Leaders in Country Competitiveness

Transcription

1 AMSTERDAM ATHENS BEIJING CAMBRIDGE CHICAGO FRANKFURT HONG KONG ISTANBUL JOHANNESBURG LONDON LOS ANGELES MADRID MANILA MELBOURNE MILAN MOSCOW MUMBAI MUNICH NEW YORK PARIS SAN FRANCISCO SÃO PAULO SEOUL SINGAPORE STOCKHOLM TEL AVIV TOKYO TORONTO ZURICH Leaders in Country Competitiveness Brunei Darussalam February 20, Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

2 Competitive Strategy is about being Different Competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value. A company can outperform rivals only if it can establish a difference that it can preserve. Michael Porter Director and Co-Founder of the Monitor Group Source: Harvard Business Review March Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

3 The most challenging strategic problems facing organisations: Strategies to Win Strategic Issues Problem Scope Strategies to Stay in the Game Strategies to Win 70% of our revenues are from clients #1 or #2 in their industry Standardized Operational Interventions Complex Operational Interventions Tactical or Operational Issues Routine Unique Nature of Problem 3 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

4 Over 1,000 professionals in offices worldwide - one integrated talent and knowledge pool - Amsterdam Munich Frankfurt San Francisco Emeryville Palo Alto Los Angeles Chicago Toronto Cambridge New York London Paris Madrid Stockholm Moscow Zurich Milan Athens Mumbai Beijing Seoul Tokyo Hong Kong Manila Singapore São Paulo Johannesburg Melbourne 4 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

5 Global Leader in Country Competitiveness Country Competitiveness is Monitor Group s proprietary approach to cluster analysis This approach is developed from more than fifteen years of global experience, building on hard theoretical and empirical evidence. Drawing upon the intellectual leadership of founding partner, Professor Michael Porter, author of Competitive Advantage of Nations, and a breadth of practical experience acquired through numerous and diverse projects across the globe, Monitor is widely regarded as being at the vanguard of country competitiveness initiatives. In recent years, Monitor advised and worked with over 80 governments, regions and cities on issues of competitiveness and capability building We have devised multiple country and regional competitiveness programs, and developing long-term sustainable development growth strategies with close collaboration from the country authorities and key private sector players. Monitor has also completed over 300 projects with public sector in a variety of policy-setting and industry contexts in multiple regions. Recently, Monitor completed a seminal engagement together with the US Council on Competitiveness This initiative identified and characterized the conditions, capabilities and institutional roles required to drive advanced economies forward. Dubbed the Clusters of Innovation, this unprecedented study shows how the economies of regions and nations can be configured to enable sustainable growth and it identifies the importance and nature of inter-regional relationships in helping to fuel continued development. 5 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

6 Unrivalled Expertise, Experience and Processes Thought Leadership Pioneers in the thinking and application of new concepts related to country and industry cluster competitiveness Unparalleled Experience Highly Actionable Strategy Proven Approach to Create Change and Action Practical experience in country competitiveness projects worldwide Have worked on more than 400 projects and over 50 national level governments We go beyond beyond making strategic recommendations which often stay end up as a report that stays at the shelf We deliver a clear and compelling business plan to guide organisations on how to effectively implement We explicitly address causes of inertia and barriers to change We interactively drive consensus for action across wide variety of constituencies Committed to Effective Knowledge Transfer We empower participants through capability building and knowledge transfer 6 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

7 Client situations may be highly challenging Massachusetts Example Bleak Economic Context Clear Strengths and Weaknesses Severe Economic Downturn between 1988 and over 360,000 jobs lost Upheaval in Minicomputers and Defense Industries Real Estate and Construction Boom then Bust Correction from High Growth of the 1980s History of Unresponsive Government National and then Global Recessions Strengths Strong Education and Research Weaknesses and Strengths Highly Skilled Workforce Leading Positions in Emerging Technologies Entrepreneurial Climate Venture Capital Attractive Place to Live Weaknesses History of Unresponsive Government High Cost of Doing Business High Cost of Living Despondency - little impact of previous initiatives Internal Focus 7 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

8 Monitor s Recommendations are Highly Actionable Selected Examples Technology and Innovation Capital Cost of Doing Business R&D Tax Credit Worker s Compensation System Overhaul Estimated Massachusetts Technology Collaborative $1 $1 Billion in in Savings to to Employers Between 1994 and MIT Enterprise Forum 1997 Regulatory Task Force Permit Streamlining Small Business Innovation Research Program Timelines Excellence in in Innovation and Quality Awards One-stop Permitting Cluster Studies in in Biotechnology, Defense, Department of of Environmental Protection Reforms Telecommunications, Medical Devices, Metal Working, Photonics, Plastics Unemployment Insurance Cost Reduction Resulting in in $700 Million in in Savings Between 1993 and 1997 Most Attractive Climate for Investment Repealed Tax on on Services Estate Tax Reform R&D Tax Credit Tripled Investment Tax Credit Reduction of of Tax on on Interest and Savings Investment Tax Credit for for Leased Equipment Capital Gains Tax Reform Bank Tax Reform Single Sales Apportionment for for Defense and Manufacturing Mutual Fund Tax Reform Insurance Industry Tax Reform Telecommunications Tax Cut for for Internet Sales Economic Opportunity Area Credits and Tax Increment Financing Electricity Costs Job Creation and Retention Incentive Rates Deregulation of of Utilities to to Promote Competition Performance-Based Government Choosing to to Compete Governor s Council on on Economic Growth and Technology MOBD Regional Offices // One-Stop Shopping Federal Reserve and UMass Benchmarking Index of of the Massachusetts Innovation Economy Benchmarking 8 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

9 Well-executed executed the Initiatives have a Significant Impact Massachusetts: Results Total Non-Farm Employment (Thousands) 3,300 3,100 2,900 2,700 Employment Initiatives rolled out Unemployment 10% 8% 6% 4% 2% Unemployment Massachusetts Initiatives rolled out U.S. 2, % ,000 Per Capita Income 15% Massachusetts Relative Earnings per Worker 35,000 Nominal per Capital Real Personal 30,000 Income, U.S. vs. 25,000 Massachusetts (Dollars) 20,000 15,000 Massachusetts Initiatives rolled out U.S Earnings per Worker Relative to U.S. Rate 13% 11% 9% 7% 5% Initiatives rolled out Source: U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; U.S. Department of Commerce; BankBoston 9 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

10 A Partnership with BEDB for the Diversification Strategy initiative and as a Catalyst for Action Brunei Economic Diversification Timeline Strategy and Business Plan Initiatives Rollout Policy Development Capability Development FDI Inflows Emerging Competitive Clusters Sustained Increase in Employment 10 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.

11 A Major step to Sustaining and Enhancing Economic Prosperity in Brunei Darussalam Towards Innovation, Competitiveness and Prosperity 11 Copyright 2003 Professor Michael E. Porter and Monitor Company Group, L.P.