The rising stakes of digital The rising stakes of digital leadershipleadership

ICT, e-Business and SMEsICT, e-Business and SMEs

Dennis Gabor Applied University, HungaryDennis Gabor Applied University, HungaryDr. Solt EszterDr. Solt Eszter

2008.2008.

e-readinesse-readiness

e-readinesse-readiness

The ability to use information and The ability to use information and Communication Technologies to develop the Communication Technologies to develop the economy and foster welfareeconomy and foster welfare

Macro levelMacro level Micro level : more detailed benchmarking to Micro level : more detailed benchmarking to

compute sub-measures for compute sub-measures for nnetworking,etworking,aapplications, pplications, wweb-accessibility eb-accessibility and and rreadiness (NAWAR)eadiness (NAWAR)

The global digital gapThe global digital gap

Emerging countries led by Asia are catching Emerging countries led by Asia are catching up with the traditional leaders in digital up with the traditional leaders in digital spacespace

The global digital gap is closing inThe global digital gap is closing in Not all of these measures are market-ledNot all of these measures are market-led Leap frogging has been successful where Leap frogging has been successful where

government commitment is stronggovernment commitment is strong

e-readiness rankinge-readiness ranking

2007 20062007 2006 DenmarkDenmark 1 1 1 1 United StatesUnited States 2 2 2 2 SwedenSweden 2 2 4 4 Hong KongHong Kong 4 4 1010 SwitzerlandSwitzerland 5 5 3 3 SingaporeSingapore 6 6 1313 United KingdomUnited Kingdom 7 7 5 5 NetherlandsNetherlands 8 8 6 6 AustraliaAustralia 9 9 8 8 FinlandFinland 10 10 7 7 AustriaAustria 11 11 1414 Norway Norway 12 12 1111 CanadaCanada 13 13 9 9

e-readiness rankinge-readiness ranking

2007 20062007 2006 Bermuda 20 15Bermuda 20 15 Taiwan 17 23Taiwan 17 23 Japan 18 21Japan 18 21 Germany 19 12 Germany 19 12 Hungary 34 32Hungary 34 32 Latvia 37 39Latvia 37 39 Romania 45 49Romania 45 49 India 54 53India 54 53 China 56 57 China 56 57

Hungary: Mind the gapHungary: Mind the gap

Lack of connectivity has limited ICT Lack of connectivity has limited ICT adoption by an active and interested adoption by an active and interested populationpopulation

Basic ICT user’s skills among employees Basic ICT user’s skills among employees are above EU average, while special skills are above EU average, while special skills are slowly approaching the averageare slowly approaching the average

Key e-business trends observed in Key e-business trends observed in 20062006

Supply chain integrationSupply chain integration Better solutions for SMEsBetter solutions for SMEs ICT for customer serviceICT for customer service Growing maturity of new technologiesGrowing maturity of new technologies

New trends and issues aheadNew trends and issues ahead

The „missing link”The „missing link” ICT outsorcing, out-taskingICT outsorcing, out-tasking Open source and software as a serviceOpen source and software as a service Information managementInformation management

Sectoral e-business differencesSectoral e-business differences

ManufacturingManufacturing ConstructionConstruction TelecommunicationsTelecommunications Service sectorsService sectors

e-business opportunities for Small e-business opportunities for Small FirmsFirms

ICT usage facilitates cooperationICT usage facilitates cooperation The SME potential of new technologiesThe SME potential of new technologies Metcalfe’s LawMetcalfe’s Law Going internationalGoing international

e-business Challenges for Small e-business Challenges for Small FirmsFirms

Complying with ICT requirements of large Complying with ICT requirements of large firmsfirms

Lack of ICT strategy and skillsLack of ICT strategy and skills Shift of powerShift of power

ICT impact on firmsICT impact on firms

ICT matters for employment and productivity ICT matters for employment and productivity growthgrowth

Anticipated future impact of ICT: tool to Anticipated future impact of ICT: tool to support planning, decision making and support planning, decision making and controllingcontrolling

The importance of business The importance of business environment in benefitting from ICTenvironment in benefitting from ICT

Transparent, open and competitive business Transparent, open and competitive business frameworkframework

Clear independent rule of lawClear independent rule of law Transparent, simple and accessible Transparent, simple and accessible

corporate regulationcorporate regulation Equal and stable legal treatment for national Equal and stable legal treatment for national

and cross-border transactionsand cross-border transactions

Benefits of ICT and Internet useBenefits of ICT and Internet use

Reducing transaction costsReducing transaction costs Increasing the speed and reliability of Increasing the speed and reliability of

transactions transactions Reducing inefficiencesReducing inefficiences Internet-based B2B interaction and real-time Internet-based B2B interaction and real-time

communicationcommunication

Thank you for your attention!Thank you for your attention!