1. MRI SCAN enhancing the competitiveness of a sector in global markets
VALUE PROPOSITION
CUSTOMER VALUES
ValueNomics
MRI SCAN enhancing the competitiveness
of a sector in global markets
CEDIS – Centre for competitiveness

2. ValueNomics In this presentation, we will explain
The basics of competitiveness
Stakeholder mapping for a sector
The theory behind the MRI scan, a competitiveness assessment
The process of execution of the MRI scan
The construction of the FSI matrix, the building block for a sector strategy and action plan

3. ValueNomics
Valuenomics is a new concept on trade development and –promotion
It is designed for business support organizations and governmental institutions
Focus is on understanding and enhancing “competitiveness”

4. MRI SCAN VALUE PROPOSITION CUSTOMER VALUES
The MRI SCAN is Valuenomics’ powerful tool to measure a sector’s competitivenss on global markets
It is the building block for sector strategies
Its focus is on the value proposition, but this time on mesoeconomic level –the sector

5. Basics of competitiveness

6. COST VALUE COMPETITION CUSTOMERS
Reference to competitivensss assumes cost competitiveness only
As customers, we do not buy based on cost alone. We buy “value”
COMPETITION
CUSTOMERS
Cost competitiveness forces us to focus on the competition
Value is as perceived by the customer. This brings the focus on the customer

7. COMPETITIVE ADVANTAGES
Competitiveness is based on the ability to create value for customers. Value is created through
COMPETITIVE ADVANTAGES
TECHNOLOGY = Creating new, developing or adapting existing products
PRODUCTION = Transformation of inputs into a final product
LOGISTICS = All in-bound, in-house, out-bound movement of goods MARKETING = Attracting new and retaining existing customers
SERVICE = All pre/after sales support, personalization of processes
COMPARATIVE ADVANTAGES
MINDS = People with a higher education and/or creativity
MONEY = Financial resources or financing
MAN POWER = Skilled, proficient or experienced workers
METHODS = Business processes, like quality assurance
MATERIALS = Raw materials, seeds, ingredients a/o

8. From a historical perspective, the importance of the competitive advantages has changed . . .
TECHNOLOGY
PRODUCTION
LOGISTICS
MARKETING
SERVICE

9. 2. Stakeholder mapping

10. CENTRAL
BANK
The first step is to identify the stakeholders that have an impact on the competitiveness of the sector . . .
REGULATORY
BODIES, AGENCIES
LOCAL
GOVERNMENTS
RECRUITMENT
MINISTRY OF
SERVICES
AGRICULTURE
FINANCIAL
SERVICES
RESEARCH INST
MINISTRY OF INDUSTRY
CERTIFICATION
TECHNOLOGY
SUPPLIERS
TRADERS
MINISTRY OF TRADE
REGIONAL BSO’s
BUYERS
MATERIALS
WHOLESALE
SUPPLIERS
RETAILERS
MINISTRY OF TOURISM
SECTORAL BSO’s
GROWERS PRODUCERS MANUFACTURERS
MANUFACTURERS
DRIVERS
ENABLERS
ACTORS
PRODUCERS
PACKERS
MINISTRY OF FINANCE
MIDDLE MEN
FUNCIONAL BSO’s/ NGO’s
PROCESSORS
PROCESSORS
PACKERS
DISTRIBUTORS
MINISTRY OF ECONOMICS
ICT SERVICES
ASSEMBLERS
IMPORTERS
EXPORTERS
MINISTRY OF PLANNING
KNOWLEDGE
INSTITUTES
Each of these stakeholders have a role in the system that makes up for the value proposition of the sector
INT. AGENCIES
LOGISTICAL
SERVICES
DONORS
KNOWLEDGE
INSTITUTES
TRADE SUPPORT
INSTITUTE
PORTS CUSTOMS

11. MARKETING POST HARVEST PRE HARVEST
PUBLIC PRIVATE
The second step is the mapping i.e establishing the relevance of each stakeholder from
the private and public sector in the three value creating domains.
Following is an example of stakeholder mapping in the Tanzanian coffee sector…….
MARKETING POST HARVEST PRE HARVEST

12. MARKETING POST HARVEST PRE HARVEST
PUBLIC PRIVATE
MARKETING POST HARVEST PRE HARVEST
MINAG - Ministry of Agriculture
TCB - Tanzania Coffee Board
MTIM - Ministry of Trade, Industry and Marketing
PA - Port Authorities
LOCAL GOVERNMENTS
TACRI
MNC FG CU
CBA
TACOBA
TCA
TGCA CA
TCB
TPRI PA
MINAG
MTIM
TPRI - Tanzania Pest Research Institute
TACRI - Tanzania Coffee Research Institute
TCGA -Tanzania Coffee Growers Association (dormant)
CBA - Cherry Buyer’s Association
CA - Cafe Africa
TCA - Tanzania Coffee Association
TACOBA -Tanzania Coffee Buyers Association
FG -Farmer Groups
CU - Cooperatives, Unions

13. 3. MRI scan – the theory

14. On each crossroad we assess the competitiveness of the sector on 5 criteriaY
MINDS
MONEY
MAN POWER
METHODS
MATERIALS
The MRI scan is a matrix.
On the vertical axis, we list the stakeholders of the sector …….
MINDS
MONEY
MAN POWER
METHODS
MATERIALS
MINDS
MONEY
MAN POWER
METHODS
MATERIALS
ACTORS
REPORTS
REPRESENTATION
READINESS
RANGE
ROBUSTNESS
REPORTS
REPRESENTATION
READINESS
RANGE
ROBUSTNESS
REPORTS
REPRESENTATION
READINESS
RANGE
ROBUSTNESS
ENABLERS
INCENTIVES
INFRASTRUCTURE
INITIATIVE
INSTITUTIONS
INSTRUCTION
INCENTIVES
INFRASTRUCTURE
INITIATIVE
INSTITUTIONS
INSTRUCTION
INCENTIVES
INFRASTRUCTURE
INITIATIVE
INSTITUTIONS
INSTRUCTION
On the horizontal axis, we list the three main value adding domains…..
DRIVERS X
DEVELOPMENT
PRODUCTION
MARKETING

15. M5 analysis The MRI scan starts with the . . . Analysis of the ACTORS
We assess ACTOR’s peformance in the
M5 analysis

16. R5 analysis Analysis of the ENABLERS
We assess the performance of ENABLERS in the
R5 analysis

17. I5 analysis Analysis of the DRIVERS
We assess the performance of DRIVERS in the
I5 analysis

18. MRI SCAN

19. C= x y z 3 2 The scoring process consists of
Individual scores from 10 (best) to 1 (worst)
Averige scores for each criterion
Consolidated competitiveness score, calculated through the formula :
C= x y z
3 2
where C = competitiveness of the sector
x = average score of ACTORS
y = average score of ENABLERS
z = average score of DRIVERS

20. C= x y z =
3 2

21. 4. Process of the MRI scan

22. Execution of the MRI scan . .
Invite representatives
from companies THE ACTORS
. . . from BSO’s THE ENABLERS
. . . and government THE DRIVERS
for a self assessment . . .

23. All participants fill in the MRI – scorecard . . .
INDIVIDUALLY

24. NO REPETITIVE SCORES IN COLUMNS
In each column, scores from 10 (best) to 1 (worst) are filled in.
NO REPETITIVE SCORES IN COLUMNS

25. Scores are then processed into one consolidated sheet . . .
. . . discussed and agreed upon

26. The competitiveness score of the sector is calculated through the following formula
C= x y z
3 2
in which C = competitiveness
x = average score of ACTORS
y = average score of ENABLERS
z = average score of DRIVERS

27. But more important than the total score
But more important than the total score are the scores on each of the elements
. . . since they precisely indicate what the value proposition of the sector is (the high scores)
. . . and reveal the biggest challenges of the sector (the low scores)

29. 5. Construct of FSI matrix

30. FEASIBILITY SPEED IMPACT The FSI matrix is a practical tool,
required at this stage to ensure that efforts are not
wasted "trying to do everything”. The low scores of the MRI
scan are used to construct the solution design for the
constraints, prioritized by three criteria:
FEASIBILITY
What are the chances that we can successfully do this
SPEED
How quick can we do this ?
IMPACT
What is the impact on the export figures for the sector ?
FOR EACH CRITERION, SCORES FROM 10 TO 1 ARE GIVEN
SCORES ARE ADDED UP AND ACTIONS ARE SORTED

31. Example of an FSI matrix for the tourism sector in Rwanda

32. What are the advantages of this methodology versus the traditional value chain analysis ?
Consensus amongst all stakeholders
Clear value proposition/branding
“First things first” implementation
Practical/action driven sector strategy
Action holders : who does what ?