ICT Policies

1
ICT Policies Global Supply Chain Penetration in
Developing Countries

• WSIS Facilitation Meeting on
•  E-Business and E-Employment 
• UNCTAD, ITC and ILO
• Palais des Nations , 24 May 2007

Claudine Bichara de Oliveira neTune, Executive
Director (Brazil)
2
Plan

• Global Supply Chains in Developing Countries
• How it Works?
• Main Obstacles
• ICT Requirements and Trends
• Policies Practices in Latin America
• Business Environment Policies
• ICT related Policies and Practices
• Innovation and IT Adoption by SMEs
• General Assessment

3
Global Supply/Value Chains What is it?

• Global Value Chains cover a full range of
  interrelated productive activities performed by
  firms in different geographical locations to
  bring out a product or a service from conception
  to complete production and delivery to final
  consumers
• Global Value chains for Building National
  Productive Capacities UNCTAD TD/B/COM.3/79

4
GSC How it Works?

• Competitiveness based on cost reduction through
• Just-in-time manufacturing
• Cost of labour in developing countries

5
Attractive Factors to FDI
83
Market Share
54
Political Stability
52
Legal Environment
43
Macro-Economic Stability
41
Presence of Competitors
30
Quality of Infrastructure
29
Profit Repatriation
28
HR Cost quality
23
Local Government Support
23
Source A. T. KEARNEY
Access to export market
6
Global Competition Challenges

• For SMEs
• Economic Globalisation /New Markets and
  Competitors
• New Products and Services
• Speed of Change
• Exponential Multiplication of Information
• Production Capability

• For TNCs
• Management
• Real time data sharing
• Delivery Delays
• High demand on technology
• Infrastructure

ICT Key Ingredient to Enhance Competitiveness
7
Main Obstacles in Developing Countries

• Lack of strategic vision and/or concrete actions
• Red Tape and Informal economy
• Lack of Venture Capital
• Lack of technology infrastructure and logistics
• Human Resources Capabilities
• Legal Framework

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

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

8
ICT Requirements Trends

• Ubiquitous Communication
• High Speed
• Wireless Technology
• IPv6
• Interoperability and Convergence
• Multi-channel operation
• XML language
• Management Support Applications
• SCM applications
• PLM (Product Life Cycle Management)
• Security, Confidence and Trust Aplications and
  Services

9
ICT Trend - Example

• RFID - Radio Frequency Identification
  Technologyfor contactless identification of
  objects.
• Barcode product identification
• Tag product description (what it is, where it
  has been, when it expires ..)
• Antenna always turned on, wirelessly
• Biosensor chip information on physical condition
  of materials in transit

10
Business Environment Policies

• Infrastructure Transport, Warehousing,
  Logistics
• Regional/Intl Trade Agreements
• Free Trade Zone
• Tax incentives
• Financial system Royalty remittances loans
• Venture Capital and funds
• Public Private partnership
• SMEs competitiveness

• HR Development of capabilities educational
  system
• Entrepreneurship and entrepreneurial culture
• Simplification of bureaucracy
• Intelectual property, Trademarks
• Industrial Clustering
• International Standards adoption
• Arbitration system adoption

11
ICT Related Practices and Policies

• Telecom privatisation
• National Strategy for ICT Development
• Technology clusters
• FOSS
• E-Gov Policies online services e-procurement
• Skill development
• Public Awareness
• Technical support training
• High level IT education

• E-Business enabling environment
• PKI data protection, digital signatures
  certification
• Interoperability of PKI oper.
• Acceptance of digital transactions
• Business data online validation verification
• Transport logistics
• E-payment
• Customs automation
• Self regulation for high quality of online
  services

12
Innovation and IT Adoption among SMEs

• Tax incentives to stimulate IT adoption, purchase
  production
• Funding for RD and innovation
• University - Enterprise cooperation
• E-network / linkage to intl iniciatives
• Business Telecenters

13
Mexico Innovation for Competitiveness Programme

• Business Innovation Programme / CONACYT World
  Bank
• Consortia and research networks
• Venture capital fund
• Pre-competitive fund
• Sectoral funds
• Researchers and technologists in industry
• HR Financing scholarships Programme / CONACYT
• Technology and innovation policy framework
  international integration

14
Chile Customs Modernization / ISIDORA
Internet-Integrated Systems for the Development
of Customs Operations and Regulations

• Integration of Customs procedures with those of
  other public and private participants of the
  international supply chain such as
• Other Government agencies (Single-Window)
• Seaports
• Warehouse administrators
• Shippers
• Transport agents
• Consolidators

15

• What is Brazil doing ?

16
Brazil Governmental Programs

• Governmental Programs towards technological
  development and innovation adoption in the
  private sector (specially among SMEs)
• PAC Program of Acceleration of Growth
• PROGEX Program of Technological Support to
  Exportation
• PITCE Industrial, Technological Policies
  Foreign Commerce
• PROTEC Brazilian Society Technological
  Pro-Innovation
• Program for the Development of the national
  industry of Sw related services
• Profarma production, R,DI for cies of National
  control

17
Brazil Financial support

• Fiscal exemption Lei do Bem
• Wages PDTI PDTA,for RDInovation, and
  University/enterprise cooperation PAPPE, RBT
• Funding Pró-Inovação (technology for supply
  chains) Juro Zero (inovation in SMEs)
• Private Equity and Venture Capital Inovar,
  Bovespa Mais, Forum Brasil
• 16 sectoral funds

18
Brazil Enhancing Online Services

• ICP-Brasil / PKI
• E-Ping / Interoperability
• FOSS
• SPB / Sistema de Pagamento Brasileiro
• SISCOMEX Sistema Integrado de Comercio Exterior
  Export Fácil Web
• Sinmetro ABNT (Certification) procedures via
  WEb
• NF-e Nota Fiscal Eletrônica
• Procomex customs modernization
• BraziltradeNet
• Business Telecenters into SMEs Clusters

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General Assessment
Assets
Still remaining obstacles

• Red tape and high taxation
• Security concerns
• Informal economy not integrated, micro
  enterprises still lacking in everything
• Connectivity in remote rural areas
• Underdeveloped transportation infrastructure
• Lack of a go abroad culture
• Latin America distinct trading groups, not a
  single trading block
• More emphasis on import substitution than
  international market integration
• Segmented efforts

• High potencial local market
• New multinationals emerging from the developing
  countries
• New business areas biotech, energy, environment,
  etc. in traditional sectors empowered by ICTs
• Successful associative initiatives

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How is Brazil in the picture ?
Services
Goods
Head

• Embraer

• Pão de Açucar

Grandene
Petrobras
Local
Petrobras
CSN
SMEs Clusters
Mendes Junior
SADIA

• Automotive

• Tata

Remote
PIM-Manaus(Assembling electronics)
Telmex
Monsanto (soy)
Telefônica
Walmart
Unilever (food)
21
Role of International Organizations

• Situation analysis and strategy definition for
  e-trade practices
• International standards and norms
• Research and information exchange with other
  regions
• Capacity building at all levels

22
Is the World Flat ?

• Globalization has bound people, countries,
  markets closer than ever, rendering national
  borders relics of a bygone era or so were
  told
• But In fact, more than 90 of all phone calls,
  web traffic, and investment is local
• Why the world isnt Flat- Pankaj Ghemawat,
  Harvard Business School Foreign Policy,
  March-april 2007 pp.54-60
• Obviously, the world is not yet flat. .This is
  about trend lines and a scale of change brought
  on by these flattening new technologies.
• Answer from Thomas L. Friedman The World is
  Flat author
• Foreign policy, May-June 2007 p.4 - Letters

23
THANK YOU !

• claudine_at_netune.com.br
• Rio de Janeiro, Brazil
• Tel/Fax [phone]
• www.netune.com.br