These past 3 weeks, I had the opportunity to visit four countries in CEE namely, Romania, Hungary, Czech Republic and Poland. It was quite an interesting trip that was filled with a array of meetings with lots of different stakeholders and constituencies within the value chain of Global sourcing. While this was a three week trip, and I felt that I got an updated 2010 view of the region. There is a great deal more to research and more input needed.
I participated on individual visits with Shared Service Centers, Centers of Excellence, vendor locations, workshop sessions with buyers and sellers (vendors), technology park visits, meetings with Govt officials and Trade Associations.
Clearly the region and the entire European economic landscape is experiencing lots of change and unrest. Hungary just changed their government and everyone is braced for the unveiling and action plan for a new vision. Poland recently lost a significant number of leaders to a plane crash. Romania is a having protests in the streets related to the proposed Austerity decrees. And the list goes on as it relates to exchange rates etc. And right in the middle of the trip, there was a major incident with the Israeli’s in Gaza.
Amidst all of this change and shift, it was great to see a very enthusiatic group of stakeholders eager to take advantage of new disruptive technologies whether its cloud or SaaS or deliver core work within various functional areas of an enteprises.
The dilemma I found was that it was very hard to define a clear concise and definitive “brand” or “value proposition” that has been created to help differentiate each of these specific locations. Everyone talks about India and China — and in fact, my previous post a few days ago has had a very high hit rate. I am very curious as to the responses to this post.
In my presentations to the stakeholders in the region, I felt that one slide particularly resonated with the audience and creaeted lots of discussion regarding the future of the region (see a copy below). The point of this slide is that I think that eventually, the global market will undergo an important shift from pure labor based driven models for value to Intellectual Property (IP) driven models. If this does come to fruition, then countries in this region with populations of 10 or 20 million can play a significant role because this business model is not about scale rather about IP. More importantly, the profit model in an IP driven business model is not about cost but rather about multiples of value.
Please chime in with Thoughts, Comments, Ideas.