The Market

Transcripción

The Market

Information Technology & SMB Market in Mexico
Awareness, Infraestructure and Applications
APEC Forum 2004
Leonardo Gamez-Eternod
Visionaria Business Development
July 2004
©Visionaria. Todos los derechos reservados. El material contenido en este documento tiene información confidencial que pertenece a Visionaria, no podrá ser utilizada, fotocopiada, duplicada o
revelada para cualquier propósito diferente a los indicados por los involucrados.
Background
Mexican Government has been focusing to close the gap
between current Mexican Information Technology
penetration (1.4%) vs. GDP and the world average (4.7%)
High Value Employment is a direct consequence and an
important pre – requisite of this paradigm’s change
Improvement in the IT Industry direct participants
business and capabilities is fundamental to achieve the
goals
Segmentation of the market from the IT perspective
•Completely known and defined
•High organizational complexity
•IT Products and Services
Completely Customized
Large
Corporations
•Very well know and defined
•High to medium
organizational complexity
•Medium to little known and
defined
•Poor organizational
complexity
•Unknown
•Behaves like consumer
•No organizational
complexity
Medium
Enterprise
10,000
Small
100,000
•Medium to standard
(Vertical) IT Products
and Customized Services
•Shrink Wrapped IT
Product and Services
Business
600,000
Micro
•IT Basic Products
(like MS Office)
and No Services at all
Business
Segmentation of the market from the IT perspective
•Completely known and defined
•High organizational complexity
•Very well know and defined
•High to medium
organizational complexity
•Medium to little known and
defined
•Poor organizational
complexity
•Unknown
•Behaves like consumer
•No organizational
complexity
SAP, Oracle
All
SAP, Msft,
JDEdwards &
Proprietary System
Must of Them
Aspel &
Compac
(Local)
Almost All
Aspel & Msft
Office
Very Few
•IT Products and Services
Completely Customized
•Medium to standard
(Vertical) IT Products
and Customized Services
•Shrink Wrapped IT
Product and Services
•IT Basic Products
(like MS Office)
and No Services at all
The Market (Demand Side)
The Enterprise/Business Customers
Technology Adoption for the sake of Technology is a stage already
surpassed (Early Adopters y Visionaries 15% ) so we are in the Pragmatic
World (Early y Late Majority is 80% of the Total Market)
So products and technology got to be delivered as a real solutions with a
clear and measurable ROI
The Economy in General
Everybody in the Economic Environment is interested in increasing SMB
productivity and competitive position and see IT a a key facilitator
Government, Industrial and Commerce Chambers, Value Chain Participants,
Financial Industry, etc.
However, a wealth of initiatives have not been able to achieve the level
of awareness and understanding in that segment to get the critical mass
of adoption
TALC: Technology Adoption Life Cycle model
Technology
Enthusiast
Visionary
Pragmatist
Tornado
Early
Market
Conservative
Main
Street
Skeptic
Total
Assimilation
Bowling
Alley
Geoffrey A. Moore: Crossing the Chasm
IT Industry (Supply)
IT Platform Manufacturers (Microsoft, Intel, OEMs, etc.)
They invest large amount of money to evolve technology that has to
delivered as solutions
However, they have built very few elements to comprehensively develop
the community of partners that have the customer direct contact
Local Software Solutions Developers
Very good customer knowledge on the niches where they got solutions
Inconsistent quality of their products has created a credibility problems
They don't have the elements to go beyond their local community
Small Integrators
Those are the companies that really have the direct relationship with
the market
Their geographic coverture makes them the ideal channel to reach the
whole market
They've been focused to low margins business (HW, SW Licensing, etc.)
and find themselves in the crossroads of developing capabilities with less
and less margins (vicious circle)
Key Topics
Infrastructure
If you consider the lack of Technology Awareness and Understanding
Infrastructure might be the most complex of all three topics to solve
Infraestructure has to be not only with the physical pipes but with all the
organizations that take technology the business
Awareness
As the level of sophistication in the Small and Micro Segment is very low,
Technology is another hidden science like anything else that it is not
core business
Form the IT perspective, Small and Micro Business are defined as such
organizations as they does not have dedicated areas for technology adoption
Applications
In Latin America as you go lower in the company size pyramid, the local
software solutions (the real enabler of productivity) become more
important
However, the Accounting Packages are more a ticket to play than real
productivity improvers. They give no market understanding nor business
predictability
What‘s been done in these three topics
Infrastructure
eMexico is a big effort to take technology to almost any citizen in
the country
As part of the project 2,500 going to 3,250 by year end Digital
Community Centers with the telecommunications and computing
infrastructure have been installed.
Young population and small and micro business owners are the main
beneficiaries of this initiative as the key
IT Integrators and SW Development Houses Initiative
Economy Ministry and ANADIC (National Resellers Association) jointly
with Microsoft, Intel & Visionaria BD started a project to develop the
competencies of 300 (going to 1,200 in 5 years) Resellers/Integrators
and 25 (100 in 5 years) SW development companies
The effort focuses in enable those companies in Sales&Marketing,
Financial Control, Services Delivery and Management and Human
Resources
Financing of the Project comes from Government, Manufacturers and
the companies
Committment to invest in each company is for 2 years
Capabilities, Profitability and Value (Chicken and Egg Paradigm)
Cost
Per
Employee Gross
Profits
Customer Value
40%
50K
30%
Current Situation
Integrators
25K
Move them in the
Capabilities/
Profitability Curve
Is a MUST
20%
10%
10K
5%
Ability to Deliver
Licensing
Network
Sales
Network
Basic
Implementation
Network
Support
Network
Consulting
Solution
Selling
(ERP, CRM)
Solution
Implementation
Solution
Support
Solutions
Consulting
Enabling the Market: Integrators Phase
Demand Generation
Key
Initiatives
Demand Generation
Socios
de Mercado
Integrators
Objetivo
Resellers
ANADIC
MDN
Partners
Program
$$$
$$$
Partners
Incentives
Local SW
Solutions
Expected Employment Growth in Three Years
Human Resources Model
Expected Average Growth
Current
Employment
In Three Years
Top Executives
2.50
6.00
140%
Sales & Presales
5.00
12.00
140%
IT Infrastructure Services
11.63
26.26
126%
IT Applications Services
1.00
20.67
1967%
20.13
64.93
223%
G&A Total
4.02
12.74
217%
Gran Total
24.15
77.67
222%
Areas
Core Business Total
Growth
Awareness
eEconomia chapter (pert of the Mega-project eMexico) is the key
program to create the technology awareness in the SMB market.
Among other smaller projects some concrete results we have:
Digital Community Centers (with the telecommunications and computing
infrastructure) installed in all the counties in Mexico which primary use
is eLearning and then access to markets. Although this centers have a
broad spectrum of users, SMB market is one of the two main segments to
get the benefits
Number of centers is around 2,500 and growing to 3,250 by year end
Business Articulation Centers: Jointly developed by the Government,
Industrial and Commerce Chambers, Microsoft & Hewlett Packard the
initial focus was also training (business training enabled by technology).
This initiative is far more focused to the business segment and the scope in
addition to learning is to incorporate business services (technology
implementation is one of them) and finally guided access to local and
international marketplaces
Current no. Of centers is 40 hosted by the state branches of the chambers
but a big switch is been planned to include the facilities of the technology
integrators to reach a larger market
Business Articulation Centers (Training)
Certification
…
Content Provider
Content Provider
Employment
Competencies
Bureau
Content
Transformation
Factory
…
Content
Transformation
Factory
eLearning
Content
Carrier
Content Creation
Delivery
Content Provider
Community Leader
Community Leader
Market Feedback
…
Community Leader
Applications
PROSOFT is a key component of eMexico and eEconomia
with the objective to develop the local SW industry to
reach 5 Billion USD by 2013 (Local & Exports)
Current local consumption is around 600 Million USD. (Actual
Local Industry 200)
Basic elements of this initiative is the definition of the initial key
economic industries where IT Solutions are going to be founded.
Micro, Small & Medium Business the largest potential
opportunity so the target segments are based mainly in small
companies (shoes, travel&hotels, big value chains, etc.)
Economy Ministry: PROSOFT (Program for the Local SW Development
Industry):
CY 2013 Target
Crecimiento de TI vs. PIB
1200%
Crecimient
1000%
Crecimiento PIB (4%)
800%
600%
Crecimiento Todos los
Segmentos (19%)
400%
Crecimiento MiPyME (28.5%)
200%
0%
1
2
3
4
5
6
7
8
9
10
Año
How the Ecosystem should look
How the Eco System should look like
Market
Data
Matriz
Producto
Insumo
Manufacturers
Integrators
Chambers,
Government
Other
Customers
Customers & Market Key Priorities
Awareness
Enablement
Solutions Ingredients
Solutions Integration
Solution Usage
Summary
Plenty of Initiatives aimed to rapidly increase technology
adoption
Combination of Government & Private Funding and
efforts seems to be the right formula
Targets seem aggressive although the bowling and
tornado effects could bring better results of those
pragmatically expected
A big effort to integrate everything could make all the difference

The Market

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