Charlie Watt- Senior Director e-BusinessCharlie Watt- Senior Director e-BusinessScottish EnterpriseScottish Enterprise

World Bank – November 24th 2003

Scotland

Total Area 78,000 km²

Population 5.1 million

Glasgow 3,500 people per km²

Highlands 8 people per km²

Learning & SkillsLearning & Skills• Improve the operation of the labour

market• The best start for all young people• Narrow unemployment gap• Improve demand for high quality in-

work training

Strategic Context - Strategic Context - Smart, Successful ScotlandSmart, Successful Scotland

Global ConnectionsGlobal Connections• Greater digital connectivity• Increased global involvement • A globally attractive location• More people choosing to live and

work in Scotland

Growing BusinessGrowing Business• Greater entrepreneurial

dynamism and creativity• More e-business• Increased commercialisation of

research and innovation• Global success in key sectors

“help the people and businesses of Scotland succeed. In doing so, we aim to build a world class economy”

– new businesses

– existing businesses

– knowledge and skills

– global presence

circa £450m government funding per year

Over 90% of Businesses in Scotland

1,500 staff spread across Scotland

Scottish Enterprise

“If you don’t have competitive advantage – don’t compete” – Jack Walsh

Customer service Cost base Channels Market Knowledge Skills New markets

CRM E-procurement Web presence Search engines, CRM E-learning

Purpose- To accelerate the competitive capability of companies in

Scotland through the use of e-business applications

E-business = competitive advantage

Patterns of e-business adoption

Time

%

chan

ge

2003

Aware

Connect

Publish Interact

Transform

“ICT” p-business??

Time

Bus

ines

s be

nefit

2003

•Affordable apps•Bandwidth•SE Channels•SE ‘Products’

Basic applicationsE-mail

Web site

Advanced applicationsCRM

E-procurement

E-learning

Examples of companies

Classic ‘buyer advantage’?1513 Production of meat & poultry products

90

92

94

96

98

100

102

104

106

108

110

Date

Rel

ativ

e P

rice

e-sellers non e-sellers

International Benchmarking 2002 Scotland v. other nations

On average Scotland ranks first overall for businesses using e-business technologies - a dramatic improvement on 2001;

second in ownership of websites; third on the average value of online sales, and on

businesses ordering supplies online Scotland's ranking improved by an average rating of

1.6 v 2001 (only Japan improved more)

Average Ranking of Countries

8.6

8.3

7.6

6.0

5.6

5.2

5.1

4.8

4.5

4.0

3.9

Japan

France

Italy

ROI

UK

Australia

Canada

Sweden

Scotland

USA

Germany

What are organisations doing with e-business?

They are using the Internet to support key business practices…

Sample: 73% of organisations asked in 2003

Turnover from website (through sales, orders or business resulting from the website) by businesses that have/use a website (44%)

Sample: 44% of organisations responded in 2003

2003 / 04 - Improve the competitive capability of companies by accelerating their adoption of e-business from publish to interact and interact to transform

•Software & E-business Supply•Financial Services•High Tech•Creative Industries•Real Estate, Renting & Business Activities

11%

FASTADOPTERS

TextilesCreative IndustriesFisheries•Real Estate, Renting & Business Activities•Forestry

52%

NORMALADOPTERS

•Construction•Fisheries•Wholesale•High Tech•Transport, Post & Telecommunications

17%

SECONDMOVERS

•Real Estate, Renting & Business Activities•Agriculture•Food & Drink•Tourism (excl. retail)•Transport, Post & Telecommunications

20%

NOTCONVINCED

Adoption Group Analysis

Source: Scottish e-Business Survey 2002

DemandSupply

Environment

Market Research

eBusiness Strategy

To accelerate the competitive capability of companies in Scotland through the use of e-Business Applications.

Progress to date

(1) Partly or fully Established

Demand Side

Supply Side

Marconi Demand Indication

Marconi Demand Indication

BT ADSL ProvisionBT ADSL Provision

(1)

(1)

Population Coverage Estimation

Population Coverage Estimation

Business PresenceBusiness Presence

(2)

(2)(2) Under Development

Other ProvisionOther Provision

Future Land & Property Development

Future Land & Property Development

Back Haul OpportunitiesBack Haul Opportunities

(3)

(3)(3)

(3) Subject to investigation

Geographic Intelligence to support Broadband Market Intervention Initiatives

in Scotland

Geographic Intelligence to support Broadband Market Intervention Initiatives

in Scotland

K- mapScottish Enterprise KMap Broadband Application

Specific Broadband Development Areas

TTE

ATLAS -Bus Park Network

Scottish Borders Wireless Communities Powerline Trial

B’band Website Demonstration Centres Incentive Scheme

Broadband Programme

More effective wholesale market (IP Transit)

Access to “advanced broadband” in key locations

Innovative rural supply solutions

Awareness raising and demand stimulation

Research and development on new technologies

Increased coverage of mass market broadband

Wireless Excellence Network

Aggregation Schemes Demand Analysis Marketing

SUPPLY

DEMAND

Scottish Borders Rural Area Network (RAN)

The e-Business Workshops / business advisors

Workshop Series ‘Making the Connection’

‘Transforming your site’

‘Trading Electronically’

‘Transforming your business’

‘Broadband’

Levels of adoption

2 3 4 5

‘Connect’ ‘Publish’ ‘Interact’ ‘Transform’

1

Aware

• 5000 Delegates• High Level of customer satisfaction 3.6 v 4.0• Target 1425 for higher levels of adoption – 2003/04• ESF funding secured for 2003 • Best practice example in:

‘Benchmarking National and Regional E Business Policies’DG Enterprise, February 2002

Electronic Payment Tool

• What are on-line payments

• Enter your business model

- System recommends optimum solution

-Names of providers-Costs

On-line Factsheets – specialist knowledge

• 38 Factsheets

• 12,000 downloads per month

• Easy to monitor

• Easy to track Return on Investment

• Reach broad business population

• Easy to keep current

Seminars and Workshops – Managed on-line

• Workshops• 5 Topics• Inspire companies• Decision makers

• Seminars• 20 Topics• Inform companies• Project managers

Case Studies

• Over 200 case studies

• Search by sector or free text

• Reach broad business population

• Monitor use

• Highly motivational and cost effective

On-line timesheets

• 45 advisers work with:

• Across our network• 250 clients• In virtual teams

• Peripatetic

• Aggregate invoices• Efficiency

• Monitor use• Where time spent

Cost Apportionment - Factsheets

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5

Mnths

£s

0

2000

4000

6000

8000

10000

12000

14000

Do

wn

load

s

Target Cost

Actual Cost(Function ofusage)PlannedDownloads

ActualDownloads

Software and E-Business Supply Industry

Key market conditions 1400 indigenous sme’s, 17500 jobs, £2.6bn turnover High ‘birth rate’ ; fragile High tech industry in its own right and an enabler for other industries An essential contributor to help business become more competitive.

Critical success factors Ensuring sales and marketing skills and customer focus Focus on future technologies and exploiting the potential of

Scotland’s universities. £450m investment in Intermediary Technology Institutes

Strategic Priorities

Develop a world class software and e-business supply industry• Foster collaboration between larger players and small innovative suppliers• Create scheme to lessen risk in e-bus sales from small, new suppliers• Alleviate shortage of women in software sector• Improve sales and marketing skills• Generate trust between supplier community and business users• Help suppliers adopt a global perspective

Supply quality transformational/interactive products to the Scottish market• Focus on cos. capable of developing and delivering transformational/

interactive applications

Stac Layers – Three Stage Model

Level 1 Entry Level

Level 2 Interim Level

Level 3 Membership

Globally positionedMarketing and PR

Access to other Level 1 members

Who’s who in Scotland?

CertificationKnowledge Bank

Collaborative space & infrastructure

ABTAIdeas Exchange

Stacparticipation

Access to furtherResources.

Membership of Specialist interest

groups

Un

ive

rsiti

es

Inte

rme

dia

ry T

ech

no

log

y

Inst

itute

s

Lessons learnt

Convey benefits not technology Leverage resources where possible Foster collaboration with banks, trade bodies etc Measure attitudes not just usage Customer feedback Engage software industry

Encourage skills in marketing and sales Develop strategic business approach

Political will