Background (Global Context)
Service delivery and customer satisfaction is the key to high value business development. Developing a track record of success and customer satisfaction is the most powerful marketing tool available. Successful ICT service, software, and product providers have established reputations for service delivery and a demonstrated commitment to their customers and meeting their needs.
Current Situation in Armenia
A major roadblock to conducting business between Western markets and former Soviet Union countries is the lack of a common basis for conducting business. The reason for the almost exclusive ties to “Agents” and “ Partners” for Armenian software business is a result of a lack of infrastructure and processes to bridge that gap without having to surrender the largest portion of the “value” to individuals who understand the market.
These recommendations strive to employ a program that will help Armenian businesses create a strong local presence in the markets they serve and demonstrate a service culture that is understandable and consistent with “customer expectations.”
Target Outcome 10.1: Established Service Culture for Armenian ICT Businesses
Actions/Development Plans
10.1.1 Create “Look Local in the Market” Program
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Develop a “look local” program. One of the pillars of a successful model for accessing international business is a local presence in the markets they serve. This creates the perception for their customers that doing business is as easy as doing business with your neighbor. Armenia needs to employ the same strategy. The program will have the following advantages:
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Understanding the ongoing and changing needs of the customers
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Understanding and responding to the priorities of customers
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Providing timely and accurate deliverables
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Providing a chain of communication that the customers understand and are familiar with
Effective marketing will provide initial opportunities. Strong service delivery will make the difference between a single opportunity and access to higher value added opportunities that result from developing trust and confidence.
The looking local program will be complementary to the marketing initiative and located at the selected business incubators in key markets and utilize the same interns that will be rotated every 6-9 months. The program will contain these three components:
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Education program for Armenian companies to acquaint them with business processes in the customer environments. UT Austin has developed a multi-media online training program that acquaints individuals with the working environment of companies through a virtual company. This could be localized to Armenia.
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Incubators in key markets will be the platform for developing and facilitating business relations. Initial recommendations include the development of similar associations and linkages to other successful incubators in America.
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The program will include services such as: technology assessment, customer liaison, negotiations, feedback, communications, and bridging the cultural gap.
The program will accomplish the following objectives:
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Develop an infrastructure that responds rapidly to customers’ needs
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Demonstrate a commitment to quality service delivery
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Eliminate the need for extended communication chains
Strategic Direction 11: Develop Domestic Markets
Background (Global Context)
Domestic consumption of ICT products and services is the engine that feeds the industry. In developing countries, the local market is undeveloped. Emerging governments are typically the engine that develop the local market through government sponsored programs and procurement activities such as e-commerce and e-government programs that employ local suppliers and developers.
Current Situation in Armenia
The domestic market for ICT services and products is very small. Industries that utilize ICT services and processes are in a restructuring mode and cannot afford to purchase them at this time. The Armenian market must be nurtured to provide the growth necessary to achieve a balance between domestic and international market focus. The Armenian Government will play a key role in its development.
Actions/Development Plans
11.1.1: Employ local ICT companies to develop e-commerce capabilities
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Identify and adopt the legislative framework facilitating electronic commerce, including laws and regulation on e-commerce itself, electronic trading of goods and services, electronic stock trading, electronic signatures, encryption, security and privacy, etc.
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Identify and address customs and accounting procedures, as well as other rules and practices that may pose barriers to e-commerce through the study of relevant Armenian legislation, experience and practices of developed countries, and interviews with interested parties in Armenia.
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Develop and implement measures enabling credit and debit card online acceptance by private companies. Involve Central Bank of Armenia, commercial banks, and appropriate international experts in the process. Study the experience of world e-commerce leaders (Amazon.com, eBay, AmeriTrade, etc.) to identify the necessary steps and avoid mistakes on the way of e-commerce development.
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Enact local content regulations that give preference to Armenian service providers or require foreign suppliers to contract with local companies for a percentage of the total contracts.
Actions/Development Plans
11.2.1 Local suppliers/vendors for e-government programs
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Fund e-government re-engineering and re-design programs that employ local companies.
Target Outcome 11.3: Local Market Environment that Supports Small Business
Actions/Development Plans
11.3.1 Enact new policies
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Enact policies and programs that encourage investment and local business development. These would include:
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