Rural businesses are struggling. Due to a lack of connectivity, skills, and access to emerging technologies, rural SMEs, in particular, have difficulties competing on the Internal Single Market. This leads to a “double digital divide”[1]: a lack of connectivity on the supply-side, and a lack of digital skills for emerging technologies on the demand-side. In addition to an exacerbated lack of digital skills in rural areas, the urban-rural gap in broadband penetration has remained virtually unchanged between 2010 (16%) and 2019 (14.6%).[2]
To help bridge this gap, DIGITAL SME is supporting the new AURORAL project to place Europe’s rural areas at the forefront of digital innovation. AURORAL aims to increase connectivity and digitalisation of rural areas by providing a comprehensive digital environment of interoperable service platforms. This connected digital environment will allow rural businesses, the overwhelming majority of which are SMEs, to utilise emerging technologies and stay competitive on an increasingly fierce and international market.
Through the participation in AURORAL, DIGITAL SME further delivers on its objective of Sustainable Digitalisation. It ensures that a vital part of European SMEs—those located in rural areas—are not left behind in the digital race. This is especially crucial for SMEs in sectors such as agrifood, crafts, tourism, and retail, which account for a substantial share of Europe’s GDP. By providing the possibility to use emerging technologies and embark on their own digitalisation journey—facilitated by other innovative ICT SMEs and their ecosystems—rural businesses can stay competitive and create much-needed jobs and prospects in their communities.
The AURORAL project focuses on “smart villages”, a relatively new paradigm in the EU policy landscape aiming for sustainable rural development. Smart villages are understood as “communities in rural areas that use innovative solutions to improve their resilience, building on local strengths and opportunities.”[3]
By providing digital tools and services in an open and transparent online marketplace, AURORAL’s digital environment will allow rural communities to share and exchange data, innovative products and services, matching technology and end-users in need of it. This marketplace will be supported by an open innovation ecosystem of developers, service and application providers as well as platform operators and user communities.
AURORAL will be implemented and tested in five EU member states and in five different domains: smart health, smart energy, smart mobility, smart farming and smart tourism. In addition, SMEs selected through a competitive open call will validate AURORAL’s solution. This will allow the project consortium to assess and demonstrate the acceptance by the local and regional ecosystem actors and end-users.
The project of more than €16 million is led by the Alentejo Regional Development Agency. Other partners include rural innovation stakeholders (Smart Innovation Norway, Catalonian Bioenergy Cluster, Kemi technology park in Lapland, etc.), world-class technical research centres and universities (CERTH, Polytechnic University of Madrid) as well as digital SMEs and leading industrial companies.
It takes a village to build a community. And from DIGITAL SME’s ‘village’, an extensive network of digital SME innovators, deep expertise and valuable knowledge in sustainable digitalisation will be brought to the table. DIGITAL SME’s role will be to contribute to ecosystem building, connecting the members of rural innovation ecosystems (digital SMEs, local universities, industrial bodies) and local and regional authorities managing the rural development funds. In addition, DIGITAL SME will contribute to the management and promotion of the SME open call.
DIGITAL SME will also develop policy and standardisation recommendations to ensure the interoperability of the project architecture, as well as recommendations on developing an investment platform that will support investors and private stakeholders in providing new services.
Learn more about AURORAL by visiting the project website.
The objective of a climate-neutral economy presents enormous challenges for the energy sector. Renewable energy—including thermal technology—is one of the solutions to achieve climate neutrality by 2050. Finding a way to effectively “turn buildings into batteries” by interlocking their thermal inertia with the energy grid is the goal of the SABINA project.
On 29 October 2020, DIGITAL SME organised a Policy Webinar on “Digitalisation in the Energy Sector: Thermal Energy contribution to the Green Deal”. This event highlighted the past four years of work done within the SABINA project. It presented the possibilities of scaling up energy-related technologies that use IoT standards to reach maximum benefits for producers and consumers in the energy market while increasing climate neutrality at the same time.
How can technologies such as SABINA contribute to the overall energy efficiency of buildings and extend such benefits to neighbourhoods and even cities? And how can digitalisation and standardisation address these challenges? At the Policy Webinar, experts in energy, construction, and digitalisation engaged in an interactive discussion to discuss and answer the questions above.
First, Antonio Kung, CEO of Trialog, and a key partner in H2020 project InterConnect underlined that to create a positive impact in the energy market, new technologies should be developed through a flexible and interoperable ecosystem in two main areas: energy and ICT. In addition, Mr Kung gave his vision on how policy and standardisation can help the energy domain, providing guidance for IoT use cases, semantic interoperability, IoT data frameworks, IoT trustworthiness and interoperability. He also asserted that digitalisation in the energy sector shall contribute to an enhanced ecosystem that provides benefits to all stakeholders and enable them to better understand the market needs.
Next, Andrew Bolitho, Senior Energy Management Consultant at SMS, presented the achievements and the benefits of SABINA. He said that “If we want to achieve climate neutrality, then the entire energy system has to be decarbonised. Moreover, our behaviour and interaction with the market have to change significantly. SABINA is essential in addressing these objectives”. Mr Bolitho stressed that SABINA is effective in creating flexibility and highlighted its strong capability in managing energy costs. He concluded his speech with a call for action to governments to provide policies that support flexibility.
Then, the Policy Webinar continued with the roundtable discussion which saw the interesting contribution of participants from the public and private sector. They brought their knowledge and experience concerning how different stakeholders could contribute to the EU’s energy targets by embracing digitalisation in their core activities.
The construction sector is facing several challenges related to the green transition, firstly in relation to the turnover rate of buildings that should be higher than 2% per year, as stressed by Vittorio Cossarini (President of AssoESCo – Italian Association of Energy Service Companies). Mr Cossarini affirmed that digitalisation is important with regard to the way we design and build, as well as the prediction of energy consumption in buildings using Artificial Intelligence. Pietro Bertelli from Alperia Bartucci highlighted how AI and a higher level of automation can help Europe reach its climate neutrality goalsThrough the presentation of “The Concrete Initiative”, Francesco Biasioli (Secretary General of ERMCO) explained how thermal inertia works in buildings. “We need to work with systems which allow dynamic energy modelling and SABINA is doing exactly that”, Mr Biasioli explained before stressing the need for architects and people involved in planning and execution of construction to take into consideration solutions that help to optimise the use of thermal energy, transforming buildings into “batteries” and enhancing energy efficiency.
Figure A: Scaling up energy efficiency using IoT and Smart Cities
Omar Dhaher from the European DIGITAL SME Alliance discussed standards identified for the project and their role in enhancing data-sharing and interoperability with other stakeholders’ systems and solutions. According to Mr Dhaher, the real value of solutions such as SABINA is their ability to share and use data to provide better information to consumers, prosumers, and producers. However, for SABINA and similar digital solutions to effectively work, policymakers need to acknowledge the need for accessible, fair, and open data. Standardisation in the area of data exchanges and interoperability can be strategically viewed as a vehicle to promote and strengthen competition in the energy markets.
SABINA and similar IoT solutions can act as a middle-ware between smart cities and the common European data spaces, a key element of the EU Data Strategy to enhance access to data. At the same time, allowing access to data will provide more information regarding de-carbonisation and contribute to the Green Deal goals. As such, SABINA is an interesting manifestation of the twin transition, i.e., providing environmental solutions through digital transformation.
At the end of the session, speakers unanimously agreed that data sharing and interoperability in the context of Smart Cities and Common European Data Spaces can achieve more flexibility in the energy mix and increase competition for efficiency. In this framework, standards come into play as key enablers of innovative solutions, which enable the energy market to grow and achieve the Green Deal by 2050.
For more information on the SABINA project, visit the project website here: https://sabina-project.eu
On 15 December 2020, the European Commission published two pieces of legislation that will update the rules for digital companies in Europe: a Digital Services and a Digital Markets Act, collectively known as the Digital Services Act package. In a nutshell, the Digital Services Act (DSA) focuses on illegal content. On the other hand, the Digital Markets Act (DMA) promises to tackle the dominance of large gatekeeper platforms like Google, Apple, Facebook, Amazon and Microsoft (GAFAM).
At DIGITAL SME, we believe that Europe needs an open, fair, and competitive digital ecosystem that enables innovation. Continuous dialogue and information flow between the stakeholders can help to create a better system for all. Therefore, DIGITAL SME is organising an online exchange with the European Commission about the Digital Services Act package.
Join us for a debate between policymakers and representatives from small and medium-sized enterprises (SMEs) to discuss the proposed solutions for a fair and competitive digital ecosystem. This will ultimately allow SMEs and a wider audience to gain first-hand insights about the proposals of the Digital Services Act package, which may substantially shape digital markets in the years to come.
15.00 – 15.05 | Welcome by DIGITAL SME |
15.05 – 15.15 | Opening Statement by Prabhat Agarwal, Head of Unit Digital Services and Platforms at DG CONNECT, European Commission |
15.15 – 16.00 | Panel discussion: How to create a fair and competitive digital environment for SMEs?
Speakers:
Moderated by DIGITAL SME |
16.00 – 16.15 | Closing remarks
|
Today, the European Commission has published its long-awaited rules for digital services and digital markets. One of them, the Digital Markets Act, defines “do’s and don’ts” to address imbalances in digital markets. “Large gatekeeper platforms are dominant across different fields, e.g. search and browser, app stores and operating systems, or social media and instant messaging. Their dominance allows them to attract ever-more users and collect more data about customers, which confirms their dominance even more. We are happy that the European Commission is taking bold steps to bring back fairness to digital markets”, said DIGITAL SME President Dr Oliver Grün in a first statement.
Power imbalances and the practice of limiting access to newcomers is not new in digital markets. In the 2000s, the so-called “browser wars” served as a first indicator of what was to come. In 2009, DIGITAL SME backed the Commission on its antitrust investigation against Microsoft for tying Explorer to Windows. Similarly, in 2016, DIGITAL SME spoke out against the dominant position of Google’s Playstore on Android phones. “In both cases, we decided to speak up because we believe that Europe needs an open and competitive digital ecosystem that enables innovation”, said President Grün. However, the approach to tackle these issues with competition law has not been a full success. As Commissioner Breton told POLITICO Pro Morning Tech today: “We have tried in the past to address gatekeeper issues through competition cases. But these cases took years to instruct.”
With the Digital Markets Act, regulators will have the option to address certain unfair practices of large gatekeeper platforms. “We welcome that the European Commission proposes targeted legislation rather than a one-size-fits-all type of legislation. The majority of problems are caused by a handful of players, and therefore, a targeted approach is the right way to go”, remarked President Grün.
The second document published today is the Digital Services Act. The DSA will focus more on the “wild west” nature of the internet, i.e. illegal goods and content. Rampant disinformation, election interference on social media, and the sale of faulty goods are just a few examples of challenges the Act aims to tackle.
In an effort to harmonise the rules of how goods and services are bought and sold online in Europe, the DSA will upgrade the 20-year-old e-commerce Directive, which regulated the distribution of content online while limiting the liability of internet service providers and intermediaries like large platforms. This limited liability enabled the success of many business models like YouTube or Facebook which live off third-party content that is not moderated in real-time.
The Digital Services Act now attempts to curb some of the negative effects of limited liability while upholding the general principle. At the same time, it aims to create harmonised rules across Europe, e.g. for notice-and-action mechanisms. “We are happy that also in the DSA, the Commission refrained from taking a one-size-fits-all approach,” said President Grün after a first analysis of the document.
Stricter rules will apply to platforms with at least 45 million users: they will have to collaborate with regulators and fulfil data access requirements for researchers. Further, the DSA includes Know-Your-Customer obligations, a Good Samaritan principle and a new enforcement mechanism. And here comes the stick: Companies that don’t comply with the legislation could be fined up to six per cent of their annual revenue.
If you’d like to know more about the DMA and the DSA, you can read the European Commission’s official press release here. You can find our detailed position paper on the Digital Services Act here. Also, stay tuned for a debate about the impact of the DMA on SMEs, which we will organise in January 2021! To keep up with all our updates, you can subscribe to our newsletter and mailing lists here!
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Brussels, 2 December 2020 (DIGITAL SME/SBS). Small business representation at ETSI will remain strong for the next mandate period! At Tuesday’s General Assembly elections, DIGITAL SME/SBS expert Massimo Vanetti was elected as vice-chair of the General Assembly. Mr Vanetti’s election formally recognises his (literally) far-reaching engagement for the interests of small businesses in standardisation, including an enormous success achieved when India adopted oneM2M as a national standard earlier this year.
DIGITAL SME Secretary-General Sebastiano Toffaletti was re-elected as member of the board. “On behalf of SBS, I am committed to championing inclusiveness of SMEs and other under-represented stakeholders in ETSI”, Mr Toffaletti said in a statement after his re-election. “It is crucial to show SMEs in particular that standards can be a tool to facilitate their digital transformation and innovativeness—not just a boring and incomprehensible ‘black box'”.
Continuing the strong signal for the inclusion of women in standardisation, Nevania Nikoloski was as re-elected chairwoman of the General Assembly. Ms Nikoloski is the first woman to hold the position since the ETSI’s foundation in 1988. Representing Swiss company Phonak Communications AG, Ms Nikoloski’s election underscores inclusiveness in ETSI.
The election of DIGITAL SME representatives by the ETSI General Assembly underscores increasing awareness of SMEs’ as Europe’s motor of innovation and the digital transformation of the continent’s economy. While the ETSI membership counts over 900 organisations, including all the major global tech companies, the election of Nikoloski, Vanetti, and Toffaletti affirms strong support for European small businesses and digital sovereignty.
Sustainability and digital transformation are two megatrends that go hand in hand. Discussions about the ICT sector’s potential to become greener often focus on the climate impact of hardware: rare minerals and how they are sourced, electronics waste, or energy consumption of devices. Several labels attempt to certify sustainable hardware products to give consumers the possibility to “think green” when buying smartphones or computers. Although awareness about the importance of software as a factor in green tech is increasing, until recently, there was no such label for software.
In 2019, a team of researchers led by Professor Stefan Naumann from the Environmental Campus Birkenfeld introduced criteria for a potential certification scheme for sustainable software: the “blue angel label for resource- and energy efficient software”. Among the criteria to be certified are:
These and other criteria can help to reduce the energy consumption of devices and significantly extend their life cycle by avoiding premature obsolescence, which is an issue of significant concern to SMEs with limited resources. Software producers can now apply for the label and certify their software in three areas energy efficiency, resource efficiency, and transparent interfaces.
In our position paper on Sustainable Digitalisation, DIGITAL SME has mentioned openness and interoperability as crucial factors in green technologies.
The catalogue of criteria for the “blue angel” label states that using standards for open data formats is “decisive for avoiding dependence on a software product (customer lock-in), which can enforce unnecessary resource consumption both in the case of keeping an inefficient product and in the case of a (costly) switch to another product”[1]. The German Competence Centre IT economy is compiling a list of “recyclable interfaces (APIs)” to increase the “re-use of code, software, and resources”.
DIGITAL SME will continue to raise awareness about different aspects in the discourse around sustainability and digital transformation. We want to show that the ICT sector, driven by innovative SMEs and startups, is indispensable in the fight for more environmental and social sustainability.
Read more about our approach to sustainable digitalisation on our campaign page.
This article was written for our #SustainableDigitalisation campaign on the basis of an article by our partner Kompetenzzentrum IT-Wirtschaft. It is not a commercial initiative. As part of a new series about different aspects of sustainable digitalisation like Green(er) Technologies, we will post jointly developed articles like this one to raise awareness about the importance of ICT in Europe’s transition to a green and digital economy.
If you would like to propose a topic for another article about Sustainable Digitalisation, contact us at office@digitalsme.eu |
image credit: shiftphones.com 2020 source: https://www.shiftphones.com/das-neue-shift13mi/
In a recent position paper, DIGITAL SME outlines a path towards a sustainable digitalisation that builds on digital sovereignty as well as the impact of ICT on the environment—both good and bad.
One pillar of this sustainable digitalisation campaign are green(er) technologies and circular economy. The premise is that ICT, if done right, can decisively contribute to a more sustainable economy. Digital has the potential to save resources, expedite research and analysis of climate change, and replace polluting technologies. But Europe has to support green business models through smart policy to realise this potential.
Shift, a small family business placed in the heart of Germany, shows how ICT can be sustainable by design. Circular economy models are integrated into its products from the start. Through its innovative business activities, Shift is representing a path towards the achievement of Europe’s green and digital “twin” transitions.
The Circular Economy Action Plan mentions that “electrical and electronic equipment continues to be one of the fastest-growing waste streams in the EU, with current annual growth rates of 2%. It is estimated that less than 40% of electronic waste is recycled in the EU20”. (p. 10)
These problems are related to difficulties consumers face when wanting to repair smartphones and other electronic devices. When repairing devices via independent repair shops, customers often risk losing their warranty. In addition, outdated parts cannot be replaced or upgraded to new technical standards. However, as stated in the Circular Economy Action Plan, “two in three Europeans would like to keep using their current digital devices for longer, provided performance is not significantly affected” (ibid.).
The impossibility of repairing ICT devices has negative consequences for the environment and prevents these technologies from becoming green and circular. In contrast, Shift’s modular smart phone, the Shiftphone, allows users to replace spare parts of the device themselves (Shift provide videos with instructions to that end).
Another practice that is harmful both to the environment and to consumers is planned obsolescence, i.e. designing or producing products with an artificially limited useful life. Several tech giants have faced rulings against this practice (see Apple and Samsung cases – ICA 25 September 2018, PS 11009-PS 11039). Planned obsolescence generates electronics waste and increases costs for the consumer, who has to buy new devices when the old ones should still be working.
Shift addresses premature obsolescence with its self-claimed “most modular smartphone in the world”, which allows not only the replacement of spare parts, but also the upgrade of the smart phone’s software. In so doing, the waste of resources, planned obsolescence, and difficulties in repairing the device are effectively addressed from the start. Could Shift’s business serve as a best practice for hardware-producing SMEs?
DIGITAL SME’s position paper on sustainable digitalisation underlines the need for a holistic approach to regulation. It is important that new digital environments remain open to newcomers. In a sustainable and innovative digital economy, businesses like Shift need access to data to perform repairs and develop new services. A holistic outlook on regulation can help to prevent these markets from being closed-off to competition, circular economy models, and innovation.
DIGITAL SME launched the campaign on sustainable digital transformation to support and enable Europe’s twin transitions to a green and digital economy by building on its key strength: innovative SMEs and their business ecosystems. Shift is a good example of an innovative SME leading the way towards sustainable digitalisation.
If you are interested in learning more on our proposals for a sustainable digitalisation, please visit our campaign page here.
This article was written for our #SustainableDigitalisation campaign. It is not a commercial initiative. As part of a new series about Green(er) Technologies, we will post jointly developed articles like this one to raise awareness about the importance of ICT in Europe’s transition to a more circular economy.
If you would like to propose a topic for another article about Sustainable Digitalisation, contact us at office@digitalsme.eu |
Brussels, 19 November (DIGITAL SME).
Industry, manufacturing, agriculture, technology: Europe is in a leading position in many sectors that can successfully apply blockchain or other Distributed Ledger Technologies. At the same time, the lack of digital skills throughout Europe threatens to hamper and slow down innovation in this and other emerging technologies. To counteract this dynamic and “close the gap”, DIGITAL SME and a consortium of top stakeholders in DLT innovation and skills development have launched the new CHAISE project to deliver “blockchain skills for Europe”.
From 18-20 November, the new four-year initiative was officially launched with its first project meeting. CHAISE is not just another European project. Mandated by the EC to design the missing European Blockchain Skills Strategy, “It is a really specific project”, said Pavol Krempasky from the European Commission’s Education, Audiovisual and Culture Executive Agency (EACEA). He assured the partners of his agency’s strong commitment to enhance CHAISE’s visibility.
“We expect a lot from this project”, agreed Pierre Marro from the Commisson’s DG CONNECT, highlighting the importance of approaching blockchain-skills development with an interconnected mindset that includes other emerging technologies as well. CHAISE is well-equipped for the paradigm shift ushered in by blockchain. Led by the Université Claude Bernard Lyon 1 (UCBL), the project’s consortium consists of European and global leaders in blockchain and DLTs, including industry partners (Fujitsu, IOTA, INTRASOFT), sectoral organisations and communities (e.g. Italian Digital SME Alliance member Italia4Blockchain and BERCHAIN), as well as the International Association of Trusted Blockchain Applications (INATBA) and others.
The project will develop a 5-semester VET (qualification) programme in 11 EU languages with an innovative approach: In addition to technical skills specific to blockchain/DLTs, the CHAISE Curriculum will also include non-technical soft skills to respond to the specific needs of modern work environments (problem-solving, team work, and a customer-oriented and entrepreneurial mindset).
In addition, all learning materials developed by the project will be consolidated into an open online course. Finally, CHAISE will also develop the first-ever “blockchain specialist” occupational profile in line with existing competences and qualification frameworks (like the eCF) to guarantee a common language for digital skills descriptions.
The CHAISE project contributes to two pillars of DIGITAL SME’s Skills Strategy 2030 by providing “training and education” as well as “ecosystem leadership”.
Firmly consolidating our role as a top player in digital skills, DIGITAL SME will function as the Communications Manager of CHAISE. Our primary role will be to increase the project’s visibility and expand sectoral collaboration, as well as to contribute to market-based intelligence gathering of blockchain and DLT-skills needs and the development of the European Blockchain Skills Strategy.
Stay tuned for more information about the project! We are currently developing its online presence, including website and social media channels. Be sure to follow DIGITAL SME on Twitter, LinkedIn, and Facebook for more updates!
On 2 December 2020, the European Commission will propose a new piece of legislation, the Digital Markets Act, which will likely define a set of obligations to address imbalances in digital markets and to tackle issue such as illegal content online. This piece of legislation will update the legal framework set by the e-commerce Directive of 2000, which fundamentally shapes the online environment today. For instance, under the current rules, online platforms are not legally responsible for illegal content posted on platforms or circulated via their channels but have to remove it once they have become aware of it.
The internet has evolved significantly over the past years. In contrast to the early days of the internet, which relied on openness and interoperability, many services offered by large online platforms (such as messaging, social media, etc.) are accessible only in closed-off proprietary environments that rely on network effects, lock-in their users and are largely shielded from competition. The European Commission recognises that while there are over 10,000 online platforms operated in Europe’s digital economy “a small number of large online platforms captures the biggest shares of the value”. These platforms act as “gatekeepers between businesses and citizens, benefitting from strong network effects”. This may create hurdles for competitors trying to enter the same market because “some of these large online platforms exercise control over whole platform ecosystems that are essentially impossible to contest by existing or new market operators”.
Against the background, this online event will offer a forum to discuss issues of fairness and competition in digital markets, and the dominance of large gatekeeper platforms from the perspective of smaller players. It will feature a debate with innovative digital SMEs as well as technology experts and academia to discuss solutions for a more open competitive digital ecosystem.
9.00 – 9.10 | Welcome by DIGITAL SME |
9.10 – 9.30 | Opening statements
What will a Digital Markets Act mean for SMEs in Europe? |
9.30 – 10.30 | Panel discussion
A fair and competitive digital environment: How to regulate platforms without causing harm for smaller players? |
10.30 – 10.45 | Closing remarks |