Paris, 9-10 November 2006 Challenges for SMEs in the new economy A research perspective Cristina Martinez Information Society and Media European Commission

Paris, 9-10 November 2006 eBusiness and SMEs EU is interested in European SMEs –Statistically at the heart of our economy (23 million across EU25, >90% are micro enterprises) –But facing particular difficulties in integrating new technologies and re-organising business processes

Paris, 9-10 November 2006 Why is research interested in SMEs? Encouraging entrepreneurship is key to –creating jobs –improving competitiveness –economic growth –innovation (high-tech SMEs!) > meeting Lisbon objectives

Paris, 9-10 November 2006 Markets Figures and Consolidation Firms connected in the EU: 91% –Intra-company eBusiness: 33.5 % from which 30% only are SME –Inter-company eBusiness : 15 % Of all EU-15 firms –10 % use supplier integration systems –9.3 % integrate with customers >eBusiness applications are rather the exception than the norm on the demand side >the market is unstable and rapidly evolving on the supply side (source Eurostat)

Paris, 9-10 November 2006 Concerns on the Software Market Uncertainty about stability of the products and market evolution Maintenance and product upgrade concerns Proprietary vs open products R&D, training investments Interoperability problems Strategic choices to be made!

Paris, 9-10 November 2006 SME Global Challenges European business environments are very specific and complex The portion of SMEs is significantly greater in Europe than in USA Change drivers are getting more complicated European Competitiveness Report 2003

Paris, 9-10 November 2006 SME Local Challenges European SMEs have to demonstrate: –Capability to provide global presence –Capability to ensure suitable critical mass and productions volumes –Ability to improve constantly productivity and innovation levels  Pressure on European SMEs, to comply with the new rules of global competition  Need for dynamic business networking  Need for adapted European research

Paris, 9-10 November 2006 A few Research Perspectives Examples of new, primitive collaborative business models in the European market Research projects create foundations, mechanisms and ICT services and tools for an advanced collaborative and network-based industry society in Europe But SMEs need additional policy support to facilitate these new types of collaborations / partnerships within European SMEs and Professionals

Paris, 9-10 November 2006 Our Future Commitments Develop ICT capacities in businesses (SMEs) Articulate research and policy Promote continuously projects results Optimize EU resources (future orientations of FP7, CIP, SF) Create synergies at European, Member State and regional level Promote new forms of innovation for SMEs Develop policy actions to engage the widest spectrum of stakeholders Continue the debate > Addressing primarily the needs of SMEs

Paris, 9-10 November 2006 References and links eBusiness (ICT for Enterprise Networking) web site on Cordis (EU research Portal): eBusiness portal on Europa: eBusiness activities of Enterprise Directorate-General: I2010 web site: eBusiness Watch: Research Framework Programme 6 & FP7: The IST programme: European Commission, The 2005 Report on ICT for Enterprise Networking. ftp://ftp.cordis.europa.eu/pub/ist/docs/directorate_d/ebusiness/2005-ict-report_en.pdf Enterprise Interoperability Research Roadmap ftp://ftp.cordis.europa.eu/pub/ist/docs/directorate_d/ebusiness/2005-ict-ent-net/ei.htm Eurostat, Community Survey on ICT usage & e-commerce in enterpriese 2005 Eurostat, Community survey on ICT usage, EU 15, 2004 Future markets for Enterprise Interoperability: Some issues for consideration, Man-Sze Li, 2006 Prelude project Presentation, EDEN Seminar, Pr. J. Pappienmi, 2004 New Organisational Working Concepts for European SMEs’ Competitiveness, Report on the Workshop, 11 may 2006 European Competitiveness Report 2003