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STRATEGY FRAMEWORK FOR SUSTAINABLE ECONOMIC AND INDUSTRY DEVELOPMENT (AND FOR DETERMINING AND PRIORITISING THE ROLE FOR
STRATEGY FRAMEWORK
FOR
SUSTAINABLE ECONOMIC AND
INDUSTRY DEVELOPMENT
(AND FOR DETERMINING AND PRIORITISING THE
ROLE FOR GOVERNMENT)

Corporate Strategy and Policy PIRSA, Govt. of South Australia

Overview
Overview
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program

Outcome establishing industry growth targets

Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program

Strategy defining strategy for international competitiveness

Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program

Government Program determining the appropriate contribution from Government

Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program

PIRSA Program prioritising PIRSA intervention

PIRSA Input recovering fair

costs for PIRSA interventions

Overview Outcome – establishing industry growth targets Strategy – defining strategy for international competitiveness Government Program
Outcome: Getting to Accelerated Wealth Generation
Outcome: Getting to Accelerated Wealth Generation

Inter relationship between PIRSA outcomes

Economic Growth Outcome 1
Economic
Growth
Outcome 1
with Sustainable Economic Development
with
Sustainable
Economic
Development

PIRSA primary focus

Sustainable Ecosystems Outcome 2/3
Sustainable
Ecosystems
Outcome 2/3
Outcome: Getting to Accelerated Wealth Generation Inter relationship between PIRSA outcomes Economic Growth Outcome 1 with
Organisational Health and ‘Footprint’ Outcome 5 Key enabler Prosperous Regional Communities Outcome 4
Organisational
Health and
‘Footprint’
Outcome 5
Key enabler
Prosperous
Regional
Communities
Outcome 4
Outcome: Getting to Accelerated Wealth Generation Inter relationship between PIRSA outcomes Economic Growth Outcome 1 with
Outcome: Getting to Accelerated Wealth Generation Inter relationship between PIRSA outcomes Economic Growth Outcome 1 with

industry

partners

Outcome: Getting to Accelerated Wealth Generation Inter relationship between PIRSA outcomes Economic Growth Outcome 1 with

Cross Community/Govt agenda

Outcome: Getting to Accelerated Wealth Generation Inter relationship between PIRSA outcomes Economic Growth Outcome 1 with

PIRSA secondary focus

Each industry requires its own vision and growth targets
Each industry requires its own vision and growth targets

Typical industry lifecycle characteristics

GROWTH

Fragmented Embryonic companies Market uncertainty Immature distribution channels

Emerging

High growth

Slow growth

Product and process

Product

Margin

innovation

innovation

pressures

New growth

Quality

Competition

standardisation

for market

New entrants

share

Regeneration

Growth

Industry concentration

Decline

Declining demand and

investment High competition for markets

Unsustainable margins

Exodus of producers and/or concentration of industry

Mature

Product/service substitution

TIME

Each industry requires its own vision and growth targets Typical industry lifecycle characteristics GROWTH Fragmented Embryonic
Conditions for International Competitiveness
Conditions for International Competitiveness
Porter’s Diamond Firm Strategy, Structure and Rivalry Factor International Demand Conditions Competitiveness Conditions Related and Supporting
Porter’s Diamond
Firm Strategy,
Structure and Rivalry
Factor
International
Demand
Conditions
Competitiveness
Conditions
Related and
Supporting Industries
STRATEGY: Getting to Sustainable International Competitiveness
STRATEGY: Getting to Sustainable
International Competitiveness

Economic

   

Porter’s Diamond

 

development

 

enhancements

Factor

 

Demand

 

Firm and industry,

Related and

Conditions

Conditions

rivalry and structure

supporting

     

industries

(Resource Capacity)

Industry strategy

Firm rivalry

 

and structure

and dynamism

 

Productivity

Develop a ready access

Develop a discerning

Develop a discerning

Develop an

Develop a business

entrepreneurship,

Build stronger

development

to knowledge, skilled workforce, physical

domestic market

industry operating

environment

culture that encourages

integration and cost efficiencies

enhancements

resources, capital

 

Leveraging domestic characteristics into

that encourages

collaboration and

with operations of

 

and infrastructure

investment and

innovation

complementary

  • Land, water, resources

exports

responsiveness to

  • Positive rewards for

industries

 
Consumer affairs markets entrepreneurship Development of

Consumer affairs

markets

entrepreneurship

  • Development of

 
  • Roads, ports, rail

 
Roads, ports, rail Taxes and stronger ties

Taxes and

stronger ties

  • Courses, graduates

charges

  • Competitive industry

between

  • Management resource base

Management resource base Accounting rules structure (NCP) Appropriate mix of businesses associated with

Accounting rules

structure (NCP)

  • Appropriate mix of

businesses

associated with

  • Research and development

Research and development Financial reporting the value chain

Financial reporting

the value chain

  • Human capital

rules

rivalry and collaboration between

  • Reduce transaction

Markets for „risk‟ firms costs between

Markets for „risk‟

firms

costs between

 

capital

industries

Reward systems Cluster/network

Reward systems

  • Cluster/network

   
Business rules formation

Business rules

formation

 

Market access

development

 

Maintain the sustainable

integrity of the natural

Access to

international

and regulations

and social environment

markets and market

 

enhancements

 

intelligence

   
  • Bio-security

Bio-security Integrate demand

Integrate demand

  • chains

Clean and green

 
  • Assist companies

Disease-free status

Assist companies Disease-free status
  • choices

Bio-diversity

make informed

 
Market access

Market access

Sectors need to determine their own strategic positioning
Sectors need to determine their own strategic positioning

Typical growth drivers within the industry lifecycle

Sectors need to determine their own strategic positioning Typical growth drivers within the industry lifecycle Strategy
Strategy and GROWTH Structure Strategy and Strategy and Structure Structure Factor Demand Strategy and Factor Related
Strategy and
GROWTH
Structure
Strategy and
Strategy and
Structure
Structure
Factor
Demand
Strategy and
Factor
Related
Demand
Structure
Factor
Demand
Re-innovation
Industries
Factor
Demand
Related
Related
driven
Regeneration
Industries
Industries
Related
Industries
Innovation and
Investment
driven
Stagnation
Decline
Resource
driven
Emerging
Growth
Mature
TIME
The Role Government and ‘Chance’ Play in building International Competitiveness Firm Strategy, Structure and Rivalry Government
The Role Government and ‘Chance’ Play in
building International Competitiveness
Firm Strategy,
Structure and Rivalry
Government
intervention
Factor
International
Demand
Conditions
Competitiveness
Conditions
Chance
Related and
Supporting Industries
PIRSA PROGRAMS: Getting to Industry Self-Mobilisation
PIRSA PROGRAMS: Getting to Industry
Self-Mobilisation
STRATEGIES Factor conditions (Resource capacity) Firm and industry, rivalry and structure Demand Related and factors supporting
STRATEGIES
Factor conditions
(Resource capacity)
Firm and industry,
rivalry and structure
Demand
Related and
factors
supporting
industries
Develop a ready
access to
knowledge, skillled
workforce, physical
resources, capital
and infrastructure
Maintain the
sustainable
integrity of the
natural and
social
environment
Develop an
Develop a
Develop a
Access to
Build stronger
industry operating
business
discerning
international
integration and
environment
culture that
domestic
markets and
cost efficiencies
TYPES OF
GOVERNMENT
INTERVENTION
that encourages
encourages
market
market
with operations
investment and
entrepreneur-
intelligence
of
responsiveness to
ship,
complementary
markets
collaboration
industries
and innovation
Persuasion/advice
Market creation
Training and education
services
Portfolio program
Trade and
Subsidies/taxes
management
market
Natural resource-based
infrastructure project services
services
services
Resource
Compliance services
Legislation and compliance
regulation planning
Licensing services
services
Human and Social Infrastructure
Research and
Research and
scientific
scientific
Research
services
services
Education and training
Information distribution
Data and information
products and services
Facilitation
and planning
services
Physical Infrastructure
Developing assets
Incident response
services
Incident Response
Natural resource-
based infrastructure
project services
DIRECT MARKET INTERVENTION
INDIRECT MARKET
INTERVENTION
PIRSA Programs: Getting to optimal market benefits
PIRSA Programs: Getting to optimal market benefits

Prioritising

PIRSA

intervention

SIGNIFICANCE OF MARKET

FAILURE

Severe

Slight

None

BENEFIT COST

RATIO

 

High

Medium

Low

Clear role for PIRSA

Potential role for PIRSA

Clear role for private sector

Clear role for PIRSA Potential role for PIRSA Clear role for private sector

Potential role for private sector

PIRSA role defined by other policy objectives

PIRSA inputs: Getting to Fair cost Recovery
PIRSA inputs: Getting to Fair cost Recovery

Recovering a fair

cost for PIRSA

programs

WHO CAPTURES THE BENEFIT

Public

e.g. Community

Combination

e.g. Industry &

Community

Private

e.g. Firms/individuals

EFFICIENCY

 

OF

CHARGING

Identity

  • High

  • Attribution

  • Mechanism

Medium

Low

 

Fees and

Mix of mechanisms

charges

Levy

Fully tax-payer funded

Bringing it together – a framework for strategic thinking and decision making
Bringing it together – a framework for
strategic thinking and decision making
 
 

Step

Participants

State Government

PIRSA policy

Analytical

 

policy orientation

questions

tool

       
 
Industry, Government, “Getting to accelerated What are the appropriate Lifecycle model

Industry, Government,

“Getting to accelerated

What are the appropriate

  • Lifecycle model

 

Outcome

Universities etc.

wealth generation”

industry growth targets?

  • Industry scorecards

 
  • Monash model

Industry, Government, “Getting to sustainable What is the strategy mix Porter diamond

Industry, Government,

“Getting to sustainable

What is the strategy mix

  • Porter diamond

 

Strategy

Universities etc.

international

to build international

  • Customer research

 

competitiveness”

competitiveness?

  • SWOT/PEST analysis

 

Government

Government State Government “Getting to industry What is the appropriate Market failure assessments

State Government

“Getting to industry

What is the appropriate

  • Market failure assessments

Programs

self mobilisation”

contribution from

  • Government directions

Government?

  • Accountability framework

 
PIRSA Groups “Getting to optimal What are the priorities for Market failure analysis

PIRSA Groups

“Getting to optimal

What are the priorities for

  • Market failure analysis

 

PIRSA

market benefits”

PIRSA‟s intervention?

  • Cost benefit analysis

Programs

  • Risk assessment

  • Program evaluation

 
  • Ministerial directions

 

PIRSA

PIRSA PIRSA Groups “Getting to fair cost What is a fair level of Public/private benefit

PIRSA Groups

“Getting to fair cost

What is a fair level of

  • Public/private benefit

input

recovery”

cost recovery?

analysis

Acknowledgements and Contacts:
Acknowledgements and Contacts:

Corporate Strategy and Policy Branch of PIRSA provides professional economic analyses to assist decision makers within Government. These services typically entail the application of standard economic tools to industry or natural resource problems, analysis of the resultant

information and the development of strategy options. These analyses can be done as an input into broader PIRSA or Government submissions or inquiries, such as to PIRSA Executive, Cabinet or the Productivity Commission. Analyses are also done by Corporate Strategy & Policy instigating economic research into issues of strategic importance to the

State. These analyses seek to ensure decisions are made by Government

in the full knowledge of their economic implications for South Australian primary industries and the State economy.

Acknowledgements and Contacts: Corporate Strategy and Policy Branch of PIRSA provides professional economic analyses to assist

Contact Us: Location: 17 h Floor, 25 Grenfell Street,ADELAIDE, South Australia 5000.

Acknowledgements and Contacts: Corporate Strategy and Policy Branch of PIRSA provides professional economic analyses to assist

Phone: 08 8226 0516 (Tim Mares) E-Mail: tim.mares@sa.gov.au