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ICT Policies & Global Supply Chain Penetration in Developing Countries WSIS Facilitation Meeting on « E-Business and E-Employment » UNCTAD, ITC and ILO.

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Presentation on theme: "ICT Policies & Global Supply Chain Penetration in Developing Countries WSIS Facilitation Meeting on « E-Business and E-Employment » UNCTAD, ITC and ILO."— Presentation transcript:

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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil2 Plan Global Supply Chains in Developing Countries –How it Works? –Main Obstacles –ICT Requirements and Trends Policies & Practices in Latin America –Business Environment Policies –ICT related Policies and Practices –Innovation and IT Adoption by SMEs General Assessment

3 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil3 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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil4 GSC: How it Works? Competitiveness based on cost reduction through: Just-in-time manufacturing Cost of labour in developing countries

5 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil5 Attractive Factors to FDI 83% 54% 52% 43% 41% 30% 29% 28% 23% Access to export market Local Government Support HR Cost & quality Profit Repatriation Quality of Infrastructure Presence of Competitors Macro-Economic Stability Legal Environment Political Stability Market Share Source: A. T. KEARNEY

6 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil6 Global Competition Challenges For TNCs Management Real time data sharing Delivery Delays High demand on technology Infrastructure For SMEs Economic Globalisation /New Markets and Competitors New Products and Services Speed of Change Exponential Multiplication of Information Production Capability ICT: Key Ingredient to Enhance Competitiveness

7 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil7 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 Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil8 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 Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil9 ICT Trend - Example RFID - Radio Frequency Identification Technology for contactless identification of objects. –Barcode: product identification –Tag: product description (what it is, where it has been, when it expires..) –Antenna: always turned on, wirelessly –Biosensor chip: information on physical condition of materials in transit

10 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil10 Business Environment Policies Infrastructure: Transport, Warehousing, Logistics Regional/Int’l Trade Agreements Free Trade Zone Tax incentives Financial system; Royalty remittances & loans Venture Capital and funds Public Private partnership SMEs competitiveness HR: Development of capabilities & educational system Entrepreneurship and entrepreneurial culture Simplification of bureaucracy Intelectual property, Trademarks Industrial Clustering International Standards adoption Arbitration system adoption

11 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil11 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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil12 Innovation and IT Adoption among SMEs Tax incentives to stimulate IT adoption, purchase & production Funding for R&D and innovation University - Enterprise cooperation E-network / linkage to int’l iniciatives Business Telecenters

13 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil13 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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil14 Chile: Customs Modernization / ISIDORA 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 Internet-Integrated Systems for the Development of Customs Operations and Regulations

15 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil15 What is Brazil doing ?

16 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil16 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,D&I for cies of National control

17 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil17 Brazil : Financial support –Fiscal exemption: Lei do Bem –Wages: PDTI; PDTA,for R&D&Inovation, 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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil18 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

19 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil19 General Assessment 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 Still remaining obstacles Assets

20 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil20 How is Brazil in the picture ? Goods Services Local Head Remote CSN Embraer SADIA Grandene SMEs Clusters Petrobras Pão de Açucar Mendes Junior Monsanto (soy) Automotive PIM-Manaus (Assembling electronics) Unilever (food) Telmex Telefônica Tata Walmart Petrobras

21 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil21 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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil22 Is the World Flat ? “ Globalization has bound people, countries, markets closer than ever, rendering national borders relics of a bygone era – or so we’re told” “[But] In fact, more than 90% of all phone calls, web traffic, and investment is local” “Why the world isn’t Flat”- Pankaj Ghemawat, Harvard Business School Foreign Policy, March-april 2007 pp.54-60 “Obviously, the world is not yet flat. ….This is about trend lines and 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 ICT Policies & GSC Penetration in Developing Countries | Claudine Bichara de Oliveira | neTune Ltd, Brazil23 THANK YOU ! claudine@netune.com.br Rio de Janeiro, Brazil Tel/Fax: +55 21 2511-3129 www.netune.com.br


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