Knowledge-Based Knowledge-Based EconomyEconomy

ICT Business ICT Business DevelopmentDevelopment

Programmatic ComponentsProgrammatic Components

Prepared and presentedPrepared and presented

By By

Khaled AyeshKhaled Ayesh

OutlineOutline• ICT Cluster MappingICT Cluster Mapping• ICT OpportunitiesICT Opportunities• ICT StrengthsICT Strengths• Capitalizing on Strength & Investing in Capitalizing on Strength & Investing in

OpportunitiesOpportunities

• ICT Development Strategic FrameworkICT Development Strategic Framework• Building Knowledge-based Economy OutputBuilding Knowledge-based Economy Output• ICT Programmatic ComponentsICT Programmatic Components• Roles of Targeted ICT StakeholdersRoles of Targeted ICT Stakeholders• Modes of ImplementationModes of Implementation• ICT Development Action PlanICT Development Action Plan• Results-Based Performance IndicatorsResults-Based Performance Indicators• Programmatic Financial ForecastProgrammatic Financial Forecast

INPUTS PROCESS RELATED / SUPPORTING

Human Resources

Development Platform\

Application

Hardware

Training

Knowledge / Innovation

Systems Analysis and

Specs

R& D

Certification

Copyrights

Documentation

CRM

Coding

Demonstrations

Internet \Access

Graphic Design

Finance

Testing & Quality Control

Satisfactory

Poor

Needs Improving

Imported

Conditions or Relationships

MoTIT

Universities

Financial Instruments

PICTI

Certified Training Centers

PSI

PITA

PalTrade

PNINA

ISPs

Telecom Providers

MoNE

Backbone Inst.

Marketing

eCommerce

Agents

Support Services

ICT Cluster Map

Backbone Infrastructure

Market Intelligence

Business Development

Tender, RFPs, EOIs, SOWs

Technology Standards

OUTPUT

Products

Integrated Solutions

Hardware

Software

Services

Distribution

Specialized BDS

ICT OpportunitiesICT Opportunities• Untapped BPO and outsourcing capabilities Untapped BPO and outsourcing capabilities • Growing Arabic industry with limited outsourcing Growing Arabic industry with limited outsourcing

players players • Potential for benefiting from national initiatives like Potential for benefiting from national initiatives like

eGov, PEI, NERN projects and the liberalization of eGov, PEI, NERN projects and the liberalization of the telecom market.the telecom market.

• Significant donor projects can help jumpstart Significant donor projects can help jumpstart industry if proper policy is there.industry if proper policy is there.

• Close to Israel that may benefit some software Close to Israel that may benefit some software outsourcing operations.outsourcing operations.

• Recent Arab League decision to open Arab markets Recent Arab League decision to open Arab markets to Palestinian products/servicesto Palestinian products/services

• Potential for benefiting from regional initiatives, Potential for benefiting from regional initiatives, mainly P@G in Dubaimainly P@G in Dubai

• ICT has potential to empower disadvantaged ICT has potential to empower disadvantaged womenwomen

• International IT firms seeing their presence in International IT firms seeing their presence in Palestine as part of future peace dividendPalestine as part of future peace dividend

ICT StrengthsICT Strengths• Development assistance from US and EU with real Development assistance from US and EU with real

interest in changeinterest in change• Internet pervasiveness not that highInternet pervasiveness not that high• Competitive labor arbitrage Competitive labor arbitrage • Strong desire for improvement motivationStrong desire for improvement motivation• Pool of proven ICT products and services supported Pool of proven ICT products and services supported

by experienced human resourceby experienced human resource• Advanced and accessible basic telecom Advanced and accessible basic telecom

infrastructure including ADSL, ISDN and leased infrastructure including ADSL, ISDN and leased lines lines

• Strong social incentive to invest in educationStrong social incentive to invest in education• Good pool of technical expertise around the world.Good pool of technical expertise around the world.• Close to Israel, one of the global high-tech focal Close to Israel, one of the global high-tech focal

pointspoints• Led by a leading sector membership association, Led by a leading sector membership association,

PITAPITA

Capitalizing on Strength & Capitalizing on Strength & Investing in OpportunitiesInvesting in Opportunities

StrengthsStrengths

• Competitive labor costCompetitive labor cost• Close to IsraelClose to Israel• Reasonable internet Reasonable internet

access costaccess cost• Professional HRProfessional HR• Reasonable Reasonable

Infrastructure: ADSL, Infrastructure: ADSL, WAP, ISDN, Leased WAP, ISDN, Leased lineslines

• Access to Arab Market Access to Arab Market agreementsagreements

OpportunitiesOpportunities

• Business Processing Business Processing OutsourcingOutsourcing

• Joint venture with Joint venture with Israeli Partners & ArabsIsraeli Partners & Arabs

• Utilizing available Utilizing available infrastructures to shift infrastructures to shift the work from place the work from place into the space into the space paradigmparadigm

• Bridging weaknesses Bridging weaknesses and mitigating the risk and mitigating the risk of externalitiesof externalities

ICT Development Strategic ICT Development Strategic FrameworkFramework

To build sustainable knowledge-based To build sustainable knowledge-based economy in the West Bank and Gaza economy in the West Bank and Gaza through:through:

1.1. Strengthening ICT Business Development.Strengthening ICT Business Development.

2.2. Supporting market-driven ICT skills/talents.Supporting market-driven ICT skills/talents.

3.3. Accessing market resources and Accessing market resources and facilitating ICT-supported global linkagesfacilitating ICT-supported global linkages

Building Knowledge-based Building Knowledge-based Economy OutputEconomy Output

Key indicators, but not limited to:Key indicators, but not limited to:• Achieving 5-7% annual ICT Development GrowthAchieving 5-7% annual ICT Development Growth• Generating $75-$100Million additional investment Generating $75-$100Million additional investment

(invest $10 will generate $330 additional spending)(invest $10 will generate $330 additional spending)• Creating +500 new job opportunitiesCreating +500 new job opportunities• Developing of +100 new ventures/startups/SMEsDeveloping of +100 new ventures/startups/SMEs• Achieving +10% increase of annual ICT related Achieving +10% increase of annual ICT related

products/services revenue/sales.products/services revenue/sales.• Facilitating +30 commercially-viable ICT solutions Facilitating +30 commercially-viable ICT solutions

penetrated in regional/global market.penetrated in regional/global market.• Facilitating +50 ICT B2B partnership cooperation Facilitating +50 ICT B2B partnership cooperation

agreements.agreements.• Facilitating +1000 business process outsourcing Facilitating +1000 business process outsourcing

events/bids/contracts/agreements/deals.events/bids/contracts/agreements/deals.• Supporting +1200 ICT graduates capacity and skillsSupporting +1200 ICT graduates capacity and skills• Qualifying +50 ICT SMEs for Quality Standard Qualifying +50 ICT SMEs for Quality Standard

CertificationCertification

ICT Programmatic ComponentsICT Programmatic Components

1.1. ICT Backbone Institutional DevelopmentICT Backbone Institutional Development

2.2. ICT SMEs-Technical AssistanceICT SMEs-Technical Assistance

3.3. ICT Quality Standard Certification ICT Quality Standard Certification

4.4. Access to Market ResourcesAccess to Market Resources

5.5. Networking, Advocacy & Linkages Networking, Advocacy & Linkages FacilityFacility

6.6. ICT Skills Training & Capacity BuildingICT Skills Training & Capacity Building

7.7. Individual Innovation EntrepreneurshipIndividual Innovation Entrepreneurship

8.8. Financial Facilitation: Seed Financial Facilitation: Seed Grant/Revolving Fund MicrofinanceGrant/Revolving Fund Microfinance

Roles of Targeted ICT Roles of Targeted ICT StakeholdersStakeholders

• PITAPITA: implementing the ICT Business Development: implementing the ICT Business Development• PALTRADPALTRAD: facilitating access to market resources: facilitating access to market resources• PICTI/ICT IncubatorsPICTI/ICT Incubators: facilitating the inception of individual : facilitating the inception of individual

innovation entrepreneurship and other ICT incubation seeds grantsinnovation entrepreneurship and other ICT incubation seeds grants• Academic InstitutionsAcademic Institutions: engaging and partnering in market-driven : engaging and partnering in market-driven

ICT skills buildingICT skills building• Internet service & TelecommunicationInternet service & Telecommunication Providers: ICT Providers: ICT

Infrastructure Infrastructure • E-ForumsE-Forums: facilitating global linkages and outsourcing: facilitating global linkages and outsourcing• Donors AgenciesDonors Agencies: Coordinating necessary technical assistance : Coordinating necessary technical assistance

funding and global market penetration facilityfunding and global market penetration facility• ICT SMEsICT SMEs: Providing guidance and engaging in advocacy, linkages, : Providing guidance and engaging in advocacy, linkages,

quality certification, technical assistance delivery, participating in quality certification, technical assistance delivery, participating in international expos, etc.international expos, etc.

• BDS/Training InstitutionsBDS/Training Institutions: Engaging in building the critical mass : Engaging in building the critical mass of supporting industries and providing technical and advisory of supporting industries and providing technical and advisory servicesservices

• International ICT partnersInternational ICT partners: Facilitating Palestinian brands of ICT : Facilitating Palestinian brands of ICT products/services and accessing new market.products/services and accessing new market.

• Regional/neighboring ICT Strategic AlliancesRegional/neighboring ICT Strategic Alliances: providing : providing business processing outsourcing opportunities and facilitating b2b business processing outsourcing opportunities and facilitating b2b mutual partnerships.mutual partnerships.

Modes of ImplementationModes of Implementation• Skills and Capacity building focusedSkills and Capacity building focused• ICT Demand-driven technical interventionICT Demand-driven technical intervention• Stimulating change-agent and fast mover for Stimulating change-agent and fast mover for

ICT Diffusion and outsourcingICT Diffusion and outsourcing• Creating intervention ownershipCreating intervention ownership• Leaving sustainable legacies beyond the end Leaving sustainable legacies beyond the end

of the project within each supporting ICT of the project within each supporting ICT stakeholdersstakeholders

• Creating opportunities for all & empowering Creating opportunities for all & empowering disadvantaged targetsdisadvantaged targets

• Supporting Knowledge-based innovation Supporting Knowledge-based innovation entrepreneurship culture and commercially entrepreneurship culture and commercially viable solutionsviable solutions

ICT Development

Action Plan

1. Strengthening ICT Business Development

20092009

20102010 20112011

JanJan FebFeb MarMar AprAprMaMayy JunJun JulJul

AuAugg SepSep

OcOctt NovNov DecDec

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                      

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

Institutionalizing BDS Unit at ICT Institutions

Institutional gap analysis

Qualifying for ICT Quality Standards Certification

Finalizing technical assistance action plan

Providing SMEs required technical assistance

Building twining partnership with ICT regional, neighboring & global Institutions

Advocating for right protections, code of ethics, e-commerce regulation, etc.

2. Supporting market-driven ICT skills/talents

20092009

20102010 20112011

JanJan FebFeb MarMar AprAprMaMayy JunJun JulJul AugAug SepSep OctOct NovNov DecDec

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                      

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

Supporting practical curricula at Academia/TVET

ICT Workforce supply & demand gap analysis

Specialized training activities for Interns & others

ICT capacity development action plan

Introducing Internship for demand-driven ICT graduates

Institutionalizing within PICTI & others Individual Innovation Entrepreneurship, grants & microfinance

Hosting & maintaining e-forum for ICT capacity & experience exchange

3. Accessing market resources and facilitating ICT-supported global linkages

20092009

20102010 20112011

JanJan FebFeb MarMar AprAprMaMayy JunJun JulJul AugAug SepSep OctOct NovNov DecDec

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                      

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

                                         

Establishing outsourcing portal for BPO Initiative

ICT marketing scan analysis

Building image of made-in-Palestine branding of ICT industry

Undertaking targeted market intelligence studies

Facilitating ICT networking, linkages, participating in Expos

Institutionalizing within Paltrade ICT marketing information resource unit

Facilitating B2B partnership & establishing e-matchmaking

Results-Based Performance Results-Based Performance IndicatorsIndicators1.1. Strengthening ICT Business Strengthening ICT Business

DevelopmentDevelopmentEstimated Estimated Cost US$Cost US$ DeliverablesDeliverables

Institutional gap analysisInstitutional gap analysis 5,0005,000 StudyStudy

Finalizing technical assistance action Finalizing technical assistance action planplan 2,0002,000 Two-year Action PlanTwo-year Action Plan

Institutionalizing BDS Unit at ICT Institutionalizing BDS Unit at ICT InstitutionsInstitutions 100,000100,000

BDS UNITBDS UNIT+50 jobs created+50 jobs created

Providing SMEs required technical Providing SMEs required technical assistance assistance 200,000200,000

+10% increase in SMEs +10% increase in SMEs supported annual supported annual salessales

Qualifying for ICT Quality Standards Qualifying for ICT Quality Standards CertificationCertification 350,000350,000

+50 SMEs ICT Quality +50 SMEs ICT Quality CertifiedCertified

+100 new jobs created+100 new jobs created

Building twining partnership with ICT Building twining partnership with ICT regional, neighboring & global regional, neighboring & global InstitutionsInstitutions 150,000150,000

+50 B2B Partnerships+50 B2B Partnerships+10 Twining +10 Twining

institutionsinstitutions

Advocating for right protections, code Advocating for right protections, code of ethics, e-commerce regulation, of ethics, e-commerce regulation, etc.etc. 20,00020,000

Code of Ethics Code of Ethics ComplianceCompliance

Draft for E-commerce Draft for E-commerce regulation; +5%ICT regulation; +5%ICT growthgrowth

TotalTotal $US 827,000$US 827,000

Results-Based Performance Results-Based Performance IndicatorsIndicators

2.2. Supporting market-driven ICT Supporting market-driven ICT skills/talentsskills/talents

Estimated Estimated Cost US$Cost US$ DeliverablesDeliverables

ICT Workforce supply & demand ICT Workforce supply & demand gap analysisgap analysis 70007000 StudyStudy

ICT capacity development action ICT capacity development action planplan 20002000 Two-year Action PlanTwo-year Action Plan

Supporting practical curricula at Supporting practical curricula at Academia/TVETAcademia/TVET 130,000130,000

Curricula enhancedCurricula enhancedQuality of trained graduatesQuality of trained graduates

Introducing Internship for demand-Introducing Internship for demand-driven ICT graduatesdriven ICT graduates 300,000300,000

+1200 of Interns trained+1200 of Interns trained+1200 of Interns +1200 of Interns

placed/employedplaced/employed

Specialized training activities for Specialized training activities for Interns & othersInterns & others 150,000150,000

Quality and No. of Internship Quality and No. of Internship training programstraining programs

+1000 of benefited Trainees+1000 of benefited Trainees

Institutionalizing within PICTI & Institutionalizing within PICTI & others Individual Innovation others Individual Innovation Entrepreneurship, grants and Entrepreneurship, grants and microfinancemicrofinance 350,000350,000

+30 of Innovations produced+30 of Innovations produced+30 of prospects incubated+30 of prospects incubated+30 of grants recipients & $ +30 of grants recipients & $

additional investment made additional investment made +20 of new ventures +20 of +20 of new ventures +20 of Loans refundedLoans refunded

+50 new jobs created+50 new jobs created

Hosting and maintaining e-forum Hosting and maintaining e-forum for ICT capacity & experience for ICT capacity & experience exchangeexchange 20,00020,000

Hosting portals, Best Practices Hosting portals, Best Practices Knowledge exchanged Knowledge exchanged

TotalTotal $US 959,000$US 959,000

Results-Based Performance Results-Based Performance IndicatorsIndicators

3. Accessing market resources and 3. Accessing market resources and facilitating ICT-supported facilitating ICT-supported global linkagesglobal linkages

Estimated Estimated Cost US$Cost US$ DeliverablesDeliverables

ICT marketing scan analysisICT marketing scan analysis 80008000 StudyStudy

Undertaking targeted market Undertaking targeted market intelligence studiesintelligence studies 200,000200,000

No. of regional, neighboring, and No. of regional, neighboring, and international Intelligence international Intelligence studiesstudies

Establishing outsourcing portal for BPO Establishing outsourcing portal for BPO InitiativeInitiative 30,00030,000

BPO portalBPO portal+1000 of outsourcing +1000 of outsourcing

opportunitiesopportunities

Facilitating ICT networking, linkages, Facilitating ICT networking, linkages, participating in Exposparticipating in Expos 250,000250,000

+50 of SMEs participated in +50 of SMEs participated in Expos,Expos,

+20 New products introduced in +20 New products introduced in global marketglobal market

+50 of networks and +50 of networks and partnerships made.partnerships made.

+10% increase in annual sales+10% increase in annual sales

Building image of made-in-Palestine Building image of made-in-Palestine branding of ICT industrybranding of ICT industry 100,000100,000

Good image in marketplaceGood image in marketplaceICT Industry brandingICT Industry brandingNo of marketing kits, +5% ICT No of marketing kits, +5% ICT

growthgrowth

Institutionalizing within Paltrade ICT Institutionalizing within Paltrade ICT marketing information resource marketing information resource

unitunit 150,000150,000

Established resource Center for Established resource Center for ICT marketICT market

Access to Access to information/benchmarkinginformation/benchmarking

Facilitating B2B cooperation & Facilitating B2B cooperation & partnership & establishing e-partnership & establishing e-matchmaking.matchmaking. 80,00080,000

+50 of B2B deals and +50 of B2B deals and partnerships, matchmaking & partnerships, matchmaking & more $ investmentmore $ investment

TotalTotal $US 818,000$US 818,000

Programmatic Financial Programmatic Financial ForecastForecast

ProgramsPrograms Cost Estimate $USCost Estimate $US

Strengthening ICT Business Strengthening ICT Business DevelopmentDevelopment

827,000827,000

Supporting market-driven ICT Supporting market-driven ICT skills/talentsskills/talents

959,000959,000

Accessing market resources and Accessing market resources and facilitating ICT-supported global facilitating ICT-supported global linkagelinkage

818,000818,000

Overheads/running costOverheads/running cost 300,000300,000

ContingencyContingency 96,00096,000

Total BudgetTotal Budget $US 3,000,000$US 3,000,000

Any Comments, pleaseAny Comments, please

Thank you very much indeed for your Thank you very much indeed for your discussion and feedbackdiscussion and feedback