[GPATS 2013 ] Bernd FRIEDRICH and Milena SEIBOLD - Measuring the IT Industry Globally the itib approach v0.4

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Bernd FRIEDRICHDeutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ)

Milena SEIBOLDCapgemini Consulting

Measuring the IT Industry GloballyThe ITIB Approach (IT Industry Barometer)

WITSA GPATS 2013Sao Paulo, Brazil

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The Presenters

Bernd FriedrichHead of Sector Project ICT for DevelopmentDeutsche Gesellschaft für internationale Zusammenarbeit(German Agency for International Cooperation)

EducationUniversity Diploma in Business Administration (Freie Universität Berlin)

ExperienceExpert on ICT and information society policy development, ICT strategy management, IT governance, program and project management, electronic government, system analysis and design, institutional development, business process management with 25 years of professional experience

Milena SeiboldSenior Consultant at Public Sector Consulting TeamCapgemini Consulting

EducationMSc in International Politics (University of London)

ExperienceSeveral years professional experience in public sector consulting, including digital strategy and transformation projects, e-government, modernization projects in public agencies, process reorganization and digitization, project management, change management

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Contents

Benefits of a Monitoring and Evaluation Tool

History and Current Project Status

Contents of the IT Industry Barometer (ITIB) Concept

Key Facts on the IT Industry Barometer (ITIB) and ALETI Census

Outlook

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Importance and Benefits of a Standardized Global M&E Tool for the IT-Sector

IT associations, international organizations, and governments deplore the lack of reliable and comparable data on the IT sector in low- and middle-income countries: Lack of official data: Few countries compile

official data on the composition, capabilities, and size of the IT sector

Global disparity of existing data: Existing data on the IT sector is inconsistent making international comparison of data impossible

Different focus of private analyst data: Data published by private market research companies focus on a demand-side perspective and tend to be expensive

Need for a standardized global monitoring and evaluation (M&E)

tool for the IT-Sector

A standardized global M&E tool yields benefits for all stakeholders:

WITSA‒ Enhanced branding of WITSA as a global voice of the ICT industry ‒ Enhanced understanding of the IT industry and impact of IT globally‒ Improved ability to engage in policy advocacy activities at the

international level ‒ Ability to improve member services

IT associations‒ Improved insights in specific needs of their members ‒ Support and services tailored to those needs‒ Improved ability to engage in policy advocacy activities domestically

IT companies‒ Timely identification of relevant trends in the IT industry (“Early-warning

system”)‒ Improved benchmarking domestically and against IT industries of other

countries Policy makers

‒ Enhanced basis to assess the economic impact of the IT sector‒ Improved evidence for policy design and targeted sector promotion‒ Accurate and up-to-date information for monitoring purposes

Situation & Challenges Benefits

The lack of consistent data on the IT industry emphasizes the need for a standardized global M&E tool

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Contents





Outlook

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History and Current Project StatusThe IT Industry Barometer (ITIB) traces back to 2011 and has gained increased momentum in

2013 through the joint GIZ-UNCTAD-WITSA initiative

Origin of joint GIZ-UNCTAD-WITSA initiative to Improve Access to Data on the Information Tech-nology Sector

Agreement to develop an approach to collect standardized and comparable data on IT sectors collaboratively

Finalization of the concept of the ITIB (final version)‒ Review and finalization of the concept‒ Development of an operational plan for implementation/rollout of the ITIB

Mobilization of project partners from ALETI, WITSA, UNCTAD, BASSCOM, MASIT, STIKK

Briefing of project partners and establishment of a project infrastructure

Phone interviews with all stakeholders to retrieve input on expectations, experiences and good practices

Analysis of existing IT Industry surveys, incl. those of ALETI, BASSCOM etc.

Examination of relevant statistical concepts, incl. ISIC Rev. 4, Core ICT Indicators, EITO, Gartner, IDC etc.

Development of draft survey

Drafting of concept paper

Presentation of concept key contents

Discussion of aspects such as organizational set-up, sponsorship, and funding

Next Steps

History Current Project

Development of an integrated approach to IT sector promotion in low- and middle-income countries

Development of a toolbox that includes the IT Industry Barometer (ITIB)

Implementation of a survey among IT associations to assess their involvement in industry data collection

Insight that less than half survey their own members regularly

2011 2012 2013 September NovemberOctober

Timeline 2013

Establishment of joint

working group

Needs assessment

ITIB concept development

Concept presentation and

discussion at GPATS

IT Toolbox development by GIZ

UNCTAD Information

Economy Report

Joint session at WSIS +10 Meeting in Paris

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Contents





Outlook

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The ITIB ConceptThe IT Industry Barometer (ITIB) concept covers all aspects for measuring the IT industry globally

IT Industry Barometer Concept

Overview of the statistical environment International standards

Analysis of Statistical Concepts

Data Security Introduction of data security concept ITIB processes relevant to data security

Proposed organizational set-up Process models

Organizational Structure and Processes

Organizational requirements Results and output of data analysis

Data Analysis

Analysis of ITIB requirements of an online survey Comparison of existing internet-based survey tools

Requirements of an Internet-Based Survey

Survey structure ITIB questionnaire

Data Modules (Survey Structure)

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Several countries / local IT associations lack internal financial resources Decentralized data analysis on the local level implies the risk of inconsistencies Currently there is no internal market research department for ITIB in place Hiring external analysts for data analysis might be less expensive than building

internal resources and allows the organizations to focus on its primary business activities

The only downside, the lack of credibility and control can be reduced by establishing a central ITIB Steering Committee that is briefing, supervising and managing the external research provider

For the purposes of the ITIB, a central coordination of data analysis conducted by an external provider is recommended.

Data analysis is the process where data are organized, reviewed, verified, and interpreted.

Can be carried out either internally or by an external provider

Basic steps in the data analysis process include:

Data Analysis

Data Preparation

Data Analysis

Data Presentation

1

2

3

Recommendation for Data Analysis within ITIB

The chapter analyzes the capabilities required and proposes an organizational solution

ITIB Concept – Data Analysis

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ITIB Concept – Organizational StructureCentralized Organizational Structure

WITSA (Regional VPs)

Southeast European

AssociationsALETI …

Sofex (Guatemala)

BASSCOM(Bulgaria)

MASIT(Macedonia) …Cessi

(Argentina)STIKK

(Kosovo)Assespro (Brazil)

+ 18 further associations

Further associations

Global

Regional

National

Coordination on global level

Roll-out and operational

responsibility on national level

Cooperation External Partner

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ITIB Concept – Organizational StructureHybrid Organizational Structure

UNCTAD

Global

Regional

National

WITSA (Regional VPs)

Southeast European

AssociationsALETI …

Sofex (Guatemala)

BASSCOM(Bulgaria)

MASIT(Macedonia) …Cessi

(Argentina)STIKK

(Kosovo)Assespro (Brazil)

+ 18 further associations

Further associations

ITIB Steering CommitteeRepresentatives of UNCTAD + WITSA

(Regional VPs) + Regional Associations

Central coordination with representatives from global & regional levels

Roll-out and operational responsibility on national level

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ITIB Concept – Data SecurityThe section examines data security and proposes measures to mitigate potential risks

Data security risks can occur at various stages in the survey process:

‒ Respondent Identity Protection: Answer questionnaires anonymously‒ Question Wording & Response Options: Questions that ask for ranges

rather than exact numbers‒ Access Management: Limit access to ensure that only entitled users can

view / edit data‒ Data Storage & Retention: Store data on a reliable platform that is

protected from external access‒ Selection of and Contractual Provisions with Data Analysis Vendor:

Select vendor carefully and negotiate contractual clauses that penalize breaches of data security if data analysis is carried out by external provider

‒ Definition of Survey Output: Only allow publication of aggregated survey output

‒ Distribution of Results: Define how and to whom results will be distributed

Data Security is concerned with safe-guarding an organization‘s data from unauthorized access, use, modification or destruction and aims at protecting and ensuring the confidentiality, integrity and availability of information.

Confidentiality

Integrity

Availability

Data Collection Data Analysis Data Use

Data Security Data Security in the Survey Process

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ITIB Online Demo Version

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ITIB Online Demo Version

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Contents





Outlook

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Key Facts on the ITIB and ALETI Census Both the ALETI Census and the IT Industry Barometer (ITIB) have been used in the field

English Spanish

Spanish Portuguese

Tools used for Data Collection: SurveyMonkey Tools & Providers used for Data Analysis: Market

research software specifically developed by MBI, official sponsor of the Census

Tools used for Data Collection: QuestionPro or dynamic PDFs

Tools & Providers used for Data Analysis: Excel

Comprehensive census of the IT landscape in a given country; a „Census“ in the true sense of the word

Monitoring and evaluation tool

Brazil Census (2012): 1 ALETI Census (2013):

‒ In implementation in all 17 ALETI member countries‒ Covering 850 member companies‒ 555 complete data sets

Bulgaria (BASSCOM, BWA): 5 Guatemala (Sofex, Digital GT): 2 Honduras (AHTI): 2 El Salvador (ASETI): 2 Macedonia (MASIT): 1

Focus on software and IT services Focus on whole ICT industry (incl. telecommunications); but the majority of the companies come from the IT services and software sector

Member companies of IT associations and clusters, public actors (ministries and agencies), donor organizations, the media, and the public

Very broad target group including member companies, policy makers and academia

Comprehensive overview of IT landscape in a country Development of an IT company directory B2B match-making

Identification of IT trends in a country Targeted policy design and IT sector promotion based on

findings

What is it

Countries & Number of Successful

Implementations

Industry Focus of the Survey

Target Group

Objectives

Tools

ALETI Census ITIB

Languages

Additional countries: Kosovo Albania Bosnia and Herzegovina Serbia Montenegro

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Contents





Outlook

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Outlook GPATS is crucial in shaping the future of the initiative

International working group collaboratively drafts ITIB concept

Review Cycle(End of Oct)

ITIB concept draft serves as a basis for discussion at GPATS

Presentation at GPATS(Mid Nov)

Next steps in the ITIB project will be based on the results of discussions at GPATS

Next Steps (After GPATS)

Questions for DiscussionInstitutional Embedding / Future of the Working Group Founding of a dedicated WITSA committee to promote the ITIB Organizational set-up, sponsorship and support by IT associations Project funding

Questions Regarding Data Collection and Analysis Statistical concepts to be applied Organizational set-up for data analysis Selection of an appropriate online survey platform Implementation of adequate data security measures

Technical Questions Regarding Questionnaire Set of questions to be asked Response options and categorizations used Survey frequency and point in time

Data Use Definition of data distribution and access rights

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Bernd FRIEDRICHDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Milena SEIBOLDCapgemini Consulting

Measuring the IT Industry GloballyThe ITIB Approach (IT Industry Barometer)

WITSA GPATS 2013Sao Paulo, Brazil

THANK YOU

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Back-Up

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Questions for DiscussionA few organizational and technical questions remain up for discussion

Topic Question Recommendation

Survey Frequency How often should the survey be conducted?

We recommend to conduct the survey on a yearly basis (surveying calendar year rather than past 12 months)

Survey Moment When should the survey be conducted?We recommend to conduct the survey at the beginning of each year (in retrospect of the past year)

Period Under Review

Should questions be restricted to the past year or include the past three years?

Ranges vs. Exact Numbers Should the survey ask for ranges or exact numbers? We recommend the use of ranges to better protect

respondents’ identity.

Currency Should data be provided in national currency or USD?

We recommend to use national currencies as this allows to compare developments over time.

Survey Focus Should the focus of the survey be restricted to the IT sector or include the entire ICT sector?

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Use of International Statistical SystemsThe ITIB Questionnaire uses international statistical systems to allow for global comparison

The categorization of productive activities draws on ISIC Rev. 4

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Requirements for Internet-Based SurveysRequirements for online survey providers comparison

What question types does the provider offer?

Does the provider allow customized branding?

Which logic options can be implemented?

CustomizationQuestion TypesSurvey SettingsDesign & Layout

Logic Options

Data SecuritySecurity Options

DistributionPublish &

Advertise SurveyCollect Data

ReportingAnalysis & Reporting

Account ManagementCustomer Support

Multiple-user access

CostPrice

What output formats does the tool offer?

Are these format compatible with the planned analysis tool?

Does the provider use a recognized encryption method?

How does the provider protect access to the data stored? Is the survey manager’s access to the tool protected with a password?

Are the data stored in a safe environment?

Through which channels does the provider offer survey publication and placement?

Does the provider offer ways to embed a survey into social media / existing homepages?

Is it possible to schedule reminders and invitations?

How much dos the service package cost?

What pricing models does the provider offer?

Is a test version available? Does the provider offer

accounts at reduced cost, e.g. for non-profit use?

Are multiple user accounts available?

Does the provider offer a service hotline and / or e-mail support?

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Analysis of Existing Internet-Based SurveysSurveyMonkey and QuestionPro are best suited for the purposes of the

IT Industry Barometer (ITIB)

Much discussed in forums and blogs

Praised for its outstanding customer support

Relatively new and unknown tool

Part of the file storage and synchronization service Google Drive

Only basic features

Most popular and well-known tool

15+ million customers worldwide

Cheap yet comprehensive services

Many features Nearly maximum customization

Not as widespread but comparable alternative to SurveyMonkey & QuestionPro

Leading provider in this field

Prices between $15 and $99 per month

One of America’s fastest growing companies

QuestionPro and SurveyMonkey are the tools with the best fit

While QuestionPro displays maximum compatibility with the six criteria defined, SurveyMonkey has proven to be a sufficiently versatile and adaptable tool for the ALETI Censo.

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Commonalities Between the ALETI Census and the ITIBThe ALETI Census and IT Industry Barometer (ITIB) have many topics in common that

should form the basis of a shared core module

Membership in Associations

Sales by Products and Services Offered

Sales by industry / client segment

Number of employees

Exports

Quality Management Certifications

Research and Development; Innovation

Sales Projection

Current Sales Figures

Comments

Topics in Common

• Contact person (optional)• Ownership structure

(domestic, foreign, branch)• Year of foundation

• Net profit in the last three years

• Annual net salary level for employee categories

• Employee turnover rate in the last three years

• Average billable rate by staff categories

• Number of employees working on R&D projects• Preferred university for

recruiting• Influence of external factors• Importance of trends (big

data, social media, cloud computing, etc.)

• Country of origin• Province where the

headquarters are based• Province/s where the company

maintains subsidiaries• Operating systems at the basis of

products and services offered• Data bases at the basis of

products and services offered• Programming languages at the

basis of products and services offered

• Global companies with whose products and services the company's own products and services integrate

• Share of fixed costs (subscriptions, licences, maintenance) of total revenues

• And many more…

ALETI Census ITIB