Charlie Watt- Senior Director e-Business
Scottish Enterprise
World Bank – November 24th 2003
Scotland
Population 5.1 million
Highlands
8 people per km²
Total Area 78,000 km²
Glasgow
3,500 people per km²
Strategic Context - Smart, Successful Scotland
Global Connections
•
•
•
•
Greater digital connectivity
Increased global involvement
A globally attractive location
More people choosing to live and
work in Scotland
Growing Business
Learning & Skills
• Greater entrepreneurial
dynamism and creativity
• More e-business
• Increased commercialisation of
research and innovation
• Global success in key sectors
• Improve the operation of the labour
market
• The best start for all young people
• Narrow unemployment gap
• Improve demand for high quality inwork training
Scottish Enterprise
“help the people and businesses of Scotland succeed.
In doing so, we aim to build a world class economy”
– new businesses
– existing businesses
– knowledge and skills
– global presence
 circa £450m government funding per year
 Over 90% of Businesses in Scotland
 1,500 staff spread across Scotland
E-business = competitive advantage
“If you don’t have competitive advantage – don’t compete” – Jack Walsh






Customer service
Cost base
Channels
Market Knowledge
Skills
New markets





CRM
E-procurement
Web presence
Search engines, CRM
E-learning
Purpose- To accelerate the competitive capability of companies in
Scotland through the use of e-business applications
Patterns of e-business adoption
“ICT”
p-business??
% change
2003
Aware
Publish
Interact
Transform
Connect
Time
Basic applications
Advanced applications
E-mail
CRM
Web site
E-procurement
Business benefit
2003
E-learning
•Affordable apps
•Bandwidth
•SE Channels
•SE ‘Products’
Time
Examples of companies
19
97
01
19
97
03
19
97
05
19
97
07
19
97
09
19
97
11
19
98
01
19
98
03
19
98
05
19
98
07
19
98
09
19
98
11
19
99
01
19
99
03
19
99
05
19
99
07
19
99
09
19
99
11
20
00
01
20
00
03
20
00
05
20
00
07
20
00
09
20
00
11
Relative Price
Classic ‘buyer advantage’?
1513 Production of meat & poultry products
e-sellers
non e-sellers
110
108
106
104
102
100
98
96
94
92
90
Date
International Benchmarking 2002 Scotland v. other nations
Average Ranking of Countries
Germany
3.9
USA
4.0
Scotland
Sweden



4.5

4.8
Canada
5.1
Australia
5.2
UK
ROI
Italy
France
Japan
5.6
6.0
7.6
8.3
8.6
On average Scotland ranks first overall for
businesses using e-business technologies - a
dramatic improvement on 2001;
second in ownership of websites;
third on the average value of online sales, and on
businesses ordering supplies online
Scotland's ranking improved by an average rating of
1.6 v 2001 (only Japan improved more)
What are organisations doing with e-business?
They are using the Internet to support key business practices…
100%
90%
80%
70%
60%
Adoption
50%
Benefit
40%
30%
20%
10%
0%
Transact with
the public
sector online?
Trade online
with
international
customers or
suppliers?
Access new
customers via
the Internet?
Use security
Use online
measures
technologies to
against
collaborate with
Internet attack
other
or fraud?
businesses?
Sample: 73% of organisations asked in 2003
Turnover from website (through sales, orders or business resulting
from the website) by businesses that have/use a website (44%)
45%
41%
40%
35%
30%
26%
24%
25%
Percentage of Turnover
20%
15%
10%
9%
5%
0%
Over 30%
Up to 30%
None
Don't Know
Sample: 44% of organisations responded in 2003
Adoption Group Analysis
2003 / 04 - Improve the competitive capability of companies by accelerating their
adoption of e-business from publish to interact and interact to transform
FAST
ADOPTERS
NORMAL
ADOPTERS
SECOND
MOVERS
NOT
CONVINCED
11%
52%
17%
20%
•Software & E-business Supply
•Financial Services
•High Tech
•Creative Industries
•Real Estate, Renting &
Business Activities
Textiles
Creative Industries
Fisheries
•Real Estate, Renting &
Business Activities
•Forestry
Source: Scottish e-Business Survey 2002
•Construction
•Fisheries
•Wholesale
•High Tech
•Transport, Post &
Telecommunications
•Real Estate, Renting &
Business Activities
•Agriculture
•Food & Drink
•Tourism (excl. retail)
•Transport, Post &
Telecommunications
eBusiness Strategy
To accelerate the competitive capability of companies in Scotland
through the use of e-Business Applications.
Environment
Market
Research
Supply
Demand
K
Scottish Enterprise KMap Broadband Application
- map
Marconi Demand
Indication
Demand
Side
(1)
Progress to date
(1) Partly or fully Established
(2) Under Development
(3) Subject to investigation
Population Coverage
Estimation
(2)
Supply
Side
Business Presence
(2)
Future Land & Property
Development (3)
Geographic Intelligence to support
Broadband Market Intervention Initiatives
in Scotland
BT ADSL Provision
Back Haul Opportunities
Other Provision
(1)
(3)
(3)
Broadband Programme
More effective wholesale
market (IP Transit)
Access to “advanced
broadband” in key locations
Specific Broadband
Development Areas
 TTE
 ATLAS -Bus Park
Network
Innovative rural supply
solutions
 Scottish Borders
 Wireless Communities
 Powerline Trial
Awareness raising and
demand stimulation
 B’band Website
 Demonstration Centres
 Incentive Scheme
Increased coverage of mass
market broadband
 Aggregation Schemes
 Demand Analysis
 Marketing
Research and development
on new technologies
 Wireless Excellence
Network
SUPPLY
DEMAND
Scottish Borders Rural Area Network (RAN)
The e-Business Workshops / business advisors
Levels of
adoption
1
2
3
4
5
Aware
‘Connect’
‘Publish’
‘Interact’
‘Transform’
‘Broadband’
‘Making the
Connection’
Workshop Series
•
•
•
•
•
‘Transforming
your site’
‘Trading
Electronically’
‘Transforming
your business’
5000 Delegates
High Level of customer satisfaction 3.6 v 4.0
Target 1425 for higher levels of adoption – 2003/04
ESF funding secured for 2003
Best practice example in:
‘Benchmarking National and Regional E Business
Policies’
DG Enterprise, February 2002
Electronic Payment Tool
• What are on-line payments
• Enter your business model
- System recommends
optimum solution
-Names of providers
-Costs
On-line Factsheets – specialist knowledge
• 38 Factsheets
• 12,000 downloads per
month
• Easy to monitor
• Easy to track Return on
Investment
• Reach broad business
population
• Easy to keep current
Seminars and Workshops – Managed on-line
•
•
•
•
Workshops
5 Topics
Inspire companies
Decision makers
•
•
•
•
Seminars
20 Topics
Inform companies
Project managers
Case Studies
• Over 200 case
studies
• Search by sector or
free text
• Reach broad
business population
• Monitor use
• Highly motivational
and cost effective
On-line timesheets
• 45 advisers work with:
• Across our network
• 250 clients
• In virtual teams
• Peripatetic
• Aggregate invoices
• Efficiency
• Monitor use
• Where time spent
Cost Apportionment - Factsheets
Target Cost
45
40
35
30
Actual Cost
(Function of
usage)
Planned
Downloads
12000
Actual
Downloads
10000
8000
20
6000
£s
25
15
4000
10
2000
5
0
0
1
2
3
Mnths
4
5
Downloads
14000
Software and E-Business Supply Industry
 Key market conditions




1400 indigenous sme’s, 17500 jobs, £2.6bn turnover
High ‘birth rate’ ; fragile
High tech industry in its own right and an enabler for other industries
An essential contributor to help business become more competitive.
 Critical success factors
 Ensuring sales and marketing skills and customer focus
 Focus on future technologies and exploiting the potential of
Scotland’s universities. £450m investment in Intermediary Technology
Institutes
Strategic Priorities
Develop a world class software and e-business supply industry
•
•
•
•
•
•
Foster collaboration between larger players and small innovative suppliers
Create scheme to lessen risk in e-bus sales from small, new suppliers
Alleviate shortage of women in software sector
Improve sales and marketing skills
Generate trust between supplier community and business users
Help suppliers adopt a global perspective
Supply quality transformational/interactive products to the Scottish market
•
Focus on cos. capable of developing and delivering transformational/
interactive applications
Intermediary Technology Institutes
Universities
Stac Layers – Three Stage Model
Level 1 Entry Level
Who’s who in
Scotland?
Globally positioned
Marketing and PR
Access to other
Level 1 members
Level 2 Interim Level
Certification
Knowledge Bank
Collaborative space
& infrastructure
ABTA
Ideas Exchange
Level 3 Membership
Stac
participation
Access to further
Resources.
Membership of
Specialist interest
groups
Lessons learnt



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Convey benefits not technology
Leverage resources where possible
Foster collaboration with banks, trade bodies etc
Measure attitudes not just usage
Customer feedback
Engage software industry
 Encourage skills in marketing and sales
 Develop strategic business approach
 Political will