Presentazione di PowerPoint

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European Commission - Call for proposalsPreparat
ory actions to promote European digital content
on the global networksDEMANDSDemonstrate
Efficiency in MANaging Digital Sites
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Modena

• Location located in Northern Italy, at the
  centre of the Emilia Romagna region, Modena is
  crossed by two very important motorways the A1,
  running the entire length of the country, and the
  A22, connecting Italy to Northern and Eastern
  Europe
• Population 175.124 inhabitants
• Territorial extension 184 Km2
• Economy high concentration of SMEs, intensive
  agricultural production, developed tertiary
  sector, low unemployment rate
• Social services presence of a broad network of
  services for the citizens (nursery schools,
  services for the elderly, for migrants, ...)

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Comune di Modena
The City of Modena is the local authority running
the town of Modena, offering to citizens,
associations and enterprises, a wide range of
services.

The functions carried out by the City of Modena
are organised in four areas
1) Relations with citizens and security
services2) Financial resources and patrimony
3) Services for the citizens4) Town/land
planning
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The departments of the City of Modena involved in
Demands are
Comune di Modena

• Telematic City and Information System
  Dep.carries out the following activities
• statistic services
• information, telecommunications and telematic
  systems
• offices automation
• personnel training on information technologies
  issues.

Progetto Europais the department of the City of
Modena in charge of European affairs and
international relations.It provides technical
assistance to all City Departments in the project
management of EU funded projects and in the
relations with the European Commission
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Demands covers all the information services
offered by the City of Modena in the following
areas
Town planning, land planning, private building
Household Economic development, commerce,
small businesses Education Municipal
police Culture and Tourism Environment -
traffic Sport and LeisureTaxation Demogr
aphic Services
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Meta
Modern limited company with public capital that
manages energy distribution and environmental
services to 409,000 people in the territory of
the province of Modena. The company capital is
about 200,000,000 eur.
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Nerano

Founded in 1999 form the existing company
N_at_scent, it is a pan-European Information
Technology incubator with offices in Paris,
Geneva, London and Milan.
Nerano offers its support to start-up companies
in the information technology sector in Europe.
In particular, it provides the incubated company
with a range of services that include legal,
financial, technical and overall strategic
advice, as well as assistance with fund
rising.Nerano specialises in a few segments of
the Information technology industry Business to
Business, e-commerce and related mobile
application.
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Codifin

The main activity of this company is focused on
consulting and brokerage in the information
technology field.
In particular, Codifin offers the following
servicesTechnical assistance to the planning
and support to the management of outsourcing
activities for information and telecommunication
systems.Starting up of projects on Intranet
networks.Financial management of several
activities related to the telecommunication
sector.
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DEMANDS Aims

To verify the economic and technical feasibility
for the setting up of a company based on a
partnership composed by the City of Modena with
one or more private entities, in order to create
a destination for offering the users (citizens,
firms, associations etc.) digital services linked
to Public Administration.
This way the City of Modena could progressively
outsource its services, keeping co-ordination and
control
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DEMANDS Aims

The project will provide for a business plan able
to define all technical, legal, management,
fiscal, economic and financial issues. The model
created by the end of the project (business
model, public-private partnership) may be
transferred and reproduced in other European
cities.
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DEMANDS Milestones

• Market analysis, which will lead to the
  assessment of the services to be provided by the
  new company
• Legal assessment, in order to ensure the correct
  application of norms compelling public
  authorities when dealing public data
• Business model, in order to ensure the
  dissemination of the experience and the
  methodologies applied to other European cities

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DEMANDS

• Budget
• Total cost of the project 189.661
• EU funding 94.831 (50)
• Duration of the project 9 months
  (January-September 2001)

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City of Modena Network infrastructure
All of the approximately 70 locations are
adequately cabled and connected to the network
through different technologies and at various
transmission rates. The network is fully IP and
the SNA protocol, used to access the management
procedures residing on the central processor, is
packaged and carried by the IP. This network is
connected to the Internet through Telecom, using
a 8 Mbps RING access the City manages its
Internet and intranet sites on its own server.
For several years, Public Agencies, National
and Local Administrations have been connected.
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City of Modena Network infrastructure

• The optical fibre network, currently being
  constructed by META S.P.A., will soon (Spring
  2001) connect another 16 sites, including the
  Chamber of Commerce and the Provincial
  Administration.
• The schedule META is following to lay the optical
  fibre lines will also reach additional sites
  within such public organisations such as
• Province
• University
• AUSL (Local Health Authority)
• Hospital

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City of Modena Network infrastructure

The City of Modena is served by Telecom Italia, a
telecommunications operator whose telephone
network covers 100 of the territory. In
addition, 5 other national telecommunications
operators (Albacom, Infostrada, Wind, ePlanet,
e-Via) have POPs available within the territory
(or being completed). Approximately 25 ISPs
operate within the City of Modena territory,
offering Internet connections through analogic
(RTG), digital (ISDN) and xDSL lines.
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City of Modena Network infrastructure

Broad band services using optical fibre
connections will mainly involve businesses
(medium and large-scale companies) while the
remaining market share (including residential)
will be served by xDSL access, taking advantage
of disaggregated access to the local Telecom
Italia network (available starting
September-October 2001). Meta Spa is a member of
Tre.A.Web Spa, a new local telecommunications
company that plans to install approximately 90 km
of access/dorsal optical fibre network and WLL
radio coverage within a period of two-three
years. The company is marketing its services both
to businesses and to residential users. The
City of Modena is served by 4 mobile telephone
operators, at least two of which provide complete
coverage of territory. By the end of 2001 all
operators present will be able to provide GPRS
service. In addition 3 of the 4 operators have
obtained UMTS licenses.
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City of Modena Municipal information system
Approximately 1600 stations are connected in a
local network. The technological quality of
this network is relatively high and this holds
both for the hardware and the instruments used to
achieve general-administrative productivity at
all levels individual, professional and
technical. To date, automation of the
procedures has involved all sectors and services,
covering a fair portion of all management needs.
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City of Modena Municipal information system
The contents already available in digital form
are a lot These e-contents concern all the areas
of activity of a public administration In
province of Modena many public authorities are
interested in common investments, at least for
studies concerning systems planning.
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City of Modena Municipal information system

Development and maintenance of the applications
procedures is handled by the Telematic City and
Information System Department which maintains and
co-ordinates such services and contacts outside
suppliers for specific topics and projects.
This Department is also responsible for user
support, emergency intervention, installation of
all hardware and software as well as providing
users training courses.
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City of Modena Municipal information system

Following Research into accessibility and use of
information systems in the simplification and
streamlining of administrative activities, in
recent years activity has overcome the series of
vertical databanks and evolved toward the concept
of information systems. Organisation, procedures
and responsibilities are implemented on the basis
of a series of well organised, unitary databanks,
thus ensuring that the data contained is always
up-to-date, consistent and complete.
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City of Modena Municipal information system

• Territorial information system bringing together
  georeferences and locations throughout the
  territory
• Population information system and services for
  individuals bringing together personal registry
  codes and fiscal codes
• Accounting information system bringing together
  centres of responsibility and the codes in
  legislative decree and national law.

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City of Modena ComNet - Internal network services

• e-mail service and mailing lists
• city bulletin boards and space to share
  destructured information (program documents,
  circulars, regulations and standards, news and
  bulletins)
• simple, browser guided access to information and
  management archives (protocols, legislative and
  management decisions)
• new interface for management procedures (on-line
  budget estimates, filling out investment forms,
  budget modifications, City Executive Management
  Plan (PEG) objectives, training calendar and
  enrolment).

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City of Modena MoNet - Civic Network

Modenas civic network was expressly founded in
1995 by the City Executive Committee and inserted
in a true and proper ICT development policy at
the local level (the Città Telematica
project). Differing from other Italian
realities, the Information Systems, Marketing and
Communications Department have always co-operated
with one another.
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City of Modena MoNet - Civic Network

• Achieve high quality relations between the local
  public administration and the citizens
• Assert an avant-garde image of the city and its
  services
• Reinforce the public administration reform
  process
• Stimulate development and innovation within the
  local economic system.

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City of Modena MoNet - Civic Network

• Campaign to train and familiarise the citizens
  with the basic use of interactive services
• Gradual testing of new means of participation in
  the local decision-making processes, through the
  use of such instruments as on-line conferences on
  particular topics and spaces for participation
  and debate
• Strategic use of ICT as an opportunity to create
  a system of international co-operation relations,
  at the same time promoting the local name.

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City of Modena MoNet - Civic Network

• Development of digital services, including their
  gradual extension to citizens and businesses,
  interoperability and sharing of data between the
  various Administrations throughout the territory
  and introduction of new services such as
  territorial information system, direct access to
  databanks, cartography services for
  professionals, on-line enrolment, etc.
• Promotion of widespread use of ICT, involving
  the local socio-economic players such as
  universities, schools, business associations,
  institutions and cultural associations,
  libraries, the service sector

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City of Modena MoNet - Civic Network a few
figures...
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NEWCO ... WHY ?
Public authorities like the City of Modena, with
a good ICT situation and with a good development
of telematic services, are looking for new
solutions and new interventions. This should
enable public authorities to work in new field of
actions, in respect of the existing structures
and institutional tasks, but looking for new
synergies, increased quality and added value.
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The socio-economic context of Modena is extremely
interesting and favourable for an initiative such
as that of Newco

• Good schooling (over 60,000 diplomates/graduates
  out of approx. 168,000 inhabitants)
• High per capita income (43,500 million per capita
  income in 1997)
• Good tendency of exploiting the information
  services (including the web) available today (on
  average 330,000 contacts/day to the civic network
  servers)

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• Strong entrepreneurship (60,000 enterprises
  registered in the province of which about 2500
  export firms)
• Marked tendency for innovation and technological
  excellence (for example, Ferrari in the
  mechanical sector, product quality in the
  biomedical sector, leadership in the tiles
  sector, etc.)

This context is open to an innovative
entrepreneurial initiative
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NEWCO FIELDS OF ACTION

• Services which at present are not adequately
  developed, or which are not completely related to
  public authorities institutional activities
• Services aiming at exploiting digital contents
  owned by public authorities, to improve,
  elaborate and transfer them, even against
  payment, to other public authorities or companies

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• Services for other public authorities to transfer
  and disseminate model and tools developed by the
  city of Modena for its activities
• Services already outsourced by the city of
  Modena
• Services for which it is no longer profitable to
  perform by the city itself.

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Portal - First level

• Static information organised in a homogeneous
  interface
• Search engines to navigate the static information
  
• Interactive applications already available in the
  systems meta and the city of Modena use to supply
  services to citizens but organised within a
  single, homogeneous interface (portal)
• Aggregated knowledge concerning the available
  systems (e.G. The single counter for companies or
  the system that guides the user in requesting
  meta services) organised in a single interface
• Management of electronic forms

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Portal - Second level

• Unified search engine to search all sources of
  static and dynamic information made available by
  the two agencies
• Classification system to support the final user,
  guiding him to the information as quickly as
  possible
• First customisation system user recognition,
  user preference registration and registration of
  other information required for content
  customisation (home page, services)
• Generalised use of the digital signature (to
  access services of both the city and meta). This
  will also enable the agencies to produce
  certificates authenticated by the digital
  signature technology
• A unified credit card payment system

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Portal - Third level

• Integration of the services and data originated
  by the two organisations participating in the
  portal. Integration is achieved through the
  development of a common data warehouse made
  available to the outside world through
  appropriate services
• Creation of user profiles based on preferences
  expressed during registration and on the type of
  navigation the user normally performs
• Workflow system between the various agencies
• CRM system used, for example, to create a single
  web call centre
• On-line co-operation

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Portal - Fourth level

• Integration of applications both within a single
  agency and between the two using the web services
  model
• On-line transactions to access and update the
  content of the agency information systems
  grouping these objectives translates into perfect
  integration of web services and the companies
  internal information systems

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According to the business model, the Newco will
act within three different business areas

• progressive outsourcing of services the PA is
  already providing
• enhancement and better exploitation of the
  existing PA resources and services
• innovative services. CRM web call center service,
  distance surveillance and e-learning services

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The holding company will initially consist of the
following partners

• the City of Modena
• Meta, the citys multi-utility company, which
  currently provides users with electricity, gas
  and water but which in the near future will also
  be involved in the provision of TLC and Internet
  services using fiber optic and broad-band cables.
  Meta is controlled by the Municipality of Modena
• a private-sector partner, ideally a company whose
  mission is to act as an accelerator for new
  businesses, which will be able to contribute
  capital and technological know-how

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NEWCO key elements from the moment of its
creation

• availability of content and the capacities for
  delivering services based on a network
  infrastructure
• close knowledge of the local territory and
  familiarity with the local clientele
• knowledge of the technologies and of the
  entrepreneurial opportunities as well as the
  capacity to attract venture capital.

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Future involvement

• other public-sector bodies such as the local
  health units (Ausl), provincial governments etc.
  who in Newco will find the means for an effective
  and efficient interface with their clients/users
• local economic agencies such as CONFINDUSTRIA,
  the League of Cooperatives, API (the SME
  association), CNA (the microenterprise
  association), etc. Such bodies will be able both
  to express the needs of their members and, in
  their institutional role, to help open up Newcos
  potential market
• financial partners such as banks and insurance
  companies
• venture capital or private equity investors.

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Legal issues
Juridical nature of the activity planned for Newco

• ?These activities are not a public service but
  instead activities of promotion

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Legal issues
Composition of the company structure and choice
of company name

• The most suitable juridical form for Newco is the
  limited liability company
• (società a responsabilità limitata - s.r.l.)

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Legal issues
Relationship between public administration and
Newco

• The relationship should be based on a
• service contract

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Legal issues
Ownership and responsibility of data
processing Privacy protection Agreement by the
parties concerned

• We have to comply with directive 95/46/CE
• Ownership and responsibility of data processing
  are entrusted to the local authority
• The agreement of the parties concerned is always
  required when data are treated by private
  companies. For public authorities, such agreement
  is not necessary

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Self Assessment

• Investors
• - we have targeted different sort of
  professionals involved in the financing process,
  such as fund raisers, incubators, investment
  banks and corporate investors
• - we have selected our contacts in different
  major European financial centers
•  
• Many investors contacted agreed to challenge the
  project and were interested in addressing the
  questions prepared to conduct the self assessment
  process.
•  
• Overall they welcomed the initiative and some of
  then have expressed a true interest in meeting,
  in due course, the management of Newco.

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Market Analysis

• Broadband technology what is the timeline for
  the future?

The recent slow down in computer penetration is
making investors cautious about the deployment of
broadband Internet connection over Europe in the
coming year. Mass penetration is likely to take
longer than expected
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Challenging the project rationale

• What Market should be addressed?

Main market will be joint agreements with
neighbor cities and/or central administrations. Mo
reover, even if alliances are one way of widening
sources of revenue, they are also a mechanism for
reducing marketing and technology costs.

• What services should be offered by the public
  administrations?

• Services and information promoting the city
• Services providing local administrative
  information
• Services leading to more efficiency in the way
  the public administration works and in executing
  local policies
• Services establishing a direct link between
  governmental bodies and citizens

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Executive Summary

• Business Model Assessment
• Network rollout is likely to take longer than
  expected to reach mass penetration.
• Content is key. It will shift from an
  information based interface to a entertainment
  and commerce based interface.
• The market of value added services will be driven
  by on-demand features such as videos, gaming and
  music.
• However, the need for services to be offered to
  citizens by the public administration is
  relevant.
• Investors have analysed the proposed services and
  
• . identified different services relevant to a
  public administration offering

• Financing Assessment
• In distressed market conditions raising capital
  appears very stressful.
• Companies that do not have a credible management
  and rational business plan are unlikely to fly.
• Investors believe the public administration may
  have what it needs to get access to users on some
  specific sectors
• This would require to transform public
  administration data in appealing products that
  fill the users need.

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Challenging the project rationale

• Business model assessment

• Financing assessment

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Investment Analysis

• Investment Positive
• New funding seems to be hardly available in the
  new capital environment
• An issue may arise as far as valuation and
  controlling interest are concerned
• Value added service providers may be strongly
  affected in the near future by the broadband
  operators scaling back plans

• Investment Concerns
• The public administration may have the potential
  to dominate the underexposed online niche that is
  regional and administrative content
• A key success factor would be transforming public
  administration data in appealing products,
  attractively priced that fill the users need,
  with a cost basis that permits sufficient returns
  to investors
• As long-haul transport becomes increasingly a
  commodity, owning users should bring the
  greatest reward