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    • JournalManager Training Programme of the German Federal Ministry of Economics and TechnologyFit for Partnership with Germany Issue 1 I 2013ENGLISHIn Focus:the Health SectorA Story of Lasting SuccessThe Russian PresidentialProgramme celebrates its15-year anniversaryPage 28‘Fit for Business with China’Programme successfullylaunched in Beijing and JiangsuPage 5
    • 2 JOURNAL 1 I 2013 3Dear Friends of the Manager Training Programme!IN FOCUS: THE HEALTH SECTOR Page 34CONTENT EDITORIALIMPRINTJournal‘Fit for Partnership with Germany’Manager Training Programme of the German Federal Ministryof Economics and Technology (BMWi)Issue 1/2013Publisher: Deutsche Gesellschaft für InternationaleZusammenarbeit (GIZ) GmbHManager Training Programme of the BMWiReimut Düring, Head of the Manager Training Programme of the BMWiEmail: mp-pr@giz.deInternet: www.giz.de/gc21/mpResponsible party: Christina Otto, Daniel StrubeEditorial team: Axel Wappler (responsible party), Dr Gerd Schimansky-Geier,Jan Löcher, Daniel Strube, Natalia Astrin, Jan Dimog (Diamond media GmbH)Layout: Diamond media GmbH, Miria de VogtPhoto credits: istockphoto.com, fotolia, dreamstime, GIZPublication frequency: twice a yearDate of publication of the previous issue: April 2013Editorial deadline for the next issue: July 15, 2013All rights reserved. Reprints – also of extracts – only with express permission inadvance. While every care has been taken, no liability is assumed for the content.The cartographic presentations do not do not imply any recognition ofinternational boundaries or regions.Funded by the German Federal Ministry of Economics and Technology (BMWi).ISSN 2195-8718EDITORIAL AND PUBLICATION DETAILS 3NEWS 4-9Alumna Meets with German EconomicsMinister Philipp Rösler 4Honoured in Moscow 4Successful Launch of the ‘Fit forBusiness with China’ Programme 5Continuing the Programme in aDifficult Environment 6Manager Training with Azerbaijanto Continue 6Setting the Stage for Future Business 7Chair of GIZ’s Management BoardMeets Alumni and Minister 7Uzbekistan and Germany IntensifyTrade Cooperation 8Cooperation with Belarus Extended 9GERMANY 10-23Russian Farmers inSchleswig-Holstein 10Modern Mining Technology in Action 12Raw Materials Partnerships 13Executives from Azerbaijan inthe Capital of Saxony 14Knowledge Gained from GermanExperience in Personnel Management 15Turning Waste into Energy 16Medium Business Sector goes India 18German-Indian Round Table (GIRT) 19Pilot Group: Energy Efficiency inIndustrial Companies 20Working Meeting with GIZ, BMWiand Training Centres 22PARTNER COUNTRIES 24-33Strengthening German-UkrainianCooperation 24Opportunities for Growth along the Volga 26‘Recognising the Signs of Change’:Interview with Dmitry Ovodenko 27A Story of Lasting Success 28‘Beneficial for Both Sides’:Interview with Andrei Fedorov 29Day of German Business inTurkmenistan 31Training Executives fromRegional Economic Administrationsin Ukraine 32IN FOCUS 34-45The Health Sector: Health –An Export Boom 34Managers from Six Countries withAbundant Team Spirit 36Healthcare Industry Trade Fairs inManager Training ProgrammePartner Countries 38International Exchange on HealthManagement 40Insight into the GermanHealthcare System 41Partners with Commitment 42Health Sector – Vitamins for theExport Business 43Medical Technology: GermanCompanies Show Off Their Strengths 44Alumni 46-56‘World Café’ in Almaty 46Chinese Alumni Conference in Wuhan 48The Long-standing Partnership:Germany – Mongolia 50Annual International AlumniConference in Kyiv 52Contact Forum in Minsk –New Opportunities for Cooperation 54Ten Years of Alumni Work in Russia 55Contact Forum for Alumnifrom Moldova 56EVENTS 49May–November 2013 49SUCCESSFUL PARTICIPANTS 57-61Dr Stefan Ivanov: German-Russian JointVenture Established on the Market 57Genghong Zhu: Focus on Qualityand Innovative Products 58Total Quality Management 59Bachodir Ibragimov: Paving theWay to Foreign Markets 60Ulan Muhamed:Seizing Opportunities 61SPECIALISED TOPICS 62-63Forms of International Cooperation 62Competitive Edge through InnovationManagement 63GIZ CONTACT INFORMATION 64You are now looking at the second edition of the inter-national journal on the BMWi Manager Training Pro-gramme (MP). The international character of the MPhas been particularly evident since the journal’s relaunchsix months ago. For the first time, it did not just coveractivities and achievements in one partner country or re-gion; it covered all partner countries. We are all the morepleased with the warm welcome and positive responsereceived in response to the journal. Along with its con-tent, readers were satisfied with the journal’s layout andthe fact that it was divided into chapters. I would like tothank all our readers who gave us feedback on the journal; we are happy to receive more.You can help us to make the journal even more reader friendly.This time, our area of focus is the health sector. The growth potential of this indus-try of the future can be discerned worldwide: an increasing global population, growingdemand for health services in emerging countries and demographic ageing are makingmedical technology, pharmaceutical and biotechnology into one of the biggest growthsectors around. With its exports-intensive companies, the German health sector holdsan advantage in this industry. They offer innovative solutions that are in demand onglobal markets. Small and medium-sized enterprises often play a prominent role.We place special emphasis on our partner country Russia. A little over 15 years ago,the ‘Presidential Programme’ was launched to train executives for the Russian economy.Shortly afterwards, the German-Russian Manager Training Programme was initiated:this was when today’s MP was born. This year is also the tenth anniversary of the be-ginning of our alumni activities in Russia. This is reason enough for us to honour theanniversary in this journal. We look at the awards given to four GIZ colleagues in Mos-cow last autumn as an acknowledgment of our commitment and also an incentive tocontinue successful cooperation with all our partners, now spanning fourteen countries.The chapter on Germany is more extensive this time. Due to your feedback we knowthat this chapter is of particular interest to our readers. Reports on alumni activities, ourpartner countries and successful participants make up the rest of this edition.I hope you enjoy this edition as much as the last and that it is an interesting read!Reimut Düring
    • NEWS NEWS4 JOURNAL 1 I 2013 5Russian Minister of EconomicDevelopment Honours GIZ Staff.Honoured inMoscowMoscow. A great privilege for GIZ: At afunction celebrating 15 years of the Rus-sian Presidential Programme – Germanycontributes to this programme throughthe Manager Training Programme ofthe Federal Ministry of Economics andTechnology – three current members andone former member of GIZ staff werehonoured for their years of hard work inRussia. Dr Gerd Schimansky-Geier, Isol-de Heinz, Vladimir Bogdanov and GuidoReinsch received the Russian Minister ofEconomic Development’s Certificate ofAppreciation on 2 November 2012. Dep-uty Minister Sergei Belyakov presentedthe award at the Russian Academy of Eco-nomics.‘We are delighted to receive this award.We see it as recognition of the 15 yearsof German commitment to the RussianPresidential Programme. This awardequally acknowledges both our colleaguesin Moscow and in Bonn who worked onthe Programme,’ said Isolde Heinz, GIZ’sproject manager in Moscow, after the cer-tificate had been awarded. Guido Reinsch,GIZ’s project manager in Bonn, added:‘However, the biggest award is the successof the Programme: bilateral trade volumeincreased by well over a billion – an im-pressive figure!’Guido Reinsch (left), Isolde Heinz andVladimir Bogdanov (right) are presented theCertificate of Appreciation by the RussianDeputy Economy Minister Sergei Belyakov.Successful Launch of the‘Fit for Business with China’ProgrammeBeijing/Jiangsu. The Chinese Govern-ment invited executives from Germanfirms to attend the first two-week train-ing programme in China organised aspart of the German-Chinese ManagerTraining Programme. The ‘Fit for Busi-ness with China’ pilot programme tookplace from 3 to 17 November 2012 as acollaborative effort between the Chinesepartner, the China Center for Promo-tion of SME Development (ProSME),and GIZ. The programme is based on abilateral agreement between the GermanFederal Ministry of Economics and Tech-nology (BMWi) and China’s Ministryfor Industry and Information Technol-ogy on expanding the German-ChineseManager Training Programme by addinga component for training executives ofGerman firms in China.Opportunities in ChinaA total of eleven executives from Germancompanies in the mechanical engineering,trade and service branches took advantageof the opportunity to spend two weeks inBeijing and the east coast province of Ji-angsu learning about the market opportu-nities, corporate culture and business re-lationships in the second largest domesticeconomy in the world. It was also a chanceto establish initial contact with potentialChinese partners. A successful combina-tion of specialist seminars and companyvisits to Chinese and German firms pro-vided participants with extensive insightinto business life in China.The specialist seminars covered topicssuch as industry clusters in China and theeconomic development zones in Taicangand Lianyungang, gave German partici-pants the opportunity to obtain first-handinformation and discuss pertinent topicswith Chinese experts.Company visits and contact forumAmong the on-site firm visits, Guodi-an United Power Technology Co. Ltd.stood out. The high-tech company fromLianyungang offers solutions for windenergy systems and focuses on the ‘greenenergy branch’. It offered German partici-pants a comprehensive look at productionand marketing. In addition to Chinesefirms, German companies with operationsin China, such as Trumpf, Schaeffler, Kro-nes and Henkel, also shared their experi-ence with and approaches to starting andexpanding business activities in China.German participants enjoyed many op-portunities to network, initiating new orGerman entrepreneursspent two weeks as guestsin Beijing and the provinceof Jiangsu networking withChinese firms.Executives from German enterprises visit the high-tech companyGuodian United Power Technology Co. Ltd in Lianyungang.Ronald SchulzAlumna Meets withGerman EconomicsMinister Philipp RöslerGIZ: When did you meet MinisterRösler?Inna Khanduja: It was last Novemberduring a lunch exclusively for female In-dian entrepreneurs. Twenty-five womenfrom all across India attended, represent-ing a broad cross section of business life.Guests came from Bangalore, Chennai,Chandigarh and of course Gurgaon, Del-hi. The minister came with high-rankingdelegates and the Acting German Am-bassador to India.How was your meeting with the minister?He was extremely interested in learningabout the economic conditions for In-dian women and the associated culturalcontext. He asked many questions cov-ering aspects such as family, the govern-ment and the support available for femaleentrepreneurs. During the conversation,we highlighted how we are India’s veryfirst generation of female entrepreneurs,and that we receive no support from thestate – this applies essentially for all Indi-an entrepreneurs, female or male. Over-all, the minister was interested in closebusiness relations between Germany andIndia, and in mutual economic growth.Were you able to speak with him directly?I showed him the GIZ Journal and in-formed him about the Indo-GermanManager Training Programme. He ex-pressed his delight in the progress thatthe alumni have made in India, andwanted to know how the Programmehad helped us to enhance our businessrelations with Germany. I responded thatthe Programme had had extremely posi-tive outcomes for me, particularly withregard to professionalising my company.He also browsed the journal with greatinterest.Ms Khanduja, thank you for the inter-view!Inna Khanduja is the CEO of the personnel management agency InterecIT Global Executive Search in northern India. In 2009 she took part inthe Manager Training Programme at COGNOS International in Hamburg.During the 2012 Asia-Pacific Conference of German Business (APK) heldin Gurgaon near Delhi, she had the opportunity to speak with the GermanFederal Minister of Economics and Technology, Dr Philipp Rösler.DrPhilippRöslertalkingtoInnaKhanduja(middle)expanding on existing business contactsboth during individual firm visits and atcontact forums in Beijing and Taicang.The Chinese organiser ProSME workedwith the administrations of the Taicangand Lianyungang development zones toprepare an intensive programme with am-bitious content. In addition to the manybusiness activities, the schedule also in-cluded time for cultural activities and afootball game between a team of Germanprogramme participants and the Joe Tu-okesi Football Team from Taicang. Heretoo, our Chinese partners were the per-fect hosts, holding their own against theGerman team, who were weaker in bothstamina and technique, until the finalpenalty shoot-out.After completing the programme, all theGerman participants assessed the pros-pects for future involvement in Chinavery positively. They are planning long-term business activities and will follow upand expand on the individual networkingmeetings. While in China, one partici-pant from a medium-sized mechanical en-gineering firm in North Rhine-Westphaliawas particularly successful, as he was ableto conclude a contract for the delivery of asystem during a two-day visit to a Chinesebusiness partner. The pilot group partici-pants will present their individual resultsat the follow-up seminar planned for June2013.
    • NEWS NEWS6 JOURNAL 1 I 2013 7Cologne. Despite the political turbu-lence experienced in December of lastyear, GIZ and its Egyptian partner, theIndustrial Training Council (ITC), weredetermined to carry out selection inter-views with candidates for the Programmeaccording to plan from 2013 on. Alto-gether, 24 Egyptian executives qualifiedto participate in the Programme in Ger-many.The majority of them took part in thetraining in Cologne and Berlin from 24February to 23 March 2013. The par-Berlin. On 20 January 2013, the Chair ofGIZ’s Management Board Tanja Gönnerattended ‘Green Week’, the world’s biggestagricultural fair (www.gruenewoche.de).While at the fair, she also visited Kyrgyz-stan’s exhibition stand, where she was gree-ted by Agriculture Minister ChingisbekUzakbaev. In 2013, the Kyrgyz exhibitorspresented food and consumer goods madeof felt, which sparked great interest amongthe fair’s visitors. Former participant inthe Manager Training Programme (MP)Baktybek Shamkeyev was responsible forthe presentation of Kyrgyzstan’s stand. Hehas also been the chairperson of the localalumni association since 2012.This year’s participants in the MP werealso given the opportunity to attendGreen Week in Berlin. In January, twogroups of executives from the agricultureindustry were in Germany. They camefrom six countries: Azerbaijan, Belarus,Kazakhstan, Kyrgyzstan, Uzbekistan andUkraine.ticipants mainly represented industrialcompanies, among them suppliers to theautomotive industry, manufacturers offurniture and leather goods, and produc-ers of plastic and electronic components.The participants’ interests were just asdiverse as the industries. Mohamed ElMahallawy, Finance Manager of Hedetalfor Metal Industries in the city of Tantaon the Nile delta, established contactswith German suppliers of special types ofsteel. Amr Hamdy, deputy Managing Di-rector of Egycarbon, a manufacturer ofcarbon and graphite components, soughtto resume and intensify business relationswith German customers. Representativesof the ITC and the Egyptian Commer-cial Service also participated in the Pro-gramme. Both organisations were nomi-nated on the Egyptian side to implementthe Programme in Egypt.The invited executives benefit from ideasthat the Egyptian pilot group contrib-uted after their stay in Germany in Junelast year in the exchange with ITC, GIZand the German Federal Ministry of Eco-nomics and Technology (BMWi). Ex-pert Juliane Bier from the training centreCarl Duisberg Centren (CDC) carriedout a preparatory seminar on intercul-tural competency in Cairo. Parallel tothat, the CDC expert locally trained fivelecturers from the Egyptian state ForeignTrade Training Centre (FTTC). The goalis to have the contents of the intercultur-al training included in the preparatorycourse offered by the Egyptian side.In February 2013, the second group of Egyptian executives travelled to Colognefor training.Continuing the Programmein a Difficult EnvironmentChair of GIZ’s Manage-ment Board MeetsAlumni and MinisterOmar ScharifiMichael EmmrichManager Training with Azerbaijan to ContinueBaku. The Ministry of Economic Development of the Republic of Azerbaijan and theGerman Federal Ministry of Economics and Technology (BMWi) have agreed to ex-tend their successful collaboration as part of the Manager Training Programme to theend of 2015. The respective agreement was signed by the Deputy Minister for EconomicDevelopment of Azerbaijan Niyazi Safarov and Deputy Director-General at BMWiAndreas Obersteller on 28 February 2013 in Baku. Since the Programme began in 2009,138 executives from Azerbaijani firms have completed practice-based training in Ger-many. Programme participants have acquired modern management skills they apply todeveloping medium-sized companies in particular, and initiated and expanded a widenetwork of contacts at German firms.EgyptianexecutivesinfrontoftheCarlDuisbergCentre,CologneAftersigning:AndreasObersteller(left)&NiyaziSafarovEgyptianProgrammeparticipantRaniaOrabyTanjaGönnerspeakingwithChingisbekUzakbaevWe are interested inyour opinion!Setting the Stage for FutureBusinessBerlin. Exchanging ideas on current pol-icies regarding small and medium-sizedenterprises in China and Germany, inter-national development opportunities fordual vocational training and cooperationthrough exchanges and training for mid-dle and upper management levels: theseand other topics were discussed on 9 Jan-uary 2013 during consultations on SMEsin Berlin. Ernst Burgbacher, Parliamen-tary State Secretary in the German Fed-eral Ministry of Economics and Technol-ogy (BMWi) and the GermanGovernment‘s representativefor SMEs and tourism, metthe Vice-Minister for Industryand Information Technology,Zhu Hongren, for the fourthround of German-Chineseconsultations on SMEs. Thesegenerally take place every year,alternating between Germanyand China. On the day, Burg-bacher and Zhu signed the extension to2016 of the agreement on cooperation inrelation to training executives of Germanand Chinese companies. The MP origi-nally provided training for Chinese exec-utives in Germany. Since 2012, it has alsobeen available to managers who want togain experience and make business con-tacts in China.‘Germany is an anchor of stability inEurope, and China is Asia’s engine forgrowth. Both countries’ success hingesupon the vitality and innovative capacityof their SMEs. Therefore, close coopera-tion on SME policy is important for thefutureofoureconomicrelations,’declaresBurgbacher. He continues:‘The private SME sector inChina often has the sameinterests as German andother foreign companies inChina, namely opening theeconomic structure evenfurther to competition andprivate initiatives. Contactsat company level play a keyrole in creating more inten-sive economic relations. With our coop-eration on manager exchanges, we canhelp set the stage for future business.’The Manager Training Programme (MP) of the German Minis-try of Economics and Technology for executives from Germanand Chinese companies has been extended to 2016.‘Both coun-tries’ successhinges uponthe vitalityand innovati-ve capacity oftheir SMEs.’Parliamentary State Secretary Ernst Burgbacher (left)with the Chinese Vice-Minister for Industry andInformation Technology Zhu HongrenGive us your feedback aboutthis Journal atwww.giz.de/gc21/mp/feedback.
    • NEWS NEWS8 JOURNAL 1 I 2013 9Cooperation with Belarus ExtendedTashkent. After a two-year hiatus, ameeting of the German-Uzbek Intergov-ernmental Working Group on Trade andInvestment was held in Tashkent on 16November 2012. On the following day,the bilateral steering committee of theManager Training Programme (MP) ofthe German Federal Ministry of Eco-nomics and Technology (BMWi) met.That these events were held one rightafter the other was no coincidence. Thediscussions on economic developmentsin Germany and Uzbekistan, and partic-ularly on the agreements for the priorityareas of future cooperation, constitutevaluable stimuli for the strategic orienta-tion of the MP.The Ministry for Foreign Economic Re-lations, Investments and Trade of the Re-public of Uzbekistan, whose acting min-ister Shavkat Tulyaganov co-chairs theworking group and steering committee,identified a series of industries suitablefor intensification of the cooperationthat could, from an Uzbek perspective,be attractive for German investments.These include the food, pharmaceutical,automotive, electronic, petrochemistry,and the oil and gas industries, as wellas energy generation from alternativesources and finally tourism, especially thenecessary infrastructure.Minsk. On 24 October 2012, representa-tives from the German Federal Ministryof Economics and Technology (BMWi)and the Belarusian Ministry of Econo-my met with the respective Programmeproviders for the fourth time to discussthe results and the future focus of theMP. Both sides gave a positive summaryof the past two Programme years. Theadvances and developments of the par-ticipants and alumni are impressive andpromising. The Belarusian partner wel-comed the further development of theThe German co-chair of the two bilater-al committees, BMWi Director-GeneralDr Karl-Ernst Brauner, confirmed thatthe MP could help in acquiring Germaninvestors. Qualified participants are giv-en the opportunity to win the trust ofUzbek companies and assess the sound-ness of German manufacturers for them-selves during their contact with Germancompanies. Participants could thus beselected for the Programme in a targetedmanner to acquire new German suppli-ers for the German-Uzbek joint venturein the field of utility vehicles, MAN AU-TO-Uzbekistan. This procedure couldalso be followed in the other aforemen-tioned industries, as German industryhas attractive offers to make in these ar-eas too.Quality management from the very firststepGIZ and the Chamber of Commerceand Industry of Uzbekistan now faceProgramme promoted by BMWi. Thejoint declaration on the extension of theMP with Belarus until 2015 was signedin parallel with the meeting.The response and presentations given bysome of the participants underlined thepositive effect of the Programme on allparticipants. For example, Pavel Kurilo,deputy director of the company Lud-mila, gave an impressive report on hisexperience and results after his stay inGermany during the Programme. Fromhis position as head of marketing, hewent on to become deputy director inthe enterprise which mainly producesall types of headgear. The company wasrestructured, particularly in the salessection, and the manufacturing facilitieswere modernised with German machin-ery. Now Ludmila delivers high-quali-ty products to Germany, including forDeutsche Bahn AG – a win-win situa-tion for both sides. Ivan Rak, Chairmanof the Belarusian Alumni Associationestablished in June 2012, reported thatfirst steps had been taken for the associa-tion, such as attracting members, puttingon events and concluding a cooperationagreement with the city of Minsk.ed realignment of his personnel policy.The outcome of the innovations was amore motivated, better qualified expertworkforce. Personnel fluctuations at thecompany were reduced significantly as aconsequence, and the continuity of thework in turn enhanced. These positivedevelopments have also had a positiveimpact on the quality of the products.Today Sultanov knows that quality man-agement ends with the quality control ofthe finished product but that it beginswith the very first step. Due to this andother measures, Sultanov’s company hasbeen able to develop its market share inUzbekistan and Russia. Circular knittingmachines from the global leader Mayer &Cie based in Albstadt (Baden-Württem-berg) played a role in this. He pre-negoti-ated this purchase while participating inthe Programme in 2009.The highlight of the steering committeemeeting was the signing of what is nowthe third joint declaration on the imple-mentation of the Manager Training Pro-gramme. It has been extended until 2015.Dr Karl-Ernst Brauner, Director-General atthe German Federal Ministry of Economicsand Technology, signed on behalf of Ger-many, and Shavkat Tulyaganov, DeputyMinister for Foreign Economic Relations,Investments and Trade, signed on behalf ofUzbekistan.Cooperation with Uzbekistan extendedthe interesting task of concretising theseideas and actually implementing them.In this context, the Programme’s previ-ous successes, which were highlighted byall sides, constitute optimistic examples.Thus the president of the Chamber ofCommerce and Industry of Uzbekistan,Alisher Shaikhov, revealed that 90 percent of Manager Training Programmegraduates were able to confirm positivedevelopment.Manager Training Programme graduateBakhodir Sultanov, the owner of Tur-an-Tex, is one prime example. He wel-comed the German delegation to hiscompany, which manufactures and pro-cesses textiles, after the steering commit-tee meeting. The guests from Germanywere able to gain a first-hand impressionof the progress achieved at Turan-Texsince Sultanov returned from Germany.Examples quoted by the graduate includ-Uzbekistan and Germany IntensifyTrade Cooperation At a meeting in Minsk,cooperation with Belarusthrough the Manager Train-ing Programme (MP) wasextended by three years.DrKarl-ErnstBrauner(right)presentstheJournaltoShavkatTulyaganovBakhodirSultanov,ownerofTuran-TexMinskDr Angela Leeke
    • GERMANY GERMANY10 JOURNAL 1 I 2013 11Russian Farmers in Schleswig-HolsteinKiel. Twenty-one managers from a varietyof agricultural companies in the RussianFederation came to the Wirtschaftsakad-emie Schleswig-Holstein (WAK) GmbHin Kiel as part of the Manager TrainingProgramme. Numerous company visitsand meetings filled the agenda of the Rus-sian managers, who visited the north ofGerman from 6 November to 1 Decem-ber 2012.With a current total of 22 locations, thecompany network of WAK is present witha modern training portfolio in the federalstate that lies between the North Sea andBaltic Sea. WAK’s European and interna-tional experience also contributes to thesuccessful training, as the tried-and-testedThe EuroTier trade fair in Hanover andthe Enterprise Europe Network (EEN)cooperation forum held there offered anexcellent platform for expert discussionsand preliminary contact with Germanand international companies. Particularinterest was paid to the companies activein the fields of plant cultivation and agri-cultural technology. Here, the focus wason organic farming, extensive land usesystems and the cultivation of high-qual-ity regional organic produce, and the pro-curement of agricultural machinery andequipment.The visit to Bio-Westhof GmbH was ahighlight of the trip. Participants visitedGermany‘s largest organic greenhouse,which recently launched operations. Atotal of 70,000 tomato plants are culti-vated here on four hectares, with around1,500 tons of tomatoes produced everyyear. During the visit, participants becamefamiliar with a new technology: ener-gy-neutral heating for the greenhouse. Acombined heat and power unit fuelled byunsold organic vegetables and other or-ganic products supply the energy for this.international expertise is also brought tobear in the ‘domestic’ offers. Coopera-tion in national economic and scientificprojects and the development of innova-tive forms of learning within the scope ofEuropean projects as well as the reorien-tation on the labour market – thinking‘outside the box’ opens up new horizons,allows for the development of a new takeon things, and thus makes new expertiseavailable.Focus on organic products and the pro-curement of technologyDuring the specialist programme, partic-ipants were able to gain first-hand expe-rience through a variety of training offersCountless contracts concludedInternationally renowned companies suchas Claas KGaA mbH, Riela Trocknungs-technik GmbH and Landmaschinenfab-rik Grimme GmbH stood at the top ofwish lists of the participants seeking tolearn the technical specifications and pric-es of agricultural machinery and equip-ment. All three companies are prosperous,long-standing partners in Eastern Euro-pean business and have a worldwide pres-ence with their own representations. Theparticipants gained an overview of prod-uct palettes, obtained extensive adviceand made orders. Moreover, they acquiredtechnical expertise on using modern soiltillage and harvesting techniques, whichwill undoubtedly boost efficiency withintheir own companies.The first agreements were already conclud-ed shortly after the Russian entrepreneursreturned home. A contract for the con-struction of a seed factory in Belgorod wasagreed in January 2013 between PetkusGmbH, a seed supplier from Thuringia,and OOO Garant Optima in west Russianand events. In addition to interactivetraining sessions and bilateral discussionswith representatives from industry andthe political sphere, there were count-less opportunities to make contacts forpossible partnerships and synergies. Theprogramme offered an extensive rangeof topics from almost all fields of agri-culture such as plant cultivation, ani-mal breeding, agricultural technologyand the processing of agricultural prod-ucts. During 19 company visits with thewhole group and a further 30 individualcompany contacts, participants from 17regions in Russia confidently presentedthemselves as business partners on anequal footing.Belgorod, for which Aleksandr Lyalyukparticipated in the Programme. The con-tract volume reaches seven digits. Coop-eration agreements have also been drawnup between OOO Shchedrukha fromSiberian Kemerovo, which sent GrigoriyFedorov to Germany, and the companiesReimann Emsdetten GmbH, Renolit SEand Wolf Heiztechnik GmbH. The Vo-stochny meat processing company fromIzhevsk in the Volga region, which wasrepresented by Programme participantKonstantin Sozonov, signed cooperationagreements with ACO Funki, BDWFeedmill Systems GmbH and Big Dutch-man International GmbH.The WAK team will help ensure the sus-tainability of the business contacts initiat-ed by the participants through to the fol-low-up seminar. The extremely intensiveprogramme concluded with fascinatingfinal presentations and excellent resultsfrom the participants as a further contri-bution to promoting foreign trade in thefood sector.Agriculture and food processing formed the focus for 21managers from the Russian Federation, who accepted theinvitation to participate in a training event at the Wirtschafts­akademie Schleswig-Holstein GmbH at the end of 2012.Russian farmers in Schleswig-HolsteinCompany visit: Westhof Bio-Gemüse in FriedrichsgabekoogMarlies Riemer-Lange, WAK
    • GERMANY GERMANY12 JOURNAL 1 I 2013 13Modern Mining Technology in ActionRaw Materials PartnershipsCologne/Leipzig. In November 2012,the German Government specially invit-ed executives from Kazakh raw materialsfirms to participate in training in Germa-ny for the first time. This begins the im-plementation of the intergovernmentalagreement regarding cooperation in theareas of raw materials, industry and tech-nology signed by German Federal Min-ister of Economics and Technology DrPhilipp Rösler and the Kazakh Ministerfor Industry and New Technologies As-set Issekeshev at the beginning of 2012.At the signing Rösler explained: ‘Accessto raw materials depends not only ontechnological feasibility, but also on theeconomic and political environment.anlagen und Baumaschinen GmbH, aswell as analysis technology manufactur-ers such as SPECTRO Analytical Instru-ments GmbH and Carl Zeiss AG.‘It is important to see how the technol-ogy is employed.’At an event in the German Federal Min-istry of Economics and Technology(BMWi), participants reported on theresults they had achieved so far. ENRC(Eurasian Natural Resources PLC) isone of the largest Kazakh raw materialsfirms. It is involved and mining and theprocessing of iron ore, coal and alumin-ium, and is a key player in the mining ofchromite, which is used to temper steel,among other things. For more than 30years ENRC has worked in raw mate-rials mining with equipment from theTAKRAF firm in eastern Germany andhas had good experience with Germantechnology. Before travelling to Ger-many, ENRC representative Dr DaurenOkassov had already initiated negoti-ations to renew the company’s miningtechnology. He was therefore lookingforward to the visit to TAKRAF in par-ticular where he was able to experiencemodern mining technology in action. ‘Itis important to see how the technology isemployed. Now I know how the firm op-erates.’ TAKRAF manufactures bucketexcavators and conveyor bridges for rawmaterials mining in open cast mines allover the world. Extensive know-how andexperience from hundreds of successfulprojects combined with continual opti-misation allow the traditional companyto produce custom-tailored systems foruse in any type of geological area. Sincepurchasing machines and equipment inthe mining sector generally involves mil-lions of euros, negotiations have not yetbeen concluded.‘Communication via the internet can-not replace face-to-face contact.’Elena Saidova’s visit to KSL (Kupfer-schiefer Lausitz GmbH) is evidence thatKazakh know-how is also valued in Ger-many. Saidova is the leading specialist formineralogy in deposit reconnaissance atthe Kazzinc company. She discussed thepossible involvement of Kazzinc in sitedevelopment at the Lausitz copper de-posit, and researched modern laboratoryequipment and computer programs forRaw materials partnerships make an im-portant contribution to maintaining thesupply of raw materials to the Germanprivate sector. This secures growth andjobs in Germany. The agreement signedwith Kazakhstan today creates a politi-cal framework in which companies canconclude contracts under their own au-thority.’Exploration, mining, analysis and pro-cessingThe training was organised by the CarlDuisberg Centres, primarily in Cologneand Leipzig. All the participants camefrom the raw materials industry with aBerlin. As an industrial nation, Germany is one of the largest consumers of raw materialsin the world. The majority of bulk raw materials such as gravel, sand, limestone and clayare obtained from domestic deposits within the country. However, almost all metal rawmaterials, many imported industrial minerals, rare earth elements and fossil raw mate-rials have to be imported. To maintain our path of success and thus secure growth andjobs in Germany, the German economy requires access to these raw materials. This notonly depends on the technological possibilities but also on the economic and politicalenvironment.Therefore, the German Government presented a raw materials strategy at the end of 2010.The centrepiece of this strategy are partnerships with selected countries that are rich inraw materials.This raw materials strategy sees raw materials partnerships as an importantinstrument to support the German economy in the provision of raw materials. In principle,the safeguarding of raw material supplies is a task for the economy. With its raw materialsstrategy, the government creates the necessary framework for a sustainable, international-ly competitive supply of raw materials. It is making a bundle of measures available whichcan help improve access to raw materials. Bilateral raw materials partnerships can openup new supply sources for industry. Innovations through research and development pro-grammes in the fields of raw materials research, raw materials and materials efficiency,and recycling reduce dependence on imports. Structural measures such as the establish-ment of the German Mineral Resources Agency (DERA), the Helmholtz Institute Freiberg forResource Technology (IHF) and the Interministerial Committee on Raw Materials (IMA) serveto reinforce and advise German industry, particularly small and medium-sized enterprises(SMEs) All measures are closely linked with trade at European level.To date, government agreements on raw materials partnerships have been concludedwith Mongolia (2011), Kazakhstan (2012) and Chile (2013). Under the umbrella of rawmaterials partnerships, industry concludes private law contracts on its own responsibil-ity, which can be safeguarded and supplemented with foreign policy and foreign tradeinstruments.These include the participation of Kazakh executives from the raw materialsindustry in the Manager Training Programme of the German Federal Ministry of Econom-ics and Technology.wide range of specialities such as explo-ration, mining, analysis and processing.In addition to thirteen executives fromKazakhstan, three managers from Kyr-gyzstan and one manager from Uzbeki-stan joined the group. The combinationof specialist seminars and visits to Ger-man firms offered comprehensive insightinto business life in Germany. A visit tothe ‘Schüttgut’ specialist trade fair inDortmund in the company of interpret-ers presented an opportunity to networkand exchange ideas and experience. TheKazakh executives visited mining equip-ment manufacturers such as ThyssenK-rupp Fördertechnik GmbH, TAKRAFGmbH, and FAM Magdeburger Förder-The first one-month training in Germany has now beencompleted as part of the raw materials partnership withKazakhstan.Raw materials partnerships form part of the German Gov-ernment’s raw materials strategy. To date, partnerships havebeen agreed with Kazakhstan, Mongolia and Chile.From right: Dr Dauren Okassov following the presentation of the certificateby Wolfgang Hombrecher (BMWi) und Reimut Düring (GIZ)s
    • GERMANY GERMANY14 JOURNAL 1 I 2013 15Executives from Azerbaijan inthe Capital of SaxonyDresden. The ARGE Konsortium Neue Bundesländer (NBL – Consortium of New Fed-eral States) received young Azerbaijani entrepreneurs and executives for the first time inDresden at the end of 2012. The objective was to train the group within the framework ofthe Manager Training Programme (MP) of the German Federal Ministry of Economicsand Technology (BMWi). During the group’s one-month stay in Germany in the capitalof Saxony, Konsortium NBL was able to bring its experience in cooperating with Asianand Eastern European participants to bear in organising extensive contacts for the partic-ipants. The 64 company visits have provided the potential to develop lasting economicrelationships between Germany and Azerbaijan. The German companies regard the Pro-gramme as a good opportunity to gain access to new partner countries.Since the start of the Manager Training Programme in 2009, the number of alumni fromAzerbaijan has reached the impressive number of 129. The majority of the eighteen partic-ipants at NBL were from the IT, pharmaceutical, finance, hotel and insurance industries.The Programme was conducted in English.Although only a few small and medium-sized businesses in Germany consider Azerbaijanas the first country when looking to build up or expand international business relation-ships, there are already examples of successful cooperation which show that forging thelink can work. The company Dresdner Kühlanlagenbau GmbH, which the group visited,has already carried out several projects in Azerbaijan and has had a branch in Baku forsome years now. This successful Dresden company hoped to not only gain contacts forfurther projects as an outcome of the visit, but also to find qualified employees, who areneeded for expanding its business activities locally.the reconnaissance of natural mineraldeposits at different firms. In GermanySaidova was also interested in exchang-ing ideas and experience in mining me-tallic raw materials, particularly fromgreat depths. Standard solutions are nouse here, and individual approaches thatGerman specialised firms can deliver areneeded.The Topaz company from the East Ka-zakh Ust-Kamenogorsk works in geo-logical reconnaissance, the field map-ping and evaluation of natural mineraldeposits. Margarita Magauyanova, Di-rector of Quality Control and Head ofthe Development Service, is interestedin German technology and in issues ofenvironmental management and worksafety in particular. She explains: ‘TheGerman companies are very well organ-ised. They were very welcoming and in-terested in establishing contacts. Everycompany had Russian-speaking employ-ees for us to talk with.’ She visited certi-fied German laboratories to garner ideasfor modernising the work of the labo-ratories at Topaz and for creating a newspecial laboratory for ecological manage-ment. During an on-site company visit,Magauyanova succeeded in intensifyingrelations established in spring 2012 withthe Heidelberg IBL Umwelt and Bio-technik GmbH firm at an environmentalconference in Astana. In addition, shegathered information in Beckum at Thys-senKrupp Polysius AG about new tech-nologies for automating laboratory-scaleexperiments and quality control. Collab-orative projects with both IBL and Poly-sius are now in planning, including oneinvolving environmental managementin Ust-Kamenogorsk. She concludes:‘Communication via the internet cannotreplace face-to-face contact.’Wolfgang Hombrecher, responsible forthe Manager Training Programme atBMWi, could not agree more: ‘The Pro-gramme often provides the opportunityto initiate personal contact and stands forworking together in partnership.’ UrsulaHorn from the Division for Internation-al Raw Materials Policy at BMWi not-ed that ‘the partnership agreements arebased on the companies working closelytogether in the interests of both coun-tries and the companies themselves.’ Sheinvited the group to present the results oftheir time in Germany at the next meet-ing of the government working group onpartnership agreements in Kazakhstan in2013. Frank Weisig, State Referent forCentral Asia at BMWi called on partic-ipants to ‘become ambassadors of Ger-man-Kazakh cooperation.’ The Germanprivate sector provided consistently pos-itive feedback during the company visits.The central Asian executives agreed thatthey had made efficient use of their timein Germany.Ursula Horn and Frank Weisig (both BMWi) listento the statements of Margarita Magauyanova (Topaz)Azerbaijani executives in DresdensStuttgart/Dresden/Berlin. During theirstay in Germany, which was coordinatedby the Baden-Württemberg-Internation-al (bw-i) training centre, the Vietnamesemanagers visited the cities of Stuttgart,Dresden and Berlin, and several compa-nies. Personnel management was an im-portant topic as the shortage of qualifiedpersonnel hinders many Vietnamese com-panies in their business activities. The vis-its to German companies and institutionsgave the guests from South-East Asia anunderstanding of practices and opportuni-ties with regard to personnel managementin Germany.At the engineering works Berthold HermleAG based in Gosheim – a company listedon the stock exchange and one of the lead-ing manufacturers of milling machines –the Vietnamese managers were introducedto the traineeship and training programmeas well as the remuneration system for em-ployees of long service. The guests were im-pressedbythehighdegreeofindependenceand the corresponding sense of responsibil-ity among the employees.Good training and organisation‘The key to success in German companiesis good organisation and (vocational)training. I saw that during our group visitto Berthold Hermle AG, and now I alsoapply this in my company,’ said NguyenThanh Sangh. Improving working con-ditions, offering continuous trainingprogrammes and introducing attractive,performance-related remuneration sys-tems – many participants are consideringintroducing these options after their re-turn to Viet Nam.For example, Le Cao Minh intends to in-troduce a vocational training scheme inhis company as he is convinced that thelack of qualified personnel is one of VietNam’s greatest problems – particularly inpositioning his country in internationalcompetition.A visit to the savings bank SparkasseDresden clearly demonstrated the valueof flexible solutions for employees withregard to working hours, part-time em-ployment and support for persons re-en-tering the labour market after longer pe-riods of unemployment.‘Understanding the business culture isimportant’During her stay in Germany, NguyenXuan Anh not only learned a lot aboutemployee motivation, but also estab-lished contacts for her company. Ber-thold Hermle AG already paid a visit toher company in Ho-Chi-Minh City, asthe engineering works wants to devel-op and strengthen its business in VietNam. Regarding her stay in Germany,Anh said, ‘I have learnt a lot about lead-ership and project management. Beforeparticipating in the Programme, I didthings more the Vietnamese way. NowI do them more the German way. Com-munication with colleagues and custom-ers is particularly important to achievea balance between our Vietnamese andGerman customers who work together.For the future, I would like to expand mywork with Vietnamese customers to po-sition them on the international market.’Duong Thuy Huong confirmed that thecompany visits were the best part of theProgramme for her. ‘We were able to seeand learn how the German companies dobusiness and to talk about their experi-ences. However, for German companieswanting to establish themselves on theVietnamese market, it is very importantto understand the people and the busi-ness culture there. Here the Vietnamesealumni of the Programme can serve ascontacts.’Knowledge Gained from GermanExperience in Personnel ManagementVietnamese executives who visited German companies in 2012 gained valuable insightsinto personnel management and qualification measures, some of which are already beingput into practice.Company visit at the engineering works Berthold Hermle AGRoman Bannack, NBLHanna Bätz
    • GERMANY GERMANY16 JOURNAL 1 I 2013 17operation with relevant research insti-tutions with the aim of strengtheningforeign trade. Political measures such asthe German Life-Cycle Resource Man-agement Act, and stringent regulationsfor packaging, end-of-life vehicles, bat-teries, electrical appliances, etc. fosteredthe development of more efficient andreliable disposal and recycling technol-ogy. This includes separate waste collec-tion and sorting, thermal treatment withenergy recovery, mechanical-biologicaltreatment and fermentation processes fororganic waste.These technologies, in addition to theopportunity to apply these in their homecountries, were of particular interest tothe Programme participants. The Ger-man recycling principle made a huge im-pression on them. It is based on the Ger-man Life-Cycle Resource ManagementAct, which has been in place in Germanyfor almost 20 years now and aims to feedthe raw materials used in productionback into the manufacturing process asextensively as possible upon withdrawalof the goods, that is to develop a wasteand emissions-free production cycle.On the road to waste-free industryThe group visited leading German recy-cling companies in Berlin such as ALBAGmbH where they learned about envi-ronmentally-friendly transport meth-ods and treatment technologies for or-ganic and industrial waste, and HACHLANGE GmbH, which specialises inlaboratory and online waste analyses,measuring stations for the comprehensivemonitoring of surface water, measure-ment technology for water-based coolingand heating systems, etc. At DAS Environ-mental GmbH in Dresden, the executivesfamiliarised themselves with innovativetechnologies for exhaust gas purificationand waste water treatment (e.g. biologicalwaste water treatment using TFR technol-ogy) and learned about customer-specificpoint-of-use solutions for process exhaustgas purification based on the latest ES-CAPE, STYRAX, UPTIMUM, GIANTand SPRUCE technologies.The participants reported that in thefield of environmental protection, theircountries have a great need to catch up.Hence it is important to use state-of-the-art waste recycling methods to fill a nicheand generate a competitive advantagefor their own company in their homecountry, explains Galina Kolmakova, amaster brewer from Siberian Tyumen,summarising the overall impression ofher colleagues. Yet it is not only abouteconomic benefits for the participants:the group also gained a sense of their re-sponsibility for the environment duringtheir stay in Germany and were sensitisedto the previously neglected issue of sus-tainability.High-tech solutions for inadequatewaste and water systemsGiven that most entrepreneurs came toGermany with concrete aims, they wererapidly able to identify suitable Germancompanies and reach preliminary oral orwritten agreements for bilateral cooper-ation. Vladimir Sarychev from Kazakh-stan, CEO of the waste recycling compa-ny Arktur in Uralsk, has already signedhis first agreement with the German me-dium-sized company MeWa RecyclingMaschinen und Anlagenbau GmbHfor the acquisition of waste treatmentequipment. Another deal was sealed forthe manufacture and delivery to Uralskof a waste sorting plant by the Germancompany, Stadler Anlagenbau GmbH.Sarychev also made a successful proposalfor a partnership with Avista Oil AG forthe establishment of a joint company forthe processing of old engine oil, and todetermine further steps. The investmentplanned by the Kazakh entrepreneur cur-rently lies in the mid-double-digit mil-lion euros range. Alexey Shchepelev fromthe Russian city of Cheboksary, leadengineer at water treatment companyVodokanal AG, also signed preliminaryagreements for the project planning andsupply of top-quality water treatmentsystems with the German companiesORPU Pumpenfabrik GmbH, PITTGmbH and WAG Armaturen GmbH.Team spirit for successful cooperationAll participants found their time in Ger-many to be extremely enriching and wellinvested. The new contacts with Germancompanies are to be maintained andtransformed into cooperations upon theparticipants’ return to their home coun-tries. The atmosphere characterised byteam spirit is reflected in the film shot bythe group. And the ‘green concept’ thatelectrified the group found expressionin Kazakh entrepreneur Nurlan Zhum-artov’s wish: ‘Intensive coverage of theaspects of waste disposal and, most im-portantly, reuse within industry in allcurrent and future groups, regardless oftheir specialisation. We are all top manag-ers and capable of reusing information.’http://www.youtube.com/watch?v=G8tn6ARiqkMCompany visit at Berliner Stadtwerke (BSR)Berlin. The 22 executives in the firstgroup from the waste disposal and wa-ter management industry to come tothe EUROPANORAT training centreOleg GolovachevTurning Wasteinto EnergyThe pilot group for waste disposal and water managementexecutives was launched in 2012, resulting in multi-millionEuro contracts.The entrepreneurs from Russia, Uzbekistan,Kazakhstan and Kyrgyzstan familiarised themselves withthe latest German technologies in the fields of wastedisposal and water treatment, and took advantage of theopportunity to initiate mutually-beneficial cooperations.in Berlin to participate in the ManagerTraining Programme in 2012 far exceed-ed their hosts’ expectations. Frank Nichtefrom the German Federal Ministry ofEconomics and Technology (BMWi)already spoke of the ‘excellent results’ atthe group’s closing event.Inlightofadvancingindustrialisationanda growing shortage of resources includingoutside the industrialised countries, theissues of waste disposal and recycling areincreasing in importance. Over the past20 years, the German waste disposal in-dustry with around 160,000 employeeshas attained an extremely high technicaland ecological level, in particular due tothe innovative products and technolo-gies offered by German companies. Thefocus of German companies within therecycling industry is increasingly shiftingto markets outside of Europe with a highecological need for state-of-the-art wastedisposal technologies. Thus the ‘GermanRETech Partnership’ was established in2011 to access these markets, followingthe German Federal Environment Min-istry’s ‘Recycling and Efficiency Tech-nology’ (RETech) export initiative. Thisinitiative aimed to establish a networkbetween companies of the German re-cycling sector, and to advance their co-
    • GERMANY GERMANY18 JOURNAL 1 I 2013 19holds, as trade and investment figuresshow. The German medium businesssector is increasingly participating in theeconomic development in India, for ex-ample in areas such as the automotive in-dustry, renewable energies and machin-ery and plant engineering. Nevertheless,there are still numerous unused oppor-tunities for medium-sized German com-panies in India due to a lack of marketknowledge, resource constraints and, insome cases, strong uncertainty avoidance.Two typical examples of ‘misjudgement’in connection with the Indian market aredescribed below.1. The evaluation of market potentialon the basis of per-capita income:Consulting the per-capita index whenmaking important product decisionsfor the Indian market can prove prob-lematic. Despite considerable develop-ments, the average individual incomein India is still at a low level (USD1,600 per year). However, a one-sidedfocus on this index neglects two signif-icant factors: n More than 80% of the labour forcein India work in the so-called ‘infor-mal’ economy, which means that thestate statistic authorities do not haveexact information regarding theirincome levels. n With an average of five persons in atypical household, the family’s pur-chasing power could be much higher.2. Considering India purely as a salesmarket: Medium-sized businesses areoften tempted to introduce their ex-isting products to the Indian marketwithout substantial adaptations. Butthings often work differently in the In-dian market. The up-and-coming mid-dle class wants to buy quality productswith a good image and market value,but is not able or not willing to paythe customary international price.Some medium-sized German busi-nesses have recognised this ‘demand’and developed market-specific prod-ucts which are then also offered forsale in other comparable markets – insome cases in the global market, too.Products that are in line with marketrequirements instead of being purelytechnology-driven are a critical successfactor in India. As several owners ofmedium-sized businesses have report-ed at the German-Indian Round Table(GIRT), the ‘made in Germany’ brandis only an advantage for being success-ful beyond niche markets if prices arealso in line with the market.These two typical examples of ‘misjudge-ment’ can be most easily avoided throughGerman-IndianRound Table (GIRT)The German-Indian Round Table (GIRT)was founded in 2001 as an associationof people with strong economic and per-sonal interest in India. GIRT’s objective isto spread information about India and fa-cilitate German-Indian business relations.Participants at the German-Indian roundtable meetings also support cultural, busi-ness and social activities in India. They gettogether at regular intervals in a number ofGerman and Indian cities. GIRT has grownto include around 3,000 participants fromthe German-Indian business communi-ty, some who volunteer as directors andspeakers for GIRT. Dr Rajnish Tiwari headsup the Hamburg GIRT division.ContactDr Rajnish TiwariGerman-Indian Round Table (GIRT)Hamburgc/o Institut für Technologie-und InnovationsmanagementTU Hamburg-HarburgSchwarzenbergstr. 9521073 HamburgGermanyTel: +49 (0)40 42878 3776Fax: +49 (0)40 42878 2867Email: tiwari@tuhh.deWeb: www.girt-hamburg.decooperation with reliable and competentlocal partners, who often have a soundknowledge of the market as well as theirown resources and an extensive businessnetwork. Small and medium-sized en-terprises (SMEs) in India are often am-bitious and want to expand at nationaland international levels. However, theynot only often have too few resources,but also lack a thorough understandingof the German market and work culturein Germany.Medium-sized German businesses andIndian partnersBut striving for expansion can form agood basis for mutually advantageous co-operation (‘win-win’) with medium-sizedGerman businesses. Within the scopeof the Indo-German BMWi ManagerTraining Programme in June 2012, twocooperation forums for German and In-dian SMEs were organised in Hamburgand Leipzig to promote an even moreeffective use of market potential by themedium business sector. GIRT also par-ticipated as a co-organiser. With the aidof these two cooperation forums, a groupof 20 decision-makers from eight differ-ent branches of industry in India was ableto have 63 individually scheduled discus-sions with representatives of Germancompanies (Hamburg: 49, Leipzig: 14).In preparation for these meetings, theparticipants received detailed informa-tion on the companies involved. Manyof these discussions led to follow-upmeetings and paved the way for businesstransactions. Both events were very wellreceived by the participants.This example shows the importance ofpersonal contacts, particularly for SMEs,which often do not have their own exten-sive business network in the particularpartner country. This way market entrycan be achieved for both sides and, atthe same time, the market risk reduced.Cooperation forums could be a suitablemeans for intensifying Indo-German co-operation and forming a broader basis forsuch cooperation through the participa-tion of SMEs.Hamburg. India has observed consider-able and continuous economic growthsince the start of economic reforms atthe beginning of the 1990s. India’s grossdomestic product (GDP) increased six-fold from approx. USD 300 billion toover USD 1.8 trillion between 1991 and2011. Measured in terms of purchasingpower parity, the Indian economy is al-ready the third largest economy in theworld, after the USA and China. Thecountry’s future prospects are also verypromising: According to the Interna-Medium BusinessSector goes IndiaGuest contribution by Rajnish Tiwari: Indo-German cooperation forums enable broadermarket entry and an ideal win-win situation for German medium-sized businesses andIndian consumers.tional Monetary Fund’s latest estimates,India’s GDP is likely to almost doubleby the end of 2017 and will presumablyreach USD 3.2 trillion.This steady growth has had a positive ef-fect on the per-capita disposable incomein India so that considerable consumerpurchasing power has been released de-spite continuing social imbalance. Invest-ments are also being made in infrastruc-ture development, with the result that thedemand for capital goods is increasing inIndia, too. India’s role as an increasinglysignificant global growth engine will inall probability be strengthened furtherdue to its location advantages, e.g. a fa-vourable demographic situation and amarket that is far from saturated.Making intelligent use of Indian eco-nomic potentialGermany and German companies haverecognised the enormous economicpotential that the Indian subcontinentRajnish Tiwari (GIRT)Rajnish Tiwari (fifth from left) at a cooperation forumWe are interested in your opinion!Give us your feedback about this Journal atwww.giz.de/gc21/mp/feedback.
    • GERMANY GERMANY20 JOURNAL 1 I 2013 21energy-efficient technologies. Issues suchas energy and environmental manage-ment, project management in the fieldof energy efficiency and alternative ener-gies were covered, as were SME funding,quality and innovation management,service strategies and logistics concepts,some on-site in the German companiesthemselves. The concrete steps of theenergy management system from assess-ing demand to commissioning and con-trolling were also demonstrated in thecompany as a learning environment.Belarusian entrepreneur Elena Grigor-yeva, financial director of the family-runmeasuring equipment manufacturerSpezsistema, described the participants’opinions perfectly: ‘During this monthyou learn a tremendous amount, whichboth benefits your own managementskills and your cooperation with Ger-man business.’ Her daughter Anna hadalready participated in the Programme,so she knew the Programme beforehand.The group seemed impressed by the‘outstandingly expert’ training seminars– especially on increasing energy effi-ciency – and insights into everyday lifein German companies. In the beginning,it didn’t look easy for the DMAN to ac-commodate the interests of the hetero-geneous group, which ranges from bio-gas companies to measuring equipmentcompanies. However, it is exactly thiscombination which was seen as very suc-cessful among participants. ‘We could al-ways help each other out, give each othergood tips, for example at trade fairs or atcompany visits,’ recalls Grigoryeva. Thetechnology enthusiasts taking part in thetraining were very happy to look beyondtheir own horizons and learn from oneanother.Contact and Intelligent Solutions‘Energy efficiency begins with the rightenergy metering,’ declares Madi Agyba-yev from Kazakhstan, voicing the con-viction shared by those from the groupwho specialise in measuring equipment.Agbayev is the Commercial Managerat Korporacija Sajman, a manufacturerand wholesaler of electronic and opticalproducts, particularly measuring equip-ment. The qualified engineer from Ka-zakhstan sees saving energy as his mainpriority and reported on a state supportprogramme in Kazakhstan to increaseenergy efficiency. Along with other en-ergy efficient technologies, Agbayevwas particularly interested in intelligentlighting solutions for offices and factorybuildings. He managed todevelop good contacts withthe LED manufacturer OffOn new Lighting GmbHfrom Hamburg. The north-ern German company’s LEDlights can be controlled usingWifi and Bluetooth. Agbayevexpects his first deliveries forthe Kazakh market to be in2013.Dmitry Khilko presented hisproject plans together withhis German project partnerfrom STRABAG environ-mental technology of Dres-den. Khilko is the directorof the STRABAG Engineering Centre(SEC) in Minsk. Two years ago theyagreed to develop a biogas facility in asewage treatment plant near Minsk. Itsaim is to produce electricity and heatfrom sewage sludge. His firm has takenon the role of general planner on site forthis project, which is being implement-ed in cooperation with the firm STRA-BAG Umweltlagen and the municipalenterprise Minsk Wodokanal. The totalvalue of the project is EUR 28 million,and SEC will provide around a quarter ofthe engineering services. During the Pro-gramme, Khilko succeeded in conclud-ing agreements with the German com-pany HEROS AnlagenautomatisierungGmbH and HIK Systeme und ModuleGmbH for the delivery of technologiesfor the project. At the event in BMWi,the project manager on the German sidesaid that if the project is a success, moremay be set up.Other participants in the training Pro-gramme are now also carrying out talkswith German firms. For example, YuriTutyshkin from the firm ‘Rusgasengi-neering’ in Podolsk near Moscow man-aged to establish promising contacts withthe German firm Chriwa Wasseraufbere-itungstechnik GmbH and PSE Engineer-ing GmbH. Viktor Leontyev from Pensa,who works for the regional electricityprovider Pensenskaya Gorelektroset, re-ported on his contacts with the Germanburner manufacturer Saacke GmbH andthe boiler producer Viessmann WerkeGmbH & Co. KG. ‘The most import-ant thing for me was the company visits,where we learned about the most moderntechnologies and we could see the facili-ties that interested us most inaction,’ summarises Leontyevwith regard to his impressionsof his training in Germany.The developments in the fieldof renewable energy tech-nologies in particular causeda real sensation. Ultimately,this issue is still getting off theground in the participants’home countries, while Ger-many already has profoundknowledge and high-techequipment to rely on.The application-oriented train-ing carried out by DMAN cov-ered the German energy sectorand project management in the energysector as well as an overview of energynorms and standards. The fear that thistraining would be a bit dry proved to beunfounded. Participants stated that theywould like to hear even more on the issueof norms and standards. The managerslearned about modern, energy-efficient‘Duringthis monthyou learn atremendousamount,which bothbenefits yourown manage-ment skillsand yourcooperationwith Germanbusiness.’Pilot Group:Energy Efficiency in Industrial CompaniesAn international pilot group focusing on ‘Energy Efficiencyin Industrial Companies’ was in Germany in November2012 at the invitation of the German Federal Ministry ofEconomics and Technology (BMWi). Alongside the thirteenRussian and six Belarusian executives from small and me-dium-sized enterprises (SMEs), one manager from Kazakh-stan and one from Azerbaijan also completed the trainingin the German Management Academy of Lower Saxony(DMAN) in Celle. A closing presentation ceremony was heldin the Ministry in Berlin and was attended by representa-tives of BMWi, GIZ and DMAN.Celle/Berlin. The group mainly consist-ed of technical directors, managers ofengineering departments, chief powerengineers and senior inspectors along-side members of their respective man-agement teams. The companies spansuch diverse sectors as railway and foodindustries as the railway and food indus-tries, and are either users of technologieswith high-energy requirements or makeenergy-related technologies themselves.Participants in the Programme were giv-en an overview of energy managementsystems in Germany and current devel-opments in the field of energy efficiency,which means they learned about modern,sElena Grigoryeva onthe roof of the BMWiFrom left: Sergei Kovalev and Evgeny Sobashnikov
    • GERMANY GERMANY22 JOURNAL 1 I 2013 23technologies in production and the ap-plication of energy management systems.Visits were paid to German producersor operators of energy efficient technol-ogies, but also to energy producers, aresearch centre from the field, an asso-ciation of companies aiming to increaseenergy efficiency and service providersfrom this field, such as financial institu-tions and engineering firms.Well Prepared and Clear IdeasAt the pilot group’s final event in Berlin,BMWi’s representative Ingrid Zilligesdeclared that she was ‘impressed by thevery concrete results,’ which are thanks to‘the participants’ good level of prepared-ness and clear ideas.’ She spoke very pos-itively of the international orientation ofthe group. ‘I felt very comfortable andmade lots of friends,’ said Agybayev fromKazakhstan happily. Reinhard Giese in-troduced the BMWi’s Energy EfficiencyExport Initiative that day (see box). Aguided tour around the Ministry build-ing was met with great interest. On atrip to the photovoltaic roof terrace, theforeign managers enjoyed a view of Ber-lin’s city centre. In addition, this exampleBonn. Representatives of the eleven train-ing centres responsible for implementingthe Programme accepted the invitation to aworkshop issued by GIZ and the GermanFederal Ministry of Economics and Tech-nology (BMWi). These centres carry outpractical training to strengthen the man-agement skills of Programme participants.They also help participants find the rightcooperation partners through their region-al expertise and exceptional contacts in theGerman private sector. Hartmut Röben,BMWiHeadof Division,openedbythank-ing GIZ and the training centres for theirEnergy Efficiency Export InitiativeIn these times of scarce fossil fuels and constantly increasing energyprices, the need for innovative technologies that decrease energy con-sumption is growing worldwide. Germany has an excellent reputation whenit comes to energy efficiency.In this context, the Energy Efficiency Export Initiative under the umbrella brand ‘EnergyEfficiency – Made in Germany’ has been set up under the auspices of the German FederalMinistry of Economics and Technology. It supports German providers of products, systemsand services in the area of energy efficiency. Under the umbrella brand, it furthermoreprovides an information infrastructure for a variety of projects and stakeholders as well ascomprehensive information on important fields of action for saving energy.The Energy Efficiency Export Initiative is basically focused on all relevant markets. Aparticular priority area includes activities in countries with high economic growth, industrialmarkets of strategic significance for the export economy, and emerging economies. Manycountries have recently set themselves ambitious energy savings targets and want toachieve this through targeted measures, which could create great opportunities for Germancompanies.demonstrated to them once again that,not least thanks to the energy revolution,along with efforts to increase energy ef-ficiency, renewable energies are widelyused in all areas of life in Germany. Thisand the memory of their time togetherin Germany with lots of new friends andbusiness contacts will stay with them fora long time to come.sWorking Together on ContinuingProgramme DevelopmentThe current state and continuing development of theManager Training Programme (MP) were the topics of aworkshop in Bonn on 18 and 19 February 2013.dedication and hard work: ‘As an elementof foreign trade policy, the Programme ex-tends beyond just the promotion of tradeto actually improve economic cooperationwith the countries involved. It is in great de-mand and so successful that it will soon beexpanded to additional partner countries.’Negotiations are currently underway withthe Mexican Ministry of Economics. Programme Manager Reimut Düringpointed out the Programme’s objectives:‘The goal is to help small and medium-sizedenterprises (SME) in particular access newmarkets. As objectives, expanding execu-tives’ management skills is as importantas promoting international partnerships.’Project Manager Christina Otto provided areview of the Programme’s implementationat GIZ: Egypt joined the group of partnercountries and German executives now havethe opportunity to learn about the Chinesemarket on location. Over 750 executives in37 groups completed training as part of theMP. There were five international groupsand eleven sector groups.There are a total of seven priority sectors:n The mining and extractive sectorn Health sectorn Environmental technologies in the waterand waste management sectorn Energyefficiencyinindustrialenterprisesn Energyefficiencyinconstructionandtherenovation of buildingsn Renewable energies andn Agriculture.These Programme formats are generallycarried out with an international group ofparticipants. Workshop participants alsodiscussed the importance and challenges ofimplementing the Programme with a focuson a particular branch or topic.On the second day of the workshop andunder the moderation of Dr Angela Leeke(GIZ) and Dr Bertram Lohmüller (Ex-port-Akademie Baden-Württemberg), par-From left: Jörg Kalmbach (CDC), Karina Gabrielyan (GIZ), Dr Ronald Pschierer (DMAN)ticipants examined a competence model forthe MP. The goal is to develop common,international minimum requirements thatapply to all applicants, which would needto be fulfilled to be accepted to the Pro-gramme. A competence monitoring pro-cedure is to be introduced over the entirecourse of the Programme, and the impor-tance of preparing participants properly intheir home countries was emphasised. From2010 to 2012 an international workinggroup comprising experts and employeesfrom GIZ and representatives of foreignpartner organisations and the Germantraining centres worked on this importantissue. A coordinated catalogue of key fieldsof expertise in the areas of corporate andcooperation management has been devel-oped. It covers a wide spectrum from gener-al business management to innovation andchange management, and from intercultur-al management to presentation techniquesand submitting business proposals thatcomply with German standards. An addi-tional area of competence was added to thecatalogue as a result of the discussion: inte-grated thinking and action as crucial keys tosuccess. The competence model also offerstools for assessing how well the ManagerTraining Programme training goals are be-ing achieved. This will provide an analyticalbasis for an ongoing process of adjustmentand further development. Finally GIZ em-ployees and representatives of the trainingcentres talked about the practical effects ofintroducing the competence model. As itnow stands, applicants will need to com-plete online checks and work on case stud-ies after the selection interview. The finalpresentations on the results of training inGermany have shown great success in thepast and will continue.The working groups also dealt with thetopics of Programme formats, interna-tional sector groups and the Programmemodule on training. They presented theirresults at the end of the meeting. Partic-ipants agreed that the workshop was im-portant and useful for coordinating andcontinuing to improve the MP and shouldcontinue to be held every year.
    • PARTNER COUNTRIES PARTNER COUNTRIES24 JOURNAL 1 I 2013 25of the negotiation process. The bottomline is: you must be well prepared for allbusiness negotiations, particularly if theyinvolve partners from abroad becausecareless words or gestures could ruin asuccessful project.The workshop ‘Relations betweenUkraine and the European Union: Cur-rent Challenges and Decision-Making inthe EU, its Member States and Ukraine’was a challenge. Lecturer Robert Chorol-ski still managed to present the complexissue in a vivid and comprehensible wayso that participants discovered lots ofnew things. They also managed to or-ganise their newly acquired knowledge.Other components of the programmeincluded role-plays. This also providedthe possibility to get the outsider’s per-spective: the trainers made video record-ings which were evaluated and analysedin relation to conduct and participants’answers.A Labour-Intensive Programme in Ger-manyThe next section, and the high point ofthe advanced training as a whole, was thevisit of the participants to the GermanGovernment offices. All of them hadspent a lot of time preparing for the trip:a special seminar was given on Germany’sadministrative structure, the political sys-tem and the special features of the publicservice. The trip, which was meticulouslyplanned, had a packed schedule and waslabour-intensive; the organisers achieveda great deal. During their one-week stayin Germany, participants spoke to andexchanged views with experts from theirrespective state authorities. There wereseveral meetings with representativesfrom a number of Federal Ministries:Economics and Technology, Justice, In-terior, Foreign Office, Press and Informa-tion Office, Economic Cooperation andDevelopment, Labour and Social Affairsas well as Food, Agriculture and Con-sumer Protection. The executives werealso received by the Federal Chancellery,the Office of the Federal President, theBundestag and the Bundesrat. It was allrounded off with a discussion with Min-ister Counsellor Dr Vasyl Khymynets inthe Ukrainian embassy on the embassy’sactivities and the current trends in rela-tions between Ukraine and Germany.There are, of course, differences betweenthe Ukrainian and German state struc-tures. These experiences were importantfor participants, also to help them graspthat not everything should simply becopied and reproduced in Ukraine, aswhat works for Germans could end in afiasco for Ukrainians.Transparency and OpennessHowever, the participants could stilllearn a lot of useful things, for examplethe transparency of the German State,which is both literal and metaphorical inthe sense that German officials don’t justsubscribe to the principle of transparen-cy and openness in decision-making andimplementation. Their administrativebuildings are actually made of glass toclearly show that the State has nothing tohide from its people! Yet another patternof behaviour: modesty and proximity tothe citizens. The offices are minimalistand they have no expensive furniture.The low number of luxury cars on thestreets or beside the government officesis striking. Many officials go to work bybike. This is a norm cultivated in society,a norm for which an appropriate infra-structure was created.ThemembersoftheUkrainiandelegationare certain that the programme was veryinformative, educational and instructive.Contacts made in meetings are helpingestablish even closer German-Ukrainiancooperation not only at government levelbut also at a personal level.Kyiv. ‘The programme exceeded our ex-pectations!’ was the impression of thosewho participated in the 2012 FellowshipProgramme. They took part in an ad-vanced training programme in Ukraineand Germany, an impressive programmeat all levels thanks to its diversity andcontent. The programme has been runevery year since 2001. The workshops,lectures and reports cover:Young executives from the Ukrainian Government took partin a GIZ study and training programme over several months.Marianna Vtorushina is an employee in the Information andPublic Relations department at the Cabinet of MinistersSecretariat in Ukraine. She describes her impressions of theprogramme in this guest contribution.n the establishment of personal relationsn the secret to efficient and productivecommunicationn presentation techniques andn the art of negotiating.In Ukraine, Dr Vladimir Lyskov present-ed the topics clearly and comprehensibly.He emphasised, for example, that theability to listen and willingness to com-promise are crucial. The administrativesystem in Ukraine is complicated, its hi-erarchy pronounced and its regulationsstrict. Unconventional decision-makingmethods are not easy under these con-ditions. This means that state officialsoften have to reconsider processes andlook at a problem from a new perspec-tive. Therefore, Dr Aksana Kavalchuk,an expert in practical psychology, wasinvited from Germany to support theprogramme’s participants. With her astheir mentor, the young executives ac-quired creative techniques, learned howto handle intrigue and how to resolvedisputes. Participants were shown thatthe ability to improvise, flexible thinkingand willingness to innovate are essentialelements of the responsibilities of expertsand executives today. It became apparentthat it is relatively easy to develop an in-teresting idea and a creative approach.You just need to know which method touse: mind mapping, brainstorming, 365method or morphological boxes, etc.Be Well Prepared for NegotiatingThe workshop ‘The Art of Negotiations’analysed ways of and strategies for han-dling negotiations successfully. Partici-pants familiarised themselves with theparticular features of the negotiationprocess with German partners. They alsoexamined the cultural, mental and his-torical aspects of the different nationsand their influence on the developmentStrengthening German-Ukrainian CooperationMarianna Vtorushina Tatyana PedchenkoLeft to right: Lyudmila Shapovalova,Juri Voloshyn, Irina MartynenkoOlga Stolyar Peter Wiest, German Embassy KyivMarianna Vtorushina
    • PARTNER COUNTRIES PARTNER COUNTRIES26 JOURNAL 1 I 2013 27Kazan/Samara. Two weeks of non-stopbusiness is what awaited the six Germanmanagers who kicked off a tour at the endof October to get to know two of Russia’smost exciting business regions: Kazanand Samara located along the Volga Ri-ver. Together with other executives fromFrance, Norway and the United States,they completed the ‘Fit for Business withRussia’ training programme from 21 Oc-tober to 3 November 2012, and enjoyedan exciting look at the world of businessalong the Volga.The expectations participants had fortheir trip through Russia were as diffe-rent as the branches in which they work.They ran the gamut from ‘general inte-rest in the regions beyond Moscow andSt. Petersburg’ to concrete cooperationplans. Stefan Ivanov, for example, usedthe trip to roll out the German-Russian‘Uralchimplast-Hüttenes Albertus’ jointventure (see article on p 57). Dr SteffenZiesche from the Fraunhofer Institutefor Ceramic Technologies and SystemsExecutives from four coun-tries established businesscontacts in the Russianboom regions Kazan andSamara.Opportunities for Growthalong the VolgaIKTS in Dresden hoped to acquire a bet-ter understanding of the interplay bet-ween the private sector and governmentadministrations. The varied programmeoften lasted well into the early evening.It included specialist seminars, meetingswith companies, policy and administra-tion, cooperation forums and individualcompany visits. This effective blend allo-wed participants to explore the Russianmarket in great detail.In Kazan, the capital and the heart of theRepublic of Tatarstan, participants le-arned all about one of Russia’s strongesteconomic regions. The ‘Idea’ technolo-gy park, the Republic of Tatarstan’s ITPark, and the ‘Chimgrad’ technopolis allprovided an impression of the innovati-ve and scientific potential of Tatarstan.A cooperation forum organised in closecooperation with the CCI of the Repu-blic of Tatarstan rounded off the visit. Itprovided guests with access to numerouslocal firms. Programme highlights inclu-ded a visit to the ‘Alabuga’ special eco-nomic zone in the city of Elabuga and tochemical giant ‘Nizhnekamskneftekhim’in Nizhnekamsk.Kazan. The Republic of Tatarstan’seconomic prosperity is based on oiland gas reserves. In addition to the rawmaterials sector, the chemical industry,vehicle manufacturing, food processingand metallurgy are all well developed.The government’s very pro-business po-licies, the 14 ‘techno parks’, the Alabugaspecial economic zone, highly qualifiedskilled experts and a well-developedinfrastructure all make this an interestingregion for foreign companies.Participants then travelled to the Sama-ra region, which also offered an excitingand varied programme. In addition tomeeting with the Head of the SamaraChamber of Commerce, companies fromthe region interested in international co-operation were also invited to take partin the programme. In the Samara Start-Up Support Centre, young entrepreneurswere available to answer questions. Andat a round table with high-ranking re-presentatives from the Samara RegionKazan SamaraEconomic Administration, roughly theequivalent of the federal states’ ministriesin Germany, participants learned aboutimportant infrastructure projects in theregion such as the ‘Zhiguly Valley’ Tech-nology Park and preparations for theWorld Cup, which will be held in Russiain 2018. A visit to the French-RussianElectroshield joint venture clearly illus-trated the cooperation opportunities theregion has to offer. The programme inSamara was rounded off by a visit to in-ternational aluminium producer Alcoa,the Technical University and individualmeetings for participants with potentialbusiness partners from the region.Samara. Samara is one of Russia’sstrongest industrial regions and an im-portant hub. The area is also rich in mi-neral resources such as oil and gas. Theautomobile sector and Russia’s largestautomobile manufacturer ‘AvtoVAZ-Lada’in Togliatti along with a well-developedsupplier industry shape the regionaleconomy. Other key branches includethe chemical industry, machine buildingand the aerospace industry. Pro-industrypolicies, well-educated specialist expertsand a focus on high-tech clusters andtechnology parks make the region attrac-tive to German companies.The international group headed homewith many new impressions, new anduseful contacts to firms from Tatarstanand Samara, and up-to-date informationabout the management structures andworking methods of Russian companies.Norwegian entrepreneur Murshid Alisummed it up nicely: ‘Now I know howRussian managers work. And I am sur-prised that the differences between us aremuch smaller than I had thought!’ Stef-fen Ziesche’s expectations were also morethan fulfilled. The contacts he establis-hed during the trip will provide an excel-lent foundation for future cooperation inboth Russian regions.Follow-up activities began once parti-cipants arrived home: sorting throughcontacts, preparing for negotiations and– ideally – rolling out joint ventures. TheKazan and Samara Regional ResourceCentres, the organisers on the Russianend, were very pleased with the resultsand are already looking forward to wel-coming the next group of managers.‘Recognising the Signsof Change’In his interview, Dmitry Ovodenko, Director of Samara’sRegional Resource Centre, explains how the trainingprogramme for German managers in Russian regionsdeveloped and the influence globalisation has on his region.GIZ: The training programme for foreignmanagers in Russian regions has existedsince 2009…Ovodenko: ... Yes, we also received ourfirst group of German managers in Sama-ra that year. This is how we discovered anew international field of activity because,before that, we only prepared our Rus-sian graduates from the Presidential Pro-gramme (see also the article on page 28)for their practical training in foreign com-panies in Europe, Japan or the US.Since then you have received several Ger-man entrepreneurs along with many in-teresting meetings.This makes me think of a funny story:we had our second group from Germanywith us at the time and some participantsinvited me to a meeting with three oth-ers to discuss an offer. I followed themimmediately into my office and, becausethis is where I work, the telephones ringconstantly, the door is open and some-one is always looking in. Then came themoment when I answered my first phonecall, my second, third – and at some stageI heard a hearty guffaw. When I put downthe receiver I asked: ‘Did I say somethingwrong?’. The answer was: ‘If we hadn’tattended an intercultural preparatorycourse we would definitely be annoyed,but we knew that we had to expect Rus-sian partners to make phone calls now andagain during contract negotiations, andthat they may sometimes conduct twoor even three phone conversations at thesame time. Here we got to see that this ex-ample isn’t by any means an exaggeration.’In your opinion, to what does the pro-gramme owe its success?Apart from Moscow and Saint Peters-burg, most foreign managers know hardlyany Russian cities. When they visit us herethey see that there is production here tooand they have the opportunity to put theirvarious business projects into practice.What do the Russian regions get out of it?Nowadays, the only entrepreneurs whocan be successful are those who best adaptto the rules of globalisation and gain in-ternational partnerships the fastest. Thisis where the programme offers excellentopportunities – especially for RussianSMEs. You simply have to recognise andaccept the signs of change, how quicklythe world and economic circumstancescan transform.MrOvodenko,thankyoufortheinterview!Company visit at aluminium manufacturerAlcoa in SamaraDmitry Ovodenko
    • PARTNER COUNTRIES PARTNER COUNTRIES28 JOURNAL 1 I 2013 29Moscow. In 1997 the new ‘Presiden-tial Programme’ was launched, whichwas designed to help modernise Rus-sia’s economy. Its goal: to teach juniorand senior executives from the formerlystate-owned firms through-out the country about mod-ern business managementtechniques and to translatethe economic reforms to thecompany level. It was also in-tended to promote small andmedium-sized companiesand support the economicupswing throughout Russia.The programme helped openfirms from Russia’s regions to the globalmarket by offering internships abroad forthe best participants.Fifteen years down the road, Russia hascome a great deal closer to realising theseThe Russian Presidential Programme (PP) has contributed tomodernising the country’s private sector by training a newgeneration of Russian executives. Over 73,000 young exec-utives have participated in the programme to date. In 2012the PP celebrated 15 years of success.A Story of Lasting Successobjectives. Today the Russian economy ismuch more diversified and competitivethan it was in the mid-1990s, and thePresidential Programme played a role inthis. The numbers speak for themselves:to date around 73,000 youngRussian executives have beentrained at over 100 leadingbusiness schools all over Rus-sia. The programme coversalmost every region in thecountry – from Kaliningradto Vladivostok – and tens ofthousands of companies haveparticipated. It is making atangible contribution to thedevelopment of the Russian economy.The Russian Government founded theFederal Commission for the Organisa-tion of Training of Executives to imple-ment the PP. Regional commissions inindividual parts of the country select can-didates to participate in the programme.The selection process involves the testingof candidates’ motivation, language skillsand specialised expertise. Training takesplace at universities and institutes in theparticipants’ region or in other regions.Many executives have the opportunity tocombine the study programme with theirwork. Others come back from trainingwith new ideas and projects for theircompanies.Positive interim results after 15 yearsThe fifteen year mark for the PresidentialProgramme is an excellent opportunityto assess its success so far. Conferencesand commemorative events were heldin many regions in 2012. The highlightof the celebrations was an internation-al conference in honour of the 15-yearanniversary of the PP in Moscow at theRussian Academy for Economics on 2November 2012. More than 700 guestsparticipated in the Moscow event, in-cluding representatives of the regions,universities and institutions, regional re-source centres, alumni organisations andalumni of the Presidential Programme;in short everyone with close ties to theprogramme.At the conference, the Russian Govern-ment particularly emphasised the impactthe PP has had. Ivan Lobanov, DeputyDirector of the Executive Branch of theRussian Government, called the PP animportant tool in the development of en-trepreneurship in Russia and the creationof new jobs. Every year the programmehelps create up to ten thousand new jobs.Around 73,000young exec-utives fromRussia haveparticipated inthe Presiden-tial Programmeto date.GIZ: Mr Fedorov, 2012 marks the 15thyearofthePresidentialProgramme.Whatwere the goals and tasks in mind at thetime of its establishment, and what impor-tance was attached to the programme inthe course of the years since then?Andrey Fedorov: Since the start of theprogramme in 1997, Russia has takenhuge steps away from a socialist plannedeconomy to a market economy. Corre-spondingly, we were faced with the con-siderable problem of qualifying person-nel to meet the requirements. That wasthe reason why Boris Yeltsin, at that timePresident of the Russian Federation, es-tablished a state programme for trainingIn an interview on the occasion of the 15th anniversary ofthe Russian Presidential Programme for the training of ex-ecutives, Andrey Fedorov, Chairman of the Federal ResourceCenter, explains how Russia’s economy has changed in themeantime – and with it, the programme and its significancefor the country’s business culture.‘Beneficial forBoth Sides’Sergey Belyakov, Deputy Minister forEconomic Development in Russia, em-phasised that the PP promoted a changein mentality in the private sector and civ-il service.Germany, an important foreign Presi-dential Programme partnerRepresentatives of the programme’s tenforeign partners were also invited to at-tend. Hartmut Röben, Head of Divisionat the Federal Ministry of Economics andTechnology (BMWi) was invited to rep-resent Germany. In his speech he calledthe Presidential Programme a modelproject for promoting bilateral businessrelations. The ‘German contribution tothe PP’, implemented in Germany as theBMWi Manager Training Programme,is seamlessly linked to the training pro-gramme in Russia. Russian alumni canapply for practical training abroad, andso far one of every two applicants whohave decided to continue training abroadhas chosen to come to Germany. In totalover 5,000 executives have completedtraining in the German private sector.After returning to Russia, they have suc-ceeded in making their companies morecompetitive, established business rela-tions with German partners and foundedtheir own firms.Since 2006 the Russian Government hasalso invited representatives of Germancompanies to participate in training atRussian economic centres under the ‘Fitfor Business with Russia’ motto. Around275 German executives have taken ad-sAndrey Fedorovexecutives in order to organise domesticindustry. The programme was primarilydirected at managers from the middleand upper management levels workingin existing companies. They needed toacquire management knowledge andcompetencies in order to steer their com-panies through turbulent times and in-crease efficiency, first in their own enter-prises and then also in the entire Russianeconomy.What significance does the Programmehave in the Russian Federation?It is undoubtedly one of the most com-prehensive programmes, perhaps evenHartmut RöbenSergey Belyakov,Vladimir Simonenko,Ivan Lobanov (from left)s
    • PARTNER COUNTRIES PARTNER COUNTRIES30 JOURNAL 1 I 2013 31the most comprehensive programme,for training executives. This is reflectedin the interest shown by the regions, theregional governments and the respectivelocal business enterprises.Looking back, what role did the Presi-dential Programme play in the develop-ment of the economy and business culturein Russia?Our annual meetings with representa-tives of the regions, the universities andbusiness show that the level of competen-cies among skilled experts has been raisedand economic development as a wholeaccelerated through the Presidential Pro-gramme. With the aid of the Programme,we have trained a large number of exec-utives who possess the knowledge andcompetencies needed to lead a companyand who are able to communicate withbusiness partners at home and abroad.Feedback from our foreign colleagueswho offer our alumni practical trainingabroad confirms this. During the past fiveyears, the level of the management styleand business culture in Russia has beenraised considerably.Germany is one of the partner countriesof the Presidential Programme that of-fers practical training abroad for Rus-sian executives. What is your opinion onthe cooperation?Germany is the most important partnerof the Presidential Programme with re-gard to the number of practical trainingopportunities for executives: more than4,500 Russian alumni have already beento Germany! In return, over 275 Ger-man managers have visited the RussianFederation. This year, we are celebratingthe 15th anniversary of the cooperationwith Germany within the framework ofthe programme. I think the success isdue to the strong political support andthe pragmatic approach on the Germanside. And, naturally, individuals also playan important role: for instance, Dr GerdSchimansky-Geier, who led the Pro-gramme on the German side for manyyears, was very committed to the devel-opment of our partnership. Regular con-sultations within the scope of the Ger-man-Russian Steering Committee are afurther success factor. Here opinions canbe exchanged, questions discussed con-cerning modernisation, and plans madefor the future.Has the cooperation between Germanand Russian companies within theframework of the Presidential Pro-gramme changed during the years of itsexistence?During the first ten to twelve years, Ger-many supported us with humanitarianaid with an emphasis on goods and ed-ucation. At that time, Russia was seenmore as a recipient of goods and services.The economy was poorly developed, andthere were fewer opportunities for exten-sive cooperation. Since 2010, the empha-sis has moved to economic cooperation.This process is beneficial for both sides.Now, companies in both countries arecooperating more closely and even con-duct joint research. In this way, we havegenerally reached a higher level of coop-eration.What is your assessment of the prospectsof the Presidential Programme for thecoming years?At the celebrations for the 15th anniver-sary of the Presidential Programme, theMinistry of Economic Development ofthe Russian Federation as the state sup-porter emphasised the necessity of theprogramme, which meets with supportin all regions of the country. All are of theopinion that the programme is necessaryand should be continued. At the sametime, it is clear that it needs to be mod-ernised. The priorities for the next twoyears were announced at the committeemeeting in April 2012:more project-ori-ented formats and modern methods forconveying content.In addition, we wantto involve entrepreneurs and executiveswith practical experience more intenselyin the programme. Besides that, our aimis to expand practical training abroad ac-cording to the priorities of the partnersboth in the Russian Federation and inthe other countries.We are grateful to ourcolleagues abroad, and particularly thosein Germany, for their active participationin these processes.Mr Fedorov, thank you for the interview!ssDay of German Business in TurkmenistanAshgabat. The Day of German Businessin Turkmenistan took place in Ashgabaton 21 November 2012. It was alreadythe second event of this kind and theorganisers, the German Federal Ministryof Economics and Technology (BMWi)and the German Business Associationfor Central Asia intend it to become oneof several business days regularly takingplace in the region.The event had several main themes. Theyincluded experience reports on businessand investment opportunities in Turk-menistan, matters concerning financingpossibilities for German exports andinvestments, energy and education andtraining measures as the key to econom-ic development. These contributionswere met with interest, not only fromthe representatives of the ministries andassociations. German companies alreadyin Turkmenistan took the opportunityto draw attention to their offers. OtherGerman manufacturers and service pro-viders sent employees to Turkmenistanfor this event with the aim of soundingout their chances on the market there.The range of industries represented wasrelatively broad, with companies fromthe mechanical engineering sector in-cluding manufacturers of agriculturalmachinery, the transport and logisticssector, medical diagnostics and fromtrade and services. Besides the exchangeof opinions and information on the men-tioned subjects, the Business Day provid-ed an opportunity for making contacts.A number of German companies had setup stands for that purpose.The Manager Training Programme of theBMWi was also included in the BusinessDay. Dr Angela Leeke, project manag-er at GIZ, introduced the Programmein her speech, and 20 alumni from theProgramme took the opportunity toestablish contacts with German compa-nies. Among them was the scaffoldingcompany Wilhelm Layher GmbH & Co.The Day of German Business in Turkmenistan attracted German representatives and numerouslocal businesspeople.vantage of this opportunity and estab-lished business contacts with companies,administrations and political entities.The programme has thus become a trueexchange programme. Hartmut Röbenviewed this as proof of an equal bilateralpartnership. The years of close coopera-tion with alumni organisations in manyregions of the country are also an import-ant element of the programme. Germanyis the largest and most important foreignPresidential Programme partner. Addi-tional foreign partners that offer trainingfor PP alumni include Japan, the Nether-lands, Finland, France, Norway and theUSA.At the conference Sergey Belyakov un-derlined Germany’s role in the PP: ‘I amgrateful for our work together. Germanyis our most important partner in Europe.’Galina Mahakova, Head of Departmentat the Russian Ministry for EconomicDevelopment and responsible for imple-menting the PP, emphasised that the PPis the only Russia-wide programme thathas been around for 15 years. At the con-ference she announced that, thanks to theexceptional results regarding developmentintheregions,thePresidentialProgrammewould continue in the future.Company visitAshgabatKG represented by Viktor Klein. Thismanufacturer of high-quality scaffold-ing systems has a market share of over 60per cent in Germany. In Ashgabat, Kleinconducted negotiations with the build-ing contractor Ishanguly Faysullaev, whohas already participated in various GIZafter-contact events in and outside Turk-menistan.Two further events took place close tothe date of the Day of German Business.The agricultural machinery manufactur-er CLAAS opened a training centre inAshgabat to offer Turkmen farmers com-prehensive information on the optimaluse of the machinery. For example, theexport of machinery is accompanied bythe training of technical employees.The consulting company COMMITTorganised a trip for 21 German com-pany representatives on behalf of theBMWi. In addition to the Day of Ger-man Business in the capital Ashgabat,the programme for this group includeda visit to the port and industrial hubTurkmenbashi on the Caspian Sea and ameeting with Basimmyrat Hojamamme-dov, the Turkmen Minister of Economyand Development.
    • PARTNER COUNTRIES PARTNER COUNTRIES32 JOURNAL 1 I 2013 33Training Executives fromRegional EconomicAdministrations in UkraineIn contrast to the other partner coun-tries, the Manager Training Programme(MP) in Ukraine is supported withtwo partial programmes for special tar-get groups. One of these programmestrains management trainees from theUkrainian Government (see article onpage 24). The other programme is direct-ed at the regional economic administra-tions in Ukraine, which are comparablewith the ministries of economic affairs inGermany’s federal states. About 200 par-ticipants from almost all Ukrainian re-gions completed this programme for ‘thetraining of executives from economic ad-ministrations in the Ukrainian regions’.At the end of last year, the programmesuccessfully came to a close with a con-ference in Kyiv. The programme was co-ordinated by GIZ in cooperation withthe German Federal Ministry of Eco-nomics and Technology (BMWi) andthe Ministry of Economic Developmentand Trade of Ukraine. The conference inKyiv served to document the results inthe pilot regions. Besides the programmeparticipants from ten Ukrainian regions,the conference was also attended by ElenaNizhnik, Director of the Department forRegional Policy and International Coop-eration within the Ministry of EconomicDevelopment and Trade of Ukraine, andGIZ project manager Isolde Heinz. Thesuccessful cooperation is documented innumerous projects within the frameworkof the programme.Particularly in the past two years, the ex-ecutives from regional economic admin-istrations were supported in carrying outimportant activities in their respectiveregions. In the course of the decentrali-sation of the administration, the govern-ment requested the Ukrainian regions todevelop and implement their own strat-egies for gaining investors. The objectiveis to position them among national andglobal competition through profession-alised location marketing/branding.Based on this, pilot projects were startedwith the aid of the programme in selectedregions of the country and implementedwith experienced experts from Germa-ny and Ukraine in cooperation with therepresentatives of the regional economicadministrations. The common denomi-nator in all projects was the developmentof a strategy for marketing the regionand increasing its competitiveness. Threeexample projects are described in detailbelow:PoltavaThe project participants from the regionof Poltava determined two focus indus-tries: The automotive industry and ag-riculture. Dmitry Leta has been activelyinvolved in the project since 2008. Hehelped to build up the ‘Regional Centrefor Investment and Development’, theagency for the economic promotion ofthe region of Poltava, and took over itsmanagement in 2010. Both the strategyfor gaining investors and the presentationmaterials for the marketing of the regionwere drawn up through the programme.The reward: two investment agreementssigned in 2012. His vision is for Poltavato become a key player in the automotiveindustry. GIZ helped establish contactwith N-Global, the foreign-trade supportinstitution in Lower Saxony, and WOBAG (Wolfsburg). Sights are set on a busi-ness trip to Poltava for component sup-pliers for the automotive industry.Furthermore, the economic adminis-tration of Pyriatyn (region of Poltava)started an image campaign in 2011 tomake the producers of foodstuffs in theregion better known nationally and in-ternationally and to establish them as amark of quality. The campaign is titled‘Pyriatyn Basket’ and goes back to a sim-ilar marketing tool from Lower Saxony,the so-called ‘Niedersächsische Genuss-box’ (an assortment of regional qualityproducts). The ‘Pyriatyn Basket’ givespotential business partners, includingthose abroad, an exact idea of the eco-nomic possibilities and resources in theregion. The pilot phase was successfullycompleted. As a second step, the workinggroup ‘Pyriatyn Invest’ was establishedand entrusted with the expansion ofthe campaign. Irina Soldatova, head ofthe department for economy and infra-structure in the district administration ofPyriatyn in the region of Poltava sums upthe programme: ‘The application of newcontrol and planning tools was a chal-lenge for us. We had to break out of fa-miliar thinking patterns. The project par-ticipants can well remember how strangethey found the procedure in the begin-ning: the objective strengths/weaknessesanalysis of the region’s resources, valuecreation chains and the identification ofunique features that distinguish us fromother regions. We overcame all of thesedifficulties and eventually were able tocreate a basis for investment projects andadapt to modern methods of communi-cating with our investors. We organised aseries of presentations on the location aswell as business meetings.’KhmelnytskyiTo learn from the experience and theknowledge of professionals and use it tocreate modern tools for increasing thecompetitiveness of their region – thatwas what the executives from the eco-nomic administration in the region ofKhmelnytskyi wanted to achieve. ‘Thecomprehensive European approach tolocation marketing is reflected in thestrategy paper on the regional develop-ment of the Oblast Khmelnytskyi for theyears 2011–2020 and the implementa-tion plan for the years 2011–2014. Thereare special projects for creating a positiveimage for the region, both for investorsand consumers. The image campaign in-cludes the development of a trademark.In this respect, the participation in theGIZ project came just at the right timeand was extremely productive,’ stressesMariya Khomenko, first deputy head ofthe economic administration of the re-gion of Khmelnytskyi.The concept of a trademark for the re-gion was worked on within the scopeof the project. An initiative group with20 participants presented a concept forthe regional trademark for the OblastKhmelnytskyi and drew up a suggestionfor visualisation and a logo. Further stepswere set out on this basis to establish theregion of Khmelnytskyi as a trademarkthroughout the country.‘The participation in the programme wasa special addition to the professional ca-reers of all the participants. The projectparticipants experienced the wisdom ofthe old business saying that ‘good rela-tions are everything’ first-hand. Thanksto the GIZ project, they have really be-come like-minded and have establisheda Facebook group. This circle of peoplewho found each other through the proj-ect is a unique social group; all membershave a common interest and are follow-ing a common goal: to help their homeregions flourish. ‘Without a doubt: thecompletion of the project does not meanwe will lose touch; we have learned toappreciate it even more,’ project partic-ipants Viktoriya Parkhomec, TatyanaPshedzyal and Aleksandr Kryzhanovskyfrom the region of Khmelnytskyi stress.FeodosiaFor the city council of Feodosia, situatedon the picturesque Black Sea coast, themost important aspect was developingmeasures to extend the tourist season.The idea of having a wine festival wasdeveloped as a practical example withinthe scope of a pilot project. The event wasintended as a tool for promoting region-al economy. The city council of Feodosiahas already invited citizens, tourists andwine producers from Ukraine and abroadfor the second year running and has beensuccessful in marketing itself as a wineand tourist location. In the Crimeancompetition ‘Success of the Year’ in April2012, the ‘WineFeoFest’ in Feodosia wasawarded the second prize in the category‘Best Image Project’. A handbook on thesubject of ‘event management as a toolfor marketing and regional economicpromotion’ will be published this year.The processed results of the pilot proj-ect are recorded in it in order to share itssuccess story with other interested re-gions.www.facebook.com/groups/122292944597716/Training executives from regionaleconomic administrations in UkraineThis training is helping to reinforce the im-pact of the Manager Training Programmeand promote economic cooperation be-tween Germany and Ukraine. Employeesat the regional administrations gain exper-tise on tools for the economic promotion,marketing and branding of a region aswell as on location-based requirements.One important factor for creating a pos-itive investment environment in a regionis having qualified and client-orientedcontact partners for the investors. Thetraining programme serves to strengthenthe institutional capacities of the regionaleconomic administrations. On one hand,this is achieved by consolidating andexpanding the technical knowledge of theyoung executives on regional economicpromotion and regional location market-ing, and on the other through targetedtraining on and application of modernregional economic development tools inorder to carry out priority tasks in theirregions.Eugenia Strube
    • IN FOCUS IN FOCUS34 JOURNAL 1 I 2013 35In Focus:The Health SectorsHealth – An Export BoomThe German Government isincreasing the efficiency ofthe German health sector– with the aim of ensuringdomestic supply and contrib-uting to the development ofglobal healthcare provision.Berlin. Germany has one of the world’sbest healthcare systems. Those covered byhealth insurance in Germany benefit inthat they can freely choose the doctor, thehospital and the health insurance schemethat they trust. They know that every-thing that is medically necessary is un-dertaken for the sake of their health. Pa-tients appreciate the German healthcaresystem, as do many foreign governments.The latter rely on German know-how tohelp with the creation and developmentof their healthcare systems because it hasbeen proven time and again that a func-tioning healthcare system provides socialsecurity and satisfaction.Despite all this praise for healthcarein Germany, challenges are also easy tospot. Its ageing population and progressin medical technology require a more ef-ficient use of medical resources. For thegood of the patients and those insured,the healthcare system is therefore mov-ing towards morecompetitive sys-tems. Germany isgaining experiencefrom further devel-oping its healthcaresystem and other countries that intendto carry out the same developments willbenefit from this in the future.International Recognition for the Ger-man Healthcare IndustryThe German health sector is granted akey function in this process. With theirhigh levels of innovation and excellentquality, the manufacturers of healthcareproducts and providers of healthcareservices are making a significant contri-bution to maintaining a financially fea-sible and efficient healthcare system inGermany. The German health sector is asuccess story. It doesn’t just prove its ef-ficiency at home; it has also been doingso abroad for decades. It has thereforebeen a driver of growth and employmentfor the German economy. The health sec-tor contributes more than ten per centof Germany’s annual gross value added.Every seventh member of the workingpopulation is employed in the industry.In this way, the healthcare industry alsomakes a significant contribution to eco-nomic prosperity.In addition to approximately 2,000 hos-pitals, practitioners and health insurancefirms, the health sector also includescompanies. Their innovations from med-ical technology, as well as pharmaceuticaland biotechnology, play an importantrole. All three sectors are recording annu-al increases in turnover, not least as a re-sult of their product development. Whatis impressive is the pace of innovation;products that are less than three years oldgenerate about a third of the turnover inmedical technology.Another driving force behind the successof medical technology is the many smalland medium-sized enterprises (SMEs),which, along with some large-scale en-terprises, form the innovative backboneof the sector. Thanksto their ingenuity,diligence and reli-ability, they createextremely innova-tive products thatare in huge demand worldwide. With anexport share of almost 70 per cent, Ger-man medical technology manufacturersare often at the top of the internationalmarket. These champions played a deci-sive role in the creation of German engi-neering’s excellent reputation. Thereforethe German Federal Ministry of Eco-nomics and Technology (BMWi) made‘Health- Made in Germany’ the umbrellabrand for its health sector export initia-tive. The objective of this export initia-tive is to use transparent information tobring German exporters of health sectorproducts and services closer to their cus-tomers and potential customers aroundthe world.Last year approx. one in every six euros inthe health sector was generated abroad,and global demand remains high. Thisis why the health sector export initiativeis closely linked to Germany Trade &Invest’s network of correspondents, as
    • IN FOCUS IN FOCUS36 JOURNAL 1 I 2013 37Hamburg. In addition to doctors andspecialists from hospitals and clinic man-agement, the group also included repre-sentatives from production companiesfrom the fields of biotechnology andmedical technology along with medicaltechnology wholesalers and IT serviceproviders. The industry-specific interna-tional approach is a further developmentof the existing cross-industry nationalgroups. ‘The participants motivated oneanother and hit it off from the outset.The fact that we conducted intercultur-al training at the start of the Programmehelped them to focus on the commonattributes rather than the differencesamong the participating nations. This so-cial and intercultural learning within thegroup is an important new componentthat will greatly enrich the Programme,’explains COGNOS project manager DrJulia Moritz.well as the German Chambers of Com-merce abroad. It also adds to the supportmeasures, which have been successfullyimplemented for years by BMWi to pro-mote foreign trade. These include, forexample, programmes to open up mar-kets as well as participation in trade fairsabroad.An important part of foreign tradepromotion is the Manager TrainingProgramme (MP). It serves to specifi-cally familiarise foreign managers withthe economy and culture of Germanythrough a sponsored trip. The contactsmade in the Programme often developinto deep ties, which benefit both sides.For two years, special training pro-grammes have been provided for manag-ers in the health sector within the frame-work of the MP, and these programmesvisit German clinics, medical technologymanufacturers and other companies inthe German health sector. Demand forthese special programmes is so high thatthey are constantly being expanded.Sharing Success with Other CountriesInnovations from Germany are notbrought about by strokes of luck or coin-cidences but by strategy. Thethree main factors for suc-cess in boosting innovationin Germany are improvingcompetition in the econo-my, increasing the efficien-cy of the health system anddeveloping innovativenessin research, as the nationalstrategy process ‘Innovationin Medical Technology’ hasshown. A favourable nation-al environment for innova-tion also requires extensivecooperation from the political adminis-tration.Therefore, the different Federal Minis-tries in Germany work closely together,including the Federal Ministry of Eco-nomics and Technology, the FederalMinistry of Health, the Federal Ministryof Education and Research and the Fed-eral Foreign Office. This enables the co-ordination of work aiming to boost thehealth sector to make the performancelevels of participating compa-nies as efficient as possible.The health sector’s role is toprovide a service. Lots of peo-ple around the world want tobe protected from illness and– in the event of illness – theywant a cure or at least to havetheir suffering eased. Germa-ny has managed to create anexcellent, innovative health-care system for the whole pop-ulation. The German healthsector can, and should, share a piece ofthis success with other countries throughits products and services.More on the BMWi Export Initiative’sumbrella brand at:www.health-made-in-germany.comsWith an ex-port shareof almost 70per cent, Ger-man medicaltechnologymanufacturersare often atthe top of theinternationalmarket.Medical technology at Otto Bock inBerlin and Dräger in LübeckAt the Otto Bock Science Center inBerlin, participants experienced either avirtual tour of the town centre or real-lifebasketball game in a wheelchair. Thebionics company focuses on practicalhigh-tech mobility: experimentation isexplicitly encouraged. The Science Cen-tre draws attention to the issues of peo-ple with restricted mobility while at thesame time showcasing the possibilitiesof modern-day medical technology. Thebuilding, which has a view of the Bran-denburg Gate, catches the eye with itsfaçade that was inspired by muscle fibres.Otto Bock was established in Berlin in1919 and today coordinates its businessrelations with customers from aroundthe globe from Duderstadt in southernLower Saxony. During their visit, it be-came clear to the health care managersthat despite all the technology, the focusremains firmly on the people.According to the motto ‘Technology forlife’, Dräger from Lübeck in north Ger-many focuses on medical and safety tech-nology, whereby two thirds of companyturnover is generated with medical tech-nology. The portfolio includes everythingfrom firefighting equipment to incuba-tors for premature babies. During theirvisit, the group learned about the historyof the 120-year-old company as well asabout its current production. The healthcare managers inspected the quality con-trol system for anaesthetic equipment,which includes a test centre. They wereamazed at just how many of the ultra-modern pieces of equipment are still as-sembled by hand. They subsequently sawthe anaesthetic equipment in use at theuniversity clinic, and learned how closelythe doctors work with Dräger – alwaysaiming to enhance the equipment. Oneintercultural highlight was the trip to thetraditional Christmas market in Lübeck’sold town, where the participants sampledLübeck’s famous marzipan.Meet and network with colleagues atcooperation exchanges and at MedecaIn addition to group visits to manufac-turers of medical equipment and clin-ics in which day-to-day usage could beobserved, the itinerary also includedindividual company visits. Particularlythe contact with German small and me-dium-sized enterprises (SMEs) provedinteresting for the participants, as theyoften are not represented in their homecountries. Some had already researchedtheir desired contacts online in advance,and the individual visits were arrangedby COGNOS. In Hamburg and Berlin,cooperation exchanges with Germancompanies from the health care indus-try were arranged specifically for thisgroup. One advantage of the coopera-tion exchanges with international groupsis that the German companies not onlymeet participants from one single coun-try but are able to cover several differentmarkets at once in an afternoon. This isparticularly interesting for SMEs, whichdo not have the capacity to attend manydifferent networking events. For ex-Kahan Shah (second from left)at Universitätsklinikum LübeckIn November, COGNOS International played host in Hamburg toa multinational group from the health care industry within thescope of the Manager Training Programme (MP) for the firsttime.The 20 participants were from Belarus, India, Kyrgyzstan,Russia, Uzbekistan and Viet Nam.Managers from Six Countries with AbundantTeam Spiritample, DST Diagnostische Systeme &Technologien GmbH, a manufacturer ofin-vitro diagnostics for food intolerancesfrom Schwerin, was able to speak withpotential sales partners from Viet Nam,India and Belarus during the cooperationexchange in Hamburg.The health care managers were able to es-tablish myriad new contacts during thetwo-day Medica international trade fairin Düsseldorf, which is the largest eventin the world for the medical industry.Kahan Shah from Ahmedabad in west-ern India found that good preparationwas particularly crucial for such businesscontacts. He is the Marketing Direc-tor at Kensure Healthcare, a providerof medical technology for laboratoriesand blood banks that focuses on quali-ty and service. To prepare for the events,he delivered a short presentation abouthis company, which was extremely wellreceived by the German companies pres-ent. He said, ‘When you are successful inyour home country, it certainly does notmean that this will also be the case in an-other country. The German approach tobusiness is very different to that in India.Thanks to the preparation provided inthe Programme, I did not encounter anyintercultural difficulties.’ Sheenu Jhawar,who runs several hospitals in Jaipur inwestern India, advocated for the train-ing of Indian doctors in Germany. ‘Theeducation is first-class and the studentsfamiliarise themselves with Germanequipment, which is then often used inIndia as well.’Despite all the differences, the atmo-sphere and team spirit within the inter-national group was excellent. During anevaluation, the participants emphasisedjust how much they had learned fromone another. Another positive side-effectwas the establishment of business con-tacts among the participants from differ-ent countries. Shah reported of businessplans with Programme participants fromRussia and Viet Nam, for example. Thegroup grew so close during the four-weekstay in Germany that they plan to meetup again in India at their own expenseat the end of 2013. Until this time, theywill remain in contact via their own Face-book group, ‘1st-International-health-care-group-for-Cognos’.Christian Lipicki / Dr Hilda Joffe, BMWiPlease DO touch! – Medical equipmentin Otto Bock Science Center in Berlin
    • IN FOCUS IN FOCUS38 JOURNAL 1 I 2013 39China14.05.–16.05.2013HongKong/SARHKTDC HK Int‘l Medical Devicesand Supplies Fair16.08.–18.08.2013 Beijing CHINA-HOSPEQ/SINOMED – InternationalMedical Equipment & Facilities Exposition andSymposia 25.09.–26.09.2013 Shanghai MEDTEC China10.10.–12.10.2013 Beijing C&R Expo China – Care & RehabilitationExpo ChinaOctober 2013 New Delhi Medifest – Medical and Healthcare Exhibition27.06.–29.06.2013 Tashkent InterMedPharm Uzbekistan03.10.–05.10.2013 Taschkent UZMEDEXPO – International Exhibitionfor Healthcare17.09.–19.09.2013 Baku BIHE – International Healthcare Exhibition22.10.- 25.10.2013 MinskMedicine & Health – Int‘l Exhibition of Elec-tro-Medical Equipment and Medical Engineering22.05.–24.05.2013 Novosibirsk MEDSIB.SibDent – International Exhibition andConference for Medical Technology, Pharmaceu-ticals, Laboratory Technology, Dental Technolo-gy, Ophthalmology, Laser and Visual Aids01.10.–04.10.2013 Irkutsk Sibzdravookhranenie – Siberian Health Care– Specialized Exhibition of Medicine, MedicalEquipment, Services and Pharmaceuticals09.10.–11.10.2013 St. Petersburg HOSPITAL – International Medical TechnologyTrade Fair16.10.–18.10.2013 Kazan Health Industry Kazan (formerly Volgazdrav-expo) – International Medical Trade Fair16.10.–18.10.2013 St. Petersburg MEDIZ – International Medical Fair & CongressProducts, Equipment, Services & Technologies forHospitals, Policlinics, Laboratories, Health Clinics,Medical Offices and Wellness25.11.–28.11.2013 Moscow PharmTech/CosmoTech – International Trade Fairof Pharmaceutical and Cosmetic Manufacturing09.12.–13.12.2013 Moscow ZDRAVOOKHRANENIYE – InternationalTrade Fair for the Health Sector, MedicalTechnology21.08.- 24.08.2013 Ho Chi Minh CityVIETNAM MEDI-PHARM EXPO – Interna-tional Medical and Pharmaceutical Exhibition18.09.- 21.09.2013 Ho Chi Minh CityPharmed & Healthcare Vietnam – VietnamInternational Exhibition on Products,Equipment, Supplies for Pharmaceutical,Medical, Hospital & RehabilitationViet NamRussiaUzbekistanAzerbaijan09.05.–11.05.2013 Cairo EGYMEDICA – International MedicalExhibition and Exhibition for HospitalsService MarketingEgypt18.09.- 21.09.2013 Düsseldorf EXPOPHARM – International PharmaceuticalTrade Fair20.11.- 23.11.2013 DüsseldorfMEDICA–WorldForumforMedicine–Inter­nationalTradeFairandCongress(withCOM-PAMED–InternationalTradeFairforHightechSolutionsforMedicalTechnologyuntil22.11.2013)GermanyFurther trade fairs in Germany at www.auma.de15.05.–17.05.2013 Almaty KIHE – International Healthcare Exhibition22.10.–24.10.2013 Astana Astana Zdorovie – International KazakhstanExhibition on Healthcare Kazakhstan10.09.–13.09.2013 Chisinau MoldMedizin & MoldDent – InternationalSpecialized Exhibition for Medical, Laboratoryand Dental Techology, Pharmaceuticals, Ophthal-mology and Hospital EquipmentMoldova22.10.- 25.10.2013 Kyiv PUBLIC HEALTH (UKRAINAMEDICA) –International Exhibition and Conference forMedical Technology, Pharmaceuticals, LaboratoryTechnology, Dental Technology, Ophthamology,Laser and Visual AidsUkraineBelarusIndiaTrade fairs on the topic of healtheconomics in the MP partner countries
    • IN FOCUS IN FOCUS40 JOURNAL 1 I 2013 41International Exchange onHealth ManagementExecutives from Russia and Kyrgyzstan attended training in Germany with a focus on the healthsector from 6 November to 1 December 2012, where they learned a great deal about healthmanagement in Germany and innovations in healthcare.Valuable contacts and business initiativesrounded off the experts’ trip.Olga Gilyova, Editor-in-Chief of the magazine ‘Rossijskij Lider’,came to Germany with an international group of 21 doctors whowere in Baden-Württemberg at the end of 2012 for trainingfocused on the healthcare industry. In her guest article, sheoutlines the participants’ impressions.Stuttgart/Berlin. ‘It’s a rare occasionfor doctors and economists to havesuch lengthy, productive discussions,’ re-marked a Russian participant with a winkat the end of the seminar entitled ‘TheHealth Sector in Germany’, which tookplace at Baden-Württemberg Interna-tional (bw-i) in Stuttgart on 12 Novem-ber. Speaker Heiko Schellhorn returnedthe compliment and was impressed by thegreat interest shown by the participatingexecutives from Russian and Kyrgyz hos-pitals and other medico-social establish-ments. The economist, who focuses onthe health sector, and who, among otheractivities, advises international medicaltechnology and pharmaceutical firms,rarely gave seminars lasting a whole daywhere the audience remained so engagedright till the very end. There were sev-eral questions and discussions, whichStuttgart/Berlin. During our training,we had the opportunity to get to knowGerman companies from the healthcareindustry and we also gained insight intothe history, economy and living con-ditions in Baden-Württemberg, one ofbest-performing regions in Germany. Inclinics in Southern Germany, as well asin Berlin, Brandenburg, Bernau, etc., theexecutives from Russia and Kyrgyzstanlearned about logistics, rehabilitationstructures, IT and image management.The intensive work done during our stayand the results of this work are a clearindication of the need for continuingcooperation between the countries. ‘Is-sues concerning the healthcare system inGermany are not all that interest us,’ saidOlga Beryosikova, Chief Physician atthe Kemerovo region’s state-run hospice.‘For example, we learned about intercul-tural relations in another country. Theexpertise and experience we acquired inRussia can be compared tangibly to thisnew knowledge. This allows us to usenew technologies and management toolsin our own field of work.’ According toIgor Patshgin, Director of the Compul-sory Medical Insurance Fund in Kemero-vo: ‘This trip is the perfect culminationof the Presidential Programme. Firstly,we acquired knowledge, then, we sawhow this is implemented in practice. Inaddition, thanks to our managementexperience, we can gauge what we couldtake on from abroad and how we can de-velop what we already have.’Participants also benefited from the in-ternational nature of the group. ‘Thistrip gave me a valuable opportunity toexchange ideas and experiences with mycolleagues from Russia,’ reports ZhyldyzAbdubaliyeva, Deputy Director of thechildren’s clinic in Osh in Kyrgyzstan.‘On comparing our healthcare pro-grammes, I discovered many similarities.However, the healthcare system in Ger-many is completely different. Not every-thing could be introduced in Kyrgyzstanbut there are interesting elements.’The value of such cooperation cannotsimply be measured in newly-acquiredknowledge, initiated contacts or eco-nomic factors. Each of us got to knowGermany and its people better duringour trip and we learned how to betterunderstand them. The friendliness andopenness of the organisers, the host en-trepreneurs, the trainers, and even thepeople on the streets and in hotels andshops touched our hearts.brought the numbers and statistics tolife. The seminar gave an overview of theGerman healthcare system and servedas preparation for later visits to clinicsand medical technology companies. Al-together, the group comprised 21 exec-utives, 18 of whom came from differentregions of Russia, and three from Kyrgyz-stan. On the German side, 80 companiesand hospitals from eight German regionswere involved in the Programme.Similarities in the Healthcare Systems –with Significant LimitationsIt was essential to carry out a compari-son of healthcare data at the very begin-ning. In some areas, the structures of theRussian and German healthcare systemsare similar. The number of doctors per100,000 residents is 36 in Germany; inRussia it is a little higher at 43. The num-ber of hospital beds per 10,000 residents isalso not remarkably different: in Germanyit is 82, in Russia 97. However, concretefigures on healthcare expenditure showwild fluctuations: Germans pay USD4,219 per person, a Russian patient onlypays USD 1,043 – in Kyrgyzstan onlyUSD 148. Schellhorn explained these fig-ures extensively and discussed them withthe international guests, as well as thecomplicated network of health insuranceschemes, associations of statutory healthinsurance physicians and state regulatorsas the most important players in the Ger-man authorities.As the participants from the industrygroup ‘Health Sector’ mainly consistedof chief physicians and clinic heads fromRussia and Kyrgyzstan, German experi-ences in the field of funding healthcareservices were of interest:n How is the price for treatment in hos-pitals calculated?n In general, how is the duration of stayworked out?n How are patients treated who have noinsurance and therefore cannot pay forthe required treatment?SMEs as the Backbone of German Med-ical TechnologyDuring the one-month trip, the wholegroup visited twelve of these SMEs.The number of individual meetings wasmuch higher. Giants of the industry likeDrägerwerk, Erbe Elektromedizin andKarl Storz GmbH were also part of theprogramme and impressed participantswith their technologies. Then there werenew discoveries like the firm Optimedwith products for minimally-invasivetherapies.A highlight of the Programme was theone-day visit to the trade fair MEDICAin Düsseldorf, the biggest event in theworld for the medical industry. The Pro-gramme participants were not only sat-isfied with the high number of businesscontacts they made; they were especiallypleased with the high quality of thesecontacts. During their stay in Germany,several trade negotiations were initiated,invitations were issued, pre-contractsdrawn up and concrete follow-up meet-ings were planned with German com-panies. In the opinion of both partners,the future cooperation holds significantpotential. From technical amendmentsand medical exchange to joint scientificprojects, the opportunities for coopera-tion are highly varied. Verena FreynikOlga GilyovaInsight into the GermanHealthcare SystemOlga Gilyova
    • IN FOCUS IN FOCUS42 JOURNAL 1 I 2013 43Partners with CommitmentHealth SectorVitamins for theExport BusinessEmil Samedov brings cutting-edge medical technology andGerman business culture to Azerbaijan by conducting businesswith German specialised medical companies.In its role as a central pointof contact, the Health SectorExport Initiative supportsGerman entrepreneurs intapping new markets in thegrowing healthcare market.Baku. ‘The German medical technologymarket is the biggest in Europe and thethird biggest worldwide. Alongside largecorporations, there are also a huge num-ber of small and medium-sized enterpris-es whose products we find particularlyinteresting. I wanted to establish con-tact with them,’ explains Emil Samedov,Executive Director of the AzerbaijaniMedisis LLC. The company was found-ed in Baku in 2005 and sells medicalproducts required by hospitals, labora-tories and doctors’ practices. In doingso, Medisis depends on quality productsfrom abroad, which up until 2010 theyobtained from Turkey, the EU and oth-er countries. As they intended to addhigh-quality products from Germany totheir portfolio, the managing director ofthe small firm participated in the Manag-er Training Programme (MP) run by theGerman Federal Ministry of Economicsand Technology (BMWi) in the summerof 2010 in Germany. The month-longtraining course was conducted by theCologne Training Centre Carl Duis-berg Centren GmbH. ‘I was delighted tobe able to speak English everywhere inGermany and be understood. Comple-mented by interactive and practice-basedtraining events, the Programme helpedme to create reliable and strong contactsThe prognosis looks good: If currenttrends continue, the worldwide health-care market will grow from almost USD6 trillion today to USD 20 trillion by2030. More and more people are spend-ing more and more money on theirhealth, which means that this market isdeveloping more than other industries.Demographic changes and technologicaladvances also play a role. In the ageingsocieties of the Western industrial na-tions, the need for medical products andservices is growing. At the same time,lifestyle diseases and chronic diseases arebecoming more frequent in emergingcountries and German companies havebeen specialising in these diseases for de-cades.As one of Germany’s most importantindustries, companies in the health sec-tor account for ten per cent of the grossdomestic product. It is one of the biggestemployers, accounting for 13 per centof employment. There is still a lot of un-tapped potential in exports. In 2008, theshare of the health sector in all Germanexports was just six per cent.with German companies,’ reports Same-dov on his experience.Exclusive Contracts with Leading FirmsHe managed to achieve his goal of sign-ing exclusive contracts straight awaywith three German firms. He establishedpartnerships with Endo-Flex GmbH, aproducer of endoscopy instruments fromVoerde in the Lower Rhine area, ZimmerMedizinSysteme GmbH, a manufactur-er of innovative diagnostic and therapytechnology from Neu-Ulm, and AAPImplantate AG, which produces bioma-terials and orthopaedic implants in Ber-lin. Samedov landed W. Söhngen GmbHfrom Taunusstein-Wehen in Hesse as asupplier of first-aid products.CooperationwithpartnersinBerlindevel-oped at a particularly intense pace. A fewmonths after the training, Samedov cameto Germany once again and took part inthe Berlin firm’s training programme forproduction. In September 2010, Medisispresented selected products by its newpartners at the international medical tradefair in Baku. Cooperation has grown inrecent years and Medisis is now an exclu-sive partner for the distribution of bioma-terials in Azerbaijan. Cooperation withW. Söhngen GmbH has also intensifiedand stabilised. ‘By taking part in the Pro-gramme I managed to increase the shareof German products in the product rangefrom 0 to up to 20 per cent in parts. Thisalso had a positive effect on sales figures,which have risen by some 10 per cent since2010,’ Samedov says proudly.Integrating Elements of German Cor-porate CultureA successful entrepreneur thinks global-ly. ‘We don’t want to only import Ger-man medical technologies to Azerbaijan,we also want to find out how we can in-tegrate elements of German business cul-ture into our company’. The MP’s prac-tice-based advanced training moduleshelped him to achieve this. Samedov ishappy to share the secrets to his successwith future participants: ‘Write downyour actual goals beforehand. Researchthe German companies that interest youonline, contact them in advance anddraw up a plan for the month to makethe most of your time in Germany. Everyminute can be as valuable as a diamond.’At the end of 2012, Samedov attendedthe international MP alumni conferencein Kazakhstan along with nine othergraduates of the Programme from Azer-baijan (see article on page 46). Makingcontact and exchanging with other alum-ni was particularly useful for him. Justas important were his newly-acquiredknow-how and ideas developed at theconference. He maintains the contacts heestablished in Almaty through a groupon a social media network.In the coming years, the manager intendsto continue developing his company, toincrease its number of employees and toexpand the product portfolio. Features ofGerman business culture such as punctu-ality, time management and promotingemployee qualification are important tohim in this work.www.facebook.com/groups/548211598538616/Emil Samedov (second from left) withemployees from Medisis LLC in BakuThis is where the German Federal Min-istry of Economics and Technology’sHealth Sector Export Initiative comesin. Firstly, all German foreign trade pro-motion activities are centrally integrat-ed and pooled (see box on the right).The export initiative markets Germanyas a location for quality and innovationunder the slogan ‘Health – Made inGermany’. In addition, it initiates andcoordinates flanking political measuresto improve basic conditions on the mar-kets. Germany Trade & Invest is respon-sible for its implementation. The focalpoint of the initiative is the bilingualinternet portal www.exportinitiative-ge-sundheitswirtschaft.de, which provides abroad range of information and services.Market studies on target markets world-wide examine political and economicconditions. An event calendar, as well aspoints of contact in ministries, Bunde-sländer and associations, offer additionalassistance.sDilraba Kasimova (left) from Uzbekistanat Universitätsklinikum LeipzigKarin Weber
    • IN FOCUS IN FOCUS44 JOURNAL 1 I 2013 45On the English language internet por-tal www.health-made-in-germany.com,foreign customers, partners and opinionleaders learn why it’s worth cooperatingwith suppliers from Germany. Four work-ing groups implement an array of individ-ual projects, which involve 14 associationsfrom the pharmaceutical industry andmedical technology, medical biotechnol-ogy, telemedicine and healthcare services.For example, the working group sets upmedicine projects for the growth marketsof the Russian Federation and India. TheRussian healthcare market holds greatopportunities for the German pharma-ceutical industry. In the past, the Russian Jürg Beutler, gtaiMelanie Volberg, GTAIMelanie Volberg, GTAIadministration often surprised Germancompanies with orders at short notice,which weren’t always easy for them tomanage. With support from a Rus-sian market research company, an earlywarning system has been successfullyestablished. A newsletter in Russian andGerman informs German pharmaceu-tical companies about legal changes. Itpromptly explains new regulations in theRussian medicine wholesale trade, as wellas accreditation and refund procedures.In India, preferential treatment for domes-tic producers, as well as issues regardingpatent law present a problem. Therefore,the initiative has set up a German-Indiandialogue on pharmaceuticals. Industryrepresentatives from both nations discussthe opportunities and difficulties in theIndian market with local governmentrepresentatives. Examples of best practiceshould pave the way towards successfulcooperation. One of the focuses of theworking group on medical biotechnologyis the contract manufacturing of biophar-maceuticals. Germany, with a fermenta-tion capacity of 675,000 litres, is its mostsignificant manufacturer in Europe. Inorder to first present all German bio-man-ufacturers and their fermentation capac-ities, the export initiative has compiled acompany directory and marketed it inter-nationally at trade fairs.Medical Technology: Germany CompaniesShow Off their StrengthsGermany is a leader in the industrial health sector in Eu-rope and globally the second most important producer ofmedical technology after the USA.Around 11,000 companiesemployed over 175,000 employees and achieved turnoverof 22.2 billion euros in 2012.This represents a 27 per centincrease over the last 6 years, growth based on positivedevelopment in international sales.With an export share ofaround 68 per cent, this plays a very important role.And there are positive signs that the ex-port market will continue to expand, asemerging economies work to catch upand fulfil their great need for medicalcare. They have recognised that healthsays a lot about the condition a society isin and vice versa. Health is also an indi-cator of a transition from the traditionalto the modern. Many of these nationsare seeing an emerging middle class thatis increasing expectations of technologyat home. Governments are also startingto understand that a healthy populati-on that can work longer helps to make acountry more competitive and peaceful.Countries such as Saudi Arabia as wellas tiny Tunisia are acquiring modern me-dical technology in their bids to becomedestinations for health tourists in areaslike wellness and cosmetic procedures.This means that companies interestedin exporting their products have to stayon top of global development and callsfor bids. Russia offers an excellent illus-tration of how rapidly the market canchange: in 2010 53 per cent of all theequipment in public health care institu-tions was assessed as outdated. Therefore,in 2011 3,600 health care institutionswere fast-tracked for renovation and themedical technology inventory in 5,500of a total of 9,000 clinics was partially orcompletely replaced – a process that con-tinued in 2012.1)Local production plus imports minus exports2)Product groups according to HS codes: 9018.11 to.20, 9022; 8419.20, 8713, 9018.41, .49, 9018.31 to.39, 9018.50, 9018.90, 9019, 9020, 9402, 90213)Only available for 20104)Product groups according to SITC codesCountryMarketsize 1)ImportsfromGermany 2)China 20,766 3)1,4233)Russia 4,892 1,033India 1,466 4)317 4)Kazakhstan 514 88Ukraine 670 73USA 120,684 4,631Information for German companies:n Germany Trade and Invest:www.gtai.de/branche-kompaktn Health – Made in Germany:www.exportinitiative-gesundheitswirt-schaft.den Financial Assistance for Innovation inMedium-Sized Companies:www.zim-bmwi.den Export Community: www.ixpos.deInformation for foreign companies:n Germany Trade and Invest:www.gtai.comn Health made in Germany:www.health-made-in-germany.comn Central Innovation Program SME:www.zim-bmwi.de/zim-overviewn Export Community: www.ixpos.deGerman firms are well ahead of the packin exporting x-ray machines, orthopaedictechnology and diagnostic equipment,but also in low-tech areas such as syrin-ges, needles and catheters. In some nichesthey are even world market leaders. Thelevel of specialisation is also expressed inthe size of German medical technologycompanies: 95 per cent have fewer than500 employees and 20 per cent of all tho-se employed in the sector work in compa-nies with a staff of fewer than 50.These companies can thank the researchcentres spread throughout Germany withexcellent engineering programmes and along tradition in exceptional mechanicaland precision engineering for their toptechnical performance. They allow forthe development of innovative products.In addition to industry, which performsits own research, universities also gene-rate ideas. Companies can only maintaintheir high standards because they investaround 9 per cent of turnover in researchand development – around the same levelas the aerospace industry.sGermany Trade & Invest is the foreign tra-de and location marketing agency of theFederal Republic of Germany. It is respon-sible for promoting Germany abroad as abusiness and technology centre, providingGerman firms with information about for-eign markets, and helping foreign com-panies establish themselves in Germany.Backed by the combined knowledge of 60employees abroad and close partnershipswith foreign chambers of commerce, theFederal Republic of Germany’s economicdevelopment agency meets the need inGerman foreign trade for comprehensive,consistent and branch-specific marketinformation: Sector and country reports,market development analyses, legal andcustoms information, calls for tender fromgovernmental and semi-governmental or-ganisations, and investment and develop-ment plans – worldwide.www.gtai.deMedical technology market in millions ofUSD, selected countries, 2011
    • ALUMNI ALUMNI46 JOURNAL 1 I 2013 47‘World Café’ in Almaty106 participants from seven partner countries attended the Alumni Conference in CentralAsia, a truly international meeting that drew alumni to the old Kazakh capital from 9 to11 November 2012.Almaty. The aim of the three-day con-ference was to impart intercultural com-petence, promote the exchange of ideasand experience, offer support in initi-ating and expanding business relationswith German partners, support Man-ager Training Programme (MP) alumniassociations in their work, and providea transnational forum for networking.The decision in favour of the ‘world café’and ‘open space’ formats, which are fairlyunusual for Central Asia, did not comeeasily to conference organisers. It was theresult of a long discussion process – andproved a great success.Interest in the Almaty conference wasnot limited to the MP’s four CentralAsian partner countries Kazakhstan, Uz-bekistan, Kyrgyzstan and Turkmenistan;attendees included alumni from Azer-baijan, Belarus and Russia as well. Overone hundred registered participants fromseven partner countries attended thethird International Alumni Conferencein Central Asia. These numbers aloneare an impressive achievement which wasunderscored by the conference’s encour-aging atmosphere. Alumni talked withGerman firms, representatives from theDelegate Office of German Industry andCommerce and the German embassy inKazakhstan about successful and prob-lematic areas for economic cooperation.It is impossible to say whether the greatresponse to the event was due more tothe method or the conference’s theme:‘Cooperation between Central Asiancompanies and Germany: success sto-ries and challenges’. The final evaluationsshow that the majority of participantssaid their main reason for attending theconference was an interest in exchang-ing ideas and opinions with executivesfrom other countries. A major attractionwas the over 20 company booths at theconference with products ranging fromwomen’s fashion to pastries. Every partic-ipant had the option of presenting theirfirm.Galiya Joldybayeva from the Ministryfor Business and Development of the Re-public of Kazakhstan and Hartmut Rö-ben from the German Federal Ministryof Economics and Technology (BMWi)welcomed conference participants. Rö-ben emphasised the event’s significance:‘Alumni outreach is an important factorin ensuring the Programme’s lasting im-pact.’ Input presentations highlightedthe conference’s thematic framework. DrMichael Banzhaf from the German em-bassy in Kazakhstan covered the wholespectrum, from the modernisation of theKazakh private sector with the help ofinnovative German technologies to theimportance of Kazakh resources for theGerman private sector as a win-win sit-uation. Some alumni also pre-sented their individual successstories – starting with trainingin Germany to the current stateof their business activities. ‘In-troducing a new product fromGermany or another countryto the market here requires agreat deal of endurance andtime,’ Nurbek Shoibekov,CEO of OOO KazGerPartnerfrom Astana noted. Shoibe-kov acts as the official representative formotor oils sold by a Bavarian company.The Hunold Schmierstoffe GmbH fromEching numbers among Germany’s mostimportant independent companies forlubricants, winter chemicals and car de-tailing products. And Oleg Sheludyakov,Deputy Director of the West SiberianPolymerplast company which produceselectrical insulating tape, reported thatthe processing of polymers in medi-um-sized Russian companies was movingforward and offered good opportunitiesfor development. Sheludyakov has beenactive in the MP for many years. He com-pleted training in Germany back in 2000.In 2006 he won the BMWi InnovationPrize which is regularly awarded toRussian alumni within the framework ofthe MP.Trend-setting and effective: a successfulexperiment in open spaceOrganising a two-day ‘world café’ with‘open space’ was no easy task for moder-ator Dr Aksana Kavalchuk and the GIZteam. Work ranged from introducing themethod, assisting participants at over 24tablestothefinalevaluationoftheresults.The infrastructure for gathering and im-plementing the project ideas generated isimportant, for ‘open space’ can producean impressive range of concrete resultsin a short time. This ini-tially unfamiliar meth-od enjoyed resoundingsuccess in Almaty. At theoutset participants wereslightly hesitant aboutentering into discussion,but as they warmed upto the idea they even be-gan completely ignoringthe breaks. Not only didparticipants network ex-tensively with each other; the conferencealso provided the GIZ with significantimpetus for its continuing alumni out-reach. It was an experiment with verystrong results!World Café: A space for participants to talkin a relaxed setting as if they were sitting in acafé. In contrast to a real café, ideas are car-ried from each individual table to the othertables.The goal: to render the knowledge ofthe community visible so as to develop newperspectives, ways of thinking and optionsfor action.Open Space (also known as ‘open spacetechnology’): A method for moderatinglarge groups to structure conferences. Itis characterised by its open format andapproach to content. Participants introducetheir own topics to the group. Workinggroups are formed for each topic, whichdevelop possible projects. The results arecollected at the end. Open space can gen-erate a wide range of concrete approachesin a short time.Endurance:what Germanfirms needwhen intro-ducing newproducts to theCentral AsianmarketOpening speech in the conferencehall of Alatau Sanitorium near AlmatyOpening in the conference hall inSanatorium Alatau near AlmatyTobias Knubben
    • What’s on49ALUMNI48 JOURNAL 1 I 2013Chinese Alumni Conference in WuhanWuhan. Three groups that took part inthe Programme in 2011 and 2012 met onthe first day to discuss the results of theirtime in Germany and changes they madeafter they returned to China. Leadershippractice in German companies was of par-ticular importance and gave lots of partici-pants food for thought. Ideas on companyplanning, long-term company strategies,process controls or human resources man-agement were introduced, as well as thequestion of whether these ideas can be im-plemented in Chinese companies. A lot ofchangeshavealreadybeencarriedout,espe-cially in the alumni’s own behaviour and intheir approach to new tasks – whether it’sin relation to time management or passingon their knowledge to colleagues. Furtherchanges are often more difficult and moretedious to realise. However, some alumnibegan to make changes in their companies,for example in marketing with price seg-mentation for different market segments,or better training for staff.The Manager Training Programme’s (MP) Chinese Alumni Conference took place on 25 and26 October 2012 under the theme ‘Chinese-German Partnership – Identifying Business Op-portunities’. About 60 Chinese executives travelled to Wuhan in Hubei province to exchangetheir experiences of and ideas for initiating trade between both countries.Sound Knowledge of the Market as aFoundationParticipants from all of the previous tengroups met the following morning forthe actual conference. A further 300 in-terested business representatives fromHubei province also took part to learnabout the Programme and its opportu-nities as well as the alumni’s experiences.They were welcomed by Wolfgang Hom-brecher, a representative of the GermanFederal Ministry of Economics andTechnology and Zhou Jianwei, a memberof China’s National Congress’ Commit-tee for Finances and Economy and Hon-orary President of the ‘Hubei ProvinceInternational Cooperation Associationof Enterprises’. Zhou emphasised theProgramme’s value for the realistic assess-ment of cooperation potential and thedevelopment of cooperation based onsound knowledge of the market. Hom-brecher highlighted that German entre-preneurs now also have the opportunityto take part in a programme in China,through which the partnership-based ap-proach of the MP is being expanded evenfurther.Awards for Outstanding ResultsNine alumni were honoured with a GoodPractice Award by the Chinese Ministryfor Industry and Information Technolo-gy for their outstanding results in Ger-man-Chinese cooperation. For example,by carrying out internal restructuringand adjusting quality standards, XiaZhengquan managed to meet the qualityrequirements of a German firm and nowsupplies the firm with conveyor parts.He also developed his cooperation withtwo German companies whose plasticstechnology and driving elements he nowdistributes in China.At further presentations and ‘B2B Meet-ings’, the conference also provided alum-ni and interested business representa-22– 24 May n Kazakhstan, Astana:Astana Economic Forum2–3 Junen Kyrgyzstan, Bishkek:Alumni Seminar ‘Location Marketing’21– 23 June n Uzbekistan, Tashkent:Alumni Seminar ‘Communication’n Germany, Bonn: Follow-up to the‘Fit for Business with Russia’ trainingprogrammen German–Russian Business Talks27– 28 Junen Kazakhstan, Astana: German–KazakhSteering Committee4–6 July n Germany, Bonn: Preparatory seminarfor the ‘Fit for Business with Russia’training programmeSeptember n Mongolia, Ulan Bator: German-Mongolian Steering Committee5–7 September n Germany, Bonn: Preparatory seminarfor the ‘Fit for Business with Russia’further training programme18–19 September n Egypt, Cairo: Follow-up seminar20–22 September n Uzbekistan, Tashkent: InternationalAlumni Conference3–4 Oktober n Moldova, Chisinau: InternationalAlumni Conference (Ukraine,Moldova, Belarus)18 Oktobern Russia, Moscow: Event marking 15years of German commitment to the PP02 November n Azerbaijan, Baku:First Alumni ConferenceWhat’s on – Overviewtives with the opportunity to exchangecontacts and experiences. Workshops inthe afternoon covered issues on compa-ny practice, such as maintaining businesscontacts and leadership as a managementtool, as well as network building, partic-ularly in relation to the Chinese AlumniAssociation. Those who contributed tothe exchange of experiences includedrepresentatives of the German businessdevelopment agency Germany Trade andInvest (GTAI) and the German Engi-neering Federation (VDMA), which rep-resents approx. 3,000 companies (mostlymedium-sized enterprises) in Germany,as well as the Vice President of the IndianAlumni Association IGBDA.The next morning, alumna PengGouhong guided some conference par-ticipants through her company WuhanMiracle Laser Systems Co. Ltd. and re-ported on the changes she implementedin her company after her visit to Germa-ny. A result of her participation in theProgramme was that she concluded anagency agreement with a German com-pany and since then, she has also beendistributing their lasers in China.Hanna BätzWe are interested in your opinion!Give us your feedback about this Journal atwww.giz.de/gc21/mp/feedback.
    • ALUMNI ALUMNI50 JOURNAL 1 I 2013 51The Long-standing Partnership:Germany – MongoliaCologne/Ulan Bator. The Mongolianshave had a strong relationship with Ger-many for a long time now, either becausethey live and work here or because theyparticipate in training programmes. I hadthe opportunity to stay in Germany from23 August to 23 September 2010, togeth-er with 20 other Mongolian managers. Ihad already been there in 2003, when Ispent a year in Cologne. This time, westayed at Hotel Residence, a time-hon-oured hotel on the square, steeped inhistory. The Mongolian group of coursealso enjoyed a taste of typical Cologne:Kölsch beer. The intensive training pro-gramme with lectures and visits to com-panies commenced on the day after ourarrival. Numerous contacts were estab-lished with German partners and con-tracts were concluded. By the end of thefour weeks, some companies had evenprepared plant equipment for shipmentto Mongolia. We visited meat-processingplants as well as companies from lightand heavy industry. I visited two com-panies: one manufactures equipment forfisheries and the other installs wood dry-ing plants.The relationship between the two coun-tries began almost 100 years agoOur past experiences represent the rela-tionship between Germany and Mongo-For many years now, Germany and Mongolia have maintained a strong relationship as partners –a relationship that has also had a lasting influence on the author Byambadorj Purevrentsen. In hisessay, he describes his most impressive experiences – and why the relationship between the twocountries is so special.lia, which have already existed for nearly100 years. After the revolution in 1921,young Mongolians went to study in Ger-many, including Dashdorjiin Natsagdorj,the founder of modern Mongolian liter-ature. Following the Second World War,the relationship with the former GermanDemocratic Republic was intensified, asthe two countries had the same politicaland economic systems. About 30,000young Mongolians studied there beforethe socialist system collapsed. Most ofMongolia’s mineral resources known to-day were discovered by East German ge-ologists. The close relationship betweenthe countries also continued after the fallof the Berlin Wall. During the difficulttransformation process from a plannedeconomy to a market economy in Mon-golia, Germany was and still is the sec-ond largest donor country after Japan.Contact with other European countrieshas also become increasingly stronger inrecent years.The market economy was introducedin Mongolia in 1992. Within the scopeof development cooperation with CarlDuisberg Gesellschaft e.V., approximate-ly 200 persons received vocational train-ing or further training as young scientistsbetween 1996 and 2003. On 26 March2009, a memorandum was signed by theMongolian Ministry of Foreign Affairsand the German Federal Ministry ofEconomics and Technology (BMWi), inwhich the continuous training of Mon-golian managers to support the businessenvironment and the expansion of thecooperation between the two countriesin the areas of industry and trade wereset out.Since 2009, the Mongolian Employers’Federation and GIZ have implementedthe Manager Training Programme spon-sored by BMWi, in which about 120 ex-ecutives have participated so far. Theseexecutives have reached a foreign-tradevolume of USD 180 million with Germa-ny – remarkable evidence of the successand the sustainability of the Programme,which achieves a wide variety of results.On the one hand, Mongolian entrepre-neurs build up contacts with Germancompanies or strengthen existing ones.On the other hand, they develop theirpartner relationships further.Mongolian managers with German know-how‘Bat-Uul, the mayor of the city of Ulan-Bator, is going to phone me every day,’a manager told me when he wanted toexecute a housing project for the yurtsettlement using German technology.The price of 600,000 tugrik (approx.330 euros) per square metre of livingspace could be kept, and the buildingperiod was shorter than it normally is.Problems with the heating supply for theyurt settlements were also solved usingGerman technology. In this case, it wasa small black plate, only a few millime-tres in width, for creating heating energyup to 600 degrees – using an electricalconnection between 12 and 200 volts.He received financial support from theGerman side. Naturally, monetary aid isessential for small and medium-sized en-terprises (SMEs). For example, the SMEsare able to make use of leasing offers fromMongolian banks, for which they/thebanks require additional support fromthe state.At the end of 2012, the alumni of the MPestablished an alumni association, whichis to become the bridge linking the co-operation between Programme alumni,the German partners and also alumniin other countries. Today, not only do alarge number of young Mongolians studyin Germany; in Mongolia numeroustraining measures are also carried out inGerman. During the ceremony to presentthe German ambassador with his letterof credence as Ambassador of the Fed-eral Republic of Germany in Mongolia,President Tsakiagiin Elbegdorj suggestedthe founding of a Mongolian-Germanuniversity to him. Germany remainsextremely important for Mongolia’s ex-ternal relations – and will become evenmore essential in the future.Participant ByambadorjPurevrentsen (left) duringhis stay in Germany withthe famous Mongolianmusician Hosoo.Follow-up seminar in Baigal Camp, TereljSeminar in TereljByambadorj Pureventsen
    • ALUMNI ALUMNI52 JOURNAL 1 I 2013 53Annual InternationalAlumni Conference in KyivThe Alumni Regional Conference in Kyiv brought alumni fromfive countries together.The topics covered included efficiencymanagement, developing foreign markets, innovation as acompetitive factor and the agricultural sector.The cooperationforum was very well received.Kyiv. The alumni conferences held an-nually in Ukraine in the autumn haveenjoyed many years of success. Attend-ees prepare for them, then reminisceand discuss their experiences via Face-book. The 2012 conference was no ex-ception: alumni not only from Ukraine,but also from Belarus, Kazakhstan,Moldova and Russia all announcedtheir interest in attending. The AlumniConference is an opportunity to catchup with friends and colleagues, net-work, make new contacts and exchangeideas and opinions. The theme of theAlumni Regional Conference held inKyiv on 20 October 2013 was ‘increas-ing the competiveness of companies onthe international market’.Alexander Markus, the delegate fromthe German private sector, was there toensure a successful kick-off to the con-ference. In his speech he talked aboutaspects of competiveness in the privatesector, which was received very posi-tively by his audience. The questionsraised were then discussed by around140 participants in four sections overthe course of the conference.Efficiency management: the founda-tion for success potentialThis year the ‘Efficiency as the Foun-dation for Success Potential in yourBusiness’ section dealt business successfactors, particularly in times of crisisand change. GIZ Programme alumniinclude many successful managers whohave turned their firms into prosperouscompanies and shared their experiences.In his presentation, ‘Chaos as a Devel-opment Strategy’, Grigori Ushakov, Di-rector of Panda, a Ukrainian beveragemanufacturer, explored the questionof whether chaos is actually a suitabledevelopment strategy. His approach isto remove barriers and eliminate con-servative perspectives. Flexible workinghours and doing away with forecastingfor distributors and set product pric-es have produced good results for hiscompany – an impressive 80 per centupswing in turnover, increased workproductivity and a rise in average sal-aries of up to 10,000 hryvnia (around1,000 euros).Ulyana Terletskaya, Deputy Directorof the NewBiznet Business SupportCenter (Ukraine), Ruslan Kulakovsky(Belarus) and Director of BusinessDevelopment at WinTRADE, IgorChepurnoy, (Ukraine) reported onmodern approaches to human resourcemanagement and efficient team build-ing. Their conclusion: Business successcan only be ensured if the team and theteam leader form a harmonious unit.Oleg Leshchenko, Managing Directorof the Lapmol dairy product manufac-turer in the Republic of Moldova, wasable to develop the ‘unique and inno-vative’ product ‘select milk’ (‘Otbor-noe moloko’) and double his turnoverwith the help of an effective marketingstrategy.The key to successfully developingforeign marketsAll the conference participants wereinterested in the most effective meth-ods medium-sized enterprises could useto develop foreign markets. Who failsalong the path to entering the interna-tional market and why? What kind ofsupport can SMEs count on regardinginformation, organisation and financ-es when attempting to develop foreignmarkets? Dmitry Zacharchuk, Manag-ing Director at OOO Med Podolya inUkraine, and Michail Bostan, Directorat M&M Comert from the Republicof Moldova – entrepreneurs whosefirms are already active in internation-al markets – shared their experienceswith participants and provided tips forwhere to start and what to pay specialattention to when attempting to de-velop foreign markets. Access to glob-al markets is often a real challenge forsmall firms. It is therefore a good ideato make use of the support outsourcingconsultants and brokers can provide.Since these services are still widely un-known in Ukraine, Moldova and Belar-us, outsourcing broker for foreign tradeOxana Kaplina gave a presentation thatoutlined information about the supportsuch experts can provide SMEs.Identifying reliable partners is one ofthe most difficult elements for SMEswhen entering a foreign market. Cham-bers of industry and commerce can bea great help here. In her presentation,Victoria Kotichi, Director of the Re-public of Moldova’s Chamber of Com-merce and Industry Research Centre,provided an overview of support op-tions the CCI Moldova could provideto SMEs interested in opening up for-eign markets. Galina Cholyavka, Headof the Business Banking Division atProkreditBank in Ukraine, reportedon assistance banks could provide forforeign trade. Andrei Saika, an analystfor the United Nations DevelopmentProgramme (UNDP) ‘Promoting Inter-national Trade in Ukraine’, used differ-ent countries as examples of experiencealready gathered with financial supportfrom the state in promoting exports.Knowledge and innovation as compet-itive factors for companiesThe ‘IDEO method’ film on the organ-isational culture of one innovative firmwas shown in this section. In addition,the use of benchmarking instrumentsto assess the strategies of firms frommany directions of innovation was alsodiscussed. The experience of VladimirGromkovsky from Moscow piqued a lotof interest among alumni. In additionto his presentation on venture capitalcompanies and their policies regardinginnovative start-ups, Gromkovsky alsoprovided expert input on the key as-pects in the discussion, used practicalexamples to illustrate the advantagesand risks of innovation and answeredmany questions about the financialconditions for innovative firms and theinfluence of national laws and govern-ment policy on promoting innovation.The competitiveness of the agricultur-al industryParticipants in this section selected afun and creative approach to their am-bitious goal: developing a strategy fora cooperative ‘we will feed the world’project involving Ukrainian, Russian,Moldovan and Belarusian firms. Thisidea generated interest not only fromrepresentatives from the agriculturesector, but also from entrepreneursfrom the agricultural product process-ing, mechanical engineering and energysectors. Input to the discussion dealt inparticular with the role played by tra-ditions and innovations in achieving acompetitive edge for agricultural firmstaking account of the conditions inthe modern markets and the influenceof international cooperation on theircompetitiveness.Contact forum, a conference highlightThe contact forum held during theconference helped many alumni iden-tify other participants as partners andalso serve as guides. The input from theconference will have a positive effecton their future management decisions.Elena Beregovaya from Kyiv summedit up nicely: ‘The section topics werevery relevant and well thought-out; theexperts were wonderful. I would liketo thank the organisers of the contactforum especially. And thank you all forgiving me so much positive energy andthe opportunity to continue to learnand grow even after completing thetraining programme. It helps us keeppace with current developments andexpand our network of partnershipsamong our fellow alumni.’Svetlana Stepashchenko, Irina AlexiadisAlexander Markus,German industry delegateDr Ingrid Zilliges(BMWi)Isolde Heinz (GIZ)
    • ALUMNI ALUMNI54 JOURNAL 1 I 2013 55Contact Forum in Minsk –New Opportunities for CooperationTen Years of Alumni Work in RussiaMinsk. The Programme has been carriedout since 2006 by Deutsche Gesellschaftfür Internationale Zusammenarbeit(GIZ) and the Institute of Business andManagement of Technology (IBMT) atBelarusian State University (BSU). TheBelarusian alumni association ‘Associa-tion for Economic Cooperation’, estab-lished in 2012, was actively involved inthe preparation of the forum.Peter Dettmar, Germany’s DeputyAmbassador in the Republic of Belar-us, Vladimir Apanasovich, Director ofIBMT BGU, Christina Otto and GuidoReinsch, both from GIZ, and Ivan Rak,Chairman of the alumni association, ad-dressed the Programme alumni with wel-coming speeches. In his speech, Reinschemphasised that one of the main func-tions of the Programme is the promotionof German-Belarusian cooperation. Thetraining in Germany provides the Belar-usian managers with the stock of knowl-edge and experience the companies rep-resented by them need to ensure smoothcooperation with German business part-ners in the future. ‘The managers acquirecommunication competence, skills andknowledge on working with Germanpartners. At the start, they can state thefield in which they are looking for part-ners. During their visit to Germany, weorganise the requested contacts and sup-port the development of connections inthis way. The people meet each other andcarry out negotiations. We are not onlyinterested in helping to convey somecompetencies so that the participants canlook for partners themselves afterwards,but also in helping them establish con-tacts directly during their training stay.When they visit companies, they can askquestions directly concerning both theorganisation of the production processand personnel management. In this way,they gain experience that will help themin taking important management deci-sions in the Republic of Belarus.’A further function of the Programmeis the promotion of local cooperationbetween representatives of the partnercountries, which is also a specific objec-tive of the contact forum. The Belaru-sian alumni were able to have talks withtheir colleagues from the very diverseareas to introduce their own businessareas and establish contacts. A businessrelationship between Natalya Darmel,who represented the interests of a fam-ily enterprise in the concrete-producingindustry, and the construction company‘geschl. AG Elektroservicestroi’, repre-sented by Viktoria Vertinskaya, head ofthe cost and contract department, wasestablished at this contact forum.The presentation by the alumni asso-ciation, the Association for EconomicCooperation, was a further highlight ofthe contact forum because it is precise-ly this association, which is intended tofacilitate cooperation both among theProgramme alumni and also betweenalumni and their German partners. Themain goals of the association are thesetting up, support and developmentof a platform for business cooperationbetween local authorities, foreign part-ners, the business world and the public,at home and abroad. Further goals arethe development of a positive image forBelarusian companies and the initiationand consolidation of long-term commer-cial, scientific/technical, innovative andintensive, people and culture-orientedcooperation between Belarusian and for-eign companies. The participation in theMP and also in the measures following itprovides a basis for finding partners, notonly abroad but also in their own coun-try, thus doubling the efficiency of theProgramme.Moscow. You would almost believe thatyou were at a family party. The night be-fore the 15th anniversary celebration ofthe Presidential Programme, more than100 guests from 30 regions in the RussianFederation gathered to look back togetheron ten years of cooperation and to drinkto their achievements with their Germanpartners. On behalf of the Germans, DrHeike Peitsch, Head of the Departmentof Economy and Science at the Germanembassy in Moscow, acknowledged thealumni network as an important sourceof inspiration for regional economic de-velopment in Russia. The host, BMWi’sHead of Division Hartmut Röben, wasvisibly impressed by the alumni’s work intheir regions and described them as am-bassadors for German-Russian economicrelations. Hartmut Röben emphasisedIn February 2013, over 60 Belarusian and German executives participated in one of theregular contact forums for alumni of the German-Belarusian Manager Training Programme(MP). Written by Alexandra Korobko from the Belarusian Alumni Association.An evening among part-ners: The German FederalMinistry of Economics andTechnology and GIZ jointlyinvited the Russian alumniassociations, graduatesand representatives of theregional administration tocelebrate the tenth anniver-sary of alumni cooperation.The contact forum is in full swing.Alexandra Korobkothat ‘Alumni activities ensure the sustain-ability of the Programme and they areunique. After ten years, we are still in con-tact with you and learn how you are ableto use the skills you obtained through ourProgramme.’Close Cooperation with the RussianRegionsThe alumni expressed their gratitude forthe many years of support from GIZ andthe commitment of German and Russianexpertswhohavepassedontheirknowled-ge and experience in order to create anddevelop this impressive network of Russi-an alumni. In the past ten years, more than100 joint events have taken place. Almost4,000 executives from Russian industry aswell as decision-makers from the adminis-tration, professional associations and uni-versities from 43 regions have taken partin alumni events.Alumni activities in Russia cover a widerange of issues. Initially, many events sup-ported the establishment of the alumniassociations. For example, training was th-erefore provided on organising events andcarrying out consulting projects and co-operation forums. In recent years, Germanexperts have been sharing their experience,particularly in areas such as regional eco-nomic development, the health sector, lo-gistics and energy efficiency in companiesand in the municipal housing sector. ManyGerman firms used the alumni events tointroduce their products to regions andto find skilled potential business partners.The close ties between alumni associationsand administrations demonstrate the sig-nificance of the Presidential Programme’spotential for the regions and how regionaldecision-makers supported the develop-ment of bilateral economic links.Those present were delighted with theopportunity to speak to the people res-ponsible for creating the Presidential Pro-gramme over many years. BMWi’s invi-tation was accepted by Andrei Sharonov,former chairman of the Russian FederalCommittee, now Deputy Mayor of Mos-cow and responsible for economic policy,as well as by Oleg Lushnikov and PavelMrdulyash, both former Chief Secretariesand Directors of the Russian Federal Re-source Centre. Dr Gerd Schimansky-Gei-er, who has been responsible for the con-ceptual framework and content of the MPin Russia and its expansion to 13 othercountries for 15 years, paid tribute to thealumni and also used the opportunity tobid farewell to his Russian partners andalumni on his well-deserved retirement.According to the official programme, GIZstaff and representatives of the regions re-ported (some using artistic depictions) onthe extensive cooperation of the previousyears. Over sauerkraut, bratwursts andbeer, there was a lot to tell: over the yearsnot just business contacts have developed,but friendships, too.HartmutRöbenandHeikePeitschVyacheslavSatin,Vice-GovernorofPenzaTatyana Pivovarova andVladimir Bogdanov,GIZ-Office Moscow
    • SUCCESSFUL PARTICIPANTS57ALUMNI56 JOURNAL 1 I 2013Contact Forum forAlumni from MoldovaChisinau. 110 graduates in three and ahalf years: this is the impressive resultof the advanced training programmefor executives Moldova. As well as thequantity, the quality also speaks for it-self. Graduates are active in more than25 economic sectors, such as logistics,tourism, the financial sector, consulting,agriculture and light industry, trade, theIT sector, mechanical engineering andthe health sector. According to the Mol-dovan Alumni Association, two thirds ofall graduates are leaders of companies ordepartments. The training and study ofexperiences and methods of managementin Germany, as well as their introductioninto their own companies, happened in arelatively short time and thus ensured along-term competitive advantage. Manybusinesses have become reliable partnersfor German business people in Moldova.They began to operate on foreign mar-kets, diversified their business activitiesand found partners for mutually benefi-cial cooperation.INVENT Moldova was founded in 2010because Programme participants wantedto build a network. Together with GIZ,the alumni association organised trainingmodules in cooperation with Germanbusiness trainers. A memorandum oncooperation with ten alumni associationsin the Programme’s different partnercountries has already been signed. Theyare planning a cooperative partnershipwith the German Federal Associationfor Economic Development and ForeignTrade (BWA) and with Germany Trade& Invest (GTAI), the German societyfor foreign trade and location marketing.The Chamber of Commerce and Indus-try of the Republic of Moldova is an offi-cial partner of GIZ for the implementa-tion of the Programme and welcomes theassociation’s activities.The alumni association ONG INVENT Moldova fosters and de-velops Moldovan-German relations.With a contact forum in theMoldovan capital of Chisinau on 13 November 2012, graduatesof the Manager Training Programme (MP) were supported intheir business activities.Written by Mihai Bostan.Mihai BostanKarin WeberOver half of the Moldovan graduates ofthe training programme for executiveswere present at the contact forum inNovember, which was organised by IN-VENT Moldova and GIZ. Sixty gradu-ates from various groups not only had theopportunity to get to know each otherand exchange ideas, they also got to talkabout their experiences of developingbusiness relations with German compa-nies in order to open up new areas andfields of business. In this way, the contactforum became a platform for informaldialogue and topic-based discussions onbusiness areas that offer links for coop-eration. Direct contact with those whomake the decisions as well as discussionon long-term prospects dominated themeeting.For example Andrei Shuleanski has beenoffering services based around computersfor years. He seized the opportunity tospeak with Diana Suruceanu from Fin-ComBank, one of the biggest financialinstitutions in Moldova about whichcustomer-friendly options there are to al-low for payments to be carried out simplyand securely. Another participant EmilGutu has completely changed his profile.For two years, he has been running anagriculture business with 6,000 hectaresof cultivated land. He used the contactforum to make links with his colleaguesfrom the same sector and to learn moreabout personal motivation and qualifica-tion. He discussed credit terms with bankrepresentatives. It turned out that one ofthe GIZ graduates had been buying hisproducts for years through an interme-diary. He and Gutu have since agreed toconclude a direct purchase agreement.The visit from a representative of theMoldovan-German Economic Associ-ation lent even more significance to theevent. The value of the contact forumwas also clear from the participants’ re-actions, which emphasised the ‘need forsuch a platform’ and the ‘significance ofthe event’. In this way, the meeting helpedto link up the Programme’s graduatesand advance the association’s project inthe economic region of the Republic ofMoldova.Contact: www.invent.mdGerman-Russian JointVenture Established onthe MarketSamara. The Hüttenes-Albertus Che-mische Werke GmbH is one of theworld’s leading manufacturers of chem-ical products for the foundry industry.Castings produced with the help of thebinder system developed by Hüttenes-Al-bertus enrich our daily lives, whether aspart of our car’s engine, a wind turbineor bathroom fixtures. The family-ownedbusiness employs over 2,000 people andcan look back on over a century of tradi-tion. It is represented on every continentand in close to 40 countries. In 2002 thefirm began exploring the Russian market,though the initial results were disap-pointing with just a few isolated deliv-eries. ‘Unfortunately the partnership weentered into back then did not yield thedesired effect,’ explains Ivanov, a foundryengineer who is responsible for Russia atHüttenes-Albertus today.So in 2011 negotiations were initiatedfor a joint venture with UCP Chemi-cals, a leading Russian manufacturer offoundry chemical products. But discus-sion dragged on and on before ultimatelyfloundering in August 2012.Hüttenes-Albertus CEO Dr CarstenKuhlgatz’s visit to Russia as part of a del-egation in October of the same year reig-nited interest in the Russian market. Onthe trip the CEO also learned about the‘Fit for Business with Russia’ ManagerTraining Programme and advocated forIvanov to participate in the programmein Samara. ‘The training programmehas really influenced my work by pro-viding me with a better understandingof our partners and the overall businessand legal situation in Russia, which hascontributed to the exceptionally quickand concrete realisation of our plans,’Ivanov explains. During the programmehe had the opportunity to visit an Amer-ican-Russian and a French-Russian jointventure and to speak with manage-ment. And when UCP Chemicals alsosignalled renewed serious interest andsubmitted a new offer, it ‘really took offfrom there,’ Ivanov recalls. ‘It helped meimmensely in designing our businessprocesses and developing our joint ven-ture.’ Hüttenes-Albertus’ shareholdersapproved the deal while he was still inSamara in November 2012.The new ‘Uralchimplast – HüttenesAlbertus’ (UCP-HA) company was en-tered in the commercial registry on 12December 2012 and business operationscommenced in January 2013. The jointventure’s broad product portfolio in-cludes products for ferrous and non-fer-rous foundries and offers customers one-source solutions for the entire castingprocess – starting with melting, movingthrough mould and core production, andending with final cleaning – and not justas individual components as is commonin the target region. The new firm willact as the main supplier for the foundryindustry in Russia, Belarus and Ukraine.By bringing together the core capabilitiesfrom innovative foundry chemistry anda profound understanding of the Russianmarket, the joint venture will be able tomeet the growing demand for productswith a technological and ecological edge.The industrial engineer is now a memberof the three-person UCP-HA manage-ment committee and will make deci-sions about the activities and directionof the company at monthly meetings.‘The Manager Training Programme wasmuch more beneficial than I thought itwould at the outset,’ says Ivanov, whohad not been in Russia for a numberof years. ‘I had some initial doubts thatthe programme might be too general forme, since I already knew my target re-gion well. But Russia has become a verydynamic market and is developing veryrapidly. The ideas I had from 2003 werecompletely outdated. The time I spent inSamara helped me get reoriented and re-kindled my enthusiasm for this excitingmarket,’ Ivanov concludes.The German-Russian‘Uralchimplast-HüttenesAlbertus’ (UCP-HA) jointventure represents the endof a rather long journey.The fact that it exists at allis also thanks to the ‘Fitfor Business with Russia’programme, which DrStefan Ivanov completed inNovember 2012.Alumni of the Manager Training Programme in ChisinauDr Stefan Ivanov (in white) during his stay in Samara
    • SUCCESSFUL PARTICIPANTS SUCCESSFUL PARTICIPANTS58 JOURNAL 1 I 2013 59Focus on Quality and Innovative ProductsTübingen. Genghong Zhu has a dream:he wants to manufacture machines inChina with the renowned ‘made in Ger-many’ quality. So he took advantage ofhis participation in the Manager Train-ing Programme of the German FederalMinistry of Economics and Technologyto expand his skills in this area in particu-lar and intensify existing contacts. At theend of 2012, Zhu was part of a Chinesegroup that trained at the Export Akad-emie Baden-Württemberg in Tübin-gen. As one of the four founders of theChangsha EPOCH NC Research Insti-tutes, he has been researching advancedservo technology since 1998 and hasdeveloped modern metal processing ma-chines. The institute gave rise to the EP-OCH NC Machine Tool Co. where Zhucurrently serves as president. The compa-ny produces machine tools, especially forvehicle engine manufacture, in Changsha,the capital of China’s Hunan Province.Employing servo control technology al-lows these machines to automaticallymanufacture complex shapes for engineparts with exceptional precision.German-Chinese cooperationMachine tools are an area in which manyGerman firms are global market leaderswith their special product ranges. De-spite higher overall cost at times, theGerman machine tool branch is holdingits own against the generally cheaperinternational competition. In additionto excellent reliability, this is above allthanks to innovative products with the‘Made in Germany’ quality guarantee.MAHLE GmbH with its headquartersin Stuttgart is a leading global develop-ment partner and automotive and engineindustry supplier.In the 1920s Ernst Mahle described hisnewly formed company’s never-endingquest for quality and innovation: ‘Goodquality is absolutely crucial: there is al-ways room for improvement!’ This ide-al has always been – and will always be– an essential element of the MAHLEquality principles. Since then MAHLEhas developed from a small experimen-tal workshop into a technological leaderand globally active company. The firm’semployees work worldwide in researchand development centres on innovationsto increase output, reduce fuel consump-tion and emissions, and improve perfor-mance throughout the system. Today onein two automobiles produced worldwidehas components from this southern Ger-man company.Back in 2010 EPOCH established a stra-tegic partnership with MAHLE. Sincethen the two firms have been workingtogether in projects involving verticalpiston-rod drills, fully automatic castingmachines and automatic drills for pis-tons. Zhu describes the goal of the collab-oration as follows: ‘We want to producemachine tools under Chinese conditionsthat fulfil the German quality standards.’As a manufacturer of components andsystems for combustion engines and theirperipheral devices, MAHLE numbersamong the three largest system suppliersof piston systems, cylinder components,valve train systems, air management sys-tems and fluid management systems. TheChinese machinery manufacturer EPOCH and MAHLE, the techno-logical global leader from Germany, are set to intensify the partnershipthey began in 2010. The objective: to expand Chinese exports and opti-mise the products.Chinese group visited a total of sixteenfirms and organisations. Zhu establishedindividual contact with three additionalcompanies, and reserved a total of threedays just to meet with MAHLE.There he discovered that the foundationsof MAHLE’s quality strategy today areoptimal means of production combinedwith the total quality management(TQM) system introduced in the ear-ly 1990s. From the initial developmentphases onward, the MAHLE qualitymanagement system identifies possiblesources of defects, which allows the firmto avoid expensive reworks. Constantdevelopment controlling monitors time-lines and makes it easier to reach projectgoals.Focus on quality, development and re-searchIn order to be able to guarantee the bestpossible quality, MAHLE holds its sup-pliers to strict quality standards and em-ploys state-of-the-art automated manu-facturing and testing technologies in itsinternational production facilities. Thevertical lathe piston rod machine CM24was the subject of the pilot project be-tween MAHLE and EPOCH. In 2012EPOCH passed the high MAHLE qual-ity standards tests with flying colours andis now a preferred supplier to MAHLE.A reciprocal visit to Changsha by Zhu’spartners at MAHLE was recently con-firmed.‘I learned a great deal on the companyvisits and the German firms were veryopen.’ Zhu is full of praise for his hosts.He feels that Chinese firms tend to focuson production while quality standardsvary. Based on his impressions, Zhu hasconcluded that ‘in addition to quality,German companies also focus on devel-opment and research.’ For example, muchmore testing is done in Germany. On avisit to Balluff GmbH, a manufacturer ofsensor technology in southern Germany,he learned that the cost of a product de-fect once it has gone to production is tentimes as high as during the test phase. Ifthe defect is not detected until the prod-uct has reached the customer, the cost isa hundred times higher than during thetest phase.Total-Quality-Management (TQM) descri-bes an integrated and continual processof recording, inspecting, organising andmonitoring that includes all areas of an or-ganisation (company, institution, etc.) andserves to anchor quality as the system ob-jective and guarantee it over the long term.Quality management should not be limitedto the technical performance required toensure product quality. It should instead bedefined based on the relationship betweenthe company and its customers. TQM wasfurther developed by the Japanese autoindustry and ultimately adopted as a bestpractice model. It requires total employeeinvolvement to be successful.The primary elements of the TQM philoso-phy are:• Quality is customer focused.• Quality is achieved through the invol-vement of employees in every area andat every level.• Quality is not a goal; it is a process thatnever ends.• Quality applies to products and services,and particularly to those processes thatgenerate the same.• Quality is based on active involvementand must be worked towards.Genghong Zhu (second from left)during a meeting at MAHLE GmbHGenghong Zhu (left) visiting Balluff AG
    • SUCCESSFUL PARTICIPANTS60 JOURNAL 1 I 2013SUCCESSFUL PARTICIPANTSPaving the Way to Foreign MarketsTashkent. Ibragimov has been with theUzstrojmaterialy Corporation, an associ-ation of around 120 construction mate-rial manufacturers in Uzbekistan, for tenyears now. With 16,000 employees andaround 70 per cent market share, Uz-strojmaterialy, which translates as UzbConstruction Materials, is not just thelargest supplier to the country’s boomingconstruction industry. It is also a majorexporter of cement, glass, marble, con-crete blocks and bricks to Russia andCentral Asia. Ibragimov has headed upthe Investment, Modernisation and In-novation Technologies Division for theassociation since 2011. He was entrustedwith these new responsibilities after suc-cessfully completing the MP at the ‘Edu-cation Center BBZ’ in Fulda in Octoberand November 2007.The experience he gathered in Germanyhas helped Ibragimov to pave his compa-ny’s way into foreign markets. Under hisleadership the members of Uzstrojmate-rialy have regularly participated in tradefairs, such as in Turkmenistan in 2008and 2012 and in Azerbaijan in 2010,and concluded contracts. ‘It providedme with a lot of ideas and stimulus fordeveloping the construction industry inour republic. Thanks to the Pogramme, Iwas able to build up fruitful partnershipsbetween the firms in our association andother manufacturers, which has been astrong driving force behind the branch’sdevelopment.’For years now Uzstrojmaterialy hasmaintained close relationships to Ger-man producers including the Maschin-enfabrik Möllers GmbH, Knauf GipsKG, Christian Pfeiffer MaschinenfabrikGmbH and ThyssenKrupp AG. In 2007,when Ibragimov travelled to Germanyfor training, the Uzbek firms involved inthe construction association had alreadyinvested over seven million euros in newproduction lines, loading equipment andpackaging equipment. Ibragimov’s maingoals were therefore to intensify theseexisting relationships and identify newpartners.He has accomplished a great deal. Af-ter returning to Uzbekistan, AG Kysyl-kumzement, a member of the association,concluded a multi-million euro supplyagreement with REFRATECHNIKCement GmbH for fireproof concreteblocks. The Uzbek cement producer hadalready had its products certified accord-ing to ISO 9001 in 2005 and was lookingto further expand its exports.Uzbekistan’s modernised constructionindustry sets a course for growthUzbekistan’s construction industry facedenormous challenges in 2008 and 2009.While the booming construction in-dustry continued to drive demand forcement up, the technical capabilities ofUzstrojmaterialy’s cement producers hadbeen effectively exhausted. A completeoverhaul of the plants and new moderntechnical equipment was needed to se-cure the continued supply of sufficientraw materials to domestic constructionfirms. Systematic restructuring and thetimely implementation of new technolo-gies allowed the looming cement short-age to be averted.Currently the Uzstrojmaterialy cementplants continue to work in close concertwith German firms that supply high-tech equipment, raw materials and con-struction materials. These include theREFRATECHNIK and GeoCon firms,which produce fireproof bricks to cladcement kilns. The cement works involvedin the association alone achieved turn-over of USD one million with Germanpartners in the first half of 2012. Totalturnover of goods between Uzstrojma-terialy and German companies was animpressive USD 3.1 million during thesame time period.It has been five years since Bachodir Ibragimov completedthe Manager Training Programme (MP). Since then the Headof the Investment and Modernisation Division at the Uzstro-jmaterialy Corporation has initiated important projects forthe Uzbek construction industry.61Seizing OpportunitiesIn an interview, Ulan Muhamed, Managing Director of the Kyrgyz company EcoLights Trad-ing, talks about his experience with the Manager Training Programme (MP). He participatedin the Programme at the training centre Europanorat in Berlin in late summer of 2011. Hisconclusion: ‘Being small is an advantage.’GIZ: What made you decide to partici-pate in the MP?Ulan Muhamed: The MP offers medi-um-sized companies in particular the op-portunity to improve their competitive-ness. Kyrgyzstan is a small country withconsiderable growth potential, especiallyfor medium-sized companies. The Pro-gramme supports me in developing mycareer as a manager and in expanding myscope of business through cooperationwith German companies.What surprised you about your stay inGermany?The business culture in Germany amazedme. Medium-sized companies represent95 per cent of business in Germany. Incontrast to Kyrgyz companies, they ar-en’t focused on rapid growth. WhenI asked the owner of a company withan annual turnover of 50 million euroswhy he didn’t go public in order to ac-quire even more capital by issuing shares,he answered: ‘What for? I am going topass on my business within my family.’German business people work hard andcontinue along the chosen path. Smallcompanies set long-term targets and con-tinuously improve the quality of theirgoods and services. Medium-sized familybusinesses are based on family continui-ty and are passed on from generation togeneration. In this way, know-how andmanagement culture are also handeddown. The family principle is also char-acteristic of the business lives of Kyrgyzentrepreneurs. However, in Kyrgyzstan, abusiness culture hasn’t yet developed forthis type of company management; thereare no successful examples to date. Afterall, it’s only 20 years now since we intro-duced the market economy. All this liesahead of us.What is your company’s line of business?EcoLights Trading is a private enterprisethat sells fluorescent lights and ener-gy-saving lights for both inside and out-side use. The ratio of retail to wholesalebusiness is 70 to 30.Which of the skills that you acquiredduring your training in Germany do youapply in your work?I initially began discussing matters withcompanies and experts abroad; previous-ly, this was not possible. I started to makeuse of the opportunities the internet of-fers me for my work. It is not expensive,but it is effective. Our company’s offersare now drawn up according to interna-tional standards.What challenges do you face?In Kyrgyzstan, business is in a process ofrejuvenation. It is more customer-orient-ed, better organised in its work processesand is learning to set medium-term tar-gets. A large number of start-up projectsare arising, but they lack focus and finan-cial support. Currently, the economy is ina transitional phase. Often, the supportof experienced management is missingwhen we want to introduce new knowl-edge and work techniques. That’s whyprogrammes such as the MP are so im-portant and create successful role modelsfor our country.In your opinion, what should every exec-utive learn from this Programme?Firstly, they should be receptive to thepersonal and business opportunities thisProgramme offers them. Secondly, theyshould be prepared to use them in theirfield of work. Thirdly, they should inves-tigate the differences in business culture.What are your professional goals for2013?To gain access to new markets and marketniches. And we’ve already found them!It’s necessary to make better use of theopportunities the internet offers smallbusinesses. And we are already doing so!We want to make a film to promote ourcompany’s image. And, as an alumnus, Iintend to participate in future activitieswithin the Programme.What is your advice to new participants?They don’t necessarily need to come fromlarge companies with extensive financialand human resources in order to be suc-cessful in their businesses. Being small isan advantage!Thank you for the interview!Bachodir Ibragimov visiting a trade fair TashkentUlan Muhamed in Berlin
    • SPECIALISED TOPICS SPECIALISED TOPICS62 JOURNAL 1 I 2013 63Forms of InternationalCooperationAll partners enter into cooperation withthe aim of achieving a win-win situation.The general objective is to gain compet-itive advantages as cooperation enablesenterprises to take advantage of opportu-nities they could not use as an individualcompany. As legally independent com-panies cooperating with transnationalpartners, they conclude a contract andchoose a form of cooperation with orwithout capital commitment. Success de-pends not only on business acumen, butalso on the intercultural understandingof the form of cooperation. A stage mod-el that examines the resource expenditureat home and abroad for the respectiveform of organisation can be very helpful.Export, Sales Organisation and theBasicsAccording to the classification in thestage model, export is the basic formof foreign trade. It involves supplyingown goods and services outside nationalboundaries. Financial and managementtasks occur solely in the exporting coun-try. The two considerable advantages ofexport are the low capital requirementsand the low risk. Thus, export is suitablefor gaining initial experience.On the other hand, customer proximityand a local presence are missing; there-fore, establishing a sales organisation inthe importing country with increasedresource expenditure and could be thenext step. Granting a licence (right to usethe brand) is a possibly suitable supple-mentary measure. Both of the advantagesof exporting also apply here. Instead ofdealing with the previous disadvantages,the exporter is now dependent on the li-cence holder with respect to quality andimage. Choose licencing if your productis an excellent one and you have hardlyany own resources for building up an in-ternational business.Franchising is a sub-form of licensing.Every franchising agreement containsa licence agreement. A pure licenceagreement, however, never contains afranchising agreement. To achieve a uni-form outward appearance in franchis-ing, know-how has to be disclosed. Thisknow-how disclosure and the high levelof monitoring and control required aredisadvantages.Joint Venture, Subsidiaries and Trans-parencyIn a joint venture, the partners jointlycarry out previously defined activities.Take advantage of risk minimisation, ac-cess to market knowledge and contacts ifyou are prepared to limit your indepen-dence and decision-making ability. Theadvantages:n local presencen market proximityn controllable riskn little limitation through customs regu-lations and other export rulesRonald Reich from WAKSH GmbH/Metanoia GmbHon the possibilities forinternational cooperationand the individual stagesinvolved.Import/exportSales organisationLicensingFranchisingJoint VentureOverseas branchProduction facilitySubsidiaryForms ofdirectinvestment0%0%100%100%Financial and management tasksoccur in the exporting countryFinancialandmanagementtasksoccurintheimporting/hostcountryForms ofcooperationForms of International CooperationRonald ReichCompetitive Edge throughInnovation Managementbecomeevidentwhenindividualunitsarerelocated abroad. This is an intermediatestep before establishing a subsidiary. Inthe stage model, a subsidiary means thatthe entire resource expenditure occursabroad. You have a legally independententerprise in another country, controlledby you. This enterprise can fulfil all func-tions and therefore also poses high risks.You are able to optimally protect yourknow-how and remain independent.Alexander Fleming discovered penicillinby inadvertently allowing an inoculatedbacteria culture to go mouldy. But veryfew innovations are the result of suchlucky coincidences. Instead they requiresystematic innovation management, foronly every sixteenth idea put forwardwithin a company becomes a commercialsuccess.According to Professor Carsten Dreher,Chair of Innovation Management at theFreie Universität in Berlin, the measuresAs an entrepreneur, you can proceed instages; you can also skip stages or applythe various forms simultaneously, or youcan start at a higher stage. For instance,regional requirements may make it easierto establish a production plant than tobuild up a sales department. Reviewinginformation and communication sys-tems right at the beginning of cooper-ation relationships is a tried and testedprocedure as it promotes the efficiency ofavailable to companies to successfullyencourage innovations depend great-ly on the tasks in hand. Should a newproduct be brought onto the market ora new management model rolled out?Must a new idea first be found for this,or is it a question of implementing theidea technically? ‘There is no one-size-fits-all plan,’ says Dreher. ‘From a strate-gic perspective, though, companies thatsystematically manage their competencesand adjust their routines in a targetedand timely manner are well positioned.monitoring and coordination within thecooperation relationship. By document-ing their respective cultural understand-ing of the cooperation form decided onvia the selected communication channel,all partners show their transparency,openness, honesty and fairness.Development of a culture of innovationis therefore crucial in achieving radicalinnovations.’In many companies, this is an inherentcomponent of the corporate strategy,confirms the medium-sized businessGelita, which is the world market leaderin the manufacture of collagen proteins.‘At Gelita, all are encouraged to contrib-ute ideas. Innovations can develop in allareas,’ explains CEO Franz Josef Konert.Employees are taught the necessary tools– creative methods such as brainstorm-ing and mindmapping – at a global ‘In-novation Summit’. Similar to many othercompanies, Gelita has also defined a so-called Stage-Gate Process. This meansthat every development plan is dividedinto individual steps – from develop-ment through to implementation – andresponsibilities assigned to each step in atargeted manner. Dräger, a family-ownedcompany in the fields of medical andsafety technology, has also defined suchan innovation process, but additionallypursues a customer-oriented approach.Board member Herbert Fehrecke, ex-plains, ‘We have application-orientedresearch in Lübeck and globally-activedevelopment areas, which concentrateon the core customer segments.’Moreover, Dräger makes targeted use ofcustomer feedback to enhance currentand future product series. Besides thecustomers, other external parties can beinvolved in the innovation process. Forexample, tenders for idea competitionsand online platforms on which internetusers can design products may be suitablefor this.In times of ever-shorter product cycles and increasedglobalisation, innovations constitute a strategic competitiveedge. How can companies boost their potential?Ronald ReichChristina Otte, GTAIA participant in the Programmefrom Egypt
    • Deutsche Gesellschaft für InternationaleZusammenarbeit (GIZ) GmbHFriedrich-Ebert-Allee 4053113 BonnT +49 228 4460-1227F +49 228 4460-1333E mp-pr@giz.dewww.giz.de/gc21/mpGlobal Campus 21®The Manager Training Programmeof the German Federal Ministry ofEconomics and Technology on the Internetwww.giz.de/gc21/mpLots of information at a glance forparticipants or anyone interestedin the programme!Meet your partners of tomorrow today!Come and find potential business partners inour Cooperation Forum atwww.giz.de/gc21/mp/kooperationsboersen Clear list of potential business partnersn Organised by country, industry and productn Establish contacts easilyWe are interested in your opinion!Give us your feedback about this Journal atwww.giz.de/gc21/mp/feedback.Manager Training ProgrammeSupported by: