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Accelerating Development of the Communications and Information Technology Sector

PRIDCO / OGP / PRMA / PRTEC / CNE

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CONFIDENTIAL

Final Report

August 12, 2002

AP/CA-PRI001-01-01 Gnal. Group

1

MAIN MESSAGES

• The Communications and Information Technology sector has been identified as a high potential sector to arrest a recent job loss trend; and the C&IT Roadmap effort was launched to implement an executive mandate to accelerate the sector

• When we conducted our diagnosis, we recognized that P.R. has some assets it could bring to C&IT but there are many more barriers to overcome to be successful in C&IT area

• In conjunction with a wide group of stakeholders, we developed a roadmap of focused initiatives to build the capabilities and eliminate barriers necessary to capture opportunities in C&IT. Out of 23 recommended initiatives, 4 key initiatives were selected for focused attention from the Advisory Board to ensure implementation success

• Based on the commitment expressed by the DDEC Secretary, the Advisory Board decided that the C&IT organization should begin implementation immediately from within the DDEC. The implementation will require focus, leadership, and a committed full time resource which leverages existing organizations, and leaders to systematically drive the priority initiatives to completion

• The Communications and Information Technology sector has been identified as a high potential sector to arrest a recent job loss trend; and the C&IT Roadmap effort was launched to implement an executive mandate to accelerate the sector


• In conjunction with a wide group of stakeholders, we developed a roadmap of focused initiatives to build the capabilities and eliminate barriers necessary to capture opportunities in C&IT. Out of 23 recommended initiatives, 4 key initiatives were selected for focused attention from the Advisory Board to ensure implementation success



2* Partial years for 1996 and 2001

Source: Monthly survey establishments (data not seasonally adjusted)

-5,252

-13,336

-137 -24,887

-18,830

-73

-6,089

Total loss

PUERTO RICO’S MANUFACTURING SECTOR HAS SUFFERED LARGE JOB LOSSES RECENTLY

Electrical and electronic

Other chemicals

Instru-ments

Pharma-ceuticals

Textile, apparel, and leather

Other Net lossFood

Manufacturing jobs – 1996-2001*

+ 2062

+ 3995

Traditional manufacturers


3

3017

22

26

1726

9 104 687 9

3

43

Manufacturing

Wholesale Retail

513 831

-0.6

3.4

3.2

1981 2001

100% =

Other Services

Insurance and Real Estate

WHILE SERVICE SECTOR EMPLOYMENT HAS INCREASED STEADILYEmployment*, thousands

* Employment figures exclude government sector which was 264K and 565KSource: PR Labor Department, Caribbean Business, U.S. Bureau of Labor Statistics

Health ServicesAgricultureConstructionTransportation

5.0

5.4-3.13.44.0

2.6

CAGR (%)

• Employment in the service sector increased from 52% to 68% of total employment while manufacturing decreased from 30% to 17%

• Economic development initiatives must focus more efforts on the service sector while seeking to maintain the manufacturing base

Service sector


4

Computer and peripheralsCommunication equipmentAudio and video equipment Optical and magnetic mediaElectrical equipment, application, componentGeophysical Surveying(e.g., Remote Sensing)Software publishingInternet TelecomBusiness enabling tech (e.g. e-commerce)

Telephone call centersRepair and maintenance of electronic equipmentFacilities managementInformation Services

THE C&IT SECTOR HAS BOTH SERVICE AND MANUFACTURING OPPORTUNITIES

Communications and IT

Computer and electronics manufacturing(incl. design)

S/W customizationS/W support

InformationServices

CustomerServices

Data processing services Hosting and design

Remote services

Software developmentData EntryBack office ops. (e.g. HR)TranslationDistance learningResearch Technical design

Call centersHelp Desk (email, phone, chat)Sales and MarketingBilling

C&IT Industry tree

Customer Services


5

JOBS IN C&IT AREAS HAVE THE STRONGEST GROWTH PROSPECTS IN US

Source: U.S. Bureau of labor statistics, 2000

The top seven fastest growing occupations in the next 10 years will be related to Information Technology

1.5 million new jobs

1.5 million new jobs

Fastest Growing Occupations in the U.S., 2000-2010

% change

100%

97%

90%

82%

77%

67%

66%

Occupation

• Computer & Software Engineers, Applications

• Computer support specialists

• Computer & Software Engineers, System software

• Networks & Computer, System administrators

• Network systems and data communications analyst

• Desktop publishers

• Database administrators

380

490

284

187

92

25

70

Job increaseThousands


6

0

100

200

300

400

500

600

700

1995 1996 1997 1998 1999 2000 2001 2002

Available workforce

Required workforce

. . . AND DEMAND FOR IT PROFESSIONALS HAS BEEN OUTPACING SUPPLYThousands of employees

* 2001 and 2002 are forecastsSource: International Data Corporation, 2000

Hiring gap for US information technology professionals*

Demand is being satisfied by immigration of qualified IT professionals or by off-shoring IT intensive functions


7

IRELAND PROVIDES A PROMINENT EXAMPLE OF CONCERTED ACTION TO BUILD A C&IT SECTOR . . .

Source:Ireland Development Agency

Position Ireland as the world leader for e-business and knowledge-based economic growth

Key elements Vehicles for execution

• Telecommunications: $5 Billion infrastructure investment in the past 10 years

• Legal and Regulatory framework:Legalize all electronic transactions, protect intellectual property (IP)

• eGovernment: Increase efficiency and quality of gov. service, use as tool to develop local C&IT expertise

• Interdepartmental Working Group– Ensures necessary coordination

across government to address items relevant to Information Society Development

– Publishes report on progress against milestones

• Telecommunications Working Group under cabinet committee on infrastructure

• IDA Marketing Strategy to attract IT outsourcing employers– Dedicated experts– Focused, performance-based

approach– Emphasis on after-care

• eBusiness• R&D• Lifelong learning• eInclusion

Supporting frameworks


8

. . . THAT PROVES THE POTENTIAL FOR SIGNIFICANT ECONOMIC GAINS FROM C&IT PROMOTION

Source: Ireland Development Agency; IDC; McKinsey analysis

Tele servicesTele services

Software DevelopmentSoftware Development

Shared Service CentersShared Service Centers

60 multi-nationals and third-party providers

60 multi-nationals

140 overseas

Companies Jobs

12,000

4,000

15,000

Value proposition

• Excellent telecom infrastructure

• Financial and tax incentives

• Competitive cost environment

• Multi-lingual operators

• Readily available pool of loyal computer graduates

Ireland created 30,000 jobs in business process outsourcing in the past 10 years

Knowledge and skill transfer resulted in 700 local

software companies employing an additional 15,000


9

6,039

11,709

19,967

34,783

1970 1980 1990 2000

SINGAPORE PROVIDES ANOTHER EXAMPLE OF SIGNIFICANT ECONOMIC GAINS FROM CONCERTED PURSUIT OF C&IT

Source: World Bank

Evolution of manufacturing activities

Development of local industry and infrastructure

Focus on high-tech and improving talent

6.8%6.8%

5.5%5.5%

5.7%5.7%

GDP per capita, 1995 US DollarsMain actions: 1990-2000

Growth enabling polices• Deregulation of banking and telecom industries

Sectoral growth promotion• Initiative to promote high tech investment and

create the Intelligent Island– Focus on key industries (e.g., semi-conductors,

chemicals)– Marketing and coordinating potential investors

• Incentives for local companies to establish presence in Aseon

• Development of local talent and efforts to attract foreign employees

Public sector improvement• Accountability and rigorous performance

management for public sector• Senior public service salaries benchmarked

versus private sector

CAGR


10

PRIDCO AND PRTEC INITIATED THIS PROCESS TO FOLLOW A PROVEN METHOD FOR DEVELOPMENT OF THE C&IT SECTOR

Cluster Model has been validated with US Dept. of Commerce – Economic Development Agency

Implementation

Advisory Board

Organize Cluster

Develop Roadmap Gaps

Action PlanApproval

Close Gaps• New Business/R & D Centers• Infrastructure• Legislation


11

THE EFFORT TO ACCELERATE THE C&IT SECTOR IS AN IMPLEMENTATION OF THE GOVERNOR’S MANDATE ON “MANOS TECNOLOGICAS”

Key players

Roles

• Implementation Team

• Industry partners

• Obtain legislative and executive support

• Develop partnerships

• Lead initiatives• Monitor progress

ImplementationImplementation

• Steering Committee• Advisory board

• McKinsey & Company• Local consultants

• Diagnose• Evaluate opportunities• Include local and

global expertise• Develop action plan

Roadmap planningRoadmap planning

• PRIDCO• OGP• PRTEC• PRMA• CNE

• Include government, industry and academia

• Prepare overall plan

• Define success

Organize for actionOrganize for action

• Governor of Puerto Rico –“Manos Tecnológicas”

• PRTEC

• Establish mandate• Set vision• Select cluster

model for economic development

Need to create more jobs in C&IT

sector

Need to create more jobs in C&IT

sector

CommunicationCommunication

∆ Jan 2001 ∆ Jan 2002 ∆ Mar 18 2002 ∆ Aug 16 2002


12

MAIN MESSAGES

• The Communications and Information Technology sector has been identified as a high potential sector to arrest a recent job loss trend; and the C&IT Roadmap effort was launched to implement an executive mandate toaccelerate the sector


• In conjunction with a wide group of stakeholders, we developed a a roadmap of focused initiatives to build the capabilities and eliminate barriers necessary to capture opportunities in C&IT. Out of 23 recommended initiatives, 4 key initiatives were selected for focused attention from the Advisory Board to ensure implementation success







13

PUERTO RICO HAS SEVERAL ASSETS TO LEVERAGE AND GROW THE C&IT SECTOR

Telecom infrastructure

Universities

Some large, sophisticated customers

Unique ties to U.S., Latin America, and the Caribbean

• UPR-M among top twenty granters of engineering degrees in the U.S. (BS by volume)

• Quality of graduates recognized by major firms and federal agencies

• Banking (e.g. BPPR, GM Group) regional leader in electronic transactions• Pharmaceutical plants (9 of top 10 best-selling drugs manufactured in

Puerto Rico)

• Easy cultural and linguistic connection with U.S. and Latin American market

• Political, economic, financial stability and integration into U.S. capital markets

• Same legal and regulatory(e.g. FDA, DoD) system as U.S.

• High bandwidth connections to U.S.• Pervasive optical infrastructure within Puerto Rico

Description


14

3.3

3.4

3.6

2.8

2.6

2.6

2.7

PUERTO RICO'S TIES TO THE US, LATIN AMERICAN AND THE CARIBBEAN WERE PRIORITIZED BY C&IT INDUSTRY LEADERS

Key ties and benefits

Note: 5 = Clear competitive advantage, 4 = Emerging advantage, 3 = meets minimum standard, 2 = needs some improvement, 1 = needs significant improvement

Source: U.S. and Puerto Rico Bureaus of Labor Statistics; Economic Research Institute, 1990 Censuses; C&IT Industry Leader survey

Assessment of C&IT Assets*Rating

Country stability

Latin American and U.S. understanding

3 = meets min. standards

Bilingual workforce

Workforce with process development skills

University programs

Research Institutions

Technical schools for C&IT

• Easy cultural and linguistic connection with U.S. and Latin American market – 23% of Population bilingual, another 30%

speak English with difficulty. Almost 100% speak Spanish

• Political, economic stability and integration into U.S. capital markets– Relatively low inflation in the last decade

(Between 6-12% annual)– Strong and credible law system and

Political stability in the region

• Geographic location – Close to Miami, Mexico City, Caracas

and the rest of the Caribbean

• Strong trade relationship with the US


15

UNIVERSITY OF PUERTO RICO IS AMONG THE TOP TWENTY ENGINEERING PROGRAMS IN THE U. S.

Source: ASEE Profiles of Engineering technology colleges

Engineering Undergraduate Enrollment

Engineering BS’s awarded

Electrical /Computer BS awarded

Engineering MS awarded

Engineering PhD

4,077

665

187

60

8

14

18

24

unranked

unranked

TotalStudents Rank

• Puerto Rico’s bachelor level engineering education system ranks favorably in volume and quality vs. U.S. institutions

• Graduate degrees are under represented

UPR- Mayagüez Engineering rankings vs. all U.S. universities in 2001

Polytechnic University awarded and additional 264 degrees in 2001 including 72 BSEE’sPolytechnic University awarded and additional 264 degrees in 2001 including 72 BSEE’s


16

PUERTO RICO’S HUMAN CAPITAL IS MUCH CLOSER TO THE U.S. STANDARD THAN TO THE LATIN AMERICAN AVERAGE

U.S.Puerto Rico

100%

Less than 9th grade

9th grade to college

College or higher

Education attainment – 1990*Percentage of population 25 years of age or older

100%

• Good educational standards when compared to a first world country such as USA

• Strong pool of talent from Universities

• University of Puerto Rico –Mayagüez exports 40% of its computer and electrical engineering graduates

* Census figures for 2000 were released after this analysis coclusion Source: U.S. Census; “International Data on Educational Attainment” Harvard University working paper

Latin America & Caribbean

100%

75

35

11

17

51

69

8 14 20


17

STRONG, SOPHISTICATED PLAYERS COMPETE IN P.R.’S C&IT MARKET

Puerto Rico has a strong base of sophisticated local and global companies on which to build upon for the

development of the C&IT sector in the island

Selected sample

GM Group


18

HOWEVER, THERE ARE MANY MAJOR OBSTACLES FOR C&IT SECTOR DEVELOPMENT

Enablers Inputs Implementation

Infrastructure• Provisioning of data services is

slow, sometimes not available (e.g., ADSL deployment)

• Permits for access to utilities is slow (e.g 1-2 months municipal, up to 6 from DTOP)

Education, R&D• Under-funded, unfocused R&D

efforts not coordinated with industry

• Educational curriculum of public university does not meet C&IT industry needs (e.g. more theory than practice, few internships with industry in EE)

Skills• Best engineers frequently leave

Puerto Rico• Insufficient supply of vocational

technicians• Few professionals with

understanding of global markets• Economic Development agencies

(e.g PRIDCO, GDB) have few professionals who understand C&IT sector

Funding• Available funding is not well

coordinated with stages of need for funding (e.g. investment skill and efficiency)

• No professional oversight on funding investments

Execution• Policies change dramatically

across administrations• Government and public

university – lack organizational agility to respond to quickly evolving C&IT market priorities

• PRIDCO promotions organization is unable to compete globally for C&IT

Culture• Orientation towards tangible

assets only; no emphasis on Intellectual Property and the importance of building a networked economy

• Econ. Development solution mindset ingrained on tax incentives


19

3.1

3.0

2.8

2.6

2.5

2.2

INDUSTRY LEADERS ACKNOWLEDGE THAT P.R.’S C&IT INDUSTRY IS UNDERDEVELOPED RELATIVE TO GLOBAL STANDARDS1= needs improvement, 5 = clear advantage

* Question: How would you rate PR’s C&IT industry in each of the following key success factors; Respondents assessed 3-4 key success factors in each C&IT sector

Source: C & IT Industry Leader Survey

Telecommunications Services

Network architecture and management

Electronics design and manufacturing

Remote Services

Software development

General Entrepreneurship

• According to respondents, Puerto Rico’s C&IT assets meet minimum standards only in electronics manufacturing and network architecture and management

• Effort will be required along multiple fronts to overcome the many obstacles

3 = meets minimum standardsAverage response


20

SEVERAL IMPORTANT BARRIERS WHERE EMPHASIZED IN THE SURVEY1= not a barrier - 5 = overcoming barrier is essential

* Question: “Please rate the importance of the potential barriers to overcome for the growth and development of the C&IT sector in Puerto Rico”


4.2

4.1

3.9

3.9

3.6Labor Costs*

Telecommunications service availability and price

Government execution

Location attractiveness to C & IT

Education and research alignment with industry needs

Mindset

Government execution and the availability and price of telecommunications services were identified as the two leading barriers to the development of the C&IT sector

Average response

Not included in survey (see interview quotes)

4 = barrier is somewhat important*


21

SEVERAL IMPORTANT BARRIERS WHERE EMPHASIZED IN THE SURVEY (Cont.)1= not a barrier - 5 = overcoming barrier is essential

4.39

4.32

4.25

4.00

4.00

3.98

3.98

4.16

• Government

• Government suffers from changing policies, poor coordination and skills to contribute to the C&IT sector

• Cooperation between education, research and industry appears to be weak

Average response– Continuity of policy across different

administrations– Coordination among agencies to

serve investors and entrepreneurs– Skills to assess C&IT opportunities

• Labor costs– High costs to comply with labor laws

and regulations

• Location attractiveness– Loss of talent to U.S.

– Global image as business destination

• Education and Research– Alignment of coursework and

programs with industry needs– Research that supports commercialization

of new products and services

* Question: “Please rate the importance of the potential barriers to overcome for the growth and development of the C&IT sector in Puerto Rico”


4 = barrier is somewhat important*


22

FEW ECONOMIC DEVELOPMENT RESOURCES DEDICATED TO SCIENCE AND TECHNOLOGY

Source: Interviews, PRIDCO and Government of Puerto Rico Organizational Models (March 2001), Ohio Development Agency

600 employees

Economic Development Agency (DDEC)

Governor of Puerto Rico

PRIDCO

Support functions

Science & Technology Program

1 full time Director

2 contracted experts

1 C & IT expert

Nine other agencies and organizations

Ohio Development Agency

Governor of Ohio

Economic Development

Technology Division

Office of Science & Technology

• Dedicated resources are not proportional to the stated importance of technology in the island’s economic development

• There is insufficient expertise to evaluate and support C & IT initiatives

Comparison between Puerto Rico’s and Ohio’s Science and Technology economic development resources


23

MAIN MESSAGES



• In conjunction with a wide group of stakeholders, we developed aroadmap of focused initiatives to build the capabilities and eliminate barriers necessary to capture opportunities in C&IT. Out of 23 recommended initiatives, 4 key initiatives were selected for focused attention from the Advisory Board to ensure implementation success




• In conjunction with a wide group of stakeholders, we developed aroadmap of focused initiatives to build the capabilities and eliminate barriers necessary to capture opportunities in C&IT. Out of 23 recommended initiatives, 4 key initiatives were selected for focused attention from the Advisory Board to ensure implementation success



24

THE PROCESS OF SELECTING POTENTIAL AREAS/SECTORS FOR FURTHER EVALUATION INCLUDED INPUT FROM A WIDE AUDIENCE

• Interviews with key experts of selected entities (e.g: Government, Universities, Private sector, non-profit organizations,etc)

SurveySurvey

InterviewsInterviewsR

ound

tabl

es/

Pres

enta

tions

Rou

ndta

bles

/ Pr

esen

tatio

nsM

cKinsey ExpertsM

cKinsey Experts

• Analysis of results of comprehensive survey sent to 200+ participants

• Roundtables and presentations to steering committee, advisory board and general public (e.g: Caribe Hilton presentation, etc.)

• Support of McKinsey practices and experts world wide (e.g: Global strategy practice, Silicon Valley office, etc)

Initiatives and opportunities for further analysis


25

ALL C&IT STAKEHOLDERS HAVE KEY CONTRIBUTIONS TO THE ECONOMIC AND JOB GROWTH OF THE SECTOR

Goal

C&IT businesses (local and

international)Jobs

Growth

Universities + vocational schools

Skilled professionals

Trained technicians

Network/nurture ideas

Gov. Desarrollo Económico

Attract, new biz

Support existing

Support creation of new bus.

Funding

Government (General)

Infrastructure

Rules + regulations

Largest customer

Entrepreneurs (new and

established)

Leadership

Know-how

Ideas

Banks & Investors

FundingSkillsLargest C&T Consumer

R&D all sources (university,

corporate, gov.

R&D Jobs

Bench of experts

Technology transfer

Enhances image of PR as a C&IT destination

Corporate Leaders

Leadership

Know-how

SupportFunding

Funding

Key contributions


26

Computer and peripheralsCommunication equipmentAudio and video equipment Optical and magnetic mediaElectrical equipment, applicationGeophysical Surveying(e.g., Remote Sensing)Software publishingInternet TelecomBusiness enabling tech (e.g. e-commerce)Telephone call centersRepair and maintenance of electronic equipmentFacilities managementInformation Services

Customer Services

FROM THE INDSUTRY TREE, SEVERAL ATTRACTIVE BUSINESS OPPORTUNITIES FOR JOB GROWTH WHERE IDENTIFIED

Computer and electronics manufacturing(incl. design)

InformationServices

CustomerServices

Remote services

Shared Services Centers

Contact Centers for Hispanic market

Pharmaceutical process outsourcing

Health care related – IT

Software development

Banking and insurance process off-shoring

Niche electronics manufacturing• Medical• Defense


27

C&IT BUSINESS OPPORTUNITIES IDENTIFIED

• Translation and localization for U.S. Spanish-speaking market and Latin America

• Application development• Consultancy service and systems

integration

Software

Pharmaceutical process outsourcing

• Drug lifecycle management• Regulatory filings and

management

Contact Centers for Hispanic market

• Marketing campaigns• Software help desks• Customer service

Shared Services Centers

• Financial administration• Personnel administration• Information technology• Logistics management

Banking and insurance process off-shoring

• Wholesale banking services• Insurance claim processing, sales

support

Health care related – IT

• Health insurance claims processing• Electronic medical records (HIPAA

related) remote management

Higher priority

Electronics manufacturing

• Contract manufacturing services for high margin products requiring high quality manufacturing processes with regulatory connections to U.S. (e.g., medical electronics, defense)

B1-B2

B5

B6

B7

B8

B3

B4


28

GOVERNMENT INITIATIVES

Performance-Based Mgmt of C&IT Promotion

Performance-Based Mgmt of S&T Funding

Engage PR Talent Abroad

Promotion of Existing Companies

C&IT Promoexport

Promote Early Stage Investing

De-Bottleneck Barriers to Telecom & Broadband

Incentives for Local C&IT Consumption

Reduce Business Startup Costs

Increase pipeline of companies in C&IT with professional promoters

Target C&IT companies already in PR –local and continental for expansion

Professional oversight of S&T funding and awardee performance

Engage PR professionals abroad to help with Econ Development

Promoexport activities to include C&IT small and medium local companies

Special treatment for C&IT startups to encourage growth

Diagnose competitiveness and release barriers to growth

Government contracts to award additional points to proposers who include local content

Review and adjust venture capital and early funding laws and regulations

G1

G3

G4

G5

G6

G7

G2

G8

G9


29

RESEARCH AND EDUCATION INITIATIVES

C&IT Center of Excellence

Increase applied research activities in C&IT by funding a research center in partnership with industry leaders and a stateside university

Focus R&D funding on target applied research areas aligned with business opportunities

Increase hi-tech startups with a focused incubator based on national incubator standards, professional oversight.

C&IT Incubator

Link R&D Funding to Econ. Development

Realign / Strengthen C&IT Skills

Entrepreneurial Curricula

Close the gap between academic C&IT skills production and the business requirements of the C&IT industry by reducing curriculum review cycle for key courses incorporating industry input and benchmarking with other programs.

Neighborhood Internet Access

Include entrepreneurial classes all C&IT curricula with local business cases and emphasis on technology business models

Implement After School and Neighborhood Internet Programs that close the Digital Divide (e.g. Chilean model)

R1

R2

R3

E1

E2

E3


30

POTENTIAL SOURCES OF JOB GROWTH IN C& IT IN THE LOCAL MARKET

Telecom

Software development & maintenance of systems

E-government

Pursuit of initiatives in telecom de-bottlenecking (G7), software development (B1), and increasing local government IT consumption (G8) will deliver the benefits of an increased local C&IT market

Examples

Increased wireless, fixed line, and internet penetration:• Support• Installation and maintenance• Sale of equipment and services

Increased usage of IT in local businesses, and higher PC household penetration• Software customization or application

enhancement• Systems management (Data and network

centers)• Help desk, installation and services

Increased government’s consumption of local IT products and services• Software application development• Training, support• Help desk, installation and services


31

• Familiar – We have experience - a good fit. Outcome –should we succeed - can be predicted. Major risk is execution.

• Unfamiliar – We do not have relevant experience, but we know the initiative has succeeded elsewhere. Gaining knowledge could be the initiative itself. Risk in successfully gaining knowledge as well as execution.

• Uncertain –Outcome is not knowable - does not depend on our actions. However, given the potential impact, we take steps to prepare ourselves –gain and create knowledge – to stay in the game until uncertainty is resolved

• 1-2 years - Fulfill current needs for employment, support existing players in the sector

• 3-5 years - Create medium-term growth• 5 years + - Investments to gain familiarity in potentially big ideas

• Evaluate the potential return of the initiative to Puerto Rico in economic terms (e.g. jobs, contribution to GNP, wages)

• Some initiatives are impossible to quantify economically – but a reasoned, subjective assessment (low, medium, high) is necessary to prioritize

• Synergies between initiatives will influence the size of the impact

Risk – What is our degree of familiarity?

Timing – When do we expect

payoff?

Size – What is the economic

impact?

THE INITIATIVES WERE THEN ASSESSED ALONG THREE DIMENSIONS


32

1-2 years 3-5 years

Uncertain

Unfamiliar

Familiar

Meet current expectations

Create medium-term

growth

Generate portfolio of high-

return options

2 3

6

8 9

1

4

7

G3S-M

B4

5

Timing

Ris

k

Business opportunities1. Software development/outsourcing2. Software and web localization3. Shared services centers4. Contact centers5. Pharma process outsourcing6. Healthcare IT7. Financial/insurance off-shoring8. Niche electronics mfg. (I.e. medical,

defense)

Government1. Performance-based promotion2. Promotion of existing companies3. Performance-based funding4. Engage PR talent abroad5. C&IT Promoexport6. Reduce start-up costs7. Debottlenecking barriers to

telecom/broadband8. Incentivize local C&IT consumption9. Promote early stage investing

Research1. Center of Excellence2. Link R&D fund to economic dev.3. C&IT incubator

Education1. Realign/strengthen C&IT skills2. Entrepreneurial curricula3. Neighborhood Internet access

Size of circle indicates potential jobs/economic growth at stake

ASSESSMENT OF OPPORTUNITIES AND INITIATIVES FOR C&IT ROADMAP

E1E3

G2 G5

R3

B6

G1

G8

B3

B2

B1

G4 G9 (?)

B5

B7

G6

R2

R1B8

E2

G7M-L


33

Four initiatives/ opportunities selected based on:• Potential for impact• Unlikely to be successful

without extraordinary effort• Address most visible issues

FOUR PRIORITY INITIATIVES WHERE SELECTED FOR FURTHER DEVELOPMENT BY THE WORKING TEAM

Advisory Board

Steering Committee

23 initiatives and opportunities to accelerate the growth of the sector

• 12 Essential initiatives for further prioritization

Input from C&IT Community


34

1-2 years 3-5 years

Uncertain

Unfamiliar

Familiar

Meet current expectations

Create medium-term

growth

Generate portfolio of high-

return options

2 3

6

8 9

1

4

7

G3S-M

B4

5

Timing

Ris

kASSESSMENT OF OPPORTUNITIES AND INITIATIVES FOR C&IT ROADMAP

E1E3

G2 G5

R3

B6

G1

G8

B3

B2

B1

G4 G9 (?)

B5

B7

G6

R2

R1B8

E2

G7M-L

Highest priority initiativesRelated to highest priorityNot related to priority init.

Business opportunities1. Software development/outsourcing2. Software and web localization3. Shared services centers4. Contact centers5. Pharma process outsourcing6. Healthcare IT7. Financial/insurance off-shoring8. Niche electronics mfg. (I.e. medical,

defense)

Government 1. Performance-based promotion2. Promotion of existing companies3. Performance-based funding4. Engage PR talent abroad5. C&IT Promoexport6. Reduce start-up costs7. Debottlenecking barriers to

telecom/broadband8. Incentivize local C&IT consumption9. Promote early stage investing

Research1. Center of Excellence2. Link R&D fund to economic dev.3. C&IT incubator

Education1. Realign/strengthen C&IT skills2. Entrepreneurial curricula3. Neighborhood Internet access

Prioritization based on inter-linkages between initiatives


35

TOP INITIATIVES SELECTED ARE INTER-RELATED WITH OTHERS

Selected initiativesSelected initiatives

• Performance based promotions new and existing companies

• Contact centers• Shared Service Centers

• Link univ. research to industry needs, Computing center of excellence, C&IT incubators, software dev. And localization

• Remove barriers to telecommunications development (e.g. quality, access, investment)

• Niche manufacturing (medical and defense electronics)

• Performance based promotions new and existing companies

• Contact centers• Shared Service Centers

• Link univ. research to industry needs, Computing center of excellence, C&IT incubators, software dev. And localization

• Remove barriers to telecommunications development (e.g. quality, access, investment)

• Niche manufacturing (medical and defense electronics)

Major focus (initial)Major focus (initial)

• Software dev and localization• All other business opportunities• C&IT Promoexport• Incentivize local IT consumption

• Incentivize local IT consumption• Early stage investing• Realign C&IT curricula with

industry needs• Entrepreneurial skills dev.

• Shared Services centers• Contact centers• Healthcare IT• Financial and Insurance off-

shoring

• None other within roadmap; Essential to sustain thousands of legacy electronic manufacturing jobs

• Software dev and localization• All other business opportunities• C&IT Promoexport• Incentivize local IT consumption

• Incentivize local IT consumption• Early stage investing• Realign C&IT curricula with

industry needs• Entrepreneurial skills dev.

• Shared Services centers• Contact centers• Healthcare IT• Financial and Insurance off-

shoring

• None other within roadmap; Essential to sustain thousands of legacy electronic manufacturing jobs

Related initiativesRelated initiatives

PRIDCO Promotions

PR Research and Commercialization Alliance (PRRCA)

Telecom de-bottlenecking

Electronics manufacturing


36

PRIDCO MUST CONSIDER ITS CRITICAL PROMOTION (SALES) FUNCTION ALONG THE TOP 5 LEVERS

2.Efficient coverage

3.Effective

Selling skills

4.Disciplined

sales process

Winning sales

(promotions)model

1.Marketing Strategy

(Segmentation/Value Proposition)

5. Rigorous performance management

• Do I have the right mix of skills/ expertise in the sales team to deliver ROI-focused proposals for my customers?

• Is there a significant gap between top/ average rep performance? Do I understand key drivers ?

• Do I know what right level/mix of resources is needed to cost effectively serve industry segments?

• Have I fully leveraged new channels/ technologies to reduce sales costs?

• Are reps spending>50% of time onjob-generatingsales activities?

• Do I understand which segments are most important today and in the future? Do I know what my top 20 accounts are and their evolving needs?

• Is my customer value proposition truly differentiated from competitive offerings?

• Am I measuring and coaching on the right performance metrics• Am I attracting and retaining top performers• Are managers spending > 60% of time actively managing the pipeline

and coaching reps?• Is compensation structured to encourage desired behaviors?

• Am I managing incentives (e.g. grants, loans, subsidies) explicitly?

• Do I have the right investments in sales tools and training to maximize effectiveness?

• Do I understand my sales pipeline (I.e. drop out rates, bottlenecks, win-rates, etc.) ?


37

PRIDCO PERFORMANCE BASED PROMOTIONS

Description:• Applying sales and marketing strategy

discipline to the promotion of local and foreign companies in P.R.

• Hiring/ training promoters to identify, target and win C&IT jobs for P.R.

Highlights from report:• Evaluated PRIDCO’s promotions function

in the context of competition for global investments and concluded that:– PRIDCO promotions processes are not

consistent with needs for C&IT– Promotions organization lacks

necessary skills to attract and promote C&IT sector

• Developed improvement model based on sales effectiveness methods

• Developed high level work plan for pilot

• Potential impact: Enormous - over 30,000 direct job potential by exploiting C&IT sector alone

Short term milestones Responsible

Measures of successInterim• # of promoters, man-hours committed exclusively to

C&IT promotion• # of C&IT companies in sales pipelineEnd-goal• # of jobs added in C&IT• $ of jobs added in other sectors using new skills

Committed to run a pilot with at least two promoters with some external assistance for three months – min.

Distinct value propositions developed for priority sectors (contact centers, shared svc.)

Several companies in sector contacted and a full round of feedback –adjustment completed

First company in C&IT signs contract to move to PR

DDEC/ PRIDCO

PRIDCO / Promotions

PRIDCO Promotions

PRIDCO Promotions

FOR DISCUSSION


38

RESEARCH & COMMERCIALIZATION ALLIANCE

Technological Solutions

and SpecializedIncubators

Interamerican UniversityC&IT Research MemberInteramerican UniversityC&IT Research Member

Sistema Univ. Ana G. MendezC&IT Research MemberSistema Univ. Ana G. MendezC&IT Research Member

Polytechnic University:C&IT Research MemberPolytechnic University:C&IT Research Member

University of Puerto RicoC&IT Research MemberUniversity of Puerto RicoC&IT Research Member

Focus onManufacturing

Electronics

Focus one-Business

(incl. eGovernment)

Focus onFinancial/Insurance

IT Services

Focus onHealthcare IT

Systems

Mobile / Wirelesstechnologies

Web / E-Commercetechnologies

Network / Securitytechnologies

Transaction / Databasetechnologies

Internet 2HPCF – UPR


39

PUERTO RICO RESEARCH AND COMMERCIALIZATION ALLIANCE

Description:• Government funded, industry and

university led• Funds applied for research with

technology commercialization potential. Its funds, attract other sources (e.g. federal, university, investors) to fund infrastructure, and expenses. As alliance secures continuous legislative funding, it invests in infrastructure and attraction / retention of world-class scholars potentially becoming similar to GRA. (Georgia Research Alliance)

Highlights from report:• Assessed P.R.s academic research

activities as deficient in amount of funding, focus of efforts, and commercialization performance

• Describes successful model (GRA) for emulation and established link with GRA leaders

Potential impact: Very large, far-reaching –tough to quantify (GA attracted $1.4b, >2000 new high tech jobs)


Measures of successInterim• # qualified proposals submitted to PRRCA• $ in funding attracted (leverage)End-goal• # of local startups and local jobs created• $ in industry / investor funds invested• # of patents submitted

Complete and deliver proposal to PRIDCO Board

Formalize PR RCA organization, elect leadership

Complete process to select target areas of research funding based on existing competencies

Fund first project(s) - potentially to include UPR M CISE facility

Submit proposal for legislative continuous funding

Founding group (S&T, AGM, UPR

PRRCA, S&T

PRRCA and S&T

PRRCA

PRRCA /PRIDCO

FOR DISCUSSION


40

THERE ARE RESIDUAL ISSUES BEYOND INFRASTRUCTURE CAPACITY

C&IT sector growth needs• Infrastructure

deployment (e.g. advanced services)

• Low prices• High service

levels

Can service standards meet C&IT requirements• Speed of provisioning? (e.g. permits, backlog)• Reliability? (e.g. svc. outages due to cable

cuts)• Responsiveness? (e.g. customer svc.)• Coverage outside metro areas?

Regulator

Competitors Consumers

Is the JRT proactively shaping industry structure? (e.g. how many facilities-based competitors will max. benefits from competition?)

Is current regulation and control sufficient?• Is there sufficient

coordination and leadership in influencing economics? (e.g. Tariff, muni taxes, RoW, re-balancing)

• Are there sufficient skills and legislative support to enforce interconnection agreement?

• Is the JRT Setting and monitoring high QoS standards? Are consumers

aware of recent improvements in telecom service?

* JRT- Junta Reglamentadora de Telecomunicaciones – P.R.s Public Utility (telecom) CommissionSource: Interviews; Team analysis

Potential bottlenecks

Other Gov.agencies

How can better coordination among gov. agencies be achieved to improve industry economics and QoS?

Is there sufficient coordination between development agencies and telecom providers

to effect timely infrastructure

deployment and repair?


41

DE-BOTTLENECKING TELECOMFOR DICUSSION

Description:• A workgroup of leader volunteers from

the service providers, customers, and government seeking to identify and eliminate barriers to increased quality, access and investment in the telecommunications sector

Highlights from report:• Mismatch between service standards and

customer expectations (e.g. slow provisioning, outages due to cable cuts, poor responsiveness, sparse coverage outside metro areas)

• Lack of reliable information on service standards and performance

• JRT is legally constrained from proactively shaping industry structure

• Lack of coordination among gov. agencies (e.g. ARPE, DTOP, AEE, CRIM) to achieve a positive impact on telecommunications

• Potential impact: Very large – strongly linked to 4 business opportunities identified ( 12,000 job potential)


Measures of successInterim• # of promoters, man-hours committed

exclusively to C&IT promotion• # of C&IT companies in sales pipelineEnd-goal• # of jobs added in C&IT• $ of jobs added in other sectors using new

skills

Public forum with top telecom stakeholders at Sillicon Reef 2002

Workgroup meets with PRIDCO planners to identify sites for fiber deployment into selected industrial parks – Investment follows

Workgroup meets with selected agency leaders to identify policy coordination opportunities – top priority changes follow

CNE

OGP / JRT

OGP/JRT


42

SUCCESSFUL ELECTRONICS MANUFACTURING IN PUERTO RICO FOCUSES ON HIGHER VALUE PRODUCTS

High profit margins

High mix

High value to weight ratio

Description

• Highly profitable products benefit most from low tax rates. (Company must be a multi-national to take most of advantage of CFC* exemption)

• Local expertise is good at flexible, customized, high quality mfg. –experienced and skilled labor and professionals are readily available in the island

• Lower shipping costs relative to total delivered cost of product (critical element when competing vs. Continental U.S. locations)

Existing product examples

• Inkjet cartridges; EDP accessories for HP to resell within its network

• Security/monitoring equipment –1000 SKUs in one plant

• Memory cards, inkjet cartridges, electronic security tags

* Certified Foreign Corporations do not pay home-country taxes until they repatriate profitsSource: Interviews with local manufacturing leaders; Team analysis


43

MEDICAL AND DEFENSE ELECTRONICS ARE HIGHER VALUE PRODUCTS WITH CHARACTERISTICS PARTICULARLY COMPATIBLE WITH PR

* Estimate based on gaining 5% of potential market by 2005, $84,000 rev. per employee averageSource: Electronic Trend Publications; McKinsey interviews

• The medical equipment market is expected to grow rapidly; the products have high margins and there are few CMS players in this market

• Requirements to compete – Demonstrated capabilities with high-mix/complex products– FDA certification– Ability to provide ready supply

• There are relatively high barriers to entry (e.g., FDA certifications, technical complexities, low volume), thus it may be easier to sustain a niche business strategy over the long run

• Outsourcing has long been dormant in defense due to long product cycles, low incentives to cut costs, and general OEM bias against outsourcing.

• The outlook is improving, as defense spending is expected to increase, cost will be increasingly scrutinized, and OEMs are increasingly open to outsourcing

• There are relatively high barriers to entry (e.g., government/OEM certifications, technical complexities, low volume), thus it may be easier to sustain a niche business strategy over the long run

Potential: 6,000 jobs*

Potential: 3,500 jobs*


44

NICHE, ELECTRONICS MANUFACTURING

Description:• Pursuing electronics manufacturing

opportunities where P.R.’s unique characteristics can best be employed

• Improving assets and capabilities to serve existing

Highlights from report:• Identified two high potential niches that

are growing quickly, match local competencies, and have an opportunity for P.R. to provide a unique, sustainable advantage– Medical electronics (CMS)– Defense electronics (CMS)

• Identified actions to improve competitiveness– Improve design education programs –

more practical /. internship work– Decrease supply chain costs

Potential impact: 9,000 direct jobs within 5 years


Measures of successInterim• # of man-hours dedicated to pursuing opportunities in

sector• # of companies in conversations to grow niche electronic

operations locallyEnd-goal• # of jobs added in electronics niche mfg. • Total value/ value added of exports in sector

Committee started to steward search for opportunities

Business cases prepared for one high priority opportunity (e.g. imaging medical electronics)

Sales kit completed for international and local business promotion

Assessment of ability of existing mfgs. to compete

PRMA

PRMA / PRIDCO

PRIDCO

PRMA

FOR DISCUSSION


45

Horizon 1Extend and defendexisting C&IT sectors

Horizon 2Build emergingopportunities

Horizon 3Create viable options for future

Jobs

Shore up competitive potential and unlock remaining potential in early advantaged sectors

Build capabilities and fuel growth in early advantaged C&IT sectors

Identify and nurture future options in potential businesses

Time

ROADMAP THEORY - THINKING ACROSS GROWTH HORIZONS

Convert

Convert


46

C&IT CONCEPTUAL ROADMAP

Set the stage – Make P.R. attractive location for C&IT

Build momentum -Explosion of world class C&IT professionals and businesses coming to P.R.

Achieve competitive advantage -World class knowledge and talent in select C&IT sectors

• De-bottleneck telecom barriers

• Initiate Government/ Private Sector/ University partnership for agreement on research, curricula and commercialization

• Launch account teams at PRIDCO (existing & future companies)

• Promote early advantaged sectors

• Red tape reduction

• Account teams fully staffed and trained

• Initial niche contract manufacturers operating and growing

• International companies outlocating and outsourcing to P.R

• Knowledge and skills transfer to locals

• New research projects underway

• Account teams focused on managing existing clients

• New patents in P.R. explode

• P.R. is preferred C&IT destination in select sectors

• Performance based management of promotion and economic development efforts

• Consistent policy across administrations

• Partnership led, government supported efforts

• Infrastructure investments (e.g. equipment, labs, wired buildings)

• Performance based management of promotion and economic development efforts

• Consistent policy across administrations

• Partnership led, government supported efforts

• Infrastructure investments (e.g. equipment, labs, wired buildings)

Key issues to address


47

C&IT ROADMAP OF INITIATIVES

• PRRCA has world class competence in select areas

• PRRCA C&IT startups funded

• Significant increase in C&IT grads focused on needs of local industry

• Internet penetration is comparable to less developed US states

• PRRCA operational (projects, funding, international scholars, etc.)

• Business plans from PRRCA to early stage investors

• C&IT curricula reformed

• Significant increase in Internet users

• Research alliance(PRRCA) Computing Center of Excellence kickoff

• Early stage investors brought into PRRCA

• C&IT Curriculum update

• Neighborhood internet access launched

• PRIDCO promotions focuses on customer retention and new C&IT industries

• Significant local C&IT being exported

• PRIDCO promotions reform complete

• Telecom sector agreements reached

• C&IT critical element of Promoexport

• Significant increase in Gov consumption of local C&IT with rights to export retained

• PRIDCO promotions pilot

• Telecom sector strategy & change agenda

• C&IT Promoexport introduction

• New incentives for Gov consumption of and promotion of local C&IT

• Higher value added opportunities available (Software development, Pharma process outsourcing, other)

• Niche manufacturing in full swing -supporting the medical devices cluster and the plastics sector

• Adjacent opportunities (e.g. Service Centers, SW localization, financial off-shoring)

• Early advantaged sectors (e.g. Call Centers)

• Existing skills related opportunities initiated (e.g. Healthcare IT, niche manufacturing)i

Business opportunities

Government

Research and Education

Set the stage

Build momentumAchieve competitive advantage


48

MAIN MESSAGES










49

C&IT ROADMAP IMPLEMENTATION

Objectives 1. In the short term, foster the creation of a significant number of jobs in a promising sector

2. Facilitate the growth and emergence of local C&IT businesses

3. Facilitate the process of attracting C&IT businesses to Puerto Rico

4. Spark collaboration between industry and universities to build the knowledge base for C&IT innovation in the future

To be highly focused in the implementation of the C&IT Roadmap's initiatives in order to have an immediate and lasting impact in the C&IT sector and thus the economic development of the island through a concerted, multi-sector effort

Mission


50

SEVERAL ALTERNATIVES FOR ROADMAP LEADERSHIP AND OPERATION MODEL WHERE EVALUATED

What is the best organization to provide roadmap leadership?

Existing independent (e.g., PRTEC, CNE)

Stand-alone

Within Government (DDEC/OGP)

OR


51

CRITERIA FOR SUCCESSFUL ORGANIZATION*Speed

Focus

Organization

• Build on momentum reached to date

• Fast decision–making process

Continuity• Leadership at several

levels can pursue a consistent path regardless of political changes

• Full time dedicated resources

• Initiatives developed by those closest to problem and decision-makers

• Priority is on implementation

• Organization pursues acceleration of C+IT sector exclusively

Wide representation

• Organization that is accessible to all parties

• Leadership that is representative of the members of the sector

• Decisions can be made without disproportionate influence from any sector

*Based on profiles of 10 regional economic development organizations in the U.S.


52

THE ADVISORY BOARD DECIDED ON A SHORT AND LONG-TERM SOLUTION FOR THE ROADMAP’S LEADERSHIP

• Takes advantage of existing commitment from DDEC and OGP, communicates urgency to all other organizations involved

• Allows uninterrupted support from PRIDCO S&T office and OGP

Initial effort with DDEC and OGP leadership and a project manager hired full-time; leadership to migrate to an independent organization within two years to ensure continuity to effort as prescribed by Advisory Board


53

DDEC/OGP LEADERSHIP IS THE BEST SHORT TERM ALTERNATIVE TO LEAD THE C&IT ROADMAP

DDECUnder

Secretary or OGP CTO

Roadmap project

manager

C&IT Working teams

DDEC/OGP assumes responsibility for driving initiatives to completion. Works in cooperation with multiple government, academic, and private entities. Could potentially become a separate subsidiary.

• DDEC/OGP solution may need to be temporary. Continuity could be compromised with change in administration and DDEC leadership therefore transition to permanent organization is built-into plan

• Leverage DDEC’s and OGP's enthusiasm to get resource(s) dedicated to roadmap implementation. Use DDEC and OGP influence to facilitate fast decision-making

• DDEC/OGP must make concerted effort to involve C&IT stakeholders. The project manager would have dotted-line reporting to the C&IT Advisory Board

Highlight criteria

Continuity

Speed

Wide representation

• Secretary, DDEC• Director, OGP• President PRTEC• C&IT Executive (e.g., Cervoni)• C&IT Entrepreneur (e.g., Luis Rivera)• University leader (e.g., Velez-Arocho)

Strategic Team

(Cantero)

OGP, PRIDCO, CNE, PRMA, PRTEC, others (e.g. PRCC, research expertise, rep. Voc/technical schools

Project mgr quals:Driven self motivatedStrong problem solverArticulate, capable of defending integrity of recommendationGood convener of meetings and opinionsReady access

Steering Committee


54

THE C&IT ROADMAP ORGANIZATION WILL EVENTUALLY TRANSITION INTO A NON-GOVERNMENT, PERMANENT ORGANIZATION SUCH AS PRTEC/CNE

Board of Directors

C&IT Asst. Director

C&IT Advisory Board

Executive Director

Added

Other initiatives

within chosen organization

The existing organization’s board would oversee the C&IT effort – the board should be representative of C&IT interests

Dedicated to C+IT initiatives

C&IT Working teams

The executive director of the existing organization would gain an additional project manager to push C&IT initiatives

• An independent, organization can provide continuity across changes in administration

• The independent organization can make decisions quickly (e.g. many important players and influencers in the sector – HP, PRTEC, UPR, PRIDCO are in PRTEC)

• The independent organization should reach a wider audience within C&IT’s diverse industries and across political lines

• Care must be taken to ensure that the chosen permanent home can dedicate substantial “mind share” to the C&IT cause

• Funding for a full-time, dedicated C&IT project manager would have to be secured before handing-off responsibility from DDEC/OGP to the establish independent org.

Design criteria for success

Continuity

Speed

Wide representation

Focus

Organization


55

ROLES IN THE ORGANIZATION

Organization LeaderOrganization Leader

• Provide overall vision and leadership to the roadmap effort and be actively involved in assisting the organization in achieving implementation goals

Advisory BoardAdvisory Board

• Offer guidance and governance over strategic, financial and operational issues and work closely with the project manager to facilitate execution

Work TeamsWork Teams • Collaborate with all key parties to fully implement C&IT Roadmapinitiatives

Project ManagerProject Manager

• Coordinate day-to-day operations, monitor and follow-up,facilitate collaboration and barrier elimination, communicate (disseminate information and progress), represent (interface with other organizations on Roadmap's behalf) monitor environment changes for possible recommendation on a periodic environment review

Role description

(Steering Team, Board of Directors, or Department Head depending on chosen model)


56* Sponsor for Roadmap Effort

THE PROJECT MANAGER WILL LEVERAGE EFFORTS ALREADY UNDERWAY

Board with academia, government, and private enterpriseAffiliated emerging clusters: computer & IT, e-business, biotechnology, etc

Emerging group with academia, municipal governments & private enterprise support for Caguas – led regional development

Multisectorial group with representatives from island’s major associations/groups (PRMA, PRCC, venture capitalists, TEPR, academia, entrepreneurs, PRTEC, etc.)

Private, non-profit, non-partisan PR corporation that develops economic development policies

Description

PRTEC*

INTECO

Alianza (PRSTA)*

CNE*

Association of technology entrepreneurs (including C & IT)

Just constituted group of local computer software developers and hardware manufacturers

Group of individuals and entities from private enterprise, government and academia

Professional group of computer engineers within the Colegio de Ingenieros y Agrimensores de PR

Description

TEPR

Emerging Technology Work Group/PRCC

Internet Society (ISOCPR)

IICOM/CIAPR

NOT EXHAUSTIVE


57

EXECUTION WILL DEPEND LARGELY ON MOTIVATED CHAMPIONS SUPPORTED BY THE RIGHT ORGANIZATIONS

Business opps.Business opps.

• PRIDCO - Promotions• PRIDCO - Facilities• PRIDCO – Science and Technology• Expert supporters from private

industry• PRTEC

G1 PromotionG1 Promotion

G3 FundingG3 Funding

G4 Talent abroadG4 Talent abroad

G5 IT PromoexpG5 IT Promoexp

G6 Startup costsG6 Startup costs

• PRIDCO - Promotions

• PRIDCO – Science and Technology

• CNE• PRIDCO• PRTEC

• Fomento Comercial/Promoexport• PRCC – Emerging Technology

Group• Software Developers' Group (Arroyo)

• OGP

G7 TelecomG7 Telecom

• JRT• CNE

G8 Local IT consump.G8 Local IT consump.

G9 Early invest.G9 Early invest.

R1 – R2 ResearchR1 – R2 Research

R3 IncubatorsR3 Incubators

E1 C&IT curriculaE1 C&IT curricula

• OGP• TERP• Fomento Comercial/Promoexport

• Venture Capitalists• PRIDCO

• UPR – Mayagüez• PRIDCO – Science and Technology

• Fomento Comercial/Promoexport• DDEC• Software Developers' Group (Arroyo)• TEPR

• Colegio de Ingenieros y Agrim. de Puerto Rico

• Consejo de Educación Superior• UPR System

E2 Entrepre-neur skillsE2 Entrepre-neur skills

E3 InternetE3 Internet

• Consejo de Educación Superior• Universidad Polítécnica de Puerto

Rico• TERP

• CNE• Internet Society• DE

Supporting cast of organizations


58

COMMUNICATIONS PLAN SUMMARY

GovernorGovernor

Objective ChannelStakeholders

• EDC meeting• Get government senior level commitment

Agency HeadsAgency Heads

LegislatureLegislature

Industry LeadersIndustry Leaders

TelecomsTelecoms

AcademiaAcademia

ResearchersResearchers

MediaMedia

• Achieve buy-in to overall plan • Cocktail, roadshow, personal

• Stimulate effective public policy drafting • House and Senate meetings, personal

• Gather long-term commitment to Roadmap • Roundtables, HiWire, AB member calls

• Accelerate telecom sector development • Roundtables, CNE and JRT meetings

• Create sense of urgency for skilled workforce. • Roundtables and ComputerWorld

• Link research to economic development • Roundtables and expert database

• Involve entire community in effort • Seminars, interview with AB and PM

AbroadAbroad • Consider Puerto Rico as C&IT destination • Trade mags and econ analysts

General PublicGeneral Public • Transmit importance of C&IT to econ dev • Major newspapers and PBS


59

IMMEDIATE IMPLEMENTATION RESPONSIBILITIES AGREED UPON DURING FINAL DISCUSSION

Responsibilities

Project management

Sector strategies• Electronics Manufacturing• Call Centers• Healthcare IT• Shared Service Centers

Promotion and sales

Industry and research coordination• PRRCA• Telecom Debottlenecking

Raise to Governor’s agenda

Execution of communications plan

ASSIGNED RESPONSIBLE

• Hormaza to follow-up

• Hormaza, project manager to follow-up potentially hire outside experts to help with strategies

• Hormaza to follow-up – need support from Prieto and or Watlington

• Garcia-Feliu – he needs official request sent to President of SUAGM for his time

• JRT/OGP – CNE as convener• OGP-Maldonado/Acosta

• Project manager with help from PRIDCO

FOR DISCUSSION


60

NEXT STEPS

• Identify interim project manger to host implementation-focused meetings

• Brief to Cantero-Frau, Melba Acosta, and Jimenez Juarbe to secure support for initial hiring

• Recruit project manager

• Project manager to host implementation-focused meetings with working teams

• Launch PRIDCO promotions pilot discussion with key PRIDCO promotion leaders

• Coordinate assignment of sector strategies

• Follow up Advisory board meeting

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