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* Atleast Project Title is Required.
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Project No. |
SME 08 2020A
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Project Title |
What comes after SME Digital Transformation? - Measuring Effectiveness of Public Policy and Identifying Trends for the Post-Digital Era
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Project Status |
Project in Implementation
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Publication (if any) |
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Fund Account |
APEC Support Fund
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Sub-fund |
ASF: General Fund
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Project Year |
2020
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Project Session |
Session 2
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APEC Funding |
29,400
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Co-funding Amount |
0
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Total Project Value |
29,400
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Sponsoring Forum |
Small and Medium Enterprises Working Group (SMEWG)
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Topics |
Small and Medium Enterprises
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Committee |
SOM Steering Committee on Economic and Technical Cooperation (SCE)
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Other Fora Involved |
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Other Non-APEC Stakeholders Involved |
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Proposing Economy(ies) |
Chile
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Co-Sponsoring Economies |
Australia; Brunei Darussalam; Canada; China; Hong Kong, China; Korea; Malaysia; Mexico; Peru; Singapore; Chinese Taipei; United States; Viet Nam
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Expected Start Date |
01/04/2021
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Expected Completion Date |
30/04/2022
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Project Proponent Name 1 |
Manuel Lopez
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Job Title 1 |
Advisor
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Organization 1 |
Ministry of Economy, Development and Tourism
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Postal Address 1 |
Not Applicable
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Telephone 1 |
(56-22) 4733447
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Fax 1 |
Not Applicable
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Email 1 |
mlopezb@economia.cl
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Project Proponent Name 2 |
Not Applicable
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Job Title 2 |
Not Applicable
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Organization 2 |
Not Applicable
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Postal Address 2 |
Not Applicable
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Telephone 2 |
Not Applicable
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Fax 2 |
Not Applicable
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Email 2 |
Not Applicable
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Declaration |
Manuel Lopez
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Project Summary |
The overall objective is to develop a knowledge framework for APEC economies on what are the emerging trends in the post-digital era that could serve as foundation for the development of next generation public policy. APEC economies underscore the need to foster innovation and promote digitalization to enhance competitiveness and accelerate the growth of SMEs and most of them have developed policy responses that promote the digitalization of SMEs, but measuring their effectiveness and impact is still a challenge. Furthermore, concepts such as the “Post-digital Era”, the “Self-driving Enterprise”, the “Continuous Next”, are currently emerging in the business field and represent the next phase of digital transformation which addresses the new position on the capabilities all organizations need to keep up with continuous change driven by technology. This project aims at developing insight for addressing questions such as: To what extent digitalization policies help SMEs increase their levels of productivity? When can both, public agencies and SMEs, state that digitalization has been adopted? What comes after digital transformation? In doing so, the project will deliver an APEC Publication which will: (1) Take stock of SME digitalization policies in the APEC region; (2) Develop recommendations for measuring effectiveness and impact of the policies identified; (3) Map emerging business trends for continuously refining SME development on the post-digital era; (4) Deliver policy recommendations for next generation public policy on supporting SMEs. In addition, a teleconference aiming at public agencies supporting SMEs, will be held in 2021 which would allow the dissemination to a large number, if not all, economies in the region. |
Relevance |
Relevance – Region: APEC economies underscore the need to foster innovation and promote digitalization to enhance competitiveness and accelerate the growth of SMEs and most of them have developed policy responses that promote the digitalization of SMEs in such as online-to-offline channels, mobile-commerce, sharing economy and the Internet of Things, amongst others (SME Ministerial Statement, 2019). But is still a challenge to measure in what extent such policies have enabled SMEs to actually transform themselves digitally and sustainably in time. Sound measurement is crucial for evidence-based policy making; it helps to identify the need for policy intervention, enhances accountability, and improves the evaluation of the efficiency and effectiveness of policy actions (OECD, 2019). Furthermore, concepts such as the “Post-digital Era”, the “Self-driving Enterprise”, the “Continuous Next”, are currently emerging in the business field and represent the next phase of digital transformation which addresses the new position on the capabilities all organizations need to keep up with continuous change driven by technology. In short, the project will address this concept as “the post-digital era” which is defined as the phase after-adoption phase of digitalization, where part or the whole business model of a company is digitalized. As a result of ‘continuous next’ or the ‘post digital era’, organizations have to change the way they view business transformation and consider it a constant process rather than an end goal. Continuous innovation can enable businesses constantly to adapt, evolve, and drive forward change within their field and is the ideal state organizations should be striving to reach (Manzoor, 2019). This project will provide knowledge in regards of measuring effectiveness of SME digitalization policies and on emerging trends in the post-digital era that could serve for next generation public policy. Relevance – Eligibility and Fund Priorities: This research project supports capacity building specifically for public agencies responsible for SME digital transformation policies through delivering insights for measuring the effectiveness and impact of such policies, in addition to exploring emerging business trends in the post digital era, envisioned to serve as foundations for the design of next generation policy supporting the development of SMEs and entrepreneurs. The project will be developed in cooperation with stakeholders that range from government officials, to policy makers, academia, and others. Relevance – Capacity Building: There are underlying questions that must be taken into consideration in order to build capacity, such as: To what extent digitalization policies help SMEs increase their levels of productivity; When can both, public agencies and SMEs, state that digitalization has been adopted?; What comes after digital transformation? On the one hand, the project encourages the development of knowledge for public agencies in charge of SME digitalization policies through proposing recommendations for measuring policy effectiveness and desired impact. On the other hand, the project encourages the development of a framework of theoretical knowledge and empirical evidence through the mapping of emerging trends in the field of post-digital era. The prior is envisioned to serve as basis for the development of next generation public policy for supporting SMEs that have digitalized one or more components of their value chain. |
Objectives |
The overall objective is to develop a knowledge framework for APEC economies on measuring effectiveness of their SME digitalization policies and on what are the emerging trends in the post-digital era that could serve as foundation for the development of next generation public policy. The specific objectives are: 1) Take stock of SME digitalization policies in the APEC region; 2) Develop recommendations for measuring effectiveness and impact of such policies; 3) Map emerging business trends for continuously refining SME development on the post-digital era: 4) Deliver policy recommendations for next generation public policy on supporting SMEs. |
Alignment |
Alignment - APEC: In an overall vision, the project focus on capacity building through a deeper understanding of the challenges of public policy facing SME digitalization, especially in developing economies, and developing knowledge for improving business skills in the digital economy and Industry 4.0. Specifically, this project is aligned with the following APEC areas: 1) 2019 APEC SME Ministerial Statement, by supporting the priority of Digital Transformation for SMEs and Entrepreneurs; 2) SMEWG Strategic Plan 2021 – 2024, by supporting the priorities of Inclusive capability development towards digitalization, and Government to business interaction; 3) APEC Action Agenda on Advancing Economic, Financial and Social Inclusion in the APEC Region, supporting the priority of by Economic Inclusion; 4) The Boracay Action Agenda, by supporting the action of Strengthen institutional support for MSMEs; 5) The APEC Action Agenda for the Digital Economy, by supporting the focus area of Promoting innovation and adoption of enabling technologies and services. Alignment – Forum: The proposal aligns with the Small and Medium Enterprises Working Group Strategic Plan 2021-2024 priorities of Inclusive capability development towards digitalization, and the priority of Government to business interaction that supports SME growth by developing knowledge for next generation public policy for supporting continuous innovation in SMEs for strengthening business competitiveness and productivity. In addition, the project aims at improving business environment for start-ups and entrepreneurs; fostering constant innovation in SMEs to strengthen business competitiveness and productivity; and through increase digital transformation and adoption by SMEs, especially women, youth-led and other traditionally-disadvantaged communities. |
TILF/ASF Justification |
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Beneficiaries and Outputs |
Outputs: | N° | Output | Methodology | Purpose | Target Audience | Rough Agenda / Structure | | 1 | Documentary research and stock-take | Documentary research on trends, practices, policy approaches, and others, related to post-digital transformation stage and digital transformation measuring approaches.
Design and dissemination of a semi-structured questionnaire to be applied to a sizeable number of experts and organizations throughout the process. | To structure a draft policy paper to gain key insights and knowledge regarding the project's surrounding research question and serve as the foundations of the draft and final Project Policy Paper. | Public-private experts and organizations related to digital transformation from APEC economies. | 1. Theoretical frame of the documentary findings on trends, practices, policy approaches, and others, related to post-digital transformation stage and digital transformation. 2. Survey analysis 3. Annexes (such as survey translations, form results, others). | | 2 | Project Policy Paper | Structuring a final version - of around 100 pages - of the Project Policy Paper based on the revised version of the draft version of it. | To provide a knowledge framework for APEC economies on the key emerging trends in the post-digital era that could serve for related policy development in addition to a Highlights document to summarize into a short document, for dissemination, the key findings contained at the wider-length Project Policy Paper. | APEC Policy Makers from agencies supporting SMEs and entrepreneurs. | 1. Theoretical frame. 2. Methodology 3. Key findings on post-digital stage/era practices and approaches. 4. Key findings on digital transformation measuring practices. 5. Preliminary policy recommendations. Annex: Highlights’ document 1. Introduction. 2. Rough findings on post-digital stage/era practices and approaches. 3. Rough findings on digital transformation measuring practices. 4. Preliminary policy recommendations. | | 3 | Teleconference in the margins of 52nd SMEWG meeting. | Coordinating a 3-hours teleconference on which will participate the research team presenting the findings of the project, speakers and experts presenting related practices, and APEC policy makers as audience. The teleconference is intended to be conducted in the margins of the SMEWG meeting, which normally takes place between September – October. | To disseminate results and key findings of the research project, contained in the Pproject Policy Paper. It also will serve as an instance for discussion between audience, speakers and research team. | APEC Policy Makers from agencies supporting SMEs and entrepreneurs. | Section 1: Opening remarks Section 2: Key address - Sharing research's key results and findings. - Q&A Section 3: Panel - Public-private related practices and approaches. - Q&A Section 4: Closing remarks | | 4 | Handling of recommendations contained Project Policy Paper | Design and dissemination of a survey to follow up on the handling and potential adoption of the recommendations contained in the Project Policy Paper and content diffused in the project’s teleconference. | To evaluate the handling and/or adoption of recommendations made into the economy’s SMEs and entrepreneurs supporting policy. | APEC Policy Makers from agencies supporting SMEs and entrepreneurs who participated in the project’s teleconference and SMEWG representatives in general. | Long Term Evaluation Report. |
Outcomes: 1. Knowledge and awareness: of the importance of digital transformation as a driver for sustainable growth in APEC economies is strengthened, especially for policy makers and SMEs, by identifying and describing best practices that will deliver insight for designing public policy for SMEs and entrepreneurs at a post-digital era, in addition to provide insight on measuring approaches of digital transformation policies, which are not currently widespread. 2. Digital Transformation policy design: by delivering recommendations ,the project seeks to contribute for the design and implementation of better and more sustainable digital transformation public policy based on empirical evidence. 3. Post Digital transformation policy design: by identifying trends and delivering recommendations, the project will provide insight at policy level on how SME supporting agencies can deliver actions to maintain competitiveness and productivity derived from digital transformation adoption. Beneficiaries: The main beneficiaries of this project would be government officials, especially of SME agencies and other bodies responsible for the design and implementation of digital transformation public policy, programs and initiatives. The project should be relevant for relatively high levels of seniority that have the decision power to initiate new programs and/or modify existing ones as well as to more junior staff, who are responsible for the implementation and operationalization of the programs. More broadly and as secondary beneficiaries, the project is intended to be relevant for APEC working groups and steering groups related to digital transformation for SMEs such as SMEWG and Digital Economy Steering Group, and for a much wider group of stakeholder beyond; public agencies and policy makers supporting SMEs, such as the academic sector; private consultants and SME representative bodies. |
Dissemination |
The main output of the projects would be collected in a policy paper with the preliminary working title “What comes after SME digital transformation? – Measuring effectiveness of public policy and identifying trends for the post-digital era” this study would be disseminated to a broad audience by both the OECD, APEC and other interested economies. This document could be shared to key stakeholders in print and to a wider audience online on the APEC Publication website. All output would be publicly available without costs. In addition, a highlights document, including the most salient insights of the full Project Policy Paper only in an attractive and succinct format, could be disseminated. It is the ambition that the teleconference would include government officials active in promoting SME development in general and SME digital transformation more precisely. The SME Working Group typically consists of officials working on SME and entrepreneurship development and should therefore be an appropriate audience. In addition, the SMEWG has a proven record of accomplishment of liaising with and informing policy experts at other parts of the government on specific topics. Finally, specific outreach efforts could be undertaken with the New Zealand authorities to invite specific officials (or from specific organizations) from APEC economies for the event. |
Gender |
The project would therefore mainly promote women’s economic empowerment through the first pillar of the APEC gender criteria guide, i.e. “Innovation and technology, so women have the same opportunities as men to benefit from and participate in development and implementation of scientific advances and new technologies”, and to some extent also on “Skills, capacity building, and health, so women are physically capable of a range of economic pursuits and are prepared both educationally and technically for success in the workforce, in business, and in entrepreneurship” given the innovative nature of digital transformation policy supporting SMEs and entrepreneurs, especially women-led endeavours and SMEs. In addition, the project is aligned with the La Serena Roadmap on Women and Inclusive Growth which has among its key action areas, sharing and use of data and best practices to bridge the digital data divide, and enhancing women-led MSME’s ability to participate in global value chains. PO is committed to collecting sex disaggregated data for all speakers and participants (not only those funded by APEC) at the project teleconference. This data will be included when submitting a Completion Report to the Secretariat upon completion of the project, as well as providing guidance to future POs on their own gender parity targets. In addition, the project shall set the following indicators in order to committing to gender parity: | N° | Name | Goal | | 1 | Women participating as speakers/experts in teleconference. | At least 30% of experts/speakers | | 2 | Women participating as audience in teleconference. | At least 30% of audience | |
Work Plan |
| Time | Tasks | Deliverables | | Apr – Jun 2021 | Elaborating open tendering ToR and award suitable contractor | Tendering ToR - RFP | | Jul - Aug 2021 | Documentary research and stock take on SME digital transformation policies in the APEC region; Alternatively, bilateral contacts with public organizations in charge of the design and implementation of relevant policies on the matter will be explored, with a special focus on other APEC fora other than SMEWG, such as the Digital Economy Steering Group. | Documentary research, stock-take and Draft Policy Paper | | Aug - Sep 2021 | Documentary research on tools for measuring effectiveness and impact of public policies; adapt evidence for developing standard recommendations for measuring such policies. | | Sep - Oct 2021 | Documentary research on post-digital-era emerging trends; adapt evidence for developing standard recommendations for designing future SME supporting policy. | | Oct – Nov 2021 | Elaborating draft Project Policy Paper; Incorporate feedback from APEC peer reviewers on the draft Project Policy Paper; Prepare Event Attendance list and teleconference logistics for dissemination of results and recommendations; | | Sep – Oct 2021 | Preparing and disseminating of teleconference’s General Administrative Circular | General Administrative Circular | | Oct – Nov 2021 | 1 October 2021: Submit APEC Project Monitoring Report | APEC Project Monitoring Report | | Nov 2021 | Teleconference to present Project Policy Paper results, with an emphasis on best practices and policy recommendations. | Teleconference in the margins of 52nd SMEWG meeting. | | Nov – Dec 2021 | Conducting post-event a survey for determine quality of teleconference and gain feedback from attendees. | Teleconference’s evaluation report | | Jan – Mar 2022 | Prepare and present a revised Project Policy Paper incorporating results of teleconference shared for comments with the aim to finalize the document; Share and publish the final Project Policy Paper to relevant stakeholders. The Project Policy Paper shall be presented by March 1, 2022, at the latest. | Project Policy Paper and Highlights Document | | Apr 2022 | Submit APEC Project Completion Report and submitting documents | APEC Project Completion Report | | Apr – Jun 2023 | Design and dissemination of survey for attendees to teleconference for long term evaluation of outcomes expected. | Outcomes’ Evaluation | | Jun 2023 | Participation in the Long-Term Evaluation of APEC Projects conducted by APEC Secretariat | |
Risks |
| Risk | Management Strategy | | Risk of not finding suitable contractor to conduct the project | To date, the PO has presented the overview of the project to different international consulting groups in order to diffuse the initiative and invite potential and suitable contractor for the open tendering process. | | Risk of low response rate from economies from the stock-take or survey exercise | The P.O.’s proposed strategy to mitigate such risk is to define a target number of at least 7 (1/3) APEC economies responding to the survey exercise. | | Risk of low representation of women in terms of speakers and/or participants in the project | The P.O. will compromise to conduct a gender-parity scope for the survey exercise, teleconference’s speakers and audience. A minimum of 50% in surveyed participants, speakers and audiences should be the target of the project. | | Risks of not being able to engage APEC relevant participants | In one side, the project contemplates the dissemination of preliminary Project Policy Paper to key APEC working groups and steering groups so they can make comments and contributions. In addition, to lower the risks of low participation and finding APEC relevant participants, the preliminary results will be formally presented in the margins of the 52st SME Working Group meeting. | | Economies not applying knowledge learned or adopting recommendations from the project | A key point is to communicate and diffuse along with the SMEWG and other APEC fora, steering committes and others, the importance and potential of the deliverables of this project. This project holds the potential to become a key input for developing measuring models focused specifically in the effectiveness of public policy, programs and initiatives aiming at supporting digital transformation of SMEs and entrepreneurs. As more and more economies develop initiatives on the matters, recommendations on how to measure these programs are needed in order to assess and refine such policies in the mid and long term. In addition, the deliverables will contemplate a descriptive section on how leading startups and companies are currently dealing with digitalization once different parts or the whole business model has been digitalized. This, aiming at identify best practices for modeling policy for refining and developing future public policy after the process of adoption and implementation of digital strategies. In addition, there is great interest on digital transformation among APEC economies, as evidenced in the SMEWG Strategic Plan and different ministerial statements, which creates a framework of interest towards the subject. | | Covid-19 related risks | As strong distancing measures are still being taken by world economies’ and it is not feasible to foresee a different scenario, all of the project’s diffusion outcomes – such as the teleconference, the Project Policy Paper, the Highlights Document – will be undertaken digitally. | |
Monitoring and Evaluation |
Various drafts on both, a stock take of public policy for SMEs and entrepreneurs’ digital transformation and methods on how to measure such policies, will be circulated for comments and feedback among APEC members. This would allow to gauge their interest and relevance throughout the process and propose improvements and changes to the outline if necessary. The drafts will as well contain a descriptive section on how leading startups and companies are currently dealing with digitalization once different parts or the whole business model has been digitalized, aiming at identify business behavior patterns and best practices for modeling future digital transformation policy. Similarly, various drafts of the document highlighting lessons learned and policy recommendations will be subject to scrutiny from interested jurisdictions and organizations with a view to include correct and up to date information and specially to improve the relevance of the policy recommendations. Again, this would happen on several occasions allowing multiple opportunities to incorporate feedback. A key performance indicator would be the development of a limited number of concrete and useful policy recommendations based on various good practices. A survey could be conducted at the end of the process to evaluate the project, as well as to stay abreast about how these recommendations will be put into practice and stay abreast about policy developments more generally. The turnout of the teleconference as well as their opinion afterwards, will represent another key performance indicator of the project. A post- teleconference evaluation exercise will be conducted to understand the outcomes of the event and experience of the participants in order to provide insights into the outcome and success of the event. Such evaluation would be conducted via online survey addressing topics to be evaluated such as quality of speakers, quality of contents, relevance of contents for respondent’s SME supporting policy, quality of teleconference’s logistics, quality of overall event, and others. Data will be collected through various means such as desktop research, interviews (either by phone or virtual media), surveys, and collaborations with experts and/or international organizations. The table below provides the detail on how the outputs and outcomes will be measured: | | Evaluation Focus | Indicators | Target goals | Evaluation Method | Reporting | | Outputs | Documentary research and stock-take | Number of documents | 1 document containing at least the structure proposed in the Outputs section. | Certification by P.O. | Draft Policy Paper | | Number of experts from related public bodies | 7 experts of at least 7 different APEC economies consulted | Certification by P.O. | | Number of organizations consulted | At least 7 related private organizations consulted | | Project Policy Paper | Number of documents | A 100 pages’ document containing at least the structure proposed in the Outputs section | Certification by P.O. | Project Policy Paper | | Number of policy recommendations | At least 10 | | Teleconference in the margins of 52nd SMEWG meeting. | Number of participants | At least 50, including from as many APEC economies as possible. | Event Attendance List | Completion Report | | Number of female participants | At least 50%. | | Number of speakers | At least 4, with at least 50% of them female. | | Outcomes | Project Policy Paper recommendations | Number of organizations consulted | At least 10 | Certification by P.O. | Survey results’ report | |
Linkages |
As the project is aligned with the Action Agenda for the Digital Economy, the project will need to closely work with the Digital Economy Steering Group. As detailed in the work plan, this group will be relevant for the following activities: Documentary Research and Stock-Take, the elaboration of the Project Policy Paper and the Teleconference. Taking into account the previously mentioned, the scope of this project aims to identify those spaces that allow, on one hand, to encourage measuring of the effectiveness of public policies for digital transformation and, on the other hand, promote the refinement and design of new public benefits for the post-digital era. |
Sustainability |
Aside from getting the appropriate framework conditions in place, government bodies around the world are taking action to enable more small businesses benefit from digital transformation. Initiatives include raising awareness and understanding of the benefits and risks of digital transformation processes, creating an enabling environment for transformation to be really put in practice by SMEs and entrepreneurs, channelling support through and collaborating with entrants in digital transformation as well as through and with incumbents, the creation of innovation labs or accelerators for SMEs and entrepreneurs, and so on. The project endeavours to collect and disseminate recommendations based in good practices. A key objective would be the adoption and/or modification of existing policies of these good practices by APEC members over the long term. This could be monitored, with modest resources, through a limited survey exercise with key agencies after the completion of the Project Policy Paper. The identification of good policy practices and effective approaches depends largely on (independent) evaluations of programs of its impact, dependent on how it achieved key performance indicators on the beneficiaries and the wider economy such as digital transformation indicators (at the company and economy level), employment (at the company and economy level), profitability (at the company level), the growth of the digital services industry and so on (and dependent on the programs). |
Project Overseers |
Mr. Manuel López is a Senior Advisor of the SME Division of the Ministry of Economy, Development and Tourism of Chile, the public body that designs and implements public policy with focus on SME.
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Cost Efficiency |
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Drawdown Timetable |
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Direct Labour |
Specific duties for a team of two consultants: · Preparation of desk research for policy stock-take and fact-finding process. Accounts to a total of 180 hours, 120 and 60 hours respectively. · The preparation, submission and digestion of the questionnaire and interviews. Accounts to a total of an additional 120 hours. · The preparation of the first draft of the Project Policy Paper and to share with APEC economies for comments. That accounts to a total of another 225 hours. · Integrating comments and feedback and preparing a second draft Project Policy Paper. Another 120 hours. · Finalization of the Project Policy Paper (including re-reading and formatting and integrating a second round of comments). This would take an estimated 150 hours. · Preparation of the highlights document: a 10 page document containing the rough findings of the research and the key policy recommendations. This accounts to a total of up to 45 hours. In addition, the results of the project are expected to be presented in the margins of the 52nd SMEWG Meeting in New Zealand via virtual means. The results will be presented by the contractor’s consultancy teams, and the teleconference will contemplate a panel with additional speakers presenting related topics. |
Waivers |
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Are there any supporting document attached? |
No
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Attachments
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