Republic of Kosovo Government Ministry of Economic Development



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2.2.Approach and Phases


The next key element of the methodology for the development of the Kosovo IT Strategy is the approach which has been directly derived from the strategy principles described above. Accordingly the approach combines collaboration, agile methods and the concept of strategic fit.

2.2.1.Collaboration


The highly challenging and complex task of promoting the IT industry in Kosovo can only be addressed by a collaborative approach involving all relevant stakeholders, ranging from ministries to the IT association STIKK, individual companies, universities and donors. This also implies a balanced combination of top-down and bottom-up elements in strategy development.

Pursuant to this collaborative approach, the representatives from all relevant stakeholder groups of the Kosovo IT industry formed a joint working group (“strategy group”) which assumed responsibility for developing the Kosovo IT Strategy .

The collaborative element of the approach resulted in a regular influx of new ideas and know-how from the members of the strategy group and ensured ownership of the strategy development and implementation process.

The following photos illustrate the collaborative approach of the Kosovo IT Strategy which was elaborated in 8 multi-stakeholder strategy workshops:







Figure : Photos from collaborative strategy workshops

2.2.2.Agile methods


Similarly to agile methods used in software development, the development of the Kosovo IT industry follows an agile approach which comprises four iteratively aligned strategy phases:

  • Analysis

  • Strategy development

  • Implementation

  • Monitoring & evaluation

To organize and manage the collaborative development of the Kosovo IT Strategy in an effective and agile manner, the four phases were subdivided into 6 individual strategy modules. The following diagram shows the four phases and the corresponding strategy modules of the overall strategy development process:

Figure : Phases and modules of the IT strategy development process

Each of these modules contained a specific set of IT strategy elements and topics elaborated by the working group within the framework of several strategy workshops. The sequence and content of the modules correspond directly to the structure of the strategy document.

In strategy module 0 the joint project planning for the Kosovo IT Strategy was conducted including project set-up, methodology, establishing the strategy working group as well as the corresponding process model.

Strategy module 1, which corresponds to the analysis phase, encompasses the tasks to be conducted in the framework of the internal analysis of the Kosovo IT industry as well as the external analysis of the potential target markets.

Module 2 and 3 both belong to the strategy development phase. While module 2 was mostly concerned with the goal setting process and the formulation of the generic strategy and market entry strategy, module 3 focused on the definition of concrete support measures and activities for the Kosovo IT industry according to the different sub-goals.

Module 4 and 5 were part of the implementation phase. They focused on the development of the overall organizational structure, processes and instruments for strategy implementation, including the elaboration of an operational plan.

Module 6 relates to the monitoring and evaluation (M&E) phase. The module included the development as well as the implementation of an M&E system, in order to evaluate the effectiveness of the measures, provide feedback and ensure continuous improvement of the Kosovo IT Strategy.

As it can be seen from figure 3, the strategy was not developed as a linear process, but rather as a cycle of iterative, incremental strategy modules, where the inputs and suggestions provided by the working group feed into defining and optimizing the content of each chapter. Complex elements of the strategy such as the goal system and the operational plan were elaborated in several so-called ”sprints” or iterations.

Once strategic measures have been implemented (Module 5), the whole cycle starts again based on the results from monitoring and evaluation (Module 6). This allows for continuous improvement of the strategy through constant interaction between strategy formulation and implementation.

The following chart provides a short overview of agile methods according to Scrum6, as well as of the agile elements in the Kosovo IT Strategy:

Figure : The agile approach of the Kosovo IT Strategy

The agile approach provides the following benefits for the development and implementation of the Kosovo IT Strategy:



  • Promoting adaptive planning and encouraging rapid and flexible response to changing market conditions and technology trends

  • Continuous improvement of the Kosovo IT Strategy

  • Accelerated implementation of support measures

  • Promoting effective collaboration within the strategy working group and the stakeholders of the Kosovo IT industry

  • Increasing transparency of the strategy development process

An important element of the agile approach is the parallel implementation of selected support measures for the Kosovo IT industry, such as the establishment of the STIKK Training Academy, the introduction of the B2B Export Promotion Service, as well as the organization of business delegations to strategic export markets. In that way, the effectiveness of specific strategy measures could be tested and the results and lessons learnt were directly included in the strategy development process.


2.2.3.Strategic Fit


Another important component of the methodological approach is the so-called strategic fit. It describes the idea of designing an IT strategy which bridges the capabilities of the Kosovo IT industry (internal view) with the requirements and key success factors of its target markets (external view) in order to generate sustainable competitive advantages and to successfully position Kosovo’s IT industry in international markets.

According to the agile approach, the strategy development process starts with Module 1, comprising an internal and external analysis. The internal analysis is targeted at assessing the structures, resources and capabilities of the Kosovo IT industry, while the external analysis implies the analysis of potential export target markets in order to identify the relevant key success factors.

Figure : Generating sustainable competitive advantages by ensuring “strategic fit”

The analysis phase forms the basis for the subsequent strategy development process by providing all relevant information. Without basing the strategy development process upon a thorough analysis, the strategy development would be prone to failure due to a lack of consistency with either the internal or external environment.

With this approach it is possible to overcome the dichotomy often found in many IT industry development strategies between “resource-based strategy” and “market-focused strategy” by combining and integrating both approaches.

Through a combination of collaboration, agile methods and strategic fit, the methodological approach of the strategy aims at creating a “learning system” that ensures systemic competitiveness for the Kosovo IT industry as well as the generation of sustainable competitive advantages. Such a learning system, facilitating the continuous improvement and adaptation of the strategy, is of particular importance for the IT industry, which is characterized by short innovation cycles and intensifying competition.



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