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Valuenomics

A new road map for better trade services

1. THE SYSTEM2. THE TOOL3. THE PROCESS

Valuenomics

Valuenomics is about trade from a sectoral or national perspective. While Valuemathics focuses on the primary actors in the value system -the firms in the supply chain- Valuenomics’ focus is on the other stakeholders : the enablers and the drivers.

ValuenomicsValuenomics is a new concept on trade development and –promotion. It is designed for business support organizations and governmental institutions. Focus is on demystification and creation of “value added”. Valuenomics provides stakeholders with

1. A chart of the value system and its stakeholders

2. A competitiveness analysis tool

3. A step by step approach for trade services . . . . . . . . . . . .

1.VALUE SYSTEM ANALYSIS

Analyze what is made

2.BEST MARKET SELECTION

Focus and diversification

3.GAP ANALYSIS

Customer values versus value

proposition

4.TRADE DEVELOPMENT Make what sells

5. TRADE PROMOTION

Sell what is made

MA

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“B

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” “B

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“M

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KETS

”

The trade process…..step-by-step

TRADE

SECTORS

VSA

MARKETS

BMS

1. VALUE SYSTEM ANALYSIS2. BEST MARKET SELECTION

VALUE

VALUE

GAP

3. GAP ANALYSIS

DEMAND

OFFER

TDS

4. TRADE DEVELOPMENT

IMPORTERS

EXPORTERS

TPS

5. TRADE PROMOTION

MARKETS

BUYERS

BUSINESS

MARKET INTELLIGENCE

MARKETS

VALUE

DEMAND

IMPORTERS

TRADE

POSSIBILITY

POTENTIAL

OPPORTUNITY

. . . . a firm’s road map

POSSIBILITY

POTENTIAL

OPPORTUNITY

Based on quantitative and qualitative data and market access barriers

Actual, proven, specific demand and a matching offer

Compliance of value proposition with customer values

TRADE

MARKETS

VALUE

DEMAND

IMPORTERS

“It will……”

“It could……”

“It can……”

. . . . a firm’s road map

SECTORS

VALUE

OFFER

EXPORTERS

TRADE

ANALYSIS

DEVELOPMENT

PROMOTION

. . . . institutional road map

ANALYSIS

DEVELOPMENT

PROMOTION

Assessment of quantitative and qualitative data

Development of exportable offers

Sector, product or company branding and/or promotion

TRADE

“See what sells”

“Make wat sells”

“Sell what is made”

SECTORS

VALUE

OFFER

EXPORTERS

. . . . institutional road map

For each step of the trade process, Valuenomics holds an appropriate service. The step-by-step approach guides public institutions and BSO’s in the

• Identification of trade possibilities • Development of trade potential • Conversion into trade opportunities

. . . . a service for each step

MARKETS

VALUE

DEMAND

IMPORTERS

SECTORS

VALUE

OFFER

EXPORTERS

BMS

GAP TPSTDS

VSA

MARKETS

BUYERS

BUSINESS

TRADE

1. Value System Analysis

See what is made……..

The value system analysis is executed with the “MRI-SCAN” on meso/sector level. It is a diagnostic tool to assess the competitiveness of a sector on international markets.

See “THE TOOL” under VALUENOMICS at www.valuemagics.com

C = x 3 y 2 z 40.388

Vision, management,motivation, strategies, plans & alignment MINDS TECHNOLOGY, DESIGNS,

IP, UNIQUENESS, CULTURE6 PROCESS INNOVATION

PROCESS CONTROL7 MARKET ENTRY MODE

STRATEGIC POSITIONING4 5,7

Investments done, budgets available, financial strength MONEY INVESTMENTS IN

R&D/INNOVATION/LICENSES 4 FIXED/WORKING CAPITAL

INVENTORY TURNS6 MARKET RESEARCH &

PROMOTIONAL BUDGETS3 4,3

Knowledge, expertise, productivity, training of personnel MAN POWER AGRONOMISTS, ENGINEERS

DESIGNERS, RESEARCHERS3 SKILLED PERSONNEL

PRODUCTIVITY/SERVICE LEVEL8 EXPORT AND MARKETING

MANAGERS4 5,0 5,2

Processes, QA systems, certifications, data METHODS DESIGN & VALIDATION PROCESS,

CMM, GLOBAL GAP4 OSHAS, EMAS, ISO 9001,

QMS, TS16949, HACCP5 MARKETING PLANS, CRM

ORDER PROCESSES6 5,0

Machines, equipment, land, hard & software, buildings. MATERIALS CAD/CAM, LABORATORY

TEST EQUIPMENT6 MACHINERY, FACILITIES

TRANSPORT, IT STRUCTURE7 ICT HARD & SOFTWARE

COLLATERALS, E-BIZ5 6,0

4,6 6,6 4,4

Information services, databases, market intelligence REPORTS TECHNOLOGY SCANS

INNOVATION UPDATES6 STATISTICS, ANALYSIS

COMPETITIVENESS GAUGES7 MARKET INTELLIGENCE

CUSTOMIZED INFORMATION6 6,3

Network, national/international, with business and government RELATIONS INDUSTRY/ACADEMIA

INTERFACE6 ????????? 7 INTL BSO NETWORK

INTERNATIONAL PRESENCE8 7,0

Expertise, competence, attitude, understanding of sector READINESS INDUSTRY EXPERTISE

SECTOR DEVELOPMENT8 ADVOCACY ENHANCING

COMPETITIVENESS8 SECTOR POSITIONING

SECTOR BRANDING7 7,7 6,5

Assistance, services, programs, trainings REQUESTS INCUBATION/IP ASSISTANCE

BUSINESS DEVELOPMENT7 VOCATIONAL WORKSHOPS

BEST PRACTISE EXCHANGE 7 TRADE MISSIONS

TRADE FAIRS 5 6,3

Organizational & financial strengths ROBUSTNESS DONOR MANAGEMENT

REVENUE SOURCES5 SERVICES PORTFOLIO

DELIVERY TEAM5 BSO BRANDING

MEMBERSHIP RECRUITMENT6 5,3

6,4 6,8 6,4

Co-financing, financial & tax breaks, fiscal incentives INCENTIVES INNOVATION TAX BREAKS

DRAW BACK SYSTEMS4 INVESTMENT

INCENTIVES, SUBSIDIES6 CO FINANCING OF TRADE

MISSIONS/FAIRS4 4,7

Roads, IT infrastructure, cold chains, port facilities INFRASTRUCTURE FUNDAMENTAL RESEARCH

SHARED TECH CENTRES6 ROADS AND TRANSPORT,

ACCESSIBILITY, CLUSTERING7 (AIR)PORT FACILITIES, COLD

CHAINS, ICT STRUCTURE6 6,3

Motivation, inititatives to support the sector INITIATIVE INNOVATION POLICY

ENTREPRENEURSHIP5 MANUFACTURING, ECOSYSTEM

EASE OF DOING BUSINESS5 TRADE AGREEMENTS

COUNTRY BRANDING5 5,0 5,7

Legislation, institutions, regulations, trade support INSTITUTIONS BUREAU OF STANDARDS

INTELLECTUAL PROPERTY6 LABOR & ENVIRONMENTAL LAW

PROTOCOLS, INSPECTIONS5 MARKET REGULATIONS

TPO/FO/COMMATT8 6,3

Educational level, knowledge institutes INSTRUCTION DESIGN ACADEMIES

TECHNICAL EDUCATION7 VOCATIONAL EDUCATION

INFORMATION ON STANDARDS6 SCHOLARSHIPS

EXCHANGE PROGRAMS5 6,0

5,6 5,8 5,6

DEVELOPMENT PRODUCTION MARKETING

DEVELOPMENT PRODUCTION MARKETING

DEVELOPMENT PRODUCTION

ACTO

RS

ENA

BLE

RS

DRIV

ERS

MARKETING

5,5 6,4 5,5

2. Best Market Selection

See what sells……..

A service that helps exporters to start up the process with a focus on specific markets or segments. BMS serves potential exporters, but existing exporters as well in diversification of markets.

A market survey supports the decision making in the BMS A B C D E

EXPORTS 3 -1 5 1 -5 IMPORT GROWTH 1 3 5 -1 -3

GDP PER CAPITA -1 5 -3 1 3 GDP GROWTH -3 3 5 -5 1 COMPETITORS 1 -1 -3 3 -5

TRADE AGREEMENTS 3 1 5 -1 -5 LOGISTICS 1 3 5 -3 -1

5 13 19 -5 -15

. . . . trade policy

Together, the Value System Analysis and Best Market Selection are the main input for a country’s :• Policy on development of strategic

sectors • Trade policy for trade agreements.

3. GAP analysis

Confrontation with customer values……

The GAP analysis is done through the SWAT, a new generation score card in which a sector’s value proposition is confronted with the customer

values in a given market or segment. The GAP reveals the competitive advantagesand

disadvantages of a sector in a given market

The GAP can be offered in two ways:1. A sectoral audit in which selected stakeholders participate.2. Consolidation of a representative number of SWAT analyses done on micro/firm level – see “THE TOOL” under VALUEMATHICS at www.valuemagics.com

PRO

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ACCCES

S

SPEE

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TECHNOLOGY 1,4 -1,8 1,0 0,6 1,4 3,0 0,9

PRODUCTION 4,2 3,8 1,8 3,0 2,4 4,6 3,3

LOGISTICS 2,6 -2,2 -1,4 -0,6 1,2 1,2 0,1

MARKETING -3,4 -2,0 -2,6 -1,2 -2,2 -2,4 -2,3

SUPPORT -3,2 0,6 -1,6 0,8 -0,8 -0,4 -0,8

0,3 -0,3 -0,6 0,5 0,4 1,2

4. Trade development servicesMake what sells……

4.1 . . . . . constraint solution

A road map for public institutions and BSO’s for their service portfolio in trade development. Based on the analysis of

comparative (VSA) and competitive (GAP) disadvantages, constraints can be classified as follows:

1. Constraints at firm level2. Constraints at sector level

3. Constraints at government level

. . . . theory of constraints*

1. Constraints at firm level• Motivation• Vision• Balance sheet management• Management development

2. Constraints at sector level• Vocational training• Market Information• Certifications• Promotional tools

3. Constraints at government level• Legislation-taxation• Export financing instruments• Trade facilitation – red tape• Infrastructure• Trade policies• Incentive programs

* Goldratt E. and J. Cox (2004) The Goal: A process of ongoing Improvement John Wiley and Sons

5. Trade promotion servicesSell what is made……

SUB-SECTOR SUB-SECTOR SUB-SECTOR

SECTOR BRANDING

WEBSITE PROMOTION

TRADE FAIRS

SECTOR ROUNDS

MARKET EXPOSURE

B2B TOOLS

OTHERS

Capturing opportunities

• Most countries have defined priority sectors

• Private sector is sectorally organized

• Less competition with other private sector instruments

• General trade missions are less successful

• Regional promotion is less outcome based

• Promotion should be market driven, not supply driven

• It is easier to understand similar markets

• Most Foreign Offices structures and free trade agreements are market driven

• The promotion function is outside a country’s borders, hence regional

• Country branding should be regional

. . . . the trade promotion debate

SECTORAL REGIONAL

StatisticsTrends Trade channels

Business etiquetteLegal and contract issuesCultural differences Buyer’s requirements

on• Product attributes• Norms/standards• Availability/delivery• Image/track record• Pre-after sales

service• Total costs of

ownership

Market Intelligence portfolio

MARKETS

BUYERS

BUSINESS

• A model for a trade support system

• A blueprint for BSO’s service portfolio

• A tool to develop top sectors

• A building block for trade policy

• The high road from possibility to opportunity

TRADE

Valuenomics

www.valuemagics.com