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InnovationJuly 10, 2006 / Number 3
A way of lifeBy Antonio Zárate
There is no doubt that knowledge-based innovations are the ones that render the greatest value to users or clients. Generally speaking, said innovations have a higher price, but the market is willing to pay for it because it values the intellectual work behind the development of a different product or service. If we talk about the weight of a product, it becomes very clear that the knowledge content via technology - or innovation in general - significantly increases the price per kilogram. Let's look at an example. The average price of commercial steel today is around seven pesos per kilogram, whereas an innovative prescription drug to treat gastric reflux costs around 30 thousand pesos per kilogram. This means that knowledge is an indispensable raw material for the creation of products and services of the highest value. We can apply a similar criterion to the software industry, which feeds itself from knowledge, creativity, vision and the restless inventiveness needed to develop solutions that will exceed the users' expectations. A portable computer has the same weight with or without the operating system and applications. For the customer, the real value is in the software. Being a sector that generates value added based on knowledge, the software industry is a priority at the Innovation and Technology Transfer Institute of Nuevo Leon, which is operated by the Monterrey, International City of Knowledge program. Through said program, and in coordination with the Citizens Consulting Council for the development of the software industry in Nuevo Leon, we are implementing various measures to position Nuevo Leon as the main Latin American software supplier for the North American market. We work together with representatives from almost 200 companies and from the most prestigious academic institutions in the State in order to design development strategies tailored to the local and global environment. Moreover, we promote the participation of local businesses in the economic incentives program for the development of the software industry (PROSOFT).
Nuevo Leon Software Industry Aims to Be Number OneThe State's goal is to become the main Latin American software supplier for the US and Canadian market
It was 52 million pesos in 2004; the amount grew to 101 million in 2005 and it will reach 173 million pesos this year. We are not talking about lottery prizes, but about investments used by the software industry of Nuevo Leon, with the support of the Software Industry Development Program (PROSOFT) and backed by the State Government, which is the national leader in promotional strategies for this sector. The "Monterrey, International City of Knowledge" program plays a very active role in this effort, since "One of its goals is to position the State of Nuevo Leon as the main Latin American software supplier for the US and Canada," stated Guillermo Safa, Director of Software Industry Promotion within the Innovation and Technology Transfer Institute of Nuevo Leon. "The local software industry already has an important base of businesses, human capital, and accumulated knowledge. It is a sector with more than 20 years of development and approximately 3 thousand qualified engineers, but we must continue improving," he added. Safa pointed out that "it is essential to train professionals and businesses with the purpose of reaching international standards of operation and gaining access to certification programs." In order to achieve this goal, almost 200 software firms, together with the five major educational institutions of the State, and the State Government, created the Citizens Consulting Council for the development of Nuevo Leon's software industry. Its mission is to increase competitiveness in this sector and make it one of the key drivers of economic growth. The Council, the City of Knowledge, and Nuevo Leon's Government work hand in hand in order to take advantage of the benefits of PROSOFT, which was launched in 2002 by the Ministry of Finances.
Council of the Software Industry. "No Between 2004 and 2005, 176 businesses received the benefits. This year, 255 were selected, which are aiming to create 786 jobs, according to information provided by the Office of Support to Businesses of the New Economy of the Ministry of Economic Development. The amount of funds assigned by PROSOFT depends on the contributions made by the States and the organizations promoting the projects. Nuevo Leon ranks first nationwide, with 326 million pesos for the 2004-2006 period. The State Government is also promoting export of goods and services for the software industry, stimulates specialized training, fosters entrepreneurial leadership, and creates plans for the exchange of innovations with foreign companies, all of it to be carried out through the City of Knowledge and the Citizens other State has pledged as much as this one, because it not only supports with funds, but also with its presence," stated Blanca Treviño, President of the Council. "Before PROSOFT, Nuevo Leon's software industry was already undergoing a process of continuous development, which has contributed to the impressive growth achieved. Right now, a wonderful moment exists, in which the two parts - State and Federal Governments - enrich something tangible," Treviño pointed out.
Neurons in actionThey make good use of every peso in order to growInnovators do not wait for things to happen, they make them happen Such are Oscar Valdes and Eduardo Ruiz-Esparza, two software industry entrepreneurs who have made good use of PROSOFT resources to make their business grow based on a long-term, global vision.
Accelerating their expansionThe support of the Government has been a decisive factor in accelerating the growth of SCAi, a firm with 20 years of experience, specializing as a SAP Certified Consulting Firm in the National Implementation Partner category. Oscar Valdes, President of the company, which is also certified as SAP Channel Partner, explained that the 660 thousand pesos they received in 2005, through PROSOFT, gave them the support needed to create eight highly specialized jobs, to implement training programs at the Center for the Transfer of Knowledge and Technology (abbreviated (CT) 2 in Spanish), to organize promotional events, and to distribute promotional materials in more than 500 businesses in Mexico. In addition, and as a result of its participation in PROSOFT, the company responded to the 2005 Invitation from the Mexico-US Foundation for Science (abbreviated Fumec in Spanish) and was placed among the five companies awarded an honorable mention. "This award gave us the right to join TechBA, a business accelerator sponsored by FUMEC with headquarter in Austin, TX. This is why, since March, we have an office in that city," explained Valdes. Based on its (CT) 2, the company seeks to qualify its JIT Supplier Automotive solution before SAP USA. By doing this, it will be able to export to the US, which is the largest market in the world in the auto parts industry. "Our sales have increased from 3 to 7.5 million dollars in only two years, and we estimate we will pass the 15 million mark by 2010," said Valdes.
The advantage of being the first This year, the IDZ firm received a grant for 1 million 663 thousand 200 pesos from PROSOFT as a result of creating specific and high value solutions for the Latin American market. This amount represents almost 30 percent of the resources that IDZ will use to materialize a project covering three areas: software development (2 million 280 thousand pesos), training and certification (1 million 142 thousand pesos), promotion and attendance to RFID events (2 million 491 thousand pesos). Besides being a pioneer in Mexico in the development and promotion of software for radio frequency identification (RFID), which is done through chips, this company carried out the first project on Electronic Product Code (EPC) in Latin America. "The company gained access to PROSOFT through a product that manages all RFID devices, sensors, and other devices; filters data and provides the interface with applications using this technology," explained Eduardo Ruiz-Esparza, the company's CEO. "We will offer specialized training to 50 percent of the staff working on software development. By doing that, we will be able to position ourselves with an RFID platform that will be adequate for Latin America. We have the capacity to be pioneers in this market and advantageously compete against foreign companies," he stated.
FUTURE EVENTS JULY 24-28 August 7
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