Digital Business Ecosystems Digital Business Ecosystems WorkshopWorkshop

Brussels, 18 May 2005Brussels, 18 May 2005

Bernard BaraniDirectorate Attaché

DG INFSO-D European Commission

Lisbon objective and ISTLisbon objective and IST

• There is now a greater consensus than ever before on the significant contribution which ICTs make to productivity and growth.

• ICTs play a role directly through the contribution of the ICT sector to GDP, and indirectly as other sectors throughout the economy take up and exploit ICTs.

• ICTs also improve the quality of life of citizens: for example by promoting improved access to existing services or by providing completely new services.

• The Lisbon targets cannot be met without a pro-active policy on ICT as a key component.

• Pervasive adoption of ICT by businesses is a key pillar of such policy

ICTICT inin FiguresFigures

• In Europe the growth rate is 2.8% in 2004, US=3.5% and Japan=2.8%

• 40% of this growth rate is related to ICT goods and services.

• Overall, the EU invested half the US amounts in ICT: EU total investment in ICT only grew from 2.2% to 2.6% of GDP from 1990 to 2001, while in the same period it grew from 3.3% to 4.2% in the US. Overall the EU economy is less ICT-intensive.

• Need to foster ICT adoption by entreprises and SME’s

Source EITO Report 2004

Some Challenges and Some Challenges and associated Policies (i2010)associated Policies (i2010)

Globalisation and delocalisation (Trade and competitiveness)

Interoperability and Standardisation (Competition and Internal Market)

Open Source (Competition and consumer protection)

Regulation and Market Barriers (Comp)

Trust and reliability (Security)

Deployment (Member States/Regional deployment policies: eEurope/i2010, eTEN, Structural funds)

Convergence of technologies and industries ( competitiveness and innovation)

All are important drivers for Business Ecosystems

• There will be over one trillion devices by 2005

• Number of communicating data devices growing from 2.4 billion to 23 billion in 2008 and one trillion by 2012

• Towards more complex business environments

Source: IDC Research 02/2004

RFID &Interactive Sensors

ANY DEVICE

All devices can communicate with and understand one another

Ever growing complexity Ever growing complexity

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2003 2004 2005 2006 2007 2008

• Amount of data accessed will explode to 1.075 Zettabytes (1018) by 2008

• Variety of Data

• Driving the need for flexible architectures

• Driving more complex business relations

• Creating opportunity for business transformation

Amount of data received or transmitted by device (in Petabytes/Day)

Computers

IndustrialAutomobile

Mobile

Entertainment

ANY DATA

Seamlessly communicate exploding amount of data on demand, to support people and business processes

Ever growing complexity Ever growing complexity

Increased complexity in Increased complexity in Business NetworkingBusiness Networking

Vulnerability and PrivacyVulnerability and Privacy

• Increased connectivity, Increased connectivity, diversity of devices, global diversity of devices, global resource sharing and richer resource sharing and richer applications increase applications increase complexity, amplifying the complexity, amplifying the vulnerability of the network vulnerability of the network and escalating the privacy and escalating the privacy concerns.concerns.

– 150 Zombies a week150 Zombies a week– 60% of all e-mail is spam60% of all e-mail is spam– 80% of all PCs infested with 80% of all PCs infested with

malwaremalware

Challenges:Challenges:Pervasive connectivity will increase vulnerability and privacy concerns,

requiring radically new software solutions,Establishment of “trusted” devices, servers and gateways will be required to accommodate dynamic network infrastructure and provide end-to-end security,Containing the damage caused to businesses by malware, including the cost of

fixing systems and lost revenue.

2000

1995 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ‘04

$20 billion

15

10

5

0

Annual losses

• Launch of the concept, 2002• Discussion paper “Towards a network of digital business

ecosystems fostering local development”• Spring 2003 – workshop• DBE concept also in the US, though different approach

• FP6 - call1 - 2003• 3 IP proposals• DBE project started in November 2003• 2005 six regions acting as pilot (3+ 3) regions joined

• Results• initial sw results to be released in open-source• contribution in innovations and standards (OMG)• concept of ecosystem “contaminated” platforms

• mainstream in industry and development policy strategies

• Concept now anchored to the ICT business sector, paving the way towards Future research

Birth and rise of the Digital Business Birth and rise of the Digital Business Ecosystem conceptEcosystem concept

SME’s

19 million enterprises in Europe

99.7% are SMEs, 93% are micro (< 10

employees)

ICT skills usually from outsiders

Providing SMEs with customised ICT

applications & services for improving

their efficiency (through process

and organisational integration) and for

extending their business beyond local

barriers

Key ActorsKey Actors

ICT Organisations

System integrators Service providers Software component developers

Open source communitiesOpen systems developers

Enabling these organisations to

keep and preserve their knowledge

and the possibility to

develop/integrate ICT-based

applications

RegionsFrom traditional rural economy to e-economy

Connectivity high-speed fibre-optic telecom network;

wireless in areas where cable is uneconomicDigital literacy ICT-enabled social and entrepreneurial

activities

Promoting regional economic growth,

competitiveness and employmentRejuvenating industrial areas through adoption of

distributed, networked and open systemsNetworking of SMEs and experimenting with new services

and new business models

Synergies with the Structural Funds

Key ActorsKey Actors

ATHENAIN

TE

RO

P

VE-FORUM

No-Rest

DBE

Legal-IST

CrossWork

ECOLEAD

Mosquito

MyCarEvent

MyTreasury

Co-DesNet

ILIPT

Spider-WinTrustCoM

V-CES

VERITASXBRL in EuropeSATINE

Networked Businesses, the IST Networked Businesses, the IST picturepicture

ATHENAIN

TE

RO

P

VE-FORUM

No-Rest

DBE

Legal-IST

CrossWork

ECOLEAD

Mosquito

MyCarEvent

MyTreasury

Co-DesNet

ILIPT

Spider-WinTrustCoM

V-CES

VERITASXBRL in EuropeSATINE

Enterprise InteroperabilityFrameworks, reference architectures

Interoperability Infrastructure

Enterprise Modelling

Service-oriented architecture

Trust management

Contract management

Digital EcosystemsDigital Ecosystems

Complex systems theoryComplex systems theory

Formal languagesFormal languages

Business modelsBusiness models

Policy and growth modelsPolicy and growth models

Knowledge SharingKnowledge Sharing

Product LifecycleBusiness models

Smart objects identification

Wireless RF technologies

Real-time monitoring

Middleware interfacing

Agent-based systems

Knowledge discovery

Self-configuring networks

Operations research

Business Networking

Reference models

Knowledge Management

Multi-agent systems

Virtual Organisations & Breeding Environments

Support technologies

Networked Businesses, the IST Networked Businesses, the IST picturepicture

IST-FP6 Call 5 “ICT for Networked Businesses”Digital business ecosystems for SMEs

Open-source distributed self-adaptive environment and models enabling SMEs to co-operate for design, development of flexible and adaptable components interoperable with proprietary systemsSupport of spontaneous composition, sharing distribution of business solutions and knowledge

IST in FP7Technology Pillar “Software, Grids, security and

dependability”Application Pole “ICT supporting business and industry”

New forms of dynamic networked co-operative business processes, digital ecosystems

i2010Take-up of ICT an integrated policy on e-business giving

special attention to SMEs

Looking AheadLooking Ahead

ICT for Networked Business FP6 call ICT for Networked Business FP6 call 55

Key ObjectivesKey ObjectivesSoftware solutions adaptable to the needs of local/regional SMEs, Software solutions adaptable to the needs of local/regional SMEs,

supporting organisational networking and process integration supporting organisational networking and process integration Distributed collaborative ambient intelligence-based network-oriented Distributed collaborative ambient intelligence-based network-oriented

systems for efficient, effective and secure product and service creation and systems for efficient, effective and secure product and service creation and deliverydelivery

FocusFocusDigital business ecosystems for SMEsDigital business ecosystems for SMEs

open-source distributed self-adaptive environment and models enabling SMEs to open-source distributed self-adaptive environment and models enabling SMEs to cooperate for design, development of flexible and adaptable components cooperate for design, development of flexible and adaptable components

interoperable with proprietary systemsinteroperable with proprietary systems

Support of spontaneous composition, sharing distribution of business solutions Support of spontaneous composition, sharing distribution of business solutions and and knowledgeknowledgeExtended products and servicesExtended products and services

decentralised architectures ; new approaches to business processesdecentralised architectures ; new approaches to business processesHorizontal actionsHorizontal actions

IPR and legal issues raised by os, networked and collaborative paradigmsIPR and legal issues raised by os, networked and collaborative paradigms

46 MEuro

Roadmap to FP7 - 2005Roadmap to FP7 - 2005

7 June Council - Orientation debate

21 Sept EC proposal on SP and RfP

11 Oct Council - views on SP and RFP

23 Nov EC proposal under Art 169/171

28/29 Nov Council - Orientation debate on SP and RFP

12-15 Dec EP First reading on FP

Feb/Mar Council - Common position on FP

EP First reading on RfP

April Common position on RfP

May/June EP - Second reading FP,

opinion SP, second reading RfP

June Council adoption of FP + RfP

July Council & EP - Adoption FP & RfP

July Council - Adoption of SPs

Oct Commission adoption WP

Nov Publication of the first call

Roadmap to FP7 - 2006Roadmap to FP7 - 2006

Seeing Old Things in New Seeing Old Things in New WaysWays

The ICT sector is a major economic sector in its own right, covering IT plus telecommunications equipment and services:

The sector has grown from 4% of EU GDP in the early ‘90s to around 8% in 2000 and 6% of employment in 2000.

The ICT sector is one of the most innovative sectors accounting for 18% of the overall R&D spending in 1999 and one of the most productive, with an annual productivity growth of 9% on average over the 1996-2000 period.

The sector as a whole performs fairly well in comparison with the US in terms of size (10% of GDP in the US against 8% in the EU, productivity and job creation, but less so in terms of contribution to R&D (in the US, ICT account for 30% of R&D). Source: OECD

ISTIST inin FiguresFigures ( (II)II)

A Generic TrendA Generic Trend

The Darknet and the Future of Content Distribution

Peter Biddle, Paul England, Marcus Peinado, and Bryan Willman

Microsoft Corporation

Beyond the pure business environment, dynamicity, Beyond the pure business environment, dynamicity, reconfiguration, heterogeneous environments are reconfiguration, heterogeneous environments are becoming key trends of the ICT landscapebecoming key trends of the ICT landscape

As encrypted networks grows in popularity, is there a danger that these so-called darknets will replace bigger and bigger chunks of the Internet?It's not a danger - it's a requirement. Historically, corporations had physical walls. Firewalls try to emulate them, but it's not the way we work anymore. We need virtual boundaries around our workgroups - which may include a lot of people from other organizations - not around corporations. The only way to accomplish that is with darknets.

Ray Ozzie , Groove NetworksWired , Issue 12.08 - August 2004