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Digital Business Ecosystems Workshop Bernard Barani Directorate Attaché DG INFSO-D European Commission Brussels, 18 May 2005 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 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 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 Ever growing complexity ANY DEVICE All devices can communicate with and understand one another RFID & Interactive Sensors • 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 Ever growing complexity ANY DATA Seamlessly communicate exploding amount of data on demand, to support people and business processes Amount of data received or transmitted by device (in Petabytes/Day) 1,200,000 1,000,000 800,000 Industrial Automobile • Variety of Data • Driving the need for flexible architectures Entertainment 600,000 Mobile 400,000 200,000 • Amount of data accessed will explode to 1.075 Zettabytes (1018) by 2008 Computers 0 2003 2004 2005 2006 2007 2008 • Driving more complex business relations • Creating opportunity for business transformation Increased complexity in Business Networking 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. Annual losses $20 billion 15 10 – 150 Zombies a week – 60% of all e-mail is spam 5 – 80% of all PCs infested with malware 0 1995 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ‘04 Challenges: Pervasive connectivity will increase vulnerability and privacy concerns,2000 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. Birth and rise of the Digital Business Ecosystem concept • 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 Key Actors SME’s ICT Organisations ICT skills usually from outsiders System integrators Service providers Software component developers Open source communities Open systems developers Providing SMEs with customised ICT applications & services for improving their efficiency (through process and organisational integration) and for extending their business beyond local barriers Enabling these organisations to keep and preserve their knowledge and the possibility to develop/integrate ICT-based applications 19 million enterprises in Europe 99.7% are SMEs, 93% are micro (< 10 employees) Key Actors 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 INTEROP Networked Businesses, the IST picture ATHENA CrossWork No-Rest ECOLEAD TrustCoM Mosquito Co-DesNet ILIPT Spider-Win DBE MyCarEvent Legal-IST MyTreasury SATINE XBRL in Europe VE-FORUM V-CES VERITAS Networked Businesses, the IST picture INTEROP Enterprise Interoperability ATHENA Frameworks, reference architectures CrossWork Product Lifecycle Interoperability Infrastructure Enterprise Modelling No-Rest Service-oriented architecture ECOLEAD TrustCoM Business Networking Mosquito Wireless RF technologies Reference models Knowledge Management Digital Ecosystems DBE Complex systems theory Business models Smart objects identification Trust management Contract management Co-DesNet MyCarEvent Multi-agent systems Virtual Organisations & Breeding Environments ILIPT Real-time monitoring Spider-Win Middleware interfacing Agent-based systems Knowledge discovery V-CES MyTreasury Self-configuring networks Business models Support technologies Operations research Policy and growth models SATINE XBRL in Europe VERITAS Formal languages Legal-IST Knowledge Sharing VE-FORUM Looking Ahead 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 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 46 MEuro 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 Roadmap to FP7 - 2005 7 June 21 Sept 11 Oct 23 Nov 28/29 Nov 12-15 Dec EP Council - Orientation debate EC proposal on SP and RfP Council - views on SP and RFP EC proposal under Art 169/171 Council - Orientation debate on SP and RFP First reading on FP Roadmap to FP7 - 2006 Feb/Mar Council - Common position on FP EP First reading on RfP April Common position on RfP May/June EP - Second reading FP, opinion SP, second reading RfP June Council adoption of FP + RfP July Council & EP - Adoption FP & RfP July Council - Adoption of SPs Oct Commission adoption WP Nov Publication of the first call Seeing Old Things in New Ways IST in Figures (II) 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 A Generic Trend 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. The Darknet and the Future of Content Distribution Peter Biddle, Paul England, Marcus Peinado, and Bryan Willman Microsoft Corporation Ray Ozzie , Groove Networks Wired , Issue 12.08 - August 2004