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London LSE OPAALS kick-off

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1 London 29 . 6 . 2006 LSE OPAALS kick-off
Digital Ecosystem Research creating the conditions for Innovation Ecosystems Francesco Nachira European Commission DG Information Society and Media Head of Sector “Technologies for Digital Ecosystems”

2 Digital Business Ecosystems
Originally developed in “ICT for Business networking” (in SME area) Change of organisational structure (among enterprises) , towards global networked economy Transition 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 difficulties To 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) SMEs But the only hope for a SMEs is to become BIG?

3 SMEs in a Dynamic knowledge-based globally-networked economy
How to reach the critical mass of resources ? How to cope with the increased complexity ? Growth Node Industrial District Business Ecosystem Virtual cluster

4 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

5 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

6 Turn Peculiarities into Competitive Advantages Shift 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 garden From “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 needs Processes: Interpretation - Partecipation - Collaboration - Harmonis. of interests Plurality and richness of: economic actors, subjects, ideas, interactions, models, aggregation

7 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 How to create a favourable environment for business and people: a socio-economic eco- system Which industrial policy ? Which infrastructure ? (material / immaterial ) Service & technical Infrastructure Governance regulations & industrial policy Human capital, knowledge and practices Business & financial conditions

8 Integrated scalable approach intermediate results
The digital ecosystem How 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) ? How to create a common ICT infrastructure that allows digital components to exhibit behaviour of natural ecosystems? Integrated scalable approach intermediate results ICT ecosystem-oriented architecture Policy governance, actors’ involvement [adaptation] affordable ICT services Diffused + Digitalised knowledge

9 The Digital Ecosystem, the carrier for services and ideas enabling
The Digital Ecosystem, the carrier for services and ideas enabling seamless discovering and networking Who owns it? What does it contain? What‘s the destination? What I offer Which is the revenue model ? Owner Serial-ID Check-ID Country ISO Ident Pictures courtesy from DBE project

10 The Innovation Ecosystems:
An integrated approach for development to reduce the digital divides among regions among SME and LE to foster local economic growth and innovation; new forms of dynamic business interactions, enabled by new paradigms and digital ecosystem technologies; embedded knowledge enabled by capacity building instruments Growth Competitiveness, market & internal efficiency Cooperation & innovation networks improve lead to encourage provide resources ICTs catalyse improve “Digital Ecosystem Infrastructure” Ecosystem- -oriented infrastructure make viable shape & foster supports support Bio-Paradigms enhances New organizational and business models; knowledge & skills Policy supports Derivative work from P.Dini - London School of Economics

11 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

12 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 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 formalised knowledge

13 The layers of the innovation ecosystem
Economy (business ecosystem) Structural coupling ICT (digital ecosystem) Derivative work from Salzburg Technical University 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)

14 Digital Ecosystem (1) Dynamic aggregation of ICT-services
Digital (ICT) Services ICT service ICT service Aggregated Complex, personalised, ICT-services ICT service ICT-SME Inputs ICT service ICT service DE structural services* Rules, models, context Digital Ecosystem infrastrucutre DE structural services, e.g. Accounting Billing Authentication Reputation Decentralized Data Storage Fitness data Needs of ICT solutions, Profile of users, of ICT needs

15 Digital Ecosystem (2) Dynamic aggregation of final services (and SMEs)
ICT service ICT product SME Offers ICT service 1.Networks of SME ICT service Digital Services, applications 2.Final Services Aggregated Complex, personalised, Services / Solutions Rules, models, context DEstructural services* Digital Ecosystem infrastructure To manage the process - ICT district + - Sectorial district Needs of ICT services, solutions, profile of providers, profile of users

16 Layers & facets of the digital ecosystem (identified in 2002)

17 Ecosystem Evolution 2002 1st Paper - 1st cycle of Workshops
2003 Start 1st project IP-DBE 10M€ nd Cycle Workshops ; Position Paper “Research Vision 2010” July Int’l Summer School - European Digital business ecosystem Nov 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 Digital ecosys. pilot regions : Aragon, WMidland, Tampere, Estremadura, Prov.TN, Lazio, Piemonte, Baden-Württenberg, …]+ Kanpur

18 Digital Ecosystem pilot regions (at June 2005)
Local Business Ecosystem co-funded by DBE project joined as new pilot Potential future take-up local ecosystems

19 Cluster of DE Projects

20 DE in FP7: Objectives, Main Themes
“To enable EU to master and shape the future developments of ICT so that the demands of its society and economy are met” ICT Technology Pillars e.g. Software, Grids, security and dependability Integration of Technologies Applications Research providing the knowledge and the means to develop a wide range of ICT-based services and applications 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).


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