Perspective: Strategic Consideration #5: Client Priorities Current Participants in the Value Chain Potential Participants in the Value Chain Aspiring Participants in the Value Chain Strategic Consideration #6: Business Competency Development Strategic Consideration #7: Trade Information Strategic Consideration #8 : Trade Finance Strategic Consideration #9: Quality Management Strategic Consideration #10: Other Support Services Institutional Perspective: Strategic Consideration #11: Strategy Support Network Coordination (consistency of policy, maximization of transparency, minimization of bureaucracy, reinforcement public-private sector partnership, strengthened lines of communication) Capacity and Competency Development Strategic Consideration #12: Services Delivery Network Coordination (emphasis on specialization and referral, minimization of duplication of effort, optimisation of resources, facilitation of access) Capacity and Competency Development
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Focus
Step 10. Specify Priorities To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Long List of Priorities 1. Priorities - Development Perspective:
2.
Priorities - Competitiveness Perspective:
3.
Priorities - Client Perspective:
4.
Priorities - Institutional Perspective:
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Focus
Step 10. Specify Priorities Once priorities have been established within each Stakeholder Perspective, it is essential that the Team determine priorities among Perspectives. This is achieved by weighting each Perspective. The list of priorities can then be refined, with the top priorities of those Perspectives assigned the greatest weight taking precedence. All Team members should complete the following chart which should then be finalized by the designed RACI 'A' team member. Weighting of Importance of Stakeholders Perspectives Development Perspective Competitiveness Perspective Client Perspective Institutional Perspective % % % %
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Focus
Step 10. Specify Priorities Based on the weighting of Perspectives, the Team should finalize the strategy's priorities, keeping in mind the level of resources that are available. Final Priorities 1. Priorities - Development Perspective:
2.
Priorities - Competitive Perspective:
3.
Priorities - Client Perspective:
4.
Priorities - Institutional Perspective:
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PART E FORMULATION AND MANAGEMENT
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Formulation and Management

Steps 11 to 13 of the Sector Strategy Design and Management Process Establish the Framework for Managing and Monitoring the Strategy Confirm Strategic Considerations Determine Objectives Specify Performance Measures Set Targets Specify Initiatives Identify Responsible Organizations Allocate Resources Set the Implementation Schedule
11 Formulation and Management How Do We Get There?
12
Formulate a Plan of Action
13
Maintain the Public-Private Partnership for Strategy Implementation
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Step 11. Establish the Framework for Managing and Monitoring the Strategy Once agreement has been reached on the strategys priorities, the Team should complete the construction of the strategys design and management framework. This design and management framework brings together all the Strategic Considerations within the context of the four Stakeholder Perspectives. For each Strategic Consideration that has been assigned a priority, the Team should: establish Objectives, specify Measures by which strategy-managers can monitor progress, set Targets to facilitate monitoring, and list the Initiatives to be mounted to achieve each Objective, ensuring, of course, that the number and scale of Initiatives are fully consistent with resource availabilities (financing, institutional assets, existing programmes and people).
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Step 11. Establish the Framework for Managing and Monitoring the Strategy The Integrated Strategy Design and Management Framework
The Development Perspective
Weighting of Perspectives Strategic Consideration #1 - Objectives - Performance and Impact Measures - Targets - Initiatives
To achieve the vision, how must politicians, government decision-makers, civil society and the donor community perceive its relevance from the standpoints of social and economic development and its contribution to the national good? What are the implications for strategy design and management?
Strategic Consideration #1: The Development Gear of Strategy
The Competitiveness Perspective

Strategic Consideration #2-4 - Objectives - Performance and Impact Measures - Targets - Initiatives Priorities
To achieve the vision, how must sector associations and advocacy groups, potential investors (domestic and foreign) and prospective buyers/importers perceive it in terms of reinforcing the sectors capacity, improving the business environment, enhancing participation in the international value chain and increasing the sectors opportunities for value retention, value addition and value creation? What are the implications for strategy design and management? #3: The Border Gear of Strategy #4: The Border-Out Gear of Strategy
#2: The Border-In Gear of Strategy
The Vision The Client Perspective

#5: Client Priorities
To achieve the vision, how must the sectors current, potential and aspiring exporters, and other key enterprises and players in the sectors value chain perceive its relevance in terms of furthering their commercial objectives and satisfying their needs for support? What are the implications for strategy design and management? #8: Trade Finance #9: Quality Management #10: Other Support
#6: Business Competency
#7: Trade Information
The Institutional Perspective
To achieve the vision, how must each organization w ithin the sectors trade support netw ork, public and private, perceive the vision's relevance in terms of consolidating/reinforcing its position, facilitating its w ork and enhancing its capacities and competencies? What are the implications for strategy design and management? #12: The Services Delivery Netw ork
Resources
#11: The Strategy Support Netw ork
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Step 11. Establish the Framework for Managing and Monitoring the Strategy The Strategy Management and Monitoring Framework for the Sector
An Example The Client Perspective:
Strategic Consideration #5: Client Priorities

Targets For current exporters focus on: 10% increase in repeat visits to the National Export and Investment Promotion Agency by current exporters 20% increase in market development visits by exporters Initiatives Upgrading of trade and advisory support services initiative (Concerned Agencies: All members of services delivery network) Intensified collaboration between key trade support organizations Introduction of Opportunity Partnership programme whereby commercial office abroad provides comprehensive pre-visit, during, and post-visit support to individual exporters on contract basis (Agencies Concerned: Sector Association, National Export and Investment Promotion Agency, posts abroad and individual enterprises) Extension of activities of National Productivity and Competitiveness Council to include the service sector (Concerned Agency: National Productivity and Competitiveness Council)
Objectives Focus on Client Priorities To strengthen performance of current exporters and to engage potential and aspiring exporters in exploring international market opportunities
Measures Actual performance of targeted client categories, measured in terms of export growth and increments in value retention and, value addition and value creation for current exporters export activities launched, markets entered and export receipts for potential (or formerly potential) exporters investment and business activities of aspiring exporters efficiency of non-exporting participants in the sectors value chain entry into the sectors value chain by potential or aspiring, non-exporting participants 15 exporters reporting improved efficiency through collaboration with National Productivity and Competitiveness Council 6 partnerships between existing exporters and external partners established
Expansion of business linkage programme targeting local service providers and prospective external partners (Concerned Agencies: National Export and Investment Promotion Agency, Sector Association and Federation of Chambers of Commerce) New cluster development / support programme for the sector (Concerned Agencies: Line Ministry, Ministry of Industry, Sector Association) Initial collaboration in service and market development among current exporters in region A 20 exporters acquiring ISO certification Expedition of international accreditation of locally based ISO certification agencies (Concerned Agencies: National Standards Body and Bureau of Standards)
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For potential exporters focus on: 10% increase in visits by potential exporters to the National Export and Investment Promotion Agency during the first year of the strategy 15 potential exporters committed to exploring market opportunities within the first year of the strategys implementation 5 potential exporters establishing linkages with external partners in the first year of the strategy
Commencement of a Benefits of Exporting Campaign (National Export and Investment Promotion Agency) Upgrading of trade and advisory support services initiative (Concerned Agencies: All members of services delivery network) Expansion of business linkage programme targeting local service providers and prospective external partners (Concerned Agencies: National Export and Investment Promotion Agency, Sector Association and Federation of Chambers of Commerce) New cluster development / support programme for the sector (Concerned Agencies: Line Ministry, Ministry of Industry, Sector Association)
For aspiring exporters focus on: 15 aspiring exporters expanding operations and involved in the national component of the sectors value chain by second year of strategy Loans to start-ups in the sector increased by 25% by second year of strategy Enrolment in business curriculum at 50 by third year of strategy 20 women entrepreneurs engaged in exploring international market opportunities by third year of strategy
Expansion of business linkage programme targeting current exporters and aspiring exporters (Concerned Agencies: National Export and Investment Promotion Agency, Sector Association and Federation of Chambers of Commerce) Introduction of new lending programmes (Concerned Agencies: National Development Bank) Consultation with business sector and would-be investors (Concerned Agencies: Line Ministry and private sector enterprises) Introduction of new curriculum at college/university level (Concerned Agencies: Ministry of Education, University and college network) Expansion training and outreach programmes targeting women entrepreneurs (Concerned Agencies: Small Scale Business Organization, local government and NGOs)
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For non-exporting participants in value chain focus on: Telecommunications company providing high bandwidth Internet access by end of year 2 of the strategy 5 technology firms cooperating on sectoral business portal that will be functional by end of first year of strategy providing information resources, capacity-building materials, and e-commerce functionality
New cluster development / support programme for the sector (Concerned Agencies: Line Ministry, Ministry of Industry, Sector Association)
Response of priority client categories to survey (client satisfaction index) on quality of export support services provided by the services delivery network and degree of effectiveness and coordination of strategy support network
Overall priority to be attached to current exporters 100% positive response
Initiation of client survey (Concerned Agency: Sector Association, Line Ministry and National Export and Investment Promotion Agency)
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Step 11. Establish the Framework for Managing and Monitoring the Strategy The Strategy Management and Monitoring Matrix The Strategy Team should prepare the strategy management and monitoring matrix below in a manner similar to the example. The matrix should then be finalized by the designated RACI A team member. It is recommended that the number of measures applied to each objective should not be less than three or exceed six. The finalized matrix should be included in the Strategy Document as an annex. Stakeholder Perspective: Strategic Consideration: Objective 1 Objective 2 Objective 3 Measures Measures Targets Initiatives
Measures
Targets
Initiatives
Targets
Initiatives
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Step 11. Establish the Framework for Managing and Monitoring the Strategy The Strategy-Managers Scoring System Now that the matrix of objectives/measures/targets/initiatives has been formulated, it is essential that a system be put in place that will enable strategy managers to monitor implementation effectively. It is recommended, in this regard, that emphasis be placed on performance and impact measurement at the level of each Measure. A straightforward scoring system is suggested: One that assigns scores as follows: 0 = No progress 1 = Below expectations/target 2 = Met expectations/target 3 = Exceeded expectations/target
An aggregate score of: 80-100 implies that the strategy is highly successful, both in terms of implementation and impact; 66-79 implies that the strategy is sound and on target; 33-65 suggests that the strategy is falling short of its objectives and is in need of refinement; less than 32 suggests that the strategy management team should take a very serious look at both the strategys design and approach to implementation.
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Step 11. Establish the Framework for Managing and Monitoring the Strategy Example The Strategy Manager's Scoring System
Client Perspective Weighting = 35% Measures = 6 Objective 1 Focus on Client Priorities: To strengthen performance of current exporters and to engage potential and aspiring exporters in exploring international market opportunities Actual performance of targeted client All value-related considerations categories, measured in terms of 3 advancing in all client categories export growth and increments in value other than women participation in the retention and, value addition and value value chain. creation for current exporters Targets exceeded in market development initiatives under the Opportunity Partnership programme 30 exporters reported improved efficiency as a consequence of collaboration with Productivity and Competitiveness Council target exceeded in partnerships between existing exporters and external partners 8 partnerships established through Governments business linkage programme collaboration established in service and market development among current exporters in region A under Ministry of Industrys clustering programme
xport activities launched, markets entered and export receipts for potential (or formerly potential) exporters
Targets not achieved due to inability of National Export and Investment Promotion Agency to launch effectively targeted programme Target not met due to delays in implementing the concessionary loan programme No progress in designing specialized curriculum during reporting period Programme targeted at women entrepreneurs not initiated during the reporting period
investment and business activities of aspiring exporters
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efficiency of non-exporting participants in the sectors value chain
High Bandwidth programme progressing on schedule Partnership for technology portal established and design work advancing
entry into the sectors value chain by potential or aspiring, non-exporting participants
Number of small specialized startups exceeding expectations and initial external value relationships under exploration with established exporters Line Ministry and Sector Associations survey confirms high satisfaction index with services provided, especially by commercial posts abroad and National Export and Investment Promotion Agency Weighted Score:
Response of priority client categories to survey (client satisfaction index) on quality of export support services provided by the services delivery network and degree of effectiveness and coordination of strategy support network Maximum Possible Score: 6 X 3 = 18 Actual Score: 11 Score for the Client Perspective: %
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Step 11. Establish the Framework for Managing and Monitoring the Strategy The Strategy Manager's Scoring System
Development Perspective Weighting = Measures = Objective 1 Employment Generation Measure Score Comment Objective 2 Poverty Reduction Objective 3 Development of Disadvantaged and Backward Regions Objective 4 Gender Equality Objective 5 Environmental Sustainability Maximum Possible Score: Weighted Score: Actual Score: Score for the Development Perspective: Competitiveness Perspective Weighting = Measures = Objective 1 Capacity Development Objective 2 Capacity Diversification Objective 3 Human Capital Development Objective 4 Improved Infrastructure Objective 5 Improved Trade Facilitation Objective 6 Reduced Cost of Doing Business Objective 7 Improved Market Access
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Objective 8 Improved In-market Business Support Objective 9 Improved National Promotion Maximum Possible Score: Weighted Score: Actual Score: Score for the Development Perspective: Client Perspective Weighting = Measures = Objective 1 Focus of Response to Priority Needs of Current Exporters and Participants in the Value Chain Objective 2 Focus of Response to Priority Needs of Potential Exporters and Participants in the Value Chain Objective 3 Focus of Response to Priority Needs of Aspiring Exporters and Participants in the Value Chain Objective 4 A Competent Business Community Objective 5 An Informed Export Community Objective 6 A Financially Serviced Export Community Objective 7 A Certified and Accredited Business Community Objective 8 Fully Supported Business Community (Other Support Services) Maximum Possible Score: Weighted Score: Actual Score: Score for the Development Perspective: Client Perspective Weighting = Measures = Objective 1 A Fully Coordinated Policy Environment Relating to the Sector's Export Development
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Objective 2 Stronger and More Response Institutions Maximum Possible Score: Actual Score: Score for the Development Perspective: The Balanced Scorecard Year 1 of Strategy Total Score: Development Perspective Competitiveness Perspective Client Perspective Institutional Perspective Overall Assessment:
Weighted Score:
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Step 12. Formulate a Plan of Action The Strategy Team can now prepare the strategys final Plan of Action which: specifies the Organizations responsible for implementing each Initiative the Resources that will be allocated to these organizations to implement the initiative, and the implementation timeframe for each Initiative.
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Step 12. Formulate a Plan of Action It is recommended that the Strategy Team should prepare the Plan of Action for each Objective based on the format outlined below. The complete Plan of Action should be included as an Annex to the Sector Strategy Document. Plan of Action
Strategic Consideration # Objective 1 Initiative A Responsible Organization(s) Resources Required Implementation Period Milestone: Milestone: Initiative B Responsible Organization(s) Resources Required Year 1 Q2 Q3 Year 2 Q2 Q3 Year 3 Q2 Q3 Year 1 Q2 Q3 Year 2 Q2 Q3 Year 3 Q2 Q3
Q1
Q4
Q1
Q4
Q1
Q4
Implementation Period Milestone: Milestone: Initiative C Responsible Organization(s) Resources Required
Q1
Q4
Q1
Q4
Q1
Q4
Implementation Period Milestone: Milestone:
Q1
Year 1 Q2 Q3
Q4
Q1
Year 2 Q2 Q3
Q4
Q1
Year 3 Q2 Q3
Q4
137

Step 13. Maintain the Public-Private Partnership for Strategy Implementation Ideally some form of structure will be established to ensure that the various Initiatives and implementing Organizations are coordinated and the dialogue between the public and private sectors is maintained.

Ministry of Labour
Services Coalition
Standards Organization Border-In Vocational and Training Centers Universities Certification Bodies
Service Sector Associations Research and Technology Organizations Banks / Financial Services Organizations Clustering Organizations Technology Parks & Business Innovation Centres Sm all Industry Developm ent Organization Regional Developm ent Organizations NGOs

Developm ent
Insurers
Wom en's Associations Border-Out Micro Finance Providers Trade Prom otion Organizations Investm ent Prom otion Agency Trade Inform ation Organizations Exporters' Associations
138

Step 13. Maintain the Public-Private Partnership for Strategy Implementation To be completed by relevant members of the Strategy Team and the findings summarized by the designated RACI 'A' team member. Maintain the Partnership
Options and Recommendations
139
140
PART F THE OUTPUT
141
142
The Output
The Sector-Level Export Strategy Document
1. Introduction Rationale Principles of Analysis: Scope of Strategy Framework for Strategy Design and Management Application of the Value Chain 2. Where Do We Want to Be? The Vision The Sectors Future Value Chain An Illustration 3. Where Are We Now? An Assessment Export Performance and Assessment of Overall Competitiveness The Sectors Current Value Chain An Illustration Performance against Critical Success Factors Government Policy and Strategy in Support of the Sector The Sectors Trade Support Network: Capacity, Competency and Coordination 4. The Resource Situation in the Public and Private Sectors (Current and Projected) 5. SWOT Analysis of the Sector 6. The Way Forward (over 3-5 years): The Development Perspective Strategic Consideration # 1 Developmental Considerations and Priorities The Competitiveness Perspective Strategic Consideration # 2 Border-In Issues and Priorities Strategic Consideration # 3 Border Issues and Priorities Strategic Consideration # 4 Border-Out Issues and Priorities The Client Perspective Strategic Consideration # 5 Client Prioritization Current Exporters and Other Current Participants in the Value Chain: Support Requirements and Response Potential Exporters and Other Potential Participants in the Value Chain: Support Requirements and Response Aspiring Exporters and Other Aspiring Participants in the Value Chain: Support Requirements and Response Implications for Sector Support Services Strategic Consideration # 6 Business Competency Strategic Consideration # 7 Trade Information Strategic Consideration # 8 Trade Finance Strategic Consideration # 9 Quality Management Strategic Consideration #10 Other Support Services The Institutional Perspective Strategic Consideration # 11 Strengthening the Sectors Strategy Support Network: Strategy Coordination and Management: Structure Process (Strategy Monitoring) Strategic Consideration # 12 The Sectors Services Delivery Network 7. Weighting of the Stakeholder Perspectives and Summary of Strategic Objectives 8. Resource Mobilization Annex 1: Overview of the Sectors Global Market Annex 2: The Plan of Action Annex 3: The Strategys Balanced Scorecard
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Export Strategy Design Sector-Level Strategy Service Sectors

Guidelines for Strategy-Makers

Depart from a Thorough Assessment of the Sector

4 Analysis Where are We Now?

Confirm Client Demands and Needs

Review Essential Trade Support Services

Formulate a Plan of Action

Maintain the Public-Private Partnership for Strategy Implementation

Strategic Consideration #1: The Development Gear of Strategy

The Competitiveness Perspective

#2: The Border-In Gear of Strategy

The Vision The Client Perspective

#6: Business Competency

#7: Trade Information

The Institutional Perspective

#11: The Strategy Support Netw ork

Ministry for Wom en's Affairs

Cham ber of Com m erce

Ministry of Foreign Affairs

Export Strategy Support Network

Regional and Local Governm ents Statistical Agency

Standards Organization Vocational and Training Centers Universities Certification Bodies

Services Delivery Network

Border Telecom s Organizations

Part B Process Fundamentals

Example of RACI Matrix

The RACI Matrix Team Member Informed Start End

Week 4 Week 4 Week 5

The Strategy Teams RACI Matrix

Trainees Leave Firm's Country

Development of Service Concept: Management Training

Design of Curriculum and Training Materials

Example 2: The Business Model for the Export of Customized Software

PostDeployment Review and Fine Tuning / Changes --User Acceptance

Development of Service Concept: Customized Software

Design Technical Specification / Post-Sale Agreement

Offsite Development of Prototype (with possible outsourcing)

'Packaging' of Software and Documentation

Human Capital Development:

Cost of Doing Business:

In-Market Support Services:

Development of backward regions and disadvantaged groups:

Part C Analysis Where are We Now?

Depart from a Thorough Assessment of the Sector

4 Analysis Where are We Now?

Confirm Client Demands and Needs

Review Essential Trade Support Services

Analysis Where are We Now?

Analysis Where are We Now?

Analysis Where are We Now?

D. Business Attitudes (in the sector)

Analysis Where are We Now?

Private Sector Support Environment:

Analysis Where are We Now?

More (M), Equally (E) or Less (L) Competitive

Analysis Where are We Now?

Sectors Current Competitive Position:

Sectors Forecast Competitive Position (3-5 Years):

Analysis Where are We Now?

Analysis Where are We Now?

Part 1: Main Markets (Traditional and New Markets)

Service Lines Exported to Country

Analysis Where are We Now?