Session 4: Cluster Organisation Development

This project has received funding from the European Union’s

Seventh Framework Programme for research, technological

development and demonstration under grant agreement no.

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http://www.cit.ie

Monday 28th and Tuesday 29th of September 2015

Proudly Sponsored by:

Faculty of Business and Humanities & Cork County Council

As featured in:

Programme:• Session 1: Cluster Analysis - Academia.Monday 28th 2:30 to 4:30pm Venue: Seminar Room, CIT.• Session 2: Building International Collaborations - Industry.Monday 28th 6:00 to 7:30pm Venue: County Hall Council Chamber.• Session 3: Building Economic Growth Through Clusters - Policy.Tuesday 29th 10:00 to 12:00pm Venue: CIT Council Chambers.• Session 4: Cluster Organisation Development.Tuesday 29th 2:30 to 4:30pm Venue: Seminar Room, CIT.




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Cluster Organisations Role

What is the Key Ingredient of a Successful Cluster?

http://www.cit.ie/vlinc





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How to Understand Clusters

Clusters don’t need to be the next Silicon Valley to innovate and grow, they just need tounderstand, how they function, their members and how to build on their strengths &develop their weaknesses.

V-LINC is an expert methodology and software application which informs and develops policyrecommendations through mapping, visualising and analysing the strength of keyrelationships within Cluster Ecosystems. V-LINC can be applied to any industry sector.






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Tamara Högler

Head of Innovations and International Affairs CyberForum e.V.Karlsruhe, Germany.

CyberForum is a cluster which connects more than 1000firms from the high-tech and IT sector in Karlsruhe’sTechnology Region. Their membership includes start-up andsoftware companies to seasoned international IT suppliers.

CyberForum brings its members together whilst acting as anintermediary to support their development throughconnecting them with R&D competence, business contacts,and career development and training opportunities.

[email protected] @CyberForum

Joan Martí Estévez

Director of Cluster Development ACCIÓ (Catalan Agency for Competitiveness)Barcelona, Catalonia.

ACCIÓ is the Government agency responsible for thecompetitiveness of industry in Catalonia. ACCIÓ specialisesin promoting innovation and internationalization and has anetwork of 31 offices worldwide.

ACCIÓ has over 20 years of experience and knowledge insupporting developing programs and services for clusters tosupport the development of Catalan firms. ACCIÓ isattached to the Department of Enterprise and Employmentof the Generalitat of Catalonia.

[email protected] @JMartiClusters

Cluster Manager Presenters

mailto:[email protected]







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http://www.cit.ie

Running order for Session 4: Cluster Organisation Development

Thursday 10th of September 2015 13:00 – 14:00

www.cit.ie/vlinc

Tuesday 29th 2:30 to 4:30pm Venue: Seminar Room, Melbourne Building, CIT.Opening of Session by Mr Brian McGrath, Head of School of Business, CIT.

Tamara Högler (CyberForum) & Joan Martí Estévez (ACCIÓ) will discuss the following themes:• Development paths of clusters (cluster organisation).• Cluster Organisation Financing Structures – Providing value for Members.• Building productive links with State Agencies and Government Departments.• Identifying and developing common interest in projects amongst Cluster members.

Q&A



Governance. Cluster Organizations

Cork, 29th September 2015

CLUSTERS IN THE WORLD

2001199719921980

Regions and

countries with

initiatives

based on

cluster

development

•+

•-

Emilia-

Romagna

Toscana

....

Basque Country

Scotland

Arizona

Catalonia

Massachusetts New Zealand

Costa Rica

California

....

Sweden

Turkey

Lithuania

Austria

Jordanian

México

South Africa

....

France

Estonia

Denmark

Slovenia

UK

Minas Gerais

...

1990 2003

Aprox. More than 3.000 initiatives in different countries

and regions (*)

2005

Pakistan

Kazakhstan

Poland

….

2015

(*) Estimation from TCI,European Cluster Observatory 2011

Catalonia: a pioneer country

Cluster (“wild cluster”)

“Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions in particular fields that compete but also cooperate”Michael E. Porter

Footwear industry

Raw materials(recolectors)

Leather tannersFontanellas i Marti

Vidal BoschCurtidos Badia

Apparel industryGoes SA

Torras SA(...)

Chemical products

Cleaning and tanningAdovinbe

WarehouseBuyers

AssociationsUnió d’adobadors

CEC-FECURGremi de Blanquers

TechnologicalCentres

AIICA

S

L

A

U

G

H

T

E

R

H

O

U

S

E

S

Other end-users

Cluster initiative

“Cluster initiatives are organisedefforts to increase the growth andcompetitiveness of clusters withina region, involving cluster firms,government and/or the researchcommunity”

Örjan Sölvell, Göran Lindqvist & Christian Ketels in The Cluster Initiative Greenbook (2003).

Mapping AnalysisImplementation

Institutionalization

MentoringMonitoringEvaluation

Cluster association

Cluster organizations are entities thatare managing and representing acluster initiative.

A cluster organization does not necessarily have members, but it provides services to the cluster initiative participants.

A cluster association is a not for profit legally formed entity gathering businesses and other stakeholders involved in cluster initiatives

http://www.competitiveness.org/article/articleview/108/1/96/

http://www.competitiveness.org/article/articleview/108/1/96/

http://www.tci-network.org/organizations/card/259


http://www.railgrup.net/index.php

http://www.railgrup.net/index.php





uniqueness

Strategic Change Process

Month 0 Month 4

Competitive analysis

Strategic Analysis

Definition main characteristics of the sector

Strategic analysis (competitive strengths)

Environment analysis

Business tendencies at global level

Suggested actions for companies

Suggested actions for Government

Cluster monitoring

Pu

blic

presen

tati

on

Action plan

Companies’ Strategic change

Technological change

Executive training

Internationalization

Benchmarking

Strategic Dive

Tailored actions

Cluster Methodology

Month 16

1Understanding the business

2Changing the strategy in

the right direction

Set upcluster

association

3Stablishing governance

HiringClustermanager

4Guarantying

sustainability

Governance

Month 20

Analysis Udate after 4 years

Retailers

Contract Manufacturing Operator

Eleectrosthetic equipment

Secents

Providers

Cosmetics and perfumes

Knowledgecenters

Consulting and Certification

Cluster:

Ecosystem

3. Working with small groups with leaders sharing the same vision

But, how do we cooperate?

1. Creating Trust

2. Developing transformational projects based

on the strategic challenges

4. Searching for your own profitability but also “sweating the t-shirt” for others

Cooperation is a “muscle”

which develops exercising

MONEY FOR COFFEE

The ambidextrous cluster: Explore vs exploit

The future will be hybrid

Optics cluster

Health tecnologiescluster

Advanced materialsCluster

Fashion Cluster

Agricultural machineryCluster

ICT cluster

SHORT TERM LONG TERM

PRIVATE LEADERSHIP IS ESSENTIAL

HIGH PRIORITY

LOW PRIORITY

•Sourcing in China

•Marketing China

•Support to companies’ strategic change

• Tablet’s Promotion

•Connect

•Support to tax reliefs

•EU Brand

•LEGO

•Logistics in Morocco

•Promotion of retail

•Research in

ICT

•manufacturing centers

•OUTLET

•Training

•Brand marketing

•Simulation tools

•New products T.I

No projects without private leadership

Cluster Governance

“Classical” Business Association Cluster Association

Statistical code

Controlled by the big ones

Value chain

Lead by the active ones

Vertical: Presidentialist Horizontal:Coleadership by projects

LobbyTo foster strategic projects

Manager Cluster manager

“Tractor” Board“Institutional” Board

Immobilist Vision Adaptive Vision

Associated

members

Strategic Board

Cluster Manager

Font:The Cluster Initiative Greenbook

Cluster Governance

Snowball of credibility

Cluster board

- Shared values

- Small teams (9-13)

- Strategy definition

- Support to cluster manager

- Focus on well defined projects

- Shared leadership: horizontal

organization

First people, then strategy

TECHNOLOGICAL CENTERS

RAW MATERIALS INKS PRINTERS FILM

AUXILIARY MACHINERY

PACKAGING MACHINERY

PROCESS AUTOMATION PACK ENS USER

A diverse and cross-sectorial board facilitates open innovation

Leadership

Cluster chairman:the good and the bad

Cluster leaders

Believers (25-30%)

Followers (50%)

Hidden (20 – 25%)

Change agents, break conventional wisdom, team

players, spread the word. Board membres.

They participate in some cluster activities

They show up when they’re

through difficultues

Source: David García, Cluster Manager Fashion Textile

The cluster is not Top-Secret

Matching with pre-existing sectorial organizations

Less budget on fairs, but more on linkedin (retailmeeting point:leaders on retail, fashion all over theworld, affiliation programs)

The power of cluster managers

Cluster manager: T-shaped talent

Strategic visionCommunication skillsProject management

Match makerOptimisticPassionate

Intercluster promoter

Sectorial Expertise

Ignasi, StrategistDavid, Psychologist

Sergio, EntrepreneurEnric, Networker

We have some scars from where we’ve been: sharing failures

Israel 2013Boston 2012

Silicon Valley 2014

Team building

Inspiration from an advanced ecosystem

International connections

Training in an international contextQuébec 2015

International Mission of Catalan Cluster Managers

Takeaways

• Cluster Organization is a means to increase companies’ competitiveness, never the goal

• Cluster organizations should differ from preexisting business associations

• Cluster members should be salmons, not the “usual suspects”. The board is not about the biggest ones is about the most active ones.

• A medium sized board team is required: 9-13 • CEOs from companies should be the majority + leaders from support

institutions (research organizations, Universities, design centers, depending on the cluster value chain)

• Time is the main resource needed• The global agenda should be on the lead not every member’s agenda• It’s better there’s somebody missing than somebody left over• Regular meetings are required (once a month the 1st year)

Catalonia: A Holistic Cluster Ecosystem

1.200 active companiesin 30 clusters

Pro-clusters Government since 1993

Business Schools (IESE,ESADE)

trainingCluster Professionals

TCI Headquarters

Some world-leadingCluster Consultants

Go raibh maith agat!

Joan Martí EstévezDirector Cluster Development Division

[email protected]

Twitter:@JMartiClusters

LinkedIN: http://es.linkedin.com/pub/joan-martí-estévez/10/433/34b


https://twitter.com/JMartiClusters

http://es.linkedin.com/pub/joan-martí-estévez/10/433/34b/




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Session 4

Cluster Organisation Development

Tamara Högler, Head of Innovations and International Affairs, CyberForum e.V.

Cork, 29.09.2015




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Technology Region Karlsruhe

• Established 1987 as regional action group, called „TechnologyRegion“

• Comprises one regional federation, ten cities, and four counties

• Acting together in order to optimise cooperation between economy, science, culture, and regional public administration

• > 1.25m citizens

• > 70,000 companies

• > 450,000 employees

• Competence emphases of research and industry:

• ICT, nanotechnology, microsystems technology, mechatronics

• Chemical technologies and material engineering

• Robotics, process and production technologies

• Automotive engineering, energy technologies

• Environmental and biotechnologies

• Process engineering, medical technology

• Specific strength in B2B-Business and IT operating industries

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Karlsruhe – A Medium-Sized City with Huge Opportunities • Karlsruhe is a European ICT Hub (4th place among > 1,000 regions, only Munich, London and Paris

ahead)

• Karlsruhe is a German ICT stronghold and participant of the German Software-Cluster

• 99% SMEs, but also large companies (SAP, Siemens, Bosch, United Internet, …)

• Many Hidden Champions (e.g. security, logistics, traffic management)

• Many companies and research facilities are involved in the top cluster „Electric Mobility South-West“

• Outstanding research facilities

• Karlsruhe Institute of Technology (largest German research facility)

• FZI Research Centre for Information Technologies

• 3 Fraunhofer institutes

• Many citizens are tech- and media-savvy

• 13 of 100 citizens possess an own domain (2nd place in Germany after Munich)

• 12 of 100 citizens use cloud applications (top position in Germany)

• Largest regional German ICT cluster => CyberForum




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Cyberforum… Who we are & what we do

1997Inception

1000IT Start Ups

4000NewEmployees

>1000Members

23.000Staff

600Trainees

33Employees

2015Today

MultipleCertifications* as oneof the best IT-clusters in Europe!

1




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Founded in 1997:„Network of Founders“

Development paths of clustersStages of development I

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2004:Affiliate Programme starts„Business Angels“


Stages of development II

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2006:From „Network of Founders“ to a „Network of High-Tech Companies“


2004:Affiliate Programme starts

Stages of development III

10/5/2015P. 42




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Knowledge Transfer. Networks. Moderated Platforms.

2010:„Network of High-Tech Companies“ and„Cluster of Excellence“


2004:Affiliate Programme starts

2006:From „Network of Founders“ to a „Network of High-Tech Companies“

Stages of development IV

10/5/2015P. 43




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Time bar

Foundation

100 members

0.5 FTE

1997 2000

500 members

1st Business Angel Event

2.4 FTE

2006

1st EU-project

2.4 FTE

2010

Software-Cluster

16 FTE

Vision & Mission

CyberLab

1,000 members

25 FTE

New management structure

Foundation of affiliated company

Smart BusinessIT

23 FTE

1st Cyber Congress

1998 2007

1st Catch-the-Job

Business-Angel network

4.4 FTE

CEO, Event-Manager

2011 2013

Strategy change

Elan

1,050 members

29 FTE

BA-Network:41 members and over 100 guests

2015




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Our vision: Connect.Combine.Cooperate.

h




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Vision

HighTech.Entrepreneur.Network. in the TechnologyRegionKarlsruhe:„We are engine and competence centre for a internationally attractive ICT location“

We support… … the whole company lifecycle

Idea Foundation EarlyGrowing

Growing Maturity

05/10/2015

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Cluster Organisation Financing Structures & Providing Value for Members

Why are we able to offer our services?

1. We know what our members need (surveys, interviews, direct requests…)

2. We try to find appropriate funding opportunities (local, regional, national, European level)

– Very tight contact to City of Karlsruhe, Ministries of Baden-Wuerttemberg, Ministries of the Federal Republic of Germany

3. We develop services during funded projects

4. We evaluate their sustainability in terms of economics & members´ needs

– If business model economically stable: New chargeable service

– If business model economically weak (but service needed): New funding opportunities or service paid by membership fees

• In fact: appr. 80% of budget funded, 20% by other „incomes“ (membership fees, donations…)

• To be honest: Quite risky!!!




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Funding opportunities

1. Local level: City of Karlsruhe (regular funding, project-based subcontracting)

2. Regional / state level: Ministry of Economics, Ministry for Research & Education

– Sometimes „only“ convincing necessary, sometimes „regular“ applications

3. Baden-Wuerttemberg international:

– Different funding schemes for clusters (e.g. financial support for attendance ofdelegation tours, up to 3.000€ / trip; 10.000€ for business delegation tours (CF + some members), fundings for hosting foreign delegations

4. National level: Federal Ministries have different kinds of calls (BMBF, BMWi)

– Regular applications, e.g. OpenIT, FinishIT5. European level:

– Horizon 2020, Innosup, Interreg, ….

As non-profit: Mostly 100% funding (Interreg: less…)No „state / federal support“, almost every single Cent has to be earned!Yearly turnover: appr. 2 Mio




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CyberForum 2.0

• Founding of CyberForum Service GmbH in 2012

• Objective: Keep non-profit status of CyberForum e.V., generate „real“ profit by offering also services that do not match to the „association statutes“.

100% subsidiary to

• Charged services for all other purposes

• National & international funded projects -> as supplier

CyberForum e.V. CyberForum Service GmbH

• Services „for free“

• Charged services for educational purpose

• National & international funded projects




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Building Productive Links with State Agencies and Government DepartmentsNational level:

• Tight cooperation with Economic Development Department

• CyberForum CEO is on of the Karlsruhe councillors

• Cooperation with CCIs in the region (events, new educational program for college dropouts)

• Lobbying and cooperating with Ministries on state level (step by step expanding our visibility and presence at national level)

• One of the coordination sites for Europe´s largest software cluster „Emergent software for the digital enterprise“

• BITMi: Association for IT in SMEs

• Smart BusinessIT: Initiative funded by state Baden-Württemberg, connecting regional clusters, acting as “project executing organisation”

International level:

• Business Roaming Agreement (BRA): 67 clusters and similar initiatives linked – worldwide!

• MCCIA in Poona

• Economic Development Department has an office for internationalisation activities in Poona

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Identifying and Developing Common Interest in ProjcetsAmongst Cluster Members: Our Digital TransformationEco-system

CyberForum

SoftwareCluster

TRK

ElectroMobility

SW

SIGKAITSi

SIGMCC

AEN

EDD

SCKA

FZI

KIT

DICE

FHI

SmBIT

BWcon

BMWi

BITMi

BWIHK

MFG

CyberLab

HoLL




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Benefits for our members

• Services for the whole company lifecycle at first-hand

• Connected to many other clusters & institutions -> „network of networks“ -

> additional services, interlinkage of experience

• 18 years of experience

• Networking events

• new business opportunities

• knowledge transfer

• Visibility! PR! Lobbying! National & international!




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Tamara Högler

Head of Innovations and International Affairs

Email: [email protected]

Thank you for your attention!

Government & Nonprofit

Session 4: Cluster Organisation Development