1. Charlie Watt- Senior Director e-Business Scottish Enterprise World Bank – November 24 th 2003

2. Scotland Total Area 78,000 km² Population 5.1 million Glasgow 3,500 people per km² Highlands 8 people per km²

3. Learning & Skills Improve the operation of the labour market The best start for all young people Narrow unemployment gap Improve demand for high quality in- work training Strategic Context - Smart, Successful Scotland Global Connections Greater digital connectivity Increased global involvement A globally attractive location More people choosing to live and work in Scotland Growing Business Greater entrepreneurial dynamism and creativity More e-business Increased commercialisation of research and innovation Global success in key sectors

4. “help the people and businesses of Scotland succeed. In doing so, we aim to build a world class economy” –new businesses –existing businesses –knowledge and skills –global presence qcirca £450m government funding per year qOver 90% of Businesses in Scotland q1,500 staff spread across Scotland Scottish Enterprise

5. “ If you don’t have competitive advantage – don’t compete” – Jack Walsh Customer service Cost base Channels Market Knowledge Skills New markets CRM E-procurement Web presence Search engines, CRM E-learning Purpose- To accelerate the competitive capability of companies in Scotland through the use of e-business applications E-business = competitive advantage

6. Patterns of e-business adoption Time % change 2003 Aware Connect Publish Interact Transform “ICT”p-business??

7. Time Business benefit 2003 Affordable apps Bandwidth SE Channels SE ‘Products’ Basic applications  E-mail  Web site Advanced applications  CRM  E-procurement  E-learning

8. Examples of companies

9. Classic ‘buyer advantage’?

10. International Benchmarking 2002 Scotland v. other nations  On average Scotland ranks first overall for businesses using e-business technologies - a dramatic improvement on 2001;  second in ownership of websites;  third on the average value of online sales, and on businesses ordering supplies online  Scotland's ranking improved by an average rating of 1.6 v 2001 (only Japan improved more)

11. What are organisations doing with e-business? They are using the Internet to support key business practices… Sample: 73% of organisations asked in 2003

12. Turnover from website (through sales, orders or business resulting from the website) by businesses that have/use a website (44%) Sample: 44% of organisations responded in 2003

13. 2003 / 04 - Improve the competitive capability of companies by accelerating their adoption of e-business from publish to interact and interact to transform Software & E-business Supply Financial Services High Tech Creative Industries Real Estate, Renting & Business Activities 11% FAST ADOPTERS Textiles Creative Industries Fisheries Real Estate, Renting & Business Activities Forestry 52% NORMAL ADOPTERS Construction Fisheries Wholesale High Tech Transport, Post & Telecommunications 17% SECOND MOVERS Real Estate, Renting & Business Activities Agriculture Food & Drink Tourism (excl. retail) Transport, Post & Telecommunications 20% NOT CONVINCED Adoption Group Analysis Source: Scottish e-Business Survey 2002

14. DemandSupply Environment Market Research eBusiness Strategy To accelerate the competitive capability of companies in Scotland through the use of e-Business Applications.

15. Progress to date (1) Partly or fully Established Demand Side Supply Side Marconi Demand Indication BT ADSL Provision (1) Population Coverage Estimation Business Presence (2) (2) Under Development Other Provision Future Land & Property Development Back Haul Opportunities (3) (3) Subject to investigation Geographic Intelligence to support Broadband Market Intervention Initiatives in Scotland K - map Scottish Enterprise KMap Broadband Application

21. Specific Broadband Development Areas  TTE  ATLAS -Bus Park Network  Scottish Borders  Wireless Communities  Powerline Trial  B’band Website  Demonstration Centres  Incentive Scheme Broadband Programme More effective wholesale market (IP Transit) Access to “advanced broadband” in key locations Innovative rural supply solutions Awareness raising and demand stimulation Research and development on new technologies Increased coverage of mass market broadband  Wireless Excellence Network  Aggregation Schemes  Demand Analysis  Marketing SUPPLY DEMAND

22. Scottish Borders Rural Area Network (RAN)

24. The e-Business Workshops / business advisors Workshop Series ‘Making the Connection’ ‘Transforming your site’ ‘Trading Electronically’ ‘Transforming your business’ ‘Broadband’ Levels of adoption 2345 ‘Connect’‘Publish’‘Interact’‘Transform’ 1 Aware 5000 Delegates High Level of customer satisfaction 3.6 v 4.0 Target 1425 for higher levels of adoption – 2003/04 ESF funding secured for 2003 Best practice example in: ‘Benchmarking National and Regional E Business Policies’ DG Enterprise, February 2002

25. Electronic Payment Tool What are on-line payments Enter your business model -System recommends optimum solution -Names of providers -Costs

26. On-line Factsheets – specialist knowledge 38 Factsheets 12,000 downloads per month Easy to monitor Easy to track Return on Investment Reach broad business population Easy to keep current

27. Seminars and Workshops – Managed on-line Workshops 5 Topics Inspire companies Decision makers Seminars 20 Topics Inform companies Project managers

28. Case Studies Over 200 case studies Search by sector or free text Reach broad business population Monitor use Highly motivational and cost effective

29. On-line timesheets 45 advisers work with: Across our network 250 clients In virtual teams Peripatetic Aggregate invoices Efficiency Monitor use Where time spent

32. Software and E-Business Supply Industry Key market conditions  1400 indigenous sme’s, 17500 jobs, £2.6bn turnover  High ‘birth rate’ ; fragile  High tech industry in its own right and an enabler for other industries  An essential contributor to help business become more competitive. Critical success factors  Ensuring sales and marketing skills and customer focus  Focus on future technologies and exploiting the potential of Scotland’s universities. £450m investment in Intermediary Technology Institutes

33. Strategic Priorities Develop a world class software and e-business supply industry Foster collaboration between larger players and small innovative suppliers Create scheme to lessen risk in e-bus sales from small, new suppliers Alleviate shortage of women in software sector Improve sales and marketing skills Generate trust between supplier community and business users Help suppliers adopt a global perspective Supply quality transformational/interactive products to the Scottish market Focus on cos. capable of developing and delivering transformational/ interactive applications

34. Stac Layers – Three Stage Model Level 1 Entry Level Level 2 Interim Level Level 3 Membership Globally positioned Marketing and PR Access to other Level 1 members Who’s who in Scotland? Certification Knowledge Bank Collaborative space & infrastructure ABTA Ideas Exchange Stac participation Access to further Resources. Membership of Specialist interest groups Universities Intermediary Technology Institutes

37. Lessons learnt Convey benefits not technology Leverage resources where possible Foster collaboration with banks, trade bodies etc Measure attitudes not just usage Customer feedback Engage software industry  Encourage skills in marketing and sales  Develop strategic business approach Political will