E-trade For Smes

e-Trade for SMEs ITC E-Trade Bridge Programme Geneva, 2003

Content • Defining e-Trade and Its Purpose • Products and Services to Deliver e-Trade • How We Deliver Value • Our Clients and Partners • How to Get Involved

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Building National Capacities to Help Enterprises Become Management, Export and e-Competent E-Trade is the application of networking technologies to improve international competitiveness by transforming business processes and transacting trade electronically across national borders.

e-Competent

Management • Define the Business of the Enterprise • Build Business Capabilities • Manage the Export Transaction

• Information Rules • New Market Mechanisms • Managing Information and Communications Technology • Business Process Design

Export • • • •

Secure the Order Produce the Order Ship the Order Get Paid 3

Delivering the Promise of e-Trade …to help us adapt and improve…

…of clients and partners

E-Trade Products and Services

Internationally competitive SMEs

…to address the…

…e-needs

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The e-Trade Bridge Programme – Improving Competitiveness through “e” Human and economic development are the primary goals of societies. Trade fosters economic development. Competitive business are engines of trade. “E “can help businesses to be competitive.

E-Stakeholders

Purposes e for business

e as business

e in business

Macro level (Government, policy levels)

Initiatives taken by the macro level institutions concerning resource creation to facilitate the utilization of ICT by SMEs. Policies, strategies concerning the creation of a pool of resources which are needed by the SMES to utilise ICT (human, financial,

Initiatives taken by the macro level to institutionalize businesses dealing in e. National telecommunication companies, national Internet access providers, etc.)

Initiatives taken by the macro level institutions that use e in the management of their businesses. Using ICT to conduct the transactions of macro level institutions (government purchasing, information dissemination, on-line administrative procedures, etc.

Meso level (Trade Support Institutions)

Initiatives taken by the meso level institutions concerning resource allocation to facilitate the utilization of ICT by SMEs. Provision of resources to SMEs (HR training on e from institutions, financial support for e from the finance organizations, etc.)

Micro level (SMEs)

Initiatives taken by the SMEs concerning resource acquisition to facilitate the utilization of ICT. Measures by SMEs to facilitate a paradigm shift enabling ICT usage

Initiatives by meso level institutions in the e-industry. Enterprises whose businesses are enabled by ICT (ISPs, web designers, solution providers, portal managers, etc.)

Initiatives by meso level institutions that use e to conduct their businesses. Using ICT to produce and market products and services (training on-line, selling equipment on-line, on-line financing, etc.)

Initiatives by SMES to utilize ICT in to manage their businesses. Digitization of management (planning, execution and control of the resources of a business) and/or business processes (production and marketing).

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Products and Services to Deliver e-Trade: Defining “e” Needs Companies export, not countries. For countries to improve their international trade performance they must make it easy for small and medium sized enterprises (SMEs) to trade more effectively and efficiently by using information and communication technology and by developing new trade sectors based on ICT.

“e” as a business

Data processing, ICT hardware and software, web hosting companies

“e” for business

Using ICT as a means to deliver value to clients

“e” in business

Using “e” in the business to improve business processes and transact trade 6

Products and Services to Deliver e-Trade: Addressing “e” Needs A tool kit of e-Trade resources to build the capacities of national governments (macro level) and trade support institutions (meso level) to improve the e-trade competencies of enterprise managers 1. Software tools to help trade advisers diagnose and solve SME management, export and e-readiness challenges

2. Training events and Awareness Raising Seminars

3. Training Materials and Learning Resources 4. Information Products and Country Market Intelligence

5. Consulting and Advisory Services

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1 Software Tools for Trade Trainers and Advisers Diagnosing the Issues:

Addressing the Issues:

E-Opportunity Assessment – to determine how ICT can be applied to improve the overall effectiveness and efficiency of the organization

Verifying Business Strategy – a tool for researching buyers and competitors on the Internet for the purpose of verifying the strategy of the enterprise

Export Potential- The Export Potential Assessment Tool is a decision support system which helps the consultant examine the export potential of an enterprise in detail. It helps the consultant identify weaknesses in the following main areas: motivation for exporting, export strategy, capabilities for exporting, international transactions. NEEDSME – a decision-support software that helps trainers and consultants to assess the effectiveness and efficiency of an enterprise. The NEEDSME report summarizes the responses in a structured way and provides pointers in the areas which require strengthening.

Designing Web-based Promotions – a tool for designing promotions on the web Purchasing and Expediting – a tool for finding suppliers on the web PLANSME – this software tool guides the user through clearly identified stages towards the completion of a strategic business plan.

DEMANDSME – this software tool and questionnaire-generator complements NEEDSME by enabling consultants to establish the willingness of respondents to pay for training programmes at the individual and aggregate levels (e.g. industry sector demand). 8

2 Training Events and Awareness Seminars • e-Trade Bridge Kick-Off Meeting This two to three day event provides an ideal forum for public and private sector stakeholders to develop a shared national e-trade agenda and action plan by raising awareness and fostering the creation of an e-trade support network.

• National e-Trade Strategy Training A two-three day course to help national export strategy makers design effective national strategies to maximize the benefits of e-facilitated trade.

• Training Programme for Trade Trainers and Advisers This 6-module training programme gives prospective trade trainers and counsellors the skills they need to design, deliver and manage trade training and counselling interventions for SMEs. It is used in conjunction with the Business Management System (BMS) training materials and software tools to give trainers and advisers the in-depth skill and knowledge to improve the trade performance of SMEs. 9

3 Training Materials and Learning Resources Introduction to the Business Management System (BMS) A short overview of ITC’s proprietary trade training system which addresses the issues of enterprise development and trade development in one learning platform to improve skills in international management, the export transaction and the application of information and communications technology (ICT).

Building Marketing and Production Capabilities A 6 module training program based on the Business Management System addressing the need to select and manage marketing and production tasks critical to the success of the enterprise.

Managing the Export Transaction A collection of 8 training modules covering the tasks and activities of the export transaction cycle: getting an export order, fulfilling an export order and getting paid.

Winning with the Web (WWW) SME Case Studies A case study collection to illustrate how ICT is being used by manufacturing and service firms in developing countries for use by SME trainers and counsellors. 10

4 Information Products and Country Market Intelligence Country e-Preparedness Reports In-depth published report assessing the e-potential of countries and regions. The report identifies the e-trade assets and liabilities of the country and draws up a list of the stakeholders offering e-trade resources to companies.

e-Business Resource DVD and Book An extensive desk reference with thousands of live web links for trainers, researchers, strategy designers and SME managers interested in e-trade.

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5 Consulting and Advisory Services •

Project and Programme Design – consulting and advisory services to help partner countries design effective human resource development programmes to build national trade training and counselling capacities.

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Creating and Strengthening Trade Training Institutions – advisory services to create sustainable institutions to deliver enterprise management development curricula which will improve the skills of SME managers.

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Building Networks of Exporters – advisory services to help foster the creation of networks of exporters as a means to improve their market power and benefit from government supported enterprise and export development programmes.

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How We Deliver Value The ITC “product-network approach” is based upon four pillars: •

Develop generic products and services to meet global trade challenges of SMEs (i.e. broad based demand and identified gap in provision)

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Disseminate tools through partnership networks to reach SMEs (e.g. lower transaction costs)

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Adapt tools at the country and sector levels to take account of specific needs (e.g. products and markets)

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Refine and disseminate the adapted tools to reach a wider audience (i.e.. harvesting investment) This is an iterative process and one which makes our country partners full owners of the resulting trade development solutions. 13

Our Energies Are Focused on Securing and Allocating Resources to Achieve Improved Competitiveness of SMEs… The primary goal of the e-Trade Bridge for SMEs is to ensure that information and communication technology (ICT) is used effectively to improve the international competitiveness of SMEs in developing countries. Networks and Relationships

Human

SME

Information

Financial and Physical Assets 14

…by Working through our Clients and Partners International Development Agencies: UNDP, World Bank/IFC, UNCTAD, WTO and others

Donors: Public and Private Sector donors who finance project work in countries and regions (e.g. often governments)

SME Consultants and Technical Partners: academic institutions, consultants, trainers and experts, esolution providers, NGOs National governments: Ministries of Trade, Commerce and Communications

Trade Support Institutions: Chambers of Commerce, Trade Promotion Organizations, SME Development Agencies, Trade Training Institutions, Trade Associations 15

We’re Putting “e” to Work… … in over 30 countries around the globe Bolivia Ecuador Costa Rica El Salvador Kenya Uganda Turkey Romania Kazakhstan Uzbekistan China India Mongolia Barbados Nepal Vietnam Trinidad and Tobago Republic of South Africa Philippines Honduras Kyrgyzstan…..

• Cameroon - e-trade training for women entrepreneurs • Turkey – training of SME trade advisers • Philippines – establishment of regional trade training hub through ATIFTAP • Central America – establishment of regional trade training hub COMPITE • Tanzania – development of academic level trade training programme with CIBDS • Vietnam - National e-Trade Strategy Training workshop, e-Trade Bridge Kick-Off …and over 15 country preparedness reports 16

How to Get Involved Whether you are an SME manager, a technical partner or a financing agency, there is scope for involvement right across the board. We want to hear from you. •

Consultants, Trainers and Technical Partners: tools, skills or knowledge to help SMEs become management, export and e-competent

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Donors: finance to help us continue our work and fulfil your own strategic objectives

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Developing Country governments and Trade Support Institutions: Can we work to jointly prepare a project document for funding?

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International Development Agencies: Can we act as a sub-contractor under an existing programme or develop a new programme with you?

The best way to benefit is to get a project underway in your own country or request some of the e-Trade tools which have already been developed through the e-Trade Bridge Programme or elsewhere in ITC. 17

To help us put “e” to work, contact: Enterprise Management Development Section (EMDS) International Trade Centre Palais des Nations 54-56 Rue de Montbrillant Geneva 10 Switzerland Mr. Osman Ataç, Chief Tel : 41 22 7300199 e-mail : [email protected]

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