, universities and other research organizations, vocational training institutions, technology centres and transfer agencies) and the structure of the regional economy (dominant industries, availability of service firms and adequate suppliers, organizations providing innovation finance).
Lombardy and Apulia 1 SME is defined as a firm with less than 250 employees and no participation of a larger company accounting for more than 25%.
Employment was the more important objective than competitiveness. Due to labour hoarding the nationalized companies'productivity decreased strongly.
At the end of the 1980s the structural weaknesses resulted in a serious crisis of the nationalized sector.
as a consequence, employment decreased significantly leading to serious labour market problems in the early 1990s.
The distribution of the size of firms (in terms of employment) within the sample of respondents corresponds approximately to the regional economy.
and strategies of innovation SMES innovate with higher resource intensity than large firms, especially regarding human resources.
%the average innovation staff in relation to employment is 15.6%in the case of SMES. Large firms, for comparison, have average ratios of 10.3%and 8. 3%,respectively.
because they are confronted particularly with a limited resource base anyway, regarding capital as well as time and know-how of the employees.
lack of time of the key persons who are preoccupied with day-to-day work, difficulties in adopting high technology, a lack of advanced technical know-how,
and firms applying relatively more resources (funds as well as manpower) to innovation activities than the average.
A. Kaufmann, F. To dtling/Technovation 22 (2002) 147 159 151 An important reason for the lack of relations with innovation partners outside the business sector is the small number of employees in SMES
There is a lack of experienced employees as well as a lack of time in the case of the few adequately qualified persons due to routine and administrative work.
Manpower is the second most frequent bottleneck, either because adequately qualified personnel are missing or there is a lack of time available for innovation activities.
Second, the smallest SMES (with less than 10 employees) and those dedicating an above-the-average-share of their financial Table 3 Problems constraining innovation activitiesa%of%of large SMES firms Lack of funds 24.3 15.6
Third, manpower bottlenecks seem to be most serious in the case of firms engaged in research.
It was indicated frequently in the survey that the daily work-overload of very few persons
two are research-oriented Software Park Hagenberg (SWP) and Research and Training Centre for Labour and Technology Steyr (FAZAT).
Most of them have up to three employees some are even only one-person firms. Most of the firms are spin-offs of former research projects.
This number comprises both the employees of the firms and the personnel of the research institutes.
The Research and Training Centre for Labour and Technology (FAZAT) is located in one of the old industrial areas of Austria in Steyr.
The firms located there are young (start-ups), usually very small (less than 10 employees), and belong predominantly to software, data processing,
The consequences are small staffs available for the centre management and market-oriented activities. Services or functions which are less profitable are performed not
which restricts the potential of these centres to support innovation activities of firms internal and external to the centre. 4. 2. Direct financial innovation support The Austrian Industrial Research Promotion Fund (Forschungsfo
The executive board consists of representatives of the Austrian social partners (trade union chamber of labour, chamber of commerce) and major Austrian companies.
Basically, the FFF pursues a bottom-up strategy which means that the firms themselves decide on the technologies
Small and medium-sized firms with less than 250 employees account for nearly 75%of the supported firms,
external experts are involved not. The decision to support a project and the extent of support has to be taken within 6 8 weeks,
h Ratio innovation staff/number of employees 15.6%(mean value of SMES. innovation processes, but not necessarily in the case of knowledge-intensive innovation projects.
lack of technical know-how, how inavailable or too expensive technology Manpower effects: funds for personnel 44.9 11.5 Manpower problems:
lack of qualified personnel, lack of time Strategic effects: market information, support for 9. 0 9. 0 Strategic problems:
The fact that SMES innovate in a way where human resources are used more intensively than large firms indicates that many firms need more adequately qualified manpower.
Surprisingly, bottlenecks regarding human resources lack of qualified personnel, technical knowhow, and time were indicated rarely by the firms.
International Institute for Labour Studies, Geneva. Saxenian, A.,1994. Regional Advantage: Culture and Competition in Silicon valley and Route 128.
List of experts interviews...76 Appendix II: Internet links for further information on‘good practice'regions...
62 1 1. Introduction1 This report is part of the work undertaken to realise Work Package 2 within the CRIPREDE project.
The work package's main objective is to identify current regional policies fostering innovation and technology transfer as well as‘good practice'policy
and literature and through selected interviews with experts within identified good practice regions. The report is structured as follows:
Moreover, our thanks go to the member of the CRIPREDE consortium, in particular Kjell-Erik Bugge and Bill O'Gorman for their comments. 2 As outlined in the description of work of the CRIPREDE project,
Spatial R&d and innovation clusters reflect the formal institutional settings and the inherent division of labour between enterprises and institutions, in short:
Location becomes increasingly important as the local highly skilled labour market expands thus contributing to regional capabilities and knowledge.
This is facilitated by labour mobility within the region, allowing for knowledge spillover between firms, an element
Interestingly and similar to Florida (2004), Lawton-Smith (2005) also emphasises the need for a skilled labour force on both high and intermediary levels,
These include, for example, a well-educated labour force and professional labour markets (Simmie et al. 2003), attractive and‘fashionable'places to live with high social and cultural amenity and a high reputation,
which help in attracting knowledge workers and leading-edge high technology industries (e g.,, Florida 2004, 2005a), places which are visible internationally
and the concepts used to‘explain'patterns of uneven regional development such as embeddedness,‘institutional thickness',cumulative causation, agglomeration economies, localisation economies, fungeability, labour market dynamics, quality of life and environmental amenity,
labour mobility, the creation of spin-offs and dense networks, for example, between firms, customers and suppliers (e g.,
Labour mobility can enhance technology development through diffusion of information and skills, as employees transfer both their tacit and firm-specific knowledge to new jobs.
A similar mechanism happens with spin-offs which could foster knowledge transfer through bringing knowledge and experiences from previous working places to the new firm.
Such an infrastructure includes universities, public and private R&d institutions, a sufficient supply of highly qualified labour and a generally good infrastructure of business support institutions.
For example, relationship promoters often had a full time job and a central position within the network. In this context, the works on the creative milieu suggest that high communicators play an important role for network development at regional level.
High communicators are individuals at the decision making level in several public and private organizations. They play a central role in transmitting information, speeding up decision-making,
Similarly focused on labour mobility, migration patterns and their effects on embeddedness and regional development recent studies by Richard Florida (2004, 2005a, 2005b) suggest a particular important role for place
nations and regions from the globalisation process by enhancing learning abilities of workers, firms and‘systems'.
Albeit 21 being overcritical of Florida's works, their policy framework offers valuable insight into how regions might go about fostering RTD. 13 Synthetic knowledge consists of a combination of tacit and partly codified,
identification, regional intelligence, institutions, where he points out redundancy in the form of‘fail-safe network circuitry'as common element in innovative regions,
Furthermore, it is characterised by a high level of interfirm cooperation, a high division of labour, relations of trust and reciprocity,
Firms are able to draw on a pool of qualified labour; they can obtain a good overview of customers'needs;
and firms share a need for a uniquely skilled labour force, regardless of their business structure.
where climate and cheap labour played a triggering role); pools of specific expertise, which often is to be observed in technology dominated clusters such as the optics industry in Rochester (US) and Wetzlar (Germany), the electronics or biotech industry around Boston (US) or Aachen (Germany);
and expert interviews (for a list of interviewed experts see appendix I). 4. 1. Criteria for identifying Good Practice Regions Table 1 presents a matrix developed on the synthesis of literature in chapter 2
Concerning human resources Bangalore (and India as a whole) has comparative low labour costs, 37 of course. Not only price for labour is an advantage but also the quality of the workforce:
The Indians are seen as ambitious and capable people who are international mobile with high qualifications.
and growth to increased cross-border flows of labour, a development associated with globalization, consisting mostly of migrants returning to India
Figure 2). Route 128 is no newcomer to prosperity or industrial action (Herbig and Golden 1993.
Bremen's employment is divided into two main sectors: 29.9%of the workforce is employed in industry and 69.3%in services.
here Bremen hosts the 2nd largest Daimlerchrysler plant with ca. 15,500 employees and 300 automotive industry suppliers.
It employs 40%of all German employees in this sector (e g.,, Airbus 380, Spacelab, Columbus Space laboratory.
Change of employment in the 14 lead and growth sectors absolute (2000-2. 550 2004) Number of sectors in which the district/town is ranked among the Top 25 in 6 Germany 102,8
Index of employee development in the 14 lead and growth sectors 2000-2004 (100) 40
4%Share of the 14 lead and growth sectors in all employees (33,7%)In brackets:
services for enterprises Number of employees in the 14 lead and growth sectors 93.500 1, 20 (1, 0) Regional importance of the 14 lead and growth sectors=specialisation
for instance, the‘Bremer Innovation Agency',a‘one-stop-shop'business development support agency responsible for all innovation promotion programmes.
Overall, the institutional arrangements are characterised by a limited amount of intermediary actors, few redundancies and clear competencies (Koch and Stahlecker 2004.
and a weaker influence of trade unions compared to traditional industry regions. Within France, Montpellier has one of the lowest overall costs of employment,
salary levels are at least 10%below The french national average. There are some external factors that triggered the development from an agricultural to a scientific region.
Apart from that, the increase of students and high qualified working population(‘cadres')made a shift from a traditional conservative dominated society to a modern, dynamic and visionary one possible.
He and his (intellectual) staff can be seen as visionaries and key persons for Montpellier's development.
, the publicprivate association‘Montpellier L. R. Technopole',an economic development agency founded in 1986, responsible for the development and promotion of the‘pôles'(Voyer 1998). 13 business parks,
During the 1980s and 1990s the region went through a structural change with employment moving from traditional sectors to service and high-tech sectors like mechanical engineering and electronics (Pedersen and Dalum 2004.
today it has 13,000 students and 1, 700 employees (Pedersen and Dalum 2004). It has a priority area in ICT sector,
‘The principles of projectbased learning, often with the solution of real-life technical problems as part of the students'project work, have created skills highly demanded in product development intensive firms'(Dalum et al. 1999: 184.
Cross border differences in laws and institutions (e g. in taxation rules, labour law, traffic regulations, opening hours) hinder the regional development in this regard.
and a car industry'to a county now having‘the fastest rate of employment growth in high-tech sectors in the UK.'(
The high-tech orientation shows itself also in the employment structure: Oxfordshire has a comparably very high proportion of employment (4. 9%)in R&d activities (Oxfordshire County Council 2005.
Knowledge and science is of great importance for Oxfordshire's economy. The resident workforce is amongst the most highly qualified in the country.
and providers for high qualified employees but also as research establishments with linkages to local industries (e g.,
Prato can look back on a long history in textile industries already starting in the middle Ages. 24 From the beginning of the 1950s until the middle of the 1980s Prato experienced an extraordinary increase of the number of establishments and textile workers based on the foundation
despite a marked reduction in terms of establishments and workers compared to the 1980s. In terms of turnover and industrial employment Prato's local system ranks second in Tuscany after the Florentine area
and it is one of the leading areas in central Italy. Moreover, Prato's textile industry has a high share of international relations in terms of exports and imports (Dei Ottati 2004.
or bought from outside the district, often from countries with a lower level of labour costs.
Additionally, while the employment in the industry sector decreased an expansion of the service sector occurred (Dei Ottati 1996b,2005.
As in every industrial district, the enterprise structure in Prato is characterised by an extensive division of labour.
As most enterprises in the industrial district Prato are SMES they are also highly dependent on their employees'skills in order to guarantee high product quality.
and therefore not able to control the employees work in detail, therefore personal trust plays a major role in intraorganisational relationships as well.
but also formal institutions like the local government, trade unions, and trade associations are being helpful by‘sustaining
The two biggest enterprises within the cluster offer nearly half of all jobs, only 42 enterprises employ more than 20 employees,
and more than 200 enterprises do not have any employees at all. Because of the high specialisation and concentration there is also high competition within the cluster (Nadvi and Halder 2005;
On the one hand this means cheaper production cost due to a lower level of labour costs for Tuttlingen's producers.
%which is far below national average. 55.6%of Tuttlingen's employees work in lead and growth sectors compared to only 33.7%in overall Germany (Prognos 2006;
Change of employment in the 14 lead and growth sectors absolute (2000-1 100 2004) Number of sectors in which the district/town is ranked among the Top 25 in 2 Germany 104.2 Index of employee development in the 14 lead and growth sectors 2000-2004
(100) 55.6%Share of the 14 lead and growth sectors in all employees (33.7%)In brackets:
Reference value Germany Source: PROGNOS Zukunftsatlas 2006 Top 25-positioning in the sectors: Metal industry;
medical technology/measurement and control technology/optics Number of employees in the 14 lead and growth sectors 27,200 1. 65 (1. 0) Regional importance of the 14
'the Vocational training Centre (Berufliches Bildungszentrum Tuttlingen BBT) provides qualification in surgical instrument making, and there exists a Competence Centre for minimal invasive medicine (MITT).
universities Existence of education and vocational training institutions Special R&d support and education, instruments for research transfer Existence of technical culture Common values such as trust and reciprocity
Individual Policies for attracting high skilled Labour policies for upgrading skills R&d policies, policies for upgrading skills Attitude towards (new) technologies Professional skills
educational and vocational training institutions on meso level and specific R&d support and education programmes as well as measures fostering research transfer on the micro level.
Individually, knowledge might be attracted to a region 64 by policies aimed at attracting highly skilled labour.
International Institute for Labour Studies, Geneva, pp. 37-51. Becattini, G. 1991: The industrial district as a creative milieu.
International Institute for Labour Studies, Geneva, pp. 10-19. Cainelli, G. and R. Zoboli (eds.:
Development bodies, networking and business promotion in North Jutland. European Studies Series of Occasional Papers, 28.
Qualified Labour Migration and Regional Knowledge Economies. In: R. Hayter and R. Leheron (eds.:Knowledge, Territory and Industrial Space.
Clusterpreneurs-Promotion of high-tech clusters in low-tech regions. Aalborg. Stoerring, D. and B. Dalum (2006:
List of experts interviews Expert Interview by Place & Date Themes Prof. Dr. Harald Bathelt Susanne Kolb, personal interview Marburg, 7th june 2006 Boston Route 128, cluster Prof.
which leaves a gap of 6%compared to only 3%in the EU. Nevertheless, fast broadband technologies are already widespread,
Hungary EU DESI 2015 DESI 2014 DESI 2015 Value rank value rank value 4a1 Electronic Information Sharing%enterprises (no financial sector, 10+employees
) 16%(2014) 26 13%(2013) 26 31%(2014) 4a2 RFID%enterprises (no financial sector, 10+employees) 3. 9%(2014) 16 1
10+employees) 8. 9%(2014) 21 9. 4%(2013) 22 14%(2014) 4a4 einvoices%enterprises (no financial sector, 10+employees) n
. a.-5. 2%(2013) 27 11%(2014) 4a5 Cloud%enterprises (no financial sector, 10+employees) 5%(2014) 23 n. a.-11
%(2014) 4b1 SMES Selling Online%SMES (no financial sector, 10+employees) 9. 8%(2014) 21 9. 6%(2013) 21 15%(2014
) 4b2 ecommerce Turnover%turnover of SMES (no financial sector, 10-249 employees) 6. 9%(2014) 18 5. 1%(2013) 22 8. 8
%(2014) 4b3 Selling Online Cross-border%SMES (no financial sector, 10+employees) 3. 9%(2013) 25 3. 9%(2013) 23 6
The adoption of digital technologies is an important driver of labour productivity growth and needs to be strengthened.
an insuffi cient number of human resources for research (2015 forecast. Policy evaluation culture is weak in Hungary.
Reading clockwise, it provides information on human resources, scientific production, technology valorisation and innovation. Average annual growth rates from 2000 to the latest available year are given in brackets.
-34 (5. 1%)Business enterprise researchers (FTE) per thousand labour force (10.1%)EC Framework Programme funding per thousand GERD (EUR)(-2. 1%)Foreign doctoral students
Employment in knowledge-intensive activities (manufacturing and business services) as%of total employment aged 15-64 (0. 7%)Scientific publications within the 10%most cited scientific publications worldwide as%of total
The share of employment in knowledge intensive activities is very close to the EU average. Vulnerable areas include human resources, scientific production, innovation and technology production.
Innovation activities in small firms are at a low level with only around 17%of Hungarian SMES innovating by introducing a new product or a new process.
the employment rate has been slightly falling, particularly with the economic crisis. However, Hungary's best rankings within the EU are for the contribution of high tech and medium tech commodities to the trade balance, sales of new to market and new to fi rm innovations as a percentage of turnover,
Composite indicator of structural change 41.7:::46.2:::50.2::1. 9 48.7 11 Employment in knowledge intensive activities (manufacturing and business services) as%of total employment
0. 16 0. 27 0. 21:7. 6 0. 52 15 Europe 2020 OBJECTIVES FOR GROWTH, JOBS AND SOCIETAL CHALLENGES Employment rate of the population
1%)Business enterprise researchers (FTE) per thousand labour force (10,1%)Employment in knowledge-intensive activities (manufacturing and business services) as%of total employment aged 15-64 (0,
Composite indicator of structural change 41.7:::46.2:::50.2::1. 9 48.7 11 Employment in knowledge-intensive activities (manufacturing and business services) as%of total employment
0. 16 0. 27 0. 21:7. 6 0. 52 15 EUROPE 2020 OBJECTIVES FOR GROWTH, JOBS AND SOCIETAL CHALLENGES Employment rate of the population
Sebw continues the successful work of the E-business W@tch which, since January 2002, has analysed e-business developments and impacts in manufacturing, construction, financial and service sectors.
and Mr Dolf Tuinhout, independent consultant, who are members of the Advisory board in 2007/2008,
Employees with internet access at their workplace...86 3. 9 Summary and conclusions of ICT and e-business deployment...
98 4. 1. 3 ICT impact on labour productivity growth...99 4. 1. 4 Summary:
212 E-business in the transport & logistics industry 5 Executive Summary About this study This study focuses on the adoption and implications of information and communication technology (ICT) and e-business activity in the transport and logistics
and accounts for around 5%of employment in the EU (see Section 2. 2). The fast growth of freight transport driven to a large extent by economic decisions contributes to growth and employment but also causes congestion,
kbit/s-2 MBIT/s<144 kbit/s*figure for TLS total (EU-7) weighted by employment 13%of all companies from the sector (accounting
for 21%of employment) said that they used Voice-over-IP services. It can be expected
and to support the reorganisation of work processes. It appears that the availability of qualified personnel with specialised skills is limited quite in the transport and logistics sector.
(EU-7) weighted by employment Use of specific software systems for transport & logistics management Specific software solutions for the TLS sector, such as Cargo Handling Technology,
) Large (250+)Cargo handling technology Fleet control system ITMS*figures for TLS total (EU-7) weighted by employment Deployment of e-standards With regard to the deployment
more than a quarter of the companies (by their share of employment) felt that at least"a good deal"of their exchanges with business partners were conducted electronically (in 2007);
%Companies*saying that of your business processes are conducted as e-business (2007) 23%42%10%25%"Most""A good deal""Some""None"*weighted by employment (read:"
"companies representing x%of employment")E-commerce and e-marketing in the transport & logistics industry"E-commerce"can mean different things in the TLS sector (see Section 3. 6). In passenger transport,
35%of TLS firms (by their share of employment) said they accepted orders from customers online.
(EU-7) weighted by employment ICT adoption by European vs. US transport services companies According to the survey, US companies from the TLS industries are equipped slightly better with ICT infrastructure and systems than their European counterparts.
Ø The success of the ICT-driven innovative process depends on the availability and quality of complementary assets such as employee skills and IT know-how.
ICT usage and high levels of employee's skills complement each other, leading to skill-biased technological change and an advantage for TLS firms with highly skilled employees in adopting
and using ICT. The picture that emerges from the survey is that ICT skills are a decisive issue
The analysis is based on literature, interviews with industry representatives and experts, company case studies and a telephone survey among decision-makers in European enterprises from the TLS industries.
and e-solutions, and human resources managers. Study structure The study is structured into six main sections.
Chapter 4 assesses the impact of the developments described in Chapter 3 on work processes and employment, innovation and productivity,
human resources (notably e-skills) and new business models"."4 The i2010 policy, a follow-up to eeurope, also stresses the critical role of ICT for productivity
5"i2010 A European Information Society for growth and employment.""Communication from the Commission, COM (2005) 229 final. 6"Working Together for Growth and Jobs:
as part of the general standardisation activities of the Commission. 8 In parallel to the work of the Sebw,
including a briefing on current trends. 8 The 2006 ICT Standardisation Work Programme complements the Commission's"Action Plan for European Standardisation"of 2005 by dealing more in detail with ICT matters 9 see overview
and support functions (such as administration, controlling, procurement and human resources management). Companies in all sectors use ICT,
Therefore, definitions have been developed by standards communities to underpin their practical work. Examples include: Business:""a series of processes, each having a clearly understood purpose,
the OECD Working Party on Indicators for the Information Society (WPIIS) established an Expert Group on Defining and Measuring Electronic commerce,
What are the main impacts of ICT adoption with regard to employment, competitiveness, economic growth, transport safety, efficiency and possible cost reductions (distribution costs), technological innovation and for entering into new markets?
EU-KLEMS Growth Accounts include measures of economic growth, productivity, employment creation, capital formation and technological change at the industry level for 25 EU Member States as well as for the United states. In general
but also from a variety of national sources, in cases where no international database or statistics from the NSIS were available (e g. for hours worked by labour type).
or variables (like the percentage of employees with internet access at their workplace) and analyse their main characteristics in terms of e-business adoption and results.
Mr Javier Mendez, Madrid Chamber of commerce Mr Reinhard Pfliegl, Austria Tech Mr Dolf Tuinhout, Independent consultant Three meetings of the Advisory board were held,
It currently generates 7%of European union gross domestic product (GDP) and for around 5%of employment in the EU. The growth of goods transport within the EU,
The fast growth of freight transport driven to a large extent by economic decisions contributes to growth and employment but also causes congestion
The transport sector facts and projections Direct employment Share in total freight transport Share in total passenger transport Growth between 1995 and 2004 Expected increase until 2010 (for a transport demand 40%higher than 1998
(b) the promotion of intelligent transport systems and new technologies for a more environ-31 DIRECTIVE 2005/44/EC of the European parliament
with the appropriate measures and incentives in place, would help economic, social and environmental sustainability in Europe and attenuate negative trends, such as relocation of business activities and employment away from Europe.
& efficiency Continuous bottleneck exercise Freight transport logistics personnel and training Improving performance Benchmarking intermodal terminals Promotion
promote minimum labour standards for the sector; protect passengers and citizens; innovate in support of the above aims;
2004) Trends in European Transportation ibid. 41 Commission Staff Working Document, Annex to the COM (2006) 336 final. 42 European commission (2006.
By share of employment, firms representing 99%of the sector workforce are connected to Internet. A relevant indicator is the existence of broadband connection.
whose Internet access has a maximum bandwidth of Transport & Logistics Sector Companies with Internet access Average share of employees with internet access in firms<144 kbit/s<144 kbit/s 2
a half of all firms (75%for the Logistic subsector) representing 75%of employees operate a LAN.
%Remote access means that employees can access data from the company's computer system remotely, e g. when working from home or travelling.
In the TLS industry, 24%of firms (comprising about half of the sector's employment) enable remote access.
Sectoral e-Businesswatch (Survey 2007) 13%of all companies from the sector (accounting for 21%of employment) said that they used Voice-over-IP services (see Exhibit 3. 1-7). Yet,
the percentage of employees that uses ICT in its daily work routines has increased. The competitiveness of European industry is dependent on both the effective use of ICT for industrial
and business processes and the knowledge, skills and competences of existing and new employees. The raising of ICT skills within the EU will form part of the means by
The development of human capital, research and adaptation of new knowledge and skills is the source of growth in the competitiveness of the economy, labour force and in the quality of life.
high-skilled labour is more important than either medium-or low-skilled labour for productivity increases (see Section 4. 1). To a large extent the demand comes from SMES,
which often face substantial difficulties in attracting qualified ICT and e-business professionals in competition with larger players
which absorb most of the available expertise. 3. 2. 1 Demand for ICT skills and skills development Employment of"ICT practitioners"The e-Skill Forum, established by the EC in March
ICT users apply systems as tools in support of their own work, which is, in most cases, not ICT.
in order to test the relationship between ICT-enabled innovation and the share of employees with an university degree.
The result leads to the conclusion that changes in share of employees with a higher university degree positively affect the likelihood of conducting ICT-enabled innovations According to the survey,
Exhibit 3. 2-2 Average percentage of employees with a college/university degree (by firm size) 19 911 9 14 0 5 10 15 20
particularly in ICT strategy, security and new business solutions. 66 ICT training for employees Obtaining e-skills is not a one-off event the speed of technological change requires that skills need continually to be kept up-to date and relevant.
Employers are now less likely to see training just as a cost but also as an investment.
They also recognize that it is not enough to just have IT workers who are trained in one set of skills;
rather workers must be engaged constantly in learning and upgrading their skills profiles. About one third of the TLS companies (representing 45%of the sector workforce) said that e-business developments have a significant impact on skills requirements.
While 33%of micro enterprises with up to 9 employees confirmed this asseveration, it is true for 61%of large-sized firms (see Exhibit 3. 2-1) 64 CEPIS, Thinking Ahead on e-Skills for the ICT Industry in Europe, February 2007.65 Cedefop
E-business in the transport & logistics industry 47 The delivery of e-skills training can benefit from the development of work-based training concepts
These new forms of partnerships and flexible approaches need to be much more actively promoted. 67 In a knowledge economy driven by rapid technical change, investments in high-skilled labour
-educated employees compared to other sectors included in the 2007 E-business Watch Sectoral studies (Steel 11%;
%Exhibit 3. 2-3 Employees with university degree (by sectors) 18 11 1114 26 0 10 20 30 40 50 Retail Chemical TLS
and the specific situation in particular labour market segments and national or regional contexts. Concerning countries, Spain shows the lowest average of firms having outsourced any ICT services to external service providers (only 24%of sectoral firms,
it has to be pointed out that ICT investments does not lead to productivity growth at firm-level by itself (it depends on how the technology is used actually in business processes to innovate work processes and business routines with support of ICT).
more than a half of TLS companies (56%),representing more than three quarters of the sector's employment,
-9) Small (10-49) Medium (50-249) Large (250) Data for TLS total weighted by employment (read:"
"firms representing x%of employment"),data for size-bands in%of enterprises. Source: Sectoral e-Businesswatch (Survey 2007) Figures related to the TLS sector shows (Exhibit 3-3-1) that about a third of mediumsized companies and more than 40%of large firms
2005). 78 Technical Committee 278 (2007) Road Transport and Traffic Telematics, Open Call for Project Team Experts:
This allows for the use of existing network structures and inexpensive personal computers with almost any operating system as workplace computer.
The availability of the source code supports a high innovation grade, next to more efficient maintenance of the software which will result in a more effective effort by ICT experts.
only 4%of firms (representing 8%of employees) reported the use of digital signature frequently,
In total, about 15%of firms (accounting for 21%of employment) reported that they had such rules.
work still need to be done to achieve this end-goal. Results from the present Sebw survey show a very limited use of RFID technologies yet.
accounting for 13%of the sector's employment (Exhibit 3. 3. 5), have declared that they do use this technology.
Freight transport Logistics Data are weighted by employment (read:""firms representing x%of employment"in the sector.
Base: all companies. Exhibit 3. 3-6: RFID application areas(%of RFID users applying it for a given purpose) 82 36 29 77 0 20 40 60 80 10 0 to support the order of goods
for knowledge management are intended to help companies organising information that is relevant for employees in a way that they can easily retrieve
and information technology, this would include accounting, human resources, marketing, and strategic management. In the TLS sector the use of ERP systems is notably low (6),
Sectoral e-Businesswatch (Survey 2007) E-business in the transport & logistics industry 62 In 2007, about a fifth of firms (representing about 44%of sector employment) in the TLS industry reported the use of software solutions
in the TLS industry 6%of enterprises representing about 21%of employment say they have an SCM system.
Currently, 25%of firms accounting for about 33%of employment in the TLS industry say they send e-invoices,
and about 46%receive e-invoices (accounting for 55%of employment). Among SMES, about 24%send
Freight transport Logistics Micro (1-9) Small (10-49) Medium (50-249) Large (250+)Data for TLS total weighted by employment (read:"
"firms representing x%of employment"),data for size-bands in%of enterprises. Base: all companies.
and sub-sectors are weighted by employment; data for size-bands in%of firms. Source: Sectoral e-Businesswatch (Survey 2007) Case studies about WMS in France Geodis Group The case study about Geodis Group (see Section 5. 7) shows a typical example for automated
and has about 26,000 employees. Geodis posted nearly €3. 8 billion in net sales in 2006.
Private actors involved in freight transport include shippers, transport operators, logistics service providers, receivers (shop owners), vehicle manufacturers, consultants and various trade associations.
This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management.
and sub-sectors are weighted by employment; data for size-bands in%of firms. Source: Sectoral e-Businesswatch (Survey 2007) The relatively low diffusion of CRM technology within micro and small firms should not come as a surprise:
Employees with internet access at their workplace In this section we perform an advanced cluster analysis on the survey results using the percentage of employees that have internet access at their workplace as the main clustering analysis. With this type of analysis we use the clustering data analysis technique
and logistics sector companies in order to have three different clusters of similar companies based on the percentage of employees that have internet access at their workplace.
Then we try to assess statistical relationships between the different internet access and usage by employees at the work place clusters and different variables.
In the following table we have the clustering algorithm results for the variable Percentage of employees that have internet access at their workplace.
and number of cases for the percentage of employees that have internet access at their workplace Clusters Number of firms in each cluster Percentage of employees that have internet access at their workplace Percentage of firms having a LAN Percentage of firms having a WLAN
of employees that have internet access at their workplace, in the low cluster the mean of percentage of employees that have internet access at their workplace is 9,
%the medium cluster has a mean of 44%of employees that have internet access at their workplace
and the high cluster 98%of employees that have internet access at their workplace. Exhibit 3. 8-2 shows a clear correlation between the percentage of employees that have internet access at their workplace clusters
and the means of variables like percentage of firms having a LAN, A w-LAN and their on website.
Showing that the level of internet access among the employees (and the implied computer usage) is related to the LAN, WLAN and own company website adoption.
In Exhibit 3. 8-3 we analyse the relationships between clusters and number of employees of the companies by groups(%of firms weighting).
The chart reveals that mid sized groups tend to have relatively more companies in the low cluster compared to small and large companies,
which have relatively more companies in the high cluster, especially those with 1 to 9 employees.
Clusters of percentage of employees that have internet access at their workplace vs. LAN and W-LAN and company website usage variables (means of percentages of firms) 9 44 98 52 48 54 71 59 19 29
38 29 22 20 35 27 0 20 40 60 80 100 Low Medium High Total (EU-7+USA)% of employees
with internet access at their workplace%of firms with a LAN%of firms with A w-LAN%of firms with their own website Exhibit 3. 8-3:
Clusters of percentage of employees that have internet access at their workplace vs. company size groups (percentage of companies) 32 53 54 44 35 25 20 17 20 24 43
28 29 37 41 0 10 20 30 40 50 60 70 80 90 100 1-9 employees 10-49
employees 50-249 employees 250+employees'Total 1. Low 2. Medium 3. High Exhibit 3. 8-4 shows that the TLS sector
the Logistics services sector has a relatively bigger percentage of firms in the high internet usage by employees cluster.
Clusters of percentage of employees that have internet access at their workplace vs. Transport and Logistics sectors (percentage of companies) 42 26 18 25 24 22 33 50 61 0 10 20 30 40 50
Also the medium cluster registers the smaller relative percentage of firms with market share loss in the past 12 months (2%).So we can conclude that being in the medium cluster in terms of percentage of employees that have internet access at their workplace is positive
Exhibit 3. 8-6 shows that being in the medium cluster of percentage of employees that have internet access at their workplace also yields more relative probabilities of increasing the turnover (in the last financial year.
Clusters of percentage of employees that have internet access at their workplace vs. Increase or decrease in market share of companies in the last 12 months (percentage of companies) 36 60 3441 56 38 5953 8 2 76 0 10 20 30
Clusters of percentage of employees that have internet access at their workplace vs. Increase or decrease in turnover of companies in the last 12 months (percentage of companies) 42 51 42 44 53 41 5049 6 887 0 10 20 30 40
%of companies*saying that most/a good deal/some/none of their processes are conducted electronically (2007) 42%23%10%25%most a good deal some none*weighted by employment("firms representing x%of employment say that")Source:
Retail Chemical Steel Furniture"Most""A good deal""Some""None"*weighted by employment("firms representing x%of employment say that")Source:
The use of OSS seems to be correlated positively to the size of the company in employees.
and the composition of the demand for labour. For this study, an extended Structure Conduct Performance (SCP) paradigm was used as a conceptual framework for the analysis of ICT impacts. 110 Developed by Mason (1939) and Bain (1951),
the 109 EU-KLEMS is a database on measures of economic growth, productivity, employment creation, capital formation and technological change at the industry level for all European union member states from 1970
and finally the workforce composition and the demand for labour, most importantly with regard to knowledge and skills.
consequently, may influence the demand for labour and its composition. It may also further shape the relationships with suppliers and customers, for example with regard to collaboration intensity.
In particular, ICT was found to have positive effects on labour productivity and total factor productivity (Pilat, 2005.
i e. on a company's ability to innovate its work processes and business routines with support of ICT.
the company have faced important challenges due to the poor workforce educational level (80%of the employees don't have high school studies).
which are incorporated imperfectly in the traditional other factors included in productivity measurement and growth accounting, such as labour and intermediate inputs.
A large body of literature on skill-bias in technical change supports the finding that technical change is biased towards skilled workers,
reducing demand for unskilled labour and increasing wage 111 TFP is a measure for disembodied technical change in a production process.
while skilled jobs for educated workers are being created at a faster pace in most countries (Pianta, 2004).
thus, the application of ICT may increase the demand and wages for skilled labour and decrease the same for unskilled labour(‘digital divide').
This will help to understand the impact on employment dynamics in a more nuanced way than just assessing the net impact on total sector employment.
ICT and high-and medium-skilled labour have a positive impact on TFP growth in the transport and logistics sector.
working hours and labour quality by means of growth accounting. 2. Section 4. 1. 3 looks at the overall development of labour productivity growth in the transport and logistics
sector (from 1985-2004) and analyses the impact of ICTCAPITAL investment on labour productivity growth (in terms of gross production value per total hours worked), based on an econometrically estimated stochastic production
Spainfinlandfrancegermany Italy Netherlands United kingdom Hours Worked Labour composition ICT Capital Non ICT Capital Total factor productivity Source:
own calculations 4. 1. 3 ICT impact on labour productivity growth Labour productivity growth in the transport and logistics sector The EU KLEMS data contains consistent
Data on labour input are available in terms of labour productivity, employment, average hours worked per employee and total working hours.
The latter is broken further down in different skill categories (low, medium and high. Exhibit 4. 1-3 shows that pattern of labour productivity growth varies a lot across the EU member countries.
Only a few countries exhibit negative growth in this sector, mostly in 113 Namely Austria, Denmark, Spain, Finland, Germany and the UK.
Labour productivity growth in the transport and storage sector in the EU-15,1980-2004 (annual average growth rates in%,various sub-periods) 4. 3 3. 6 2
own calculations Expectedly and in line with other research (e g. van Ark et al. 2003), we cannot detect an acceleration in labour productivity growth similar to that reported for the U s. Gordon, 2004;
) High average growth in labour productivity can virtually only be detected for Greece (with remarkably high average labour productivity growth rates between 4. 9 and 10.3),
Overall, at least up to 2004 there seems to be little convergence among the EU-15 member states regarding common labour productivity growth patterns in the transport and storage sector.
Exhibit 4. 1-4 reports the employment growth figures. Again, a rather heterogeneous picture can be detected, partly due to the negative figures of several member countries between 1980-1995 and the highly positive growth rates of others in the period 1995-2000.
the growth rates for employment were highest in the period from 1995-2000. Overall, employment growth in the transport and storage sector has been rather modest
with few exceptions. Exhibit 4. 1-5 shows the comparison among the EU-15 countries in terms of average working hours per employee.
Again, the picture is not very clear and steady trends rare. E-business in the transport & logistics industry 101 Exhibit 4. 1-4:
Employment growth, transport and logistics services in EU-15 member countries, 1980-2004 (annual average growth rates, various sub-periods) 1. 1-0
Average working hours per employee in transport intermediation services, EU-15 member countries, 1980-2004 (annual average growth rates, various sub-periods)- 0
own calculations E-business in the transport & logistics industry 102 The impact of ICT on labour productivity growth Based on the secondary intermediate inputs and the two primary input factors
and labour input measured in working hours, broken down into three different types of skills),
E-business in the transport & logistics industry 103 With respect to the significance of the estimated parameter values we observe that except of the ICT capital stock and medium-skilled labour intensity,
all other parameter values in Exhibit 4. 1-6 are significantly different from zero at the 5%significance level. 116 Low-skilled labour
As Exhibit 4. 1-6 shows, based on the model coefficient values, the intermediate inputs intensity (0. 22) and the high-skilled labour intensity (0. 21) are found to be a key
components of labour productivity growth. With respect to skill levels high-skilled labour has a positive impact on productivity increases in the EU transportation sector while both,
medium-skilled and low-skilled labour does not have a significant impact. 117 Compared to the results of analogous modelling exercises that we performed for other sectors,
we found that labour skills play a more important role in influencing productivity in the transportation sector than in the steel industry,
but a less important role than in the financial intermediation sector (essentially banking and insurance industry).
In contrast, physical ICT-capital investment does not have a significant impact on labour productivity.
2000) who found a high impact of ICT capital on U s. labour productivity growth. 118 Finally,
"which cannot be measured by means of the data on ICT-investment available in the database. 116 t-values above 2 assure by a rule of thumb this 5%-signficance threshold of the test. 117 For medium-skilled labour the estimated
E-business in the transport & logistics industry 104 High-skilled labour intensity and intermediate inputs intensity are found to be key drivers for labour productivity growth (measured as gross production
SPF analysis points at intermediate inputs as key drivers of labour productivity growth. à ICT by itself is not the key driver of growth in this sector no P. 2 TFP growth
and high-and medium-skilled labour have a positive impact on TFP growth. Only high-skilled labour had a positive growth impact àindicates a skill-biased technological change with ICT-capital as its complementary factor driving growth of the transport sector.
yes) With regard to Hypothesis P. 1, there is mixed evidence On the one hand, growth accounting confirms that, on the whole, ICT-capital has played a positive role in this industry in all countries.
due to greater detailed structure on the labour inputs decomposed on skill-classes and the inclusion of intermediate inputs,
the direct positive link between ICT-capital investments and labour productivity growth is probably much weaker.
Rather, the share of high-skilled labour and the intermediate inputs intensity appear to be of higher importance.
Figures for sector totals are weighted by employment("firms representing x%of employment in the sector/country"),figures for size-bands in%of firms.
e-collaboration and ICT-enabled innovation This section explores how the following two factors are linked with the degree of ICTENABLED innovation in a company. the skills composition of a company (measured as the percentage of employees with a college
In other words, firms that combine high levels of ICT and high levels of worker skills have better firm innovation performance.
Firms characterised by a higher share of employees with a university degree are more likely to conduct ICT-enabled innovations, in comparison with their peergroup in the same sector.
The main explanatory variable is the share of employees with a higher university degree. To additionally account for the effect of internal capacity on innovation,
Except for the variable on the share of educated employees, all independent variables are dummy variables,
To analyse the relationship between ICT-enabled innovation and the share of employees with a university degree,
Changes in share of employees with a higher university degree positively affect the likelihood of conducting ICT-enabled innovations.
Effect of employee skills on ICT-enabled innovation activity Independent variable a Coefficient Standard Error%of employees with higher university degree (G11) 0. 005**0. 002 IT practitioners
(E1) 0. 920***0. 117 Less than 249 employees (Z2b)- 0. 014 0. 230 Firm founded before 1998 (G2)- 0. 046 0. 103 Model
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
information (B9) 0. 599***0. 122 Less than 249 employees (Z2b)- 0. 183 0. 185 Firm founded before 1998 (G2)- 0. 016 0. 098
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
D4) 0. 300***0. 095 Less than 249 employees (Z2b)- 0. 128 0. 184 Firm founded before 1998 (G2) 0. 007 0. 093 Model
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
workflows and importance of departments and employees working in them. Outsourcing also implies organisational changes; this subject is dealt
) Traditionally, deploying business innovation on a larger scale took time and required considerable involvement of resources and employees.
On the other hand, tools, such as email, knowledge management systems, wikis or instant messaging, considerably improve the process of innovation in knowledgeintensive and service-oriented sectors with informal, unstructured and spontaneous type of work, such as
and includes the share of employees with an internet access at their workplace, internet connection capacity and the use of LAN, Intranet and Extranet.
In addition, the regression includes dummy variables controlling for the percentage of employees with a higher university degree, firm size, age and country of origin.
B3) 0. 362***0. 060 IT practitioners (E1) 0. 571***0. 195%of employees with higher university degree (G11) 0. 003 0. 004
Less than 249 employees (G2)- 0. 312 0. 338 Firm founded before 1998 (Z2b)- 0. 071 0. 174 Model diagnostics N=651 R-squared=0
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
The intensity of ICT applications and in particular IT-skilled employees are the major drivers of organisational changes.
Market rivalry and the intensity of ICT use Independent variable a Coefficient Standard Error Increasing rivalry (G8a) 0. 633**0. 257 Less than 249 employees (G2)- 3. 637
B3) 0. 070***0. 020 Firm founded before 1998 (Z2b)- 0. 306**0. 149 Less than 249 employees (G2)- 0. 073 0. 315 Model
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
017 Less than 249 employees (G2) 0. 050 0. 237 Firm founded before 1998 (Z2b) 0. 211*0. 125 Model diagnostics N=932 R
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
whereas older companies might need to adapt to new market conditions. 4. 4 Summary of impact analysis Productivity and employment Regarding the role of ICT capital in the transport and logistics sector,
Little evidence for a significant role of (and neither for significant correlation between) ICT capital in terms of boosting labour productivity growth;
Little evidence for convergence of the EU Member Countries in terms of common patterns regarding GVA and labour productivity growth.
which enabled both the decomposition of the labour input by skill class and the inclusion of intermediate inputs, revealed that the direct linkage between ICT investment
and labour productivity may actually be much weaker than the evidence from more aggregate studies suggests.
Third, the success of the ICT-driven innovative process depends on the availability and quality of complementary assets such as employee skills and IT know-how.
and IT-skilled employees are the major drivers of organisational changes. Hardware infrastructure, in contrast, offer companies less potential to create a competitive advantage compared to software applications and skilled employees.
Second, ICT usage has a positive impact on company performance, i e. firms that introduced ICT-enabled innovations were more likely to have experienced a sales growth
and online access for both, clients and employees. The main benefit of this solution is a superb‘justin-time'performance at the firm allowing customers to online view
Valdemoro (Madrid), Spain No. of employees: 388 Sector: Transport Main business activity: Road Passenger Transport. Regular.
AISA is a road passenger transport company that operates in Spain and mainly in interurban regular bus lines, with a total of 388 employees.
which manages the timetables of all individual workers and automatically links these data to the payroll application.
Operations Human resources Vehicles Services Cash management Accounting systems Reporting systems Ticketing systems (sales) The system has been customised to the company needs for reporting, accounting, controlling sales, information analysis
The main changes concern tasks and responsibilities of the personnel, internal work processes, and some personnel changes.
The system has had some implications for the company's office workers (about 50 employees. As processes and applications are now running in remote mode (and no longer in local mode),
Employees have been trained to use the new system properly. The Telemat system of RFID chip for fuel subsidy has very positive impacts in the cost reduction thanks to the fuel subsidy save.
Due to these improvements in work flows and information management and the resulting improvements in cost efficiency, the system contributes to the competitiveness of AISA and leads to better customer satisfaction.
The elimination of manual processes and duplications of work has improved greatly company operations, planning and decision making.
Genas, France No. of employees: 42 Main business activity: Transport and logistics Primary customers: Companies Year of foundation:
Continuously training of its staff to keep abreast of new information technologies and logistics management. Offering innovative solutions based on know-how, pro-activity and dynamism.
The warehouse employees are in charge of loading the truck (or register the truck that will unload the goods). Warehouse employees performing these tasks are still very paper oriented at AIT;
therefore the list of goods is transmitted on paper to them. They sign the list and return the document if all is fine.
Therefore employees had no choice and even perceived the new solution as a kind of rescue. 5. 2. 4 Lessons learned The implementation of the new transport management solution at AIT allowed the company to achieve great benefits.
Madrid, Spain No. of employees: 3, 633 Sector: Transport Main business activity: Road passenger transport Primary customers:
and also is one of the largest ones in Spain, with a total of 3. 633 employees.
10 of them internal IT workers and 10 external workers. The project is very profitable,
and also it gives real-time information to the drivers, coordinating the work with the traffic chiefs.
All these ICT solutions have been introduced with accompanying training programmes for employees to ensure the best possible use of the systems.
This reflects that the way these complex systems are used actually in the daily work is more important than the mere adoption of the technology itself to achieve positive impacts.
ALSA managed to increase the labour productivity through the use of these ICT systems. The resource planning system in particular has led to a big resource optimisation and spectacular productivity increases,
in specific work areas of 200%(i e. one employee can now accomplish the work which required three employees before the system was introduced).
This productivity gains translates into an increase in competitiveness. The reduction in the number of operation errors is another positive impact of this system, making production processes more reliable and effective.
The adoption and usage of the new ICT systems also have had important impacts on the employment side,
and professional workers who are capable of taking full advantage of the ICT systems. Sometimes this point is also a challenge for companies such as ALSA
as the employees reckon the company efforts to improve the processes and competitiveness of the company via these innovations and take an active role to take advantage of them.
For example, one of the main challenges of the Integrated Sales systems implementation was finding the right employees for the development and operation of the system.
ALSA used both internal and external workers. The development and maintenance of certain parts of the system,
i e. the workers. The planning tool is adopted highly in the company, and it has a lot of users.
and skilled worker to use it correctly. The training programs are crucial to prepare the users for the new tools.
but one of the most important challenges has been the high resistance to changes in the organisation of work by some employees (80%of the employees don't have high school studies).
and usage of the system by the employees, analysing the usefulness of the applications to ensure the most efficient and optimal adoption of the systems. 5. 3. 5 References Research for this case study was conducted by Samuel Gabaly,
1953 Number of employees: 270 Turnover in last financial year: about € 230 million Primary customers:
The terminal employee manually enters the complementary information filled by the customer into the CEMAT transport management system.
The terminal employee enters the data into the CEMAT transport management system and gives the signed paper to the customer (or his driver).
and checkout process at CEMAT terminals. 5. 4. 3 Impact CEMAT employees and the majority of CEMAT customers are glad about the new process.
and simplifying the process for employees. Standardisation of the check in/checkout process for all CEMAT terminals.
CEMAT employees have adapted well to the new process and IT solution. CEMAT has the full support of the terminal directors who were the key persons to introduce the new processes in their terminals.
Terminal employees were used already to use information technology and the new process has simplified their working tasks.
1998 Number of employees: 17,078 Turnover in last financial year: about € 685 million Primary customers:
the sales system sends the inquiry (entered by a CFR employee into the computer) to the reservation system
as well as to equip train staff with mobile devices connected to the systems to sell and print tickets in the train.
& e-reservation solution has been felt by CFR employees in charge of ticket selling. Since the working processes for ticket selling and reservation needed to be redesigned completely,
approximately 5000 CFR employees working in this area have been affected heavily. Before the deployment of this solution, there was a manual system in place
For example, employees working at the selling points had to spend a lot of time at the end of the day to count the tickets sold.
These people were then in charge to train the respective CFR employees on the new business processes.
depending on the job of the employee. E-business in the transport & logistics industry 147 There was no resistance from employees towards the new e-ticketing
& e-reservation system since they were pleased very with the new solution: it improved their working conditions and significantly reduced manual work.
For example, all selling points have been equipped with new furniture and air condition. Before the solution deployment the sales people had to work overtime at the end of the day to count the tickets sold,
a non paid task that is not required anymore. The fact that CFR did not reduce the number of employees following the implementation of the solution contributed to this good user adoption.
The feedback from CFR employees and CFR customers about the solution is very positive. The lack of data available before its implementation as well as its recent deployment does not allow the company to quantify the benefits achieved so far
but the intangible benefits can be summarized as follows: The implementation of the system allows CFR Calatori to provide a better service to customers:
Another benefit is the reduction of manual work and the optimisation of working process which leads to a more efficient production mode of the ticket selling.
'The organisation reckons that it might have been beneficial to hire an external consultant to analyse the existing process model
Therefore, at least E-business in the transport & logistics industry 148 one member of the project team should be accomplished an expert for this type of business.
1938 Number of employees: 166,000 (SNCF) Turnover in last financial year: 6, 595 million euros Primary customers:
the higher the average speed of the trains, the fewer wagons, locomotives and staff are needed.
The project team was composed of SNCF employees from the customer service marketing and IT departments. Sales and invoicing were involved also.
and this issue needs to be respected by all employees. Before the implementation of the solution, the majority of employees had to concentrate their efforts on the correct operation of the transport.
With e-services, the management and correctness of the information is as important as the rail service itself.
It is quite difficult to change the mindset of employees who have worked in a specific way for years
but it will take time until the new working modes will be adopted fully by the majority of employees.
the employees trained and the quality of information improved. E-business in the transport & logistics industry 153 The final key point is to consider the sales channel of e-services when planning such a project.
The sales persons at Fret SNCF manage the promotion of e-services. If they do not believe in the solution,
and has about 26,000 employees. Geodis posted nearly €3. 8 billion in net sales in 2006.
1995 Number of employees: 26,000 Turnover in last financial year: about € 3, 785 million (revenues) Primary customers:
Self-managed employees. With system-directed operations available to the users supervisory intervention is held to a minimum.
Workers do need not to take the manager away from his/her primary job. Rather, the Warehouse management system directs the employee's actions based on the E-business in the transport & logistics industry 158 user profile and location within the facility.
Managers have more time to make higher level decisions. 5. 7. 4 Lessons learned For global logistic service providers,
The resulting increase in process efficiency has translated into sizable labour efficiencies. ICT has contributed in increasing the competitiveness of logistics companies in significantly reducing operational costs
No. of employees: 396 Main business activity: Independent intermodal transport operator Primary customers: Haulers, logistic companies, carriers Year of foundation:
A confirmation message is sent each time a train arrives or leaves a terminal. A punctuality message is sent
The information of the Goal system is accessible for Hupac employees only, who then decide what information is provided to the customer.
the impact of this solution on the employees previously in charge of searching information on the different railway information systems was significant.
Thanks to internal change management including involvement of employees in the project and communication and training,
Nevertheless, even if the technical solution works well, it is important to outline that this solution is dependent on the availability of the GPS and network.
and online access for both, clients and employees. The main benefit of this solution is a superb‘justin-time'performance at the firm allowing customers to online view
Colchester, UK No. of employees: 50 Sector: Transport & Logistics Main business activity: Transport, distribution, Warehousing Primary customers:
'This solution, designed by a company called Techwire in close cooperation with the Cammack Senior management Team, automates transport, warehousing,
The project team consisted of Cammack senior management and consultants of the supplier company which was developing the software.
or entered into the system by the Cammack employee), putting them into a diary and allow the traffic planner to easily put the jobs together on the screen into a load.
An employee will monitor the job, accept it and send an acceptance receipt to the customers.
and can be used by the transport planning employees. The system automatically groups jobs together. It also gives the information E-business in the transport & logistics industry 168 about the trucks available.
which disables users from carrying out work for customers who have a bad credit record. 5. 9. 3 Impact The implementation of the‘Truck Business'solution required a significant change in working culture at N c. Cammack
& Son especially for employees in charge of managing the traffic plans. They were used to writing everything on paper
Following training sessions and change management mentoring by the senior management team all employees were convinced quickly about the benefits of the solution for their daily working process,
Thanks to the improvement of operational efficiency, N c. Cammack & Son is able to perform more jobs today with the same number of employees.‘
N c. Cammack & Son is gathering new customers through word of mouth promotion done by their current clients.
Although N c. Cammack & Son initially did face resistance from their employees, the company achieved great results with the implementation of the solution that can be summarised in a time saving and operation efficiency increase as well as improved customer service.
Thanks to the usage of‘Truck Business',N c. Cammack & Son remain competitive in its core markets trough improving operational performance while keeping the number of employees constant.
Milan No. of employees: 1400 employees Sector: Logistics Main business activity: Logistics and forwarding services Primary customers:
All sectors Year of foundation: 1993 (Saima bought Avandero) Turnover in last financial year (€: 675 million Most significant market area:
a team of three employees of the IT department developed and deployed a flexible solution in a timeframe of about 6 months.
and trace solution includes the cost for three full time employees over 6 months for the development, deployment and training.
a Saima Avandero employee has to enter it into the central system. This creates a lot of additional work.
One employee is assigned to manage the supplier relationships on a full-time basis. The quality of data received from the suppliers is an important issue for Saima Avandero..
Sometimes the quality of data is poor and sometimes data is not even available at all.
Since Saima Avandero works with a multitude of small suppliers (sometimes up to five suppliers for one single transport) it is very difficult to get them engaged to provide the requested data (either through the common system or in any other way.
Another important issue is the additional work generated by the solution. The manual work generated by the data collection from suppliers
and entry into the system is costly and time consuming. In conclusion, the impact of the solution implementation is expected not as well as
The best would probably be to deploy a solution that works independently on the different suppliers,
Oslo, Norway No. of employees: 75 Sector: Transport Main business activity: Information provider to public transport passengers Primary customers:
and do marketing and promotion for their companies. Trafikanten today is the dominating information service provider due to the fact that users can compare different transportation modes on Trafikantenswebsite.
7 stakeholders and 3 full time project officers from Trafikanten assisted by an external consultant.
Thanks to the good knowledge of all their partners by Trafikanten and their habit to work with them, the project went very smoothly.
The company counts about 55 employees and its central office is located in Munkfors. In order to include the planning of the traffic,
Munkfors, Sweden No. of employees: 55 Main business activity: Operation of public bus and train transport Primary customers:
but works with different transport operators that own the vehicles. The operators are contracted by the regional PTA.
and support of the solution and 2 employees are working fulltime on these tasks. FRIDA allows collecting
and medium-skilled labour has a positive impact on TFP growth. ICT usage and high levels of employee's skills complement each other,
leading to skill-biased technological change and an advantage of firms with highly skilled employees in adopting
and using ICT. Therefore, investments in training and skill-formation are at least equally important as investments in ICT capital itself
companies representing about 80%of employment in the sector expect ICT to matter in all these fields in the future (see Exhibit 6. 2-2). Exhibit 6. 2-1:%
*Data weighted by employment("firms representing%of employment in the sector expect that ICT will have a high/medium impact on Source:
Provide incentives for ICT training of employees. Improve skills related to the reorganisation of working processes and procedures,
ICT usage and high levels of employee's skills complement each other, leading to skill-biased technological change and an advantage of firms with highly skilled employees in adopting
and using ICT. The European e-Skills Forum established by the European commission and the CEN Workshop Agreement (CWA) could be appropriate forums to discuss the issue of ICT skills development in the TLS sector.
however, between ICT capital and economic variables such as productivity and employment dynamics. Instead, ICT has indirect effects that occur via innovations that are carried out
Technical change, inequality and the labour market. Journal of Economic Literature 40 (1), 7-72. Allen et al, University of Westminster, January 2003, Modelling policy measures and company initiatives for sustainable urban distribution Final Technical Report.
Innovation and Employment. Edward Elgar, Cheltenham and Northampton. EEA Report No 1/2007: Transport and environment:
Impact of ICT on Corporate Performance, Productivity and Employment Dynamics. Special study by e-Businessw@tch, available at www. ebusiness-watch. org Lee, H. L. 2000.
Innovation and employment. In: Fagerberg, J.,Mowery, D. and Nelson, R. eds..The Oxford Handbook of Innovation.
‘Market Structure and the Employment of Scientists and Engineers',in The American Economic Review, vol. 57, pp. 524-531.
Technical Committee 278 (2007) Road Transport and Traffic Telematics, Open Call for Project Team Experts: http://www. cen. eu/cenorm/tc278. pdf Terwiesch, C. and Wu, Y. 2004.
Oxford Handbook of Work and Organisation, ed. Ball, R.,Tolbert, P. and Ackroyd, S.,Oxford university Press, Oxford.
only companies with at least 10 employees were interviewed. For the retail and transport sector in Project 2, the population also included micro-companies with fewer than 10 employees,
reflecting their important contribution (see Exhibit A1. 2). Sector totals are therefore not directly comparable between the two projects.
with at least 10 employees) that were active within the national territory of one of the eight countries covered,
24,25 911 911 1. 2 Steel 27.1-3, 27.51-52 449 1. 3 Furniture 36.12-14 Companies which have at least 10 employees and use computers
Strata by company-size Target quota specified Size-band Project 1 Manufacturing Project 2 Retail & transport Micro enterprises (up to 9 employees
)--up to 30%Small companies (10-49 employees) up to 40-50%*at least 30%Medium-sized companies (50-250 employees) at least 40-45%*at least 25
%Large companies (250+employees) at least 10-15%*at least 15%*depending on sector 129 NACE Rev. 1. 1 was replaced by the new version NACE Rev. 2 in January 2008.
7 No answer on no. of employees 0 8 0 1 9 1 6 24 1. 8 Company does not use computers 35 75 32 76 35 5 110 398 1. 9 Company
<10 employees (manufacturing only) 90 30 7 0 78 0 670 21 1. 10 Not targeted sub-sector (transport only) 0 16 0
by employment, and by the number of enterprises. 130 Weighting by employment: Values that are reported as employment-weighted figures should be read as"enterprises comprising x%of employees"(in the respective sector or country.
The reason for using employment weighting is the predominance of micro-enterprises over other kinds of firms.
If the weights did not factor in the economic importance of different sized businesses, the results would be dominated by the percentages observed in the micro size-band.
Weighting by the number of enterprises: Values that are reported as"x%of enterprises"show the share of firms irrespective of their size,
i e. a micro-company with a few employees and a large company with thousands of employees both count equally.
where employment-weighting is implicit. 131 The EU-7 are composed of those countries which were covered by the survey.
Confidence intervals for employment-weighted data are highest for the steel industry, due to the small number of observations and because this sector's structure makes it more sensitive to data weighting
Employment-weighted data for this industry therefore have lower statistical accuracy than for the other sectors.
"if weighted by employment unweighted Sectors (aggregate, EU-7) Chemical, rubber and plastics 10%8. 0%-12.4%6. 5%-15.0%8. 4%-11.9%Steel 10
and frontier The stochastic production possibility approach is not a method for directly estimating impact factors on labour productivity.
a constellation can be created that allows to draw conclusions about the contribution of single variables on labour productivity.
Gross Value Added, Labour Input and Labour Productivity in the transport and logistics sector (1980-1995,1995-2000 and 2000-2004) Gross Value Added (GVA)( 1
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