Transcript งานนำเสนอ PowerPoint

Futurizing
Thailand
Suvit Maesincee
April 10, 2003
Futurizing Thailand
Looking
Backward
The New Thailand At
Competitive
the
Paradigm
Crossroad
The New
Competitive
Landscape
Futurizing Thailand
Looking
Backward
The New Thailand At
Competitive
the
Paradigm
Crossroad
The New
Competitive
Landscape
Looking Backward: Was There a New Economy?
The First New Economy
1789-1815
Industrial revolution
The Second New Economy
Late 1840sEarly 1870
The great railroad expansion
The Third New Economy
1890-1920s
Basic technology growth of
telephony and electrification
The Fourth New Economy
After WWII
-1993
Massive industrialization and
economic reconstruction
Source: Roger Cass
The Specialization and Integration of Firms
Make It Possible to Increase Aggregate Wealth
• 51 of the 100 Largest Economies in the World are
Now Corporations
--General Motors is bigger than Norway
--Ford is larger than Saudi Arabia
--Japanese Mitsui is bigger than Ireland and New
Zealand combined
• One Third of the World Trade Now Comprises
Inter-company Transactions
• While Countries are Fragmented and Getting Smaller,
Corporations Are Consolidating and Getting Bigger
They Were Based on the Mass Production
Paradigm
New
market
offerings
Long product
development
cycles
Long
product
cycles
Stable
demand
Mass
production
process
Low cost,
consistent
quality,
standardized
products
Serving
homogeneous
market
Critical Driver
• Scale
• Standardization
• Replication
• Efficiency
• Hierarchy
The Consequence
Tragedy of
the Common
Mass Market
Paradigm
Scale Driven
Economy
Over
Investment
Over
Capacity
Industry Rationalization and The Emergence of
Global Deflation
Tragedy of
the Common
Over
Investment
Mass Market
Paradigm
Hyper
Competition
Scale Driven
Economy
#Transactions
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Over
Capacity
2,074
1,877
2,574
2,663
2,997
3,510
5,848
7,800
7,809
9,278
9,602
Value (in $ billion)
108.2
71.2
96.7
176.4
226.7
356.0
495.0
657.1
1,192.9
1,425.8
1,395.5
Industry
Rationalization
• # of mergers per year in the US has
more than tripled over the past
decade, while the value of those
mergers has risen tenfold
• During 1997-2000, nearly $5 trillion
in mergers took place in the US alone
Futurizing Thailand
Looking
Backward
The New Thailand At
Competitive
the
Paradigm
Crossroad
The New
Competitive
Landscape
Is There a New Economy?
The First New Economy
1789-1815
Industrial Revolution
The Second New Economy
Late 1840s- The Great railroad expansion
Early 1870
The Third New Economy
1890-1920s Basic technology growth of
telephony and electrification
The Fourth New Economy
After WWII
-1993
Massive Industrialization and
Economic Reconstruction
1993-2020
• Communication technology
• Globalization of production
and consumer markets
The Fifth New Economy
Source: Roger Cass
The New Communication Platform
The Evolution of the Mass Media
One To One
One To Many
Many To Many
Industries and Businesses
Are Buzzing With Changes
Writing
• Individuals are interacting
with the media to work
things out
Printing
Telegraph
Time
Telephone
Radio
Television
Fax
Internet
Complexity of Dialog Supported
Source: Forth Generation R&D
• It is about using the media
in an active way, to form
and revise our mental
models
Globalization
Economic Globalization
Cultural Globalization
• Economic globalization results from recent
revolutions in technology, information, trade,
FDI, and MNCs
• Economic life takes place on the global
scale, but human identity remains national
• The emergence of global lifestyles, global
consumers, global products (e.g., Hollywood
movies, pop music, Coca Cola, McDonald’s)
Political Globalization
• A vast array of international and transgovernmental institutions and networks setting
up the international governance structure and
institutional framework
The Major Shifts
Industry Based Economy
Knowledge Based Economy
‘Make and Sell’
‘Goods for Elites’
‘Mass Market’
‘Owning Assets’
‘Corporate Governance’
‘Just in Time’
‘Local Economy’
‘Asymmetry of Information’
‘Economics of Diminishing Returns’
‘Sense and Respond’
‘Goods for Everyone’
‘Markets of One’
‘Gaining Access’
‘Market Governance’
‘Real Time’
‘Global Economy’
‘Democratization of Information’
‘Economics of Increasing Returns’
The Major Changes
The Way We
Communicate
Revolutionary
communication
technology
What We
Believe
What and How
We Know
How we
perceive time
and space
A shift in our
mental
energy
What and
How We Do
How we
organize our
businesses
Changes
our
behavior
How we
structure ourselves
to interact
with others
Source: Consumer Evolution
Value Creation
Industry Economy
Knowledge Economy
Physical
Scarcity
Connectivity
Emotional
Content
Context
Given
Created
Rational
Source: Consumer Evolution
We Are Coping With ‘Nanosecond Culture’
• There are a new patent issued in the US every
Instance
Obsolescence
Infinite
Reach
Intra-Generation
Changes
3 minutes
• One hundred twenty-five new products arrive
in supermarkets every weekday
• Technology has always put us within reach,
anywhere, any time, and in multiple ways
• Most of the radical changes are
‘Intra-Generation Changes’
• We have discovered how to learn as we go
• From uncomfortable with change to
accustomed to big changes
The Art of Living
Emerging Value
Oxygen Bar
Natural Therapy Shop
Exotic Boutique Hotels
Exploring Local-Contemporary designed products
Chinese Boutique
Natural Beauty Treatment
Organic Food Store
Oriental
Cooking/Painting Classes
Zakka Boom
Alternative Therapy
Source: Leo Burnett
Buddhism
Alternative Medicine
People Make Up Their Own Life Stories Instead of
Following Traditional Patterns
The Age of Singularity
% Share of Combined Advertising Spend
81%
65%
66%
Singular
Media
Demographi
c Media
Geographic
Media
Source: McKinsey Quarterly
• Internet
• Cable TV
• Direct mail
• Magazines
• Broadcast TV
• Radio
• Newspaper
• Yellow Pages
The Alternated Consumers
• 68% research online, buy in store
• 54% research in store, buy online
• 47% research by catalog, buy online
• 38% research online, buy over phone
Source: Jupiter Research/NFO, May 2000, American Demographics, Dec 2000
The Adoption Rate Has Been Speeded Up
Time to Mass Market
60
Auto
No. of Years
50
Electricity
40
Phone
VCR
30
TV
Microwave
Radio
20
PC
Cell Phone
WWW
10
0
1860
1880
1900
1920
1940
1960
1980
2000
The Compression of PLC
Revenue
Sales
Profit
Sales
Profit
Time
Futurizing Thailand
Looking
Backward
The New Thailand At
Competitive
the
Paradigm
Crossroad
The New
Competitive
Landscape
Challenges Facing Thailand
HIGH
PERFORMANCE
ECONOMY
Strategic Gap II
“Our Competitive
Position in the
Global Economy”
CURRENT
ECONOMY
Strategic Gap I
“Get out of
the Crisis”
Thailand Has Relatively Outperformed in
Recovering Its Economy From the Crisis
GDP Growth
%
15
2000
2001
2002
10
5
0
Q1/43
Q2/43
Q3/43
Q4/43
Q1/44
Q2/44
Q3/44
Q4/44
South Korea
Thailand
Malaysia
Taiwan
Hong Kong
Q1/45
Singapore
-5
- 10
Source: Ministry of Finance
As Shown By Many Key Indicators….
Mil US$
20,000
Mil US$
Short-term Loans
20,600
18,000
14,545
16,000
14,000
%
80
60
58.0
Q1 2001
20,449
20,420
20,400
13,489 20,200
20,000
19,800
Mil Bht
12,000
Q1 2000
External Public Debt
Q1 2002P
Public Debts/GDP
59.2
40,000
20,055
Sept. 43
Sept.44
Sept.45
International Reserve
38,000
41.7
40
36,000
34,000
20
32,000
0
30,000
2000 2001 2002 2003 2004 2005 2006 2007 2009 2010
Jan. 43
33,154
Jan. 44
Jan. 45
38,500
However, While the First Strategic Gap Gets
Closer and Closer, the Second One Gets Wider
and Wider
Strategic Gap II
“Our Competitive
Position in the
Global Economy”
Strategic Gap I
“Get out of the Crisis”
Can Thailand Compete in the New Competitive
Landscape?
Industry Based
Economy

World Economy




Mass Production
Standardization
Capital Intensive
Economies of Scale
Economies of Scope
Knowledge Based
Economy





Mass Customization
Critical Mass
Knowledge Intensive
Economies of Skills
Economies of Speed

Thai Economy
Resource and
Labor Intensive
 International
Division of Labor
 Investment Driven
?
Our Level of Internationalization
Growth in Import Share
5
US
4
3
2
1
EU
Singapore
0
Japan
-1
Thailand
China
India
Vietnam
Philippines
1
- 1
Malaysia/Indonesia
Growth in Export Share
Source: WTO International Trade Statistics 2001
Our Export Performance
Baht Devaluation
17.1
-9.2
-13.8
Export Volume Index
Export Price Index
Source: Ministry of Finance
q1/02
q1/01
q1/00
q1/99
q1/98
q1/97
q1/96
8.8
Our Major Competitors
Correlation of Structure of Manufacture Export
China
China
Hong Kong
Indonesia South Korea
Malaysia
Philippines
Singapore
Thailand
1
Hong Kong 0.59
1
0.35
0.17
1
South Korea 0.21
0.40
0.10
1
0.17
0.43
0.18
0.73
1
Philippines 0.31
0.51
0.21
0.66
0.82
1
Singapore
0.20
0.36
0.07
0.66
0.74
0.62
1
Thailand
0.57
0.54
0.21
0.52
0.59
0.58
0.70
1
Taiwan
0.35
0.44
0.09
0.64
0.67
0.56
0.81
0.76
Indonesia
Malaysia
Taiwan
Source: Lall et al (1999)
• Lack of Focus
• Lack of
Differentiation
1
Share in World Foods Export
Top Three Share
32.2
Thailand VS. China
32.3
3.1
Netherlands
2.5
2.4
26
France
2.1
1.3 1.4
1980
USA
1980
1990
2000
1990
2000
More for Less
24.9
12.7
Rice World
Market Share
2000
Thailand
10.2
USA
10.0 8.8
Vietnam
India
China
147.9
8.1
Pakistan
_
X = 279.7
$US/Metric Ton
25.8
-15.2
-12.9
-87.8
6.66
-91.4
6.35
4.26
4.25
3.59
Rice
Productivity
3.24
3.19
3.17
2.96
Japan
Vietnam
China
Bangladesh
Indonesia
Philippines
Brazil
2.57
India
Myanmar
Thailand
High
Level of Industry Attractiveness
Thai Manufacturing Sector’s Competitive Position
Cluster I
• Foods • Leather
• Garment •
• Jewelry Electronics
• Autos
• Rubber
• Plastics
• Wood Products • Ceramics & Glass
• Pulp & Paper • Chemicals
• Metals
• Petrochemicals
• Machinery
Low
Cluster II
Cluster III
High
Zooming in the First Cluster
% Local Content
• Frozen Chicken
• Frozen Shrimp
80
60
40
Passenger Car
•Footwear
• Pick Up
•
Fabric,Woven • Apparel
• • Jewelry
20
•
•
Computer Equipment
Electric Appliances
• Precious Stones
1
2
3
4
5
6
7
8
% Export Share
9
10
11
12
13
Competitive Nutcracker: Apparel
18,500
Leaders
Top Three
Italy (2)
16,400
15,600
Hong Kong (3)
Technology
and Design
Design /
differentiation
based
competition
Thailand (11)
15,700
Hong Kong
Italy
Followers
China (1)
Low Cost-based
competition
China
1,044
Low Cost
1,080
1,105
1998
1999
1,259
Differentiation Thailand
Competitive Advantage
1997
2000
High
Level of Industry Attractiveness
Thai Service Sector’s Competitive Position
• Business Services
• Communications
• Environmental
Management
• Distribution
• Financial
Services
• Transports
Low
• Construction &
Engineering
• Education
• Health & Social
• Tourism &Travel
• Recreation, Culture,
Sporting
High
The World Top 15 Tourist Destination
# of Tourist Arrivals(Mil)
75
France
•
60
45
Spain
•
USA
•
Italy
•
China
• UK
30
Russia Canada •
Mexico
• • • Austria
Poland
20
• • • Germany
• Hong• Kong
Hungary • Thailand
• Greece
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
Receipts (Bil.$US)
The World Top 25 Tourist Destination
Growth in # of Tourist Arrivals(%)
40
35
30
25
20
15
10
5
0
-5
• Turkey
Malaysia •
China
Hong Kong
•
•
Italy • Germany
Thailand ••
Mexico
•
Canada
•
Austria
• USA
• France
• •Spain
UK •
-15 -10 -5 0 5 10 15 20 25 30 35 40 45 50
Growth in Receipts (%)
Food
Hong Kong
Soft Adventure
Malaysia
Asia’s Best Cities
Rank
City
1
2
3
4
4
.
.
.
.
12
13
14
15
16
17
Fukuaka
Tokyo
Singapore
Osaka
Taipei
.
.
.
.
Kaohsiung
Chiangmai
Macau
Shanghai
Beijing
Bangkok
Source: Asiaweek, Dec 15, 2000
Country
Japan
Japan
Singapore
Japan
Taiwan
.
.
.
.
Taiwan
Thailand
China
China
China
Thailand
Asia’s Top Brands
Rank
Brand
Category
Origin
1
Singapore Airline
Airline
Singapore
2
Speedo
Apparel
Australia
3
Shangri-La Hotel
Hospitality
Hong Kong
4
5
Lee Kim Kee
Foster’s
Food and Beverage Hong Kong
Alcoholic Beverage Australia
6
Qantas
Airline
Australia
7
Sound Blaster
I/T
Singapore
8
Acer
I/T
Taiwan
9
Star TV
Media
Hong Kong
10
Cathay Pacific
Airline
Hong Kong
11
Mandarin Oriental
Hospitality
Hong Kong
12
Thai Airway
Airline
Thailand
Note: Not include Japan
Source: Paul Temporal
The Silent War
New
market
offerings
Mass Market
Competitive
Paradigm
Short product
development
cycles
Mass
Customization
Competitive
Paradigm
Short
product
cycles
Dynamic
demand
Customization,
customerization,
and personalization
process
Low cost,
high
quality,
customized
products
Serving
heterogeneous/
individual
markets
Creative Industry Landscape
Level of Sophistication
High Tech
Software
R&D
Fashion
Toys and Games
Architecture
Video Games Advertising
Publishing
Design
TV and Radio
Performing Arts
Film
Art
Music
Craft
Low Tech
Low Touch
High Touch
Level of Customization
The Emergence of Creative Industry
Sector
Advertising
Architecture
Art
Craft
Design
Fashion
Film
Music
Performing Arts
Publishing
R&D
Software
Toys and Games
TV and Radio
Video Games
Billion $US, 1999
Global
US
UK
45
40
9
20
140
12
57
70
40
506
545
489
55
195
17
20
17
4
2
50
5
17
25
7
137
243
325
21
82
5
8
2
3
1
27
1
3
6
2
16
21
56
2
8
1
2,240
960
157
The Shortage In the Creative Economy Falls In the
Areas of
• Demand not Supply
• Creativity not Capital
• Entrepreneurs not Professionals
• Time not Space
• Speed not Scale
The Paradigm Lost
Tragedy of
the Common
Mass Market
Competitive
Paradigm
Over
Investment
Scale Driven
Economy
Over
Capacity
Hyper
Competition
Shortage of
Demand
Industry
Rationalization
Paradigm
Lost
Mass
Customization
Competitive
Paradigm
Creativity
Driven
Economy
New
Competitive
Playing Field
Our Current Competitive Position
Strong
Strategic Traps
Weak
Profitless
Growth
Competitive
Position
More
for Less
Ditcher
Low
Competitive
Nutcracker
High
World Market Share
High
Low
Government
Policy effectiveness
CURRENT ISSUES AND CHALLENGES
Low
High
High
Low
Business
Comparative Advantage
Operational efficiency
Low
High
High
Low
Citizen
Innovativeness
Competitive Advantage
Low
High
Productivity
Our Budgeting Constraint
Government Expenditure 1997-2001
Mil Bht
700,000
600,000
500,000
Fixed Expense
400,000
Public Investment
300,000
200,000
100,000
Fiscal Year
0
1997
1998
1999
2000
2001
Our Investment for the Future Are Significantly Low
International Comparison of R&D Investment
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0
Japan Korea
Source: Thailand Economic Monitor, June 2000
USA Taiwan Singapore Malaysia Thailand
We Still Deal With a Wide Manpower Gap in
Science and Technology
Gaps in Science and Technology (At Current Level of Demand)
10,963
1996
7,015
4,520
2001
5,874
180
541
(113) (352)
B. Engineering
B. Science
M.Eng /D. Eng
Source: Lall (1999), Raising Competitiveness in Thai Economy, Country Employment Policy Review, ILO.
MS/DS
...So We Cast Doubt on Our Ability to Compete
Software Industry
High
USA
HR Capabilities
• Number
• Wages
• Skills
India
Germany
China
Indonesia
UK
France
Thailand
Ireland
Philippines
Singapore
Low
Low
High
Entrepreneurial Capabilities
• Number
• Quality
Source: Nasscom 1999
The Catalysts for Future Growth Such As Venture
Capital Have Lagged Behind Its Competitors
Venture Capital Assets Under Management (% of GDP)
3.16
Singapore
Singapore
9.17
HK/China
Hong Kong
Taiwan
USA
USA
South Korea
South Korea
Australia
Vietnam
1994
PR China
Malaysia
Malaysia
Japan
Taiwan
India
Indonesia
Philippines
Philippines
Thailand
1999
Australia
Indonesia
0.10
Thailand
0.21
The Same Is Also True for the Incubator
Businesses
Incubator Growth
Incubator by Region/Country
4,000
1980 1985 1990 1995 2000 2005
1,000
US
E. Europe France Australia Israel
Germany UK
Source: Incubators
Japan
Africa
India Canada Scan- Thailand
dinavia
Our ICT
Telecommunications Productivity
Lines/
Employee
64
Labor
Productivity
34-51
TFP
31-57
X
Network
Utilization
53-79
+
Capital
Productivity
30-60
X
Subscribed lines/
Unit of Investment
56-76
Index of US (1999) =100; Thai data 1999
Source: =McKinsey
Installed lines/
Unit of Investment
73-100
X
Subscription
Rate
76
Thailand’s Current Technology Position
Technology Achievement Index
Leader
Potential
Leader
Dynamic
Adopter
Finland
US
Sweden
Japan
Korea
Netherlands
UK
Canada
Australia
Singapore
Germany
Norway
Ireland
Belgium
New Zealand
Austria
France
Israel
Spain
Italy
Czech
Hungary
Slovenia
HK
Slovakia
Greece
Bulgaria
Poland
Malaysia
Croatia
Mexico
Cyprus
Argentina
Romania
Costa Rica
Chile
Uruguay
South Africa
Thailand
Panama
Brazil
Philippines
Bolivia
China
Columbia
Peru
Jamaica
Iran
Indonesia
India
Sri Lanka
Algeria
Egypt
Maginalized
Pakistan
Senegal
Nicaragua
Ghana
Kenya
Sudan
Tanzania
Thailand At the Crossroad
• Singapore
Mature/Stable
Market Economy
First Sphere
• Vietnam
Stagnant/Chaotic
Economy
• South Korea
Second Sphere
Third Sphere
Political Disorder
Source: Tanaka Akihiko
•Thailand
• Pakistan
Mature/Stable
Liberal Democracy
Futurizing Thailand
Looking
Backward
The New Thailand At
Competitive
the
Paradigm
Crossroad
The New
Competitive
Landscape
From a Ditch to a Niche
Strong
Competitive
Position
Nicher
Ditcher
Weak
Low
World Market Share
High
Four Strategic Thrusts
Cultural Based
Competition
Value Based
Transformation
Global Local
Integration
Cluster Based
Configuration
Cultural Based
Competition
Value Based
Transformation
Strategic
Thrusts
Cluster Based
Configuration
Global Local
Integration
Globalization is turning the world into a gigantic
supermarket where nations are nothing more than
products on the shelf, frantically trying to attract the
attention of each passing consumer
Source: Simon Anholt
Culture as the Root of Competency
Country
Cultural Orientation
Germany
Engineering Culture
France
Chic Culture
Italy
Sexy Culture
Britain
Heritage Culture
Japan
Technology Culture
USA
Youth Culture
Thailand
Human Touch
Our Flagship Products
Finland
Mobile Phone
Switzerland
Pharmaceuticals; Tourism; Foods; Watches
Ireland
Wireless Technology
Scotland
Whisky; Biotechnology; Energy
India
Software; Talents
Singapore
Professional Services; Regional Financial Center
Thailand
Source: Moving the Nation by Dr. Suvit Maesincee
Potential Global Niches
Craftsmanship
Skills
Level of Sophistication
High Tech

Cultural
Influence
Software

Auto industry
Delicate Living
Flavorful Sense
Peace of Mind


Fashion
Foods

Tourism
Low Tech
Low Touch
High Touch
Level of Customization
Cultural Based
Competition
Value Based
Transformation
Strategic
Thrusts
Cluster Based
Configuration
Global Local
Integration
A Nation Orientating Toward a Knowledge Driven
Platform Will Consider Outsourcing Much of Its
Capital Intensive Production Related Processes
R&D
Production
Marketing
...And Freeing up Capital to Focus on the
Parts of Their Industries That Can Be Globally
Differentiated
Low Cost Leaders
R&D
Production
Marketing
Differentiators
Knowledge based companies will focus on building brand, capturing
‘ownership’ of the customer, end market leadership and investing in
knowledge-based core competencies
Value Created
Profit
Dollar
Price
Cost
Value
Profit Increases With Value Created
Example: Software Industry Value Created
Less for More
More for More
Conceptualization
More for Less
Requirement Analysis
Thai
High-Level Design
Low-Level Design
Israel
Coding
Ireland
Testing and Support
Source: Software Park
India
Export
Local
Consumption
Example: Israel’s Agricultural Industry
1948-1970
Self Sufficient
Agricultural Output
‘000 ton
1970-1980
Export Agricultural
Products
Productivity
Improvement
1980 up
Export Know-How
and
Technologies
Value added
Source:
1967
1982
Vegetable
70
165
6%
Citrus fruits
98
160
3%
Other fruits
30
80
7%
Field crops
30
60
5%
Beef
10
40
10%
Israel Ministry of Agriculture and Rural Development
Growth
Upgrading Our Entrepreneurs From Being
Subcontractors to Being Brand-Owners...
Thai Fashion Design
Fashion Business Value System
Local
75-90%
Karita
Toffy Boutique
50-75%
Global
Senada
Apparel Avenue
Fly Now
Pena Group
Dapper
Regional
Market
X-ACT
35-40%
10-35%
Heart & Mind
OEM
ODM
OBM
OEM
ODM
OBM
SHOP BRAND
Product
To Reap More Value Added and Growth Potentials
Transforming from Investment Driven to
Knowledge Driven Platform
Investment Driven
Platform
Knowledge Driven
Platform
Constructive
Environment
Financial
Capital
Wealth
Investment
Job
Creation
Physical infrastructure
as an enabler
Wealth
Talents
Value
Created
ICT
as an enabler
Cultural Based
Competition
Value Based
Transformation
Strategic
Thrusts
Cluster Based
Configuration
Global Local
Integration
A Cluster Provides a Conducive Platform for the
Creation, Diffusion, Adoption and Interaction of
Innovation
Knowledge Driven Platform
Innovation Cycle
Creation
Clustering
Development
“Lift-off”
Diffusion
Interaction
Extending
Adoption
Emerging
Local
Rural
Enterprises
Family
Enterprises
International National
Process Related
Most of Thai Industry Clusters Are Still in the
Emerging Stage
Industrial Districts
Traditional
Subcontractors
Medium Sized
Niche Enterprises
SME Networks
Global
Subcontractors
Local
National
International
Market Related
Source: Bianchi and Tommaso
Key Success Factors For Clustering Formation
Interactivity
Connectivity
Social
Capital
Physical
Capital
Clustering
Co-Prosperity
Formation
Human
Capital
Creativity
Financial
Capital
Liquidity
Making Thailand Globally Attractive
Characteristics
Old
New
Labor
Low cost, unskilled
Quality, Higher skilled
Tax Climate
Low tax, low service
Modest tax, high service
Incentives
Least cost production,
cheap land and labor
Value-added adaptable
labor force, professionals
Amenities
Housing and
Transportation
Culture, recreation,
museums, shopping, airport
Schools
Availability
Quality Schools
Higher Education
Not Key
Quality schools and
research facilities
Regulation
Minimum
Compatible quality of life
and business flexibility
Energy
Cost/Availability
Dependability/reliability
Communication
Assumed
Technology access
Business
Aggressive chamber
of commerce
Partnership
Source: Kotler, 1999
Cultural Based
Competition
Value Based
Transformation
Strategic
Thrusts
Cluster Based
Configuration
Global Local
Integration
Leveraging Geographical Collaborative Network
Interregional
Bonds
Local
Links
Global
Reaches
Domestic
Ties
The New Geopolitical Equation
• China
• India
New
Triad
• Russia
• Europe
• US
• Japan
Thailand
Existing
Triad
• China
• Japan
• Korea
Regional Development Strategy
Greater Maklong Sub-region
Northern Italy
Key Features
Emilia-Romagna
• Population 4 millions
• 90,000 SMEs covering 40%
of employment
• Stand alone and subcontractors
SMEs
• Supporting infrastructure:
transports, research center,
financial institutes, university,
laboratories
• Gain advantages of economies of
specialization
• Export-oriented and has capacity
to respond to market changes
and compete globally
Source :Marketing of the Nations
Northern Network of Service Providers for SME
CCC
FTI
ATSME
NOHMEX
IPC1
NNSPSME
NSTDA
CMU
Service
Provided
Information
• Investment Advisory
Services
Marketing
• R&D for SME
• Market Information
• Product Design
• Trade Fair
Training
• Business
Management
Training
Finance
• Financial Advisory Service
• Financial Support Service
Local Links Global Reaches
Specialization
Intra-Community
Self-Sufficiency
Inter-Community
Trade
Community-Regional
Trade
Community-Global
Trade
Surplus
Social
Cohesion




Sufficiency
Community Building
Cultural Identity
Family Value
International
Competitiveness




Efficiency
Cost effective
Productivity
Innovation
Final Word
Higher Education Agenda
New Direction of Investment in
Human and Social Capital
Capital
Wealth
JobWealth
Cycle
The Old Direction
Investment
Human
Capital
Human
Relations
Job
Social
Capital Learning
Conducive
Environment
Talent
Knowledge
Wealth
Cycle
Value
Created
A New Direction
Justice and
Social Equity
Wealth
• Labors and managers are fungible
• Viewed as input costs
• General education
• Source of competitive advantage
• Source of increasing return on inv.
• Education as specialized, focused
• Paternalistic
• Hierarchical organizations
• Individual oriented
• Trust oriented
• Interdependent
• Meritocratic
• Team oriented
• Linear learning, results form strategy • System thinking, results form
choices and organizational design
mental models
(single loop learning)
• Integrative, interdisciplinary
• Reductionist strategies
approaches
• Technical and compartmentalized
• Team oriented
• Create wealth through innovation
• Redistribute finite wealth
and distribute to most
• Law and regulatory framework as
productive
constraints
• Informal producers are marginalized people
• Law and regulatory framework as
enabling investment in
innovation
• Informal producers increasingly
integrated
Source: Modified from Plowing the Sea
Strategic Focus
R&D
Production
Marketing
Strategic Coverage
Specialization
Intra-Community
Self-Sufficiency
Inter-Community
Trade
Community-Regional
Trade
Community-Global
Trade
Surplus
Social
Cohesion




Sufficiency
Community Building
Cultural Identity
Family Value
International
Competitiveness




Efficiency
Cost effective
Productivity
Innovation
Innovate or Die