20061031 Policies and measures for eBusiness and ICT in the European Union

Korean eKorean e--Business Standards ConferenceBusiness Standards Conference 31 October 2006, Seoul 31 October 2006, Seoul -- KoreaKorea

Policies and measures for eBusiness and ICT Policies and measures for eBusiness and ICT in the European Unionin the European Union

Arian Zwegers, Ph.D.

DG Information Society and Media

Overview Overview • ICT in European Union

• A changing world• Trends in business and ICT• ICT market in EU• eBusiness adoption

• EC Response• i2010 policy• RFID policy• Examples of other policies

• Framework Programme 7 (FP7)• (ICT) R&D expenditure• Towards FP7• FP7 outline• ICT Work Programme 2007-2008• NESSI Technology Platform• International Cooperation

A Changing WorldA Changing World Major countriesMajor countries’’ share of world GDPshare of world GDP

Source: Financial Times, 22 February 2005

0

10

20

30

40

50

60

70

1820 1870 1913 1950 1973 2001 2015 2025

Big four westernEuropean countries*US

Japan

India

China

Business and ICT transformationsBusiness and ICT transformations

1960 1970 1980 1990 2000 2010Mainframes mini-computers PC client-sever Internet Convergence

Company levelinformation& automation

Automated Support; Costs

DepartmentalEmpowerment

Speed; Logistics

PersonalFreedom

BusinessProcessRe-engineering

Pervasive global& integrated groups

Supplychains

Anytime, anywhere; Platforms and ecosystems

Globalisation, customisation, outsourcing

Trends in BusinessTrends in Business• Changing “cooperations / partnerships”

• Do it all yourself• Craftsman

• Outsourcing• Focus on core competencies

• Open Innovation• See Open Innovation by Henry Chesbrough

• Ecosystems• Various interpretations possible

• Connect and Develop• See Harvard Business Review, March 2006

• Crowdsourcing• See Wired, June 2006

Trends in ICTTrends in ICTSome examples:

• Convergence

• Broadband adoption

• Consumerisation of technology

• RFID – Radio Frequency Identification

• Open Source Software

• SOA – Service Oriented Architecture

• SaaS – Software as a Service

ICT Market, 2005ICT Market, 2005 By region and by productBy region and by product

Europe, 33.8%

US, 28.0%

Japan, 14.7%

Rest of World, 23.5%

Office equipment, 1.3%

Computer hardware, 12.7%

End-user communications equipment, 4.5%

Carrier services, 44.2%

Datacom and network equipment,

6.5%

Software, 10.7%

IT services, 20.0%

Total value = € 1,949 billion

Total value = € 659 billion

Europe 33.8%

Source: EITO, 2006

• Europe is world’s largest ICT market

• Europe has a large software and services market

EU ICT expenditures per capita,EU ICT expenditures per capita, 2005, in Euro2005, in Euro

Source: EITO, 2006http://www.eito.com/download/EITO%202006%20-%20ICT%20market%20March%202006.pdf

Increasing awareness of ICT contributionIncreasing awareness of ICT contribution

• Significant contribution ICT to productivity and growth

• Direct contribution ICT sector to GDP, indirectly by take up and exploitation in other sectors

• ICT improves quality of life of citizens

• ICT is one of the key ingredients of sustainable development

• ICT contributes to Lisbon agenda

Use of ICT by EnterprisesUse of ICT by Enterprises

Source: Eurostat

8.9

8.7

11.9

23.9

29.0

37.7

61.3

85.0

13.4

12.8

26.5

28.8

25.0

51.7

65.3

88.9

11.8

15.1

23.8

33.5

35.1

62.6

67.3

91.1

0 20 40 60 80 100

eCommerce - selling

eBusiness - linkingwith business partners

eCommerce - buying

eBusiness - linking ofinternal processes

% of employees usingInternet

Broadbandconnection

Website

Access to Internet

200520042003

716

2545

2114

2335

1530

2515

375

0 15 30 45 60 75

1-910-49

50-249250+

Czech Rep.Germany

SpainFrance

ItalyHungary

NetherlandsPolandFinland

UK

19

32

23

45

61

39

30

18

15

32

33

0 15 30 45 60 75

Total

Food

Footwear

Pulp & paper

ICT manuf.

C. electronics

Shipbuilding

Construct ion

Tourism

Telecoms

Hospitals

ERP

eBusiness AdoptioneBusiness Adoption Companies using an ERP systemCompanies using an ERP system

By industry By country

Source: e-Business W@tch (Survey 2006)

http://www.ebusiness-watch.org/

• ERP adoption varies by industry and country

889

21

699

1911

711

1335

10

0 10 20 30 40 50

1-910-49

50-249250+

Czech Rep.Germany

SpainFrance

ItalyHungary

NetherlandsPolandFinland

UK

12

14

6

13

16

11

20

8

14

20

18

0 10 20 30 40 50

Total

Food

Footwear

Pulp & paper

ICT manuf.

C. electronics

Shipbuilding

Construct ion

Tourism

Telecoms

Hospitals

ICT system linked with supplier(s)

eBusiness AdoptioneBusiness Adoption Companies Companies whose ICT system is linked with those of supplierswhose ICT system is linked with those of suppliers

• Connecting ICT systems varies by industry and country

By industry By country

Source: e-Business W@tch (Survey 2006)

http://www.ebusiness-watch.org/

Overview Overview • ICT in EU




Activities by DG Information Society and MediaActivities by DG Information Society and Media

Regulatory FrameworkRegulatory Framework Policy StrategyPolicy Strategy

• The Lisbon Strategy• eEurope 2002

- SMEs to ‘Go Digital’• eEurope 2005

- Legislation (to identify & remove barriers)- SMEs- e-skills- Interoperability- Trust and confidence

• i2010R&D Activities

R&D Activities

•• Framework Framework ProgrammeProgramme 66 - 3.6 B€ to ICT priority (2003-2006)

•• Framework Framework ProgrammeProgramme 77- 9.1 B€ to ICT priority (2007-2013)

• New regulatory framework for electronic communications

• Directive on electronic commerce (2000/31/EC)

• Directive on electronic signatures (1999/93/EC)

• Directive on copyright and related rights (2001/29/EC)

• Directive on privacy and electronic communications (2002/58/EC)

• …

i2010 Strategic Frameworki2010 Strategic Framework

• A comprehensive strategy for ICT and media sectors• Single European Information Space

• Centred around convergence telecom, media, and information technology

• Innovation and Investment in ICT research• Increasing R&D efforts

• Inclusion, better public services and quality of life• Oriented towards citizens

http://europa.eu.int/i2010

December 2006: Communication from the European Commission

December 2006

March 2006September 2006

June 2006

3 July – 17 Sept. 2006: Public online consultation

6-7 March: Internet of ThingsSept. – Oct. 2006: Analysis

of input received

Oct. – Nov. 2006: Drafting of the

Communication March 9, 2006 at CeBIT: Commissioner Viviane Reding announces the

launch of a Europe-wide public consultation

Ongoing research

and co-operation

15-16 May: Applications

16-17 May: Security & Privacy

1 June: Interop./ Governance

2 June: Frequency spectrum

RFID policyRFID policy Towards a CommunicationTowards a Communication

16 Oct. 2006: Final conference

http://www.rfidconsultation.eu

RFID policyRFID policy Current RFID research in detailCurrent RFID research in detail

• 40 collaborative research projects in FP6

• Total investment € 312 million, EC contribution € 153 million

• In addition, national RFID research projects

6%

23%

17%

6%10%

38%

Organic electronics and RFID devices

Smart sensors and RFID-enabled actuators

Technological hurdles of the silicon RFID

Intelligent networks; fundamental newsystems"Internet of Things"

Innovative applications and services

RFID policyRFID policy Interoperability and standardsInteroperability and standards

• Closed vs. open systems • Up to now, RFID usage has been confined to closed system

usage• Expected potential can only be realised in an open system

approach

• Role of the Commission• Stimulate/support global harmonisation of RFID standards• Should take a more active role in setting RFID standards

• Role of Industry• Actively participate in global standardisation activities

RFID policyRFID policy Frequency allocation and regulationFrequency allocation and regulation

• Spectrum allocation• Reallocating spectrum is a long process• Consensus exists in Europe to promote a

globally harmonised spectrum

• EC decision on UHF spectrum harmonisation meets today’s requirements• Sufficient for initial RFID deployment• Future adoption

• Longer term spectrum requirements have to be explored now

RFID policyRFID policy Privacy and securityPrivacy and security

• Users’ privacy protection• Core principles and mechanisms should be defined

• EU’s Data Protection Directive• Stakeholders to comply with set principles• Guidelines for RFID deployers and RFID technology

manufacturers

• Global accord• Common principles and best practises for privacy and

security

• Societal concerns• RFID use in the workplace• Environment-friendly RFID tags• Health and security

Other examples of policiesOther examples of policies Open Source SoftwareOpen Source Software

• “Economic impact of OSS on innovation and competitiveness of EU ICT sector” study

• “The Effect of Public Administrations Publishing Open Source Software” study

• Open Source Observatory (OSO): dissemination of good practice

• Open Source Observatory and Repository (OSOR)

http://cordis.europa.eu/ist/st/studies.htm http://ec.europa.eu/idabc/servlets/Doc?id=24853

Other examples of policiesOther examples of policies ICT StandardisationICT Standardisation

• Open consensus building process

• Priority for ensuring interoperability, facilitating ICT uptake, and ensuring accessibility

• “Technical standards may be arcane, but control over them can determine the rise or fall of industrial empires. Just ask Microsoft, or Sony and Toshiba, which are vying fiercely to set the rules for the next generation of DVD technology. National prestige is also at stake. As Chinese officials like to say: third- class companies make products; second-class companies develop technology; first-class companies set standards” (Financial Times, 13 July 2006)

http://ec.europa.eu/enterprise/ict/policy/standards/ict_index_en.htm

Overview Overview • ICT in EU




R&D ExpenditureR&D Expenditure as % of GDPas % of GDP

0.33

0.97

1.11

1.31

1.35

1.87

1.93

1.99

2.19

2.50

2.68

2.76

3.15

3.51

4.27

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Cyprus

Hungary

Spain

China

Czech Republic

UK

EU25

EU15

France

Germany

Korea

US

Japan

Finland

Sweden

Source: Eurostathttp://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NS-05-002/EN/KS-NS-05-002-EN.PDF

• Other regions spend more on R&D than Europe

• Large differences within Europe

R&D expenditure by industryR&D expenditure by industry

• ICT R&D by businesses in EU far less than in US

• Many top 50 spenders in the world are from EU

Source: Financial Times, 21 March 2005

ICT R&D expenditureICT R&D expenditure

• Europe is spending less than other regions in ICT R&D

• Public ICT Spending is Fragmented across Europe

Framework Programmes

29.2

93.3

48.8

European Union USA Japan

0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2%

France

Germany

United Kingdom

Spain

The Netherlands

Sweden

Finland

European Union

United States

Japan

Annual ICT R&D Expenditure (% GDP)Comparative spending on ICT R&D in 2000

(Billion Euro)

Budgets of the EU Framework ProgrammesBudgets of the EU Framework Programmes 19841984--20132013

NB: Budgets in current prices

Source: Annual Report 2003, plus FP7 revised proposal

0

2000

4000

6000

8000

10000

12000

1984 1988 1992 1996 2000 2004 2008 2012

€ mi l l i o n

International Co-operation

Science in Society

Research Potential

Regions of Know-ledge

Research for the benefit of SMEs

Research Infrastru- ctures

CAPACITIES

Marie Curie ActionsPEOPLE

European Research CouncilIDEAS

9. Security & Space

8. Socio-economic

Research

7. Transport

6. Environment

5. Energy

4. Nano, M

aterials, Production Techn.

3. ICT

2. Food, Agriculture

Biotechnology

1. Health

CO

OPER

ATIO

N

77thth Framework Programme (2007Framework Programme (2007--2013)2013)

http://cordis.europa.eu/fp7/

€ 32 B

€ 7.5 B

€ 4.7 B

€ 4.2 B

ICT Work Programme 2007ICT Work Programme 2007--20082008

Futu

re a

nd E

mer

ging

Te

chno

logi

es

Cognitive systems, robotics andinteraction

Network and service infrastructures

Components, subsystems and embedded systems

Digital content and knowledge

ICT for health

Intelligent car and sustainable growth

ICT for independent living and inclusion

End-to-end systems for Socio-economic goals

Tech

nolo

gy ro

adbl

ocks

Technology Platforms

i2010 Flagships

Source: ICT WP2007-2008 (soon to be published)

ICT Work Programme 2007ICT Work Programme 2007--20082008

Futu

re a

nd E

mer

ging

Te

chno

logi

es

Cognitive systems, robotics andinteraction

Network and service infrastructures

Components, subsystems and embedded systems

Digital content and knowledge

ICT for health

Intelligent car and sustainable growth

ICT for independent living and inclusion

End-to-end systems for Socio-economic goals

Tech

nolo

gy ro

adbl

ocks

€ 585 M

€ 193 M

€ 434 M

€ 203 M € 174 M € 159 M € 73 M

€ 185 M€ 14 M

Challenge 1 Challenge 1 ‘‘Pervasive & Trusted Network & Pervasive & Trusted Network & Service InfrastructuresService Infrastructures’’

The network of the future • Ubiquitous network infrastructures and

architectures• Optimised control, management and

flexibility of the future network infrastructure

• Technologies and systems architectures for the Future Internet

Service & Software Architectures, Infrastructures and Engineering

• Service architectures• Service/SW engineering approaches• Strategies and technologies enabling

mastery of complexity, dependability and behavioural stability

• Virtualisation tools, system software and network-centric operating systems

• Integrated solutions supporting the networked enterprise

Secure, dependable and trusted infrastructures

• Security & resilience in network infrastructures

• Security & trust in dynamic and reconfigurable service architectures

• Trusted computing infrastructures• Identity management and privacy

enhancing tools

Networked Media • Interoperable multi-media network &

service infrastructure • End-to-end systems

€ 200 M€ 150 M

€ 85 M

€ 90 M


European Technology PlatformsEuropean Technology Platforms

http://cordis.europa.eu/technology-platforms/home_en.html

What are they Industry-led public-private partnerships that bring together industry, research community and public authorities in areas of strategic economic importance for Europe

Objective World class performance in research and innovation in ICT by closing the gap with Europe’s leading competitors

Focus on user value and end-to-end solutions, on convergence, innovation, standards, interoperability, spectrum, IPRs, international cooperation

www.nem-initiative.org

www.emobility.eu.org

www.isi- initiative.eu.org/

www.nessi- europe.com

Large Scale EU Partnerships

joining the future

Industrial CommitmentIndustrial Commitment

http://www.nessi-europe.com

Aims to develop a visionary strategy for Software and Services driven by a common Strategic Research Agenda where innovation and business strengths are reinforced.

Expected impact:• standardisation, common service platform open standards• improve EU competitiveness in S&S• reduce sector fragmentation and align R&D efforts• openness: an open initiative mobilising SMEs, academia and industry• address key R&D and policy challenges in S&S

International CooperationInternational CooperationObjectives

• To improve cooperation in the development of standards and interoperable solutions and in roadmapping

• To improve scientific cooperation for the mutual benefits of Europe and target regions

• To support other Community policies and in particular the development policy

• To support activities linked to ICT-based research infrastructures


Call to actionCall to action• Have a look at FP7• Have a look at NESSI (and other ETPs)

• Have a look at NESSI Working Groups

• Learn about future research agendas• Participate to upcoming events

• 21-23 November 2006: IST Event 2006• 1 February 2007: European ICT Proposers Day in Cologne• 7-8 February 2007: FP7 launch event for information

multipliers in Brussels• 15-21 March 2007: Participation in CEBIT (in preparation)• Many, many events organised by INFSO units and ETPs

check web sites

For More Information ...For More Information ...FP7http://cordis.europa.eu/fp7/http://cordis.europa.eu/ist/

ICT for Enterprise Networkinghttp://cordis.europa.eu/ist/ict-ent-net/index.html

Software Technologieshttp://cordis.europa.eu/ist/st/index.html

NESSIhttp://www.nessi-europe.com

RFIDhttp://www.rfidconsultation.eu

E-mail<first name>.<last name>@ec.europa.eu

FP7http://cordis.europa.eu/fp7/http://cordis.europa.eu/ist/

ICT for Enterprise Networkinghttp://cordis.europa.eu/ist/ict-ent-net/index.html

Software Technologieshttp://cordis.europa.eu/ist/st/index.html

NESSIhttp://www.nessi-europe.com

RFIDhttp://www.rfidconsultation.eu

E-mail<first name>.<last name>@ec.europa.eu