Fabio Corno - LIUC, Castellanza

Workshop on “CNs for Local Economy Development

Milano, 11 February 1999

CN and Local Economic Development:CN and Local Economic Development:an Opportunity for Creating Valuean Opportunity for Creating Value

OutlineOutline

• CN specificities– The RCM case

• A model for Determining CNs Value – The RCM case

CNs: CNs: An overall perspectiveAn overall perspective

Commerce net

private services

Free net

citizens as users

Civic net

public services

• CNs operate as service providers between institutions (both public and private) and citizens, offering new communication means, together with the tools needed in order to exploit them.

• Such service responds to a strong need felt by local institutions and by citizens to know each other better and to interact more

• The opportunity is offered to users to get new information and to communicate amongst themselves and with local institutions.

CNs specific aspectsCNs specific aspects

Intangibility“Non profit”as reference

field

Innovativenesswithin the telematic industry

CNs

CNs objectivesCNs objectives

A CN aims at offering to its users/adherents - individuals or groups of citizens, associations, institutions - a range of services related to different areas, in the interest both of:

Citizens The local economy

CNs orientation towards CNs orientation towards the local communitythe local community

The local community

Private Institutions

Public Institutions

Individuals(citizens at large)

CNs: an opportunity for the P.A.CNs: an opportunity for the P.A. CNs represent an opportunity for promoting and coordinating public actors and private sectors, in order to concretely respond to the

needs of the local community, such as:

a) simplification of burocratic interactions within the P.A.

b) automatic offering of services to companies

c) business diffusion on new electronic channels

d) access to publicly useful information through telematic networks

e) empowerement of info services concerning work market and training

The RCM case: its The RCM case: its missionmission

The original idea

Information as a strategic

resourse

Telematics as an opportunity for

accellerating and spresading

information U.E. policies

An opportunity forhomogenizing

P.A. info systems (highly

dishomogeneous)

Citizens’ request for integrated services

Allowing population at large to reach new

communication channels and means

• The RCM project aims at replicating in Milan and Lombardy the success reached by CNs abroad at the beginning of the 90’s (cfr. Seattle).

Resources which are/are not available Resources which are/are not available critical success factorscritical success factors

Product systemProduct system

Competitive AdvantagesCompetitive Advantages

““Structure”Structure”

distinctive distinctive competencescompetences

Cultural HypothesesCultural Hypotheses

differential differential advantagesadvantages

Need BearersNeed Bearers

basic expectationsbasic expectations

RCM: the entrepreneurial formula RCM: the entrepreneurial formula

Communication Communication Opportunity for Opportunity for

CitizensCitizens

RCM: the “product system”RCM: the “product system”• The RCM “procuct” is articulated along four proposals, which involve as “actors”

citizens, the institutions, and othe subjects

Information

Direct Lines

Interactive Services

Discussion Forum

RCM RCM the interaction with customers the interaction with customers

RCM

Know-how

Communication “space” Financial resources

Consultancy Sponsorships

Public & private institutions

Contracts

RCM: RCM: the interaction with usersthe interaction with users

RCM

Internet Modem (Registration)

Citizens lato sensu

Knowledge

Dialogue

RCM strengthsRCM strengths

Service continuity

Research activity

know-how diffusion

Development of new entrepreneurship

within advanced technologies field

Link with similar centers both in Italy and abroad

Development of innovative technologies

Initiative taken by a “super partes” public institution,

Reduction of bureacracy costs

Improvement of local communication

RCMRCM

Attention both to local and global

How to evaluate CNs?How to evaluate CNs?

Main points:• Aggregation of different subjects around

the “RCM Project”• “Non-profit” realm of operation• Key relevance of “internally developed

intangibles”

Social EnvironmentCommunity, Territory,Public Authorities

Institution

Shareholders

Employees

Institutionalstructure

Organizationalstructure

Financialstructure

ManagerialProcess

Competitive Environmentcustomers, competitorspartners, suppliers

A possible reference model: A possible reference model: a) institutionsa) institutions

Available resources

Experience

Abilities/skills

A possible reference model: A possible reference model: b) the roots of intangiblesb) the roots of intangibles

A possible reference model: A possible reference model: cc) people-dependance) people-dependance

INTANGIBLE ASSETSTACIT competences, ...

INTANGIBLE ASSETSEXPLICIT trademarks, brand names...

2. AREAS OF “SEDIMENTATION

FINANCIALORGANIZ.

AVAILABLERESOURCES

HISTORY

INSTITUT.

1. THE ROOTS

ABILITIES /SKILLS

MGT

PROCESSES

RELATIONS EINTERACTIONS

MKT TERRITORY

STRUCTURE

1 2 5

3

4

6

3. ASSETSNATURE

People-Dependenta) Tacit

b) Formalized Explicit

PeopleIndependent

7

The reference model The reference model

How to evaluate CNs?How to evaluate CNs?

RCM: assets purchased on the market

Relationship with customers/ sponsors

Relationship with users

4

7 6RCM “people”

3

Development potential overall

How to evaluate CNs How to evaluate CNs (cont)(cont) ? ?

RCM: assets purchased on the market- Hardware- Software

Relationship with customers/sponsors- Contracts- Sponsorships

Relationships with users- usage rate- sustained costs

4

7 6

RCM People- skills- network structure

3 - 7

Development potential- from the point of view of “users”- from the point of view of ”customers”

overall

RCM “value”RCM “value”People: a) skills as a “tacit” assetPeople: a) skills as a “tacit” asset

• “Tacit” RCM Know-how is imbedded in the human resources who have contributed to

its development

• Key elements for evaluating it:a) key people CV’s

b) hours dedicated to RCM possibly divided between “project launch”; “knowledge diffusion and update”; “project maintenance”; consultancy to third parties

c) “transformation” of users into “key people” through their activity as moderators

Users: Users: powerful “ human resources” for RCMpowerful “ human resources” for RCM

RCM “intuitionhas made available to “citizens””new communication opportunities

both toprivate subjects and firms

which have been able to choose whetherto limit themselves to a “passive” usage of CN services

ortu use the net in an “active” way

in order topromote new communication processes, focused on

specific interest areasby so doing

they have contributed to enlarging RCM networkas they have offered

DEVELOPMENT

RCM “value”RCM “value”People: b) network structure as an “explicit” assetPeople: b) network structure as an “explicit” asset

• the RCM networkis imbedded in the groupware architecture developed over

time by RCM people, also through trial-and-error processes

• Key elements for evaluating it:a) network quality: its “fit” with local community needs, the

attention paid to the “weak” parts of the population, ...

b) number of conferences, their hierarchy, ...

c) formalized procedures for services delivery and “maintenance” (i.e.: users registration, conferences “activation” and “disappearance”)

RCM “value”RCM “value”Relationships with usersRelationships with users

• Trend in users’ numberinteresting aspects are represented both by the number of users

and by their composition (women? foreigners?)

• Trend in accesses by usersonly active users are to be considered: their “fidelity” is evaluated

through the time elapsed between sequential accesses

• Costs born by users in order to use RCM:number and length of accesses to RCM have been monitored

throughout its life, together with telephone costs

this is interpreted as a “conservative” proxy for users’ interest in RCM and in its services

RCM “value”RCM “value”Relationships with customersRelationships with customers

• Number of private and public institutionswhich have approached RCM in order to make themselves visible,

as well as in order to acquire new know-how

• Time horizon covered by contracts repeated contracts are signs of customer satisfaction

• Financial resources obtaineda) from contracts: related to space availability on the net, which

allow the customers to introduce themselves to the community, as well as to start a new dialogue

b) from sponsorships obtained mainly from private companies: a signal of their interest in the initiative

RCM “value”RCM “value”Growth trendsGrowth trends

• Number of private and public institutionswhich have approached RCM in order to make themselves visible,

as well as in order to acquire new know-how

• Time horizon covered by contracts repeated contracts are signs of customer satisfaction

• Financial resources obtaineda) from contracts: related to space availability on the net, which

allow the customers to introduce themselves to the community, as well as to start a new dialogue

b) from sponsorships obtained mainly from private companies: a signal of their interest in the initiative

RCM “value”RCM “value”Growth trendsGrowth trends

RCM intuition

has made it possible to use public funds in order to realize a

service system aimed at citizens (USERS)

through

the usage of networks by citizens themselves

the validity of such services has allowed

to attract private subjects

thereby creating a

fund raising system on the market

key for

widing both the structure and the range of services

thereby making more interesting and complete the

DEVELOPMENT

CNs “value”CNs “value”Growth in diffused learningGrowth in diffused learning

Thanks to the network the local community reinforces its identity and opens up to a global communication

By experimenting the usage of the network one learns that:

• a) the net helps in communicating, discussing, working (together), getting to know the town, implementing E_mail and discussion groups

• b) the net (internet) is the largest library and the largest hypertextual WEB multimedial museum