How to stimulate development of the mobile service and application market in New Member States especially in a context of SME developers and suppliers? presentation of intermediate results of the SIMS project which is being executed within The 6th RTD Framework Programme of the EC Adam Turowiec Partner, Business Development Director University of Poznań Institute of Communication and Information Technologies Ltd. Dept. of Applied Informatics IST Training Day Tallinn, Dec. 9, 2005

Vilnius, October 2005 ©2005 The Sims Project Support and promotion of innovation among small and medium enterprises from the sector of Mobile Applications and Services (MSA) through facilitating access to information and knowledge which these companies need SIMS is SSA project (Specific Support Action) executed in frames of 6PR/IST Jul 2004 – Jun 2006 What are we aiming at?

Vilnius, October 2005 ©2005 The Sims Project 1 Norcontel (Ireland) Ltd. Ireland (co-ordinator) 2Schema Associates Ltd. UK 3Institut Cerdà Spain 4Consafe Infotech AB Sweden 5ITTI Ltd. Poland 6Zenterio AB Sweden Consortium

Vilnius, October 2005 ©2005 The Sims Project MSA Market -evolution of the business models -increasing sophistication of the business interactions and environment -new players – content aggregators, infrastructure brokers, payment agents, etc. -changing roles -importance and position of a mobile operator -mobility of computing / / communications power – it is becoming ubiquitous

Vilnius, October 2005 ©2005 The Sims Project mobile computing is becoming ubiquitous... MSA Market

Vilnius, October 2005 ©2005 The Sims Project n Rising attractiveness n Revenue from mobile „entertainment” services (prognosis 2002 – 2006) u games 1000%, gambling 7200%, u multimedia 888%, LBS 4200% Market for „entertainment” services MSA Market source: Schema Ass. source: Analysis revenue from mobile services w 2008 r.

Vilnius, October 2005 ©2005 The Sims Project n market dimension: u MSA Entertainment/Consumer sector alone estimated at €8bn in 2006 (western Europe only, excluding NMS) u Example forcast: 120m smartphones / year 2009 u Corporate sector potential enormous u Need for competitive EU producers to profit from this market n strategic dimension: u Key area to establish competitive advantage for EU u Supports development of ambient intelligence u Need for competitive EU industry with global influence n small and medium enterprises (MSA-SMEs) are the foundation for this industry Need for SIMS

Vilnius, October 2005 ©2005 The Sims Project n existing industry weaknesses: u MSA-SMEs’ ability to innovate: F MSA-SMEs are typically very small companies F Computer Weekly: only 40 European SW companies with revenues > €60m F Continuous innovation is a challenge for all SMEs F MSA-SMEs have significant technological and market challenges F Especially so in the evolution to 3G and beyond u market structure: F ‘castles and cottages’ – powerful buyers, weak producers n addressing the innovation challenge needs: u coherent support of MSA-SME innovation u many innovation challenges and opportunities involve knowledge supply, delivery channels and usage demand Need for SIMS

Vilnius, October 2005 ©2005 The Sims Project Innovation knowledge supply & demand

Vilnius, October 2005 ©2005 The Sims Project n to provide the potential knowledge suppliers with intelligence and recommendations on MSA-SME needs and expectations (Supply) n to promote awareness among the MSA-SMEs of innovation challenges and of outsourcing opportunities (Demand) n to provide channel companies with an understanding of opportunities that will arise (Channels) n to make focused recommendations related to FP6 as a channel for the SMEs to boost their capacity for innovation n to identify a set of substantial innovation challenges that will arise for MSA-SMEs as the 3G era takes off n to inform a wide range of stakeholders about the project’s recommendations and results n to raise the sector’s awareness of the issues SIMS addresses Project’s objectives

Vilnius, October 2005 ©2005 The Sims Project SIMS creates opportunities Benefits for MSA Developers and Channels: n Networking: u Networking opportunities with peers u Knowledge about partners/competitors/suppliers n Strategic: u Identification of business opportunities / challenges u Re-evaluate own position in value chain n FP6/7 opportunities: u Finding possible partners u Accessing previous results u Influence coming calls and procedures

Vilnius, October 2005 ©2005 The Sims Project n SIMS website n report describing the current situation on the MSA market n database containing information on companies and organizations interesting for the project n Innovation Assessment Tool n report summarising market research conducted across six European markets among MSA-SMEs and branch associations n three reports depicting challenges, opportunities and recommendations for MSA Developers, Sources and On-line Channels What has already been done?

Vilnius, October 2005 ©2005 The Sims Project Thank you!