2011

Cluster – Strategy as a challenge

Rinalds CelmiņšDeputy Executive Director

Latvian IT Cluster

The presentation is being organised under a Polish Agency for Enterprise Development undertaking entitled: “Polish clusters and cluster policy”.

The undertaking is being implemented under system project: “Human resources development through promotion of knowledge, transfer and dissemination of innovation” financed by the European Union under the European Social Fund, from the resources of the Human Resources Operational Programme, sub-measure 2.1.3.

The undertaking of Polish Agency for Enterprise Development ‘Polish clusters and cluster policy’ activity is being implemented under the honorary auspices of the Minister of Economy.

2012

Opole, 23st March 2012

Cluster – Strategy as a challengeRinalds Celmiņš

Deputy Executive DirectorLatvian IT Cluster

Opole, Poland March 23, 2012

Latvia

• Location: Eastern Europe, bordering the Baltic Sea, between Estonia and Lithuania

• Capital: RIGA• Area: 64,589 sq km (slightly larger

than West Virginia)

• Natural resouces: peat, limestone, dolomite, amber, hydropower, timber, arable land

• Population: 2,2 mil.• GDP per capita: $14,300

https://www.cia.gov/library/publications/the-world-factbook/geos/lg.html

2nd – EU Top 5 countries by renewables8th – World’s greenest country (after New Zealand)10th in the world-broadband distribution speed

3

A Business Cluster

• A business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field

• Clusters are considered to increase the productivity with which companies can compete, nationally and globally(http://en.wikipedia.org/wiki/Business_cluster)

4Arjeplog – Winter Car Testing

Top-down vs. bottom-up approach

OPERATIONS – bottom-up

SET-UP – top-down

Resource: Clusterland UpperAustria 5

Building successful cross-sectoral partnerships require

Time

Long-term commitmentEqual partnership from each sector at the tableJointly developing and setting goals

Appropriately aligning interests

6

LITC STRATEGY (1)

General Part Justificiation/reason 4 cluster establishment Vision of Cluster Short term impact Long term impact Results – indicators Partnership/consortium SWOT

7

LITC STRATEGY (2)

Action Part Cluster development tendencies Cluster impact on economy Analyse cluster specialisation / niche products Implementation roadmap of cluster specialisation / niche products Competence map Ways/tools to achieve competitiveness

8

LITC STRATEGY (3)

Action Part Indicators

Activity planDefine Priorities Define actions Define tools

9

Case StudyLATVIAN IT CLUSTER

...IT helps to save and to reduce costs....

10

IT applications can help to

• manage our natural resources better

monitor and prevent natural disasters

spread environmental awareness...and much more...

IT should be regarded more asa solution, rather than a problem!

11

Just a few points were we are...

RIGA

12

We are also proud of systems developed for ...

NATO

13

History• Top IT companies, universities, R&D

institutions in Latvia • Operates - 2000, legal – 2007• Agreement (co-operation, collaboration, co-

opetition)• Code of Ethics• Monthly Fee, Administrative staff

14

15

WE GO FOR…

R & D

Collaboration Quality and Reliability

CompetenciesInnovation

VALUES !

Main are the

Latvian IT Cluster companies

16

2010Turnover ~ 118 mlj.Euro38% - export~ 2100 employees

16

Co-operation Partners

LATVIJAS LAUKSAIMNIECĪBAS UNIVERSITĀTELATVIJAS LAUKSAIMNIECĪBAS UNIVERSITĀTE

Belarusian High Technologies Park Belarusian High Technologies Park

17

FinancePayments (card, micro-, online) Anti-fraud Automated decision making

InsuranceIntroduction of online policies

IT developmentCustom-made or adaptation of international productsCompetence in servicing public institutions (state, municipal, specialised)DB management systemsLinguistic systems

IT consultationsERP (SAP), CRM, accounting Business process outsourcing

IT infrastructureData centres Support to users of PCs and peripherals in different languages

E-governance E-health

Key industry segments withIT expertise

18

Common International

Projects.

19

IT Demo Center

«

20

LV-EE project «ICT DCNet»

During 6 years

Strategic aims reached by:• Common understanding • Widely recognised image• 5 local (ESF, ERDF, government) projects implemented• 6 projects are under implementation (international +

local)• Attracted funds – more than 2 M EUR • Now implementation projects 2 M Eur

21

Collaboration models (1)

• Custom-made software (separate projects)– Medium-to-large Latvian IT companies ready to provide price estimates and discuss technical capacities

• Continuous service (outsourcing, regular batch-work)– Integration of Latvian partner possible and not resource-

consuming– Detailed cooperation agreement still suggested

• Joint applications– E.g.,technologically challenging international or state-level

projects - a big challange for IT companies

22

Collaboration models (2)

• Consumer market is open for new products• Localization is not an issue, in case partnering with a

local company • B2B market very diverse, companies with modern

management & IT systems• ERP and CRM already offered widely

23

We can develop things together!

Latvian IT Cluster (www.itbaltic.com)

24

Thank you!

IT Cluster ready to facilitate and support, maximizing your gain from working with

Latvian IT companies

ITCluster@itbaltic.com www.itbaltic.com

Ph: +371-67089815

25