1. Ecosistemi Digitali Attività della Commissione Europea per le SME contro il digital divide Francesco Nachira European Commission DG Information Society and Media http://www.digital-ecosystems.org Biella, 15 - 17 Marzo 2007 Reti Locali - Sviluppo Globale Idee per il Distretto Digitale

2. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 2 of 27 To support Economy: Activate SMEs 0.00.51.01.52.02.53.03.54.0 Millions IT ES FR DE UK PL CZ PT HU NL BE SE AT DK FI SI IE LT LV CY SK EE LU European entreprises by size (totals), 2003 Micro entreprisesSmall entreprisesMedium entreprises EU-25:99.7% of SMEs 91.2% micro enterprises (1 - 9 employees) 17 million of SMEs

3. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 3 of 27 A single SME has limited resources and difficulties to: To access global value chains To access knowledge To access specific services (e.g. legal) To adopt new technologies (ICT) To adopt new and distributed business models and work organisations Difficulties of SMEs

4. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 4 of 27 SMEs in a Dynamic knowledge-based globally-networked economy Growth Node Business EcosystemIndustrial District Virtual cluster How to reach the critical mass of resources ? How to cope with the increased complexity ?

5. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 5 of 27 New forms of economic structures Peculiarities of the EU economical structure Dimensions of enterprises (SMEs vs. LE) Historical presence of clusters with diffused tacit unstructured knowledge, skills and infrastructure Cultural diversity (model of business, approaches, practices, …) Economy as Business ecosystems (US model vs. EU model) “… the actual slowly changing network of organizations will be replaced by more fluid, amorphous and often transitory structures based in alliances, partnership and collaborations”... “…building a community that share business, knowledge and infrastructure, develop creativity” Turn peculiarities in competitive advantage

6. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 6 of 27 Empirical observations on emerging business phenomena based on collective creativity and participation Complex products/services Produced by large structured corporations Produced by informal amorphous networks KnowledgeOwned and protectedShared InnovationProduced by an entityProduced collectively Final userIs passive (“the king”)Interested to participate Organisational structure Based on instructions and structured organisations Self-organised networks MotivationIncentives, personal advantages Self-esteem, sense of responsibiliy, reputation Advances in ISToriginated by technologyOriginated by business and people networking Examples:Large Enterprises move from outsourcing to crowdsourcing Wikipedia, Linux, eBay, Youtube, last.fm, … People/organisations become interconnected, build communities that share objectives, activities, knowledge, Opportunities for SMEs and individuals (also social recognition) by developing capacity and creativity

7. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 7 of 27 Turn Peculiarities into Competitive Advantages Shift of paradigm Engineers: “problem solving” approach: isolate problem, identify variables, make a plan … Economy as machine Complexity: Ecosystemic approach: Economy as ecosystem From building a machine to nutruring a garden From “engineer approach” to “ecosystem approach” From making a plan to creating the conditions Processes: Interpretation - Partecipation - Collaboration - Harmonis. of interests Plurality and richness of: economic actors, subjects, ideas, interactions, models, aggregation

8. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 8 of 27 The Digital Ecosystem, the carrier for services and ideas enabling their networking Courtesy from DBE project Who owns it? What does it contain? What‘s the destination? Which is the revenue model ? Owner Serial-ID Check-ID Country ISO Ident

9. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 9 of 27 The economic structures change the infrastructures too Hamburg, Harbour in 1900Hamburg, Harbour in 2006 Which transport and aggregation infrastructure for services and knowledge ? Courtesy from DBE project

10. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 10 of 27 SMEs Stages in ICT adoption

11. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 11 of 27 Which principles for an ICT enabling Infrastructure, for a “nervous system” supporting the Economic Ecosystems ? Initial Principles reuse of global solutions which adapt to a local needs ability to evolve, differentiate and self-organise scalability and robustness no single point of failure or control not be dependent upon any single instance or actor equal opportunity of access and partecipation for all A Common Good

12. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 12 of 27 The Business Ecosystem Create a climate conductive to investments, innovation and enterpreneurship: the conditions for –Attracting / developing business and direct investments –Attracting / developing enterprises –Attracting / developing skilled and qualified workforce Service & technical Infrastructure Business & financial conditions Human capital, knowledge and practices Governance regulations & industrial policy How to create a favourable environment for business and people: a socio-economic eco- system ? Which industrial policy ? Which infrastructure ? (material / immaterial )

13. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 13 of 27 The digital ecosystem How to provide business networking services, adapted to local needs ? How to transfer and disseminate knowledge ? How to enable synergies and business networking ? How to represent services, but also micro- and macro-economy (from semantic of web to semantic of economy) ? Computing and telecom. Infrastructure Diffused + Digitalised knowledge affordable ICT services ICT service- knowledge- oriented architecture How to create ICT infrastructure that is a nervous system for business and knowledge ? Integrated scalable approach intermediate results

14. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 14 of 27 ICTs catalyse improve New organizational and business models; knowledge & skills Policy supports The Innovation Ecosystems: An integrated approach for development “Digital Ecosystem Infrastructure” Derivative work from P.Dini - London School of Economics to reduce the digital divides - among regions -among SME and LE to foster local economic growth and innovation; new forms of dynamic business interactions, enabled by new paradigms and digital ecosystem technologies; embedded knowledge enabled by capacity building instruments Growth Competitiveness, market & internal efficiency Cooperation & innovation networks improve lead to encourage provide resources Ecosystem- -oriented infrastructure make viable shape & foster supports support Bio-Paradigms enhances

15. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 15 of 27 The range of possible behaviours of a system is determined by its structure. This structure specifies its realms of interaction. [Maturana, Varela] The cyberspace [or a digital ecosystem] has an architecture, its code - the software and hardware that defines how it is — is its architecture. That architecture embeds certain principles; defines what’s possible in a digital ecosystem. And these terms and possibilities affect innovation in the cyberspace. Some architectures invite innovation, others chill it. [Lessig] An Ecosystem-Oriented Architecture can support and facilitate the emergent phenomena (connection)

16. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 16 of 27 Like a brain, a digital ecosystem has to A) representing / formalise B) store C) retrieve… …. What software components, applications, services, … business processes and models, revenue models, laws … trust relationships, reputation …. skills, talents, ideas … Digital ecosystem: A Collective Brain for the Formalisation and Distribution of Services and Knowledge

17. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 17 of 27 [A] Represent / Encode ANY USEFUL REPRESENTATION, EXPRESSED IN A LANGUAGE (formal or natural), DIGITISED AND LAUNCHED ON THE NET, WHICH CAN BE PROCESSED (by computers and/or humans) Representation of: service biz model rev. model comp. model ref. to Ontology …. According to the long-term objective to provide a representation of the economy It is [will be] represented

18. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 18 of 27 [B] Store According to the principle: no single point of control or failure (technol.-organis.) information is fully distributed, like the “holographic” memory of the the brain technologies and free open source implementations developed in FP5 and FP6 projects,

19. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 19 of 27 [C] Retrieval vs. Migration Taking advantage of natural science Concepts of habitat, migration, evolution, digital species … Spontaneous networking and self-organisation

20. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 20 of 27 Exploit creativity in: how, when and where to consume the entertainment Communication services: -Audio, -Video -Data - Voice Digital media convergence Communication + Media ----------------------------- = Innovation Ecosystem Exploit creativity in: participating in the economic process - Digital Business Ecosystems - Semantic Web - Web 2.0 Ecosystem Convergence Digital ecosystems + Business Ecosystems Convergence

21. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 21 of 27 Language Processes: Semantic Web and Web 2.0 The representation of the world is an old dream, Some obstacles: - which formalisms, languages? - an interpretation of the reality is subjective, how we can have a consensual represantion? - which are the resources for populating the ecosystem?

22. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 22 of 27 Taxonomies and Folksonomies collective construction of shared semantic leading to recommendations and self-organisation MUSIC Last.fm - the users classify the kind of music based on their perceptions - the system track the music played - the system groups users in communities + it creates on the fly customised radio station you like + allows contacts among members of communities eCOMMERCE eBay - buyers provide a feedback on the reputation of the sellers + reputation system is used to build trust and to find the most reliable sellers BOOKS Amazon - it tracks the books acquired and the user evaluations + suggests books you may like

23. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 23 of 27 Business Ecosystem + Digital Ecosystem ICT (digital ecosystem) Economy (business ecosystem) = Innovation ecosystem Collectively built a shared representation of the economy Issue of Governance Social networking

24. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 24 of 27 Cluster of EU Digital Ecosystems FP6 Projects

25. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 25 of 27 Digital Ecosystem pilot regions (October 2006) > 30 M€ projects funded by EC in FP6 Brazil, India + Int’l contacts Pilots Regions Future Pilots

26. Francesco Nachira European Commission DG Information Society and Media Unit D4 : Networked Enterprises and RFID Reti locali, sviluppo globale Biella 15-17 Marzo 2007 # 26 of 27 More info on http://www.digital-ecosystems.org http://www.digital-ecosystems.org