Presentation on the reasons to invest in project PROMISE, given at the "Closed-Loop PLM" workshop, Athens (Greece), 2 July 2008

1. Why did the EU invest in PROMISE?
Arian Zwegers
DG Information Society and Media
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2. Overview
• Why investing in EU ICT research?
– Trends in business and ICT
– ICT market in EU
– ICT research in EU
– Framework Programmes
• Why investing in PROMISE?
– Product Lifecycle Management (PLM)
– Radio Frequency Identification (RFID)
• Future Research?
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3. Business and ICT transformations
1960 1970 1980 1990 2000 2010
Mainframes mini-computers PC client-sever Internet Convergence
Company level Departmental Personal Pervasive global Anytime, anywhere;
information Empowerment Freedom & integrated groups Platforms and
& automation ecosystems
Automated Speed; Business Supply Globalisation, customisation,
Support; Costs Logistics Process chains outsourcing
Re-engineering
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4. Trends in Business and ICT
Business/social trends
• Outsourcing
• Open Innovation
• Ecosystems
• Compliance
• Prosumer
• Democratisation of content exchange
ICT trends
• Convergence
• Broadband adoption
• Consumerisation of technology
• RFID
• Virtualisation
• SaaS
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5. ICT: The Innovation Motor No. 1
In medical technologies
ICT is the foundation for
more than 90% of all
The driver of more than
innovations.
90% of all innovations in
logistics is ICT.
More than 90% of all recent
innovations in the automotive
sector are based on ICT.
ICT is a main driver of
innovations in the
networked home
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Adapted from: Prof. Wahlster, DFKI ••• 5
environment.

6. Increasing awareness of ICT
contribution
• Significant contribution ICT to
productivity and growth
• Direct contribution ICT sector to
GDP, indirectly by take-up and
exploitation in other sectors
• ICT improves quality of life of
citizens
• ICT is one of the key ingredients of
sustainable development
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7. ICT Market, 2006
By region and by product
• Europe is world’s largest ICT market
• Europe has a large software and services
market Office equipment,
1.3%
Computer hardware,
Rest of World, 12.2%
24.2% IT services, 20.6%
Europe, End-user
33.4% communications
equipment, 4.2%
Software, 11.1%
Japan, 14.1%
Datacom and
network equipment,
Carrier services,
6.4%
US, 28.3% 44.1%
Total value = Total value =
€ 2,033 billion € 680 billion
PROMISE Open Workshop “Closed-Loop PLM” Source: EITO, 2007 ••• 7

8. Top100 suppliers serving the
Western European Software & IT
Services market (2004)
• 60% of suppliers come from Europe
• 43% of revenues stay in Europe
ByBy number of companies (in1 %)
number of companies (in %, 2004) By revenue (in % of Top 100 revenue, %)
By revenue (in 2004)
SE RoE
Asia IT
UK
4 NL 11 3
20 3
US/
DE
Canada
These Euro- 11
pean compa-
36 nies account
61% of for only 43% US/
companies 54
13 FR of the overall Canada
come from Top 100 FR 13
Europe companies’
revenues
10
10
6 DE 3
3 4 5 UK
RoE NL Asia
SE IT
Source: PAC
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http://cordis.europa.eu/fp7/ict/ssai/study-sw-and-serv-2006_en.html

9. R&D Expenditure
as % of GDP
• Other regions spend more on R&D than Europe
• Large differences within Europe
Sweden 4.27
Finland 3.51
Japan 3.15
US 2.76
Korea 2.68
Germany 2.50
France 2.19
EU15 1.99
EU25 1.93
UK 1.87
Czech Republic 1.35
China 1.31
Spain 1.11
Hungary 0.97
Cyprus 0.33
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Source: Eurostat
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http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NS-05-002/EN/KS-NS-05-002-EN.PDF

10. R&D expenditure by industry
• EU’s R&D by businesses
• Top 50 spenders in the world
PROMISE Open Workshop “Closed-Loop PLM” Source: Financial Times, 21 March 2005 ••• 10

11. ICT R&D expenditure
Spending on ICT R&D in 2000 Annual ICT R&D Expenditure (% GDP)
(in Billion Euro)
29.2 Japan
48.8
United States
European Union
Finland
93.3 Sweden
European Union USA Japan The Netherlands
Spain
• Europe is spending less than United Kingdom
other regions in ICT R&D
Germany
• Public ICT Spending is
fragmented across Europe France
Framework Programmes 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2%
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12. Europe and Product Innovation
Value Disciplines
• Customer Intimacy (“best total solution for customer”)
– Service oriented culture CRM
– Segmenting and targeting markets, tailoring the offerings
• Operational Excellence (“best price, lowest costs”)
– Optimal use of operational facilities (high fixed costs,
capital-intensive) SCM
– Reliable products or services with minimal difficulty or
inconvenience
• Product Leadership (“best product”) PLM
– Speed and innovation are key
– Leading-edge products and services
e.g. IBM e.g. Dell e.g. Apple
PROMISE Open Workshop “Closed-Loop PLM” Adapted from: Treacy and Wiersema
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13. Product Lifecycle Management
• PLM: an answer to industry needs
• Increasing PLM market
Four forces driving installation of PLM solutions
Demand for shorter product lifecycles 49%
Globalisation of markets and/or supply chains 43%
More complex design or a decentralised design environment 34%
More complex products 31%
16.0
14.7
13.5
12.6
11.3
10.5
World PLM market
(sales in B$)
2005 2006 2007 2008 2009 2010
Sources: Aberdeen Group, 2006;
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AMR Research, 2006
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14. Matching expectations and contributions
‘Better’ Lifestyle and Society
EXPECTATION More Secure & Safety Efficient
Production EXPECTATION
Comfortable
Recycling
People Ubiquitous Society
Reliable Production Logistics Retail Recycling Waste
More Reduction
Convenient Traceability (RFID) Ecology &
Environment
Product
Quality Industry Product
Operation Innovation
Efficiency Asset
Optimum
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CONTRIBUTION ••• 14

15. Matching expectations and contributions
‘Better’ Lifestyle and Society
EXPECTATION More Secure & Safety Efficient
Production EXPECTATION
Comfortable
Recycling
People Ubiquitous Society
Reliable Production Logistics Retail Recycling Waste
More Reduction
Convenient Traceability (RFID) Ecology &
Environment
Product
Quality Industry Product
Operation Innovation
Efficiency Asset
Optimum
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CONTRIBUTION ••• 15

16. From RFID
to an Internet of Things
• Real world objects have an individual
digital presence
• Vision of a future where each item or
thing is networked and can communicate
information about itself or from itself to
other objects and to computer systems
• Applications
– SCM, PLM
– Food traceability, drug compatibility, …
– Health and environment applications
– Smart home
– Smart electricity consumption control
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17. Possible example?
Responsibeer safety system
PROMISE Open Workshop “Closed-Loop PLM” Sources: Wired, 2007 ••• 17

18. Future research?
Future Internet
Internet of Services, Service Web 3D Internet
Trust
Security
Networks of the Future
Sources: 3GPP, 3GPP2, Qualcomm, WiMAX Forum
http://www.alexandria.unisg.ch/EXPORT/DL/38496.pdf Internet of Things
http://www.itu.int/osg/spu/publications/internetofthings/
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Second Life

19. Conclusions
• ICT is getting increasingly
important
• European ICT market largely
dominated by non-EU players
• Europe is spending less in ICT R&D
than other regions
• Opportunities in product innovation
• Contribution by PROMISE
• Towards an Internet of Things?
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20. PROMISE Open Workshop “Closed-Loop PLM” ••• 20

21. For More Information ...
PROMISE
PROMISE
http://www.promise-plm.com/
http://www.promise-plm.com/
http://www.promise.no/
http://www.promise.no/
FP7
FP7
http://cordis.europa.eu/fp7/
http://cordis.europa.eu/fp7/
http://cordis.europa.eu/fp7/ict/
http://cordis.europa.eu/fp7/ict/
Future Internet
Future Internet
http://www.future-internet.eu/
http://www.future-internet.eu/
E-mail
E-mail
Arian.Zwegers@ec.europa.eu
Arian.Zwegers@ec.europa.eu
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