In this section we identify some of the regional conditions that have to be taken into account in planning an e-business policy focusing on relevant factors in order to design a policy near to local needs and priorities.
As we all know, every region has its own peculiarities and it is impossible to point out a “perfect” one-fits-all policy. None the less, it is possible to point out elements enabling sensible policies targeted to specific needs and specific local mindsets.
In order to deploy a sensible e-business policy, it is important to develop a clear idea of the socio economic background in which the policy will be implemented. In planning an e-business policy it is important to take into account both the industrial fabric as well as the regional e-adoption and ICT usage.
Factors that tend to be relevant in identifying an e-business policy will be pointed out and we will also try to suggest some policy indication related to different regional conditions. As this is just an introductory article, this text will be short and very general. At the end of it, we will provide a list of relevant studies and analysis that can be consulted in order to gain a more in-depth view.
Different statistical data will be pointed out, in order to help regional policy makers in evaluating their regional condition. Nevertheless, the key issue here is to form a general understanding of the regional framework rather than to engage in detailed quantitative or statistical analysis. Generally speaking, further primary research is not required , but it is envisaged to refer to those existing sources of research, information and data, that are already available for planning regional strategies, such as the Regional Operative Programme.
1. Economical framework
In order to gain a better understanding of the potential e-business diffusion, the preliminary step is getting a “picture” of the economic regional framework regarding the industry structure. Probably, a regional policy-maker working in this field has already a “feeling” about it, but it is important to take into account:
The general size of enterprise: Do large or small and medium size firms dominate quantitatively the region?
Generally speaking, small firms tend to be reluctant to the use ICT in their business. Usually this is due to their lack of specific competencies or skills in the workforce, even SMEs could have great advantages from e-adoption.
A statistical indicator that can help in answering these questions is the number of enterprises categorised by number of employees.
The activities specialisation: Is there an industrial sector that is more important than others? Is there a specific industrial sector in the region? The larger regional business could be somehow interested into e-business? Is there an industry that characterises the regional economy?
A statistical data that can help in answering these questions is the "Number of businesses by sector", regarding the sector, and some specific regional data regarding cluster, regarding industry
System openness: has the region an international attitude? Firms tend to have commercial relationships with firm settled in the same region?
A statistical indicator that can help in answering these questions are "Total imports of goods - Trade value" and "Total exports of goods - Trade value".
2. ICT framework
After analysing the economical structure it could be useful to reach a clearer idea of the e-adoption within the region. There is a number of factors that are relevant in planning a e-business strategy.
In this framework, statistical data are not always available: the ICT is still a "new" field and not all the regions have developed a methodology for collecting these data. Also the comparison among regions is still difficult as it is possible that regional data have been obtained in different way. It is important also to notice that regions that have already invested in the ICT adoption are those regions for which it is easier to find the statistical data we will propose.
In any case, we propose some regional factors that has to be considered. Probably, a regional policy-maker working in this field has already a "feeling" about them, but a systemic approach it is advisable. Furthermore, the point it is not to collect statistical data but reflecting on regional factors that can influence the success of an e-business policy.
The issues that have to be taken into account are:
Technical conditions: Could firms use ADSL or fibre or any kind of high-speed connections? Do some areas suffer for some kind of "digital divide"?
Generally speaking, the technological infrastructure represents the means that enables e-business adoption. For this reason it would be better if firms could work whit a high-speed connection otherwise the e-business policy risk to underachieve its goals.
A statistical indicator that can help in defining such issues is the Broadband (or High speed) coverage.
The E-business attitude: Do firms use the basic e-business tools? Do firms have websites? Which kind of applications do they use? Are they ready to move towards the "business digitalisation"? Where are local SMEs located in the e-adoption ladder?
Generally speaking, it is important to gain a general idea about the ICT usage in firms as it could represent the regional "readiness" to e-business. E-business is a wide concept that can refer to different practices: it could refer to e-commerce (basic economical transactions - such as receive order or send them - realized through ICT) but it could refer also to the wider sector of "business digitalization", that involves application as Product Data Management (PDM), Supply Chain Management (SCM), Customer Relationship Management (CRM), Enterprise Resource Planning (ERP) or Computer Aided Software Engineering (CASE). The analysis of the applications already used by firms could help in find out which tools should be encouraged.
Statistical indicators that can help in defining such issue are "Share of enterprise with a website", "Share of enterprises that receive orders online" and "Share of enterprises that buy online" or share of enterprises using a specific application.
Example Baden-Württemberg: Reasons for non-uptake of e-Business solutions
Reference: FAZIT-Enterprise Survey, June/Juli 2006
An e-business policy could have an impact also on regional IT firms, as they represent the probable s-business solution suppliers. For this reason it could be useful to have a general impression concerning the firms that could act that role.
Statistical indicators that can help in defining such issue are "Share of ICT enterprises", "Market share of ICT" (ICT sector, according to E-BUSINESS WATCH, is usually define as composed by NACE I 64.2 and K 72).
3. E-adoption ladder
The e-adoption ladder serves as a useful tool for measuring the sophistication of e-business technology adoption. It should be noted that the steps on the ladder are not exclusive; it may be possible for a business to simultaneously be on more than one step.
It is, nowadays, largely, used within Europe in order to identify the level of e-adoption. The ‘e-adoption ladder’ was devised by Cisco as a way of charting an SME’s progress in using e-business applications. There are different version of the ladder, modified in order to point out a specific application or ICT development (as DBE).
In this article we will focus on the e-adoption ladder as presented by Cisco. It is based on 5 levels that corresponds to:
Website
E-Commerce
E-Business
Transformed organisations
Firms use a CRM system to record the history of our dealings with each customer and to personalise our e-communications according to customers' needs and interests
Firms routinely monitor customer satisfaction levels electronically
Firms use ICT and broadband to run a "virtual" organisation, using (eg) wireless networks and/or e-conferencing to stay in touch while on the move
Please see below an overview featuring indicators for level 4 / E-Business. It should give an idea on what are the relevant aspects at this stage of e-adoption:
30 Indicators on Electronic Business - Overview
Reference: E-Business W@tch (2006)