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Digital Ecosystem Research creating the conditions for
Innovation Ecosystems
Francesco NachiraEuropean Commission
DG Information Society and Media
Head of Sector “Technologies for Digital Ecosystems”
http://www.digital-ecosystems.org
London 29 . 6 . 2006LSE
OPAALS kick-off
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 2 of 22
Originally developed in “ICT for Business networking” (in SME area)
Change of organisational structure (among enterprises) , towards global networked economyTransition towards the networked knowledge-economy SMEs : a weakness or a potential for Europe ?
Dynamic and complex business interrelations
More knowledge
Continuous innovation
More specialised resources
But SME companies have limited specialised resources and difficultiesTo access to global value chains
To access to knowledge
To access to specific services (e.g. legal)
To adopt new technologies (ICT)
To adopt new and distributed business models and work organisations
Threshold Size and 2 Divides : Geographical + SMEs vs. LEs)
Digital Business Ecosystems
SMEs
But the only hope for a SMEs is to become BIG?
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 3 of 22
SMEs in a Dynamic knowledge-based globally-networked economy
Growth Node
Business Ecosystem
Industrial District
Virtual cluster
• How to reach the critical mass of resources ?• How to cope with the increased complexity ?
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 4 of 22
Complexity and new forms of organisation
“… the actual slowly changing network of organizations will be replaced by more fluid, amorphous and often transitory structures based in alliances, partnership and collaborations”...
“…building global dynamic communities that share business, knowledge and infrastructures, develop creativity”
Peculiarities of the EU economical structure • Dimensions of enterprises (SMEs vs. LE)• Historical presence of clusters with diffused tacit unstructured knowledge, skills and infrastructure• Cultural diversity (services, ideas, but also model of business, approaches, practices, …), leading to
creativity
But do we have to copy the “best practices” of others ?Turn diversity & peculiarities in competitive advantage
Evolution in the impact of ICT-adoption and in the complexity of the enabling infrastructures:
• Increased dynamicity and complexity in business networking• Key role of knowledge (knowl. on biz/soc./econ. aspects)• Increased sophistication of ICT infrastructure
SMEs
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 6 of 22
Turn Peculiarities into Competitive AdvantagesShift of paradigm
Engineers: “problem solving” approach: isolate problem, identify variables, make a plan …
Economy as machine
Complexity: Ecosystemic approach:
Economy as ecosystem
From building a machine --> nutruring a gardenFrom “engineer approach” --> “ecosystemic approach”From making a plan --> creating the conditions
Diversity is a value. Critical mass of creative ideas, activities.To include in the global creation/production process the excluded [ capacity building + infrastructures ] - technology->socio-economic needsProcesses: Interpretation - Partecipation - Collaboration - Harmonis. of interestsPlurality and richness of: economic actors, subjects, ideas,interactions, models, aggregation
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 7 of 22
The Business Ecosystem
Create a climate conductive to innovation and development: the conditions for
– Developing new economic activities – Attracting / developing new ideas and biz/org models– Attracting / developing capital and human capital
Service & technicalInfrastructure
Business & financial conditions
Human capital, knowledge and
practices
Governance regulations &
industrial policy
How to create a favourable environment
for business and people: a socio-economic eco-
system
•Which industrial policy ?•Which infrastructure ? (material / immaterial )
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 8 of 22
The digital ecosystemHow to provide business networking services, adapted to local needs ?
How to transfer and disseminate knowledge ?
How to enable synergies and business networking ?
How to represent services, but also micro- and macro-economy
(from semantic of web to semantic of economy) ?
ICT ecosystem-oriented
architecture
Diffused + Digitalised knowledge
affordable ICT
services
Policy governance,
actors’ involvement[adaptation]
How to create a common
ICT infrastructure that allows digital
components to exhibit behaviour
of natural ecosystems?Integrated scalable
approachintermediate results
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 9 of 22
The Digital Ecosystem, the carrier for services and ideas
enabling seamless discovering
and networking
Pictures courtesy from DBE projectWho owns it?What does it contain?What‘s the destination?
What I offerWhich is the revenue model ?
• Owner• Serial-ID• Check-ID• Country• ISO Ident
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 10 of 22
ICTscatalyse
improve
improve
New organizationaland business models;
knowledge & skills
Policysupports
The Innovation Ecosystems:
An integrated approach for development
“Digital Ecosystem Infrastructure”
Derivative work from
P.Dini - London School of Economics
to reduce the digital divides- among regions-among SME and LE
to foster local economic growth and innovation; new forms of dynamic businessinteractions,enabled bynew paradigms anddigitalecosystemtechnologies;
embeddedknowledgeenabled bycapacity building instruments
Growth
Competitiveness, market & internal
efficiency
Cooperation &innovation networks
improve
lead to
encourage
provideresources
Ecosystem--oriented
infrastructuremakeviable
shape& foster
supports
support Bio-Paradigms
enhances
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 11 of 22
What is a Digital Ecosystem ?
•THE DIGITAL ECOSYSTEM •is a pervasive “digital environment”
•that supports the business ecosystems
•which formalise/represents micro- and macro- economic offers/relationships
•that evolves / adapts to local conditions with the evolution of its components
THE “SOFT” SUPPORT INFRASTRUCTURE, WHICH MEDIATES and REPRESENTS
SERVICES & INFORMATION (knowledge)EMPOWERING THE NETWORKING
AND THEIR SHARING
architecture / structure
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 12 of 22
What is represented in a Digital Ecosystem ?
•software components, applications, services, knowledge, business processes and models, training modules, trust relationships, contractual frameworks, laws ....... and hopefully a mixture of all these
formalised knowledge
ANY USEFUL REPRESENTATION,
EXPRESSED IN A LANGUAGE (formal or natural),
DIGITALISED AND LAUNCHED ON THE NET,
WHICH CAN BE PROCESSED (by computers and/or
humans)
Repres. of service:•biz model•rev. model•comp. model•ref. to Ontology
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 13 of 22
The layers of the innovation ecosystem
Derivative work from Salzburg Technical University
Economy(business ecosystem)
Structural coupling
ICT (digital ecosystem)
Digital ecosystem: an o-s, public, distributed, pervasive environm. - transport, identification, sharing, match (services, knowledge)- embedding knowledge, biz rules, revenue models, ontology...- spontaneous evolution, adaptation / composition of services, digital content and sw components (from SOA to EOA)
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 14 of 22
ICT-SMEInputs
Digital(ICT) Services
Digital Ecosystem (1) Dynamic aggregation of ICT-services
ICT service
ICT service
ICT service
ICT service
ICT service
Rules,models,context
Aggregated Complex,personalised,ICT-services
Needs of ICT solutions,Profile of users, of ICT needs
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
DE structural services*
Digital Ecosysteminfrastrucutre
DE structural services, e.g.•Accounting•Billing•Authentication•Reputation•Decentralized Data Storage•Fitness data
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 15 of 22
SMEOffers
2.Final Services
Digital Ecosystem (2) Dynamic aggregation of final services (and SMEs)
ICT service
ICT product
ICT service
ICT service
Rules,models,context
Aggregated Complex,personalised,Services /Solutions
Needs of ICT services, solutions,profile of providers, profile of users
Digital Ecosystem infrastructure
1.Networks of SME
DEstructural services*
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Digital Services, applications
To manage the process- ICT district +- Sectorial district
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 16 of 22
Layers & facets of the digital ecosystem (identified in 2002)
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 17 of 22
Ecosystem Evolution • 2002 1st Paper - 1st cycle of Workshops• 2003 Start 1st project IP-DBE 10M€• 2005 2nd Cycle Workshops ; Position Paper “Research Vision 2010”• July 2005 Int’l Summer School - European Digital business ecosystem• Nov 2005 WSIS - Int’l interest for EU models (Latinamerica - India)
• 2006 Cluster EU projects 35M€ ; • 2006 New science: start NoE on Ecosystems OPAALS
• End 2006 Initial governance structures - Multi-stakeholder consultation process• Feb 2007 IEEE Dig.Ecosys. Conference (pls. submit)• Mid 2006 8 Digital ecosys. pilot regions : Aragon, WMidland, Tampere,
Estremadura, Prov.TN, Lazio, Piemonte, Baden-Württenberg, …]+ Kanpur
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 18 of 22
Local Business Ecosystemco-funded by DBE project
Local Business Ecosystemjoined as new pilot
Potential future take-uplocal ecosystems
Digital Ecosystem pilot regions (at June 2005)
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 19 of 22
Cluster of DE Projects
new forms of dynamic networked co-operative business processes, digital eco-systems in particular for small- and medium-sized organisations; optimised, distributed work organisation and collaborative work environments such as knowledge sharing and interactive services (e.g. for tourism).
DE in FP7: Objectives, Main Themes
ICT Technology Pillarse.g. Software, Grids, security and dependability
Integration of TechnologiesApplications Research
providing the knowledge and the means to develop a wide range of ICT-based services and applications
“To enable EU to master and shape the future developments of ICT so that the demands of its
society and economy are met”
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 21 of 22
Francesco.Nachira European Commission DG Information Society and Media
Unit D5 : ICT for Enterprise Networking
Kick-off of OPAALS NoELondon School of Economics
London, 30 June. 2006# 22 of 22
More information onMore information onhttp://www.digital-ecosystems.orghttp://www.digital-ecosystems.org