Industry life strategy

  • 58 views
Uploaded on

 

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
58
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
6
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. STRATEGY FRAMEWORK FOR SUSTAINABLE ECONOMIC AND INDUSTRY DEVELOPMENT (AND FOR DETERMINING AND PRIORITISING THE ROLE FOR GOVERNMENT) Corporate Strategy and Policy PIRSA, Govt. of South Australia Notes
  • 2. Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program – determining the appropriate contribution from Government PIRSA Program – prioritising PIRSA intervention PIRSA Input – recovering fair costs for PIRSA interventions Notes
  • 3. Outcome: Getting to Accelerated Wealth Generation Inter relationship between PIRSA outcomes PIRSA primary focus Economic Growth Outcome 1 with industry partners Sustainable Economic Development Sustainable Ecosystems Cross Community/Govt agenda Outcome 2/3 PIRSA secondary focus Organisational Health and ‘Footprint’ Outcome 5 Key enabler Prosperous Regional Communities Outcome 4 Notes
  • 4. Each industry requires its own vision and growth targets Typical industry lifecycle characteristics GROWTH High growth Slow growth Product innovation Margin pressures Quality standardisation Competition for market share New entrants Product and process innovation New growth Regeneration Fragmented Embryonic companies Industry concentration Market uncertainty Decline Declining demand and investment Immature distribution channels High competition for markets Unsustainable margins Exodus of producers and/or concentration of industry Emerging Growth Mature Product/service substitution TIME Notes
  • 5. Conditions for International Competitiveness Porter’s Diamond Firm Strategy, Structure and Rivalry Factor Conditions International Competitiveness Demand Conditions Related and Supporting Industries Notes
  • 6. STRATEGY: Getting to Sustainable International Competitiveness Economic development enhancements Porter’s Diamond Factor Conditions Demand Conditions Industry strategy and structure (Resource Capacity) Productivity development enhancements Develop a ready access to knowledge, skilled workforce, physical resources, capital and infrastructure Land, water, resources Firm and industry, rivalry and structure Develop a discerning domestic market Leveraging domestic characteristics into exports Consumer affairs Roads, ports, rail Courses, graduates Develop an industry operating environment that encourages investment and responsiveness to markets Taxes and charges Management resource base Accounting rules Research and development Financial reporting rules Human capital Markets for „risk‟ capital Reward systems Market access development enhancements Maintain the sustainable integrity of the natural and social environment Bio-security Clean and green Disease-free status Bio-diversity Access to international markets and market intelligence Business rules and regulations Firm rivalry and dynamism Develop a business culture that encourages entrepreneurship, collaboration and innovation Positive rewards for entrepreneurship Competitive industry structure (NCP) Appropriate mix of rivalry and collaboration between firms Related and supporting industries Build stronger integration and cost efficiencies with operations of complementary industries Development of stronger ties between businesses associated with the value chain Reduce transaction costs between industries Cluster/network formation Integrate demand chains Assist companies make informed choices Market access Notes
  • 7. Sectors need to determine their own strategic positioning Typical growth drivers within the industry lifecycle Strategy and Structure GROWTH Strategy and Structure Factor Related Industries Demand Strategy and Structure Factor Demand Related Industries Innovation and Investment driven Strategy and Structure Factor Factor Demand Related Industries Demand Related Industries Regeneration Re-innovation driven Stagnation Decline Resource driven Emerging Growth Mature TIME Notes
  • 8. The Role Government and ‘Chance’ Play in building International Competitiveness Firm Strategy, Structure and Rivalry Government intervention Factor Conditions International Competitiveness Demand Conditions Chance Related and Supporting Industries Notes
  • 9. PIRSA PROGRAMS: Getting to Industry Self-Mobilisation STRATEGIES INDIRECT MARKET INTERVENTION TYPES OF GOVERNMENT INTERVENTION Factor conditions (Resource capacity) Develop a ready access to knowledge, skillled workforce, physical resources, capital and infrastructure Develop an industry operating environment that encourages investment and responsiveness to markets Develop a business culture that encourages entrepreneurship, collaboration and innovation Demand factors Develop a discerning domestic market Access to international markets and market intelligence Related and supporting industries Build stronger integration and cost efficiencies with operations of complementary industries Persuasion/advice Market creation Subsidies/taxes Training and education services Natural resource-based infrastructure project services Human and Social Infrastructure Research Research and scientific services Trade and market services Portfolio program management services Resource regulation planning services Legislation and compliance DIRECT MARKET INTERVENTION Maintain the sustainable integrity of the natural and social environment Firm and industry, rivalry and structure Compliance services Licensing services Research and scientific services Education and training Information distribution Data and information products and services Facilitation and planning services Physical Infrastructure Developing assets Incident Response Incident response services Natural resourcebased infrastructure project services Notes
  • 10. PIRSA Programs: Getting to optimal market benefits Prioritising PIRSA intervention SIGNIFICANCE OF MARKET FAILURE Severe Slight None BENEFIT COST RATIO High Medium Low Clear role for PIRSA Potential role for PIRSA Clear role for private sector Potential role for private sector PIRSA role defined by other policy objectives Notes
  • 11. PIRSA inputs: Getting to Fair cost Recovery Recovering a fair cost for PIRSA programs WHO CAPTURES THE BENEFIT Public Combination Private e.g. Community e.g. Industry & Community e.g. Firms/individuals Mix of mechanisms Fees and charges EFFICIENCY OF CHARGING Identity High Attribution Mechanism Levy Medium Low Fully tax-payer funded Notes
  • 12. Bringing it together – a framework for strategic thinking and decision making Step Participants State Government policy orientation PIRSA policy questions Analytical tool Outcome Industry, Government, Universities etc. “Getting to accelerated wealth generation” What are the appropriate industry growth targets? Lifecycle model Industry scorecards Monash model Strategy Industry, Government, Universities etc. “Getting to sustainable international competitiveness” What is the strategy mix to build international competitiveness? Porter diamond Customer research SWOT/PEST analysis State Government “Getting to industry self mobilisation” What is the appropriate contribution from Government? Market failure assessments Government directions Accountability framework PIRSA Groups “Getting to optimal market benefits” What are the priorities for PIRSA‟s intervention? Market failure analysis Cost benefit analysis Risk assessment Program evaluation Ministerial directions PIRSA Groups “Getting to fair cost recovery” What is a fair level of cost recovery? Public/private benefit analysis Government Programs PIRSA Programs PIRSA input Notes
  • 13. Acknowledgements and Contacts: Corporate Strategy and Policy Branch of PIRSA provides professional economic analyses to assist decision makers within Government. These services typically entail the application of standard economic tools to industry or natural resource problems, analysis of the resultant information and the development of strategy options. These analyses can be done as an input into broader PIRSA or Government submissions or inquiries, such as to PIRSA Executive, Cabinet or the Productivity Commission. Analyses are also done by Corporate Strategy & Policy instigating economic research into issues of strategic importance to the State. These analyses seek to ensure decisions are made by Government in the full knowledge of their economic implications for South Australian primary industries and the State economy. Contact Us: Location: 17h Floor, 25 Grenfell Street,ADELAIDE, South Australia 5000. Phone: 08 8226 0516 (Tim Mares) E-Mail: tim.mares@sa.gov.au