User involvement
User involvement
in ICT policy

Information and Communication
Technologies Partnership
User involvement
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- THE TRIANGLE: USERS-VENDORS-EUROPEAN COMMISSION

- THE COMPLEXITY OF THE USER COMMUNITY

- ORGANISING COOPERATION
- CONCLUSION


Two round table meetings were held in June and September 1993, to review partnership and cooperation with associations representing users, vendors and professionals of information and communication technology (ICT) and Directorates III and XIII of the European Commission.

As a result, the participants agreed on a Memorandum of Understanding, of which this document is an annex. It describes the background, the reasons why improvement of working relationships is necessary and how this relates to the agreements defined in the Memorandum of Understanding.

The field of cooperation covers the use of ICT, including telecommunications services and access to information, in all areas of social and economic activity. This comprises all aspects of research, development, procurement, education and training, as well as Community policies leading to a better use of ICT.

THE TRIANGLE:
USERS-VENDORS-EUROPEAN COMMISSION

For many years technology drove the information and communication market. Vendors defined the products and customers tried to make the best possible use of them. The needs were immense, but ill understood, even by the user. The market grew fast and there was little critical response on how products and services should support the user's business. The user was silent, frustrated and completely occupied by his internal ict problems.

We now see the signs of change. Users learn from each other how to manage the introduction of ICT. They develop their own methodology and terminology to express their requirements. We are entering a period where demand pull will counterbalance technology push and where user needs define products and services. However, we are still at the beginning of this evolution and the conditions to make users and vendors equal partners in technology management are not fulfilled yet. The knowledge of how to use ICT is lagging far behind the ability to produce it. There is no consensus on best practices and more research on the use of ICT is necessary.

This also explains why users were not able to build as strong a relationship with the Commission services as the vendors. To improve this we must first level the playing field and create the proper conditions for the users to take up their role. This does not only apply to the relations between users and the Commission, but even more to the direct cooperation between users and vendors. In this way they can solve many problems without the intervention of the European Commission.

When the European Commission is involved, inter-service coordination is also necessary, because ICT cannot be separated from the other aspects of Community business. The role of the Commission is not fundamentally different from the one that governments in other regions of the world have with regard to users and vendors. ICT is a global market and it needs that scale to be economic both for vendors and users. The Commission would welcome similar initiatives in other regions in the world to give a global dimension to the cooperation described in this paper and they will make the necessary steps, once the approach proves to be feasible in Europe.

To conclude, we must make all efforts to give the three sides of the triangle 'users-vendors-Commission' equal strength. For that purpose we need a better understanding of the background and the problems.

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The Complexity
of the User Community

The word 'user' is an ICT-centric term. A better word would be 'everybody', because almost every person or enterprise uses ICT products and services. More refined definitions are necessary to organize cooperation.


CUSTOMERS AND VENDORS

When a user procures ICT, his name is customer. The market structure shows a flow of products and services from equipment and software vendors to end-users, through companies providing added value, such as system integrators, telecommunication operators, application and information services. Many companies are customers and vendors at the same time. Only the end-users are not vendors, but they represent approximately 90% of the economy. This includes both private and public enterprises, administrations, institutions and domestic consumers.

However, intermediate users play an equally important role in translating end-user requirements to upstream vendors. Indeed, any vendor focuses his attention to his direct customer. The user-vendor pair is therefore the essential relationship for procurement and market issues.

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END-USER ROLES

What the end-user enterprise will buy as a customer depends on how it uses ICT in its internal organization. Not everybody plays the same role in this organization or has the same needs for ICT products and services. We shall consider four categories of internal users in the enterprise, each with its specific interests.

- The personal user: Every person claims to be the real user when he uses the telephone, the terminal or his PC for applications or communication services. His profile is that of a consumer with similar needs at work and at home. The difficulty with consumers is that there are too many to express their individual views.

- The executive: For top management ICT-applications are not made for the pleasure of the personnel but to make the enterprise more effective and more efficient. Therefore it is up to them to make final judgments as a user. Heads of industry evaluate the overall effectiveness of the ICT investments in applications and set the level of ICT expenditure. Together they control the total growth of the ICT market.

- The operator: The operator controls hardware, software and data in the running of a production service, e.g. a data base or a network. Most of the software in computer applications exists for the sole purpose of managing the system, just as most of the bulk of a bridge is there to carry its own weight. We very often underestimate this aspect. The operator considers himself as the real user, because the system is his tool to provide the service to his customers.

- The information systems department: The information systems or ICT executive and his professional staff provide overall support to the users in their company. Inside the enterprise they can hardly be considered as users. Yet for vendors the ICT department is the procurer, choosing between competitors what product to buy. Very often ICT staff also represent the user interests of their company to the outside world, although their professional culture is often closer to the vendors than to the users.

The conclusions we must draw from the complexity of users' and vendors' environments when studying mutual cooperation are the following:

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THE DIVERSITY OF ASSOCIATIONS

The Commission wishes to keep an open communication with all individual users and vendors. Unfortunately, they are too many to handle. By limiting their relations to a few large companies, the Commission involuntarily creates barriers for small and medium ICT companies and the majority of users. We need open channels for everyone. This is why cooperation with associations is important as they can offer communication with their individual members. For users in public administrations such channels exist, because most countries have government bodies in charge of ICT support for the administration.

There are associations of many different types: vendors, users, ICT professionals and mixed compositions. The members of an association generally correspond with some, but not all, at the user roles described above. For instance, users such as business managers are seldom members of computer associations, they would rather join associations with a broader interest.

For associations with a mixed membership, the type and the size of the consultation base should correspond with the user views being expressed. The motivation of members joining an association is often to obtain information and training or to meet colleagues of companies, more than to express user views.

When it comes to the discussion on user-vendor relations, we should remember that some vendor associations play an important role as intermediate users, as explained above. They need to be involved when user interests are on the table. We should also pay attention to how associations deal with user-vendor relations. Some prefer discussions between user and vendor associations Mixed user-vendor associations generally organise an internal dialogue. Both approaches are valid and have different advantages and drawbacks.

For all these reasons it is necessary to have a good insight in the characteristics of the various associations.

- Members: Membership may be personal or by enterprise. There are associations and federations of associations. Sometimes members have a particular user profile, but generally an association becomes a meeting place for wider interests. Also the position of members in their own company is important.

- Scope: Associations may be local, national, community-wide or have a world-wide coverage. Ideally, the scope of the association should match the scope of the issues at stake. Coverage may also be by activity sector, such as government administrations, petrochemical industry, banking, aerospace industry. The participation of small and medium enterprises should also be taken into account.

- Objectives: The objectives of an association may be to offer services to its members, to defend their common interest, or both. Consequently their activities may include studies, training, information, discussion, promotion, lobbying, etc. The identification of objectives and activities is important to find common ground for successful cooperation.

As a result, there is a great diversity of associations. Users and vendors are free to associate as they wish and the Commission intends to work with all of them, but we must find a method to do this with limited resources. At present they are too many to have close relations with each of them.

Besides the diversity of associations there is an even more serious problem: most user associations, in particular federations of national associations, are poor compared with vendor associations. This has two causes that will not disappear overnight. As already explained in point 1, users are slow to become aware of their role in the market. The second is more fundamental: companies do not like to pay large membership fees for a supporting function that is not part of their core business. Nor do they wish to show a strong profit on something that is not essential for their image. This may change when top become aware of the strategic value of ICT for the survival of their company. User associations have to convince user executives of their interest to join forces and to spend some resources to do this efficiently.

In the mean time, the position of user associations is weak compared with their partners. The same is true for associations of smaller ICT vendors. They wish to see the playing field being levelled by creating equal access to cooperation, information and resources.

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ORGANISING COOPERATION

Cooperation is undoubtedly more effective with individual companies and persons than with associations representing them. Individual cooperation should be pursued whenever possible. In particular, cooperation with leading edge users is of strategic for the Community.

Leading edge users have been participating in RTD projects for a long time, especially for sectoral ICT applications A fruitful approach to project structure is the concept of user-vendor pairs working on the same technology, but users and vendors remaining in their respective role. We wish to encourage such user-vendor RTD consortia, in particular when the vendor is an innovative SME in search of a broad market.

The vendor should not always have the leading role in a user-vendor pair. There are many advantages in having the user taking the lead. With the customer as the prime contract and the vendor developing the technology in a subcontracting role, the project structure reflects the natural customer-vendor relationship and this brings the results closer to market.

However, when we want a broader impact on the market, such as for the exploitation of research, the transfer of technology and knowledge and the application of best practice then we need to involve many more organisations: not only users and vendors, but also consultants, business schools, etc. Networks of cooperation are necessary and this is where associations can play an important role, because they can make the link with many individual companies and persons.

Associations should explore and test all methods to join forces, such as: liaison functions, cross-membership, common projects. The Commission should create equal opportunities for associations to make proposals and launch Round table meetings are a flexible method to explore common views and interests of autonomous organisations. In the past, round table meetings have on many occasions led to consensus and coordinated action. However, m most cases the Commission has been the initiator of such meetings, whereas there are good reasons for associations to meet without or before seeing Commission representatives. The Commission wishes to age round tables to which it is invited rather than being the host. It is an appropriate way to fulfil its role as a broker of Community interests, without intervening unnecessarily. In addition, the Comlmssion will continue to host and chair round table meetings as it thinks fit to support its work programme.

Users may wish to meet without vendors to reach a common position. It may also be the other way round. However, the Commission particularly encourages user-vendor round tables to reach a common understanding.

A series of round table meetings on the same subject should have a limited life. It preferably concentrates on a well-defined initiative (e.g. a recommendation, a negotiation, a common activity) and concludes with a memorandum of understanding between partners. Such memoranda of understanding can specify the commitments accepted by participants, future actions and possibly a permanent structure of coordination among the parties. For example, this paper and the corresponding 'Memorandum of Understanding on Partnership in ICT', are the result of two such round table meetings.

Associations do not necessarily have to set up umbrella organisations to meet and to cooperate. All they need is a common practice for the organisation of meetings. A permanent and neutral secretariat for meeting logistics, having no ties or interests with any partner at the table, can be useful if all participants agree to pay for its services. Such a secretariat may also set up a documentation centre on issues of common interest. It should not become an interface between partners and in particular not with the Commission.

Whereas round table meetings are appropriate for initiating cooperation, ongoing actions need more permanent management structures, such as formal and informal advisory and management committees, with subcommittees and working groups, concentrating their action on a particular subject, programme, project or a policy implementation. Many suchstructures exist, but not all associations know them and some may have to adapt their rules to make user participation easier.

In many cases, we see a weak representation of users compared with the vendors The Commission is ready to help users to put the balance right. As a principle, users should be able to convey their requirements at the highest level of a committee structure and use their own terminology To apply this principle, users must prepare and show determination to take up their role at the right decision level. User representatives in advisory committees and working groups are the right contact for individual user organisations and associations wishing to contribute Their list will be made available.

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INFORMATION

Only properly informed partners can initiate cooperation. However, the difficulty often is that more information is disseminated than can be handled at the receiving end. This is particularly true for Community information. The effort and the cost for an association to screen this information for the benefit of its members is high. User associations, especially, cannot pay the staff to do this work. As a consequence, they have not the same possibilities as vendors have to react and make their views known. They want the important information to be summarised first by the Commission. Also this is an impossible task, because can write as many different summaries as there are views and interests and Commission officials should not decide what is important for their partners.

To solve this problem, the Commission proposes to improve the accessibility of existing sources of information on ICT, to publish its work plan and to provide focused and fresh information on those subjects which are on the agenda of round table meetings.

Also associations have to provide information to the other associations and the Commission on a more regular basis, in particular on members, objectives, organisation and work plans, as described in point 3. This information is necessary to explore common interests and possible synergy.


INPUT IN POLICY MAKING

The quality of policy making can only improve by hearing all parties involved before taking positions. For this reason, the Commission will take measures to ensure that associations have the opportunity to express their views on an important change of ICT policy. The Commission also seeks the advice of experts, but their opinion is personal and should not be confused with the position of associations.

When an association wishes to prepare recommendations for the Commission, it should proceed similarly and invite other associations with the same interests, e.g. users of the same type, to a round table meeting to collect their opinion and reach a consensus. The Commission can be invited as an observer. In this way recommendations get a large support before they are addressed to the Commission.

In both cases, it is the opinion of the members on the proposed policy that matters. It is therefore essential that the representatives of associations provide evidence on the size and the profile of their consultation base. The Commission believes that it is important for the spokesman to have himself a user profile when he represents user interests. Making the distinction between the different user roles as described in point 2 is even better.

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COMMON ACTIONS

The participants of the meetings referred to in the beginning of this document, agreed on a first list of subjects for common action to be explored with round table meetings:

SUBJECT Chair
Strategic view of ICT in Europe CEPIS
User needs for trans-European services CECUA
Universal Service ECTUA
Procurement of ICT products services OSITOP
Translating business needs into user specifications for standards X/Open
Architecture for multi-vendor networks platforms ETIS
Review of Community standards policy Commission
Access to Community information for users Europen

This list covers only those subjects for which the associations expressed the largest common interest during the meeting. This list is not final and may eventually change. Some associations felt that environmental problems with ICT will become of growing importance. Many other subjects were discussed and, according to the Memorandum of Understanding, associations are free to launch initiatives on any of them. This includes also associations which were not present at the first round table meetings of this kind, but signed the Memorandum of Understanding. The list of common actions becomes even longer when we add existing cooperation structures and committees where users are represented:

- The RTD Framework programme, including exploitation of research (VALUE), with its management and advisory committees, in particular IRDAC (Industrial RD Advisory Committee),SPRINT (Strategic Programme for Innovation and Technology Transfer),PPG (Public Procurement Group)
- ONP-CCP (Open Network Provision Consultation and Coordination Platform)
- EURO-ISDN USER FORUM (EIUF)
- IBAG (INFOSEC (Information Security) Business Advisory Group)
- TEDIS (Trade Electronic Data Interchange)
- CIM-EUROPE (Computer Integrated Manufacturing)
- OMI Advisory Panel (Open Microprocessor System Initiative)
- TAG (Telematics in Administration Group)

The comparison of both lists clearly demonstrates the need for coordination between associations and participants in Community programmes. For example, cooperation with the ONP-CCP on subject 3 and with PPG on subject 4 seems to be straightforward. Both lists also reflect the importance of procurement and standards in many proposed and ongoing common actions. The participants agreed that user-vendor cooperation should be supportive of the Community policy of open systems and standards for a free and competitive market.

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RESOURCES

Cooperation is only possible with human and financial resources. We have a healthy solution when these resources are provided by the members of the participating associations. It shows the commitment of the members and the strength of the association. Unfortunately, for the reasons we have already explained earlier, user associations do not have that strength yet and they insist on financial support from elsewhere.

Direct or indirect financial help coming from vendors or from other parties may solve the cash problems of a user association, but it reduces at the same time its independence in expressing its views. Moreover, it does not incite its members, who are the only resources it can offer, to participate in the common actions.

A better approach is to find activities which are interesting for members and at the same time are a valuable and tangible contribution to a Community programme or policy. If, in addition, the association can join forces and share resources with other associations, then funding by Community money may be well justified.

The definition of such activities should obviously result from the analysis of common actions as explained in point 7. Adaptation of mutual plans and calls for proposals will be necessary to take into account user contributions. Individual companies can participate in RTD-work, which is generally funded for 50%. Associations do not have a research activity of their own but they can involve some of their members. However, an important contribution of associations could be the organisation of networks with business schools, consultants and others for the dissemination of best practices and the transfer of knowledge for the use of ICT.

With the suggestions of the associations, the Commission will make their best efforts to integrate user contributions in Community programmes. It might also consider horizontal programmes for associations funded by different Community programmes and launch a specific call for proposals for that purpose.

CONCLUSION

It will not be easy to bring the three sides of the triangle 'users-vendors-Commission' to equal strength as explained in point 1. A few simple measures are not sufficient. There are so many problems that improvement will go step by step. However, each improvement is important if the benefits are shared with all partners, in particular with the users, because it the logic and it provides the motivation to continue the evolution.

For this reason all parties have agreed on a Memorandum of Understanding, defining initiatives and common practice to organise and stimulate mutual cooperation.

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