Workshop: IT for SMEs in CEE

Within the framework of the E4 research project, the Lviv Chamber of Industry and Commerce organized in October 2006 a seminar “Advanced IT Solutions and Competitiveness of SMEs in CEE” in Lviv, Ukraine. This event has brought together IT managers from small enterprises from Western Ukraine, representatives of IT companies, consultants and researchers working on innovative IT solutions from the region and beyond. It is still a rare ocasion in the region to mix these different yet overlapping groups. This first humble attempt led to many interesting results and recommendations:

• SMEs in CEE are not innovation-averse or slow adopters. They are willing and keen to try new solutions, even the most advanced ones (using GPRS, PDAs, etc.), and are openly voicing their needs for solutions or readily serve as testing ground for totally new solutions
• Major obstacles to IT solutions’ adoption in SMEs include lack of vision at the top management level and skilled managers at the lower levels of organizational hierarchies, damaged comfort zones of employees during IT tools implementation, image of IT solutions as a mere extensions of the state taxation system etc.
• Extreme rates of growth where businesses are growing quickly with the organizational maturity lacking behind is something not taken into account by IT developers
• Destroyed and neglected system of technology transfer from Universities, research institutes and SMEs in the region hinders development of innovative IT solutions based on the needs of the companies from the region. Lack of technology transfer culture also hinders transfer of European projects’ results.

You can read the full report from the seminar here. Videos from the event are available at the http://videolectures.net/e4ws06_lviv/. If you are interested in more information do not hesitate to contact us. We are considering running a bigger seminar on the same topic in October 2007 and are open for suggestions.

An-148 – Retaining Industrial Capacity

Ukrainian company Antonov, formerly a powerhouse of Soviet aviation industry, has recently launched its new An-148 regional passenger jet model. The technical details of the jet should be better left to specialists, while the aspects of the industrial cluster management are of interest from a knowledge-management prospective.

During the planning, development and production of An-148 many problems emerged with the broken links in supply chain stemming from Soviet times. Many enterprises were not operational anymore, most have long been privatised, Russian companies are now abroad etc. Some of the lost ground was regained, and as a result a new model An-148 emerged. But just a quick look on the site of Antonov gives a fairly good idea that the production methods are quite old and there is not a single sight of any online platforms for suppliers unlike what Airbus provides at its site. It leads to certain observations:

1. Rebuilding and creating supply chains on new terms - ability to forge back together broken supply chains to build an odd couple of jets is commendable but it will bring better results if new innovative methods of managing suppliers will be introduced, with locally developed IT solutions.
2. Antonov could and should rally suppliers, individual specialists and those interested in aviation technologies around its web site. Developing communities of practice, knowledge databanks, conducting competitions and engaging in constant exchange of information, at least in Russian speaking Internet audience, could strengthen role of the company as an emerging pole of reference in aviation industry.
3. Using knowledge as a competitive advantage – Airbus and Boing, two giants of the worlds aviation industry, are making inroads in the former USSR aviation industry with the strategic alliances and subcontracting (Russia recently courting for EADS stake). Keeping focus on knowledge gained during exploitation of new An models in countries of former USSR could slowly strengthen position of Antonov as a company. Ukraine, as any CEE country outside Russia, is in desperate need of national champions. Only by utilizing exclusive knowledge smartly, Antonov stands a chance to transform itself to such a champion on the back of the strongest growth in the region in years.