Diapositiva 1

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SME
IT Usage for Direct Exports by SMEs Mexico
Mex
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Present Condition of IT and SMEs - Mexico
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Introduction

• The implementation of economic policy instruments
  ruled by the Mexican Government with the aim to
  encourage the IT industry development in Mexico
  and the creation of a IT culture inside the SMEs
  could be one of the important support items to
  improve the SMEs international competitiveness
  levels in many business sectors.
• Many Public and Private Universities with SMEs
  and the Mexican government are making agreements
  to improve their school programs, advance in
  students preparation and perform entreperneur
  programs and business incubators for create new
  IT business

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SME Growth

• As in other countries, the SME sector accounts
  for an important share of economic activity in
  Mexico. SME in the formal sectors are estimated
  to nearly 2 million economic units across the
  country, or about 60 of the total number.
• They contribute about 45 of private sector value
  added and provide 55 of the private sector
  labor force.1 Their activities are, as
  elsewhere, very heterogeneous commerce, services
  and manufacturing.
• Federal District, for example, registered SMEs
  in the industrial sector are concentrated in
  food, clothing, furniture and wood products,
  publishing and printing, and metal products..
• 1 Source FUNDES Mexico.

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IT and SME

• In Mexico the applications of IT by SMEs are
  running slowly, many business are far to reach
  the operational advantages that IT can give to
  them, mainly when the relation with big clients
  or suppliers chains depends in the opportunity to
  share information in many areas as inventories,
  factoring, production control, logistics and
  their connection with the central management of
  the business networks.
• The current composition of annual IT investment
  in Mexico is similar to the composition found in
  other countries under invested in IT capital.
  Most investment is in hardware (60.8 percent)
  least is in commercial software (10.3 percent).

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IT and SME
  However, unlike as other countriesthose that
are under invested in IT capital as well as all
others the commercial software share of total IT
investment is expected to decline in Mexico.
There are many potential factors causing this
trend. Between 2002 and 2006, the commercial
software share of annual IT investment in Mexico
will fall from its already low value of 10.3
percent to only 7.9 percent.
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IT and SME
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IT Applications

• The industry of software in Mexico is weak and
  it has big difficulties to be able to export his
  production. Most of the companies of software are
  below international standards what impedes
  considerably the fact that the companies have
  access to the international markets.
• In the business sector of IT, there are few
  companies who offer integrated business
  solutions.
• The majority of these companies are very small,
  and are not well know in the technology market.
• Most of the companies works without
  methodologies that allow them to establish real
  costs and to determine the size of the efforts
  necessary for the development of applications.

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IT Solutions Development Enterprises
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Present Situation of IT market and IT usage by
SMEs

• The rising industry of software in Mexico is
  very dispersed, composed by a reduced number of
  professionals, who in its majority and except in
  a few cases, are outside of any model of quality
  recognized internationally.
• The number of establishments that dedicate to
  product development and services related to
  computer science is not known precisely
• Principal obstacles
• The nonexistence of a Stock Market dedicated to
  medium and small companies
• The piracy of human resources
• The strategies for the economic development in
  Mexico that are far to stabilize the economy
  scenario for SMEs of the country
• Doing a general analysis related to the basic
  aspects for the development of the Mexican IT
  sector results a potential profile, creating
  conditions for their development.

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Mexican SME Direct Exports

• Export activity is concentrated on the United
  States market (88.56 of the whole).
• Export products offer, belong from the
  manufacturing industry (88.6 of the whole)
  emphasizing by volume in the following sectors
• Metallic products, Machinery and 66.3
• Auto- parts industry 28.3
• Electrical Electronics Industry 19.8
• Machinery and equip for industries 15.6
• (information process and machine parts )
• The difference of total is distributed between
  textiles, food and drinks, chemical substances,
  petrochemical and others.
• In - bond industries (Maquiladora) generate big
  exports with low value added in most of the cases.

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Mexican SME Direct Exports
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Mexican SME Direct Exports

• About export incentives, SMEs has received few
  benefits from government programs, due the lack
  of national suppliers, instead of international
  ones who operates a high volume of imports,to
  support the direct export activities and promote
  commercial alliances.
•  
• In direct exports, SMEs have a minimal
  participation of 6.65 in direct exports,
  compared to 51.86 of the big exporting
  companies and 41.49 of in-bond industries (
  Maquiladora).
• The slow dynamics of the Mexican internal market
  affected the SMEs activities, resulting in the
  dismantling of productive chains caused by the
  international offer obeying criteria of minor
  costs high volume and/or major quality.  
• The weakening of the Mexican productive chains
  was a result of the low participation of
  national suppliers. In few cases this
  participation reach more than 50 in appliances
  production and up to 40 in automotive sector,
  reducing it in high - tech industry, electrical
  auto parts and computers, as lower than 5 .

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Mexican SME Direct Exports
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IT support for SME Exports FreightMinds Case

• FreightMinds a new venture Mexican company
  dedicated to system development and
  implementation to facilitate SME international
  trade, providing web based solutions,
  specifically for the freight forwarding,
  logistics and cargo handling industry. The aim
  is to fill the current gap for a systematic
  approach to shipment creation, tracking,
  performance measurement as well as a
  comprehensive industry and customer database
  management tool, together with warehouse
  operations visibility, all via the internet,
  supported by five modules design

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IT support for SME Exports FreightMinds Case...

• e-CRM (Electronic-Customer Resource Management
  Module)
• Sales and Marketing Process Management, creation
  of customer database and maintenance, sales and
  marketing surveys and sales planning, as well as
  a helping tool for productivity measurement.
• e-FOM (Electronic-Freight Operations
  Module)Designed to improve the creation and
  execution of air, ocean and ground service
  shipments in a automated manner, and
  simultaneously managing operational requirements
  in addition to shipment tracking and tracing via
  WEB as well as service level and performance
  monitorig.

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IT support for SME Exports FreightMinds Case...

• e-WOM (Electronic-Warehouse Operations Module)
•        Designed for the automation of warehouse
  and inventory process control, distribution,
  order management, as well as WEB based visibility
  of the processes and inventory levels and their
  locations. One of the many features is the
  capability to remotely access the information from
  anywhere in the world, at any time, in real
  time. This permits immediate control, flow and
  distribution of goods to and from any
  geographical areas and locations, allowing for
  immediate deployment of inventory levels, at any
  time.
• .

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IT support for SME Exports FreightMinds Case...

• e-BIM-(Electronic Business Intelligence
  Module)    
• Designed for access via WEB of customer's
  business KPIs (Key Performance Indicators) and
  BSCs (Balanced Score Cards) productivity and
  performance   elements . Special feature to
  enable the user to drill down and obtain
  information from any of the business areas, in
  real time at any time.
• e-FMC (E-FreightMinds Consulting)
• A complementary support service developed to
  work with customers and help them identify
  and analyze the areas of opportunities and determi
  ne the possible solutions applicable to their
  operational and management requirements
• .

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IT Industry Export Experience

• Mexico began to export software in 1985 and
  already has successful commercial software
  exporters. Sinapsis Technologies Mexico, has
  been in business for 12 years, employs 180
  people, and exports approximately 5 percent of
  its products.
• Companies like GE Dem, Seguridata, and Softtek
  are successful software exporters for Mexico.
• These successful commercial software producers
  have the potential to be significant contributors
  to Mexicos trade balance.
• For support the competitive level of the Mexican
  IT industry in the international market, many IT
  development companies are beginning to carry on
  the CMMI process certification, and a little
  group of 6 business already obtained their
  certification CMM2 level, 8 the CMM3 and only
  one CMM5
• .

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IT Industry Export Promotion

• One of the main objectives of Mexicos Software
  Industry Development Program is to increase the
  export potential of Mexican software companies
  to be a worldwide leader supplier of software
  services.
• One of the areas that need government support is
  marketing to promote exports.
• As promoters appeared Mexican institutions
  including Economy Ministry, International Trade
  Development Bank (BANCOMEXT), Mexican IT Industry
  Association (AMITI), and Electronic Productive
  Chain Center (CADELEC) in Jalisco, among others.
  

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National Program of Development Management

• To give solution to the big existing economy
  differences with our commercial partners and to
  meet the social demands of the country, the
  current government through his National
  Development Plan proposed to support a growth
  with quality, focused in five big targets
• Lead the economic dynamics of the country
• Raise the country competitiveness
• Assure that the development should be enclosing
  to all sectors
• Achieve a regional balanced development
• Establish conditions to reach a permanent
  development

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Strategies

• 1) Generate a favorable environment for
  development and a control for the principal
  economic variables, and encourage structural
  reforms and the good performance of the public
  administration, for allow companies of all sizes
  and sectors, to develop and to increase his
  competitiveness, in addition to stimulating the
  creation of new companies.
• 2) Transform the companies of the country,
  especially the SMEs, into competitive
  organizations, supporting the development of
  their capacities for his successful participation
  in the national and international markets. 
• 3) Identify the opportunities of new economic
  activity in specific regions and productive
  sectors, strengthening the capacity of the
  federative entities and the municipalities in the
  whole country to capitalize his competitive and
  comparative advantages.

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IT policies in the overall countrys development
strategy

• Create a IT Industry support framework with a new
  law to enforce the technological development and
  a IT initiative named PROSOFT with a financial
  scheme and grants to encourage IT developers to
  go in the technological markets.
• PROSOFT has the target to create the necessary
  conditions in order that our country possesses a
  competitive industry of software internationally
  and to assure his growth in the long term.

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Prosoft support

• Promote exports and the attraction of new
  investment
• Orientate actions of export promotion in niches
  with comparative advantage for the industry.
• Education and competent personnel training in
  software development, in suitable quantity and
  quality
• Develop the internal market
• Identify the level of adoption of IT in economic
  sectors, detecting those where it is possible to
  accelerate his adoption
• Develop the internal market of IT
• Strengthen the local industry
• Open the government adquisitions to the Mexican
  software industry.

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Prosoft.....

• 9. rReach international levels in process
  capacity.
• 10. Provide a method of evaluation that guarantee
  in the organization a proficiency level of
  capacity of their processes and a qualification
  of service.
• 11. Creation of the category of IT in the
  National Award of Technology.
• 12. Promote the construction of physical
  infrastructure and telecommunications clusters
• 13. Encourage initiatives of IT on the federative
  entities and managerial groupings for develop
  the country as a world class player.

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The goals that the PROSOFT has defined to reach
for 2013 are

• Achieve an annual production of software for
  5,000 million dollars
• Reach the average world indicators of expense in
  technologies of information
• Have a new position of Mexico IT industry as one
  of the Latin-American leaders for software
  development and digital contents in Spanish.
•  
• To reach the goals, 7 strategies were defined
  as investments, exports, human capital, legal
  frame, internal market, local industry, quality
  and managerial support grouping.

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SME
IT Usage for Direct Exports by SMEs Mexico
Mex