At the other end of the continuum, having an appropriate setup for trade information facilities is usually a priority for any Trade Support Institution (TSI), whether private or public. Trade Information (TI) is perceived as being so fundamental, that it is often the most closely scrutinized, the most dynamic, the most challenging trade support function.

In their pursuit of offering a comprehensive portfolio of TI services, TSIs can sometimes lose sight of the underlying impetus. Essentially, firms require information that can help them increase sales, revenue and profits. Although this may sound elementary, firms really have no other motivation for using trade information. Determining which information is needed, however, is no mean feat. Delivering the right information at the right place and at the right time remains an exigent task for trade information managers who are typically charged with the responsibility of selecting the kinds and sources of trade information, and of identifying effective dissemination channels. Often they have to do this with significant resource constraints, both financial and human.

Simultaneously, the environment surrounding TI has never been so exciting. The rapid progress in technological innovation, and the convergence of technologies, is continually providing TSIs with new opportunities for identifying, manipulating and delivering information resources. What is Information Technology (IT) if not technology for information? Many TSIs have undergone, or are going through, transformations to establish strong synergies between the information and the technology domains. The rationale is simple; they aim to take full advantage of the new electronic facilities available to improve the quantity and quality of trade information support to industry. Underlying all this is the Internet and its technologies. It has made possible a whole new set of economic and ergonomic models for organizations of all kinds and sizes. Many of these models are based on the concept of networking whereby organizations and individuals are connected together in new ways to share information, to collaborate on activities that were previously fragmented or separated by time and geography.

In the race against time to join the digital economy, TSIs can underestimate the substance of maintaining institutional networks. It is unlikely that any singular TSI can generate all the trade and business information that it needs to service the diverse requests of its local and foreign clients. The TSI therefore depends on a number of other organizations, public and private, local and foreign, in order to collect, manipulate and repackage trade information materials for consumption. Such networks can extend desirable outcomes and create economic advantages for the nation.

The aim of this brief paper is to address specific networking issues relevant to the provision of trade information to the business community. In doing so, some references are made to the experiences of the Malta External Trade Corporation Ltd (METCO – http://www.metco.net), Malta’s national Trade Promotion Organization (TPO).

In the framework of worldwide deregulation and liberalization, where barriers to trade are continually falling, and where new methods of doing business are emerging, reliable trade information is becoming increasingly important for managers and decision-makers alike.

The main challenges characterized by this scenario include:

• the capability of identifying new opportunities in the context of the globalization of trade:

as barriers to trade fall, lowering of informational barriers (especially on markets in transition) becomes important. This can enable enterprises to operate more effectively and competitively internationally and to benefit from opportunities at an early stage.

• coping with the uneven development of trade information sources:

whereas information on developed markets is usually abundant and systematic (although often complex and expensive), market information on developing countries is often scarce and dispersed.

• dealing with information overflow:

the Internet is greatly facilitating access to market information and specialized online databases. At the same time the multitude of potential sources available can easily overwhelm businesses in trying to locate the specific information that they need.

• absorbing rapid technological changes:

the fast-evolving global trading environment requires adoption of new technological tools for timely information processing and distribution.

• developing active information networks at national, regional and international levels:

These are considerations that the TSI, and the national export strategy maker need to deal with. To do so requires a structured approach and a number of fundamental steps need to be taken. These include:

• assessing information needs;
• identifying sources of information;
• developing a portfolio of TI services;
• determining reach and depth of the services portfolio;
• building the trade information network;
• identifying effective dissemination channels.

At the very elemental stage, the TSI needs to understand who its target audience is. Only in this way can it determine what kind of information is necessary, and what sources to exploit. The TSI knows that incomplete information can create difficulties in matching producers with potential buyers and vice-versa.

TSIs usually provide information services that are aimed at two distinct groups:

• local firms, mostly export-oriented manufacturers and services firms wishing to do business overseas;
• foreign firms seeking to do business with local firms.

To better understand the TI needs of its clients, in 2000 METCO commissioned a survey amongst Maltese firms. The results show that the following types of information were consistently rated as the most important, regardless of the size of the firm:

1. arket information; includes general country information, political and economic environments, trade policy, trade agreements and their implications.
2. market access information; includes import regulations, preferential schemes, non-tariff barriers, technical standards, safety and sanitary regulations, packaging and labelling requirements, and environmental and consumer regulations.
3. market intelligence; includes information on market size and demand, competitor information, market trends and prices.

Of METCO’s existing services, the following rated highest, in order of importance:

• Web-site references;
• sector-specific market reports;
• business opportunities/trade leads;
• selective dissemination of information (personalized information service);
• enquiry-reply service.

Another important factor to consider is how to get such information. It is interesting to find out what firms do to get the information that they need. In view of this, Maltese firms were asked to identify which sources, both local and overseas, they turned to.

In terms of local sources of information, the Internet is by far the most popular source. In fact, no less than 45 per cent of respondents indicated that they often use the Internet for information. METCO followed as the next most important source, claiming 31 per cent of the market share. The other ten sources listed fared significantly less impressively. In terms of overseas sources of information, the Internet again came on top with nearly 44 per cent of interviewees quoting it as the primary source. This was followed by overseas press (newspapers and journals) at nearly 15 per cent.

What is most significant, however, is that an overwhelming 65 per cent said that they never used overseas trade support institutions for information. Less than 4 per cent said that they often turn to foreign TSIs. Likewise, 70 per cent said they never use foreign trade/industry associations.

A concern for the TI Manager is the means of disseminating the information – the medium to use when providing a specific service. Is this accessible enough? Is it convenient enough so as to encourage usage? How do firms want to receive details of businesses opportunities, or information on international tradeshows?

According to Maltese firms, who typically turn to the Internet first for finding information, the Web is the least preferred medium for all TI services listed. E-mail was indicated as the most preferred medium in the majority of cases, whereas traditional postal mail was selected as the most preferred medium for services such as market reports and the monthly newsletter.

This indicates that although firms are finding the Internet a ready source of information, it is one which demands time and knowledge to exploit effectively. Where they can help it, firms prefer media that follows them, and waits for them on the desk (thereby the preference for e-mail and postal mail) as opposed to actively seeking for information, even if it is from the convenience of that same desk.

In planning its TI services and consequent network, the TSI faces a challenge. Should it go through the pains of developing a comprehensive portfolio of services? Or should it simply focus on identifying and disseminating information on business opportunities that firms can follow up and bid for?

There is little doubt that for firms, the latter is more appealing and easier since ready-packaged leads require relatively less effort and can lead to relatively quicker results. The bottom line is that firms want to increase sales, revenue and profits. Given equivalent prices, most buyers and sellers of a specific product are indifferent as to whom they trade with.

For TSIs, focusing on business opportunities is certainly easier and less expensive, but the standpoint is different, especially in the case of national TPOs. The goal is to create sustainable advantages for the nation, thereby enhancing the prospects of success in pursuing business opportunities. To achieve this, firms need to be able to make informed business decisions to create new business opportunities. TSIs therefore typically develop trade information programmes that can help firms:

• select a target market,
• penetrate the target market, and
• operate in the target market.

Information can help a firm select a target market, but it needs to know its strengths and weaknesses and identify what its opportunities and threats are. Seen from a different angle, adequate information allows firms to exclude markets before attempting to make a match, i.e. sufficient TI can help firms determine that certain markets are not worth pursuing. This is equally, if not more significant. Certainly, the right information can save a firm substantial time and finance that it would otherwise need in attempting to break into a new market. Knowing where it cannot compete, however, gives a firm additional insights, and the reasons could be more than a matter of pricing. There may, for instance, be issues of quality, styling, packaging, of infringement on technical standards or safety regulations etc. These are matters over which the potential exporter has control, and can thus take appropriate measures to become competitive in markets that could otherwise have remained excluded. This is how firms create business opportunities for themselves.

Firms often complain that TSIs do not have the necessary expertise and that the information provided is usually not specific to their needs, but information that can be easily obtained from other sources. The Internet, for instance, has simplified access to trade information; but it has done so both for TSIs as well as for TSIs’ clients. Much information is readily and freely available, although admittedly this is usually of a general nature. The net result, however, is that firms now turn to TSIs for more specialised, more personalised and more focused information. This phenomenon has been particularly visible in recent years – not only in industrialised countries, but also in developing and transition economies.

Another expressed observation on TSIs is that these usually tend to give attention to broad, macro models (e.g. export marketing strategies for entire industry sectors) rather than focusing on micro matters (e.g. export marketing plan for a specific firm). Some have suggested that TSIs need to offer support services that help firms improve internal functions such as operations and administration, and indeed, many businesses would benefit should such assistance be forthcoming.

It is clear then that demand tends to lean toward customisation. What about the supply side? TSIs, especially national TPOs, usually offer relatively broad information services that are broadly adaptable to the needs of individual firms. It is then up to the firm to interpret that information according to the internal and external forces that impact it. What is the role of the TSI in this information age? How can TSIs add value? Can a TSI be expected to act as the market research and marketing department of its clients? What options does a TSI have?

The Institute for the Promotion of Small Enterprises Ltd (IPSE – http://www.ipse.org.mt) was set up with the objective of helping firms, especially those in manufacturing, to restructure in the face of liberalization, the removal of protective duties, and the country’s aspirations to become a member of the EU. It is entrusted with the delivery of technical and financial assistance to manufacturing enterprises, and to focus on the specific needs of individual firms, while giving due attention to sector-oriented activities.

In developing its operational framework, IPSE has sought to establish relationships with Service Partners across a whole spectrum of expertise.  IPSE therefore works with a broad range of specialist entities whether they are large or small operators, private or public.  Typically, the approved Service Partners carry out consulting services in any of the following areas:

• business planning;
• quality management;
• product/service development,
• information and communication technologies;
• environment, health and safety;
• manufacturing technologies;
• management and human resources development.

Through its network of approved Service Partners, IPSE therefore operates various technical and financial assistance schemes. The amount of assistance given to each enterprise depends on a number of factors, such as the number of employees, the correlation of projects to industrial policy, the scope of identified critical measures etc. IPSE’s contribution does not exceed 50% of the cost involved in implementing approved activities, and is effected via rebates to qualifying enterprises. The money for these financial assistance schemes originally came from a fund established by Government from its privatization initiatives.

One of the ways in which METCO contributes is by providing trade information services and/or access to its facilities – directly to IPSE clients and IPSE Service Partners.

It is unlikely that any single TSI can generate all the trade and business information that it needs to service the diverse requests of its local and foreign clients. Nor is this necessary. What is crucial is that the TSI knows where it can get the information from. This is the motive that drives TSIs to build information networks, formal and informal, by means of which access to information by industry is enhanced. Thus, the TSI does not necessarily have to have direct ownership of the information, but at the same time it can act as the nucleus, the focal point for trade-related information.

In this context, the challenges for the TSI are:

• to know whether the information exists;
• to know where the information is;
• to know how to get it;
• to know how to exploit it.

METCO is always keen to join new networks, such as the Trade Point Programme, the Euro Information Centres network, and more recently the World Trade Centers Association (WTCA). The WTCA, for instance, is an organization whose "purpose… is to have information available to businesses in a timely and coordinated manner," now links all of its more than 300 centers located in over 100 countries through WTCA Online. This is not the model of the WTCA only. UNCTAD’s Trade Point Programme, now under the management of the World Trade Point Federation (WTPF), is likewise active in networking. In fact, the WTPF is currently in the process of developing a new online presence to facilitate exchange of information and synergies between Trade Points.

The ITC has long recognized the importance of institutional networking and has, for several years, provided a directory of TSIs, both online and offline. This Executive Forum is indeed another excellent example of the ITC’s efforts to bring TSIs closer together, to discuss issues, to evolve best practices, to share knowledge and to foster collaboration.

Being a small organization in a small country, METCO does not have the luxury of turning to foreign representatives for trade-related information. The reason is simple – very few Maltese embassies have commercial representatives. Although some embassies do occasionally forward information, this is too little and too dispersed to be significant. (Note: This may change, since earlier this month, METCO launched a joint initiative with the Malta Ministry for Foreign Affairs on a pilot project whereby the terms of reference of three selected embassies now include trade. If this pilot project works, then the cooperation agreement can be extended to other embassies. To prepare the new appointees, METCO has conducted a three-week training course in the various aspects of international trade, including trade information.)

Neither does METCO have the capacity to generate any primary information. Again, resource constraints, both human and financial, render field research inaccessible. METCO therefore depends on several networks that it has established over the years to improve access to information. These include:

• other local bodies involved in the trade cycle (e.g. Ministries, Customs, IPSE etc.);
• foreign TSIs (TPOs, Trade Points, World Trade Centers, etc.);
• regional organizations (e.g. European Trade Promotion Organization – Working Group on Information Processing (ETPO-WGIP);
• commercial information providers (e.g. EIU, Euromonitor, Kompass etc.);
• international organizations (e.g. ITC, UNCTAD, Commonwealth Business Council).

Not all these networks work equally well. Nevertheless, given its size, METCO delivers an impressive portfolio of information services and facilities.

Finding one’s way through the Internet is not an easy task. Thousands of Web sites contain potentially useful business information, but they are dispersed and difficult to identify. Since the Internet is not centralised, finding relevant sources is a challenge for non-experienced users. To overcome this, METCO started compiling a database of Web sites for Exporters. For the past two years, METCO has published a Directory of Web Sites for Exporters, each edition containing several hundred sites. Never has a publication been so welcome. Of all the information services and facilities, this directory was voted as the most useful information resource during last year’s survey.

In compiling this Directory, METCO has benefited from a regional network organisation – ETPO, or the European Trade Promotion Organisation, of which METCO’s Business Information & Technology Division is an active member. Every six months, ETPO members collaborate on an effort to collect trade-related Web sites on two or three countries. The results are then shared among members, and onwards to their clients.

In considering the deployment of its information services, the TSI needs to give attention to the following:

• the medium should be highly in use to reach the maximum diffusion to the maximum number of clients possible;
• clients should be able to access information when they need it, regardless of time and location, and they should be able to get in on their own without any help;
• information should be presented in a form that communicates richly within responsiveness objectives, through an interface that guides Users through processes and that draws attention to other available information resources.

The Internet is a revolutionary departure from traditional business methods. In this new era, distance shrinks to zero, users have open access to information, and technology plays a critical role.

Many TSIs are dismantling their traditional business information services and facilities in favour of technology-driven ones. TSIs need to understand what it takes to be connected – the impact on personnel, on firms, on business partners. To operate successfully, significant efforts are necessary – to break down traditional organizational and process boundaries, to establish new competencies and to induce new behaviour in staff and within the business community. New infrastructure, new business processes and new enabling technologies are required.

TSIs can therefore benefit from opportunities if trade information capabilities are soundly linked with the opportunities offered by advances in information technology. The need is being felt to exploit information resources by simultaneously understanding the potential and limitations of information technology, business processes and the needs of firms. This not only requires traditional skills of organizing, thinking, writing etc., but knowing how best to use the power of IT for researching sources, accessing information, connecting to external entities, connecting to clients, communicating ideas and results, exchanging information and packaging knowledge for reuse.

With proper use of Internet technologies TSIs can develop the ability to provide up-to-date information quickly and cost-effectively to their entire user base. By putting vital business information at the fingertips of firms regardless of their location (or the location of the information) TSIs can help improve the decision-making processes of companies to make faster and better informed business decisions.

The benefits for companies are simplicity and the speed of information access. For example, the interactive nature of the Internet, enabled by hypertext links makes it easy for firms to gather all the information they need just by clicking on the information they want to view, and they can do this from the convenience of their office. They don’t have to spend long hours searching through voluminous texts.

METCO’s Made In Malta Directory, for instance, has been available on METCO Online since 1995, and is the most accessed resource available on the site. It lists over 850 manufacturers and exporters operating in 25 industry sectors. The total number of entries in the directory is in excess of 1,400 since some companies operate in more than one sector. It is estimated that the Made In Malta represents about 95% of Maltese manufacturing and exporting firms. The database is also accessible from UNCTAD’s Global Trade Point Network. The network gives additional exposure to Maltese firms, especially amongst Trade Point Programme member organizations.

To encourage firms provide additional information to potential foreign buyers, METCO operates a Web-design and hosting service. METCO Registered Users can have their own tailor-designed Web site including a company profile, product catalogue and electronic forms to receive enquiries from potential overseas business partners. The service is provided against a nominal annual subscription charge, and includes maintenance and updating, and in some cases, processing of enquiries received. METCO currently hosts about 45 such Web sites. During the past five years, about 120 firms have made use of this service. Many have moved on to commission more comprehensive sites from the private sector.

To encourage firms to turn to the Web for information from METCO, a site that is aimed entirely at Maltese enterprises was established nearly two years ago – METCO Information Services Online. It is a first attempt at providing access to a range of information and services designed to help firms improve business performance through availability of trade and business information resources.

The site contains materials such as business news items, business opportunities, online references for the HS System, contact lists, downloadable documents and publications. Through this Web site, users can also search the library database, and can therefore draw up a list of publications they wish to consult before visiting the Business Information Centre.

METCO wants to strengthen its links with the Maltese business community, and to facilitate access to trade information resources. Although METCO has been significantly active on the Internet, both for foreign and local firms, this is not deemed to be enough. In view of this, METCO proposes to establish the Malta Business Network by the end of 2002. This can be described as an online repository of trade, business and market information, tailored to needs of specific firms, and is expected to become METCO’s principal means of providing business information.

The Malta Business Network is thus intended to help make useful business information more accessible and transform it into a more visible product. This will require the conversion of many information resources, which are presently based on ‘hard copy’ (i.e. paper reports, newsletters) into electronic equivalents that can be disseminated directly to Maltese firms. The Malta Business Network is a two-way system that enables companies to communicate their business information needs in order to expand their markets. This proposal aims to establish an extranet system by the end of 2002 to connect METCO Users to METCO.

At present, availability of resources is the biggest constraint – including financial, human and information. To overcome this, METCO is currently undergoing negotiations with the e-Malta Commission to jointly launch this project, and with selected commercial information providers to ensure that an adequate stream of business and trade information is available.

Assessing the information needs of companies is a complex task. Each individual enterprise has its own particular needs and these too can change from day to day as new opportunities arise or as markets are lost, as the company changes its strategic direction and its priorities. Trade information professionals are therefore permanently preoccupied about the relevance and efficiency of the various information services and resources at the disposal of enterprises.

The relevance of networks, both technological and institutional is therefore significant. Networks are useful because they avoid duplicated, localized or underutilized resources and competencies whilst achieving more integrated and more effectively deployed resources and know-how. Joint efforts can enable the organizations involved to cope with increasingly complex environments whilst allowing them access to the resources and competencies that they need to succeed.

Most certainly, this includes access to business and trade information.