Overview ofOverview of

Gümüşhane University’sProductivity Improvement and Collaborative Outreach

(PICO)

June, 2012

AgendaAgenda

Major FactsMajor Facts

Primary TasksPrimary Tasks

Major Challenges of Turkish SMEsMajor Challenges of Turkish SMEs

Challenges of Contemporary GlobalismChallenges of Contemporary Globalism

Major PointsMajor Points

ConclusionsConclusions

Major FactsMajor Facts

Turkish Small-Medium Enterprises (SMEs):Turkish Small-Medium Enterprises (SMEs):

Employ 65% of the entire national workforceEmploy 65% of the entire national workforce

Contribute 36% to the country’s GDP (Izmir University of Economics)Contribute 36% to the country’s GDP (Izmir University of Economics)

Turkish SMEs easily affected by changes in competitive and technological Turkish SMEs easily affected by changes in competitive and technological

environments (US Embassy Ankara)environments (US Embassy Ankara)

Turkish SMEs usually need assistance with business activities (e.g. Marketing)Turkish SMEs usually need assistance with business activities (e.g. Marketing)

Turkish SMEs are generally unaware of the direct effects of globalization on their Turkish SMEs are generally unaware of the direct effects of globalization on their

companies (e.g. Competition, Business / Product Cycles)companies (e.g. Competition, Business / Product Cycles)

Creative solutions to business challenges are often in short supply (KOSGEB)Creative solutions to business challenges are often in short supply (KOSGEB)

Major geopolitical changes happening now that will affect business performanceMajor geopolitical changes happening now that will affect business performance

Primary TasksPrimary Tasks

Leverage “Best Practices” across industries for improved

performance by developing training and related programs

Share information among domestic expert groups

Promote a “culture of learning” in Turkish SMEs

Review new commercial technologies / markets / research

Facilitate knowledge transfer to client teams

Collaborate with foreign expert teams and organizations

Major Challenges forMajor Challenges forTurkish SMEsTurkish SMEs

Difficulty in accessing new markets and financingDifficulty in accessing new markets and financing

Unsustained profitabilityUnsustained profitability

Uneven Information Technology use and management professionalismUneven Information Technology use and management professionalism

Lack of formal procedures and disciplineLack of formal procedures and discipline

Low levels of innovation / creative problem solvingLow levels of innovation / creative problem solving

Lack of skilled laborLack of skilled labor

Lack of knowledge regarding government supportLack of knowledge regarding government support

Individualistic vs. group work cultureIndividualistic vs. group work culture

Challenges of Challenges of ContemporaryContemporaryGlobalizationGlobalization

Peter Drucker’s “Five Certainties”: Collapsing birthrates in developed economies, Peter Drucker’s “Five Certainties”: Collapsing birthrates in developed economies,

redistribution of disposable income, global competitiveness, economic/political redistribution of disposable income, global competitiveness, economic/political

incongruence, and redefinition of corporate performanceincongruence, and redefinition of corporate performance

Global economy developing into region-states (Baltic Corner, BRIC, CIVETS)Global economy developing into region-states (Baltic Corner, BRIC, CIVETS)

AgeAge of the “Knowledge Worker” of the “Knowledge Worker” and serious skills gaps worldwide and serious skills gaps worldwide

Business and Product Life Cycles drastically altered due primarily to the speed of Business and Product Life Cycles drastically altered due primarily to the speed of

technology development and usetechnology development and use

Corporate capital and liquidity buffers must be increased for unexpected Corporate capital and liquidity buffers must be increased for unexpected

developments in global marketsdevelopments in global markets

Global inflationGlobal inflation

Major PointsMajor Points

Over time PICO should be completely Over time PICO should be completely

independent in its activitiesindependent in its activities

PICO to work initially with KOSGEB and other relevant PICO to work initially with KOSGEB and other relevant

organizations in Turkey (e.g. TOBB, YOIKK, US Embassy)organizations in Turkey (e.g. TOBB, YOIKK, US Embassy)

Ultimate goal is to increase university’s Ultimate goal is to increase university’s

image and to become a profit-center, not image and to become a profit-center, not

a cost-centera cost-center

ConclusionsConclusions

PICO will collaborate with Turkish SMEs to PICO will collaborate with Turkish SMEs to

become more productive and profitablebecome more productive and profitable

Primary tasks include: 1) Leveraging “Best Primary tasks include: 1) Leveraging “Best

Practices”; 2) Share information among domestic Practices”; 2) Share information among domestic

expert groups; 3) Promote a “culture of learning” expert groups; 3) Promote a “culture of learning”

in SMEs; 4) Review new markets, etc.; 5) in SMEs; 4) Review new markets, etc.; 5)

Facilitate knowledge to client teams; 6) Facilitate knowledge to client teams; 6)

Collaborate with foreign expertsCollaborate with foreign experts

Ultimate goal is to increase university’s image and Ultimate goal is to increase university’s image and

public awarenesspublic awareness

Profit center-oriented in the long-termProfit center-oriented in the long-term

Productivity Improvement and Collaborative Outreach

(PICO)

+90-456-233-7425 ext. 1194