1. Digital Business Ecosystems Workshop Brussels, 18 May 2005 Bernard Barani Directorate Attaché DG INFSO-D European Commission

2. Lisbon 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

3. ICT in Figures 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

4. Some Challenges and 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

5. 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

6. Amount of data accessed will explode to 1.075 Zettabytes (10 18 ) 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 Industrial Automobile Mobile Entertainment ANY DATA Seamlessly communicate exploding amount of data on demand, to support people and business processes Ever growing complexity

7. Increased complexity in Business Networking

8. Vulnerability and Privacy Increased connectivity, diversity of devices, global resource sharing and richer applications increase complexity, amplifying the vulnerability of the network and escalating the privacy concerns.Increased connectivity, diversity of devices, global resource sharing and richer applications increase complexity, amplifying the vulnerability of the network and escalating the privacy concerns. –150 Zombies a week –60% of all e-mail is spam –80% of all PCs infested with malware 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

9. 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 Ecosystem concept

10. 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 Actors ICT Organisations  System integrators  Service providers  Software component developers  Open source communities  Open systems developers  Enabling these organisations to keep and preserve their knowledge and the possibility to develop/integrate ICT-based applications

11. Regions  From traditional rural economy to e-economy  Connectivity  high-speed fibre-optic telecom network; wireless in areas where cable is uneconomic  Digital literacy  ICT-enabled social and entrepreneurial activities  Promoting regional economic growth, competitiveness and employment  Rejuvenating industrial areas through adoption of distributed, networked and open systems  Networking of SMEs and experimenting with new services and new business models  Synergies with the Structural Funds Key Actors

12. ATHENA INTEROP VE-FORUM No-Rest DBE Legal-IST CrossWork ECOLEAD Mosquito MyCarEvent MyTreasury Co-DesNet ILIPT Spider-Win TrustCoM V-CES VERITASXBRL in Europe SATINE Networked Businesses, the IST picture

13. ATHENA INTEROP VE-FORUM No-Rest DBE Legal-IST CrossWork ECOLEAD Mosquito MyCarEvent MyTreasury Co-DesNet ILIPT Spider-Win TrustCoM V-CES VERITASXBRL in Europe SATINE Enterprise Interoperability Frameworks, reference architectures Interoperability Infrastructure Enterprise Modelling Service-oriented architecture Trust management Contract management Digital Ecosystems Complex systems theory Formal languages Business models Policy and growth models Knowledge Sharing Product Lifecycle Business 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 picture

14.  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 systems  Support of spontaneous composition, sharing distribution of business solutions and knowledge  IST in FP7  Technology Pillar “Software, Grids, security and dependability”  Application Pole “ICT supporting business and industry”  New forms of dynamic networked co-operative business processes, digital ecosystems  i2010  Take-up of ICT  an integrated policy on e-business giving special attention to SMEs Looking Ahead

15. ICT for Networked Business FP6 call 5 Key Objectives Software solutions adaptable to the needs of local/regional SMEs, supporting organisational networking and process integration Distributed collaborative ambient intelligence-based network-oriented systems for efficient, effective and secure product and service creation and delivery Focus Digital business ecosystems for SMEs open-source distributed self-adaptive environment and models enabling SMEs to cooperate for design, development of flexible and adaptable components interoperable with proprietary systems Support of spontaneous composition, sharing distribution of business solutions and knowledge Extended products and services decentralised architectures ; new approaches to business processes Horizontal actions IPR and legal issues raised by os, networked and collaborative paradigms 46 MEuro

16. Roadmap to FP7 - 2005 7 June Council - Orientation debate 21 SeptEC proposal on SP and RfP 11 OctCouncil - views on SP and RFP 23 NovEC proposal under Art 169/171 28/29 Nov Council - Orientation debate on SP and RFP 12-15 DecEPFirst reading on FP

17. Feb/Mar Council - Common position on FP EP First reading on RfP AprilCommon position on RfP May/JuneEP - Second reading FP, opinion SP, second reading RfP JuneCouncil adoption of FP + RfP July Council & EP - Adoption FP & RfP JulyCouncil - Adoption of SPs OctCommission adoption WP Nov Publication of the first call Roadmap to FP7 - 2006

18. Seeing Old Things in New Ways

20. 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 IST in Figures ( II)

21. A 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, reconfiguration, heterogeneous environments are becoming 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 Networks Wired, Issue 12.08 - August 2004Issue 12.08