Q&A: Microsoft Sets Out Vision for Unlimited Potential in Central and Eastern Europe
Today, Microsoft marks the expansion of its Unlimited Potential programme in Central and Eastern Europe. Vahé Torossian, regional vice president for Central and Eastern Europe and vice president of Microsoft International, shares his perspective on how technology can help address some of the new social and economic trends and priorities that the region faces today.
BUDAPEST, Hungary — 18 Oct 2007 — In April this year, Microsoft announced a significant expansion of its Unlimited Potential programme, renewing its commitment to leverage information technology for social and economic development around the world.
When Unlimited Potential was created in 2003, it focused on delivering practical computing training to underserved groups — such as ethnic minorities, people with disabilities and elderly people — in partnership with community-based organisations and nongovernmental organisations (NGOs). The new Unlimited Potential has a much larger scope, and brings together many Microsoft initiatives that make full use of information technology to transform education, foster local innovation, and enable jobs and opportunities for people around the world.
The underlying principal of Unlimited Potential is that people are the region’s most important economic resource. Better access to technology is the foundation for a true knowledge economy and greater economic competitiveness, and it equips people to share in the region’s opportunity and success.
Today, Microsoft is marking the expansion of Unlimited Potential in Central and Eastern Europe (CEE), bringing together government officials, partner organisations and Microsoft programme managers to acknowledge the achievements of the past several years and to set a new vision for Unlimited Potential in the region. The EMEA Press Centre spoke with Vahé Torossian, Microsoft vice president for Central and Eastern Europe, to find out more.
EMEA Press Centre: What is Microsoft’s expanded vision for Unlimited Potential, and what kinds of activities and investments does the programme comprise?
Vahé Torossian: Ever since opening the first Microsoft offices in this region in 1992, we have been keenly aware of our responsibility to engage responsibly at the local level — in every country where we operate. This includes helping to create and grow a local software industry that can help drive competitiveness, create jobs and train workers. We also have a commitment to contribute to other areas of society, to help establish a community in which technology can support and contribute to our everyday lives.
Importantly, for all of the remarkable changes that information technology has brought about, only people at the top of the economic pyramid have experienced the benefits of computing. For example, in CEE, we’re seeing a stark divide between the urban hubs where technology access is nearly ubiquitous and the outlying areas.
Unlimited Potential is a combination of Microsoft business models and solutions and the company’s corporate social responsibility programs. Every programme is based on a practical partnership with the public sector, companies, and local and global NGOs, and is articulated around three fundamental drivers of economic opportunity: partnerships to transform education, investments to foster local innovation by supporting the growth of our partner ecosystem, and infrastructure-building that stimulates jobs and business opportunities, to counter the brain drain experienced in our area.
EPC: How do the ideals of Unlimited Potential relate, in a practical way, to social and economic development in Central and Eastern Europe?
Torossian: CEE is a region undergoing rapid economic growth and development, and the quality of education is quite strong. At the same time, there is high unemployment, which is related to globalisation and the shifting global industrial landscape. There are also social issues such as ethnic disenfranchisement, gender inequality and a rapidly ageing population, which could have serious consequences if the region continues to lose skilled workers to the West.
So there are many hurdles that need to be overcome before the regional economy is fully activated, but there is massive potential for growth, which explains the surge of foreign direct investment in recent years.
Ultimately, the future prosperity of the region depends on people. People are the most important economic resource. Technology has an important role to play in improving people’s ability to do more skilled work — and reap the rewards through greater earning power.
By working with IT industry leaders, such as Microsoft, governments in CEE can enhance education, provide frameworks for adult learning, and develop a local software and business community that generates employment. In so doing, they can meet their objectives of growing their economies and safeguarding local industry against global competition.
EPC: Is information technology really the right answer for these issues in CEE? Wouldn’t the region’s underserved benefit more from having their fundamental needs met — like vocational skills training or basic education?
Torossian: I would argue that in today’s society, computing knowledge is a basic need. The prosperous economies of tomorrow will have populations that are fully empowered by technology. And that applies even to the more traditional, industrial workforce — blue-collar industries such as mining, agriculture, oil and gas, and manufacturing.
EPC: What is Microsoft’s motivation for Unlimited Potential?
Torossian: I would describe Unlimited Potential as set of initiatives that comprise both a business strategy and a moral strategy in pursuit of social benefits. Certainly, Unlimited Potential is deeply rooted in our commitment to the communities and countries where we operate, and our desire to be a responsible corporate citizen. That said, Microsoft is equally motivated to help speed developing regions’ progress towards a true knowledge economy. By supporting local innovation and training the future workforce, Microsoft can only benefit in the long run. So it would be disingenuous to describe Unlimited Potential as a solely philanthropic endeavour. We are also motivated to be a part of the region’s success in the years to come.
EPC: Companies notoriously get it wrong when they invest in socio-economic development, implementing programmes that don’t reflect local realities. How do you know that Unlimited Potential programmes are targeting the right things, in the right way?
Torossian: We know we are on the right path because the great majority of our Unlimited Potential initiatives are anchored in a strong partnership with government. A lot of these programmes start with a request from governments and NGOs working with governments.
We also know our approach works because we see the results first-hand — whether it’s preparing someone to land a good job, helping teachers inspire their students through technology, or offering software in a person’s native language. What we are doing now is expanding our work to make technology more relevant, accessible and affordable — those are, in fact, our guiding principles for Unlimited Potential.
In terms of relevance, we’re saying that the IT industry has an obligation to offer technologies and services that are appropriate for disadvantaged communities and the developing world. Accessibility refers to the idea that although access to information or markets is a strategic imperative for economic development, it’s not always feasible or appropriate for every individual to have an internet-enabled PC. The IT industry can adapt products and services so they are more readily shared. The third principle is affordability. And by that I mean industry needs to work harder to reduce the costs of technology and services by creating new business models to serve people who have little disposable income or access to credit.
A good example that encapsulates these principals is Microsoft’s development of language interface packs (LIPs) that convert the Windows and Office interface into many of the world’s languages. Since we began offering a LIP for Polish in November 2006, 500 people per month have downloaded the tool, to be able to operate their PC in their mother tongue. LIPs are available in Albanian, Bulgarian, Croatian — and the list goes on. That’s an example of innovation that opens up technology to people who wouldn’t otherwise have access.
EPC: Can you describe how Microsoft is implementing Unlimited Potential in the three core areas — education, innovation and skills and jobs?
Torossian: In terms of education, Microsoft works with partners, educators, governments and NGOs to increase access to the technology that can improve the quality of teaching — literally shaping the way education happens. Certainly education is an area where localisation and relevance is so important for immediate impact and long-term sustainability.
Just last week, Microsoft committed to equipping 1 million computers for Russian schoolchildren with the Microsoft Student Innovation Suite, a collection of Microsoft’s best education software. One million children who would not otherwise have had the opportunity will now have access to computing and computer-based learning early in life.
A similar venture is underway in Romania, with families in mind. Microsoft is partnering with an original equipment manufacturer, independent software vendors and retail partners to deliver a low-cost computer for families, loaded with localised content. The programme is called the Family PC Initiative, and it is designed for regions where the cost of a typical PC and software is beyond the reach of most families. The goal is to improve education at all levels, supporting the whole family, from a child’s education needs to helping parents to improve their computing ability.
In addition to supporting the use of IT for education, Microsoft is in a great position to foster innovation within the software industry and business at large. Microsoft Innovation Centers are such an example. These are places where students, professional developers, software architects, IT professionals and researchers can learn about the latest software solutions created by developers in the region. In the next six months, we will launch three additional Microsoft Innovation Centers — in Hungary, Romania and Ukraine — bringing the total to 200 centers worldwide by June 2008.
EPC: Are governments supportive of Microsoft’s Unlimited Potential activities?
Torossian: Absolutely. Governments recognise that public-private partnerships are essential for a wide range of initiatives. Microsoft has formal agreements with 21 CEE governments — a reflection of the importance of private-sector contributions in achieving policy goals.
I have Armenian roots, and when Microsoft opened its subsidiary office in Yerevan in May 2006, it was not only a big deal for me, but it was a great moment for Microsoft and the country. The prime minister and government officials joined us for the press conference, which was conducted in Armenian. And six months later at the Government Leaders Forum in Scotland, Bill Gates signed a Strategic Partnership Agreement with the government, giving the green light for Windows and Office to be developed in Armenian. This resonated deeply in Armenia and within the worldwide diaspora.
EPC: From what you have seen in your travels around the region, would you say that Unlimited Potential projects are focusing on the right things?
Torossian: Most CEE countries are enjoying great foreign investment right now, due to the low cost of labour, a well-educated workforce and proximity to the EU or membership. But this is not a long-term competitive advantage. Governments need to prepare for the next set of differentiators in order to keep foreign investors in the country. For example, Slovakia has been very effective in attracting car manufacturers to establish manufacturing plants in the country. Today, Slovakian universities are developing specific educational tracks to increase the number of local technicians and engineers with skills related to embedded automotive software, to be able to meet future car manufacturers’ needs.
Stories like these reinforce my belief that Unlimited Potential is homing in on the right things, supporting programmes that invest in people, and that promote innovation, job creation and education and skills. Only by investing in these kinds of initiatives can government, NGOs and the private sector avoid being pushed aside by the march of the global economy.
