Lessons Learned from the APEC Informatization Project

by Joo-Yong Kim, Ph.D. KIMI Korea Information Management Institute for SMEs

SME 02/2004 (Mar 2003 – Oct 2004) 1 Informatization Survey (July 2003 – November 2003) Informatization Policy Forum (July 15-16, 2004) Training Workshop (October 11-21, 2004) 2 3 Enabling e-MES environment – through survey and e-community based capacity building

Aim and Objectives Aim –Provide SMEs with windows of opportunity for upgrading skills of ICT through the development of e-community models Objectives –Share best policies and practices with policymakers and practitioners in APEC –Analyze influencing factors and impediments to informatization promotion –Enhance human capacity of designing, developing, implementing and evaluating SME informatization

Outcomes Comprehensive survey report on SME Informatization: –Details for 21 member economies in APEC (1) Trends (2) Definition of SMEs (3) Strategy and progress (4) Government Organizations (5) Major policies and projects (6) Efforts from the private sector (7) Overall assessment –Comparison and analysis A proceeding book of a forum with 17 presentations –Diverse discussions with 24 speakers from 11 economies A training manual with 11 different topics –Active 23 participants from 11 economies in 11 classes, 2 group discussions and 3 field trips for 11 days –5 lecturers from APEC economies and 8 from Korea

Support Policy Spectrum of Programs Infor- mation Infra- structure FinancingOn site Consulting e-biz network High Tier SME- focused (Group I) Chinese Taipei, USA Japan, Korea Generic ICT (Group II) Canada, New Zealand Hong Kong Australia Singapore Low Tier No Noticeable (Group III) China, Indonesia, Malaysia, Thailand, Chile, Mexico, Peru, Philippines, Russia, Vietnam, Papua New Guinea, Brunei Policy comparison

Public intermediaries specializing in SME informatization –More productive in enforcement of informatization policies Specialized intermediary has dedicated human skills and information Government has administrative burden and a lack of expertise Private intermediaries representing SMEs –Industry and/or trade associations e.g. chamber of commerce and federation of small businesses e.g. industrial complex for SMEs –More effective in e-community approach e.g. portal site for common purchase and sale e.g. infrastructure establishment for common use by SMEs Intermediary

Influential Factors National ICT infrastructure –SMEs in high tier have access to broadband Internet at reasonable Internet access cost Business Environment –SMEs in high tier are under more pressure to install application systems from business partners in the value chain Supporting organizations –Public intermediaries dedicated to execution of informatization policies e.g. KIMI (Korea Information Management Institute for SMEs) –Private intermediaries such as business or industry associations e.g. Franchise Promotion Association in Chinese Taipei; Tokyo Fasteners Cooperative Association in Japan

Findings(1) Digital divide exists in APEC –Huge gap in accessibility to telecommunication infrastructures High Internet access fees and low Internet access speed High prices of software and hardware –SMEs in advanced economies are more pressured to adopt informatization from business partners –Reduction of digital gap is indispensable for the Bogor Goal of “free and open trade and investment” by 2020 Intermediary’s role gets bigger –Public intermediaries specializing in SME informatization are effective in promoting and disseminating ICT utilization

Findings(2) Sharing and reuse of project results in APEC –Measurable metrics to assess policies and practices as “Best” –Inventory management of informatization models Do not re-invent the wheel, but innovate the wheel CoP (Community of Practices) as a benchmarking site Barriers in the sequence of financing, human resources and ICT capability –Low tier economies are encouraged to undertake government-led network building among stake holders –Well-programmed human capacity building leads to enhanced awareness

Lessons Learned(1) Successful survey in APEC –Sufficient time is essential to obtain cooperation from member economies In particular, it must be sufficient enough for the member economy concerned to verify accuracy of its survey report –Surveys at the level of individual SMEs art not attempted unless the member economy has done it before Open forum to invite demand side of SMEs as well as supply side of Government –More attention should be paid to private sector for their real voices about informatization –Programs of human capacity building should also address specific needs of SMEs

Lessons Learned(2) Improvement of training workshop –Participants prefer practical experiences of advanced economies rather than theories At the same time, they expect to introduce their economy’s policies and status –More time should be allotted to group discussions with facilitators and participants –Participants desired workshop period to be 10 days

Suggestions

A concrete cooperative mechanism to be established as a channel in APEC –According to “SME Coordination Framework” defined in 2004, more vivid activities are expected for better cooperation between APEC fora and SMEWG For instance, there were talks between TELWG and SMEWG in April, 2005 Remedy for issues on a voluntary basis –Korea proposed and established “APEC-IC: APEC innovation center for SMEs” in 2005 cf ADOC (APEC Digital Opportunity Center) by Chinese Taipei –Korea also provides a website for APEC SMEWG in 2005 cf is also administered by Koreawww.apectelwg.org

APEC-IC: Main Functions 1 st Stage (2006 ∼ 07) 1 st Stage (2006 ∼ 07) 2 nd Stage (2008 ∼ 09) 2 nd Stage (2008 ∼ 09) 3 rd Stage (2010 ∼ ) 3 rd Stage (2010 ∼ ) Training workshop and experience sharing Training workshop and experience sharing Education & Training Education & Training Innovation Model Development Innovation Model Development Network Building Network Building APEC SME innovation leaders club APEC SME innovation leaders club APEC innovation institute conferring diploma APEC innovation institute conferring diploma Policy studies and assessment model development Policy studies and assessment model development Innovation management practices for SMEs Innovation management practices for SMEs Award for innovation by APEC leader Award for innovation by APEC leader APEC SME innovation conference APEC SME innovation conference Cluster visiting and experts dispatch Cluster visiting and experts dispatch Joint conference with APEC fora Joint conference with APEC fora  Web site and “APEC Innovation Brief for SMEs” during years