Workshop Strategic Intelligence and Innovative Clusters - STRATINC 07 October 2004 Thessaloniki

1. WorkshopStrategic Intelligence and Innovative Clusters - STRATINC07 October 2004Thessaloniki The Structure of the ITC Sector SEPVE-Association of Information Technology Companies of Northern Greece

2. SEPVE’s background • SEPVE was founded in April 1994 • It is based in Thessaloniki. • The Association today numbers more than 210 members. (http://www.sepve.org.gr) • It is the only collective body representing the interests of the Information Technology businesses in the regions of Macedonia, Thrace and Thessaly. • It plays a major role in assessing and promoting the needs of the Information Society in Greece and South Eastern Europe.

3. SEPVE’s vision Key role to foster: • Information Technology as a lever of development for the whole of Greek society • Thessaloniki and Northern Greece as a centre for Information Technology in the broader geographical region • SEPVE as a bridge for business cooperation with South Eastern Europe

4. SEPVE’s role in the Greek IT sector 1/2 • Consultant to the Ministry of Macedonia and Thrace on the potential for development and exploitation of the Information Technology businesses of the region • Consultant to the four regional authorities of Northern Greece and Thessaly on means of funding Information Technology SMEs • Advisory services to the Ministry of National Economy to assist in the more effective development and use of electronic data interchange systems

5. SEPVE’s role in the Greek IT sector 2/2 • SEPVE is one of the main sources of information on technology issues for the Prime Minister’s office • Recommending and advising the Ministry of Development on new measures, projects and initiatives under the Development Act.

6. SEPVE activities 1/2 • Offering information to both existing and future members on the latest developments in the Information Technology sector, on both the national and international levels. • Fostering the growth of Information Technology within Northern Greece • Promoting an enhanced status for IT businesses, thus making a positive contribution to Greece’s advance into the Information Society • Coordinating and submitting business plans and proposals to government departments and agencies in order to enhance the development of its members’ businesses.

7. SEPVE activities 2/2 • Creating an effective communication and collaboration platform among its members, and between its members and the public sector as well as other business sectors. • Organizing educational and information seminars, round table discussions and conferences, in order to improve the administrative and technical skills of its members. • Promoting cooperation between its members and related businesses in the Balkan countries, as well as in the Mediterranean region and the Middle East, thus taking advantage of the key geographical position of northern Greece.

8. SEPVE participation - EU projects • Organization, management and coordination of the 1st and 2nd INTERBALKAN IT FORUM in Thessaloniki • ADAPT • ECOMMEX • INTERREG II • FP5 - IST-Programme – ISIS Project • LEONARDO-Programme – ‘Web Content Manager’ Project • New Employment, New E-quality: Promoting Industrial Relations and Social Dialogue in the IT Sector • LEONARDO-Programme – ‘ViPiA - Virtual Pre-Incubator Accelerator’ • FP6 – IST-Programme – EUROPEAN IST

9. SEPVE’s latest initiative • Creation of the “High Technology Business Park–Technopolis Thessalonikis S.A.”

10. High Technology Business Park – Goals and Benefits of Technopolis 1/2 • Solve housing needs of Information and High Technology companies through development of a well organized centre with high quality infrastructure and services • Cooperation between High Technology companies with Research as well as Educational Institutes • Offer extended services such as a conference centre, catering, health club, day care centre, etc.

11. High Technology Business Park – Goals and Benefits of Technopolis 2/2 • Foster the overall development of the local economy by means of promoting Information Technology and the Information Society • Attract foreign investments • Create a communication and cooperation platform between IT companies and private and public institutions on a local, national and international level

12. Greek IT sector description -Company activities • Software • Hardware • System Integration & IT Services • Internet Business Solutions – e-Commerce • Web Applications & On Line Databases • Telecommunications • Multimedia Application • Education • IT Consulting

13. Sector Profile • Major bbasic activities • Software (Operational applications and Internet applications): 32% • IT Services: 31% • Distribution of office machines and PCs: 16% • Trading telecommunication products and equipment: 8% Source: IOBE – Institution for Financial and Industrial Surveys (IOBE)

14. <11 persons : 9% 11-50 : 58% 51-250 : 24% >250 : 9% <1million € : 19,4% 1-10 : 57,9% 10-100 : 18,1% >100 : 4,6% Size of the ICT Sector in Greece Employees Turn Over • Majority of IT companies are SMEs. • Major global IT companies have offices or regional headquarters in Greece: Microsoft, HP, Oracle, SAP, Motorola, Siemens, and IBM

15. ICT market size • 6% increase for 2003 – MEUR 2228 • Forecasted 2,5% increase for 2004 • Mostly damaged were software and IT services • Steadily good performance of PC systems sales • Bigger market shares are shifting to multinationals Source: Strategic International/ Kataras (January 2004)

16. The Greek IT market, 1999 – 2003 (Values in M€)

17. The IT market in Greece and W. Europe, 2002 – 2005(% Growth Rates)

18. Reasons for the slowdown • Uneven economic progress: Only a small number of big companies take advantage of 3rd CSF and Olympic Games projects • Lack of modernization • Over-loaning of SMEs • Etc.

19. Characteristics of the Greek IT market • Greek government has put a strong emphasis on the development of the IS • Implementation of OPIS (Operational Programm for the Information Society)is critical for the status of ICT market • Access to considerable EU technology, research and development funds • Good performance of R&D sector • Strong scientific support from international universities and research institutes • Country lacks spin-off companies from research • PC and Internet usage grow • Usage of new technology still on introductory level • Deregulation of telecom market

20. Basic sectors of IS development • Education • Culture/ Digital content (Digitalization of cultural and historic assets) • E-government • Agriculture • Defense services relating to civilians (meteorology, drafting, military hospitals) • E-justice • E-Health • Intelligent transport • SMEs and digital economy • Research in ICT • E-skills • Eurozone infrastructure and services

21. Employment in IT sector • In 2001 employment in the ICT sector constituted 1.1% of total workforce • Well –trained highly skilled IT specialists • Well-trained engineers with postgraduate studies studies in engineering (and management and economics), foreign languages and computer applications • Many well-respected scholars and scientists have shown strong interest in advanced ICT research (about 1,500 scientists staff the four main IT R&D centers in Greece)

22. Specialization of work force • Specializations offered by educational institutions: • IT applications specialist; • IT applications with multimedia specialist; • Medical IT applications technician; • Computer, communication and network technician; • IT, networks & office automation application technician; • Systems administration and intranet-internet service technician; • Computer Systems technician; • Computer networks technician; • Internet technology technician • Telematics technician (communications) • There is no standardized job profile description in Greece

23. Lack of ICT professionals in the EU 2003:1.300.000Free job opportunities 2004:1.600.000Free job opportunities in Greece: Information Society - until 2006 40.000Free job opportunities In the IT sector – Government & Private

24. divide Convergence ICT usage in Greece Fast adaptation to computer and Internet by new generation Πηγή: Εθνική Έρευνα για τη χρήση Νέων Τεχνολογιών στο Γενικό Πληθυσμό για το 2001& 2002, GRNET 1:Ευρωπαϊκός Μ.Ο πηγή EITO 2003 2:Πηγή: eBusiness Watch 2003

25. Research and development in the IT sector • 40% of IT companies have R&D expenses higher than 5% of annual turnover • Companies with 26-100 personnel have higher expenses • 40% of the companies participated in subsidized research co-operations, while 1/5 of the sector collaborated on R&D issues with private funds: an overall 47% has participated in R&D collaborations • For 2003-2004 60% declare that they will carry out R&D collaborations with other enterprises and institutions of Higher Education • More than 1/3 claim to have a big or very big exploitation of research results Source: IOBE, 2004

26. Trends and Perspectives of the IT sector • 37% of IT companies feel optimistic • 60% feel reserved, with companies <10 people appearing more optimistic Reasons for optimism: • Increase of until today low use of ICT and therefore bigger spreading of ICT to the population and companies (SMEs) • Acceleration of IS works, creation of a substantial mass of users in the business and general public will motivate the until today stagnant/negative market • Cost reduction of infrastructure/ equipment and usage of telecommunication services • Higher standardization of solutions/products and therefore increase of turnover with parallel cost reduction Source: IOBE, 2004

27. Sources for the development of the sector • EU Enlargement • Spreading of ICT to other developing sectors of the economy, such as tourism • Good level of higher and highest technical education • Quality of personnel in the labor market for the companies in the sector • Improvement of the overall economic climate • Finalization of regulatory framework (mainly telecommunications) • Continuation of development of Information Society • Customization of existing software applications • Opening up towards the markets Source: IOBE

28. Obstacles for the development of the sector • Software piracy • Limited size of national market • Level of user attitude to the new technologies • Organizational level of user companies • Due to the lack of outside funds the companies’ own funding is limited • Approaching foreign markets is not easy, esp. for SMEs • Still poor infrastructure that limits development • The big multinationals are profiting from the development coming from the Olympic Games Source: IOBE (March 2004)

29. IT Companies’ Strategic goals • Increase of market share in the existing IT market in the existing markets • Sales increase through development of new IT technologies • Sales increase through introduction of existing IT in new sectors • Introduction of existing IT in new geographic markets • Emphasis on added value of the offered software applications, adjusted to the client. • Focusing on specified client groups (market niches) • Emphasis on the organizational flexibility of the company • Emphasis on cost cutting by reducing staff • Realization of mergers and acquisitions Source: IOBE study 2004