Innovative Approaches tothe SME sector

A Microsoft’s perspective

Wilfried Grommen

General Manager, Business Strategy

Microsoft EMEA

wilgrom@microsoft.com

July 12th, 2006

WIPO INSME seminar

Today’s themes

ICT as an enabler

A knowledge economy

Access to Finance

Microsoft in CEE

Building a knowledge economy

Growth

Realizing Potential … of individuals, businesses, communities, nations

Knowledge Economy

Learning

ProductivityInnovation

S US T A I N A B L E D E V E L O P M E N T

The role of software: economic impact

Our business model

Develop low-cost software

Provide a platform for other developers

Respect intellectual property rights

The role of software: economic impact

IT Producers(Hardware & software)

Local channel & service firms

Local end user IT organisations

7.9 million

9.4 million

IT Market size EU + 3 (2005) ICT Spend (2005 - 2010)

ICT-related employment (2005 - 2010) ICT-related tax revenues (2005 - 2010)

The role of software: productivity

The role of software: productivity

7

UkraineMinistry of FinanceBudget management

Everest consulting

HungaryMinistry of FinanceBudget management

CroatiaCroatian RailwaysMobile ticketing

CITUS grupa & KING-ITC

CroatiaPodravkaRights Management

eVision Information Systems

SlovakiaEuro MediaWeb-based business

AutoCont a.s. Slovakia

Czech RepAhold Central EuropeIT Infrastructure

LatviaGovernmenteProcurement

Rix Technologies

Baltic StatesEurovaistinesERP & Accounting

SONEX SISTEMOS UAB

SloveniaGovernmenteTax

Hermes Softlab

SerbiaDevelopment Centre

Creating skilled workers and educated citizens

By 2010 training and access to technology for: ●250 million Worldwide ●20 million in Europe

Partners in Learning●Initiative launched in 101

countries

Unlimited Potential ●Slovenia 22 CTLCs ●Croatia 21 CTLCs ●Czech Republic 26 CTLCs

Sparking innovation

Intellectual property is a basis for differentiation

IP-based business models attract further investment (E.g. Agreement SCC)

Remove the value of IP and the incentive to innovate disappears

E.g. Development Center Belgrade

R&D in universities &

companies

Intellectual property (IP)

Re-investmentInto R&D

ProductsTaxes, profit

Sales

Helping SME’s access to grants: EUGAChallenges EUGA Contribution

Improve relevance between EU Grants and SMB needs

Building Consortiums to support Governments in defining the most appropriate Grant Programs:

IT Players (Intel, HP,…) Telcos Banks Chambers of Commerce, Business Associations

45% Awareness among SMB

EU Grants web portals19 EU countries with local content and language

Selection of the Right Grant… out of 10.000 available

Web Based toolsGrant database permanently updatedFriendly Search EngineGrant Alerts

Complexity and time required to fill a Grant Application

Low Application Rate: 4% of SMBs apply for Grants…

… and when applying, 25% success rate…

…So only 1% of the available funds are leveraged

Personalized Free Consultancy Support through:Local Agencies covering 19 countries350 consultants supporting users:

Preparing “application package” : Business Plan, Project Memorandum, Investment Justification, etc

Submitting the “Application Package” on behalf of SMBs

Follow-up the application until resolution, approval and payment

True Public-Private Best Practice

More than 100 Consortium Members engaged in 19 countries

Osuuspankki BankTelekomunikcja Polska

Dr. MitterlehnerAustrian Chamber of Commerce ViceGeneral-Secretary and Austrian Member of Parliament

EU Brussels: Gunter Verheugen (EU Vice-president and Commissioner DG Enterprise)

“I am extremely grateful to Microsoft for EUGA”

Quote from Jose Manuel Barosso (Feb 2006):“Developing Europe as an innovative, knowledge-based economy is the key that will open the door to a competitive Europe.” “Innovation is forward-looking. It plays to our strengths. It is a key driver for competitiveness, and in particular to maintain competitive advantage in a global economy.” “Access to finance….is a prerequisite for making the most out of innovation.” The first goal of the Competitiveness and Innovation Programme is “to free up obstacles for SMEs, including…..access to finance” “SMEs are the best vehicles for job creation – we know that innovation is the best way to create jobs. The SME innovation potential is underexploited. Better access to …..finances can all help SMEs on the road to innovation.”

UKBelgiumDenmarkFinlandIreland

AustriaGreecePortugal

Czech & SlovFranceNetherlandsItalyGermany

HungaryPoland

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UKBelgiumDenmarkFinlandIrelandSweden

AustriaGreecePortugal

Czech / Slovakia FranceNetherlandsItalyGermany

HungaryPolandSpain

EUGA projects update

In preparation

Filed

835 projects

(+39)

(+34)

495 projects

340 projects

908

200 projects approved

534

374

28 projectsrejected

(+ 73)

April 06Mar 06

Slovenia

• EUGA fully operating in 19 countries in EMEA• Projects: 908 grants application projects• Total Projects Investment: $460M• 113,832 SMEs stand to benefit• 95,000+ people should be trained

1000 $

Microsoft in Central & Eastern Europe

Across the entire EMEA region Microsoft has:●Over 250,000 partners●33,000 Independent Software Vendors (ISVs)

●97,000 Resellers & System Integrators (RSIs)

●Over 12,000 employees●Offices in 61 countries

In closing

Collaborating with local partners

Working with governments

Helping businesses

Preparing society

Thank you