A Contribution to the Global Measurement of the ICT Sector: ALETI Census

1. A Contribution to the Global Measurement of the ICT Sector: ALETI Census November 13th, 2013GPATS 2013São Paulo – SP - Brazil

2. Initial Diagnosis • In-depth indicators about the IT Sector do not exist • Few existing data do not allow for comparison among geographic areas, both inside the country and internationally • Governments’ data: • Focus just on revenues and employment • Due to being derived from tax and labour declarations • Global Market Research Companies: • Focus on Sales of ICT products and services • Local ICT industry covered only partially • Mostly to find business partners for huge global players First Stated in writing during Assespro Nacional Strategic Planning developed November 2010

3. Our Goals • Deep Understanding of the ICT Sector • As has never been available • Be able to evaluate Public Policies • When being developed/proposed by governments • Monitor their impact over time when implemented • Knowledge and action in benefit of associations´ members • Benchmarking • Matchmaking • Business Opportunities Generation

4. Our Strategy • Totally focused on Producers/Resellers of ICT Goods and Services • Questionnaire Size • Bigger than any commercial survey • Doesn't impact on effort to push for participation • Web data collection • Respondents: Company owners and Chief-Level executives • By going through Associations, direct access to them • Warrants high quality of data collected • Data Collection gets Repeated every year • Allow for development of historical series

5. Pilot Round • Assespro Nacional’s Board • Structured the project during 2011 • To be run only in Brazil, as a ‘pilot project’ • But planned to be expanded to other countries • Called “Censo Assespro do Setor de TI” • First round of data collection & analysis during 2012

6. Public Policy: A practical case • Brazilian Science and Technology Ministry launched “TI Maior” (‘Bigger IT’) program Aug/2012 • One of proposed measures: • Develop a new national certification process (“CerTICs”) • Aimed at certifying “local development of innovative products” • Certified products would receive 25% of margin of preference for procurement by the Brazilian Federal Government • Details not known during Census preparation, but able to evaluate: • Which companies would benefit • Real size of market impact

7. CerTICs evaluation with2012 Census data

8. Going Multinational • ALETI Indicators Working Group • Worked all of 2012 • Harmonizing with other national initiatives • Results approved by ALETI Assembly Peru (Jan 2013) • Sponsoring companies: • SurveyMonkey (www.surveymonkey.com) • Contributes with survey software • MBI (www.mbi.com.br) • Data Handling & Chart Preparation • Zero Cost to IT Associations and participating companies

9. The 2013 data collection ‘war’ • From Aug 1st to Oct 21st, 2013 • 849 participating companies • From 17 countries • 575 complete questionnaires • 555 of them selected for analysis • Over 53 thousandindividual answers • 96 answers per company in average • Minimum: 61 • Maximum: 213

10. Census' Contents (I) • Markets Serviced • Vertical Segments • Horizontal Markets • Human Resources Available • Software Developers • Other ICT professionals • Dedicated to R&D&i • Marketing and/or Sales • Other company areas • Total workforce size • Human Resources Education • Certified Professionals • University Degree • Post Graduation • Geographical Distribution • Country where company is located • Headquarters' States/Province • Offices in other States/Provinces • Companies Offer • ICT Products and Services • Technical Platforms • Operating System Types • Database Management System Types • Programming Languages Types • Global Products Integration

11. Census' Contents (II) • Business Strategies • Recurring Revenues • Contracts covered by SLA agreements • Geographic Dispersion • Companies Certifications • Intellectual Property Protection • Joint Ventures & Formal Partnerships • Participation in Trade Associations and Social Organizations • Human Resources Evolution • Hiring during the last 12 months • Leaving and fired during the last 12 months • Idle capacity • Feasible and Possible Short term Hiring • Workforce Variation over the last 12 months • Technical Capacity Maintenance

12. Census' Contents (III) • Innovation • Innovation Types Adopted • Interaction with Clients & Universities • Knowledge Management & Sharing • Buying & Selling of Intellectual Property • Usage & Release of Open Technology • Profits through Innovation • Revenue Share of new Products • Internationalization • Own offices per continent • Revenues & variation in exports • Target Countries • Foreign Travel • Export Channels • E-Commerce, own offices, clients & resellers

13. A LONG list! All subjects equally important Census' Contents (IV) • R&D • In Use R&D Subjects • Potential R&D Subjects • R&D Investment • Finance • Capital Sources Used • Capital Sources to be Used • Amount of Capital Obtained • Amount of & Variation in Revenues

14. Designing Answers • Usage of ranges instead of values • Easier to get answers • Range averages are more precise • Based on standard classification systems • E.g. vertical markets, R&D subjects • Need to be simultaneously: • Sufficiently detailed to allow for matchmaking • Structured to be grouped during analysis • In case specific answers are not selected frequently enough to be statistically significant

15. Cross Analysis • Understanding relations between apparently unrelated aspects • Frequently reveals ‘pearls’ of wisdom • Let’s see TWO examples: • Which size of companies are the most aggressive innovators? • How does R & D budget relate to the adoption of open source technologies?

16. Aggressive Innovation vs. Companies’ Revenues

17. R & D Budget vs. adoption of open source technologies “Love it or leave it” Homogeneous distribution

18. Subset Analysis • Based on considering subset of companies with a specific answer to a specific question • Examples: • Are revenues of companies betting on mobile platforms higher or lower than the sector’s average? • Do companies offering Software as a Service export more or less than average?

19. Company Revenuesfor Mobile Platform Producers

20. Level of Exports for SaaS Producers

21. Iberian Peninsula7,2% South Cone11,0% Brasil63,4% North Cone12,4% Geographic Grouping Portugal España Mexico and Central America5,9% An example of grouped analysis

22. Level of Exports

23. Interaction with Universities as an Innovation Strategy

24. Operating Systems

25. Census’ Data Sharing Policy • Because of: • Huge number of possible analysis • Much bigger than IT associations resources • Wider usage of data brings wider recognition • Census database is shared with interested: • Governments • Universities • Research Centers • International and Multilateral Organizations • Plus other non-profit organizations • Free of Charge • We just ask for the signature of a simple MOU

26. Next Goals • Grow number of participating companies • During each annual rollout • Grow number of participating countries • Including new geographic areas WITSA is our natural ‘network hub’

27. Thank you! • WITSA Board Member (2012-2014)ALETI President (2011-2013)Assespro Nacional Vice-President (2011-2014)Assespro São Paulo President (2007-2010)Assespro São Paulo Director (2003-2006)Columnist at Information Week Brasil (since 1999)M.Sc. In Computer Science at São Paulo University (USP) - 1992Founder & CEO at MBI – since 1990Former University Professor in Computer Science (USP) - 1988-1998Working in IT since 1979 Roberto C. Mayerpresidente@aleti.orgroberto.mayer@assespro.org.br