Communication from the Commission to the Council and the European Parliament on the evaluation of the Trade Electronic Data Interchange Systems (TEDIS) programme
Date: 1997-09-03
Institutions: European Commission
Subjects: EU programme, exchange of information, project evaluation, telecommunications, transmission network

COMMISSION  OF THE EUROPEAN  COMMUNITIES 

Brussels, 03.09 1997 
COM(97)  335  final 

COMMUNICATION  FROM THE  COMMISSION 
TO THE COUNCIL  AND THE  EUROPEAN  PARLIAMENT 
ON 

THE EVALUATION OF THE TRADE ELECTRONIC DATA INTERCHANGE 
SYSTEMS (TEDIS) PROGRAMME. 

I.  INTRODUCTION. 

This Communication responds to the requirement in the Council  Decision setting' 
up  Phase  II  of  the  Trade  Electronic  Data  Interchange  Systems  (TEDIS) 
the 
programme 
programme,  to  assess  and  report  on  the  progress  made  towards  achieving  its 
objectives. 

requiring  an  independent  evaluation,  on  completion  of 

Assignment of the task of evaluation task was through an open Call for Tenders. 
The contract was awarded to a consortium  led by Ernst  & Young. In June  1996, 
this  Report  was  presented  to,  and  approved  by,  the  Consultative  Committee 
(Comité Consultatif TEDIS - CCT), set up by the Council Decision to advise the 
Commission  on  measures  taken  within  the  programme.  The  full  Report  is 
available for consultation in DGIII/B/2 Secretariat (fax: +32-2-296 70 19). 

II. THE BACKGROUND OF TEDIS PROGRAMME. 

1. 

2. 

The TEDIS programme was launched in two phases in the late  1980s, to promote 
electronic document interchange (EDI), to develop consistent European standards 
for  EDI,  to  exploit  the  potential  of  EDI  as  a  technology  for  improving 
competitiveness, to prepare the ground for a coherent legal framework  for EDI, to 
address  (increasingly  pressing)  security  issues,  and  to  raise  awareness  and 
facilitate capability transfer between European enterprises. 

Phase I ran  from  1988 to  1989, with a budget of  5.3 million ECU.  Its two main 
aims  were  to  co-ordinate  work  on  the  development  of  trade  electronic  data 
interchange  systems  and  to  alert  potential  users  and  European  hardware  and 
software  houses.  The  final  report  on  this  Phase  stated  that  the  programme  had 
sown the  seeds of  a process which  must run  its  full  term  if  it were to bear  fruit. 
Consequently,  Phase  II  was  set  up  in  1991  and  ran  from  1991  to  1994,  with  a 
budget  of  25  million  ECU.  Its  objectives  were  to  ensure  that  electronic  data 
interchange  systems  were  established  to  the  best  effect,  in  view  of  their  socio 
economic  importance,  and  to  mobilise  the necessary  resources  to  achieve  this  at 
Community  level.  The  EFTA  countries  have  contributed  significantly  to  the 
design, management and financial  support of the TEDIS programme. 

III.  T HE IMPACT OF THE TEDIS  PROGRAMME (PHASE II) 

3. 

EU and EFTA funds  committed to completed projects  in the programme totalled 
approximately 25 MECU, and examination of private sector contributions suggest 
that the programme led to the commitment of approximately  40 million ECU.  A 
total  of  179  projects  were  carried  out,  and  two  compact  discs,  "TRI-EDI"  and 
"EDI  &  ISDN  for  the  Global  Information  Society",  were  produced.  Over  400 
contractor  organisations  were  directly  involved  in  projects.  The  programme  was 
intended  to  be  near  the market,  and  to  address  the  needs  of  the  private  sector  it 
used Calls for Proposals rather than invitations to tender.  Seven calls were issued 

Council Decision 91/385/EEC of 22.7.1991 (OJ No L 208 of 30.7.91) 

13 

k 

5. 

6. 

over  the  course  of  the  programme,  and a  total  of  823  bids  received.  Experts 
nominated  by  national  representatives  evaluated  proposals  to  go  forward  to  the 
CCT. Individual and grouped bids were considered; 22% received funding. 

Interim reports were made annually,  CD-ROMS were produced, and a mid-term 
conference took place in Brussels in  1993, with broad participation from industry, 
the Commission and the TEDIS Consultative Committee, in order to disseminate 
information on the results of the programme and to raise awareness of EDI. The 
44  EDI  awareness  centres  in  the  Member  States  and  EFTA  countries  have 
contributed  to  heightening  the  awareness  of  EDI  in  Europe.  In  the  business 
community, 23% of a randomly-selected sample of businesses across Europe had 
at  least  some  familiarity  with  the  TEDIS  programme.  Approximately  80%  of 
respondents (including both users and non-users of EDI) were more familiar with 
EDI  than five years ago.  TEDIS  support for  the  Western  European EDIFACT 
Board  (WEEB),  for  Message  Development  Groups  and  for  migration  projects 
made  a  contribution  to  the  recognition  of  EDIFACT  as  the  global  trading 
standard.  Approximately  200  messages  were  developed  over  the  period  of  the 
programme, covering all aspects of business. 

initiatives 

TEDIS  supported 
in  the  telecommunications  area,  such  as 
interconnection and EDI registration. Actions were focused  on the links between 
EDI  and  ISDN.  Network  providers  commented  that their  level  of  EDI-related 
business had increased by  about 25% annually  in the past  five  years.  However, 
the full benefits are likely to materialise only in the medium to long term.  Legal 
issues that need scrutiny for the development of cross-border EDI were addressed, 
and  means  of  providing  solutions  were  developed,  such  as  a  Commission 
recommendation relating to the legal aspects of EDI including a European Model 
legal 
EDI  Agreement. 
harmonisation adopted a minimal approach to new legislation in this area, citing 
the principles  of  subsidiarity  and the difficulty  of  legislating  in an area of  ever-
changing  technology.  Attention  was  given  to  the  needs  of  open,  multi-service 
EDI  environments  and to new areas of  EDI.  Research into  security  issues  was 
undertaken which led to field trial projects using international  security standards. 
Inter-sectoral  projects  promoted  cross-border  and  cross-industry  initiatives  and 
helped to develop business partnerships. 

A  study  (EDICON  Consolidation  Study)  on 

Approximately  75%  of  project  activities  are  continuing,  even  though  TEDIS 
funding  is  no  longer  available;  and  29% of  a  sample  of  consortia  specifically 
formed  to bid for TEDIS  work continued to collaborate  even  after  their bid  for 
TEDIS  support  had  been  rejected.  EDI  standards  are  closely  intertwined  with 
business  processes,  and  agreement  on  the  format  and  use  of  EDI  between 
organisations and within and among sectors tends to harmonise data flows  in the 
Union.  This  acts  to  remove  barriers  which  prevent  organisations  from 
communicating effectively,  and to integrate European organizations. 

IV.  SUMMARY OF THE ASSESSMENT 

7. 

The programme scope was considered by the assessors to be ambitious and broad, 
reflecting  a strategy of pursuing a number of related initiatives on several fronts. 

94/820/ECof  19.10.1994  (OJ 338/98 of 28.12.94) 

4 

8. 

9. 

10. 

The  task  areas  were  considered  appropriate  to  the  need  at  the  time  of  the 
programme's  creation. The objectives  of the programme  as a whole provided  for 
flexibility  giving  valuable  adaptability  to  the  programme  and  enabling  its 
activities  to  change  with  new political,  technological  and  market  circumstances. 
However,  it  also  made  effective  project  management  more  challenging.  In 
general,  the  programme  was  considered  to  be  well-managed.  The  approach 
adopted  provided  a framework  for  a good  mix  of practical,  implementation-type 
projects and research-based studies. 

Certain  areas  of  good  practice  were  identified.  In  project  selection,  bidders  had 
non-technical  specifications,  and  received  guidance  on  the  suggested  content  of 
their proposals so as to match the evaluation criteria; and mixed  skills (academic, 
industrial, technical) were used in the evaluation panels, who were encouraged  to 
make suggestions about the evaluation process.  In monitoring and evaluation, the 
use of innovative information technology from the start of the programme made it 
possible  for  project  officers  to  have  access  to  information  about  each  others' 
projects  so as to promote cross-fertilisation,  and also acted as a useful  monitoring 
and dissemination tool.  In project  conclusion and dissemination, link  contractors 
inside and outside the programme sought to involve business intermediaries  such 
as  trade  associations  so  as  to  maximise  dissemination.  Contractors  were 
encouraged to produce a brief summary setting out the key results of their  project 
for widespread dissemination to non-technical readers. 

However,  areas  are  identified  in  which  improvement  could  have  been  made. 
Tighter monitoring and evaluation  of projects  would  have  ensured that projects 
were proceeding  satisfactorily,  and that the  quality  of output  would  be  adequate. 
Project  officers  could  have  been  supported  by  evaluators  and  members  of  the 
CCT  to  provide  technical  review.  It  would  have  been  useful  better  to  identify 
who the  "client" of the project  was, to ensure  that  activities  were  better  focused 
and appropriate  reviews  were  made.  Wider dissemination of project  outputs to 
others  outside  the  programme  or  involved  in  other  programme  areas  was 
recommended. 

Three  ideas  for  further  consideration  were  recommended  by  the  evaluators, 
with the  aim  of building  on the  achievements  of TEDIS, and tackling  remaining 
barriers  to  the  adoption  of  EDI.  The  promotion  of  efficient  transfer  of  data 
between  the public  and  private  sectors  may  complement  the  IDA  programme,  if 
appropriate,  and  promote  greater  administrative  and  economic  efficiency;  the 
competitiveness  of  SMEs  should  be  promoted  through  focused  assistance, 
carefully  targeted at firms capable of gaining added value from the introduction of 
technology;  and the barriers that continue to hinder the take-up  of  pan-European 
EDI should be tackled.  The focus should be on legal, standardization and security 
issues. 

V.  T HE  COMMISSION'S  POSITION ON THE EVALUATION  REPORT 

The Commission welcomes the results of the evaluation report,  since it  confirms 
that  TEDIS  was  above  all  a  well-designed  and  managed  programme  with  a 
significant  impact on the awareness and use of EDI in Europe.  The  Commission 

admits that areas exist  where  improvements  could  have been  made, as  indicated 
by the evaluators, in particular: 

11. 

Lack  of focus:  The  scope  of  the  programme  was  ambitious,  attempting  to  cope 
with  a wide  sector  on a relatively  restricted  budget.  Although  the  areas  selected 
were  appropriate  for  action,  owing  to  the  insufficiency  of  the  financial 
instruments  it was  feasible  neither  to  explore  specific  priorities  in  depth,  nor  to 
achieve highly visible results. 

12. 

13. 

14. 

SMEs have not been the focus  of the attention originally foreseen  by the  Council 
Decision. The magnitude  of investment  needed  for  EDI systems makes them  too 
expensive  for  European  SMEs.  The  Commission  is  persuaded  that  additional 
measures should be taken to catalyse the uptake of technology by SMEs. 

Lack of critical mass: In its effort  to cover as wide a market spectrum as possible, 
TEDIS tackled the needs of various user groups by promoting the development of 
some 200 EDI messages for business transactions, and migration from  proprietary 
systems to "standard profiles".  A lot of small projects were launched in  different 
directions and many  ideas were not  fully  assimilated  or exploited.  Discrepancies 
in  business  models  and  in  data  flows  between  sectors  led  to  fragmented 
development  of  software  systems  for  EDI,  inhibiting  the  development  of  the 
"critical  mass"  required  for  the  widespread  adoption  of  best  practices.  Thus, 
owing  to  a  failure  to  create  economies  of  scale,  the  IT  industry  was  not 
sufficiently  inspired  by the market to develop "off-the-shelf,  cost-effective  and 
commercially viable software  solutions. 

Insufficient cross-fertilisation: An efficient  cross-fertilisation  mechanism was not 
easy  to  set  up  due  to  the  broad  scope  and  the  large  number  of  projects  in  the 
programme,  although  this  could  have  identified  areas  of  commonality  between 
projects  addressing  different  market  niches  and  could  have  led  to  unique 
solutions.  Moreover,  the  business  world  is  an  ever-evolving  environment,  and 
there  was  remarkable  technological  growth  which  favoured  the  emergence  of 
innovative solutions, which were not sufficiently  taken into consideration.  Closer 
synergy  with  RTD  projects,  careful  screening  of  technology  progresses  and 
regular review  of  RTD work programmes  would  have made  it possible  to  adapt 
and focus technology to market needs. 

through  awareness  actions,  and 

The  programme  had  an  impact  in  stimulating  the  development  of  standardised 
solutions  for  EDI,  preparing  the  legal  framework  for  electronic  business 
transactions,  coping  with  security  issues,  promoting  the  wider  use  of  EDI  in 
Europe, 
international 
cooperation  In particular the outcome of the international  cooperation  aspects of 
the TEDIS programme has contributed to the definition  of the Commission policy 
in electronic commerce  in the G7 project  "A  global  marketplace  for  SMEs", the 
CEC-EU Information  Society Forum, and the Mediterranean  Information  Society 
action plan. 

through  favouring 

15. 

The  Western  European  EDIFACT  Board  (WEEB), the  secretariat  of  which  was 
initially  supported  as  part  of  the  TEDIS  programme,  was  transferred  from  the 
Commission  to  the  European  Standardization  Organization  CEN  in  June  1995 
and provided the basis for  the creation of the European Board  for  EDI  standards 

(EBES).  EBES  supports  and  implements  standardization  and  projects  related  to 
EDI and electronic commerce. 

16. 

However, it was considered that the programme could have had  an even  stronger 
impact on the European market if it had been better targeted to analysis in depth; 
if  it  had  taken  appropriate  action  to  reinforce  fewer  but  more  specific,  well-
defined  areas  of high  priority;  if  it had  been  sufficiently  funded  to  stimulate  the 
creation of a critical mass of EDI users, and thus of a self-sustainable  EDI current 
in  the  market;  and  if  it had  been  better  linked  to  RTD  initiatives,  both  to  focus 
RTD policy and actions to match emerging market needs and to fully  exploit and 
spread its results into the European marketplace. 

VI.  FUTURE ACTIONS 

17. 

18. 

The  Commission  gave  further  consideration  to  the  recommendations  of  the 
Report  within  the  framework  for  electronic  commerce,  which  is  critical  to 
Europe's industrial competitiveness  in the global environment and to the creation 
of employment. Driven by the forces of globalization and information  technology, 
electronic  commerce  is  already  leading  to  structural  changes  in  industrial  and 
service sectors, and is therefore  considered to be a cornerstone of industrial policy 
in the information  society. 

Electronic  commerce  involves  an  interplay  of technological,  standardization  and 
legal  issues. The Commission  has recognised  this and  is aligning  its  instruments 
and activities accordingly.  It has already  adopted  a  Framework  Communication 
to  the  Council,  the  Parliament,  the  Economic  and  Social  Committee  and  the 
Committee  of  the  Regions,  entitled  "A  European  Initiative  in  Electronic 
Commerce "3..  The key elements of this European Initiative comprise: 

-  The facilitation  of the access to the global marketplace, including  infrastructures, 
technologies  and  services,  ensuring  global  interoperability  in  a  competitive 
environment; 

-  The  adaptation  of  research  and  development  work  plans  in  information  and 
communication  technology  so  as to  focus  them  on  electronic  commerce  market 
needs to ensure wide availability and ease of use of key technologies and systems; 
-  The  creation  of  a  coherent  regulatory  framework  for  electronic  commerce, 
covering  single  market  questions,  copyright,  digital  signatures,  secure  electronic 
payments,  data  security,  consumer  protection,  protection  of  privacy,  and 
commercial communications; 

-  The  encouragement  of  European  standards  and  published  applications  for 

electronic commerce; 

-  The promotion of the use of the Euro in electronic commerce; 
-  The  promotion  of  a  favourable  business  environment  which  will  reinforce 
awareness  and  confidence  in  electronic  commerce  and  will  encourage  the  large 
scale dissemination of best practice; 

-  The pursuit of international dialogue, involving government and industry, in order 

to achieve global consensus. 

19. 

In  this  context,  the  issue  of  standardization  is  of  particular  importance,  as  new 
concepts  and  needs  are  emerging  calling  for  interoperable  technical  solutions. 

COM (97)  157 

20. 

21. 

Examples  are  to  be  found  in  the  area  of  "light-EDI",  schemes  for  the 
identification,  business  registration  and  certification  of  electronic  commerce 
partners, directories, and developments concerning "trusted third parties". 

As part of the European Initiative in Electronic Commerce, as also announced in 
the Communication to the Council and the Parliament on "Standardisation and the 
Global  Information  Society;  the  European  approach"  and  following  the 
resolutions  of  the  Industry  Council,  the  Commission  is  currently  preparing  a 
Report on Standardization for Electronic Commerce. This Report will analyse the 
position  of  standards  and specifications  in  electronic  commerce,  investigate  the 
existence of standards-related obstacles to the creation of new ICT-based services, 
in particular electronic  commerce,  will  identify  the  major  interoperability  gaps, 
and will recommend areas for further action. 

The Commission will  also address the recommendation to build upon the results 
of TEDIS by promoting the efficient  exchange of information between the private 
and public sectors. A Communication for a second phase of the IDA programme, 
currently being prepared, will propose, among other actions, that the scope of the 
IDA  programme  be  expanded,  if  appropriate,  to  include  the  public-private 
interface and that the achievements of IDA during its first phase shall  serve as a 
basis  for  improving  the  exchange  of  information  between  administrations  and 
industry. 

VII.  CONCLUSION 

The  Commission  calls  upon  the  Council  and  the  Parliament  to  take  note  of  this 
Communication, and in particular of the achievements  of the TEDIS Programme that it 
describes. 

ISSN 0254-1475 

COM(97) 335 final 

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