STATE OF JALISCO IT SECTOR ROADMAP - ABSTRACT - ProMexico
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STATE OF JALISCO IT SECTOR ROADMAP ABSTRACT
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.
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.
PROMÉXICO
Paulo Carreño King
CEO
Marco Erick Espinosa Vincens
Chief Intelligence Officer
Claudia Esteves Cano
Executive Director of
Strategy
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
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
13STATE 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.
15STATE 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.
.
16INTRODUCCIÓN
17STATE OF JALISCO IT SECTOR ROADMAP 18
INFORMATION
TECHNOLOGY
ECONOMY
19STATE 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.
21STATE 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
22INFORMATION 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.
23STATE 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.
24INFORMATION 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.
25STATE 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
26INFORMATION 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.
27STATE 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.
28INFORMATION 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
29STATE 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
30INFORMATION 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
31STATE 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.
32INFORMATION 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
33STATE 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.
3435
STATE OF JALISCO IT SECTOR ROADMAP 36
STRENGTHS,
WEAKNESSES,
OPPORTUNITIES,
AND THREATS
ANALYSIS
3738
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.
39STATE 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.
40STRENGTHS, 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.
41STATE 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.
43STATE 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.
4445
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.
47STATE 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.
4849
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.
51STATE 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.
5253
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
54STRENGTHS, 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
55STATE 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
56STRENGTHS, 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
57STATE OF JALISCO IT SECTOR ROADMAP 58
TREND
ANALYSIS
59STATE OF JALISCO IT SECTOR ROADMAP 60
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.
61STATE 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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