KOM Tunes into Digital Media

Knowledge Oasis Muscat’s next Digital Nation seminar will be held 9:30pm, Monday 17 September at the Crowne Plaza Hotel. Backed by Ericsson, Microsoft, HP, Omania e-Commerce, SAP Arabia, OER, Infoline, Nawras, Infocomm and Times of Oman the 17 September session will tune into Digital Media.

But what exactly is digital media? According to Ibtisam Al Faruji (pictured), KOM’s Head of Marketing “it’s anything from the traditional uses of the medium for creating and sharing rich content to the explosion of blogs for self expression and increasingly real time interpretation of news and breaking events.” Digital media is also about shared content via websites like Flicr, YouTube and blip.tv and social sites such as FaceBook and MySpace. It's a concept that's booming.

Today, consumers are more than ever seeking out information rather than following blindly. “We've moved away from an age of deference to an age of reference. The emergence of blogs and wikis ('what I know is?') clearly show the demands of an increasingly sophisticated and information-hungry public and are examples of how consumers are taking power into their own hands and creating their own new and trusted sources of information. The consumer really is becoming king,” comments Al Faruji.

Consumers are exercising more control, said Infocomm’s Karim Rahemtulla. Already in the US, 70% of personal video recorder users are skipping adverts, he noted. "People want to connect to information and connect to their friends," he said. "The focus will be on highly personalized experiences." Suggesting that advertisers might be missing a trick, he added: ""Today only about 5% of global advertising is online, yet 20% of media is consumed online. This is an amazing opportunity for advertisers."


The boom in social websites like Flickr and YouTube “clearly indicate the rise in collaborative usage of the Internet” said Ericsson’s Susie Houh and supporter of the Digital Nation program. "This is a social innovation and not just a technological one," she commented. “Collaborative editing of music and video content are the next likely trends, although this will depend on free licensing and the availability of easy-to-use software,” she added.


PEIE’s Dave Pender believes that consumers of news from the media are transforming themselves into providers of information. For example, the pioneering South Korean "citizen journalism" website Ohmynews now has over 33,000 citizen reporters, though it still used professional editors too, he noted. Pender cited a recent quote from News Corporation boss Rupert Murdoch - "We tell you less, you tell us more" - to illustrate how some of the global media were engaging with the potential power of citizen journalism.


In the not too distant future "content will be delivered anywhere to a growing range of devices. Indeed, a lot of that content will be available on your mobile," forecast Infocomm’s Rahemtulla. "The scope will exist for far greater personalization of all forms of content and end users will be empowered and have greater influence, controlling how, where and at what price they consume content." The feeling among many media commentators is that traditional media players, including public service broadcasters, still have a future, as long as they can reinvent themselves.


For KOM’s Al Faruji, the key to success for TV channels, radio stations and print media still lay in content. “Given the incredible growth of digital media folk in the media industry will need to take greater risks. In the end, it will boil down to creativity, that will be a key factor.”
To attend the free of charge Digital Nation seminar send your name and contact co-ordinates to: info@kom.om


Blog contents copyright © 2006 PEIE

Play & Learn with Infocomm

Karim Rahemtulla is the Knowledge Oasis Muscat-based Singaporean entrepreneur and a leading WiFi and mobile marketing specialist, behind the top-flight m-Commerce firm, Infocomm, and the Gulf region’s first value-add infotainment portal - isurf.co.om

Rahemtulla is enthusiastic about Infocomm’s participation at this year’s GITEX exhibition. “This is a huge boost for us,” said Rahemtulla. “GITEX provides us with a world-class profiling opportunity and a chance to expand our current client base by meeting potential customers from across the Middle East and North Africa, all under one roof.”

Infocomm will be exhibiting its existing products as well as a range of new e-Learning and e-Gaming solutions and demonstrating high speed WiFi internet access and mobile marketing services. “We had a tremendous show last year signing a major deal with Saudi Arabia’s ISP 7i and we look forward to repeating that success this year,” Rahemtulla said.

The Infocomm team is particularly excited about advergaming and will be demonstrating how the mobile medium can be used to market and brand products and services. “Advergaming is the new hot topic and it’s moving from the Web to the mobile and we’re eager to share its possibilities with our clients in the region,” remarked Rahemtulla. He went on to explain how the roster of companies that are relying on Web and mobile-based games to generate marketing buzz, or recently have done so, include Nokia, which fielded an online curling game as part of its sponsorship of the Canadian Men's Curling Championship; Fox Sports, with a World Series game in which visitors tried to "hit" a virtual ball out of a virtual stadium; a mobile video game on Audi’s website that allows players to download the Audi Q7 game coupled with Audi Q7 logos; and a coalition of major fast-food restaurant chains and packaged-food companies, including McDonald's and Kraft, that seeks to help curb childhood obesity by offering kids online games that teach nutritional concepts at a new site called Kidnetic.com.

Infocomm is developing in partnership with Nexgen, Singapore’s leading mobile and PC game developers, a number of advergaming solutions. “In this regard, I’m confident that tech savvy marketers will be interested in exploring what advergaming and Infocomm can do for their brand,” commented Rahemtulla.

In addition to the advergaming concept Infocomm will also be showcasing e-Learning solutions from Educomp, one of India’s top 10 companies. Educomp is estimated to be working with 3.6 million learners across Asia and the US and has a presence in over 6,400 schools. “Educomp packages cover a raft of subjects that include physics, chemistry, English, French, geography and mathematics, “they’re highly interactive and the graphics are outstanding,” says Rahemtulla. Indeed, online education is growing rapidly in the Middle East. For example, the market in Saudi Arabia alone is expected to increase at a compound average growth rate of 32%. “The region’s expanding academic sector represents a substantial market for e-Learning, from secondary to tertiary and we’re keen to capitalize on these opportunities,” says the Singaporean entrepreneur.

Big Business Idea Competition Fuels Innovation

The 2nd TKM – Ernst & Young Big Business Idea Competition (BBIC) was launched Monday 9 July at Knowledge Oasis Muscat (KOM) under the patronage of HE Ahmed Al Dheeb, Under Secretary for Commerce & Industry, Ministry of Commerce & Industry.

"Last year's competition attracted over 70 entries from local entrepreneurs, business people and academics, we were delighted with the response and expect a larger number of entries to be submitted this year," said Abdullah Al Jufaili, Director, The Knowledge Mine (TKM) incubator program. Sponsored by Ernst & Young, Ericsson, Nawras, NCR, Infocomm and GroFin Oman, the competition is viewed by many in Oman’s business and public sector circles as a launch pad for participating entrants to successfully raise investment for their commercial ventures.

Although the competition is limited to Omani nationals the organizers welcome entries from individuals, teams, students and entrepreneurs. According to Al Jufaili, "anyone with a good, innovative idea for a technology-driven business should think about participating in the Big Business Idea Competition.'"

In partnership with Ernst & Young, Ericsson, Nawras, GroFin Oman, Infocomm and NCR, TKM will run a series of pre-competition workshops at the Ernst & Young offices in Qurum and at KOM. “The 10 workshops will cover business plan writing, attracting finance, developing a marketing strategy and the importance of technology in the small business environment. We've also arranged for start up firms operating in TKM to give workshops on their personal experiences, what it means in real terms to set-up and run a business. Full details on these can be seen on www.kom.om/bbic," remarked Al Jufaili.

Commenting on their success in the 2006 Big Business Idea Competition, Zawan Al Sabti, Co-founder of tourism portal Qumriyat: "Winning last year's BBIC was huge for us. Since picking up the award we've received a tremendous amount of guidance and PR support from the TKM management. Moreover, we've been contacted by people who want to hear more about our business concept and the technology we're using. The feedback has helped us build an even stronger business model."

"There's compelling market potential for what Qumriyat is doing," said Mohammed Al Maskari, KOM's Director General. "There’s a large tourism market out there, and their technology can be applied to multiple aspects of the industry. It's certainly not a one hit wonder in its potential," he added. "They’re a young, educated and energetic team and they’ve a great plan on how to proceed."

“The three women that make up the Qumriyat team are typical of the hi-tech entrepreneurs we see operating on KOM. In fact, entrepreneurship is a key driver of our economy,” said Al Maskari. “It’s not just wealth but a high proportion of jobs that are created by small businesses – businesses that are started by entrepreneurially minded individuals, many of whom go on to create much bigger businesses. It’s obvious to me that if we foster a robust domestic entrepreneurial culture we’ll maximize individual and collective economic success. It’s with this in mind that we initiated the TKM – Ernst & Young Big Business Idea Competition in 2006. In simple terms, we want to help spread the word of innovation and entrepreneurship particularly among the youth,” commented the KOM Director General.

“We’ve seen from our own experience with manufacturers on PEIE estates and ICT firms on KOM that small firms are dynamic agents of change within the economy,” he added. The creation and growth of small firms helps drive productivity through a competitive spur to other businesses, to improve their efficiency and seek quality improvements. Small firms drive innovation by being flexible and willing to experiment. Nearly half of small firms with between 10 and 50 staff are active innovators. They are a crucial source of new products, services and processes in our economy.

It’s initiatives like the TKM – Ernst & Young Big Business Idea Competition that will help Oman create small businesses, generate employment and show youngsters that it’s perfectly feasible to have an idea and set up a business. "It’s critical for the Omani economy that we get youngsters thinking more creatively about business and getting them interested in the enterprise culture. That’s got to be good for everyone,” concluded Al Jufaili.

Entrants have until 9 September to enter their business plan. The four entrants with the best plans will be invited to present at the TKM – Ernst & Young Big Business Idea Competition Gal Dinner on 22 October. The most fundable business plan will earn its writers a prize of RO6,000 and 12 months rent free office accommodation in TKM.
Blog contents copyright © 2006 PEIE

2007 Big Business Idea Competition Launch

The 2nd TKM – Ernst & Young Big Business Idea Competition (BBIC) will be launched 10:00am on Monday 9 July at Knowledge Oasis Muscat (KOM) and under the patronage of HE Ahmed Al Dheeb, Under Secretary for Commerce & Industry, Ministry of Commerce & Industry. This is the largest such competition in Oman and is now well established as a prestigious launch pad for new science and technology businesses.

"Last year's competition attracted over 70 entries from local entrepreneurs, business people and academics, we were delighted with the response and expect a larger number of entries to be submitted this year," said Abdullah Al Jufaili (pictured), Director, The Knowledge Mine (TKM) incubator program. Sponsored by Ernst & Young, Ericsson, Nawras, NCR, Infocomm and OER, the competition is viewed by many in Oman’s business and public sector circles as a launch pad for participating entrants to successfully raise investment for their commercial ventures.

Although the competition is limited to Omani nationals the organizers welcome entries from individuals, teams, students and entrepreneurs. According to Al Jufaili, "anyone with a good, innovative idea for a technology-driven business should think about participating in the Big Business Idea Competition.'" The idea should be original or a significant improvement on an existing business. "The 9 July launch will be an excellent opportunity for people to learn more about the competition and what it means to initiate a start-up company,” remarked the TKM Director.

“If you’re new to business and creating a business idea, you will learn a lot by participating in the Big Business Idea Competition. Entrants will receive high-level feedback on their business idea and the chance to learn more about processes of business. We believe that the competition is a highly-prestigious platform for successful new venture creation – it offers entrants access to networks, training and valuable contacts and it helps further understanding of the investment process and what constitutes a realistic marketable idea,” said Karim Rahemtulla, CEO, Infocomm and a sponsor of the competition.

Dave Pender, Advisor, Public Establishment for Industrial Estates, explained that the perfect business plan doesn’t exist because each business plan has to be designed for its particular function. His advice to BBIC entrants on pitching an idea to investors: "You’re selling futures and building credibility, so if they don’t believe in you they won’t believe what you tell them."

In partnership with Ernst & Young, Ericsson, GroFin Oman, Infocomm and NCR, TKM will run a series of pre-competition workshops at the Ernst & Young offices in Qurum and at KOM. “We'll be announcing the free of charge workshop schedule on 10 June. In fact, free access to experts from Ernst & Young, Ericsson, GroFin Oman, Infocomm and NCR is an opportunity that doesn’t come along everyday,” commented the TKM Director. The workshops are intended to help would be entrepreneurs look at what it means to research and write a business plan plus how to use the business plan to raise investment for the business.

Entrants have until 9 September to enter their business plan. The four entrants with the best plans will be invited to present at the TKM – Ernst & Young Big Business Idea Competition Gala Dinner on 22 October. The most fundable business plan will earn its writers a prize of RO6,000 and 12 months rent free accommodation in TKM.


Blog contents copyright © 2007 PEIE

Smart Manufacturing Conference Report

Ever since the industrial revolution, manufacturing has been about new ideas, new science and new technologies - applied to creating new products and processes.

Introduction
This Report is a result of PEIE’s annual Smart Manufacturing Conference held 15 – 16 April 2007 at the Crowne Plaza Hotel, Muscat, Sultanate of Oman.

PEIE's Marketing Department would like to acknowledge those that provided feedback on this Report, these include: Nick Pattison; Mark Eaton; Chris Ward-Brown; Chris Clark; Dr. Fabio Scacciavillani; S.Gopalan; Susie Houh and Amrou Al Sharif.

We would also like to acknowledge the support and sponsorship of this conference by Ericsson; Oracle; Muna Noor Manufacturing & Trading; Reem Batteries; Oman Economic Review; Times of Oman; Oracle; Agility; Omani Marble Company; Jotun; Al Watan; Infocomm Group; isurf.co.om; Al Mudhish; GOIC; Al Buraimi Group; Gulf Industry; Videocon; OCIPED; RealityCG; Future Pipe Industries; Oasis Water; Khimji Permoglaze; and Gulf Air.

Goal
The overall goal of this Report is to identify activities that can strengthen the competitive performance of Oman’s manufacturing sector. In this regard, PEIE wishes to help Oman’s manufacturing sector develop the following characteristics:

Higher levels of awareness and investment in workforce development and stronger levels of demand for learning and skills support.
Improved awareness and application of innovative working practices across all areas of business operations. (emphasis on R&D)
Increased productivity levels.
Improved awareness of and access to international markets
Improved awareness of design, marketing and information communication technologies (ICT).
Access to an improved telecommunication infrastructure on PEIE estates that supports a modern, forward looking and innovative manufacturing sector.
A more positive image of manufacturing among young people.
Improvement of financial support services for the industrial sector.

Scope
This Report contains seven (7) conceptual issues which PEIE is asking a range of partners to comment on as part of a collaborative filtering process to help support the development of Oman’s manufacturing sector. This Report aims to create a collaborative national response to the seven (7) issues identified below and help sustain the development of the sultanate’s manufacturing sector.

1. Access to International Markets
2. Innovation & Design
3. Skills & Education
4. ICT & e-Commerce
5. Access to Finance
6. Image
7. Sites & Premises

Basic Manufacturing Figures
According to figures released by the Sultanate of Oman’s Ministry of Commerce & Industry, Directorate General of Industry: Industrial Statistics (Features of the Manufacturing Sector: Large & Medium Industries 2005) the number of large and medium-sized businesses with industrial registration - employing more than nine (9) workers - totalled 519, this represents a rise of 38% in 2005 versus 16% in 2004. In 2005, the manufacturing sector contributed 8.5% to GDP compared to 4.7% in 1995. Manufacturing is expected to contribute 15% of GDP by 2020.

In 2005 the total number of workers employed in Oman’s large and medium-sized manufacturing sector stood at 36,743, an increase of 5% on figures released for 2004. The number of Omani nationals employed in Oman’s large and medium-sized manufacturing sector totals 13,224, representing 38% of the sector’s workforce.

The Challenges
Oman-based manufacturers face a range of challenges in today's increasingly competitive environment. Some of these are external, for example, exchange rates, transport, communication and raw material costs, others are internal where manufacturers have the opportunity to take the initiative to drive change forward in areas such as innovation; design; marketing; training; finance; technology transfer; ICT; and logistics.

The challenges Oman’s manufacturing sector seeks to address should not be seen as threats, but rather as opportunities. Oman has many manufacturing success stories, where companies are competing internationally, not just on price, but by adding value using innovation, higher skills, investment and good business practice to create goods and services that people want to buy. From fibre optic cables, batteries, luxury perfumes, automotive spare parts, marble, furniture to food production, Oman has world class manufacturers. The challenge for the sector is for more companies to match the performance of the best.

1. Access to International Markets
International trade is an important economic activity for Oman, generating wealth, encouraging innovation, productivity and creating employment. However, despite recognising the opportunities afforded by international trade it is reasonable to believe that there are a significant number of Oman-based manufacturers that are failing to achieve their full international trading potential. The main reasons for this include:

o Insufficient export knowledge, market-entry advice and information.
o Lack of understanding of the available international trade services, market opportunities and the processes involved.
o Lack of skilled staff, particularly those with management, technical and marketing skills, to develop international markets.
o Limited access to appropriate finance.
o Language and cultural barriers.
o Confusion over how to deal with international paperwork.
o Belief that there are enough opportunities to trade in the domestic market.

For those manufacturers already buying and selling internationally, the biggest challenge facing them is finding the right partners and markets to do business with. Other challenges include: transactions, distributors and logistics/freight.

Recommendation
To help Oman-based manufacturers trade internationally, and in partnership with the Export Credit Guarantee Agency, the Oman Chamber of Commerce & Industry, the Ministry of Commerce & Industry and Oman Development Bank, PEIE proposes to launch and publicize an online guidance service on www.peie.om where manufacturers can access information on the issues mentioned above. The core of the service is to give a plain explanation of the processes involved in international trade. In brief, if trade barriers are removed, the number of Omani manufacturers trading overseas will increase.

2. Innovation & Design
Manufacturers are having to become more innovative in response to more sophisticated consumer expectations as customers demand, not just lower prices but higher quality and better designed products. Indeed, innovation is a vital ingredient for improved competitiveness and productivity within Oman’s manufacturing sector.

Improved commercialisation of products and services, better product and market diversification and a greater focus on product design to increase quality and differentiate from competitors are all acknowledged as critical success factors in improving innovation performance to create competitive advantage.

Innovation performance will be enhanced by improved recognition of the opportunities that it presents and the benefits it brings. Oman’s best manufacturers match the best in the world in new product development, innovative production processes, marketing and services. Far more Oman-based manufacturers need to match the performance of the best.

Innovation is a key issue for this Report, but it needs to be tackled in a way that has real meaning for manufacturers, particularly small firms. As a catch-all term, many manufacturers do not relate easily to innovation. They may identify more readily with terms such as product development, technological innovation, R&D and process innovation.

New technologies offer significant benefits to stimulating innovation but also underline the threat to competitiveness if Oman-based manufacturers fail to invest in them as rapidly as competitors in other parts of the world. To access the benefits of innovation, Omani manufacturers need greater guidance on what can be achieved with new technologies.

On an environmental note, Oman-based manufacturers need to be more innovative vis-à-vis environmental regulations and sustainable manufacturing. Today, these are not just moral issues for manufacturers, but also, potentially, rich and dynamic features which differentiate them commercially from competitors and provide new market opportunities. Domestic and international consumers are increasingly demanding more than a product - many look more closely at the manufacturer and what it stands for, for example, overcoming the 'throw away' culture, re-configuring products to be more environmentally friendly. It is in this regard that innovation plays an important role in how the manufacturer and its product(s) are perceived and received in the marketplace.

Recommendation
PEIE proposes to set-up Design 4 Manufacturing, an initiative that would bring together designers and manufacturers. Design 4 Manufacturing will build on the important relationship between designers and manufacturers and help manufacturers develop design briefs, source designers to fulfil the briefs, help designers to think about design from a manufacturer’s point of view and help both sides with marketing information. The Design 4 Manufacturing initiative would be supported by advice from the UK’s Design Council – helping PEIE demonstrate to manufacturers that good design can raise profitability and the quality of goods. In brief, Design 4 Manufacturing aims to help Oman-based manufacturers improve their competitiveness and find new markets by improving product design. Moreover, the initiative - through guidance from the Design Council - would encourage UK-based design firms to partner/mentor young Omani designers.

3. Skills & Education
Manufacturers under-invest in training. However, whilst a very large proportion of small manufacturers provide no training at all, those that do train undertake as much proportionally as larger firms. Most of those who do no training at all are generally absorbed with surviving from day-to-day and are therefore difficult to engage.

Skills needs include customer care, ICT, product assembly, marketing, design, strategy, management and team working. Although precise requirements vary from sector to sector, they are significant for their broadly generic, cross sectoral characteristics.

Skills and education issues of specific concern to Oman-based manufacturers include:

o Changing the mindset of employers towards management and workforce development, in effect, stimulating a culture change.
o Tailoring training programs that meet the needs of employers, particularly smaller manufacturers.
o Promoting the importance of training within the manufacturing environment to offer smaller firms a more flexible solution to workforce development.
o Promoting the role of Oman’s Higher Education in providing training and R&D support to manufacturers.
o Enabling young people to make informed decisions about a career in manufacturing by speaking to real people working within the sector.
o Adopting a long-term training and capacity building strategy for manufacturers

Recommendation
It is suggested that PEIE establish and support through the Oman Manufacturing Group (OMG) a Network of Manufacturing Ambassadors. The Network would be used to promote broader aspects of manufacturing within Oman’s schools and colleges. It would also be used for media purposes for frontline manufacturing stories.

If we are to raise the economic impact realised through available training and R&D, we need to raise the profile of the available resources and knowledge Oman has that can benefit manufacturing and identify where such resources reside. It is suggested that a domestic database of training, research and R&D resources be developed, maintained and placed on http://www.peie.om/

Promoting manufacturing to young people and generating media interest is important to the future success of Oman's manufacturing sector. Therefore, PEIE recommends that a Manufacturing Week be created - this would coincide with the Ministry of Commerce’s Day of Industry – and consist of school and college visits to industrial estates; students to experience managing a production facility; PEIE’s annual Smart Manufacturing Conference; radio and TV interviews with leading manufacturers; manufacturing podcasts; a student product design competition; an exhibition of final year tertiary projects related to manufacturing; and a B-2-C exhibition of Omani products.

4. ICT & e-Commerce
It is apparent that manufacturers are failing to invest sufficiently in technology, causing them to lose productivity and market share. A wider integration of ICT by manufacturers throughout Oman would significantly contribute to improve effectiveness and productivity and could potentially revolutionise and maximise processes and firms in a number of key sectors. Indeed, research clearly links ICT with productivity.

Recommendation
To harness the potential of ICT in manufacturing it is suggested that a Network of ICT advisers be formed - this could be achieved through the Information Technology Authority and PEIE’s ICT partners.

A Network of ICT advisers would deliver front line advice to manufacturers to help them understand the use of ICT, to help them open up new markets, gain new business, improve chances of trading internationally, use e-Commerce for commercial advantage - such as with customer orders and financial transactions made electronically - customer information management and reducing running costs.

In addition, ICT advisers would help manufacturers keep up with the latest technologies, such as broadband, Bluetooth and WiFi, providing expert, impartial and, importantly, jargon-free advice on exploiting them to the best advantage for manufacturers.

Broadband Internet access will continue to play a pivotal role in helping Oman’s manufacturers fully exploit ICT. As the service becomes increasingly available in the sultanate, ICT advisers would be on-hand to show manufacturers the benefits the technology has for their business and, importantly, help manufacturers successfully use the technology.

In addition to the broad ICT themes outlined above, there would also be a demand from Oman-based manufacturers for PEIE in partnership with the Network of ICT advisers to organize events/training programs around the following topics:

o Consumer Packaged Goods (CPG): Helping CPG manufacturers free up cash through operational excellence so they can invest in new innovative products.
o Enterprise Resource Planning: Helping manufacturers become more collaborative and integrate entire operations and extend their supply chain.
o Supply Chain: Helping manufacturers understand supply chain integration, visibility and collaboration to increase response time, decrease production, distribution and channel costs, and increase customer satisfaction, service and response time.
o Product Lifecycle Management: Helping manufacturers focus on product lifecycle management (PLM) environment for end-to-end collaborative PLM business and the IT issues involved in this process.
o Radio Frequency Identification (RFID): Low risk RFID solutions that enable standards-based, next-generation supply chain functionality.

5. Access to Finance
Finance is readily available. The problem is that manufacturers (mainly small manufacturers) do not come forward with adequate proposals. Indeed, business plans submitted to banks (commercial and development) are often vague in nature. Further work is required on educating manufacturers on the process of applying and securing finance. On the other side, traditional banking practices are not adequate to spur and sustain new companies because the risk management of green field projects cannot be done through commercial lending practices. Finally, entrepreneurs face too much red tape and therefore the launch of new businesses is mired by regulatory hurdles that hamper the entrepreneurial spirit.

Recommendation
It is suggested that PEIE take the lead in developing a clear overview of all the finance schemes available to Oman-based manufacturers and ensure that the services and products offered, and the conditions that apply, are effectively communicated to manufacturers. This could be achieved in print and on the web (www.peie.om)

Through the proposed Task Groups (see below) it is suggested that PEIE brings the various finance stakeholders together to develop a joint agenda to help finance Oman-based manufacturers. The key stakeholders in this process would include:

o SME Department at the Ministry of Commerce & Industry
o Commercial Banks
o Business Angels
o Private Equity Investor Networks
o Venture Capital Funds
o Oman Development Bank

6. Image
Despite the renaissance of Oman’s economy the image of the sultanate’s manufacturing industry still lags behind the reality.

In particular, there is a lack of awareness and understanding among students, teachers and parents of what Oman’s modern manufacturing sector looks like and the potential it offers for rewarding career progression. Many people see manufacturing as noisy and dirty and yesterday’s industry. For example, oil and gas, tourism, banking and public sector employment present, on the face of it, more exciting and rewarding opportunities for young Omanis. There is also a particular need to attract more women into manufacturing. Whilst numbers have grown the proportion of women in manufacturing is still low.

Whilst the modern face of manufacturing has undoubtedly changed, its image has not kept up with this change. This message needs to be reinforced with a wide range of key target groups which include: policy makers in the public sector, the media, students, parents, teachers and investors. Oman’s manufacturers have an important role to play in helping to change perceptions; more self-promotion is needed and firms need to engage more with the education sector.

Recommendation
An information campaign – consisting of events such as OMG seminars as well as print and web based activities - is required to change the out-dated perception of the sultanate’s manufacturing sector as being low paid, low skilled, dirty, unimaginative, with poor working conditions and bad prospects. The reality is closer to a clean working environment, with good career prospects, rising skill levels and rising pay levels. The target audiences would not only be the potential workforce but also those in a position to advise and influence them, including parents, teachers, university staff and high-profile public sector figures.

7. Sites & Premises
Manufacturing has become increasingly mobile and firms have many options on where to locate, both within Oman and internationally. In this regard, there are several issues which confront manufacturers:

o The availability of hi-tech infrastructure to meet the needs of modern manufacturing.
o The provision of fit for purpose premises for manufacturing start-ups, inward investors and businesses seeking to expand.
o The physical environment on PEIE industrial estates where many manufacturers operate and the need to improve their appearance and security.
o The planning regime and the need to strengthen links between PEIE and its tenant base to address issues of concern.

Recommendation
PEIE already carries out an annual tenant feedback questionnaire. However, response rates are poor. A more aggressive approach is required to circulating the questionnaire, collecting data and responding to tenant needs.

Taking the Discussion Forward

Partnerships
PEIE maintains strong domestic and international links with stakeholders actively involved in the manufacturing sector. It is through these links that we propose to take this Report forward.

Notable examples include PEIE’s current links to: Cambridge University and the Institute for Manufacturing; Coventry University; Middle East College of Information Technology; Waljat Colleges of Applied Sciences; Sultan Qaboos University; OCIPED; GOIC; Information Technology Authority; Hewlett Packard; Omania e-Commerce; Nawras; Cisco; SAP Arabia; Microsoft; Ericsson; Oracle; Khimji Permoglaze; Omani Marble; Jotun; Oman Cables Industry; Al Watan; Gulf Industry; Times of Oman; Oman Economic Review; Agility; Oasis Water; Oman Cables Industry; Reem Batteries; Al Buraimi Group; Infocomm Group; Videocon; Al Mudhish; GroFin Oman; Future Pipe Industries; and Muna Noor Manufacturing & Trading.

OMG Working Groups
Through OMG, it is suggested that six (6) Task Groups be established to oversee the development and implementation of the issues raised in this Report. The Groups will consist of public sector members, manufacturers and private sector partner organisations.

Activities are broken down into six (6) Task Groups:

1. Skills & Education
2. ICT & e-Commerce
3. Innovation
4. Design
5. Sector Image
6. Finance & International Trade

OMG Working Groups would not work in isolation - an important feature of the key issues which they will tackle and the actions which will arise is their ability to interconnect. Therefore, the six Task Groups will work in effect as a team to ensure that actions are closely co-ordinated.

Milestones
The principal milestones for this Report are:

Assemble six (6) Task Groups, agree terms of reference, modus operandi etc: September 2007
Formal launch: Oman Manufacturing Group meeting with Minister of Commerce & Industry and CEO, PEIE: October 2007
First Report from the six (6) Task Groups: January 2008

Blog contents copyright © 2007 PEIE

Ericsson Boosts TKM Mentor Program

The Knowledge Mine (TKM) business incubator program based at the Rusayl Technology Park, Knowledge Oasis Muscat (KOM), announced today that Ericsson will join the incubator’s growing list of high-profile mentors.

According to Abdullah Al Jufaili, TKM Director, “the incubator acts as a business hub, encouraging growth, quality jobs and economic diversity in Oman.” As tenants, start-ups enjoy modern premises, broadband and access to top line business advice and support. “We’re thrilled to welcome Ericsson to the TKM mentor program, they’ll add substantial value to the composition of the incubator,” says Al Jufaili. In addition to Ericsson, TKM tenants also receive mentoring support from: Trowers & Hamlins; Ernst & Young; KPMG; Talal Abu Ghazaleh Intellectual Property; and GroFin Oman.

“KOM recognises the important role that incubators play in developing the enterprise, supporting new businesses and in enhancing innovation. Research clearly indicates that 80% of businesses that start in incubators are still in business after five years compared with only 33% which do not have such support,” says Mohammed Al Maskari, KOM Director General.

The twelve start-ups based in TKM benefit from practical mentoring sessions that help their businesses develop and drive forward. From expert advice on finance, telecommunications, IPR, technology, accounting, business development, strategy to innovation plus the invaluable networking opportunities offered by KOM, start-ups in TKM enjoy an excellent and fertile working environment,” comments the TKM Director.

“We’re proud to be associated with TKM and its tenants. This further proves Government commitment and ambition to create the right environment for success and provide the incentives to encourage innovation and growth in the enterprise sector. Indeed, TKM is the type of facility that allows entrepreneurs to produce innovative products and services. Our involvement also helps Ericsson contribute to Oman’s social and economic development,” explains Ericsson’s PeterAndersson (pictured above with Mohammed Al Maskari).

“The Government believes KOM plays a significant role in facilitating growth of the high-tech industry in Oman. Moreover, it is fully committed to developing a knowledge-driven economy where TKM contributes in achieving this aim by exploiting available knowledge and technology through its close cooperation with blue chips such as Ericsson as well as with domestic and international tertiary institutes,” comments Al Maskari.

Blog contents copyright © 2006 PEIE

Where the Web's Heading?

Knowledge Oasis Muscat (KOM) will host its quarterly Digital Nation Seminar on 10 June at the Crowne Plaza Hotel, Muscat. Backed by Microsoft, Ericsson, Nawras, OER, HP, Infocomm, SAP Arabia, Times of Oman and Omania e-Commerce the topic for this quarter's seminar is Ramping Up Internet Usage and Content. The 10 June panel will be moderated by Graham Porter of Cisco and includes Dr. Mohammed Al Wohaibi, CEO, Omantel, Dr. Salim Al Ruzaiqi, CEO, Information Technology Authority (pictured left) and Ross Cormack, CEO, Nawras.

"The Internet has brought an explosion of creative ideas which are still being developed. Today, the Internet carries much of the information created by man and that's increasing all the time with libraries around the world digitising their content and putting it online so that you're able to read Ibn Majid's poem Hawiya in your living room - even print off a copy. That's exciting and it's up to organizations such as KOM to spread that excitement and encourage people to log on and use the Internet," says Mohammed Al Maskari, KOM's Director General.

"I fully expect the Internet to become ever more personalised", suggests Karim Rahemtulla, CEO, Infocomm and a Digital Nation panelist. "It's all going to be about how you want to see it, what you need from it and what you can contribute to it. For example, development of an intelligent speech interface will mean you'll be able to search for information on a particular topic, analyse it, collate it and present bullets from the top ten most relevant sources. That kind of power is undoubtedly going to change how Oman-based citizens live, work, study and play."

From a business perspective, and according to KOM's Director General, the Internet has triggered a quantum leap in productivity and new possibilities. Today, Oman-based companies have unparalleled access to information. A few years ago you stood out from the crowd if you were on the Internet. Now you're out in the cold if you're not.

"The Internet is changing lives," says KOM's Ibtisam Al Faruji. Indeed, it's radically transforming the way citizens and government communicate with each other and the newly-created ITA is leading the way on this front. "In the not too distant future, the Internet will be the main medium through which we live our lives. As long as connectivity options increase and get faster, we'll see the convergence of the web and audio visual media, to such an extent that the Internet will look more like TV than anything else."

But there are challenges with regard getting Oman-based citizens and firms interested in and using the Internet. "We're still lacking sufficient local content," remarks Al Maskari. However, research clearly demonstrates that the best way to get people learning about the Internet is to get them using it, and the best way to motivate them is to get them using it for something they're interested in. "Contrary to what a lot of people believe, the Internet isn't just about youngsters and techies, we can get older folk interested in the Internet by showing them how to use it to research their family's history, build a family tree and find old pictures of their town or village. At the other end of the age continuum, we can encourage teenagers to use the web using social sites such as isuf.co.om; www.youtube.com; www.myspace.com and Google's www.orkut.com. Parents can be encouraged to help their children with homework assignments by surfing the Internet for relevant information. It's amazing how motivated people become when they realize what the Internet offers them."

The Digital Nation seminar series (www.kom.om/ev.html) is free of charge and open to all. To register, e-mail your name and contacts to: Ibtisam@kom.om

Blog contents copyright © 2007 PEIE

More on Ramping Up Internet Usage

In an effort to discuss the spread of the Internet in Oman and the ramping up of its usage, Knowledge Oasis Muscat (KOM) will host its quarterly Digital Nation seminar on Sunday 10 June at the Crowne Plaza Hotel.

According to Ibtisam Al Faruji, KOM's Head of Marketing: "The 10 June seminar has attracted a superb line-up of IT and telco experts, these include: Dr. Mohammed Al Wohaibi, Omantel, Dr. Salim Al Ruzaiqi, Information Technology Authority; Karim Rahemtulla, Infocomm Group (pictured), Tarek Khorshid, Omania e-Commerce; Dr. Irfan Ahmad, Yahoo!; Dr. Roger Hage, Ericsson; Graham Porter, Cisco; Peter Honore, Nawras; and Dr. Sherif Aziz, Middle East College of Information Technology.

Access to goods, services and information, to say nothing of employment and ways of communicating, is increasingly dependent on your ability to access and use information technology and the Internet. But how are people expected to learn about, and access such technology? Many assume that it is only a matter of time until everyone in Oman will have access to the Internet from their home.

However, there are reasons for doubting whether such a scenario is plausible in the short-term. Universal infrastructure provision looks unlikely in rural areas. Meanwhile the cost of computers, modems and links to the Internet service provider remains a substantial investment for many people. The effective use of technology also requires appropriate skills, know-how and information services in addition to access itself.

In this context fears have been expressed about the creation of a group of information poor: that section of the population excluded from the information society. Such social exclusion is not simply a consequence of lack of funds. It may also be due to a lack of training and other support networks to learn about the potential of technology and the Internet and to provide a context in which people feel comfortable using it. It can also come about from an absence of services and content tailored to the needs of particular groups or to the ways in which they want to access information.

"The Digital Nation seminar will also be looking at the importance of high speed Internet to Oman's business community", said Al Faruji, "small businesses are the backbone of our economy. A large proportion of these businesses employ less than 10 people. Indeed, access to high-speed Internet is essential for both businesses and communities of the future. It's all about how change is going to happen. Just as the lack of a decent road hindered the development of villages and businesses in the past, so all communities will have a more limited future and won't flourish without broadband."

"We need to extend broadband faster as it benefits both businesses and communities," says Mohammed Al Maskari, KOM's Director General. "Broadband isn't just about being able to download from a Website faster - a dependable, always on, fast Internet connection will have an enormous impact on Oman's prosperity and quality of life. These are just some of the issues the panel will be tackling on the night of the 10th," says Al Maskari.

The Digital Nation Seminar and Dinner are free of charge, to attend e-mail your name and contact co-ordinates to: Ibtisam@kom.om

Blog contents copyright © 2006 PEIE

2007 Big Business Idea Launch

The 2nd TKM – Ernst & Young Big Business Idea Competition (BBIC) will be launched on Sunday 1 July, 8:00pm at the Crowne Plaza Hotel, Muscat. This is the largest such competition in Oman and is now well established as a prestigious launch pad for new science and technology businesses.

"Last year's competition attracted over 70 entries from local entrepreneurs, business people and academics, we were delighted with the response and expect a larger number of entries to be submitted this year," said Abdullah Al Jufaili, Director, The Knowledge Mine (TKM) incubator program. Sponsored by Ernst & Young, Ericsson, GroFin Oman, NCR, Infocomm and OER, the competition is viewed by many in Oman’s business and public sector circles as a launch pad for participating entrants to successfully raise investment for their commercial ventures.

The 1 July launch will include a brief on the competition, a presentation by Ernst & Young plus a talk by Dr. Firas Al Abduwani, Founder and CEO of Hussam Technology, a telecommunications start-up firm based in the TKM.

Although the competition is limited to Omani nationals the organizers welcome entries from individuals, teams, students and entrepreneurs. According to Al Jufaili, "anyone with a good, innovative idea for a technology-driven business should think about participating in the Big Business Idea Competition.'" The idea should be original or a significant improvement on an existing business. "The 10 June launch will be an excellent opportunity for people to learn more about the competition and what it means to initiate a start-up company,” remarked the TKM Director.

“If you’re new to business and creating a business idea, you will learn a lot by participating in the Big Business Idea Competition. Entrants will receive high-level feedback on their business idea and the chance to learn more about processes of business. We believe that the competition is a highly-prestigious platform for successful new venture creation – it offers entrants access to networks, training and valuable contacts and it helps further understanding of the investment process and what constitutes a realistic marketable idea,” said Karim Rahemtulla, CEO, Infocomm and a sponsor of the competition.

Dave Pender, Advisor, Public Establishment for Industrial Estates, explained that the perfect business plan doesn’t exist because each business plan has to be designed for its particular function. His advice to BBIC entrants on pitching an idea to investors: "You’re selling futures and building credibility, so if they don’t believe in you they won’t believe what you tell them."

In partnership with Ernst & Young, Ericsson, GroFin Oman, Infocomm and NCR, TKM will run a series of pre-competition workshops at the Ernst & Young offices in Qurum. “We'll be announcing the free of charge workshop schedule on 10 June. In fact, free access to experts from Ernst & Young, Ericsson, GroFin Oman, Infocomm and NCR is an opportunity that doesn’t come along everyday,” commented the TKM Director. The workshops are intended to help would be entrepreneurs look at what it means to research and write a business plan plus how to use the business plan to raise investment for the business.

Entrants have until 9 September to enter their business plan. The four entrants with the best plans will be invited to present at the TKM – Ernst & Young Big Business Idea Competition Gal Dinner on 22 October. The most fundable business plan will earn its writers a prize of RO4,000 in cash and twelve months rent free accommodation in TKM.

Blog contents copyright © 2006 PEIE

Ramping Up Internet Usage And Content

The development of broadband systems and content across Oman is essential if the sultanate is to maintain and expand its profile as a key site for inward investment. Not only are broadband technologies required for companies, particularly those in the media, design, manufacturing, oil and gas, tourism, education and IT sectors, but constant, high quality internet access is also increasingly in demand by the general public for the speedy, efficient internet service it provides.

The Digital Nation Series organized by Knowledge Oasis Muscat (KOM) in partnership with Ericsson (Roger Hage pictured), Microsoft, HP, Infocomm, SAP Arabia, Omania e-Commerce, Nawras and OER will hold a seminar on Sunday 10 June at the Crowne Plaza Hotel, Muscat that will focus on Ramping Internet Usage in Oman. The panel will discuss broadband services and the development of local content and their importance to Oman’s economic development.

According to Mohammed Al Maskari, KOM’s Director General, broadband content and applications underpin innovation and skills development in Oman, develop new markets and produce step changes in productivity. Business will need to exploit to the full the potential of broadband applications and content, if it is to remain competitive in the long-term. This is not a single step process – our competitors across the world are seeking to gain the same advantage, so we need to run fast even to stay in the same place competitively.

With regard education and training, Karim Rahemtulla, CEO, Infocomm and a panelist at the 10 June Digital Nation seminar says broadband content has the potential of transforming the learning experience, improving co-operation between educational institutions, maximising their efficiency and the service they offer students and widening access to education. This will only have a positive impact for those engaged in full or part-time study.

It is also acknowledged that the public sector has a major role to play, both as a large customer and as a channel for aggregation of broadband demand, pushing broadband usage and capacity to new levels. In partnership with the private sector there are great opportunities in areas such as e-Health and e-Government to drive up the efficiency of the public sector and improve the service that the public sector provides to Oman’s citizens.

Developing local broadband content can also empower communities stimulating social and economic activity and preserving the vitality and life of local communities, suggests Rahemtulla. Creating and rolling out local content in the community context could be a major lever towards getting late Internet adopters signed up and participating.

The importance of broadband in contributing to Oman’s overall economic and social development cannot be underplayed. The level of investment in Oman’s telco infrastructure has already been substantial. Indeed, with the increasing availability of broadband infrastructure the next stage is take-up and exploitation by businesses, the public sector and consumers, which will in turn drive greater levels of engagement.

According to Al Maskari, awareness of the central role that content and applications need to take in the successful exploitation of broadband is growing and is reflected in the work of the Information Technology Authority. Content, whether a business tool, entertainment, a community portal or e-learning, is neither more nor less important than infrastructure – it is simply integral. It is important that any strategies for further broadband development across Oman fully take this into account, suggests the KOM Director General.

Broadband internet access and content will be the cause of profound economic and social change through the rest of this decade and will impact on all aspects of Oman’s economy, affecting growth, productivity and business competitiveness. This is why KOM has created the Digital Nation series, we want to engage the community in dialogue and discuss the technology issues that are shaping our world and the impact they are having, comments Al Maskari.

OMG Talks Strategy

Any decision to implement an e-business solution, launch a marketing campaign, re-think logistics or invest in IT hardware should always be led by the company's business strategy. In fact, to get the most from any new business initiative it must fit with the company's overall strategy, says Eng. Hamad Al Harthy, Director General, Rusayl Industrial Estate.

"Developing a strategy is an integral part of starting and running a manufacturing business. Indeed, a clear and well defined strategy will help turn a great idea into a successful business," says Eng. Al Harthy. But how often do we hear owner-managers say they haven't got the time to sort out their priorities and establish a business strategy? Like so many SMEs they're consumed by the day-to-day demands of running a business. As a response to this the Oman Manufacturing Group (OMG) -www.peie.om/omg.asp - will hold a seminar on Developing a Manufacturing Strategy, 7:45pm, Sunday 20 May at the Crowne Plaza Hotel, Muscat.

According to Ibtisam Al Faruji, Head of Marketing at the Public Establishment for Industrial Estates (PEIE) "the 20 May OMG seminar is intended to help the ultra-busy manufacturer stand back from their immediate problems and concerns and reflect on the importance of strategy, and show them how a strategy can be built and developed."

Launched by PEIE in March, OMG has been formed to share experience, advice and information to help Oman-based manufacturers achieve and manage business growth; and develop strong and effective partnerships in and outside of the sector. "Through the OMG quarterly seminar program we're aiming to provide manufacturers with the most informative and effective forum possible for all of their growth and management issues," says Al Faruji.

An outstanding array of business talent, as well as leading industry experts will form the 20 May panel. Moderated by Nick Pattison (pictured above), former MD Shell Oman Marketing (www.shell.com/home/Framework?siteId=om-en), the five panelists include: Mohammed Al Lawati, Oman Cables Industry (www.omancables.com); Basil Al Lawati, Bank Sohar (www.bankerme.com/bme/2006/jul/oman.asp); Chris Clark, Agility Logistics (www.agilitylogistics.com); Rajeev Singh, Ernst & Young (www.ey.com/global/content.nsf/Middle_East/About_Us__Oman); and Manoj Manoharan, Jotun Paints (www.jotun.com).

Uniquely, the OMG seminar program provides insider information allowing attendees to discover practical tips to help grow their business. "Every seminar is interactive offering people the opportunity to have their specific questions answered by experts who are at the leading edge of manufacturing," remarked Al Faruji.

The quarterly OMG seminar program and dinner are free of charge and open to all. To reserve a seat e-mail your name and contact co-ordinates to: omg@peie.om

Blog contents copyright © 2007 PEIE

Talent Magnet

The concept of attracting talent and multinationals to Oman is an important issue.

We hear a lot about the new economy as if it only applies to IT or is still some way in the future; that it is something only young techies in smart offices are involved in. If that's what you think then you couldn't be further from the truth. In fact it is here and it is now and it affects us all.

Today's modern economy is fast moving, dynamic, ever-changing and global. To become successful, companies, countries and cities must master the art of innovation, constantly developing and adopting the best products, techniques and practices and attracting the right kind of human capital. Indeed, successful cities will be those that can adapt to the demands of rapid change, those that are flexible, creative and diverse and manage change rather than being drowned by it.

Benchmarking cities
The World Knowledge Competitiveness Index benchmarks the world's high performing cities in terms of their performance on four crucial variables - knowledge capital, human capital, regional economic outputs and knowledge sustainability and it makes for sober reading. The recent index is dominated by US cities. The top 21 world knowledge competitive cities are all in North America. In fact, the first European city to feature in the ranking is Stockholm at 22nd and there is no Gulf city listed in the top 125.

The world's burgeoning cities are a critical fact of the 21st century - and represent one of the greatest challenges of the future. By the year 2050, cities with populations over three million will more than double from 70 today to over 150. When knowledge is perhaps the most important factor in today's economy, there's a growing interest in the concept of the knowledge city. But it isn't just large cities that have cornered the market in attracting talented people. For example, in the US, a number of smaller cities have some of the highest conce-ntrations of creative people in the nation, notably college towns such as Austin, Texas, East Lansing, Michigan and Madison, Wisconsin. But where does Muscat stand on attracting talent and establishing itself as a knowledge city?

We've a tech park
Clean, unpretentious and safer than most cities, Muscat is home to KOM, the Rusayl-based technology park. Tenants on the 68 hectare park are exempt from corporate taxes, have access to Class A office accommodation and superb telco infrastructure. Its tenants live in modern, comfortable and affordable housing, their kids attend great schools and healthcare here is second to none. The park's firms are positioned to tap a growing, youthful Middle East market, and a young, educated, increasingly tech-savvy, multilingual indigenous workforce. All of this should bode well. Among others, Hewlett Packard, Microsoft, Oracle, Huwaie, Gulf Air, Infocomm and NCR are taking advantage of what KOM offers. But if we want to attract creative talent to the sultanate - multinationals and entrepreneurs that drive innovation and create employment - KOM won't achieve this on its own. The point is, Oman doesn't have just one competitor - either the UAE or Saudi Arabia or Qatar. That's not how the global economy works. We are competing against a collection of countries simultaneously, and the cumulative effect of UAE plus Saudi Arabia plus Qatar plus Thailand plus India is something to worry about. So what should we be thinking?

The concept of attracting talent and multinationals to Oman is an important issue. Indeed, in the battle for global talent, we are moving from a company-centric economy to a people-driven one. Simply put, people are turning to their community rather than to their company to define themselves and location is taking precedence over the corporation. For example, when smart individuals and firms visit KOM (www.kom.om), they don't just consider the Class A office accommodation, the tax benefits and infrastructure on offer. Increasingly, they check out what's available and happening in Muscat - the recreation and sports facilities, the standard and availability of accommodation, schools, healthcare facilities, flight connections, cinemas, night life, museums, shopping centres, art galleries and restaurants. They're looking for audile and visual cues which signal whether Muscat is a place where they and their employees can live, work and play. It is also apparent from talking to people that location is as important as salary and career opportunity. Again, recent studies suggest that folk who make a job-based decision to relocate but neglect lifestyle factors such as recreational and cultural amenities move again shortly thereafter.

A high amenity city
In order to help Oman attract talent and multinationals, what we should be looking to develop is Muscat as a high-amenity place where you can get anything you need instantaneously. If you are pulling an all-nighter, you can get a Thai take away at 2 am. When your dry cleaning piles up, there's a place in CityCentre that will take care of it in 30 minutes. If you need to blow off steam, there's a skatepark to ride or a wadi to bash! In brief, a place that has all these amenities is efficient. You save time when you live there. Many of these amenities are on offer in Muscat - but are we (collectively) getting this message across to international firms and entrepreneurs? Perhaps not.

Obviously, cities differ considerably in their ability to attract and retain human capital and the companies these folk manage, this is why talent hasn't spread evenly across the economic landscape and helps explain the emergence of business and technology clusters. From experience, it's more than apparent that people look for the same things in a city that they look for in a company: energy, amenities and a sense of fun. In Oman, people want to be able to go camping, cycling and picnicking on beaches. Now, when you question potential residents whether they camp, cycle or picnic on beaches, generally the answer is 'no'. But they want such activities to be available, because they like the idea of being able to do them if they want to.

Low entry barriers
Economists have long spoken of the importance of industries having low entry barriers, so that new firms can easily enter and keep the industry vital. Similarly, it's important for a city to have low entry barriers for people, that is, to be a place where newcomers are accepted quickly into various social and economic arrangements. All things being equal, if Oman adopts this approach, we are likely to attract greater numbers of talented and creative people - the type of people who power innovation, entrepreneurship and create employment. Cities that thrive in today's world tend to be plug-and-play communities where anyone can fit in quickly. On its own, building a first class technology park won't attract greater talent and more international firms, we need to work harder on offering more lifestyle options and greater cultural diversity.

Talent magnet
Talented people seek an environment open to differences. Many highly creative people, regardless of ethnic background, grew up feeling like outsiders, different in some way from most of their schoolmates. When they're sizing up a new company, city or country, acceptance of diversity is a neon sign that reads 'non-standard people welcome here.' Put simply, crusaders of the new economy increasingly take their professional identities from where they live, rather than from where they work. In the past you would meet a guy on a plane, ask him what he does, and he would tell you that he writes code at Oracle. Today, it is, "I design educational game software and live in Madison." The most important national and corporate resource over the next 20 years will be talent. Smart, sophisticated businesspeople who are technologically literate, globally astute and operationally agile. And even as the demand for talent goes up, the supply will be going down. We have great ideas, we have got money, we just don't have enough talented people to pursue those ideas. We are talent-constrained. So, if we are to compete, we've got to get our heads round this issue and look seriously at how we can retain and attract the right human capital.

Research clearly indicates that talent is attracted to three types of new economy hot spots. First, there's the traditional, high-tech industrial complex such as California's Silicon Valley. Then there's the 'latte town' - high-energy places with easily accessible outdoor amenities, such as Boulder, Colorado. Finally, there are new urban technology centres cro-pping up, such as Pioneer Square in Seattle, Washington. Indeed, Muscat's fate cannot depend, quite obviously, on the performance of one technology park or one free zone or one port. Its prosperity will depend on the productivity of all its economic sectors and in its ability to collectively create a diverse environment - and one that does not compromise local culture - that is attractive to both talented entrepreneurs and multinationals.

Blog contents copyright © 2007 PEIE

Oman Cables Industry Backs OMG

Some of Oman's most prestigious firms have thrown their support behind the formation of the Oman Manufacturing Group (OMG), which promises to have a major impact on the development of the sultanate's manufacturing sector. The latest company to back the OMG initiative is Oman Cables Industry SAOG (www.omancables.com) a leading manufacturer and exporter of high quality, special purpose cables and wiring solutions.

Set up by the Public Establishment for Industrial Estates (PEIE) in early 2007, OMG is designed to help Oman-based manufacturers respond to the rapidly changing industrial world. "We want to work with our manufacturers to ensure they remain competitive. Indeed, we fully recognise the crucial role this sector plays in Oman's economic and social development," says Eng. Hamad Al Harthy, Director General of PEIE's Rusayl Industrial Estate.

OMG runs free of charge, quarterly specialist seminars on practical manufacturing issues. The 2007 seminar series will debate: new product development; manufacturing strategy; lean enterprise; and branding. The first OMG seminar held in March attracted a range of companies from large international organisations to small independent specialist manufacturers from across the sultanate. According to Eng. Al Harthy over 200 attended the March program. "We were overwhelmed by the response. The OMG meets will also help us boost the image of manufacturing among the public, media and Oman's youth," says Al Harthy.

Commenting on the OMG initiative, Mohammed Al Lawati, Assistant General Manager, Oman Cables Industry SAOG (pictured above left) says: "OMG creates a marvellous opportunity for manufacturers to discuss and address common issues and explore ways of improving performance levels. I'm also confident it will increase levels of co-operation, collaboration and communication within the sector. Indeed, the support that OMG has received from the manufacturing sector plus the attendance level at the first seminar clearly indicates the industry's eagerness to come together, exchange ideas and network. "

The next OMG seminar – Developing a Manufacturing Strategy – will be held 7:45pm, Sunday 20 May at the Crowne Plaza Hotel.

Blog contents copyright © 2007 PEIE

Back on the Radar Screen

We've been off the radar screen for a few months so there's lots to report on. In particular, we've launched two new initatives in Q1: Digital Nation (www.kom.om/ev.html) and the Oman Manufacturing Group (www.peie.om/omg.asp). Both are peer-to-peer networks. We'll be posting news on these shortly.

We've also just finished PEIE's annual Smart Manufacturing Conference (15 - 16 April www.peie.om/smartman.asp) at the Crowne Plaza Hotel, Muscat. Again, we'll be posting updates and images from this two day event.

contents copyright © 2007 PEIE

The TKM - Ernst & Young Big Business Idea Competition

The Knowledge Mine (TKM) – Ernst & Young Big Business Idea Competition 2006, the first national business plan competition of its kind in Oman, will be launched Sunday 18 June at Knowledge Oasis Muscat.

“The Big Business Idea Competition is a marvellous initiative and we’re searching for ‘would be’ entrepreneurs who want to turn their ideas into a successful business that everyone can benefit from. In simple terms, this is a competition that is designed to encourage Omani students, researchers and entrepreneurs to act on their talent, ideas and energy to produce tomorrow's leading businesses,” said Eng. Mohammed Al Ghassani, Executive Vice President, Public Establishment for Industrial Estates and organizer of the competition.

In partnership with The Knowledge Mine incubator program, the competition brings together seven of Oman’s leading organizations with the aim of generating awareness of innovation, entrepreneurship and the start-up culture. “Without the support and involvement of Ernst & Young; the Information Technology Authority; Ericsson; National Bank of Oman; NCR; Nawras; and Apex Publishing the competition could not have been organized. Indeed, these are organizations that have the vision to truly understand and appreciate the importance of this annual initiative and its long-term impact on the Sultanate’s economy,” said Al Ghassani.

Entries are welcome from Omani nationals and the organisers particularly encourage University staff, researchers, students and entrepreneurs to enter, but also welcome submissions from individuals and teams and new companies who have good, innovative ideas for a technology-driven business. “Ideas should be original or a significant improvement on an existing business. This year the competition has a top prize of RO5,000 for the winning business plan plus free office accommodation in The Knowledge Mine incubator program,” said Philip Stanton, Managing Partner, Ernst & Young. Full details on how to take part in the competition can be downloaded from www.kom.om/bbic

The competition seeks out the best new business ideas, as judged by a panel of industry experts that includes: Mohammed Salem and Rajeev Singh (Ernst & Young); Dr. Salim Al Ruzaiqi (ITA); Rob Clark (Ericsson); Hassan Shaban (NBO); Eyhab Al Hajj (Nawras); Habib Hanna (NCR); Dr. Ashraf Al Nabhani (The College of Banking & Financial Studies); Eng. Mohammed Al Ghassani (PEIE); Khalid Ansari (KPMG); Dave Pender (PEIE); Alan Rooke (OmanLine); Karim Rahemtulla (Infocomm); Dr. Graham Smith (Sohar Aluminium); Nick Pattison (Pattison Consulting); and a representative from Talal Abu Ghazaleh. Entrants have until 1:00pm on 2 September 2006 to submit their business plan at Knowledge Oasis Muscat. Semi-finalists will be announced in early September and the four best business plans will be invited to present at a Gala Dinner scheduled for 5 November at the Muscat Inter-Continental Hotel.

Those who submit a business plan will get high-level feedback on their idea and the chance to learn more about processes of business. “The competition is a highly-prestigious platform for successful new venture creation, access to networks, training and valuable contacts and it helps further understanding of the investment process and what constitutes a realistic marketable idea,” commented Al Ghassani. Advisers from Ernst & Young will run three pre-competition workshops (28 June, 2 and 9 July) at Knowledge Oasis Muscat – these are intended to help entrants sharpen up their business ideas to make them more viable. Commenting on Ernst & Young’s involvement in the Big Business Idea Competition, Stanton said: “As Oman’s economy continues to grow, Ernst & Young is delighted to play a role in furthering business development in the Sultanate.”

"It's a wonderful opportunity," said Hassan Shaban, Head, Corporate Communications, NBO. "I'd advise anyone who's interested in starting a business to enter the Big Business Idea Competition. In fact, this is a great opportunity for us to encourage the creative approach that underlies the innovative and entrepreneurial business spirit that’s sweeping the globe.”

How To Sponsor

And the Survey Says…
A recent survey revealed that event marketing has become a top choice for marketers – 44% of those polled chose event marketing over advertising at 18%, direct marketing at 15% while public relations, sales promotion and Internet advertising registered just single-digits.

Event Marketing Booms
Globally, trade shows were perceived by one-third of those surveyed as the leading event type in terms of ROI. Following behind trade shows in perceived ROI were conferences (24%) and seminars (20%). Across all geographies, event marketing averaged 20% of total marketing communications budgets. This trend is most visible in Asia Pacific, where 74% of the survey's participants cite the growing influence of event marketing, almost 20 points higher than the global average. In fact, more Asian Pacific corporations (49%) anticipate increased budget allocations to event marketing than for any other marketing activity. I fully expect Middle East markets to follow this marketing trend. Eng. Mohammed Al Ghassani, Executive Vice President of the Public Establishment for Industrial Estates – responsible for Oman’s six industrial estates as well as Knowledge Oasis Muscat (KOM) – said: “Whether it's increased service knowledge, greater brand awareness, a boost in space rentals or a reinvigorated work force, face-to-face events are instrumental in helping PEIE and KOM advance their strategic goals.” In short, event marketing is big and getting bigger.

Wealthy Greeks
Events whether they’re seminars, workshops, conferences or football tournaments can provide golden opportunities not just for those participating but also for companies aiming to promote their brands to a large audience. For those involved in organizing events, whose aim is often to maximise the generation of income, corporate sponsorship is one of the most lucrative sources of revenue. If you look back at history, the origins of sponsorship can be found in Ancient Greece, where wealthy Athenians contributed hard earned cash to cultural, defence and sports events. This was to help events become more accessible to Citizen Stavros. In return, sponsors were honoured by having their names engraved on marble tablets. This tribute was a mark of the city’s respect, value and appreciation.

In more recent times, corporate sponsorship has been viewed mainly as a commercial transaction where a sponsor pays a given fee and in return receives certain rights. In most cases, in addition to the fee, the sponsor also supplies the sponsored party with their products or services. In return, corporate sponsors expect to receive exclusivity in the use of the official logo, be given unique advertising and promotional opportunities, on site concessions/franchise and product sales together with the right to describe themselves as the official sponsors of the event in their marketing and promotional campaigns.

It is estimated that brand marketers worldwide will spend US$50 billion on sponsorships in 2006. Indeed, sponsorship and event marketing opportunities have proliferated as interest in opportunities and spending has increased. Oman-based firms have a domestic event buffet to choose from, we’ve rallying, camel racing, golf and football tournaments through to musical concerts, exhibitions, eGames conferences, monthly Open House seminar programs to mobile marketing tours, sampling and product placements on TV.

Sponsorship & the Feel Good Factor
From a local perspective, let’s say you’ve just sponsored a local business conference or a sporting event to the tune of RO3,000 - what impact will it have on the local community – what kind of buzz will it generate? Here are two examples, the first is from a guy living in Los Angeles who attended a track and field event during the 1984 Olympic Games:

This is really fantastic! The crowds … the excitement. I’m so glad I came. I thought I wouldn’t
attend any Olympic events. I don’t like sport. I was even sorry that the Olympics were going
to be in LA. But there was so much energy people were so excited. I just had to be part of
it. So here I am. It really doesn’t matter what is happening down there [on the track]. There is just so much energy! People are so happy! It’s just fun!

The second story is from a young Sydney Olympic Volunteer who describes an incident she was involved in: My [volunteer] assignment finished late. I was still in my [volunteer] uniform, and I had to change trains at Cabramatta. I wouldn’t have been there if I didn’t have to be. It isn’t safe. I was alone on the platform and [a teenager] walked up. He looked tough, and I thought he was going to rob me. He said, “I want to thank you for what you are doing for our country.” Then he just walked away.

There are hundreds of stories like these at most events whether they’re business or sport-oriented. There is a sense that something important is happening - a sense that is felt more than understood. If the occasion is a sporting event, the sport may be the catalyst, vehicle, or rationale for the felt sense of importance, but is neither the object nor the cause. The sporting outcome may matter to some, but there is a sense of something more important happening. In brief, something that transcends the sport that is going on. It feels as if new energy has been injected into the community - an energy that can be shared by all. There is a heightened sense of community among those who attend the event. If you’re looking for an incentive to sponsor an event and get your brand associated with a good-feel vibe, then this is it.

Return on Investment
Naturally, bigger Rial allocations means more intense scrutiny from senior management. In turn, the demand for accountability and demonstrable ROI from sponsorships and event marketing has never been higher. Unfortunately, tools for assessing the performance of sponsorships and event marketing in terms of contribution to sales and profitability have always been in short supply. According to research, 60% of marketers say they are not satisfied with their ROI tools. All I can say on this point is if you don't measure it, then it’s obvious you don't care about it!

Big Business Idea Competition
However, the goal of sponsoring an event, let’s say a business plan competition, has to be about making the brand message become part of the event because, if done successfully, the two will be inextricably linked and always associated with one another. For example, the recent involvement of Ernst & Young with the launch of the Knowledge Mine - Ernst & Young Big Business Idea Competition (www.kom.om/bbic) will without doubt build brand equity and brand awareness for Ernst & Young www.ey.com/global/content.nsf/Middle_East/About_Us__Oman. Just tagging a name onto an event and not supporting the sponsorship fully leads to a disassociation between the name of the event and the actual brand. How often have you seen corporates give over cash to an event but not get behind the event? Indeed, just attaching your name to an event is lazy marketing. It is not about the corporate name; it is about what will happen pre- during and post-event: how the brand will come to life and how the target audience can experience the brand image at the event. The corporate needs to be aware of this and act on it.

Work Together
A successful event sponsorship deal is very similar to a joint venture or partnership in that the parties work closely together and assist each other to achieve their respective commercial aims. Don’t underestimate this commitment. Sponsorships tend to be long-term relationships, many lasting for two, three or four years. As the activities of parties to a sponsorship contract can affect the reputation and goodwill of each other, it is important that both parties make enquiries of the other prior to contract as part of the commercial evaluation of a sponsorship proposal. If this is done properly then real and meaningful ROI will be had.

Oracle Sets-up on KOM

Knowledge Oasis Muscat (KOM) the centre piece of Oman’s rapidly growing ICT sector has successfully attracted Oracle Corporation the world's largest enterprise software company as a new tenant - with another eight in the process of signing lease agreements.

The three year-old Rusayl-based Technology Park now offers over 20,000 square metres of high quality office space and meeting facilities. With the growing reputation of KOM as a leading Middle East centre for excellence in technological innovation and entrepreneurship, KOM is successfully attracting niche companies from throughout the software and technology sectors.

Gabriel Bakhazi, Vice President, Finance, Oracle Middle East & Africa (pictured on the right), says: “Oracle is growing and developing as a company and KOM very much fits our profile and aspirations. We needed more office space and KOM is ideal in terms of facilities and easy access to other locations, added to that it offers us a modern and beautiful working environment.”

Asked about Oracle’s decision to base their Oman operations on KOM, Mohammed Al Maskari, the Park’s Acting Director General said: “KOM and the surrounding area is an inspirational location. We neighbour Rusayl Industrial Estate which boasts over 140 firms, we’ve Sultan Qaboos University on our doorstep, two tertiary institutes operating on the KOM campus, over 35 hi-tech tenants, plus a growing business incubator program – it’s a vibrant community. Indeed, this is why our growing list of domestic and international tenants are choosing KOM over a city centre location. KOM also provides tenants with access to a large pool of talented graduates essential to the continued growth and success of the firms resident on the Park.”

Other recent high profile moves to KOM include Hewlett Packard and Huawei. Ahmed Al Hadhrami from KOM’s Marketing Team, says: “interest in KOM has gained substantial momentum over the past 12 months. We’re the perfect space for small and multinational companies with the range of facilities that we provide. The Park’s accommodation and various services are offered to tenants at highly competitive rates, this means that companies can focus on growing their business without the hassle of having to deal with utility companies, maintenance and the expense of having meeting room facilities.”

“It’s great to see KOM welcoming IT giants such as Oracle – the Oracle team will be amongst the first to take advantage of the superb new facilities being built on KOM,” commented Dave Pender, Advisor at PEIE.

KOM & Nawras Talk Gen Y

According to recent research today's marketers to be successful tomorrow, need to understand "Generation Y," aka Gen Yen. (http://en.wikipedia.org/wiki/Generation_Y). Born between 1978 and 1994, Gen Y’ers are as young as 11 and as old as 28, and they're the biggest thing to hit the scene since the baby boomers. In order to help Oman-based firms better understand this new, intelligent and highly tech savvy group, Knowledge Oasis Muscat (KOM) has invited Mr. Ziyad Smayra (pictured), Head of Market Intelligence and Research at Nawras (http://web.nawras.com.om) deliver a Gen Y Marketing Open House seminar, scheduled to be held at KOM, 23 May at 5:30pm. Before joining Nawras, Mr. Smayra was Marketing and Research Manager for the Disney Channel Middle East (www.disneyme.com)

“For a lot of entrenched brands, Gen Y poses an enormous risk, it’s the first generation to come along that's big enough to hurt a boomer brand simply by giving it the cold shoulder and big enough to launch rival brands with enough clout to threaten the status quo,” remarked Mohammed Al Maskari, Acting Director General, KOM. As this new group elbows its way into the Omani marketplace, its members are making it clear that companies hoping to win their hearts and wallets will have to learn to think like they do. From a personal perspective, and as a Gen Y’er, I can see the real importance of this Open House seminar – it’s a fascinating topic that should be of interest to a wide spectrum of people,” added Al Maskari.

”Many Oman-based marketers perceive Gen Y as just kids. When they do that, they fail to take in what Gen Y’ers are telling them about the type pf consumers they're becoming. Let’s be frank, this isn’t about teenage marketing. It's about the coming of age of a generation,'' said Ibtisam Al Faruji, Open House Co-ordinator.

“Soon a lot of Omani companies are going to have learn the nuances of Gen Y marketing. In just a few years, many of this group will be out of university and shopping for cars, holidays, houses and investments and how will firms be tackling these issues? I’ve already received e-mails and calls from people that want to attend this session,” remarked Al Faruji.

Having grown up in a more media-saturated, brand-conscious world Gen Y’ers respond to marketing and ads differently. The Oman-based marketers that capture Gen Y attention do so by bringing their messages to the places these young people congregate, whether it's on the Internet, a skateboarding tournament, or in a sports clubs. “The marketing may be funny or disarmingly direct. What they don't do is suggest that the marketer knows Gen Y better than these savvy consumers know themselves,” commented Dave Pender of PEIE.

“Gen Y is a confident, self-reliant, optimistic and positive generation. The Internet, blogs, lap tops and iPods represent tools that are empowering this generation. As a result, these consumers are marketing savvy and much less brand loyal. Firms shouldn’t be thinking about building a brand for Generation Y; instead, they should be building a brand with them,” said Pender.

To reserve your free seat at the Gen Y Marketing Open House, send your name and contact co-ordinates to: Ibtisam@kom.om