udviklingsråd sønderjylland competitiveness initiative

UdviklingsRåd Sønderjylland Competitiveness Initiative

Mechatronics Workshop Materials

2

Sønderjylland is projected to have the strongest decrease in population of any major region in Denmark over the next 35 years

1,827,537 1,926,351

304,014 317,342262,302 258,32943,518 39,126475,480 466,632

252,508 231,164224,410 212,067

357,276 376,183

275,060 268,179

656,700 709,683

234,869 227,646

495,923 484,811

0%

20%

40%

60%

80%

100%

2005 2040

North Jutland

Viborg

Århus

Ringkøbing

Vejle

Ribe

Sønderjylland

Funen

Bornholm (excl. Christiansø)

Storstrøm

West Zealand

Copenhagen region

Implied percentage change of current population in 2040

(Base = 2004)Population Projection by region 2005-2040

Source: StatBank Denmark

All Denmark

-2.24%

-3.08%

8.07%

-2.50%

5.29%

-5.50%

-8.45%

-1.86%

-10.09%

-1.51%

4.38%

5.41%

1.99%

3

There are a number of other key threats that may put pressure on the region’s employment and growth prospects

Customers Moving to Low Cost Countries


Growth of Competencies

in Low Cost Countries



Enlarged Political Region

Enlarged Political Region

Customers moving to low cost countries often necessitates the suppliers moving with them (e.g. food processing industry)Many of the companies in the region are suppliers to other companiesAmongst other, Gram, Linak, BB Electronics and Lindab have considered moving recently

There may be a tendency for people to hesitate with actions until the new region has been establishedThis may cause new competition between the internal municipalitiesThere may be less access to public bodies as they grow in size and responsibility

Low cost countries are rapidly building capabilities to rival developed countries in R&D and sales & marketing (e.g., ECCO will train its Chinese staff in Thailand and Indonesia and Danfoss is developing ‘knowledge’ centres outside the region (Mexico, China, Poland)

Off-shoring Manufacturing

to Low Cost Countries



Major regional manufacturers are considering or in process of moving operations abroad to low cost countriesOff-shoring will have significant impact on local suppliers

4

Cluster analysis indicated that Sønderjylland is under-represented in a number of key service clusters ….

Note: (x-axis, y-axis); Tobacco; Jewelry and Precious Metals; Sporting, Recreational and Children’s Goods, Leather Products, Aerospace Vehicles and Defense, Motor Driven Products; and, Oil and Gas clusters have negligible employment and thus are not shown.

Source: Monitor Group analysis; Statistics Denmark (Danmarks Statistik)

Industrial Mechanical Components (2%, 27.5%)

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

-50% -25% 0% 25% 50%

= 3,000– 4,999= 2,000–2,999Percentage Change of Share, 1992–2001

= 5,000+

Electric Motors and Other Electrical Equip.(530%, 11.3%)

Automotive

Sønderjylland Share of Danish National Employment (4.8%)

= 0–1,999

Metal Manufacturing

Processed FoodForest Products

Power Generation and Transmission

Production Technology

Percent Share of Danish

National Cluster

Employmentin 2001 Construction

Materials

Fishing and Fishing Products

Agricultural Products

Wholesale Services

Hospitality and Tourism

Education and Knowledge Creation

Heavy Construction Services

FurniturePublishing and Printing

Financial Services

Buildings, Fixtures, Equip. and Services

Business Services

Transportation and Logistics

Communications Equipment

Entertainment

Footwear (21%, 60.3%)

Information Technology

Life Sciences

Plastics

Textiles

Apparel (-63%, 1.55%)

Medical Devices

Analytical Instruments (84%, 4%)

Chemical Products (96%, 3.5%)

Sønderjylland is under-represented in a number of key

high employment service clusters

5

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

-50% -25% 0% 25% 50%

= 3,000– 4,999= 2,000–2,999Percentage Change of Share, 1992–2001

= 5,000+


Automotive


Note: (x-axis, y-axis); Tobacco; Jewelry and Precious Metals; Sporting, Recreational and Children’s Goods, Leather Products, Aerospace Vehicles and Defense, Motor Driven Products; and, Oil and Gas clusters have negligible employment and thus are not shown.

Source: Monitor Group analysis; Statistics Denmark (Danmarks Statistik)

= 0–1,999

Metal Manufacturing

Processed FoodForest Products


Production Technology


Percent Share of Danish

National Cluster

Employmentin 2001 Construction

Materials

Fishing and Fishing Products

Agricultural Products

Wholesale Services





Financial Services


Business Services



Entertainment

Footwear (21%, 60.3%)


Life Sciences

Plastics

Textiles

Apparel (-63%, 1.55%)

Medical Devices



Clusters usually related to emerging technologies

…. but also that Sønderjylland is heavily under-represented in many of the clusters often more closely related to emerging technologies

6

In additional extensive interviews were conducted that identified key regional strengths and weaknesses

Note: *The region is NOT low cost relative to many other areas (China, E Europe)

Key Differentiating Strengths Key Differentiating StrengthsKey Differentiating Strengths Key WeaknessesKey WeaknessesKey Weaknesses

Proximity to North German Market

Multilingual Workforce

Low Cost Relative to

Rest of Denmark*

Low Level of

Education and Skills

Lack of Coordination

and Cooperation

Marginal Area Image

Lack of Local Suppliers and

Customers

Lack of Capital &

Support for R&D

+ -

Low Living Costs

7

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

-50% -25% 0% 25% 50%

By bringing together these separate analyses 4 priority growth opportunities were identified


= 3,000– 4,999= 2,000–2,999

Percentage Change of Share, 1992–2001

= 5,000+


Automotive


= 0–1,999

Metal Manufacturing

Processed Food

Forest Products


Production TechnologyPercent Share of

Danish National Cluster

Employmentin 2001

Construction Materials

Fishing and Fishing ProductsAgricultural

Products

Wholesale Services





Financial Services


Business Services



Entertainment

Footwear (21%, 60.3%)


Life Sciences

Plastics

Textiles

Apparel (-63%, 1.55%)

Medical Devices



Sønderjylland is under-represented in a number of key high employment service clusters

Growth Area 1Grow of Under-

Represented High Employment Clusters

Growth Area 2Leverage Positions of

Strength

Growth Area 3Pursue Emerging

Technologies

Growth Area 4Create the Best Entrepreneurial

Environment

8

Each of the growth opportunities has a strong rationale and potential solutions within our power to address

Growth Driver Growth DriverGrowth Driver Rationale RationaleRationale

Grow of Under-Represented High

Employment Clusters

The region is under-represented in a number of key service clusters –implying it ‘imports’ theseThese clusters hold potential for job creation

In order to maintain and improve its positions of strength, the region will need to invest in emerging technologies

Sønderjylland will need to create an environment that fosters and supports growth – both of existing businesses and new businesses

Leverage Positions of Strength

Pursue Emerging Technologies

Create the Best Entrepreneurial

Environment

The region has existing strengths in Mechatronics that can be leveraged to provide future growth

Potential Solution Potential SolutionPotential Solution

Attract, develop and grow selected Service industries

Organise cluster activities and promote them

Understand cluster-specific emerging technology needs and invest in them

Develop entrepreneurial frame conditions

9

The disruptions of Kommunale Reform and a regional consensus on the importance of public / private cooperation have led us to seek new ways to improve competitiveness

IssuesIssues SolutionsSolutions Traditional Public Sector Delivery

Traditional Public Sector Delivery Desired ImpactDesired Impact

Grow high-employment clusters


Leverage positions of strength


Pursue emerging technologies


Create best entrepreneurial environment


IssuesIssues SolutionsSolutions Politically Neutral Public / Private Partnership

Politically Neutral Public / Private Partnership Desired ImpactDesired Impact









KommunaleReform

KommunaleReform

GoGo

Employment & Competitiveness

Employment & Competitiveness

Off-shoringOff-shoring

Emerging Market Competitiveness


Net Migration of People &* Talent


Growing UnemploymentGrowing Unemployment

Off-shoringOff-shoring





Growing UnemploymentGrowing Unemployment

10

We are therefore establishing an initiative to address our competitiveness challenge: it has 5 core tasks

StrategyStrategy

Organisation of Stakeholders

Organisation of Stakeholders

StructureStructure

Action & Implementation

Action & Implementation

Monitoring Monitoring

Organises business, government and academic communities so that the whole can support and encourage companies to be more innovative and competitive

Articulates a sustainable strategy for regional development including priority clusters and issue areasHelps maintain continuity of strategy over long term

Provides structure to drive strategy during political and administrative reorganisation processCreates Working Groups comprising key stakeholders to create consensus and drive strategy within priority cluster and issue areas

Develops action plans to deliver on strategiesNominates, liaises with and assists those best placed to implement strategies

Holds accountable those responsible for implementing action plans

11

High Employment Clusters Cluster Management Regional Frame Conditions

The initiative’s structure will be headed by a Board and organised around cluster and issue specific Working Groups

BoardBoard

ExecutiveExecutive

Coordinating StaffCoordinating Staff

TourismTourism

Business ServicesBusiness Services

Logistics Cluster Management


Education to Support Regional Industry


EntrepreneurshipEntrepreneurship

Frame Condition Development


Mechatronics Cluster Management


Clusters tbdClusters tbd

Executive DirectorExecutive Director Regional Marketing Board

Regional Marketing Board

12

UdviklingsRåd Sønderjylland members will be the board, their role being to legitimise the Council, oversee its activities and assist the Working Groups


BoardBoard

ExecutiveExecutive

Coordinating Staff

Coordinating Staff

TourismTourism






Entrepreneurship Frame ConditionsEntrepreneurship Frame Conditions






Executive Director

Executive Director



Role– Legitimises Council for

Competitiveness– Convenes Working Groups– Appoints Working Group Members– Approves Working Group process– Approves Working Group plans– Assists and facilitates Working Groups

using influence and access– Represented on Executive– The Board will ensure the impartiality

and independence of the initiativeComposition– UdviklingsRåd Sønderjylland (URS)

Role– Legitimises Council for

Competitiveness– Convenes Working Groups– Appoints Working Group Members– Approves Working Group process– Approves Working Group plans– Assists and facilitates Working Groups

using influence and access– Represented on Executive– The Board will ensure the impartiality

and independence of the initiativeComposition– UdviklingsRåd Sønderjylland (URS)

13

URS, an existing partnership of key regional stakeholders, is well placed to oversee the initiative

Existing URS MembershipExisting URS MembershipExisting URS MembershipAmtsrådet: Amtsborgmester Carl Holst (formand)

Amtsrådsmedlem Grethe Nielsen

Kommuneforeningen:– Formand for Kommuneforeningen, borgmester H.P. Geil, Gram– Borgmester Jørn Lehmann Petersen, Broager

Det regionale Arbejdsmarkedsråd (RAR) - 1 repræsentant fra hhv. lønmodtager- og arbejdsgiverside:– Kredsformand Thorkild Jacobsen– Direktør Finn Breuning

Erhvervsakademierne i Sønderjylland: Finn Karlsen

CVU Sønderjylland: Rektor Søren Vang Rasmussen,

Syddansk Universitet: Rektor Jens Oddershede,

Repræsentanter fra private og offentlige virksomheder:– Direktør Mikael Thinghuus, ECCO– Direktør Jørgen Mads Clausen, Danfoss– Direktør Finn Buus Nielsen, Mærsk Contaner Industri– Direktør Mogens Therkelsen, HP Therkelsen– Direktør Thomas Bjerrum, Dansani– Direktør Carsten Andersen, Sydbank– Det sønderjyske landbrug v/formand Gert Karkov, gårdejer

Amtsrådet: Amtsborgmester Carl Holst (formand)

Amtsrådsmedlem Grethe Nielsen

Kommuneforeningen:– Formand for Kommuneforeningen, borgmester H.P. Geil, Gram– Borgmester Jørn Lehmann Petersen, Broager

Det regionale Arbejdsmarkedsråd (RAR) - 1 repræsentant fra hhv. lønmodtager- og arbejdsgiverside:– Kredsformand Thorkild Jacobsen– Direktør Finn Breuning

Erhvervsakademierne i Sønderjylland: Finn Karlsen

CVU Sønderjylland: Rektor Søren Vang Rasmussen,

Syddansk Universitet: Rektor Jens Oddershede,

Repræsentanter fra private og offentlige virksomheder:– Direktør Mikael Thinghuus, ECCO– Direktør Jørgen Mads Clausen, Danfoss– Direktør Finn Buus Nielsen, Mærsk Contaner Industri– Direktør Mogens Therkelsen, HP Therkelsen– Direktør Thomas Bjerrum, Dansani– Direktør Carsten Andersen, Sydbank– Det sønderjyske landbrug v/formand Gert Karkov, gårdejer

14

An Executive Committee will oversee directly Working Group activities and ensure that knowledge is shared


BoardBoard

ExecutiveExecutive

Coordinating Staff

Coordinating Staff

TourismTourism












Executive Director

Executive Director



Role– Acts on behalf of URS as coordinator of

Working Group Activities– Creates, supervises and reports to URS

on Working Group processes– Coordinates Working Group

recommendations for presentation to URS

– Creates forum for Working Group leaders to ‘cross pollinate’ and share insight

Composition– Selected URS members (2-3)– Working Group Leaders– Executive Director

Role– Acts on behalf of URS as coordinator of

Working Group Activities– Creates, supervises and reports to URS

on Working Group processes– Coordinates Working Group

recommendations for presentation to URS

– Creates forum for Working Group leaders to ‘cross pollinate’ and share insight

Composition– Selected URS members (2-3)– Working Group Leaders– Executive Director

15

Working Groups lie at the working heart of the Council


BoardBoard

ExecutiveExecutive

Coordinating Staff

Coordinating Staff

TourismTourism












Executive Director

Executive Director



Working Group Leader– Chosen by Working Group

Members– Leads Working Group activities

Working Group Leader– Chosen by Working Group

Members– Leads Working Group activities

Working Group Role– Responsible for developing and implementing detailed action plans in their given

area of responsibility– Typical activities for each working group include:

Taking inventory of the current programs and activities underway within their sphere and determining gaps in the effortsReaching out to, and coordinating with the efforts of the other organizations to ensure gaps are filledReaching out to the wider group of stakeholders outside S Jutland to establish working partnershipsDeveloping action plans and tracking metrics, to ensure steady progress is madeInitiating new activities as necessary

Composition– Working Group Leader and 4-6 members comprising:

Relevant business leadersGovernment and academic experts / stakeholders

Working Group Role– Responsible for developing and implementing detailed action plans in their given

area of responsibility– Typical activities for each working group include:

Taking inventory of the current programs and activities underway within their sphere and determining gaps in the effortsReaching out to, and coordinating with the efforts of the other organizations to ensure gaps are filledReaching out to the wider group of stakeholders outside S Jutland to establish working partnershipsDeveloping action plans and tracking metrics, to ensure steady progress is madeInitiating new activities as necessary

Composition– Working Group Leader and 4-6 members comprising:

Relevant business leadersGovernment and academic experts / stakeholders

16

The initiative will have administrative support, headed by a full-time Executive Director


BoardBoard

ExecutiveExecutive

Coordinating Staff

Coordinating Staff

TourismTourism












Executive Director

Executive Director



Coordinating Staff– 2 project managers– Administrative Assistants provided by

Working Group sponsors– Access to Funding Experts– Legal advice

Budgetary contribution to meet operational and research expenses

Coordinating Staff– 2 project managers– Administrative Assistants provided by

Working Group sponsors– Access to Funding Experts– Legal advice

Budgetary contribution to meet operational and research expenses

Executive Director– Long-term project manager

for initiative– Drives and facilitates

process– Sits on Executive

Committee

Executive Director– Long-term project manager

for initiative– Drives and facilitates

process– Sits on Executive

Committee

Regional Marketing– Provide regional marketing

expertise e.g.,Market region as business services destinationProvide advice on mechatronics and other cluster marketing

Regional Marketing– Provide regional marketing

expertise e.g.,Market region as business services destinationProvide advice on mechatronics and other cluster marketing

17

The initiative will further both the Vision and Monitor project’s agenda proposals at a Working Group level


BoardBoard

ExecutiveExecutive

Coordinating StaffCoordinating Staff

TourismTourism






Entrepreneurship Frame Conditions

Entrepreneurship Frame Conditions






Executive DirectorExecutive Director Regional Marketing Board


TourismMonitor Project

‘Nice place to live’Vision Project

LogisticsMonitor Project

ConnectivityVision Project

Frame ConditoinsMonitor Project

Nice place to liveConnectivity

Vision Project

EntrepreneurshipMonitor Project

InnovationVision Project

EducationMonitor Project

EducationVision Project

18

The unique qualities of true clusters serve to enhance innovation and therefore productivity

Competition is fundamentally enhanced by

linkages across firms, industries, and associated

institutions

Increase Productivity /

Efficiency

Increase Increase Productivity / Productivity /

EfficiencyEfficiency

Efficient access to specialized inputs,

Ease of coordination across firms

Rapid diffusion of best practices

Better ability to perceive innovation opportunitiesMultiple suppliers and institutions to assist in knowledge creationEase of experimentation

Stimulate and Enable

Innovations

Stimulate and Stimulate and Enable Enable

Innovations Innovations

Opportunities for new companies are more apparent

Lower barriers to entry into cluster related businesses

Facilitate Commercializa-

tion

Facilitate Facilitate CommercializaCommercializa--

tiontion

19

The definition of mechatronics is clear

Mechatronics: “is the integration of familiar mechanical

systems with new electronics and intelligent software control1”

1 Technology Review 2/2003

Mechanics

Software Electronics

20

… however there are many companies and sectors that incorporate mechatronics or are involved with associated technologies

3’878297Computer and related activities 72

1’02428Telecommunications (but excluding TDC Tele Denmark as it is mostly a provider only)64.20

7’723102Manufacture of medical, precision and optical instruments, watches & clocks 33

2’65547Manufacture of radio, television and communication equipment and apparatus 32

13’640184Manufacture of electrical machinery and apparatus31

32610Manufacture of office machinery and computers30

28’448653Manufacture of machinery & equipment29

No. of Employees

No. of CompaniesIndustry

NaceCodeGroup

Source: Data from CfE, selection criteria according Monitor Analysis and CfE

Note: As one company can be assigned multiple Nacecodes, one company might be counted several times in different groups!However, the total number of companies in whole cluster is 1’267 with employees totalling 47’544

21

670

424

136 37 1,267

0

500

1,000

1,500

1 - 10 11 - 50 51 - 200 over 200 Total

There are over 1,000 companies in the mechatronics-related sector South Denmark

Number of Companies in Mechatronics Sector South Denmark

Note: South Denmark defined as Ribe, Veijle, Fyn and SønderjyllandCountiesSource: Data from CfE Sonderborg, Monitor Analysis

No. Companies

Size of Companies(Nr. Employees)

22

3,259

10,084

13,222

20,979 47,544

0

10,000

20,000

30,000

40,000

50,000

1 - 10 11 - 50 51 - 200 over 200 Total

… employing almost 50,000 people

Number of Employees in Mechatronics Sector South Denmark

No. Employees



23

19

14

611

16

27

27

30

3

26

19

35

38

46

27

18

32

7

33

168 8

24

8

0

10

20

30

40

50

60

70

80

90

100

1 - 10 11 - 50 51 - 200 over 200 TOTAL

Historic (>50 yrs)Established (21-50 yrs)Consolidated (11-20 yrs)Settling (6-10 yrs)Young (1-5 yrs)

There are many companies at differing stages of maturity, probably with differing needs

Age Distribution of Companies in Mechatronics Sector South Denmark

Percentageof

Companiesin Group


Age of Companies(Years since

Establishment)


24

These many potential cluster members will face a diverse set of strategic issues based around their size,

Note: 1>200 employees. 250 – 200 employees

>85% of Companies have

less than 50 employees …

>85% of Companies have

less than 50 employees …

Do these companies want to grow, and do they have access to capital?Do they have access to larger companies / potential customersPotential reliance on larger companies as customersInability to act alone and complexity of coordinating activities and requirements

Do these companies want to grow, and do they have access to capital?Do they have access to larger companies / potential customersPotential reliance on larger companies as customersInability to act alone and complexity of coordinating activities and requirements

… and Large Companies1 make

up 45% employment

… and Large Companies1 make

up 45% employment

Well placed to exploit opportunities presented by globalisationIncreased probability of off-shoring operationsMature companies may face innovation issues and desire increased access to emerging technologies

Well placed to exploit opportunities presented by globalisationIncreased probability of off-shoring operationsMature companies may face innovation issues and desire increased access to emerging technologies

… but SMEs2

make up 28% employment …

… but SMEs2

make up 28% employment …

Emerging exposure to challenges of globalisationPotential reliance on larger companies as customersMay lack scale and competencies to grow in global marketLack of access to networks / exposure to new markets and investors

Emerging exposure to challenges of globalisationPotential reliance on larger companies as customersMay lack scale and competencies to grow in global marketLack of access to networks / exposure to new markets and investors

Different types of companies face different challengesDifferent types of companies face different challenges

25

… and a set of different strategic challenges specific to production areas

Note: 1>200 employees. 250 – 200 employees

Small CompaniesSmall Companies

LargeLarge

SMEsSMEs

Mechanics

Mechanics

Software

Software

ElectronicsElectronics

What is Mechatronics / where are our key linkages, commonalities and complementarities?

What is Mechatronics / where are our key linkages, commonalities and complementarities?

26

With such a diverse set of companies and institutions, it is important to find the strong linkages between companies based on their commonalities

Competition is fundamentally enhanced by

linkages across firms, industries, and associated

institutions

Increase Productivity /

Efficiency

Increase Increase Productivity / Productivity /

EfficiencyEfficiency

Efficient access to specialized inputs,

Ease of coordination across firms

Rapid diffusion of best practices

Better ability to perceive innovation opportunitiesMultiple suppliers and institutions to assist in knowledge creationEase of experimentation

Stimulate and Enable

Innovations

Stimulate and Stimulate and Enable Enable

Innovations Innovations

Opportunities for new companies are more apparent

Lower barriers to entry into cluster related businesses

Facilitate Commercializa-

tion

Facilitate Facilitate CommercializaCommercializa--

tiontion

27

The competitive health of the cluster will be a combination of external factors and internal configuration

Related and Supporting Industries

DemandConditions

DemandDemandConditionsConditionsFactor

Conditions

FactorFactorConditionsConditions

Firm Strategy, Structure and

Rivalry

Firm Strategy, Firm Strategy, Structure and Structure and

RivalryRivalryGovernmentGovernment

External Forces wholly outside the control of the cluster

Local determinants of competitive advantage for cluster

28

As there are a number of key external threats that may put pressure on the regional mechatronics industry







Customers moving to low cost countries often necessitates the suppliers moving with them (e.g. food processing industry)Many of the companies in the region are suppliers to other companiesAmongst other, Gram, Linak, BB Electronics and Lindab have considered moving recently

Low cost countries are rapidly building capabilities to rival developed countries in R&D and sales & marketing (e.g., ECCO will train its Chinese staff in Thailand and Indonesia and Danfoss is developing ‘knowledge’ centres outside the region (Mexico, China, Poland)





Pressures of globalisation are forcing major regional manufacturers are considering or in process of moving operations abroad to low cost countriesOff-shoring will have significant impact on local suppliers

Globalisation ImplicationsGlobalisation Implications

29

Porter’s Diamond describes the local determinants of competitive advantage, many of which are within the control of the cluster

Factor (input) quantity

Factor quality Factor specialization

A local context that encourages sustained investment in upgradingVigorous competition among locally-based rivals

A critical mass of capable local suppliersClusters instead of isolated industries

A core group of demanding local customersUnusual local demand in specialized segments that can be served globallyCustomers whose needs anticipate those elsewhere


DemandConditionsDemandDemand

ConditionsConditionsFactor

ConditionsFactorFactor

ConditionsConditions

Firm Strategy, Structure

and Rivalry

Firm Firm Strategy, Strategy, Structure Structure

and Rivalryand RivalryGovernmentGovernment

Institutions for

Collaboration

30

This analysis can be applied to the mechatronics cluster

Advantages:Low cost of doing business: wages, taxes, rents, utilitiesFlexible, hard working and loyal labor forceHigh quality of life for middle aged people

Disadvantages:Education and skills more focused on production then on innovationNo entrepreneurial educationRisk aversion mentalityPoor access to venture capitalLow retention rates on local talent as region is not attractive for younger peopleLack of job-opportunities for spousesRegion not easy accessible

Advantages:Good Danish business environment

Disadvantages:Low level of local competition (culture and small area) so companies are not forced to innovateDifficult environment for start-upsFew local headquarters or core operations

Advantages:Strong mechanical industry has potentialto upgrade its products with electronics and

software to become mechatronics companiesMany regional suppliers

Disadvantages:Increasing sourcing on international levelLimited interaction with local suppliers on product and process development

Advantages:Unexploited opportunities if focus is shifted from products to services/technologies

DisadvantagesCluster is not yet focused on specific markets, competencies or technologiesCustomers are moving abroad but region is not thinking globally

Source: Interviews, Monitor Analysis



Factor Conditions

Factor Conditions

Contextfor Firm Strategy

and Rivalry

Contextfor Firm Strategy

and Rivalry

Demand ConditionsDemand

Conditions

Illustrative

Illustrative

31

The combination of external forces and internal competitiveness issues provides the overall list of strategic priorities for the cluster

What platforms do we need to share experiences and knowledge?How can we coordinate and formulate our educational needs?Where do we find, catalogue and make available specific competencies and knowledge that already exist within our cluster?

Coordination

How can we support people in experimenting more and taking more risks?How can we ease spin-offs and support start-up companies to get an innovative climate in the region?What educational needs does an entrepreneur have?

Entrepreneurship

What technologies might become disruptive for our products and existing technologies?How are we trying to harness them and ensure that we keep ahead with them?

Emerging Technologies

What are the education and competencies required to ensure the retention of key skills in the area?What outsourced engineering services can we provide to cost conscious manufacturers?

Offshoring / Outsourcing

What market opportunities to we get if we start thinking globally?Where are our customers if we look at competencies and technologies rather than products?Whom are we competing with on an international level?What are the education, competencies and skills required to exploit this opportunity?

Globalization

Issues to be discussedStrategic ChallengesIllustrative

Illustrative

32

Critical to the success of the cluster is its ability to turn strategic challenges into prioritised and actionable campaigns

Will they generate impact?Will they generate impact?

Are they actionable?Are they actionable?

How many cluster members does issue affect?How many cluster members does issue affect?

Do they address competitiveness?Do they address competitiveness?

Prioritised CampaignsPrioritised CampaignsPrioritised Campaigns

E.g.,Is this an issue for all members?Is this a particular issue for small, medium or large companies?

E.g.,Is this an issue for all members?Is this a particular issue for small, medium or large companies?

E.g.,Does issue affect cluster’s ability to grow and competeUse Porter’s diamond to assess whether issue will affect competitiveness

E.g.,Does issue affect cluster’s ability to grow and competeUse Porter’s diamond to assess whether issue will affect competitiveness

E.g.,Is issue one which is best addressed at a cluster level, by the cluster organisation?Are there practical , easily implemented measures that can be put in place to resolve issue?

E.g.,Is issue one which is best addressed at a cluster level, by the cluster organisation?Are there practical , easily implemented measures that can be put in place to resolve issue?E.g.,

Can effect of actions be measured – can metrics be used to assess success of measure and to refine actions?

E.g.,Can effect of actions be measured – can metrics be used to assess success of measure and to refine actions?

Challenges raised by

Members of Mechatronis

Cluster

Challenges Challenges raised by raised by

Members of Members of MechatronisMechatronis

ClusterCluster

Challenges found in

MechatronicsCluster

Analysis

Challenges Challenges found in found in

MechatronicsMechatronicsCluster Cluster

AnalysisAnalysis

Challenges raised by other CfC Working

Groups

Challenges Challenges raised by other raised by other CfCCfC Working Working

GroupsGroups

udviklingsråd sønderjylland competitiveness initiative

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