Dear GKD List Members, My name is Kevin Newman. Recently, I worked on a project in Macedonia that aimed to do exactly what this discussion is examining: Reduce poverty and increase job opportunities by employing a "business approach"; specifically to strengthen the ability of local businesses to compete in the global market. One area of my work in Macedonia involved creating an IT Cluster focused on digital media, such as 3D Animation (e.g., Shrek, Toy Story) and digital postproduction. The piece below describes this activity and the outcomes, which I think have implications -- and can provide a model for -- efforts to grow economies and reduce poverty through a "technology and business approach" in other developing countries. Just by way of an introduction, my previous experience in the ICT & Development space includes: creating USAID sponsored IT Consortiums in the Balkans; wireless infrastructure for Bill & Melinda Gates' research projects in Africa; IT Policy work in the Asia-Pacific region with APDIP - UNDP; and establishing a Financial sector portal for Banks in the COMESA region of Africa. My interests include broadband wireless applications for infrastructure leap-frogging, ICT & trade integration (esp. supply chain management), and IT-focused foreign direct investment (FDI) in emerging markets. I look forward to contributing and learning from this group.
All the best, Kevin Newman ********************************************************************** "The Balkanization of Animation!" - Balkan FX Cluster enters Hollywood For the last 18 months in Macedonia (FYROM), USAID has sponsored a Cluster focused project <http://mca.org.mk> to increase the global competitiveness of the Macedonian economy. While the term "competitiveness" has been a donor buzzword for some time, there remains confusion in these types of projects regarding the the definition of "success", the expected outcomes (aside from simply increasing exports, irregardless of value-added), and the necessary sequencing of Cluster development. Realizing that Cluster success comes only from tight, targeted cooperation among related firms, we decided to focus our initial intervention on the emerging 3D Animation / Digital Media technology firms. In Macedonia, given their long academic tradition in innovative IT research, we anticipated there would be many savvy entrepreneurs to establish an FX-focused Cluster. However, despite the promise of this sector, we were most concerned about developing a working "model" with the IT Cluster, one that demonstrates by example the need for meeting end-customer demands, focusing on target market research and leveraging global networks, which could then be adapted to other industries. In our "model" for achieving Cluster success, we focused on several key components: 1) Developed a "pay-as-you-go" model of interaction. We invested time and technical assistance only where a commercial return could be properly forecast, demand estimated, and ROI articulated. To break the donor dependency path, the Cluster had to focus on delivering results and reinvesting profits in business development before reinvestment continues. 2) Targeted technical assistance in formulating business models that sequence Cluster development from initial "outsourcing" contracts (low margin, good revenue, high visibility), to developing indigenous, full-length animated features originating in the Balkans. 3) Developing scale economies through advanced training. Leveraging resources across other IT-focused donor projects, we created a new public-private initiative "[EMAIL PROTECTED]" in order to train over 600 high school students, with a majority being female, with the goal of extending this training to all secondary schools in Macedonia. This initiative reached across the entire nation to create the 100+ animators necessary for economies of scale to compete with Hollywood competitors. <http://www.usaid.org.mk/English/EDU/E-schools_eng.asp> 4) Importance of Point-of-Contact Sales Training - including technical assistance focused on international trade show participation & training to "fill-the-pipeline". We also worked with the IESC consultant, Julia Frey, to help FX3X develop a virtual office presence in Los Angeles, which is crucial to client relationship development. 5) Professionalizing the Cluster through legally-binding subcontracts with local competitors, a global marketing strategy, and the professional and timely delivery of services. The Cluster utilized the web for introducing the product and services, with short video segments to attract attention. <http://www.fx3x.com/showreel.htm> 6) Intensive short-term & long-term business planning sessions with Cluster leaders to ensure each firm incorporates collaborative shared costs (esp. financing, marketing and project management), and profit sharing. This type of initiative has enormous promise as a means to offer young people throughout the country new, high-value-added, job opportunities. As mentioned, the goal is to make the animation training available in all secondary schools throughout the country, thereby opening opportunities for all students, including those from low income communities, to obtain jobs that pay well. At the same time, having a large group of people with animation skills will strengthen the ability of the Macedonian animation industry to go to scale and compete internationally. However, there are many challenges. Perhaps the most difficult grows out of the numerous cultural, historical and regional legacy issues, distrust among business leaders and limited cooperation at the firm level -- this continues to be the biggest barrier to developing this FX Cluster. Another obstacle was exorbitantly high telecom costs in Macedonia, reputedly the highest per capita in Europe. However, the shared vision of Cluster leaders to deliver professional FX outsourcing, particularly over the Internet, led to a concerted effort by the National Competitiveness Council, donors and local Chambers of Commerce to address this obstacle. By addressing common issues to reduce barriers and increase competitiveness, the Macedonia IT Cluster is setting a compelling example to other Clusters regarding the selection, targeting, marketing and delivery of world-class outsourcing services/products. IT becomes the enabler of economic growth, which cuts across a broad swath of industries and sectors. Simultaneously, it opens opportunities to young people throughout Macedonia, including very low income communities. Any comments or observations would be very much appreciated. Kevin Newman Kevin Newman 134 Old Causeway Rd., Beaufort, NC 28516 Ph +1.252.240.2914 | M +1.336.366.9778 | [EMAIL PROTECTED] Please visit our web site: http://www.patheast.com ------------ This DOT-COM Discussion is funded by USAID's dot-ORG Cooperative Agreement with AED, in partnership with World Resources Institute's Digital Dividend Project, and hosted by GKD. http://www.dot-com-alliance.org and http://www.digitaldividend.org provide more information. To post a message, send it to: <[EMAIL PROTECTED]> To subscribe or unsubscribe, send a message to: <[EMAIL PROTECTED]>. In the 1st line of the message type: subscribe gkd OR type: unsubscribe gkd Archives of previous GKD messages can be found at: <http://www.dot-com-alliance.org/archive.html>
