the potential of information economy in lithuania and co-operation in the european union association...

The Potential of Information Economy in Lithuania and Co-operation in the European Union

Association “infobalt”, Mr. Džiugas Juknys

The new frontiersThe new frontiers of the European Union of the European Union

2 June 2003, Athens

The ICT market and the state of LithuaniaThe ICT market and the state of Lithuania

Implementing the achievements of Association Infobalt in the state sector under the conditions most favourable for Lithuanian ICT companies:

Developing new services and products;

Implementing the concept of the electronic government and the new telecommunications law of the Republic of Lithuania;

Applying the financial means of the structural funds;

Developing export and two-way business contacts;

Seeking new investments into the ICT business.

The new frontiers of the European Union

Mediation on behalf of members

Establishing the international business contacts: export programmes;

International fairs and forums;

Promoting business (el. conferences), disseminating information and other on-line services;

Assistance to participation in the EU ICT programmes, consultation on the use of the EU structural funds, seminars, etc;

Initiating the projects of ICT business and drawing the Lithuanian ICT companies into the international consortiums;

Representing the interests of the companies belonging to Association Infobalt with respect to legal and other business-related issues;

Informing the Lithuanian and foreign societies and media about the operation of Association Infobalt members.


DevelopmentDevelopment

Increasing the number of association members: new business sectors;

Declaring the interests of Association Infobalt members and assisting in implementing these interests;

New research of the Baltic markets and the international acknowledgement of the results;

Consultation on business provided for the potential partners of the Lithuanian ICT companies and the preparation of export projects.


RepresentationRepresentation

Associating Infobalt as a trade mark of the Baltic region with the trade mark Baltic;

Influence via the international alliances of ICT structures in seeking for establishing the improved conditions for the Lithuanian ICT companies to develop international business;

Participation in the infra-structural and educational projects of the EU ICT programmes (e.g. TELEBALT, Baltic IT cluster and others).


EventsEvents

Infobalt 2003 fair, Conference 2003 and WITFOR 2003 are the means of international co-operation. Targeting and providing information for the Lithuanian and foreign consumers.


Competition by co-operation!Competition by co-operation!

1. Incentivising the export

2. Structural funds – ERDF

3. Innovation projects


The markets to be adopted by Lithuanian The markets to be adopted by Lithuanian ICT companies:ICT companies:

Scandinavian countries

Germany

Latvia

USA

Denmark


The trends of the Lithuanian ICT product The trends of the Lithuanian ICT product export and outsourcing projects:export and outsourcing projects:

EU members

Russia

Byelorussia

Ukraine

USA

Asian countries


Achievements in export and success historyAchievements in export and success history

In 2002 the Lithuanian ICT companies increased the export of product and service by 88 %

7,9 % on total IT sales

2 % on total ICT sales

The export of ICT and electronics sector products reached 300 ml Euros in 2002.

In 2003 the export is forecasted to increase up to 450 – 500 ml Euros

The Lithuanian ICT companies develop new ICT products in conjunction with the world-leading ICT companies such as SAAP, Bently systems, CA, HP and others.

The leader of the ICT export in Lithuania ALNA signed the agreement with Microsoft in May 2003 for licensing the software programme of Alna. Microsoft will be using the software inside its information system.


EU ICT and structural fundsEU ICT and structural funds The development of a company’s institutional structure – management

appraisals, certificates

Acquis communautaire – the adoption of the EU legal context

Implementing the innovative solutions in search of new business niches, export. Operating within the context of eEurope 2005 programme http://europa.eu.int/informationsociety/eeurope/indexen.html

Public service for individuals and business. 20 public services in total: 12 services for individuals and 8 for business corporations which are accurately positioned within the programme eEurope

Active co-operation in business, government and education projects in developing new and modern economy in Lithuania


The agenda of businessThe agenda of business

ICT market in Lithuania

Members of Association Infobalt

State

Society and media

Education and science

International representation and export

Association INFOBALT:Association INFOBALT:



Telecommunications

Sales

Programming service and other services related with IT solutions

Public organisations, universities and colleges

The breakdown of ICT market in Lithuania by interest:The breakdown of ICT market in Lithuania by interest:



Hardware, components and services 150

Computer network 94

Technical and educational software 59

Software, consultation and service 310

Telecommunications 79

Office tools 61

Banking, financial and business technologies 17

Security 25

Other 20

The breakdown of Association Infobalt members by interestThe breakdown of Association Infobalt members by interest



Sales of notebooks in Lithuania, 2002Sales of notebooks in Lithuania, 2002

13,10%

3,40%

46,20%

11,60% 11,30%

5,40%9%

Compaq Fujitsu HP IBM Acer Dell Toshiba

Total, units 7510


Dynamics in notebooks marketDynamics in notebooks market

21003200

7510

17000

2000 m. 2001 m. 2002 m. 2003 m.

Market volume:

2002 – EUR 13 million

2003 – EUR 30 million


NK sales index, reflecting the dynamics of wholesales marketNK sales index, reflecting the dynamics of wholesales market

66,4787,28

113,29143,9

175,56

219,36

274,28

1999 year 2000 year 2001 year 2002 year 2003 year 2004 year 2005 year

EUR (million)


Dynamics in computer sales in Lithuania, unitsDynamics in computer sales in Lithuania, units

50000

75000

120000

145000

2000 year 2001 year 2002 year 2003 year

Items


2002 year Lithuanian ICT market size2002 year Lithuanian ICT market size

Million Euro

300

629

300IT – appr.

Communications – appr.

Communication equipment,other IT services andcomplex solutions – appr.

In total – appr. 1 229 million Euro (appr. 4 240 million Litas).

Note: Data on communication equipment and complex IT solutions market are tentative and approximate.

0,07

34,39

13,89

51,65

Comliet

Bite GSM

Tele 2

Omnitel


The main trends of Lithuanian telecommunication marketThe main trends of Lithuanian telecommunication market


Lithuania manufactures high technology products and services

Potential for applied research is in place

Lithuanian industry uses fundamental technologies:

information technologies

Biotechnologies

laser industry

Nano technologies

Sufficient industry and science concentration

Integration into the EU technological area accelerates and cheapens investments

Prerequisites for R&D progress in Lithuania


Potential fields of Lithuanian ICT industry and science technologies for the next 5 years

Implementation services of traditional hardware (programming).

Programs (PKI, etc.) of e-signature for e-business, e-government and e-education

Development of such systems like Intellect-House, social security, hospital, transport, etc.

Protection of e-accounting and m-accounting systems by e-signature and bio-metric voice and finger-pint technologies.

Development of e-business applications in ERP, SCM and CRM fields.

Development of open source technologies creating business applications.


Potential fields of Lithuanian ICT industry and science technologies for the next 5 years

Electronic sensors for food, security and other industrial sectors of Lithuania.

Laser technologies related to ITT.

Scientific computer applications for biotechnology sector – development of databases and hardware instruments.

Development of multimedia products (applications, encyclopedia, multilingual programs, Internet sites, CDs, DVD, etc.).

Implementation services of traditional hardware (programming).

Programs (PKI, etc.) of e-signature for e-business, e-government and e-education

Development of such systems like Intellect-House, social security, hospital, transport, etc.


ICT Share in Lithuania’s GDP in 2000ICT Share in Lithuania’s GDP in 2000 -- 2015 2015 according INFOBALT Strategyaccording INFOBALT Strategy

5%

1,40%

17,50%

7,70%

2000 2015

Services

Production


INFOBALT AssociationINFOBALT Association

The INFOBALT activities in the ICT frameworks of the European Union serve as a catalyst for the growth of the information society in Lithuania.

Established in 1994.

154 members of Association INFOBALT include:

Lithuanian information technologies, telecommunications and office equipment companies.

Higher education and research institutions and other education institutions.

Public organizations and concultancy firms.


Mission of the Association InfobaltMission of the Association Infobalt

Consolidate, within the framework of the Association, Lithuania-based companies engaged in such fields as the IT, telecommunications, office supplies, and production of electronics to operate jointly.

Seek to ensure favourable conditions for the development of the IST industry with an aim of raising its share in the national GDP to 20%.

Partake and promote joint partnership initiatives together with science, culture and business communities as well as authorities.

Boost the flow of foreign investments to the Lithuanian IST sector.

Enable the Lithuanian IST sector to fulfil its potential on the global markets.

Support education, science and programmes promoting development of the information society.


1. Representation of the members of INFOBALT in Lithuania and abroad;

2. Development of Lithuanian ITT market;

3. Services to the members of INFOBALT;

4. Development of information society (IS) of Lithuania:

Events

IS projects

International activities

Activities of the Association INFOBALTActivities of the Association INFOBALT::


Аssociation INFOBALT takes part or prepares the following Аssociation INFOBALT takes part or prepares the following EU and Lithuanian projectsEU and Lithuanian projects::

Phare BSP I and BSP II of the EU – participation in the European ITT activities.

TELEBALT – promotion of distance learning and work in the Baltic States (2002-2003); development of virtual societies in order to render assistance to small and medium enterprises and organizations in projects of IST EU.


Project on strengthening the copyright in Lithuania with support of Phare EU (2001).

Project on establishment of Information Service Center (ISC) in Visaginas with support of the Government of Lithuania and Phare (from 2002).

International conference “Information Society 2003” and Investors’ League (21 October).

The largest exhibition of information technologies in the Baltic countries, INFOBALT 2003 (22-25 October)

Аssociation INFOBALT takes part or prepares the following EU Аssociation INFOBALT takes part or prepares the following EU and Lithuanian projectsand Lithuanian projects::


EU IST Project TELEBALTEU IST Project TELEBALT

Teleworking as a Tool for Information Society Programme promotion to Baltic States

www.infobalt.lt/telebalt


Mobile phones penetrationMobile phones penetration in the Baltic Statesin the Baltic States (‘Global Mobile’ Data)(‘Global Mobile’ Data)

0

10

20

30

40

50

60

70

80

90

Lithuania Latvia Estonia

Mobilepenetration in2002

Penetrationgrowth comparedwith 2001 3rdquarter


Mobile Mobile industryindustry in Lithuania in Lithuania

Mobile penetration is already higher then fixed line phones

Mobile penetration (over 50 %) is much higher then Internet (26%)

Over 80 % of businesses using mobile services

Usage of mobile data (SMS, GPRS, WAP) increases

Competition in prices contrast between mobile market and fixed line market up to 2003

Difference in mobile market players size direct them to different client groups and stimulate variety in services


Foreign Investment In Lithuanian Mobile MarketForeign Investment In Lithuanian Mobile Market

Owning Company

Company Name Owned Company % Share

DK TDC Mobile international AS

Bite GSM 100%

Sweden Net Com AB Tele 2 100%

Finland Sonera Omnitel 27,5%

Sweden Telia Omnitel 27,5%

US Motorola Omnitel 35%

Private holders Omnitel 10%

Organisation for Economic Co-operation and Development, Centre for Co-operation with Non-members Trade Directorate


Mobile operators promote Information Society: Alliance Window to the Future

In May 2002 Omnitel together with Fixed Telecom company Lietuvos telekomas and two largest Lithuanian banks Vilniaus Bankas and Hansa-LTB launched alliance Langas į Ateitį (Window to the Future) that later was joined by two IT sector leaders – Alna and Sonex.

Main idea: business suport to Information society development in Lithuania

Main goal: in three years to gain European average internet penetration

Main activities: establish 65 public internet access points in 54 settlements in Lithuania


According to the preliminary project citizens will be enabled to spend 1,5 million hours in the Internet

Widely supported by public sector

Close collaboration with the local governmental institutions is practiced while establishing public Internet access points. They grant the public Internet access points with premises, take care of their administration, and cover 50 per cent of a monthly subscription fee, while the alliance installs the Internet connection, donates computers, and provides technical servicing

Mobile operators promote Information Society: Alliance Window to the Future


SWOT analysis of Lithuanian ITindustrySWOT analysis of Lithuanian ITindustry

Human factor suitable for innovative activity and knowledge-based production

Healthy economy, growing most rapidly among the CEE (5-6% for 2001-2005)

Well-developed IT universities producing over 500 specialists in IT and other disciplines annually

Well-trained & low-cost human resources available

Modern telecom infrastructure with a digitalisation ratio of 100% and mobile penetration of 45%

Versatile in English, Russian, German and Polish

Open economy with rule-based system aligned to the EU & WTO – economic stability

StrengthsStrengths


SWOT analysis of Lithuanian ITindustrySWOT analysis of Lithuanian ITindustry

Developed financial institutions & intermediaries

Location between the EU, Nordics, Belarus & Russia.

Capacity to promptly adapt to rapidly changing IT & knowledge based economy

Privatization accomplished; industry re-structured based on comparative advantages

Institutional support to SME development

Well developed IT infrastructure across the region

Sound linkage between academia and industry for development applications

EU and NATO integration to provide large market opportunities for IT-enabled services

StrengthsStrengths


Association INFOBALT,

Vokiečių str. 28/17 – 16, 2001 Vilnius, LITHUANIA

Phone. +370 5 262 26 23, fax +370 5 262 26 29

e-mail: [email protected]

www.infobalt.lt

ContactsContacts

the potential of information economy in lithuania and co-operation in the european union association...

Documents

new frontiers

european union slide

projects of ict business

new services

new business sectors

new investments

lithuanian ict product

ict market