Brazilian Software: On a Path Towards a World-Class Industry? · PDF fileBrazilian Software: On a Path Towards a World-Class Industry? ... Datasul UK 12,000 Baan BR ... On a Path Towards

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ello

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nive

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Bra

zilia

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On

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th T

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lass

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stry

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With

AN

TON

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OTE

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tex)

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orld

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crip

tions

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he d

evel

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ent o

f the

indu

stry

The

deve

lopm

ent o

f the

Bra

zilia

n So

ftwar

e M

arke

t

The

Cur

se o

f the

Dom

estic

Mar

ket

The

Prom

ise

of th

e do

mes

tic m

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t

Con

clus

ions

2

THE

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RN

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ON

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MA

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PO) e

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ll m

anuf

actu

ring

Ath

reye

, 200

3Va

rious

Sou

rces

7

Und

erst

andi

ng

The

Bra

zilia

n So

ftwar

e In

dust

ry

Look

ed a

t His

tory

and

Con

text

Inte

rvie

wed

Lea

ding

Loc

al F

irms

and

MN

Cs

8

A le

gacy

of I

nwar

d D

evel

opm

ent

Stag

e I (

1970

to 1

980)

: Aut

arky

and

Inw

ard

Dev

elop

men

t–

Obj

ectiv

e: D

evel

op in

dige

nous

har

dwar

e in

dust

ry–

FDI b

y m

ajor

fore

ign

prod

ucer

s –

Esta

blis

hmen

t of l

ocal

har

dwar

e an

d so

ftwar

e fir

ms

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ow a

dopt

ion

of (b

ackw

ard)

com

pute

rs–

No

softw

are

IP e

nfor

cem

ent

Stag

e II

(198

0 to

199

2): L

oose

ning

up.

..–

Som

e re

stric

tions

lifte

d bu

t foc

us s

till i

n H

ardw

are

–So

ftwar

e ha

s ba

ckst

age.

.. m

ostly

don

e in

-hou

se in

rele

vant

mar

kets

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ssed

str

ong

copy

right

law

onl

y in

198

7

Stag

e III

(199

2-…

): Li

bera

lizat

ion

and

indu

stry

re-b

irth

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arke

t Lib

eral

izat

ion

for h

ardw

are

and

softw

are

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form

atic

s La

w –

Ince

ntiv

es if

loca

l firm

s ex

pend

ed 5

% s

ales

in R

&D

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rong

dem

and

and

impo

rt g

row

th–

Initi

ativ

es d

irect

ed s

olel

y at

Sof

twar

e pr

omot

ion

–So

ftex

in 1

992

9

GA

GR

of t

he B

razi

lian

Softw

are

Indu

stry

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15%

20%

25%

30%

1991

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IT (U

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UR

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ectiv

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nder

stan

d Pa

ttern

s of

Gro

wth

0%50%

100%

150%

200%

250%

300%

350%

400%

1997

1998

1999

2000

2001

Sam

ple

Indu

stry

Inve

stia

te P

atte

rns

of L

eadi

ng F

irms

–Sa

mpl

e of

56

13

The

Cur

se o

f the

Dom

estic

Mar

ket

Fast

Gro

wth

of D

omes

tic D

eman

d–

Prod

ucts

and

Ser

vice

s

Larg

e C

aptiv

e M

arke

ts–

Num

ber o

f suc

cess

ful f

irms

are

spin

-offs

from

exi

stin

g pl

ayer

s–

Cul

ture

of c

usto

miz

atio

n an

d lim

ited

mar

ket a

ggre

ssiv

enes

s–

Lega

cy o

f lar

ge g

over

nmen

t driv

en e

cono

my

•G

over

nmen

t has

hug

e so

ftwar

e un

its (2

5% o

f nat

iona

l IT

inve

stm

ent)

•So

me

(sta

te o

wne

d) s

ecto

rs h

ave

subs

tant

ial i

nter

nal d

evel

opm

ente

ffort

–H

ardw

are

firm

s so

ld –

fore

igne

rs u

se th

eir o

wn

(ext

erna

l) te

chno

logy

Jum

p to

For

eign

Sol

utio

ns–

Bac

klas

h fr

om im

port

rest

rictio

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egle

ctin

g lo

cal c

apab

ilitie

s•

Valid

for f

irms

and

gove

rnm

ent

–La

ck o

f str

ong

polic

ies

to s

uppo

rt lo

cal i

ndus

try

Hig

h In

tere

st R

ates

–

Diff

icul

t and

exp

ensi

ve to

bor

row

–G

row

th b

ased

on

inte

rnal

fina

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g… s

low

pac

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14

The

Effe

cts

of th

e C

urse

Spec

ializ

atio

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ias

–D

iver

sifie

d ac

tiviti

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r gro

win

g re

gion

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arke

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Not

spe

cial

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wor

k fo

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le c

ontr

y•

Exce

pt S

ão P

aulo

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igh

expe

rimen

tatio

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oftw

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prod

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Inst

itutio

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voic

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the

indu

stry

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ocia

tions

)–

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coop

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betw

een

key

play

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bsen

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f a s

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d de

velo

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xpor

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with

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firm

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pro

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mar

ket

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RP

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iffic

ult t

o co

mpe

te in

inte

rnat

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l mar

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serv

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18

The

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arke

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The

exis

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ctor

s–

Ban

king

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leco

m–

e-G

over

nmen

t–

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he S

tart

ups

Mec

hani

sms

to d

isci

plin

e co

mpe

tenc

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eatio

n–

Vent

ure

Cap

ital

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blic

‘kno

wle

dgea

ble

Cap

ital

19

The

Ban

king

Sec

tor

Inte

rnat

iona

lized

and

Com

petit

ive

–Tr

aditi

onal

ly h

igh

oper

atio

nal e

ffici

ency

due

to m

arke

t vol

atili

ty–

Indu

stry

with

sec

ond

larg

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nflu

x of

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I sin

ce 1

995

–H

igh

prod

uctiv

ity im

prov

emen

ts s

ince

libe

raliz

atio

n–

Dom

estic

ban

ks h

ave

kept

mar

ket d

omin

ance

–R

ecen

t ado

ptio

n of

Bra

zilia

n Pa

ymen

t Sys

tem

Larg

e in

vest

men

t in

IT–

Acc

ount

s fo

r 30%

of a

ll B

razi

lian

IT in

vest

men

t

Impo

rtan

t Mar

ket f

or S

oftw

are

com

pani

es–

Fore

ign:

IBM

, Ora

cle,

SA

P–

Loca

l Lar

ge: S

copu

s, D

BA

–Lo

cal S

mal

l Spe

cial

ized

: Sof

twar

e D

esig

n, M

intte

r

20

The

Bra

zilia

n Pa

ymen

t Sys

tem

-SP

B

Wha

t is

the

SPB

?–

IT s

yste

m th

at a

llow

s im

med

iate

tran

sact

ion

clea

ring

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ymen

t onl

y co

mpl

ete

if fin

anci

al in

stitu

tion

has

liqui

dity

–R

elea

ses

Cen

tral

Ban

k fr

om d

aily

cre

dit i

nsur

ance

role

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crea

ses

over

all s

yste

m re

liabi

lity

and

tran

spar

ency

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acte

d in

199

9-20

01

Rel

evan

t IT/

Softw

are

proj

ect

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vera

ll co

st fo

r the

ban

king

sys

tem

: USD

800

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bout

170

ban

ks w

ere

invo

lved

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soft

cons

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ed th

e SP

B to

be

the

mos

t im

port

ant B

anki

ng

IT p

roje

ct in

Lat

in A

mer

ica

Fier

ce b

iddi

ng b

y m

ultip

le n

atio

nal a

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reig

n fir

ms

21

Lead

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s in

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k B

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mer

is,

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banc

o,B

anes

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Lar

gest

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lear

ing

Hou

ses

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sis

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k12

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pute

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