1. Fabio Corno - LIUC, Castellanza Workshop on “CNs for Local Economy Development Milano, 11 February 1999 CN and Local Economic Development: an Opportunity for Creating Value

2. Outline CN specificities –The RCM case A model for Determining CNs Value –The RCM case

3. CNs: An overall perspective Commerce net private services Free net citizens as users Civic net public services CNs operate as service providers between institutions (both public and private) and citizens, offering new communication means, together with the tools needed in order to exploit them. Such service responds to a strong need felt by local institutions and by citizens to know each other better and to interact more The opportunity is offered to users to get new information and to communicate amongst themselves and with local institutions.

4. CNs specific aspects Intangibility “Non profit” as reference field Innovativeness within the telematic industry CNs

5. CNs objectives A CN aims at offering to its users/adherents - individuals or groups of citizens, associations, institutions - a range of services related to different areas, in the interest both of: CitizensThe local economy

6. CNs orientation towards the local community The local community Private Institutions Public Institutions Individuals (citizens at large)

7. CNs: an opportunity for the P.A. CNs represent an opportunity for promoting and coordinating public actors and private sectors, in order to concretely respond to the needs of the local community, such as: a) simplification of burocratic interactions within the P.A. b) automatic offering of services to companies c) business diffusion on new electronic channels d) access to publicly useful information through telematic networks e) empowerement of info services concerning work market and training

8. The RCM case: its mission The original idea Information as a strategic resourse Telematics as an opportunity for accellerating and spresading information U.E. policies An opportunity for homogenizing P.A. info systems (highly dishomogeneous) Citizens’ request for integrated services Allowing population at large to reach new communication channels and means The RCM project aims at replicating in Milan and Lombardy the success reached by CNs abroad at the beginning of the 90’s (cfr. Seattle).

9. Resources which are/are not available critical success factors Product system Competitive Advantages “Structure” distinctive competences Cultural Hypotheses differential advantages Need Bearers basic expectations RCM: the entrepreneurial formula Communication Opportunity for Citizens

10. RCM: the “product system” The RCM “procuct” is articulated along four proposals, which involve as “actors” citizens, the institutions, and othe subjects Information Direct Lines Interactive Services Discussion Forum

11. RCM the interaction with customers RCM Know-how Communication “space”Financial resources Consultancy Sponsorships Public & private institutions Contracts

12. RCM: the interaction with users RCM InternetModem (Registration) Citizens lato sensu Knowledge Dialogue

13. RCM strengths Service continuity Research activity know-how diffusion Development of new entrepreneurship within advanced technologies field Link with similar centers both in Italy and abroad Development of innovative technologies Initiative taken by a “super partes” public institution, Reduction of bureacracy costs Improvement of local communication RCM Attention both to local and global

14. How to evaluate CNs? Main points: Aggregation of different subjects around the “RCM Project” “Non-profit” realm of operation Key relevance of “internally developed intangibles”

15. A possible reference model: a) institutions

16. A possible reference model: b) the roots of intangibles

17. A possible reference model: c ) people-dependance INTANGIBLE ASSETS  TACIT competences,... INTANGIBLE ASSETS  EXPLICIT trademarks, brand names...

18. The reference model

19. How to evaluate CNs? RCM: assets purchased on the market Relationship with customers/ sponsors Relationship with users 4 76 RCM “people” 3 Development potential overall

20. How to evaluate CNs (cont) ? RCM: assets purchased on the market - Hardware - Software Relationship with customers/sponsors - Contracts - Sponsorships Relationships with users - usage rate - sustained costs 4 76 RCM People - skills - network structure 3 - 7 Development potential - from the point of view of “users” - from the point of view of ”customers” overall

21. RCM “value” People: a) skills as a “tacit” asset “Tacit” RCM Know-how is imbedded in the human resources who have contributed to its development Key elements for evaluating it: a) key people CV’s b) hours dedicated to RCM possibly divided between “project launch”; “knowledge diffusion and update”; “project maintenance”; consultancy to third parties c) “transformation” of users into “key people” through their activity as moderators

22. Users: powerful “ human resources” for RCM RCM “intuition has made available to “citizens”” new communication opportunities both to private subjects and firms which have been able to choose whether to limit themselves to a “passive” usage of CN services or tu use the net in an “active” way in order to promote new communication processes, focused on specific interest areas by so doing they have contributed to enlarging RCM network as they have offered DEVELOPMENTDEVELOPMENT

23. RCM “value” People: b) network structure as an “explicit” asset the RCM network is imbedded in the groupware architecture developed over time by RCM people, also through trial-and-error processes Key elements for evaluating it: a) network quality: its “fit” with local community needs, the attention paid to the “weak” parts of the population,... b) number of conferences, their hierarchy,... c) formalized procedures for services delivery and “maintenance” (i.e.: users registration, conferences “activation” and “disappearance”)

24. RCM “value” Relationships with users Trend in users’ number interesting aspects are represented both by the number of users and by their composition (women? foreigners?) Trend in accesses by users only active users are to be considered: their “fidelity” is evaluated through the time elapsed between sequential accesses Costs born by users in order to use RCM: number and length of accesses to RCM have been monitored throughout its life, together with telephone costs this is interpreted as a “conservative” proxy for users’ interest in RCM and in its services

25. RCM “value” Relationships with customers Number of private and public institutions which have approached RCM in order to make themselves visible, as well as in order to acquire new know-how Time horizon covered by contracts repeated contracts are signs of customer satisfaction Financial resources obtained a) from contracts: related to space availability on the net, which allow the customers to introduce themselves to the community, as well as to start a new dialogue b) from sponsorships obtained mainly from private companies: a signal of their interest in the initiative

26. RCM “value” Growth trends Number of private and public institutions which have approached RCM in order to make themselves visible, as well as in order to acquire new know-how Time horizon covered by contracts repeated contracts are signs of customer satisfaction Financial resources obtained a) from contracts: related to space availability on the net, which allow the customers to introduce themselves to the community, as well as to start a new dialogue b) from sponsorships obtained mainly from private companies: a signal of their interest in the initiative

27. RCM “value” Growth trends RCM intuition has made it possible to use public funds in order to realize a service system aimed at citizens (USERS) through the usage of networks by citizens themselves the validity of such services has allowed to attract private subjects thereby creating a fund raising system on the market key for widing both the structure and the range of services thereby making more interesting and complete the DEVELOPMENTDEVELOPMENT

28. CNs “value” Growth in diffused learning Thanks to the network the local community reinforces its identity and opens up to a global communication By experimenting the usage of the network one learns that: a) the net helps in communicating, discussing, working (together), getting to know the town, implementing E_mail and discussion groups b) the net (internet) is the largest library and the largest hypertextual WEB multimedial museum