ICT-4-BUS aims to improve the competitiveness, productivity, and efficiency of the Small and Medium Size Enterprises (SME) in Latin America and the Caribbean by promoting the implementation of innovative ICT and E-Business solutions. It will make available ICT solutions that were once limited to larger companies and international corporations to SME that strive for market penetration and business efficiency. In so doing, this initiative will offer a truly global dimension to the multitude of efforts to bridge the global digital divide, foster digital opportunity and firmly put ICT at the service of development for all.

ICT-4-BUS provides US$ 5M in grants for the development and implementation of pilot projects that will test innovative ICT solutions and services for SME primarily in the areas of value chain integration, workplace productivity and efficiency, and market penetration. With this, the Program will demonstrate the technical feasibility and commercial viability of ICT solutions and services for the benefit of SME in the Region. Additionally, the best practices and lessons learned from the implementation of these pilot projects will be carefully analyzed and widely disseminated for possible replication elsewhere in the Region.

The pilot projects are selected through open competitions where eligible non-profits organizations from the Region present project proposals highlighting their projects ICT innovation, the benefits to the SME community, and the business plans to ensure the sustainability of the developed solution/services. Each pilot project is awarded with up to 60% of the total cost of the project, with a maximum of US$ 500,000, on a non-reimbursable basis.

Thirteen projects were selected as a result of the two Calls for Proposals of the ICT4BUS Program. Following are the details of the awarded projects.

QUALITY MANAGEMENT AND E-COMMERCE INTEGRATED SYSTEM FOR VERACRUZ COFFEE, submitted by Laboratorio Nacional de Informática Avanzada (LANIA), Mexico

This project aims to mitigate the effect caused in the coffee producers of the Veracruz region by the drastic reduction in the international coffee prices (from $130/quintal in 1996 to $45/quintal in 2002). With this initiative, coffee producers of the region will be enabled to participate in higher margin gourmet markets. The electronic platform to be developed will enhance the product quality verification and certification process, allow commercializing the coffee and its derivatives in local and global markets, and will support business cooperation in the value chain. Approximately 70 producers will participate in the pilot stage and it is expected that over 5,000 will be using the services by 2006.

NEW TECHNOLOGIES FOR DEVELOPMENT OF SMES IN EXPORT OF QUALITY MEATS, submitted by Asociación Cultural para el Desarrollo Integral (ACDI), Argentina

This project will help local producers to comply with export markets requirements for certified information on the origin and the quality of the exported meat. Within the context of an effort to improve overall quality, the project will develop a traceability system for beef based on radio frequency identification (RFID) technology. About 50 producers, with a total of 60,000 livestock, will participate to the pilot stage. Within 3 years the numbers should grow to over 150 and 180,000 respectively. Depending on the results of the pilot project the system might be extended also to other regions in Argentina, Uruguay and Brazil.

WEB SERVICES, TECHNOLOGICAL INNOVATION FOR BETTER MANAGEMENT, submitted by Cámara de Comercio de Santiago (CCS), Chile)

The project aims at increasing business efficiency among SMEs especially in the area of commercial transactions and marketing. This should result in a stronger competitiveness of these businesses within the value chain. The pilot will involve 120 SMEs and it is expected that approximately 260 will benefit within five years. The project will develop ICT tools based on Web Services ? an XML-based programming language used to retrieve, combine and interact business related information across a variety of electronic platforms ? to allow interoperability of information systems in areas such as commercial transactions, payments and marketing. ICT SOLUTIONS FOR STRENGTHENING THE BUSINESS MODEL OF SME IN THE PHARMACY SECTOR, submitted by FUNDES - Venezuela This project will strengthen the competitive position of independent small pharmacies with the implementation of a web-based platform to improve their business model and competitiveness. This platform will provide substantial improvement in their productivity and efficiency levels through functionalities that will support vertical and horizontal integration while innovating their business practices. Thus, small pharmacies in rural and marginalized areas will be able to compete in a business environment characterized by the increasing consolidation of the pharmacy retail sector and the emergence of large franchising networks. The pilot will involve 50 pharmacies and could grow to over 200 within three years.

ELECTRONIC COMMERCE FOR SME CLUSTERS, submitted by Fundación Andrés Tosello (FAT), Brazil

This project addresses the need for better cooperation tools within industry clusters in which SME are the dominant players. The project will develop and test an e-commerce platform fully developed with Open Source programming languages aimed at SME operating in two clusters, clothing and tourism. The platform will be implemented within special business telecenters currently being set-up for Brazilian industrial clusters. The platform will support business interchange by participants in the two clusters and expand market penetration of local SME at national and international level. Approximately 60 SME will participate in the demonstration stage and 7,000 should join the service by 2007.

DEVELOPMENT AND IMPLEMENTATION OF A VIRTUAL SUPPLY AND LOGISTICS SYSTEM, submitted by FUNDECOMERCIO, Colombia

The project will strengthen the competitive position of small convenience stores (superetes) in local communities through the development and implementation of a logistics model that will integrate suppliers, convenience stores, operators, and end-consumers so that this distribution channel can efficiently compete against larger stores and supermarkets. Thus, this project intends to mitigate the continuous loss of market share of the Colombian small convenience stores to the larger stores and supermarkets. The pilot will involve about 600 retailers and if proven successful, the number of participants is expected to grow to 1,900 within three years.

PYME CREATIVA (CREAción de Tecnologías de Información para redes de industriales de Valor Agregado), submitted by the Instituto Tecnológico y de Estudios Superiores de Monterrey (ÍTEMS), Mexico

The project proposes the development of e-services along the model of an e-Hub that will enhance SME position in the value chain. Services will support contract negotiation, engineering, marketing, production facility and process diagnostics and procurement. The main benefit from the implementation of the ICT service will be to enhance enterprise cooperation within specific industrial clusters, namely mechanics and plastic, in order to gain access to international market opportunities. About 250 enterprises, 200 in Mexico and 50 in El Salvador, will participate in the pilot stage. The results of the pilot project will be presented in other countries that might be interested in implementing similar systems, including Argentina, Costa Rica, and Colombia.

FACILITACIÓN Y DESARROLLO DEL COMERCIO EXTERIOR EN GUATEMALA, submitted by Asociación Gremial de Exportadores de Productos No Tradicionales (AGEXPRONT), Guatemala

This project will develop a centralized system accessible through the Internet (?Ventanilla Unica para las Exportaciones? or VUPE) that will issue certificates of origin and other documents for exporters of non-traditional goods, allow online transactions, and collect and distribute relevant trade statistics. Furthermore, the platform will be integrated with official electronic customs platforms in the United States and Central American countries and enable exporters to expedite customs formalities through the VUPE. The ?Ventanilla Unica? will serve a large community of SME that are involved in international trade and will complement other regional initiatives within the CAFTA trade agreement. Thus, the SME will see a considerable reduction in the administrative burden of exporting and have access to information on export markets that will be useful for their production planning. Approximately 1,200 companies will benefit from the system during the demonstration phase.

E-CADENA PRODUCTIVA, submitted by Universidad de Guadalajara (UDEG), Mexico

An e-business and e-manufacturing portal will host specific applications, including software for Customer Relationship Management (CRM), Supply Chain Management (SCM) and Computer Aided Design (CAD), either to be acquired or developed by the project. SME will access these services via the ASP (Application Service Provider) model. Technology transfer and technical assistance will be offered via a physical and virtual center. The applications to be developed and offered via ASP and Internet will help SME improve their products, marketing and management processes. These applications/services will be offered at a much lower cost than other ICT software applications currently available on the market. Strong emphasis on training and shared IT services should ensure a smoother adoption of these applications by SME. The pilot will involve 50 SME.

TERRA INKA: ACCESO AL MERCADO TURÍSTICO (TI-AMT), submitted by Asociación Civil Khipu, Peru

The project will implement a platform to promote and transact tourism offerings of medium and small sized operators. The system will be based on XML language, which ensures compatibility with international tourism sites, among them SABRE and Expedia. The project aims at promoting smaller tourism operators, who hardly ever appear in major travel sites. Creating a dedicated and high quality presence in the Internet coupled with strong marketing efforts and a fully transactional platform is a way to penetrate certain niche markets, like the adventure or cultural oriented travelers. The pilot will involve nearly 80 SME and it is expected that approximately 200 will benefit within three years and several hundreds more thereafter.

PLATAFORMA TIC DE APOYO A LA COMPETITIVIDAD DE LA PYME EN LA ECONOMÍA DIGITA, submitted by Centro de Productividad Integral (CEPR), Chile

This project will develop an ERP system with self-design features for small sized businesses that will (i) facilitate adoption of management systems by SME, and (ii) support change management in targeted businesses. The project will facilitate the access by SME of both, local and international markets, as well as their improved integration in the value chain. The ability to implement an ERP system, and the consulting services that are needed for this purpose, all at reasonable prices, would greatly increase SME efficiency and readiness for conducting business in extended or new markets. 150 SME will participate in the pilot stage and it is expected that over 1,000 will be using the services in the future.

GESTIÓN DE CONOCIMIENTO PARA RIESGOS EN PROYECTOS DE DESARROLLO DE SOFTWARE (KM-SWRISK), submitted by Universidad de Talca, Chile

The project aims at developing an Internet-based knowledge management system that will be help identify and manage risks in software development. One of the weaknesses of software developers, especially small and medium sized firms, lies in the ability to ensure quality and functionality of the applications and services by predicting customer-software interaction. But identifying critical passages in software development implies gathering knowledge that typically will require many years of work. The service that the project aims to develop will allow companies to shorten that period by accessing and sharing a knowledge platform to which all will contribute and at the same time benefit from. The pilot will involve about 40 software firms belonging to the GECHS Group, and if proven successful the number of users is expected to grow to 1,200 within three years.

SME METASYS,mitted by Fundação de Desenvolvimento da Pesquisa (FUNDEP), Brazil

The project will develop a computing infrastructure that uses PC or special end-user workstations and is geared toward SME. An operating system manager, Metasys, controls most aspects of the system behavior automatically thus eliminating the need for a local system administration. Two knowledge-management solutions will be offered: an ERP and a search engine. All software applications will be based on Open Source solutions. The project will develop an integrated ICT solution in a highly productive Linux-based configuration with a low TCO (Total Cost of Ownership). Approximately 90 SME will participate in the demonstration stage and over 2,500 should use the system by 2008.

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