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COMPETITIVENESS OF EASTERN EUROPE

    MEGA
    MINDS
      ADITHYA KUMAR
  (INDIA/CZECH REPUBLIC)
     OLESIA SKIBINSKA
(UKRAINE/CZECH REPUBLIC)
Diversity & Complexity of EE will push towards sub-grouping of
countries which will see a sustained and co-operative growth by 2020

                                        Central Europe • 60% of the population envision a trend towards sub-
                                                         grouping of EE.
                                                       • 3.8% GDP Growth expected till 2015 in CEE, 4.2% for
                                                         Russia and 4.5% for Turkey.
                                       Baltic States   • 1.6% Growth in Volume of Business for CEE by 2020.
                                                       • Suggested investment in R&D countries is 3% of GDP on
                                                         average by 2020. (Source: Europe 2020 Vision, Roland
                                                         Roland Berger Report)
                                       CIS States
                                                                                              Our Forecasts for 2020:

                                                                                              The future focuses on the concept of
                                                                                              “SMART”
                                                                              Balkan States   • Sustainability
                                                                                              • Money (Micro-Credits)
                                                                                              • Awareness
                                                                                              • Research & Development
                                                                                              • Technology
                                               Turkey (West Asia)
Every picture used in this presentation are the copyright of their respective owners.
At present, most of the countries in EE are in TRANSITION from an
    Efficiency driven to an Innovation driven economy which signals a
    significant competitive advantage
       • Czech Rep., Slovakia & Slovenia are Innovation Driven Economies, with other EE
         countries making a fast transition from an Efficiency Driven to the Innovation Driven
         Economy.
       • While India and China are still stuck in the first stage which poses a good competitive
         advantage and access to opportunities.

       COMPETITIVE ADVANTAGES                                                           HOW TO TAKE ADVANTAGE OF THESE ADVANTAGES?

         • Relatively inexpensive                                                       •   Develop infrastructure.
           yet talented workforce.                                                      •   Simplify bureaucracy and tackle corruption.
         • Cultural similarity                                                          •   Receptiveness to new ideas and innovations.
           between East and West                                                        •   Accentuate risk-taking!
           Europe.                                                                      •   Improve management of resources (financial and
         • Geographical                                                                     non-financial)
           Advantage.
         • High Growth Potential.
         • Unexplored resources.


                                                                                                 Source: Own Primary Research; Global Competitiveness Report 2012-2013
Every picture used in this presentation are the copyright of their respective owners.
An Insider’s View supports our previously mentioned strategies
towards a competitive region with a bright future…
“Opportunities in creating a better place, as we could build a better world on learning
on the mistakes of big western countries” – Student, SLOVAKIA
“These countries are already quite
                                                        “Focus on the potential of its
differentiated. The local cultures
                                                        emerging markets and making
and mentality are far different
                                                        business in the region easier to
from Western Europe, USA, Asia,
                                                        conduct and more risk-free” –
Middle East etc.” – Project
                                                        Analyst, ROMANIA
Manager, BULGARIA

“The IT industry is obviously booming so that can be an option, but also agriculture can
use a technological boost especially since farming areas are good in Eastern countries” –
Student, ESTONIA

 “The main weakness is that we                “Opportunity is that more and more people
 don’t know how to capitalise                 feel like part of the bigger world and chances
 on available resources.” –                   are that our self confidence will grow.” –
 Student, CZECH REPUBLIC                      Entrepreneur, UKRAINE

 “Even if the young professionals are well trained, the senior population is growing
 which I perceive as the main challenge.” – Retired Professor, RUSSIA
…which the Non-Europeans
agree!


“Psychological Strength of the people who
have experienced a lot of hardship in their
lives, without always having their personal
comfort, it's an advantage!” –
Soldier, CANADA                                “Slowness in execution and adopting reforms,
                                               Corruption and Red-Tapism are some of the
                                               major obstacles on the way to a very bright
                                               future!” – Exchange Student, TURKEY
“Through encouraging entrepreneurship
and focusing not so much on large
corporations, especially on small              “Unique Cultural Heritage increases the
businesses that carry the traditions and       likelihood of service-based businesses
culture that are so unique for this region.”   especially in attracting tourists and FDI.” –
– Senior Professor, USA                        Student, INDIA
We envision a rejuvenation among traditional industries with a
    new and improved ideas and approaches




    INFORMATION TECHNOLOGY                                                              AGRICULTURE               SCIENCE & RESEARCH
  • Computer programming,                                                         Especially Non-EU Countries   • Biotech and
  • Telecommunication,                                                                                            Bioinformatic Research
  • Network security and                                                          • Micro-credits for farmers     Centers
    computer consultancy,                                                         • Organic farming             • Envision EE as an origin
  • Computer facility                                                             • Agri-consulting               of a “Next Industrial
    management,                                                                   • Sustainable livestock         Revolution”.
  • Entertainment software,                                                         management.
  • Virtual                                                                       • Renewable energy.
    workplaces/enterprises
    (alliances)
Every picture used in this presentation are the copyright of their respective owners.
Traditional Organization structures will peacefully co-exist with our
  vision of a new futuristic structure…

                   Traditional
                   Privately owned small
                   companies (Flat
                   organizational structure)
                   Privately owned Medium
                   sized companies (Matrix
                   organizational structure)


                  Futuristic

           Virtual Enterprises with an                                                  • These enterprises will operate via electronic
           Abstract Structure (For                                                        means. (For ex, virtual workplaces, etc.)
           Example, CEO in Ukraine, CFO                                                 • These enterprises allow sharing of knowledge,
           in Czech Republic and Other                                                    expertise and resources.
           team members spread out
                                                                                        • Governments could be a potential partner in
           across the region)
                                                                                          such enterprises that boosts friendliness and
                                                                                          cooperation within the region.
Every picture used in this presentation are the copyright of their respective owners.
… and these companies will either Cooperate or Compete with the
rest of the world!


   Cooperation                                                  Competition


       • Platform for interaction       • With effective use of
         between West & East.             competitive advantage the
       • Act as partner and               region could attract huge
         mediator between the two         foreign investment.
         worlds.                        • Cultural similarities and
       • Benefiting from sharing of       geographical advantage will
         knowledge and expertise.         fasten the ROI for the
       • Allows formation of Virtual      Western Investors.
         Alliances thereby creating     • Companies and the region
         stronger relationships.          itself should be more
       • Strongly sustainable             upright and eager to take
         oriented with respect to the     risks and accept challenges.
         needs of the society at
         large.
Virtual Community Organizations as a way to move forward
towards a prosperous future
Each organization will have their own expertise and will interact with different entities as
follows:
• PPP (Public Private Partnerships) with the Local Governments fostering cross border
    innovation and entrepreneurship.
• Networking with universities and benefiting from fresh ideas and quick
    implementation of these ideas.
• Facilitates interaction between other companies thereby achieving constant
    sustainable growth thereby cutting down on costs.
• Such companies can interact with their end-customers giving them an opportunity to
    create their own unique product thus being totally customer-oriented and achieving
    sustainability in the process.
• Improving the retention rate of people within their own country through the provision
    of micro-credits thus giving rise to new innovations and economic growth.
Research & Development is the axle of any company’s wheel that takes prime
  importance in our vision for a future company in this region which actively
  cooperates and inspires the other departments in a company.


                       FINANCE                                                                PRODUCTION



                                                                                        R&D



                                                                                                MARKETING
HUMAN
RESOURCES




                    IT/SYSTEMS                                                                LOGISTICS

Every picture used in this presentation are the copyright of their respective owners.

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[Challenge:Future] Mega Minds: Moving Forward, The Virtual Way!

  • 1. COMPETITIVENESS OF EASTERN EUROPE MEGA MINDS ADITHYA KUMAR (INDIA/CZECH REPUBLIC) OLESIA SKIBINSKA (UKRAINE/CZECH REPUBLIC)
  • 2. Diversity & Complexity of EE will push towards sub-grouping of countries which will see a sustained and co-operative growth by 2020 Central Europe • 60% of the population envision a trend towards sub- grouping of EE. • 3.8% GDP Growth expected till 2015 in CEE, 4.2% for Russia and 4.5% for Turkey. Baltic States • 1.6% Growth in Volume of Business for CEE by 2020. • Suggested investment in R&D countries is 3% of GDP on average by 2020. (Source: Europe 2020 Vision, Roland Roland Berger Report) CIS States Our Forecasts for 2020: The future focuses on the concept of “SMART” Balkan States • Sustainability • Money (Micro-Credits) • Awareness • Research & Development • Technology Turkey (West Asia) Every picture used in this presentation are the copyright of their respective owners.
  • 3. At present, most of the countries in EE are in TRANSITION from an Efficiency driven to an Innovation driven economy which signals a significant competitive advantage • Czech Rep., Slovakia & Slovenia are Innovation Driven Economies, with other EE countries making a fast transition from an Efficiency Driven to the Innovation Driven Economy. • While India and China are still stuck in the first stage which poses a good competitive advantage and access to opportunities. COMPETITIVE ADVANTAGES HOW TO TAKE ADVANTAGE OF THESE ADVANTAGES? • Relatively inexpensive • Develop infrastructure. yet talented workforce. • Simplify bureaucracy and tackle corruption. • Cultural similarity • Receptiveness to new ideas and innovations. between East and West • Accentuate risk-taking! Europe. • Improve management of resources (financial and • Geographical non-financial) Advantage. • High Growth Potential. • Unexplored resources. Source: Own Primary Research; Global Competitiveness Report 2012-2013 Every picture used in this presentation are the copyright of their respective owners.
  • 4. An Insider’s View supports our previously mentioned strategies towards a competitive region with a bright future… “Opportunities in creating a better place, as we could build a better world on learning on the mistakes of big western countries” – Student, SLOVAKIA “These countries are already quite “Focus on the potential of its differentiated. The local cultures emerging markets and making and mentality are far different business in the region easier to from Western Europe, USA, Asia, conduct and more risk-free” – Middle East etc.” – Project Analyst, ROMANIA Manager, BULGARIA “The IT industry is obviously booming so that can be an option, but also agriculture can use a technological boost especially since farming areas are good in Eastern countries” – Student, ESTONIA “The main weakness is that we “Opportunity is that more and more people don’t know how to capitalise feel like part of the bigger world and chances on available resources.” – are that our self confidence will grow.” – Student, CZECH REPUBLIC Entrepreneur, UKRAINE “Even if the young professionals are well trained, the senior population is growing which I perceive as the main challenge.” – Retired Professor, RUSSIA
  • 5. …which the Non-Europeans agree! “Psychological Strength of the people who have experienced a lot of hardship in their lives, without always having their personal comfort, it's an advantage!” – Soldier, CANADA “Slowness in execution and adopting reforms, Corruption and Red-Tapism are some of the major obstacles on the way to a very bright future!” – Exchange Student, TURKEY “Through encouraging entrepreneurship and focusing not so much on large corporations, especially on small “Unique Cultural Heritage increases the businesses that carry the traditions and likelihood of service-based businesses culture that are so unique for this region.” especially in attracting tourists and FDI.” – – Senior Professor, USA Student, INDIA
  • 6. We envision a rejuvenation among traditional industries with a new and improved ideas and approaches INFORMATION TECHNOLOGY AGRICULTURE SCIENCE & RESEARCH • Computer programming, Especially Non-EU Countries • Biotech and • Telecommunication, Bioinformatic Research • Network security and • Micro-credits for farmers Centers computer consultancy, • Organic farming • Envision EE as an origin • Computer facility • Agri-consulting of a “Next Industrial management, • Sustainable livestock Revolution”. • Entertainment software, management. • Virtual • Renewable energy. workplaces/enterprises (alliances) Every picture used in this presentation are the copyright of their respective owners.
  • 7. Traditional Organization structures will peacefully co-exist with our vision of a new futuristic structure… Traditional Privately owned small companies (Flat organizational structure) Privately owned Medium sized companies (Matrix organizational structure) Futuristic Virtual Enterprises with an • These enterprises will operate via electronic Abstract Structure (For means. (For ex, virtual workplaces, etc.) Example, CEO in Ukraine, CFO • These enterprises allow sharing of knowledge, in Czech Republic and Other expertise and resources. team members spread out • Governments could be a potential partner in across the region) such enterprises that boosts friendliness and cooperation within the region. Every picture used in this presentation are the copyright of their respective owners.
  • 8. … and these companies will either Cooperate or Compete with the rest of the world! Cooperation Competition • Platform for interaction • With effective use of between West & East. competitive advantage the • Act as partner and region could attract huge mediator between the two foreign investment. worlds. • Cultural similarities and • Benefiting from sharing of geographical advantage will knowledge and expertise. fasten the ROI for the • Allows formation of Virtual Western Investors. Alliances thereby creating • Companies and the region stronger relationships. itself should be more • Strongly sustainable upright and eager to take oriented with respect to the risks and accept challenges. needs of the society at large.
  • 9. Virtual Community Organizations as a way to move forward towards a prosperous future Each organization will have their own expertise and will interact with different entities as follows: • PPP (Public Private Partnerships) with the Local Governments fostering cross border innovation and entrepreneurship. • Networking with universities and benefiting from fresh ideas and quick implementation of these ideas. • Facilitates interaction between other companies thereby achieving constant sustainable growth thereby cutting down on costs. • Such companies can interact with their end-customers giving them an opportunity to create their own unique product thus being totally customer-oriented and achieving sustainability in the process. • Improving the retention rate of people within their own country through the provision of micro-credits thus giving rise to new innovations and economic growth.
  • 10. Research & Development is the axle of any company’s wheel that takes prime importance in our vision for a future company in this region which actively cooperates and inspires the other departments in a company. FINANCE PRODUCTION R&D MARKETING HUMAN RESOURCES IT/SYSTEMS LOGISTICS Every picture used in this presentation are the copyright of their respective owners.