STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico

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STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
STATE OF JALISCO IT SECTOR ROADMAP
ABSTRACT
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
STATE OF JALISCO
    IT SECTOR ROADMAP
                           ABSTRACT

 This Roadmap was developed by the Strategy Executive
Team and the Western Regional Coordination of ProMéxico,
   together with CANIETI Western Chapter and IJALTI.
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
DEVELOPED BY:

                    PROMÉXICO
                José Manuel Cortés
              Carlos Raúl Barrón Cruz
             César Ricardo Tejeda León
             Miguel Ángel Riego Alrich
               Renata Piña Huesca

                      CANIETI
                   Western Chapter

              Juan José González Nuño

                        IJALTI
              Juan Pablo López Ortuño
               Mauricio Espinosa Sosa
            Yessica Liliana Rivera Martínez

This roadmap was developed by the Executive Strategy Di-
     rection and the Western Regional Coordination of
 ProMéxico, together with CANIETI Western Chapter and
                          IJALTI.
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
PROMÉXICO

    Paulo Carreño King
           CEO

Marco Erick Espinosa Vincens
 Chief Intelligence Officer

   Claudia Esteves Cano
   Executive Director of
         Strategy
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
NATIONAL CHAMBER OF ELECTRONIC INDUSTRY, TELECOMMUNICATIONS
           AND INFORMATION TECHNOLOGIES (CANIETI)
                       Western Chapter

                         Isaac Ávila Ahumada
                   President of the Western Chapter

                       Juan José Aguilar Grijalva
                  Business Intelligence Vice President

                         Oswaldo García Arana
                           General Manager

                       Juan José González Nuño
                     Business Intelligence Manager

                                IJALTI

                 Luis Armando Valtierra González Madrid
                               President

                     Jorge Eduardo Chávez Ramos
                           General Manager

                        Mauricio Espinosa Sosa
                          Project Manager
STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
Itziar Gómez Jiménez
Head of the Communications Department

Isabel Vieyra Jiménez
Director of Publications and Contents

Felipe Zúñiga Anaya
Editor

Cover illustration,
graphs and figures
Oldemar González

Photo
Archive

© 2018, ProMéxico
Camino a Santa Teresa 1679
Colonia Jardines del Pedregal
Delegación Álvaro Obregón
Mexico City, México, 01900
www.gob.mx/promexico
promexico@promexico.gob.mx

First edition (non-commercial)
Mexico City, 2018

The content of this document can be used for academic and sci-
entific dissemination purposes. It can also be used to design and
implement strategies, programmes and policies to help boost the
development of the information technology sector, as long as the
original sources and the institutions and bodies involved in its prepa-
ration are acknowledged.

This is an abstract in English of the original Spanish version of Mapa
de ruta del sector de las tecnologías de la información del estado
de Jalisco. This document has not been modified since its original
preparation in 2017. ProMéxico, CANIETI Western Chapter, IJALTI
and the information technology sector of the Jalisco region do not
accept any liability for inaccurate information contained herein nor in
future updates of this roadmap.
CONTENTS
INTRODUCTION                                                   12

1. INFORMATION TECHNOLOGY ECONOMY                              18

State Landscape                                                21
  Regional market characteristics                              22
  Information technology impact on Jalisco’s economy           24
  State’s IT ecosystem                                         26
  Information technology sector’s human capital                29
  Smart city Guadalajara: Ciudad Creativa Digital              32

2. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS ANALYSIS   36

Strengths                                                      39
Weaknesses                                                     43
Opportunities                                                  47
Threats                                                        51
SWOT Analysis                                                  54
Root-cause map                                                 56
3. TREND ANALYSIS                                             58

4. STATE OF JALISCO INFORMATION TECHNOLOGY SECTOR STRATEGYY   64
Milestone 1                                                   68
Milestone 2                                                   73
Milestone 3                                                   77
Integrative Project                                           81
State of Jalisco IT sector roadmap                            82

CONCLUSIONS                                                   84

PARTICIPANT INSTITUTIONS                                      89
11
STATE OF JALISCO IT SECTOR ROADMAP

12
INTRODUCTION
           13
STATE OF JALISCO IT SECTOR ROADMAP

14
INTRODUCTION

The state of Jalisco has established itself as a leader         •   Fosters the new and innovative digital business
in science and technology, both in the domestic and                 models.
the international levels, as well as in IT and its related
sectors. Therefore, it is now one of the most produc-           •   Acknowledges the importance of IT as an in-
tive and competitive states in Mexico, able to offer in-            dispensable tool for competitiveness and in-
novative, value-added solutions in these areas.                     novation within the global economic and social
                                                                    dynamics.
    These solutions translate into multiple benefits for
companies and business owners from different sec-            2. Integrate the IT sector efforts to implement strate-
tors and industries, both domestic and international.           gic projects aligned with this roadmap and:

    Nowadays, this sector presents a set of opportu-            •   Combine the local industry capabilities.
nities and strengths that can and should be seized, as
well as weaknesses that should be overcome in order to          •   Promote the constant participation of public
protect the sector from their potential negative effects.           and private actors, and society at large.

     These circumstances led CANIETI Western Chap-              •   Foster the creation of partnerships with organi-
ter, together with IJALTI and the ProMéxico project co-             sations from different geographical areas.
ordination team, to develop a strategic plan to help the
sector to reach high-value common goals, following           3. Generate synergies with:
the technological roadmap methodology and in a joint
effort with a group of seasoned professionals.                  •   Related industries (such as the high-tech sector).

                                                                •   Research centres.
GOALS
                                                                •   Support organisations.
This technology roadmap for the state of Jalisco IT
sector aims to:                                              4. Offer innovative solutions arising from:

1. Consolidate a strategic and comprehensive out-               •   Higher value-added activities.
   look for the next 10 years that:
                                                                •   Higher knowledge intensity, and
   •   Meets the sector’s needs, overcome the is-
       sues, and realises its future opportunities at           •   The development and employment of special-
       a regional, domestic, and international level, as            ised human talent.
       well as the interaction with the sector’s global
       value chains.

                                                                                                                   15
STATE OF JALISCO IT SECTOR ROADMAP

IT SECTOR CLASSIFICATION METHODOLOGY
The North American Industry Classification System (NAICS) aims to provide a single, consistent and updated
framework for the collection, analysis and presentation of economic statistics that reflects the structure of the
Mexican economy, being appropriate to support the definition of the sector in our regional and national context.
The economic activities that bring together the IT sector are the following:

                                           NAICS-based IT sector economic activities

            NAICS 511210                                       NAICS 518210                                      NAICS 541510
        Software edition and                              Electronic processing of                             Computer systems
     software edition integrated                         information, lodging, and                             design services and
          with reproduction                                 other related services                               related services

                        Source: Own elaboration with data from INEGI - North American Industry Classification System, 2013.

   The category 511210, software edition and software edition integrated with reproduction, considers the de-
velopment and edition of massive or packaged software integrated with its reproduction in compact discs (CD),
combined with its diffusion through the Internet.

    The category 518210, electronic processing of information, lodging, and other related services, includes ser-
vices such as the processing of non-bank credit cards, virtual stores, reservation services, access to software
as an application that is offered on shared or dedicated servers, timeshare of mainframe installations; hosting of
web pages and applications; real-time streaming of audio and video data (streaming), microfilming and optical
scanning services.

    The category 541510, computer systems design services and related services, is integrated by the services
in the field of IT through activities such as planning and design of computer systems that integrate hardware,
software and communication technologies, advice on the installation of computer equipment and networks,
administration of computer centres and services of software installation. It also includes the planning, design
and development of software at the client’s request.

    The earlier classification is consistent with the ecosystem that has been developed in the state of Jalisco, al-
though in many areas IT are directly related to communications (call them ICT —information and communica-
tion technologies) since these are enablers of IT and, in many cases, converge to refer to multiple products
or services. Along this document, IT will refer to the classification of products and services defined by the
NAICS, except when the term ICT is expressly used as a result of the aggregate information from its source
also involving products and / or services in addition to the indicated classification.

     .

16
INTRODUCCIÓN

        17
STATE OF JALISCO IT SECTOR ROADMAP

18
INFORMATION
 TECHNOLOGY
    ECONOMY
          19
STATE OF JALISCO IT SECTOR ROADMAP

20
1. INFORMATION
   TECHNOLOGY
   ECONOMY

 STATE LANDSCAPE                                              of this population is distributed mainly in Guadalajara,
                                                              Tlaquepaque and Zapopan (metropolitan area of Gua-
 Jalisco is one of the largest state economies in Mex-        dalajara or ZMG).
 ico since it represents the fourth federal entity with the
 greatest contribution to the National GDP: 6.48%, ac-            The manufacturing sector, with a contribution to
 cording to information from the Institute of Statisti-       the state’s GDP of 21%, was the cradle of a so-called
 cal and Geographic Information of Jalisco (IIEG).            high-tech industry that today represents one of the
                                                              greatest investment attractions for Jalisco. In the de-
     Considering each economic activity, Jalisco occu-        cade of the 60’s, the first foreign investments of the
 pies the first place in the primary sector nationwide,       electronics and IT sectors came to Jalisco: Siemens
 contributing 11.3% to the national total; in the sec-        arrived in 1962, as well as Motorola and Burroughs in
 ondary activities it occupies the fifth national place       1968. Subsequently, the operation of these companies
 with a contribution of 5.9%; as for the tertiary activ-      attracted the installation of others of the same indus-
 ities, the entity occupies the fourth position, account-     try, like Kodak and Zonda in 1970, Texas Instru-
 ing for 6.5% to the national total.                          ments in 1974 and IBM in 1975. With a maturity of
                                                              more than 20 years of operation in Jalisco, the con-
    The state of Jalisco is also the fourth federal entity    glomeration of companies from both sectors became
 with the largest number of inhabitants according to the      very evident, companies such as Hewlett-Packard,
 2010 census. With a total population of 7 million 350        Molex, Advanced Electronics, Delphi Systems and
 thousand people and an average age of 25 years, 50%          others consolidated the electronic manufacturing
                                                              cluster.

                                                                                                                   21
STATE OF JALISCO IT SECTOR ROADMAP

   Thus, in the 90’s, companies such as Sanmina, Jabil, Flextronics, Solectron, Foxconn, Continental, Hella
and Intel complemented the electronics sector, which was transformed from electronic manufacturing to high
technology, which included subsequently electronic design services, automation, creative industries, software
development, computer system development, this is the IT sector, which is embedded in the concept as well as
the manufacture of electronic and telecommunications components in general.

    As a result of this integral growth, Jalisco is considered as the Mexican Silicon Valley, since it brings together
the main manufacturing and high technology services developing companies in the country. Currently, under this
concept are companies ranging from large manufacturers of electronic components to small and medium IT ser-
vice providers that have been calculated in more than 700; such companies serve, both nationally and internatio-
nally, niches as diverse as automotive, aerospace and health, just to mention some.

Regional market characteristics
According to the National Survey on Availability and Use of IT in Homes 2016 (ENDUTIH) conducted by the
INEGI, Jalisco occupies the third place nationwide among the entities with the most Internet users through a
smartphone with 3 million 519 thousand users, out of a total of 44 million 387 thousand nationwide.

         TOP 10 MEXICAN STATES WITH THE MOST MOBILE INTERNET CONNECTION USERS THROUGH A SMART PHONE
                                               4’124,873

     6’000,000
                                                             3’519,424
                            5’985,535

     5’000,000
                                                                         2’493,175

                                                                                          2’183,410

     4’000,000
                                                                                                       1’730,329

                                                                                                                   1’695,963

                                                                                                                                1’639,179

                                                                                                                                             1’565,474

                                                                                                                                                               1’506,000
     3’000,000

     2’000,000

     1’000,000

                0
                           Estado de México

                                              Mexico City

                                                            Jalisco

                                                                         Veracruz

                                                                                          Nuevo León

                                                                                                       Puebla

                                                                                                                   Guanajuato

                                                                                                                                Tamaulipas

                                                                                                                                             Baja California

                                                                                                                                                               Sonora

                                                                                     Source: INEGI.

    By combining this data with the figure of the state’s population that, according to the National Survey of Oc-
cupation and Employment of INEGI, is 8 million 55 thousand 985 inhabitants in 20161, 43.6% of Jalisco citizens
are already users of IT services, particularly mobile services, which is consistent with what is observed at the
national level, making this massive demand a key factor in the dynamics of the sector in the state.

    In addition to the impulse received by the sector from its domestic market, in the period from 2012 to 2016,
Jalisco’s total exports exceeded 216 billion dollars, according to the Institute of Statistical and Geographic In-
formation of the State of Jalisco (IIEG).

1
      INEGI. Interactive Data Consultation. https://goo.gl/VYqmhv

22
INFORMATION TECHNOLOGY ECONOMY

                                         JALISCO EXPORTS. MILLION OF DOLLARS
   48,000
                                                                                                                       47,354
   47,000

   46,000

   45,000                                                                               44,767
   44,000                                                      43,546
   43,000

   42,000

   41,000                           40,597
               40,200
   40,000
                2012                     2013                      2014                      2015                       2016
                        Source: Institute of Statistical and Geographic Information of the State of Jalisco.

    In this sense, the growing trend of sales of products and services abroad, coupled with domestic consump-
tion with sustained growth, demands the development of more and better services to support the activities of
companies in all sectors.

    These support services, as far as IT is concerned, range from the creation of web pages, software, ERP,
CRM, to business intelligence, analysis of large volumes of data, BSS, OSS, among others. It should be
noted that IT services have a transversal impact on all the productive sectors of the economy, including finan-
cial, real estate, surveillance, telecommunications, agro-food, etc.

   Based on the factors outlined above, we find that the state of Jalisco has developed an auspicious environ-
ment for the IT market, in which opportunities for new businesses in the sector arise, for the opening of new
companies and for the consolidation of those that already participate in the market.

                                                                                                                                         23
STATE OF JALISCO IT SECTOR ROADMAP

Information technology impact on Jalisco’s economy
According to the 2014 Economic Census by INEGI, in Jalisco there were 261 economic units whose remittances
correspond to the NAICS classification established in this document for the IT sector, which generated revenues
from sales of services of 3.9 billion pesos, of which, the value added by the sector in Jalisco is 52.5%.

                                 Number of economic                                              Average number of workers
                                    units census                                                      per economic unit
      250                                                                       50
                                                              237
                                                                                            41
      200                                                                       40

      150                                                                       30
                                                                                                                                  24
      100                                                                       20                             18
        50                                                                      10
                                           16
                       8
         0                                                                       0

                  511210      518210          541510                                     511210      518210          541510
                       NAICS IT Classification                                                NAICS IT Classification
                             Total income from services                              Total aggregate value for the economic units of the
                             (millions of Mexican pesos)                              NAICS Classification* (millions of Mexican pesos)
     3,000                                                                   2,000
                                                           2,884.60                                                             1,741.50
     2.400                                                                   1,500
     1,800
                                                                             1,000
     1,200
                                        598.60                                 500
      600          395.30                                                                 134.05             159.30
         0                                                                       0

                  511210      518210          541510                                     511210      518210          541510
                       NAICS IT Classification                                                NAICS IT Classification
                           *It is the aggregate value generated by every economic unit, at each stage of the working process.
                                                         Source: Economic census 2014 INEGI.

     Jalisco is an attractive destination for IT investments, both national and foreign, given the conditions and
context that drive its development, so, since 2013, it has consolidated a total of 28 macro projects, with an
outlay of 301 million dollars.

24
INFORMATION TECHNOLOGY ECONOMY

  IT INVESTMENT PROJECTS CONSOLIDATED BETWEEN JANUARY 2013 AND JULY 2017

       Company                                         Country of origin

         Domer                                              Mexico

          Bosch                                            Germany

     HCL (expansion)                                         India

  Tiempo Development                                     United States

     Intel (expansion)                                   United States

     Dell (expansion)                                    United States

         Luxsoft                                          Switzerland

      Epam System                                        United States

          GEPP                                              Mexico

Centro de Innovación Dina                                   Mexico

         Amdocs                                              Israel

     HCL (expansion)                                         India

     Intel (expansion)                                   United States

     HP (expansion)                                      United States

    Oracle (expansion)                                   United States

      Astra Zeneca                                         England

        Algartech                                            Brazil

        Persistent                                           India

HPE Enterprise (expansion)                               United States

         Wizeline                                        United States

    Bosch (expansion)                                      Germany

  Cognizant (expansion)                                  United States

         Alorica                                         United States

     TPS (expansion)                                        Mexico

 Technicolor (expansion)                                    France

            Wipro                                            India

                             Source: SEDECO Jalisco.

                                                                                                   25
STATE OF JALISCO IT SECTOR ROADMAP

State’s IT ecosystem
In Jalisco, we find an environment that represents the reference model which sustains the national ecosys-
tem, together with Mexico City, Nuevo León and Estado de México. In other words, the favourable conditions
that the IT sector has in our country are available mainly in these states.

    Currently in Jalisco, initiatives are being carried out where public, private and academic bodies collaborate,
which aim to promote the sector through the support of technological entrepreneurs (INTEL PYME LAB, which
is an initiative to support 15 startups and 15 SMEs to promote entrepreneurship and technological innovation
through access to infrastructure, equipment and mentoring with support from the University of Guadalajara,
ITESO, ITESM, INTEL, Continental, Interlatin, among others) and also through the linking of clusters and eco-
nomic sectors , including IT (ICLUSTER, initiative supported by INADEM and led by the Mexican Technological
Platform, which has the purpose of developing an innovation and entrepreneurship ecosystem to facilitate and
optimize the linkage with government, academia and industry actors and their contact with the market; it
includes the University of Guadalajara, ITESM, ITESO, SEDECO Jalisco, INADEM, SICyT and PTM).

    The triple helix in Jalisco has stood out so that government-academia-industry collaboration has been boost-
ed lately, and among the main driving factors are the specialised state clusters in the sector: IJALTI and CIAT.

     In the following sections brief scenarios of the state organisations or clusters are presented.

IJALTI
The Jalisco’s Institute of Information Technologies (IJALTI) has the purpose of promoting the Jalisco’s High Tech-
nology Sector development, through the strengthening, consolidation and positioning of a competitive and inno-
vative IT Cluster, which in turn, will be the driving force for the Jalisco economy and generator of quality of life2.

   Currently, the IJALTI has the Silver Label Recognition awarded by The European Secretariat for Cluster Analysis
(known in Spanish as ESCA) becoming the first cluster outside Europe to obtain this distinction.

     IJALTI main services:

•    Consultancy. Assessment of IT needs in the productive sectors.

•    Training. Courses related to IT and innovation topics.

•    Business opportunities development. Through the detection and promotion of synergies in determining vari-
     ables of the companies’ competitiveness.

•    Software Centre Administration (CSW).

    The Software Centre (CSW), administered by the IJALTI, houses 32 national and foreign companies. Opened
in 2006, it is positioned as the first IT technology park in Mexico; It has more than 10,000 m2 and generates
800 jobs. The CSW forms an ecosystem of technological companies that received a space with adequate and
competitive infrastructure and services, in which they create synergies and promote business.

     CSW service offer:

     •        Leasing of facilities in the co-working model.

     •        Electronic back up.

2
     IJALTI. IT ClusterI. (2017). Available in: https://goo.gl/AEs1ij

26
INFORMATION TECHNOLOGY ECONOMY

    •    Triple Internet redundancy.

    •    Centralized services for the operation.

    •    Common areas and multifunctional rooms.

    •    Networking.

CIAT
The High Technology Integrators Cluster (CIAT) has as its mission to represent the ICT integrators of Jalisco,
generating relationships and growth opportunities, fostering commitment to the development of society through
the implementation of technology, promoting the growth of the capacities and their use for the benefit of society
and its members.

    CIAT has the Bronze Label Recognition granted by The European Secretariat for Cluster Analysis (ESCA).

    Among the services provided by CIAT is the training aimed at the administration of innovation, as well as the forma-
tion of business networks and the linkage between academia, government and industry.

Other organisations
In addition to the clusters, there are representatives of the private IT sector in the state, which are also civil asso-
ciations focused on the competitive development of the national industry. Among its main activities are business
advice, conducting events to promote the sector, development of studies, collaboration with the government,
organisations and allied chambers, academia and industry, among others. The main IT and high technology
chambers established in Jalisco are: CANIETI and CADELEC.

CANIETI Western Chapter
The National Chamber of the Electronics, Telecommunications and Information Technologies Industry has as
its mission: To promote economic performance, innovation and the global competitiveness of the industry for
Mexico’s benefit. By operating under the model of the quadruple helix, CANIETI Western Chapter serves as a
link between industry, government, academia and society in general, promoting the proper development of the
high-tech industry.

    Comprised of 106 partners including Intel, Jabil, Flex, IBM, Sanmina, Continental, HP, HPE, to name a few.

Main services
• Networking. Propitiate suitable platforms that allow the strengthening and creation of valuable contacts
   within the industry.

•   Innovation cells. Challenges within the company that solves university talent through design methodologies
    and agile development.

•   Communication services. Monitoring of the most relevant news media in the sector.

                                                                                                                           27
STATE OF JALISCO IT SECTOR ROADMAP

                                           CANIETI WESTERN CHAPTER GOALS

                                                                                               Talent management

                                                                               Internationalisation & diversification

                STRATEGIC GOALS                                                       SMEs and entrepreneurship

                                                                                       Institutional strengthening

                                                                                               Industrial leadership

              Innovation                        Social Responsibility                               Diversity

                                           Source: CANIETI Western Chapter 2017.

CANIETI Western Chapter key projects:
• Jalisco Digital Transformation for SMEs. Technological acceleration programme where high technology in-
  dustry experts, academia, research centres and financing sources are integrated to allow SMEs to generate
  success stories through increased productivity.

•    CANIETI International Hub. Meeting space for foreign trade missions that visit Jalisco can hold summits or perform
     both operational and networking activities with local partner companies, which will allow them to have a compre-
     hensive view of the ecosystem, as well as knowledge of the region benefits, resulting in investment attraction

•    100 Start-ups. The Balero Association, together with CANIETI and the Government of the State of Jalisco, are look-
     ing for 100 Mexican start-ups to promote them and help them obtain resources in Silicon Valley, considered the best
     place of development for technological entrepreneurs.

•    Digital University. CANIETI together with SICYT develop this innovative educational model that combines flexibility
     and relevance of current issues in the industry in a physical and virtual environment.

CADELEC
The Electronics Productive Chain is a civil association founded in 1997 with the firm objective of developing the
high technology industry supply chain, through training, implementation of quality systems and certifications.

Main services
• Training. Innovation, project management, quality standards topics, etc.

•    Consulting. Companies development through the implementation of quality standards (ISO 9001-2015, IATF,
     AS, ESR, Gender Equity, etc.)

•    Industrial promotion. Events that promote B2B among the partners of the organisation.

28
INFORMATION TECHNOLOGY ECONOMY

Information technology sector’s human capital
Human capital is a key component for the ecosystems of any sector, including IT, and some of Jalisco's mo-
re relevant characteristics and circumstances have already been addressed at both the international and na-
tional levels. However, for the IT sector it is such a crucial element to determine successful development, that
we must analyse in more detail what are the conditions of talent in the state of Jalisco.

    In this sense, IJALTI carried out a study, called IT Talent, in order to address the current situation on the char-
acteristics of talent that are held within the IT sector. This study is composed of 5 lines of work, which include:
attracting talent; accelerated skill development; promotion of Guadalajara as a digital hub; a platform that links
supply and demand; and finally, a pact of good practices in the field of HR.

  This study compiles the opinions of 26 companies from the Jalisco’s IT sector, which together represent
more than 5 billion pesos in payroll.

   Among the results of the study we can highlight:

1) 66% of the employees of an IT company are technical and specialised profiles.

           66%                                                                                         34%
             IT                                                                                      Non-IT

   This implies that the administrative burden of common functions to other sectors does not correspond more
   than a third of the talent in these companies, so that the central value of the business is generated directly
   by those specialists who have sufficient technical skills.

2) The fourth part of the personnel that works in the companies are recent graduates or professionals in training.

                                                                                                               20%
                                                                                                            Students
                                                                                                            (fresher)

           75%                                                                                                  5%
            Base                                                                                              Interns

                                                                                                                          29
STATE OF JALISCO IT SECTOR ROADMAP

     This data represents a productive mix of experience (75% of the personnel) and contributions from the academy
     (25%), giving feedback to one segment to the other, promoting a dynamic environment that favours innovation.

3) The weighted average personnel turnover of the IT sector in Jalisco is 10.1%.

                0.4

                0.3

                0.2
     Rotation

                0.1

                0.0
                                                                                              10.1%
                                                                                          Weighted average
                -0.1                                                                      personnel turnover
                                                                                           of the IT sector
                                                                                               in Jalisco
                -0.2
                                             Employees

     The data provided by the study represents a challenge for the sector since the talent remains in the
     same organisation, on average, 5 years; what is a short time in a typical learning curve, complicating that
     the contributions of individuals reach a stage of maturity in which the value contributed is greater.

4) 60% of the surveyed companies foresee hiring more IT professionals in the following 12 months.

                                                                                                       28%
                                                                                                       Same

                                                                                                        8%
                                                                                                      Lower

                       60%                                                                              4%
                       Higher                                                                         Layoffs

30
INFORMATION TECHNOLOGY ECONOMY

5) 70% of the hired talent is recruited directly in Jalisco.

                                                                                                     2.5%
                                                                                                     India

                                                                                                     1.2%
                                                                                                     Latin America

                                                                                                     0.1%
                                                                                                     United States

         57%                        26%                   13%                4%
       Guadalajara                 Other                 Jalisco            Other                    0.6%
                               Mexican states      (without Guadalajara)   countries                 Other countries

   This information verifies the potential of the state in terms of providing, quantitatively, the talent needed by the
   sector, benefiting employment and the integration of professionals graduated from higher institutions.

6) The priorities of the sector, in terms of talent and in order of relevance by the mentions received in the study,
   are: retention, attraction, specific technical skills (hard skills), sufficient use of English language, interper-
   sonal skills (soft skills) and leadership development.

      Retention

      Attraction

     Hard skills

    English (SL)

      Soft skills

    Leadership

                                                                                                                          31
STATE OF JALISCO IT SECTOR ROADMAP

     7)       The areas of greatest growth in job posts are not those that represent the greatest volume at present.

               The fastest growing areas aren’t those who represent the greatest volume at present
    2.5
             Security                                                                 1 Quality and testing 55%
             229%
                                                                                      2 Software development 50%
    2.0                                                                               3 Web development 45%
                                                                                      4 Consulting and system integration 36%
                      Data                                                            5 Networks / Telecommunications 32%
    1.5
                      bases                                                           6 Operations15%
                      105%                                                            7 Administrative10%
    1.0
                                     1

                              2                   Support and                                      Application
    0.5                   3                       technical service                               development
                      4
              5                                   45%                                                46%
                  7                  6

       0              1,000              2,000   3,000      4,000     5,000   6,000       7,000      8,000       9,000    10,000

    This information relates to the priority need of the sector to deploy personnel with sufficient and specific
technical skills, since currently the bulk of the sector is serving markets whose growth has slowed down, and
there is an opportunity to provide services of different kinds that require a different specialisation given the re-
quirements of the current market. The study emphasizes that in matters of computer security and databases,
these areas should be taken into consideration by academia and other talent trainers.

    With this, the study shows that the IT sector in the state has a permanent and growing demand for human
resources, consistent with a growing industry; However, the technical capabilities of the graduates available
need to be balanced with the requirements of the employers, providing very specific knowledge needed to fill
the vacancies in the companies, including full command of English that enables the sector to interact effec-
tively with customers and strategic partners based in other countries.

Smart city Guadalajara: Ciudad Creativa Digital
Ciudad Creativa Digital (CCD), located in Guadalajara, is an emblematic project that aims to develop the IT sec-
tor and the creative industry of the state, carried out by the Secretariat of Economy of the Federal Government,
ProMéxico, Sociedad Hipotecaria Federal, the Government of the State of Jalisco, the CANIETI and the Guada-
lajara’s Council that seeks the renewal of the urban environment to create an ideal space for the development
of people, generating a modern and interconnected scenario where talent and creativity generate knowledge,
promoting the use of new technologies and improving the quality of life in the metropolitan area of Guadalajara.

    This project, given its value and impact, was designed and planned through a detailed process that sought to
incorporate the international experience in studies and urban planning of a team of experts, led by Professors Den-
nis Frenchman and Carlo Ratti of the Department of Urban Studies and Planning (DUSP) from the Massachusetts
Institute of Technology (MIT). Other participants were: Accenture (United States), ARUP (Spain), Engram Stu-
dio (Italy), Fundación Metrópoli (Spain), MIC-Mobility in Chain (Italy), Senseable City Lab (MIT — United States)
and Studio FM Milano (Italy). In November 2012, Guadalajara Ciudad Creativa Digital master plan was pre-
sented.

    Located in the heart of the capital of Jalisco, CCD concentrates creative industries such as film producers,
television, videogame, digital animation, interactive media, software engineering and mobile applications, among
others, positioning the state as a relevant productive centre to a sector that today is a vanguard in global economy.

32
INFORMATION TECHNOLOGY ECONOMY

    The benefits generated by CCD have an impact on four dimensions of the state development:

    Economic
    Promotion of the media and entertainment industry; business creation; boost to investment and exports; and
    migration towards a knowledge-based economy.

    Urban
    Comprehensive rehabilitation of Guadalajara’s historical centre, with criteria of patrimonial conservation; pro-
    motion of ways to optimize mobility and security.

    Cultural
    Integration of local culture with industries, as well as digital culture integration into the everyday environment.

    Social
    Inclusion and participation of the neighbours, and society in general, reactivating the local economy; improve-
    ments to the quality of local life in terms of urban infrastructure, mobility and security; social fabric regeneration
    and vulnerable groups attention.Therefore, the strategic axes that have been raised as necessary to allow the
    CCD enablement are:

1) Work and recreational elements or spaces of mixed, comfortable and connected uses.

2) Mobility, through a safe, accessible and efficient environment fosters pedestrian traffic and contributes to
   discourage the use of the automobile as the main means of transportation.

3) Infrastructure, that will implement international advanced standards to improve the quality of life of CCD
   users and contribute to its sustainable vision.

4) Sustainability, through an ecological design that allows it to be a zero-carbon footprint development.

5) Smart City, as an entity that adapts to its immediate environment, responding in real time to the needs
   of the community, the activities carried out there and the environmental conditions as a result of a set of
   sensors and linked devices with the data centre that have a positive impact on the economy, productivity
   and sustainability.

6) Urban design, aimed at establishing a mixed-use model, with an adaptable and future-oriented scheme that
   merges spaces for the creative industry with education, housing and commerce, with multiple areas open for
   human and digital interaction, in a range of pedestrian enjoyment.

    From these strategic axes, well-identified catalytic macro-projects have also been defined, such as:

•   Data centres development

•   Establishment of avant-garde educational spaces

•   Enabling of smart public spaces

•   Space assignment for innovative companies

                                                                                                                            33
STATE OF JALISCO IT SECTOR ROADMAP

In this way, the CCD plan to boost industrial growth follows two strategic lines:

1) The digital creative industry strengthening, capable of generating expressions of intellectual property linked
   to technological innovation.

2) Establishment of a competitiveness and entrepreneurship framework.

     The CCD development as a urban complex, as well as the projects around it, seek to consolidate
Guadalajara as a smart city and Jalisco as the ideal state for the development of the technological industry
that can compete internationally with a sustainable, attractive model for investments and entrepreneurship
and capable of integrating technology in daily life.

34
35
STATE OF JALISCO IT SECTOR ROADMAP

36
STRENGTHS,
  WEAKNESSES,
OPPORTUNITIES,
  AND THREATS
     ANALYSIS
             37
38
2.STRENGTHS,
  WEAKNESSES,
  OPPORTUNITIES,
  AND THREATS
  ANALYSIS
 The following SWOT analysis shows the status of the                As part of the SWOT analysis and in order to iden-
 IT sector in the state of Jalisco at the end of 2017.          tify the relevance of the different strengths, we per-
                                                                formed a quantitative assessment according to the
     This analysis, which was conducted by a group              number of times they were mentioned by the working
 of trusted professionals that participated in the work-        group members.
 shops where this technology roadmap was drafted,
 can be used to support the development of the sec-                 The two most frequently mentioned strengths are
 tor’s strategy, as it examines the State’s main strengths      related to human resources. On the one hand, Jalisco
 in order to better harness present and future oppor-           has an IT-specialised labour force. On the other hand,
 tunities, offset current weaknesses, and minimise the          the sector has utilised knowledge management to ex-
 impact of the threats identified.                              ploit the current conditions; such as harnessing the
                                                                skills and expertise acquired by those working in the
                                                                electronics sector.
 STRENGTHS
                                                                    The third most frequently mentioned strength is
 The strengths detailed include those internal and posi-        Jalisco’s dynamic and heterogenous ecosystem
 tive elements that are distinguishing features or special      that is comprised of a large variety of IT companies
 capabilities particular to the state of Jalisco’s IT sector;   as well as a large number of public and civil society
 such as state resources, capabilities, and skills, as well     organisations and institutions, bolstering the region’s
 as activities conducted successfully in the region.            high growth rate and sustainable development.

                                                                                                                    39
STATE OF JALISCO IT SECTOR ROADMAP

                                                            STRENGTHS ANALYSIS
                                             0%   5%      10%     15%     20%    25%     30%   35%   40%     45%   50%    55%

                Industry knowledge
                       management                                                                                        56%
                        Human capital
                                                                                                                         56%
                       specialised in IT
          Educational institutions                                                                           48%
               committed with IT
                                Dynamic
                                                                                                             48%
                               ecosystem
                              Triple helix
                                                                                                       44%
                             involvement
           Positive positioning of
                                                                                                 40%
          the state and the sector
                         Governmental                                                    32%
                               support
                            Start-ups                           16%
                       dynamic growth
                      Technological                      12%
               infrastructure growth
                    Competitive cost
                                                   8%
                       of IT services

                                                       Source: IT roadmap group of experts.

    The chart below shows the relevant development areas; such as human talent, and public and businesses
policies. These same areas have allowed a growing number of new companies to establish operations in the
state, as well as a series of projects that have enhanced the technology infrastructure and increased Jalisco’s
IT services cost-competitiveness and its exports.

40
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

                                             STRENGTHS BY DEVELOPMENT AREA

                                                                                                     Development Areas

                                                                                                                                                               Internationalisation
                                                                                                                                 Entrepreneurship
                                                                                                                 Public policy
  Number

                                                                                                                                                                                      Environment
                                                                                                     Ecosystem

                                                                                                                                                    Business
                                         Strengths

                                                                                            Talent
   1       Industry knowledge management                                                     X

   2       Human capital specialised in information technologies                             X

   3       Educational institutions committed with IT                                                 X

   4       Dynamic ecosystem                                                                          X

   5       Triple helix involvement                                                                   X

   6       Positive positioning of the state and the sector                                                                                                       X

   7       Governmental support                                                                                    X

   8       Start-ups dynamic growth                                                                                X               X

   9       Technological infrastructure growth                                                                                                                                         X

  10       Competitive cost of IT services                                                                                                           X

                                              Source: IT roadmap group of experts.

   Most strengths are industry-associated, namely, many of the positive aspects described above have been
supported mainly by the business sector; however, government and academia have also been key to building
these strengths.

    The role of academia has been key not only to the development of specialised human resources but also to the
continuous engagement with other players in order to strengthen strategic initiatives and projects related to the
sector; such as innovation and specialised research centres, scientific and technological development in partner-
ship with the private sector, basic and applied research in IT, and projects like Smart City Guadalajara (Guadala-
jara Ciudad Creativa Digital).

    Likewise, the government has acted through bodies like the Secretariat for Economic Development, the Secre-
tariat for Innovation, Science and Technology, and the State Council for Science and Technology that have helped
to trigger, encourage, and develop the IT sector through policies, programmes, plans, and public agendas.

                                                                                                                                                                                           41
STATE OF JALISCO IT SECTOR ROADMAP

42
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

WEAKNESSES
According to our SWOT analysis, the state of Jalisco IT sector weaknesses are related to inefficiencies when
executing action plans or to unfavourable measures to the sector’s development.

   These weaknesses result from failing to take the necessary measures to manage them; that is, identify them
and develop strategies to either resolve them or minimise their impact on the sector.

    The most important weaknesses identified are related to, on the one hand, the lack of alignment between
talent demand and supply; and, on the other hand, the lack of seamless and efficient communication to enable
collaborative efforts by removing barriers and generating the necessary synergies among the ecosystem players.

  The former has to do with the lack of accurate data about the industry human resources needs in the short,
medium and long terms; thus, the state higher education institutions cannot properly manage their offering.

    The latter is the result of government, academia, and private sector working separately when developing cer-
tain types of projects and /or simply duplicating efforts. Should all three communicate better, it would be possible
to achieve a closer collaboration and a joint commitment to make these initiatives more effective and efficient.

                                              WEAKNESSES ANALYSIS
                                                       0%   10%   20% 30%        40% 50%       60% 70%         80%     90% 100%

    Inconsistency between industries expectations
                      and the available talent offer                                                                    100%
               Limited organisation and integration
                                                                                                                88%
                          of the sector ecosystem
                                 Lack of a dynamic                           44%
                                   business culture
                           Low impact of available
                                                                     32%
                        public funds in the industry
                   Inadequate dissemination of the
                                                            16%
                       products and services offer

                                          Source: IT roadmap group of experts.

   The main identified weaknesses are business-related, as companies have difficulties adapting and keep-
ing up with technological changes, even though they are high-tech companies, as well as new business models
and the current economic climate.

                                                                                                                                       43
STATE OF JALISCO IT SECTOR ROADMAP

                                                  WEAKNESSES BY DEVELOPMENT AREA

                                                                                                     Development Areas

                                                                                                                                                               Internationalisation
                                                                                                                                 Entrepreneurship
    Number

                                                                                                                 Public policy

                                                                                                                                                                                      Environment
                                                                                                     Ecosystem

                                                                                                                                                    Business
                                           Weaknesses

                                                                                            Talent
     1       Inconsistency between industries expectations and the available talent offer    X

     2       Limited organisation and integration of the sector ecosystem                             X

     3       Lack of a dynamic business culture                                                                                                                   X                    X

     4       Low impact of available public funds in the industry                                                                  X

     5       Inadequate dissemination of the products and services offer                                                                             X

                                                    Source: IT roadmap group of experts.

    In the state of Jalisco, IT companies are well-positioned to resolve the sector’s weaknesses, leading the way
for government, academia, and the society at large to follow. Therefore:

•        They must clearly formulate their talent needs and communicate them clearly to the academic sector.

•        They must get organised and join initiatives with common goals.

•        They must do their best to improve their competitiveness.

•        They must make efficient use of public resources through funding.

•        They must have a clearer value proposition and, consequently, clearer dissemination strategies.

44
45
STATE OF JALISCO IT SECTOR ROADMAP

46
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

OPPORTUNITIES
In order to turn opportunities into strengths, the IT sector needs to continuously work towards generating very
specific strategies that, besides targeting the necessary resources to achieve its goals, promote the sector’s
expansion and growth.

    Nowadays, there are new and interesting external opportunities for the IT sector, as the state’s technological
development is allowing businesses in the region to offer new products and better services. Below are listed the
conditions (opportunities) where the state of Jalisco IT sector is well positioned compared to its domestic and
international competitors.

    The demographic bonus is certainly one of the main opportunities not only for the state of Jalisco but for the
whole country. This demographic bonus will last for a few more years and we must realise its potential, especial-
ly for high value-added activities such as the ones related to high-tech industries, IT in particular.

   On the other hand, the internationalisation of the sector’s products and services can be achieved by joining
global value chains, establishing partnerships with other players, and selling intangible goods.

    Jalisco is one of the Mexican states that receives more foreign investment in high technology projects. This
has led a wide range of internationally known companies to establish their operations here. However, the state’s
IT industry faces the challenge of attracting companies and other stakeholders that foster its specialisation and
the growth of its added value.

   Positioning IT products and services in new niches entails promoting information technology in new markets
and, also, steer its capabilities to meet the needs of well-differentiated market segments.

                                              OPPORTUNITIES ANALYSIS
                                                       10%     20%      30%       40%       50%        60%        70%        80%

                             Demographic bonus                                                                    72%
                  Internationalisation of products
                       and services of the sector                                                         68%
                     Positioning of products and
                   services of IT on new markets                            36%
                 Greater use of foreign investment
              in strategic projects from the sector                  28%
              Global development of multicultural              20%
                      collaborative environments
    Incremental incorporation of new IT products           16%
  and services in traditional governmental sectors
                      Integration of methods and         12%
                technology used by other sectors
                    Sector products and services         12%
                                with falling costs
                          Geographic positioning       4%

                                           Source: IT roadmap group of experts.

                                                                                                                                        47
STATE OF JALISCO IT SECTOR ROADMAP

    Besides including areas such as internationalisation, new businesses, and cost reduction, the identified op-
portunities by the IT roadmap group of experts can be classified according to their strategic priorities in
terms of human talent and innovation, as is the case of the development of global multicultural collaborative
environments. Thus, many of the lessons learned we can harness from other ecosystems of advanced or ma-
ture technologies deal with the capacity to develop innovative products and services by a talent pool that
works jointly regardless of geographical distances, language barriers, and/or cultural differences.

                                             OPPORTUNITIES BY DEVELOPMENT AREA
                                                                                                 Development Areas

                                                                                                                                     Internationalisation
  Number

                                                                                                                                                            Environment
                                                                                                 Ecosystem
                                                                                                             Innovation

                                                                                                                                                                          Financing
                                                                                                                          Business
                                         Opportunities

                                                                                        Talent
   1       Demographic bonus                                                                                                                                 X

   2       Internationalisation of products and services of the sector                                                                  X

   3       Positioning of products and services of IT on new market                                                        X            X

   4       Greater use of foreign investment in strategic projects from the sector                X                                     X                                  X

   5       Global development of multicultural collaborative environments                X                    X            X            X

           Incremental incorporation of new IT products and services in traditional
   6                                                                                                                       X
           governmental sectors

   7       Sector products and services with falling cost                                                                  X

   8       Integration of methods and technology used by other sectors                                        X            X

   9       Geographic positioning                                                                                                                                          X

                                                 Source: IT roadmap group of experts.

    Similarly to the state’s strengths, its opportunities are greatly linked to the role played by the industry in
realising their potential. However, unlike its strengths, there are few opportunities directly related to academia,
government, and civil society. Thus, the industry plays a key role in exploring the identified opportunity areas;
however, this does not mean that the industry can do away the support from other sectors to achieve its goals.

    For example, the government could help the private sector to strengthen its local value chain by identifying
and attracting companies able to generate well-paid jobs, transfer technology, and develop value-added activi-
ties focused on designing and selling IT products and services; as well as support those businesses working in
disruptive, under-exploited technologies.

48
49
STATE OF JALISCO IT SECTOR ROADMAP

50
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

THREATS
Threats are external factors to Jalisco’s IT sector that may adversely affect its performance, be them issues,
obstacles or limitations that may reduce or slow down the industry’s growth and development. The IT sector is
tackling these threats by following the strategies and decisions already implemented by the state of Jalisco or
the rest of the country.

   The threats identified by the IT roadmap group of experts in Jalisco are related to different areas, including
economic, social, and political issues affecting the IT sector and other sectors in the state and the country as
a whole.

    The most relevant threats include a poor or non-existing banking offer to the IT industry, and the sector
companies’ failure to rapidly adapt to new business environments, both of which require proper mitigation
strategies.

    The threat-frequency ratio shows that, in addition to the threats already mentioned, inconsistencies in digital
regulations and legislation were some of the mostly mentioned threats, as Mexico’s technology-specific
legislation, like that of many other countries, is lagging behind the advances in this area. Regulatory
gaps are becoming increasingly bigger and more visible, which, over time, could have negative effects for the
IT industry but, also, for society at large.

                                                         THREATS ANALYSIS
                                                     0%      5%    10%   15%   20%   25%    30%     35%      40%     45%      50%     55%
                    Development banking with
                  poor product and service offer                                                                              52%

           Insufficient offer of talent in the region                                                         44%

             Political discontinuity and instability                                                   40%

    Inconsistent digital regulation and legislation                                        32%

  Political and commercial barriers with the USA                                           32%

                              Economic instability                             24%
                   Lack of ability to adapt to the
                     new business environment                                  24%
                        Competitive pressure by
                       the emerging economies                      12%
                        International and national
                            competitive inequality           8%
                            Anti-globalisation and
                         economic protectionism               8%

                                    Digital illiteracy        8%
                                    Insecurity and
                                  organised crime 4%

                                              Source: IT roadmap group of experts.

   Contrary to all other elements assessed in this SWOT analysis, all threats are related to contextual aspects
over which the IT sector has no control.

                                                                                                                                           51
STATE OF JALISCO IT SECTOR ROADMAP

                                                  THREATS BY DEVELOPMENT AREA
                                                                                              Develpment Areas

                                                                                                                  Public policy

                                                                                                                                             Environment
  Number

                                                                                                      Ecosystem

                                                                                                                                  Business
                                                      Threats

                                                                                             Talent
   1       Development banking with poor product and service offer                                     X

   2       Insufficient offer of talent in the region                                         X

   3       Political discontinuity and instability                                                                                            X

   4       Inconsistent digital regulation and legislation                                                                                    X

   5       Political and commercial barriers with the United States                                                                           X

   6       Economic instability                                                                                                    X

   7       Lack of ability to adapt to the new business environment                                                                X

   8       Competitive pressure by the emerging economies                                                                                     X

   9       Digital illiteracy                                                                                       X

                                                                                                                                   X
  10       Anti-globalisation and economic protectionism

  11       International and national competitive inequality                                                                       X

  12       Insecurity and organised crime                                                                                                     X

                                                     Source: IT roadmap group of experts.

       Given that these threats stem from business environment, public policies, and ecosystem, mitigating them
       will require joint efforts by different stakeholders. Cooperation between government and civil society will be
       key to address them and will surely help to overcome them. Now, regarding talent and business-related
       threats, companies will need to determine what changes they would need to make and include them into
       their short, medium, and long-term strategic plans.

52
53
STATE OF JALISCO IT SECTOR ROADMAP

SWOT ANALYSIS

                                                                                  STRENGTHS

                                                                                                                                            Dynamic
                                                                   Educational                                                             ecosystem
                                                                   institutions
                                                                   committed                  Governmental
                                                                      with IT                   support
                                      Human capital                                                                  Technological
                                       specialised                                                                   infrastructure
                                          in IT                                                                          growth

                                                                                       Start-ups
                                                                                     dynamic growth                             Competitive cost
                                                                                                                                of IT services
      POSITIVE AND NEGATIVE FACTORS

                                                            Industry                                                              Triple helix
                                                           knowledge                                                             involvement
                                                           management

                                                                                  Positive positioning
                                                                                     of the state
                                                                                    and the sector

                                            Lack of a
                                            dynamic
                                            business                                           Limited                          Low impact of available
                                             culture                                         organisa-                         public funds in the industry
                                                                                                 tion
                                                                                           and integration
                                                                                            of the sector
                                                                                             ecosystem

                                                Inconsistency
                                              between industries
                                                 expectations
                                               and the available
                                                  talent offer
                                                                                                         Inadequate dissemination of the
                                                                                                            products and services offer

                                                                             WEAKNESSES
                                                                                      INTERNAL

54
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

                                   OPPORTUNITIES

                                                             Integration of methods
     Demographic                                              and technology used
       bonus                                                     by other sectors
                                 Sector products                                                      Greater use of foreign
                                  and services                                                       investment in strategic
                                 with falling costs                                                  projects from the sector

 Incremental incorporation of new IT products                       Geographic
and services in traditional governmental sectors                    positioning

                              Global development of multicultural             Internationalisation
                                  collaborative environments                      of products
                                                                                  and services
                                                                                 of the sector
Positioning of products and services
       of IT on new markets

                                                                                           Lack of ability to adapt to the new
                                                                                                 business environment

                                                                    Competitive pressure by the
                                       Economic                       emerging economies
        Development                     instability
        banking with
        poor product
       and service offer

                                               Anti-globalisation                                         Political
                                                and economic                                           discontinuity
                                                protectionism           Inconsistent                   and instability
International and national
    competitive inequality                                                 digital
                                                                         regulation
                                                                       and legislation
  Insecurity and
organised crime                        Insufficient offer
                                            of talent
                                         in the region                                                      Political and
                                                                                                            commercial
                                                                                                              barriers
      Digital                                                                                               with the USA
    illiteracy

                                            THREATS
                                              EXTERNAL

                                                                                                                                          55
STATE OF JALISCO IT SECTOR ROADMAP

 ROOT-CAUSE MAP

                                                        GREATER COMPLEXITY TO DEVELOP STRATEGIES

                                                                                   Technological
  This map portraits                 GREATER IMPACT
                                                                                   infrastructure                                                       Positioning of
  the cause-effect                                                                        growth                                                        products and
  relationships                                                                                                                                         services of IT
  between the                                                   Inconsistent                                                                            on new market
  strengths, weak-                                                 digital
  nesses, opportuni-                                           regulation and
                                                                 legislation                                             International
  ties, and threats                                                                                                      and national
  identified in our                                                                                                      competitive
  SWOT analysis.                                                                              Lack of a                  inequality
                                                                                              dynamic
  The map’s                                                                                   business
  horizontal axis                                                                              culture
  includes two
  opposed dimen-                                                                                                                                            Lack of ability to adapt
  sions: the order in                                                                                                  Greater use                           to the new business
  which different                                                                                            of foreign investment                               environment
  elements must be                                                                                            in strategic projects
  addressed                                                                                                        from the sector
  (bottom-up), and
  the potential level                                               Political
  of complexity of                                               discontinuity
  the strategies                                                                                                                      Integration of
                                                                 and instability
  addressing them                                                                                                                     methods and
                                                                                                          Economic
  (top-down); the                                                                                                                   technology used
                                                                                                           instability
  vertical axis shows                                                                                                                by other sectors
  their impact or                                                                                                                                                    Limited
  effect on the                                                                                                                                                   organisation
  ecosystem.                                                                 Competitive                                                                         and integration
                                                                              pressure by                                                                         of the sector
  The diagram                                                               the emerging                                                                           ecosystem
  shows the most                                                              economies
  relevant SWOT                                                                                                Demographic
  items given their                                                                                              bonus                               Incremental incorporation of
  potential impact                                                                                                                                 new IT products and services
  on the sector, their                                              Political
                                                                                                                                                                    in traditional
                                                                      and
  capacity to                                                     commercial                                                                               governmental sectors
  generate strate-                                                barriers with
  gies, as well as the                                             the USA
  cause-effect
  relationships
  between them.
                                                                                                                                                                    Dynamic
                                     LESS IMPACT

                                                                                                                                         Governmental
                                                                                                                                           support                 ecosystem

                                                      Insecurity       Anti-globalisation                   Development
                                                                                                              banking                                         Low impact of
                                                      and organised    and economic                                                                           available public
                                                      crime            protectionism                         with poor
                                                                                                            product and                                       funds in the
                                                                                                            service offer                                     industry

                                                                       LESS PRECEDENCE

56
STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS ANALYSIS

                                                  LESS COMPLEXITY TO DEVELOP STRATEGIES

                                                                                                Competitive
                                                                                                cost of IT
                                                                                                services
                                                          Human capital
Internationalisation                                      specialised in
    of products                                            information
                                                          technologies       Start-ups            Sector products
   and services                                                               dynamic                 and services
   of the sector                                                               growth              with falling cost

                                        Inadequate
                                        dissemination
                                        of the products
                                                                  Digital
                                        and services
                                                                illiteracy
                                        offer
                          Positive
                       positioning of
                       the state and                                              Insufficient offer
                         the sector                                                  of talent in
                                                                                     the region

                                                             Educational
                                                              institutions
                                                             committed
                                                                with IT
                                                                                                                 Geographic
                                                                                                                 positioning

                                                                                    Industry
                                                                                   knowledge
                                                                                   management
                                                     Triple
                                                      helix
                                                  involvement

                                                                                         Global development
                                                                                         of multicultural collaborative
                                                                                         environments

                                                Inconsistency
                                             between industries
                                              expectations and                                              Strengths
                                                 the available
                                                  talent offer                                           Opportunities
                                                                                                         Weaknesses
                                                                                                              Threats

                                                                             GREATER PRECEDENCE

                                                                                                                                       57
STATE OF JALISCO IT SECTOR ROADMAP

58
TREND
ANALYSIS
       59
STATE OF JALISCO IT SECTOR ROADMAP

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3.TREND
  ANALYSIS

 This global and domestic trend analysis seeks to           This analysis contemplates the prospective study of
 supply relevant information in order to determine      the most relevant social, economic, environmental, techno-
 where the IT sector is headed and to identify possi-   logical, political, and legal trends over the next 30 years,
 ble global and domestic scenarios that may affect it   which were identified by the working group that drafted this
 in the future.                                         technology roadmap as the ones with the highest potential
                                                        future impact on the sector.

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STATE OF JALISCO IT SECTOR ROADMAP

TREND ANALYSIS TIMELINE
                                          2018          2019         2020             2021     2022          2023     2024        2025      2026   202
                                     Smart cities and the impact of migration
                                     Consolidation of the personal data security market
                                     Greater pay and specialisation in IT jobs
                                     Social bonds and collaboration through technological networks
                                     IT integration to the day-to-day of society
                                     Multi-generational work interactions
                 SOCIAL
                                                                  Changes on the population pyramid growth rate
                                     Greater concentration of population in megacities
                                     Accelerated adoption of ICT services by society
                                     Corruption and information technology
                                     Competency-based education
                                     Reconfiguration of social structures and values

                                     Subscription economy vs. traditional business models
                                     Sharing economy
                                     Use of Blockchain and cryptocurrencies gains relevance in the market
          ECONOMIC
                                     Smart manufacturing
                                     New payment methods for the unbanked population
                                     eCommerce as a business democratisation tool

                                     Sharing economy platform regulation
                                     Intellectual property: greater protection and growth of registrations
       POLITIC AND                   Changes in domestic and international regulatory frameworks with an impact on IT
            LEGAL
                                     Development of public policies to optimise mass transportation
                                     Transparency and citizen participation

                                     Greater use of renewable, clean, and alternative energy
                                     Sustainable use of natural resources

ENVIRONMENTAL                        Environmental sustainability as a part of the corporate agenda
                                     Smart Logistics in use
                                     Environmental culture and its corresponding regulatory framework

                                     Use of sub-orbital satellites for the Internet
                                     Broader implementation of new technology-based educational models
                                     Cybersecurity to protect digital infrastructures
                                     Artificial intelligence continued progress
                                     Greater use of augmented and virtual reality
                                     Development of renewable energy storage technologies
TECHNOLOGICAL
                                     IoT massive deployments
                                     Cloud-based services (XaaS)
                                     Process automation with intelligent systems
                                     Democratisation of the mobile Internet
                                     i4.0 revolution based on the adoption of IT by traditional sectors
                                                                 Replacement of the traditional retail model with B2C electronic commerce

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