rfcd 2011: beverly morgan: cluster development in the caribbean key supporting agencies part 1
Upload: arthur-lok-jack-graduate-school-of-business-the-university-of-the-west-indies
Post on 25-May-2015
396 views
DESCRIPTION
RFCD Conference @ Arthur Lok Jack GSB - November 2011TRANSCRIPT
![Page 1: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/1.jpg)
Regional Forum on Cluster Development in the Caribbean
Theme 4 – Key Supporting Agencies
The Competitiveness Company
Beverley MorganTrinidad & Tobago
November 2011
![Page 2: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/2.jpg)
The competitiveness company
Who are we? What do we do? Why do we do it? What are some of our stories?
![Page 3: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/3.jpg)
Source: Cluster Greenbook Based on Survey of 500+ Clusters
3
Research & Networking
•Publish Reports
•Study Cluster
Networks:•Companies•People
Cluster Expansion
•Incubator Services
•Branding
•Attracting Firms
•Company Growth
Innovation & Technology
•Technical Standards
•Technical Trends
•Facilitate Innovativeness
•Introduce New Technologies
•Technology Diffusion
Education & Training
•Technical Training
•Management Training
Commercial Cooperation
•Purchase Coordination
•Increase Collaboration
•Export Promotion
•Business Assistance
•Market Intelligence
Policy Action •Infrastructure Lobbying
•Regulation Lobbying
•Production Processes
•Cluster Awareness
Typical Cluster Initiatives
![Page 4: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/4.jpg)
MOBILISATION
MOBILISATIONPROCESS
EmailsTelephone CallsEach person tells others (Snowball)Everyone welcomeEveryone valuedOpen and Inclusive ProcessIdeas Welcome
![Page 5: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/5.jpg)
Framework: Cluster Strategy Development Template
1. The Cluster Strategy Development Template is a framework that provides a structured decision making methodology.
2. The objective of the Template is to provide a set of concrete strategic initiatives that each cluster can pursue to attain the results they seek. In that sense it serves as a Roadmap for the cluster.
3. The strategic initiatives contained in each Template form the Work Plan for the cluster throughout the duration of the project. The strategic initiatives stem from the cluster workshops and are based on the ideas and insights of the participating firms.
4. The clusters own the document. Source: ontheFrontier
![Page 6: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/6.jpg)
Framework: Cluster Strategy Development Template
The Cluster Strategy Development Template is the top-line repository of efforts . It is a comprehensive document reflecting the ideas and insight of all stakeholders.
Source: ontheFrontier
Strategy Development Template
Cluster Workshops Cluster Diagnostic
Review and Research Firm-Level Consultations
![Page 7: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/7.jpg)
The 5-Step Cluster Process – Competitiveness in Action
– Step 1—Analyse Current Situation
– Step 2—Set Industry Objectives
– Step 3—Understand Customer Needs
– Step 4—Articulate Competitive Positioning
– Step 5—Develop Action Guidelines
– Next Steps
![Page 8: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/8.jpg)
OperationsOperations Strategic ObjectivesStrategic ObjectivesAssetsAssets
Asset-Based Approach
Strategy Based Approach
Compete on the basis of one’s natural conditions
Create basic products and wait for customers to come
Look for high volume and low price
Exploit Comparative Advantage
Focus on satisfying the needs of demanding but well selected and high paying customers
Build Competitive Advantage
Acquire assets that deliver complex products that meet the needs of target customers– Knowledge and
research– Technology and
know how
Set clear targets and adopt sophisticated configuration to meet them– Strong-inter
company and public-private sector cooperation
Improve productivity
AssetsAssets OperationsOperationsStrategic ObjectivesStrategic Objectives
Migrating Towards a Strategy Based Model
Strategy, Operations and Assets
![Page 9: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/9.jpg)
Strategy IS choice Cascading Choices
How will we win in chosen markets?
How will we win in chosen markets?
What management systems are required?
What management systems are required?
What are our goals and aspirations?
What are our goals and aspirations?
What capabilities must be in place to win?
What capabilities must be in place to win?
Where will we play?Where will we play?
Source: Roger Martin
![Page 10: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/10.jpg)
RESEARCH GUIDE
Situation AnalysisMarket Size & DemandDistribution ChainStandards & RegulationsProduction VolumesLogisticsQuality RequirementsProfitability Cluster MapsCustomer SurveysCompetitive Positioning
Data Gathering
Cluster Participants Learn and Practise Structured Approaches
![Page 11: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/11.jpg)
Clusters ImplementedBy The Competitiveness Company (2002 – 2011)
1. Agribusiness: Sauces & Spices2. Tourism Unique Jamaica & MyJamaica3. Entertainment: Jamaica Signature Beats4. West Indies Sea Island Cotton5. Ornamental Fish6. Agro-Processing (In St. Vincent & the
Grenadines)
![Page 12: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/12.jpg)
The Issue of Public Goods
• Public Goods created as result of cluster development (mainly informational goods)
• Free Rider Problems – Puts Trust at Risk• Project must anticipate free rider problems• Value of IP generated needs to be recognised
& protected• Appropriate systems, contracts, agreements,
conversations should be in place• Need for effective safeguards• Need for explicit agreements
![Page 13: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/13.jpg)
The Free Rider Problem: Who, if anyone, owns what?
![Page 14: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/14.jpg)
Role of Intellectual Property: What do Clusters Produce?
• INFORMATIONAL GOODS AND KNOWLEDGENames as IdentityShared VisionStrategiesIdentification of and Access to New MarketsIdentification of New NichesPlansBrandsNew ProductsShared firm-level information
![Page 15: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/15.jpg)
BRAND DEVELOPMENTHaving determined an identityDeveloped a planDesigned a strategyThe ingredients are in place to develop a brandWho owns it?
![Page 16: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/16.jpg)
![Page 17: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/17.jpg)
Why Trust Matters Trust:
o Linked to higher economic performance
o Lower transaction costs
o More trustworthy government
o Higher levels of investment
o Intentional acceptance of vulnerability based on positive expectations of others’ intentions (Ostrom 2003)
o Social connections lead persons to trust that others will be motivated to act benevolently. (Tyler, 2001)
Trusting societies :
o Incentives to innovateo Accumulate physical capitalo Have higher returns to
human capital. o Trust and civic involvement
linked to better performance of government institutions.
o Individuals in social dilemmas invest resources to improve joint outcomes.
o Cooperation levels higher than predicted.
o Important to encourage people to invest themselves in groups.
o To extent that identities intertwined with group, ‘social capital’ created, facilitating functioning of the social group.
![Page 18: RFCD 2011: Beverly Morgan: Cluster Development in the Caribbean Key Supporting Agencies Part 1](https://reader036.vdocuments.us/reader036/viewer/2022070317/5562ce43d8b42a49398b4999/html5/thumbnails/18.jpg)
ROLE OF TRUST
Confucius said to his disciple Lao Tzu:
“Three things are needed for good government.
They are the sword, food and trust. If a ruler must give up one, let him give up
the sword. And if something else, let him give up the
food. Trust should be guarded to the end.”