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THE FUTURE OF WORK

Team name:            One Step Ahead

Selected EE countries: Slovenia, the Czech Republic

Team members:         Josephine Kittner (team
                      leader), Bogdan Andrei

Nationality of

team members:         Germany, Romania
THE EE MARKET AND ITS PERSPECTIVES

General situation
 EE countries are characterized by having different            levels   of
  development, therefore they have high level of inequality
 The Russian Federation, Poland, Czech Republic, Slovenia, Slovakia,
  Hungar y, Turkey & Ukraine are the most developed states, having
  mostly positive growth rates which are characterized as high
  developed countries by World Bank
 Developed EE countries are mainly concentrated in the textile industr y,
  automobile production, agriculture and generally in manufacturing
 In some EE countries energy has an important place on the agenda,
  especially due to the environmental challenges (ex: Ukraine)–
  oppor tunity for future industr y vs. threat for population and economy
  through high costs
 In genera, EE countries are heading towards greater division between
  the emerging economies and those which are developing much slower
The chosen countries:                                     WHY
Slovenia and the Czech Republic                           CHOOSE SL
                                                          AND CZ?
 Most companies small to medium-sized, / Major
  role of SME sector in the economy
                                                          E x p er t is e
 Most impor tant industries: Ser vices, IT, automobile
  manufacturing, telecommunications                       W i l l i n g n e s s to
 Slovenia and the Czech Republic have ver y high         learn
  number of mean year s of schooling  academic
  elite/high per formance potential                       High
                                                          e d u c a t io n a l
 Slovenia‘s gross domestic expenditure on R&D is
                                                          l ev e l
  above EU average (ranks 4th of EU in 2010, OECD
  ranking)  high willingness to advance and
                                                          Good social
  innovate                                                s t r uc t ur e s
  Ex: Slovenia won Most Innovative Brand 2012 award
  for high quality and design                             High
 Both countries could recover quickly from the           understanding
                                                          of CSR
  economic crisis, Czech Republic (-0,3% GDP growth
  rate in Q3 2012) could recover slightly better than
  Slovenia (-0,6% in Q3 2012)                             H i g h p o te n t i a l
Online sur vey via Stellar Sur vey                          KEY
                                                            POINTS
 Participation of 70 persons from all over Europe          AND
  (Bachelor and Master students, Graduates)                 RESULTS
 Focus of questions: general trends of EE countries,
  potential   industries,     classification  of   most   3 c o u n t r ie s w i t h
  impor tant EE countries with regards to expected        highest
  development                                             ex p e c t a t io n s to
                                                          grow:
 The majority of the inter viewees (37%) think that      C z e c h Re p u b li c ,
  the IT industr y will be the most impor tant in 2022    C r o a t i a & S l o ve n i a
 50% think that EE could become more competitive
  than Western Europe and East Asia
                                                          3 most important
 40% consider “engineer” to be the most wanted           pillars:
  profession in 2022                                      Property rights,
                                                          freedom from
                                                          c o r r up t io n & f i s c al
The online sur vey confirmed our assumption of           freedom
 concentrating on the IT sector in the Czech
 Republic
                                                          3 m o s t c o m p et i t iv e
It equally reflects the high impor tance of the          industries in EE:
 energy industr y which we mentioned before and           S e r v i c e s & I T,
 considered too vague                                     E n e r g y, To u r is m
THE CHOSEN INDUSTRY: IT

Why choose the IT industr y?


1.   Gain expor t strength and a competitive advantage compared to
     other European countries through knowledge and expertise;
     through higher expor ts foreign currencies flows into the economy
2.   Facilitates job creation and the reduction of the unemployment
     rate, especially for young people;
3.   Builds itself on an already developed industr y, through the
     exploitation of the high educational level in both countries
     prevention of emigration of valuable human capital
4.   Promotes Foreign Direct Investment which is the key to success
     as it facilitates growth and expansion, makes firms more
     competitive, and equally enhances the whole economy
5.   High focus on ser vices and markets outside EU
CLUSTER BUILDING


   Via the realization of the new industr y (IT branch) in Slovenia
    and the Czech Republic, the two countries will get closer
    structure wise
     idea of following the same management style in the two
    countries, having the same corporate structure and language
    (English)
   Promote growth easily by creating a pool of ideas and talents
    whilst following equal structures
   Strong cooperation as a cluster concept between them, that will
    give the oppor tunity to share ser vices in weaker regions and
    enhance regional competitiveness  high working together in
    R&D depar tment as being essential
COMPANY PROFILE

General features:

 Size: medium-sized company with up to 250 employees in both
  countries
 Company type: Slovenian Limited Liability Company (due to lower
  corporate income taxes in Slovenia)
 Means of financing: venture capital and foreign investors (minimum
  needed 7.500€ due to company type)
 Products: ser vices and IT products such as software, electronic
  hardware, ser vice and planning systems, electronic of fices
 Most impor tant department: Finance due to constant need for
  investments in innovation, research, technology, logistics and
  marketing
A QUESTION OF ST YLE AND THE KEY TO
              SUCCESS
Other company features:

 Use exper tise and investment in R&D to develop new products and
  attract new clients, the CR and SL working closely together having
  the same long-term goals
 English as corporate language to simplify access for foreign
  employees (integration programs for employees, language courses)
 Strong CSR policy regime
 Application of Scandinavian management style:
  flat hierarchy and high transparency
  high employee motivation via paid vacations, secure contracts,
    creation of long-term relationships with employees, special work
    incentives and workshops, promotion options even on small
    levels, integration of ever y employee in the working process
(INTERNATIONAL) NETWORK CREATION

1.   phase: Creation of unified company image and understanding;
            internal network between Slovenia and   the   Czech
            Republic – overcome language barriers by special
            teaching systems, deepen cluster


2.   phase: high corporation with EU countries as soon as possible,
            attracts EU companies to co-operate closely, intend to
            attract foreign graduates by social management style
            and English as corporate language, focus on export of
            high quality IT products


3.   phase: open up to international markets, create a brandmark
            and customer awareness in a global sense

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[Challenge:Future] Connecting the Dots

  • 1. THE FUTURE OF WORK Team name: One Step Ahead Selected EE countries: Slovenia, the Czech Republic Team members: Josephine Kittner (team leader), Bogdan Andrei Nationality of team members: Germany, Romania
  • 2. THE EE MARKET AND ITS PERSPECTIVES General situation  EE countries are characterized by having different levels of development, therefore they have high level of inequality  The Russian Federation, Poland, Czech Republic, Slovenia, Slovakia, Hungar y, Turkey & Ukraine are the most developed states, having mostly positive growth rates which are characterized as high developed countries by World Bank  Developed EE countries are mainly concentrated in the textile industr y, automobile production, agriculture and generally in manufacturing  In some EE countries energy has an important place on the agenda, especially due to the environmental challenges (ex: Ukraine)– oppor tunity for future industr y vs. threat for population and economy through high costs  In genera, EE countries are heading towards greater division between the emerging economies and those which are developing much slower
  • 3. The chosen countries: WHY Slovenia and the Czech Republic CHOOSE SL AND CZ?  Most companies small to medium-sized, / Major role of SME sector in the economy E x p er t is e  Most impor tant industries: Ser vices, IT, automobile manufacturing, telecommunications W i l l i n g n e s s to  Slovenia and the Czech Republic have ver y high learn number of mean year s of schooling  academic elite/high per formance potential High e d u c a t io n a l  Slovenia‘s gross domestic expenditure on R&D is l ev e l above EU average (ranks 4th of EU in 2010, OECD ranking)  high willingness to advance and Good social innovate s t r uc t ur e s Ex: Slovenia won Most Innovative Brand 2012 award for high quality and design High  Both countries could recover quickly from the understanding of CSR economic crisis, Czech Republic (-0,3% GDP growth rate in Q3 2012) could recover slightly better than Slovenia (-0,6% in Q3 2012) H i g h p o te n t i a l
  • 4. Online sur vey via Stellar Sur vey KEY POINTS  Participation of 70 persons from all over Europe AND (Bachelor and Master students, Graduates) RESULTS  Focus of questions: general trends of EE countries, potential industries, classification of most 3 c o u n t r ie s w i t h impor tant EE countries with regards to expected highest development ex p e c t a t io n s to grow:  The majority of the inter viewees (37%) think that C z e c h Re p u b li c , the IT industr y will be the most impor tant in 2022 C r o a t i a & S l o ve n i a  50% think that EE could become more competitive than Western Europe and East Asia 3 most important  40% consider “engineer” to be the most wanted pillars: profession in 2022 Property rights, freedom from c o r r up t io n & f i s c al The online sur vey confirmed our assumption of freedom concentrating on the IT sector in the Czech Republic 3 m o s t c o m p et i t iv e It equally reflects the high impor tance of the industries in EE: energy industr y which we mentioned before and S e r v i c e s & I T, considered too vague E n e r g y, To u r is m
  • 5. THE CHOSEN INDUSTRY: IT Why choose the IT industr y? 1. Gain expor t strength and a competitive advantage compared to other European countries through knowledge and expertise; through higher expor ts foreign currencies flows into the economy 2. Facilitates job creation and the reduction of the unemployment rate, especially for young people; 3. Builds itself on an already developed industr y, through the exploitation of the high educational level in both countries prevention of emigration of valuable human capital 4. Promotes Foreign Direct Investment which is the key to success as it facilitates growth and expansion, makes firms more competitive, and equally enhances the whole economy 5. High focus on ser vices and markets outside EU
  • 6. CLUSTER BUILDING  Via the realization of the new industr y (IT branch) in Slovenia and the Czech Republic, the two countries will get closer structure wise  idea of following the same management style in the two countries, having the same corporate structure and language (English)  Promote growth easily by creating a pool of ideas and talents whilst following equal structures  Strong cooperation as a cluster concept between them, that will give the oppor tunity to share ser vices in weaker regions and enhance regional competitiveness  high working together in R&D depar tment as being essential
  • 7. COMPANY PROFILE General features:  Size: medium-sized company with up to 250 employees in both countries  Company type: Slovenian Limited Liability Company (due to lower corporate income taxes in Slovenia)  Means of financing: venture capital and foreign investors (minimum needed 7.500€ due to company type)  Products: ser vices and IT products such as software, electronic hardware, ser vice and planning systems, electronic of fices  Most impor tant department: Finance due to constant need for investments in innovation, research, technology, logistics and marketing
  • 8. A QUESTION OF ST YLE AND THE KEY TO SUCCESS Other company features:  Use exper tise and investment in R&D to develop new products and attract new clients, the CR and SL working closely together having the same long-term goals  English as corporate language to simplify access for foreign employees (integration programs for employees, language courses)  Strong CSR policy regime  Application of Scandinavian management style:  flat hierarchy and high transparency  high employee motivation via paid vacations, secure contracts, creation of long-term relationships with employees, special work incentives and workshops, promotion options even on small levels, integration of ever y employee in the working process
  • 9. (INTERNATIONAL) NETWORK CREATION 1. phase: Creation of unified company image and understanding; internal network between Slovenia and the Czech Republic – overcome language barriers by special teaching systems, deepen cluster 2. phase: high corporation with EU countries as soon as possible, attracts EU companies to co-operate closely, intend to attract foreign graduates by social management style and English as corporate language, focus on export of high quality IT products 3. phase: open up to international markets, create a brandmark and customer awareness in a global sense