Proposal of Cluster developement in Syria


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Is an abstract of a final report for the developement of three clusters in Syria

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Proposal of Cluster developement in Syria

  1. 1. A PROPOSAL TO SUPPORT THE STRENGTHENING OF SYRIAN’S Small & Medium Enterprise (SME) THROUGH CLUSTER DEVELOPMENT PROGRAMME (CDP) Presented by Davide Menini Senior Marketing and Sales Expert Damascus February 2010
  2. 2. Context <ul><li>The need for SMEs to be organized in viable groups in order to exploit the advantage of economies of scale. </li></ul><ul><li>Increase SMEs production </li></ul><ul><li>Increase the Commercialization Capacity </li></ul><ul><li>Diversify products through Research & Development (R&D) programs </li></ul><ul><li>Develop markets for Syrian’s SMEs products </li></ul><ul><li>Improve quality and comply with sanitary, and/or technical standard regulations for the local and international markets </li></ul><ul><li>Set up services reaching Syrian’s SMEs to enable them to link into export supply chains </li></ul>February 2010 Davide Menini /20
  3. 3. Clusters Development Program (CDP): an opportunity for Syrian's SMEs <ul><li>Cluster Development Program (CDP) is an approach where enterprises combine their strengths and jointly take advantage of business opportunities or solve common problems. Similar programs are political priority in several industrialized, semi-industrialized and non-industrialized country, because: </li></ul><ul><ul><li>strengthening country economy </li></ul></ul><ul><ul><li>improve modernization of industrial sector </li></ul></ul><ul><ul><li>promoting industrial cooperation </li></ul></ul><ul><ul><li>improve competitiveness of local enterprises </li></ul></ul><ul><ul><li>encouraging internationalization process </li></ul></ul><ul><ul><li>develop political to support R&D </li></ul></ul><ul><ul><li>increase workforce competitiveness </li></ul></ul><ul><ul><li>prevent the decline of productive sectors and the employment destruction </li></ul></ul><ul><ul><li>stimulate the generation of new enterprise </li></ul></ul><ul><ul><li>stimulate new business models </li></ul></ul>Davide Menini /20 February 2010
  4. 4. What is a Cluster? <ul><li>Clusters are geographic concentration of interconnected companies and institutions. In a cluster can participate: </li></ul><ul><ul><li>Suppliers: </li></ul></ul><ul><ul><ul><li>Machinery, Equipment </li></ul></ul></ul><ul><ul><ul><li>Raw material </li></ul></ul></ul><ul><ul><ul><li>Semi elaborated products </li></ul></ul></ul><ul><ul><ul><li>Packaging </li></ul></ul></ul><ul><ul><ul><li>Services (transports, etc..) </li></ul></ul></ul><ul><ul><ul><li>Industries related by skills </li></ul></ul></ul><ul><ul><ul><li>Specialized infrastructure </li></ul></ul></ul>Davide Menini /20 <ul><ul><li>Institutions: </li></ul></ul><ul><ul><ul><li>Governmental institutions </li></ul></ul></ul><ul><ul><ul><li>Universities </li></ul></ul></ul><ul><ul><ul><li>Standard-settings Agencies </li></ul></ul></ul><ul><ul><ul><li>Vocational Training Provider </li></ul></ul></ul><ul><ul><ul><li>Trade agencies </li></ul></ul></ul><ul><ul><ul><li>Laboratories </li></ul></ul></ul>February 2010
  5. 5. ¿What are the benefits for companies that participate in a cluster? Davide Menini /20 <ul><ul><ul><li>Support during the definition strategy of business and R&D. </li></ul></ul></ul><ul><ul><ul><ul><li>Business model development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Product development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Industrial process optimization </li></ul></ul></ul></ul><ul><ul><ul><li>Cluster Positioning </li></ul></ul></ul><ul><ul><ul><ul><li>Support in marketing activities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Support commercialization and distribution process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Participation in fairs (grant, fellowship and support program) </li></ul></ul></ul></ul><ul><ul><ul><li>Cluster Management and Internationalization </li></ul></ul></ul><ul><ul><ul><ul><li>Internationalization plans </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Support in positioning process </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Support in research and recruitments of internationals distributors, agents and brokers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Financial search </li></ul></ul></ul></ul><ul><ul><ul><ul><li>New companies search </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Relations with national and international Institutions and politicians </li></ul></ul></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><ul><ul><li>Training programs for managers (Masters and PhD) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Life long learning for workforce </li></ul></ul></ul></ul>February 2010
  6. 6. Role and key elements of CDP <ul><li>Role </li></ul><ul><li>To strengthen and enhance the competitiveness of enterprises within a particular sub-sector. </li></ul><ul><li>Key elements </li></ul><ul><ul><li>Trust building </li></ul></ul><ul><ul><li>Cooperation and/or joint action among the sub-sector actors </li></ul></ul><ul><ul><li>Coordination by full time Cluster Development Agent (CDA) </li></ul></ul><ul><ul><li>Implementation of a Strategic Action Plan, </li></ul></ul>Davide Menini /20 February 2010
  7. 7. Types of joint activities Davide Menini /20 February 2010 Trust building <ul><li>Meeting, </li></ul><ul><li>Exposure, </li></ul><ul><li>Seminar/workshop </li></ul>Pilot activities <ul><li>Technical lectures/seminars/workshops </li></ul><ul><li>Demonstration of new technology </li></ul>Regular (short/medium run) activities <ul><li>Participation in fairs, </li></ul><ul><li>Raw material purchases, </li></ul><ul><li>Quality improvement </li></ul><ul><li>Training/consultancy, </li></ul><ul><li>Outsourcing business development services, </li></ul><ul><li>Skill up-progression </li></ul>Strategic (long run) initiatives <ul><li>Brand building, </li></ul><ul><li>Laboratory creation, </li></ul><ul><li>Information centre, </li></ul><ul><li>R&D centre, </li></ul><ul><li>Technology modernization </li></ul>Improvement of linkages <ul><li>Networks formulation, </li></ul><ul><li>Association </li></ul><ul><li>Institution building </li></ul><ul><li>Restructuring and industrial reconversion </li></ul>
  8. 8. Project Proposal – by Davide Menini and SEBC <ul><li>Pilot project based in Damascus (two agro food clusters) and Aleppo (footwear cluster) </li></ul><ul><li>Train 30 - 40 key actors including prospective cluster CDA in order to raise general understanding of this program and initial capacity for trust building. </li></ul><ul><li>Conduct an in-depth diagnostic study of Agro food and footwear SMEs in the cluster to : </li></ul><ul><ul><li>Understand the socio-economic environment of the cluster; </li></ul></ul><ul><ul><li>Identify the most effective leverage points for intervention; </li></ul></ul><ul><ul><li>Provide a baseline for future monitoring and evaluation; </li></ul></ul><ul><ul><li>Build initial trust with and among the stakeholders. </li></ul></ul>Davide Menini /20 February 2010
  9. 9. Project Proposal <ul><li>Building on the findings of the diagnostic study, and working in close cooperation with the cluster stakeholders. Develop a vision for each cluster and a strategy to achieve it, as well as the cluster action plan. </li></ul><ul><li>The diagnostic study will be a basis for developing and implementing longer term visions, goals and action plans aimed at improving the competitiveness of the cluster. </li></ul><ul><li>This project can be replicated in different clusters in the country. </li></ul>Davide Menini /20 February 2010
  10. 10. Structure of the Action Plan to implement the Proposed Pilot Project Davide Menini /20 Stage I: Trust building Stage II: Diagnosis Stage III: Strategy Stage IV: Implementation Building interest and involvement among the different participants. Assessing the industry clusters. Identify priority challenges, and action plan.  Stage V: Evaluation Create an organization to sustain the implementation.  Set up a permanent Syrian Cluster Observatory February 2010
  11. 11. Stage I: Trust building <ul><li>Among players and between players and CDA </li></ul><ul><li>Entails / Implies </li></ul><ul><ul><li>Sustained interaction </li></ul></ul><ul><ul><li>Recognition & communicating of mutual benefits/interests </li></ul></ul><ul><ul><li>Recognize shared values </li></ul></ul><ul><ul><li>Identify leaders </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Prepares to share risks </li></ul></ul><ul><ul><li>Prepares to share information </li></ul></ul><ul><ul><li>Learning & Innovating together </li></ul></ul>Davide Menini /20 February 2010
  12. 12. Stage II: Diagnostic Davide Menini /20 <ul><li>Entails / Implies </li></ul><ul><ul><li>Definition of objectives </li></ul></ul><ul><ul><li>Definition of model and methodology of analysis </li></ul></ul><ul><ul><li>Personals visits and interviews with the entrepreneur </li></ul></ul><ul><ul><li>In depth analysis of each enterprise </li></ul></ul><ul><ul><li>Definition of a personalized viability plan </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Deep analysis of business operation </li></ul></ul><ul><ul><li>Customization of the cluster participation project </li></ul></ul><ul><ul><li>Developing current reality tree </li></ul></ul>February 2010
  13. 13. Stage III: Development of Cluster Strategy Davide Menini /20 <ul><li>Entails / Implies </li></ul><ul><ul><li>Create highly inclusive cluster working groups, </li></ul></ul><ul><ul><li>Select working group leaders  </li></ul></ul><ul><ul><li>Create accountability mechanisms, and progress milestones throughout the process.  </li></ul></ul><ul><ul><li>Develop concrete action plans, focusing on reform and redesign of services, adding value to existing resources, and enabling market innovation.  </li></ul></ul><ul><ul><li>Establish the market viability of each initiative to ensure the necessary support from stakeholders for taking action. </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Developing a cluster map </li></ul></ul><ul><ul><li>Industry structure analysis </li></ul></ul><ul><ul><li>Value chain analysis </li></ul></ul><ul><ul><li>Stakeholders implication </li></ul></ul>February 2010
  14. 14. Stage IV: Implementation Davide Menini /20 <ul><li>Entails / Implies </li></ul><ul><ul><li>Create a Cluster Development Agent (CDA) to head and supervise the initiative.  </li></ul></ul><ul><ul><li>Identify sources of ongoing funding, which would be appropriate with the type and scale of the action plan initiatives.  </li></ul></ul><ul><ul><li>Develop a monitoring system to track activities and communicate the outcomes, focusing on regional economic performance, structure and health of industry clusters, and the response to clusters by the economic infrastructure. </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Strategical vision </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Focused Project Objectives </li></ul></ul>February 2010
  15. 15. Stage V: Evaluation Plan of cluster initiative. Davide Menini /20 <ul><li>Entails </li></ul><ul><ul><li>Definition of the indicators and methodology </li></ul></ul><ul><ul><li>Evaluate the Impact of CDP on the company base. </li></ul></ul><ul><ul><li>Evaluate Impact of CDP on the R&D&I base. </li></ul></ul><ul><ul><li>Evaluate impact of CDP on the cluster and the broader business environment. </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Benchmarking </li></ul></ul><ul><ul><li>Detection of error and/or deviations </li></ul></ul><ul><ul><li>Quick correction of errors </li></ul></ul><ul><ul><li>Develop improvement plans </li></ul></ul><ul><ul><li>Detection of opportunities </li></ul></ul>February 2010
  16. 16. CDP Calendar Stage I: Trust building Davide Menini /20 Time Action Plan activities Stage IV: Implementation Stage II: Diagnosis Stage III: Strategy Stage V: Evaluation process February 2010 1st year 2nd year onwards
  17. 17. Cluster Development Agent (CDA) – Role <ul><li>Become the Catalyst </li></ul><ul><li>Formulates and facilitates implementation of the development strategy, in collaboration with the entrepreneur, suppliers, traders, and active support institutions active in the sector </li></ul><ul><li>Generally comes from outside the cluster (not a stakeholder in the cluster) </li></ul><ul><li>To build trust among the cluster stakeholders, which is a crucial task. </li></ul><ul><li>Must be able to get stakeholders with divergent views to agree on targets and implementation priorities. </li></ul>Davide Menini /20 February 2010
  18. 18. Possible activities under the CDP <ul><ul><li>Must be based on identified gaps/bottlenecks in the cluster </li></ul></ul><ul><ul><ul><li>Build trust and training </li></ul></ul></ul><ul><ul><ul><li>Make Available information </li></ul></ul></ul><ul><ul><ul><li>Raise production volume </li></ul></ul></ul><ul><ul><ul><li>Improve processing methods </li></ul></ul></ul><ul><ul><ul><li>Improve quality </li></ul></ul></ul><ul><ul><ul><li>R&D, including market research </li></ul></ul></ul><ul><ul><ul><li>Promote value addition to the entrepreneurs </li></ul></ul></ul><ul><ul><ul><li>Facilitate access to credit and finance </li></ul></ul></ul>Davide Menini /20 February 2010
  19. 19. Other Possible activities under the CDP <ul><li>Competitiveness enhancement </li></ul><ul><ul><li>Promotion of complementary businesses </li></ul></ul><ul><ul><li>Promotion of policy dialogue through a stronger voice from grassroots enterprises as a joint action </li></ul></ul><ul><ul><li>Coordination and monitoring technical assistance provided by various development organisations at the grassroots level </li></ul></ul><ul><ul><li>Identifying and engaging business development services providers </li></ul></ul>Davide Menini /20 February 2010
  20. 20. Davide Menini <ul><li>Senior Consultant in Marketing strategy and analysis and Sales Strategy development </li></ul><ul><li>Professor of Marketing and Sales in several universities and institutions (La Salle, Euncet, UB, UAB, IQS, UPC, Trieste University, Barcelona Activa, ESVEN Business School, etc) </li></ul><ul><li>Senior Expert in MEDA programs, Leonardo Programs and Framework Programs in Arabs Countries and East Europe </li></ul><ul><li>CEO of Alto Rendimiento Empresarial </li></ul><ul><li>Director and Senior Consultant of ICC (Institute of Commercial and Sales Quality) </li></ul>Contacts:  +34605881858;  davide.