building national and regional ict brands building national and regional ict brands how to build a...
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Building National and Regional Building National and Regional ICT BrandsICT Brands
How to Build a Successful eCommerce Strategy – Lessons from Ireland
Presentation by:
Adrian Devitt Forfás
02 December 2002
Role of ForfásRole of Forfás Advisory Board for Industrial and Enterprise Development and
Science, Technology and Innovation Advises Minister for Enterprise, Trade and Employment on the
development of state policies to stimulate enterprise and employment
Comprehensive view of Industrial Policy
Images of IrelandImages of Ireland
OLD “Poorest of the Rich” – The Economist (1986) Characterised by high levels of unemployment
and outward migration
NEW The Celtic Tiger Silicon Isle Fiber Hub of Europe
Where Ireland has come from.Where Ireland has come from.Irish GDP per Capita as a % of EU Average for 1960-99 (EU = 100)Irish GDP per Capita as a % of EU Average for 1960-99 (EU = 100)
60
80
100
120
140
1960 1973 1986 1999
Ireland UK
How to Build a Successful eCommerce Strategy How to Build a Successful eCommerce Strategy – Lessons from Ireland– Lessons from Ireland
Acceptance of the Importance of the ICT Sector to Future Economic Development
Establish where you are now: eBusiness eGovernment Information Society
Going Forward Develop Sectoral Strategies Promote a Positive eBusiness Environment
Acceptance of the Importance Acceptance of the Importance of the ICT Sector to Future of the ICT Sector to Future
Economic DevelopmentEconomic Development
GDP growth 9.3% p.a. over 1995-2001 Advanced/knowledge-intensive sectors:
Contributed 45% of annual growth Account for 25% of GDP Contribute c. 65% of exports
Almost a third of the PC’s sold in Europe come from Ireland ICT Trade Surplus 9% of GDP
Growing proportion of software distributed digitally Development as world e-Business centre further evolution of
development process
Knowledge Economy Driving Growth iKnowledge Economy Driving Growth in n Ireland - NowIreland - Now
The Future of ICT…The Future of ICT…eCommerce Continues to GroweCommerce Continues to Grow
IT and communications sectors of the world economy are forecasted to grow at annual rates of 30-40% p.a. over the next decade, or ten times the rate of the rest of the economy.
In spite of the downturn, B2C ecommerce continues to grow at a 39% CAGR and B2B ecommerce continues to grow at a 47% CAGR.
Source: eMarketer aggregation from IDC, Forrester and Jupiter
$0.0
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
$3,000.0
2000 2001 2002 2003P 2004P
B2B Growth ($ in Billions) B2C Growth
($ in Billions)
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
2000 2001 2002 2003P 2004P
The Future of ICT…The Future of ICT…U.S. Bandwidth Demand Growth % U.S. Bandwidth Demand Growth %
30 33 3542
50
6270
79
90
40
55
0102030405060708090
100
'96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
Source: BCG McKinsey/JP Morgan
Importance of ICT LeadershipImportance of ICT LeadershipGoing ForwardGoing Forward
Potential to accelerate economic development by:
1. Developing business service activities for next generation Internet infrastructure, applications and services
2. Spawning ground for software and services companies producing media and broadband products and services
3. Enhancing attractiveness as R&D center
4. Enhancing opportunity for regional development
5. Creating an Internet literate population
6. Creating an image of Ireland as world economic and technology leader
Importance of ICT Leadership cont’dImportance of ICT Leadership cont’d
Potential to accelerate business development: Innovation: Active e-commerce users on average report twice
the proportion of new products and of improved products in sales
Market Introductions: Use of e-commerce related to doubling of sales of products new to market
Market Share & Access to New Customers: Innovators with successful new product launches twice as likely to be e-commerce users
Skills: e-Commerce users associated with 20% or more employees at degree level, compared with less than 10% for non-ecommerce users
Source: Electronic Commerce and Business Change, ONS UK, June 2002
Importance of ICT Leadership cont’dImportance of ICT Leadership cont’d
Vast Improvement in Citizen Services
Health Care Education and Training Enhanced Family Life through Workplace Flexibility Enhanced Delivery of Government Services Lifeline for those with Disabilities Better dissemination of Culture and Entertainment
Establish where you are now: Establish where you are now:
Three mutually reinforcing pillars,Three mutually reinforcing pillars,
1.1. eBusinesseBusiness
2.2. eGovernmenteGovernment
3.3. Information SocietyInformation Society
1.1. eBusinesseBusinessIreland - Existing Centre for ICT IndustryIreland - Existing Centre for ICT Industry
300+ major electronics companies
80,000+ employed: equipment/software/services
1/3 of all exports
Ireland: world’s largest exporter of software products 40% of Europe's PC packaged software market 60% of Europe's business application software
ICT Companies Based in IrelandICT Companies Based in Ireland
EMC Dell DoubleclickAndersen Microsoft Iona TechnologiesNovell Trintech SmartforceAOL Baltimore ICLHP Bid.Com VikingeTrade Enba EricssonSiebel Informix NortelIntel EDS AccentureSun IBM HP
eBusiness Enterprise CreationeBusiness Enterprise Creation
Ireland was the best represented of the European case study countries in the Deloitte & Touche Technology Fast 500 in 2001, with 10 listings per 1m population (i.e. 38) compared with 2.5 for the second-ranked UK;
Ireland was the best represented of the European case study countries in the Tornado 100 listing of European and Israeli top high-tech companies, with 1.3 listings per 1 million population compared with 1.0 listings for the second-ranked Sweden;
Ireland has more NASDAQ listings per head of population than the other case study countries (excluding the US).
Source: Forfas Research
eBusiness Foreign Direct Investment (FDI)eBusiness Foreign Direct Investment (FDI)
eBusiness Adoption by Ireland-based eBusiness Adoption by Ireland-based “Existing” Enterprise”“Existing” Enterprise”
2000 2001 2002All Respondents/ All Respondents with > 1 PC
% of Enterprise % of Enterprise % of Enterprise
Networked PCs 69% 72% 74%
Internet Access 69% 81% 84%
Own Website 34% 45% 55%
All Respondents with Internet
Access
Narrowband Connection 69% 53% 40%
ISDN Connection 21% 38% 47%
Dedicated Leased Line 8% 6% 9%
Cable 0% 1% 1%
Source: Enterprise Ireland
2. eGovernment2. eGovernmentKey Government Initiatives The Revenue Online Service (ROS) which allows for the online
filing and payment (via direct debit mandate) of taxes, and online access to personal account details and historical returns;
The launch of the integrated portal for business access to Government services (i.e., BASIS) in May 2001;
Introduction of an eTender website; Agreement on an eProcurement Strategy, and planned rollout.
3. Information Society3. Information Society
0
12
3
4
56
7
89
10
11
1213
14
S Fin DK UK NL D A B IRL F I E P EL
EIU 2002 IDC 2001 NRI 2001
e-Business development e-Business development Going ForwardGoing Forward
Environment Support Levels Enterprise Development Levels
Taxation & Finance
Legal & RegulatorySecurity &
Trust
Research &Development
NationalInfrastructure
Support Services
Skills
Education
ICT adoption& use Investment in
e-Business Growth in numbers of e-Businesses
Numbers employed
NationalStrategy
E-BusinessMarket Size
E-BusinessExport growth
E-business Development
Number of e-Commercetranscations
Electronic BusinessProcesses
E-Government
Develop Sectoral StrategiesDevelop Sectoral Strategies Existing SectorsExisting Sectors New Emerging SectorsNew Emerging Sectors
Enterprise Development LevelsEnterprise Development Levels
Existing SectorsExisting Sectors
Current StatusCurrent Status
Sector Website % of Sales Achieved
Over Internet
1. Pharmaceuticals 68% 2.3%
2. Engineering 55% 0.2%
3. Electronics 76% 0.3%
4. Consumer Food 44% 0.3%
5. Consumer Products 61% 0.2%
6. InfoComms 94% 1.5%
7. Finance/ Healthcare/ Software 95% 5.6%
8. Digital Media/ eCommerce/ Training 89% 0.4%
9. Total 67% 0.7%
Key Technology TrendsKey Technology Trendsand Strategies Going Forwardand Strategies Going Forward
eBu
sin
ess
evo
luti
on
an
d
bu
sin
ess
ben
efit
Intranet /Web-mail
Web page
Order taking, making
and tracking
eBusiness functionality implemented
Supplier Integration
Full supply chain
integration
INFORM INTERACT TRANSACT INTEGRATE
New Emerging SectorsNew Emerging Sectors
For Example – Digital Content
A Strategy for the Digital Content Strategy in Ireland – Forfas – November 2002. (www.forfas.ie)
Five Key Niches for Ireland e-Learning Games Wireless Services Digital Libraries Non-Media Applications
Promote a Positive eBusiness Promote a Positive eBusiness EnvironmentEnvironment
Key Pillars of SuccessKey Pillars of Success
Strong Enterprise Sector (Indigenous and Overseas)
National eCommerce Strategy
National Partnership
Skilled Labour Force
Competitive Regulatory Framework
High Specification R&D Programmes
Telecommunications
National eCommerce StrategyNational eCommerce Strategy
Single Published Overarching Vision and Strategy (New Connections)
Lead from the Top (eMinister) (Ms. Mary Hanafin, TD)
Dedicated Executive Agency - Information Society Department (Information Society Commission)
Commitment to Investment (Information Society Fund)
Clear and transparent Schedule for implementation (Web Based)
National and International benchmarking of progress (Forfas, eEurope)
National PartnershipNational Partnership
Five national partnership agreements between social partners since 1987 Wage restraint but also consensus on a wide range of
economic and social policy areas - National Competitiveness Council (NCC) Information Society Irish Council for Science, Technology & Innovation
(ICSTI) Expert group on Future Skills Needs (EGFSN) Advisory Committee on Telecommunications
Partnership with representative bodies and within public administration to address business needs
Labour Force: High Skills and FlexibilityLabour Force: High Skills and Flexibility
Schools IT2000 There are at least 56,000 computers in Irish schools
Third Level Creation of 5,500 additional software places in the Universities
Expert Group on Future Skills Needs (€165 in further ICT Education)
Rank highly for the “fit” between its educational system with its high output of third-level graduates in computer science and engineering – and the needs of a competitive economy. (Source: The IMD World Competitiveness Report)
Competitive Regulatory FrameworkCompetitive Regulatory Framework
eCommerce Act 2000 enabling digital signatures
Copyright and Related Rights Act, 2000
Broadcasting Act, 2001
Communications Regulation Act 2002
Pro-competitive approach adopted by regulators
High Specification R&D ProgrammesHigh Specification R&D Programmes
NDP allocation – Government has made provision for the sum of around €2.5 billion in the National Development Plan (2000-2006)
Science Foundation Ireland (SFI) – government established €635m fund over the seven-year period for investment in world-class research in niche technology deemed capable of driving economic competitiveness in the longer term ICT Biotechnology
Media Lab Europe - Digital Hub
TelecommunicationsTelecommunications1. Enhanced International Connectivity1. Enhanced International Connectivity
Forfas and others recommended a significant upgrade of international connectivity
Agreed partnership with Global Crossing in 1999
Direct landing provides 160 Stms plus additional capacity and dark fibre available
Pan-European, pan-America and Asia-pacific connectivity
Two dedicated telehouses & 16 internet data centres
360 networks completed link to Canada in 2001
Global Crossing Ireland and Pan-European Network
International Leased Line Price Basket International Leased Line Price Basket August 2002August 2002
5
10
15
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100000012000001400000160000018000002000000
Ave
rage
Cos
ts (
US
$/P
PP
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Ire
lan
d (
1)
Den
mar
k (2
)
Luxe
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(3)
Nor
way
(4)
Net
herla
nds
(5)
Sw
eden
(6)
Sw
itzer
land
(8)
Fra
nce
(7)
Icel
and
(9)
Bel
gium
(10
)
UK
(13
)
Ital
y (1
1)
Aus
tria
(12
)
OE
CD
Ave
rage
Spa
in (
14)
Por
tuga
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Gre
ece
(16)
OECD International Leased Line Basket - August '02
M1020 64 k 2 M
2. National Connectivity2. National Connectivity
€190m of co-financing funding allocated under National Development Plan 2000- 2006
Objective:
“…to facilitate the benefits of the emerging new digital economy being evenly spread across the Region and to contribute to economic and social cohesion in the Information Society”
Local access infrastructure a priority
Deliver through Regional Assemblies and multiple partnerships
Two-thirds of co-funded targeted at Objective 1 Border, Midlands and West Region (€140 million)
National Fibre Optic NetworkNational Fibre Optic Network
Shannon
Wexford
Waterford
Cork
Arklow
Limerick
Roscrea
Portlaoise
DublinGalway
Lanesboro
Sligo
Ballyshannon
Dundalk
Drogheda
Letterkenny
Buncrana
Kilmore Quay
Ballinesker
Lifford
OptionsTowns Served
Regional Broadband PlanRegional Broadband Plan
Objective – to deliver broadband of 5mBits to homes and substantially greater to Business.
19 Town in Phase I
Key Parts of the Initiative: Building of Fibre Metro Loop around each center Provision of Co-Location space Infrastructure on an open access basis
Over the next 12-18 month 50,000km of networks will be added to the National Stock as part of Phase I
Waterford
Letterkenny
BallinaCarrick-on-Shannon
Monaghan
Castlebar RoscommonCavan
Mullingar
Athlone
Galway
Tullamore
Portlaoise
Kilkenny
Limerick
Clonmel
Carlow
DungarvanCork
Wexford
Youghal, Fermoy,Charleville, Mallow
Tralee, Killarney, Listowel
Ballinasloe, Tuam,
Loughrea, Gort
Westport,
Claremorris
Buncrana, Ballyshannon,Donegal
Dundalk, Drogheda,
Ardee
Carrickmacross
Sligo
Dublin City, Dublin South, Fingal,
Dun Laoghaire/Rathdown
Naas, Newbridge,Kildare, Athy
Arklow, Wicklow
Navan
Portarlington
Longford
Birr, Edenderry
Ennis, ShannonThurles, Nenagh,
Roscrea
Carrick-on-Suir,Tipperary, Cashel
Enniscorthy,New Ross, Gorey
Gweedore
Manorhamilton
Phase One Town in bold
Conclusion: How to Build an eCommerce StrategyConclusion: How to Build an eCommerce Strategy
The Future will be Different; International competition intensifying Recognize the Importance of ICT
Build partnerships – many factors necessary for Success;
Key Learning Points in Ireland Develop policies to the Three key pillars – eBusiness,
eGovernment, and the Information Society There is no single policy solution, however most successful
policy actions are simple ones In leading countries, Government show a willingness to intervene,
e.g., Telecommunications eBusiness complacency does not exist in the leading countries.