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Prospects of the ICT sector in Greece

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Study <strong>of</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>Greece</strong>: Current Situation and Future Trends<br />

Deliverable 14: <strong>Prospects</strong> <strong>of</strong> <strong>the</strong> <strong>ICT</strong> <strong>sector</strong> <strong>in</strong> <strong>Greece</strong>-policy implications<br />

In <strong>the</strong> previous sections, <strong>the</strong> basic f<strong>in</strong>d<strong>in</strong>gs for <strong>the</strong> <strong>ICT</strong>s <strong>sector</strong>s <strong>in</strong> <strong>Greece</strong> were presented.<br />

Fur<strong>the</strong>rmore, <strong>the</strong> parameters that function or could function positively for <strong>the</strong> <strong>sector</strong>’s growth,<br />

but also <strong>the</strong> threats and <strong>the</strong> barriers that <strong>the</strong> <strong>sector</strong> face and should cope with were<br />

presented. The follow<strong>in</strong>g propositions summarize <strong>the</strong> actions or <strong>the</strong> directions that <strong>the</strong><br />

<strong>sector</strong>’s firms should take, <strong>in</strong> order to support a longer-term and susta<strong>in</strong>able growth <strong>of</strong> <strong>the</strong>ir<br />

activities. We should also note our belief that <strong>in</strong> <strong>the</strong> domestic <strong>sector</strong>, <strong>the</strong>re are certa<strong>in</strong> firms<br />

and entrepreneurs / managers, who can - through <strong>the</strong>ir successive strategies - lead <strong>the</strong><br />

whole <strong>sector</strong> to growth.<br />

Some signs <strong>of</strong> reform<strong>in</strong>g towards a more efficient structure <strong>in</strong> <strong>the</strong> <strong>sector</strong><br />

The current <strong>sector</strong>’s structure and its characteristics constra<strong>in</strong> its faster growth. Thus,<br />

reform<strong>in</strong>g actions should be <strong>in</strong>tensified (mergers/ acquisitions) and more collaborative actions<br />

(such as strategic alliances) should proliferate under a consolidation process. Strategic<br />

alliances for <strong>in</strong>tegrated services and collaboration with distributors and content developers<br />

can conglomerate resources and capabilities that are <strong>in</strong>terspersed <strong>in</strong> <strong>the</strong> field and create,<br />

more efficient vehicles <strong>of</strong> growth. It is also imperative for all <strong>in</strong>terested parties to understand<br />

that <strong>the</strong>y should expand or limit <strong>the</strong>ir activities to <strong>the</strong> area where <strong>the</strong>y possess a competitive<br />

advantage. Identify<strong>in</strong>g <strong>the</strong>se complementarities through collaborations and alliances<br />

represents a significant strategic action that should attract greater <strong>in</strong>terest from <strong>ICT</strong> firms.<br />

With some efforts for specialization and strategies that focus on niche<br />

markets…<br />

The efforts for specialization and focus on target groups should be more <strong>in</strong>tensified. Firms are<br />

aware <strong>of</strong> <strong>the</strong>ir advantages and <strong>the</strong>y should try to focus on <strong>the</strong>m. Despite <strong>the</strong> limited degree<br />

<strong>of</strong> market’s segmentation, <strong>the</strong>re are niche areas that could constitute centers <strong>of</strong> growth. Their<br />

identify<strong>in</strong>g and effort for satisfy<strong>in</strong>g <strong>the</strong>ir special needs with customized products / services,<br />

can constitute a solution especially for firms <strong>of</strong> smaller size, which have difficulties <strong>in</strong> adopt<strong>in</strong>g<br />

strategies that require a larger size. Given <strong>the</strong> mild positive prospects that were expressed for<br />

demand, a strategic position<strong>in</strong>g on a niche market segment at this moment ensures for<br />

competitive advantages for <strong>the</strong> future.<br />

…with more <strong>in</strong>novation and differentiation via R&D<br />

A stronger effort for <strong>in</strong>novation and differentiation is required. The diffusion <strong>of</strong> <strong>ICT</strong>s <strong>in</strong> o<strong>the</strong>r<br />

<strong>sector</strong>s <strong>of</strong> <strong>the</strong> economy requires that <strong>ICT</strong> firms are <strong>in</strong> a position to <strong>of</strong>fer value added solutions<br />

for <strong>the</strong> specific <strong>sector</strong>s. Conduct<strong>in</strong>g more R&D, <strong>in</strong> collaboration with academia, can contribute<br />

October 2006<br />

Observatory for <strong>the</strong> Greek IS 41

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