Communication from the Commission - Strategies for jobs in the Information Society
Date: 2000-02-04
Institutions: European Commission
Subjects: information industry, information policy, information technology, job access, job creation

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 04.02.2000
COM(2000) 48 final

COMMUNICATION FROM THE COMMISSION

Strategies for jobs in the Information Society

1.

INTRODUCTION

The developing Information Society has the potential to transform Europe
into a society and economy in which advanced technologies are used to
improve the living and working conditions of all citizens.

the Information Society
If Europe grasps the opportunities presented,
promises to deliver a range of benefits, including higher living standards,
entrepreneurial opportunities to participate in new growth markets, changes
to the ways in which existing products and services are produced and
delivered with productivity gains, more fulfilling jobs using advanced
technologies and flexible working arrangements. These same technologies
will enable workers to upgrade their skills as part of a process of lifelong
learning designed to improve their employment prospects and earnings, and
enhance education and learning in schools.

For citizens and communities, the Information Society promises to provide
better public services, as more citizen-centred services offering choice and
convenience are developed by governments. Those living in peripheral
regions and dispersed communities will also benefit from access to economic
and social opportunities provided by emerging technologies.

At the special “Jobs Summit” in Luxembourg November 1997, Heads of
State and Government highlighted the potential impact of the Information
Society (IS) on jobs and requested the Commission to investigate this. A first
response, “Job opportunities in the Information Society”1,
identified the
potential for job creation which could be achieved if Europe attained a
sufficient state of readiness. Priority areas for action were identified and the
main actors were invited to take up the challenge.

Stimulated by the European Council in Vienna December 1998, a high level
Group was established where Member States exchanged national strategies
for the Information Society (updated in some cases). In addition and within
the context of the European Employment Strategy, the National Action Plans
(NAPs) for 1999 included actions for the Information Society. A dedicated
web page has been set up for these national strategies and action plans and is
updated regularly. Other contributions received from representatives of the
Information Society Industries, Social Partners and, amongst others, the
Disability Forum are also included.

In the context of the rapid progress being made towards an Information-
based Society, this report widens the perspective from job opportunities to
job strategies, building on successful initiatives in the Member States and
stressing the strong linkage between enhancing Europe’s response to the
Information Society and fostering employment in Europe.

1 COM (1998) 590 final

3

This report follows the pro-active approach developed within the European
Employment Strategy. It addresses and elaborates the challenges of the
Information Society across all four pillars of the Employment Strategy -
employability, entrepreneurship, adaptability, and equal opportunities -
aggregating the best practices of Member States in order to address the main
objectives of the Employment Guidelines such as easing the transition from
school to work, making it easier to start up and run businesses, exploiting
job creation, modernising work organisation,
new opportunities
supporting adaptability in enterprises, tackling gender gaps, reconciling work
and family life, promoting a labour market open to all.

for

This report elaborates strategies for fully exploiting the employment potential
of the Information Society within the frame of the European Employment
Strategy, and serves as an important contribution to and support for the
e-Europe initiative which is designed to enhance Europe’s readiness for the
digital era.

1.1.

Job potential of the Information Society:

1.1.1.

Information Technology, Growth and Employment

The economies of advanced industrial countries are currently undergoing
substantial technological transformations. This process is exemplified by the
rapid increase of the Information Technology (IT) share in the equipment
capital stock. These rapid changes are unprecedented in economic history
and are the consequence of huge technological advances that can be realised
in the production of IT equipment. This can be seen from the tremendous fall
in prices of IT goods, which has allowed the price of equipment investment
to decline (relative to consumer prices) by about 40% in the US and about
30% in the EU. This process is likely to accelerate with a rising share of IT in
capital formation.

Evolution of average selling price (ECU-Euro) for PC Network

Interface Card, Western Europe

140

120

100

80

60

40

20

0

1996

1997

1998

1999

2000

2001

2002

Source EITO 1999

4

The demand for workers with adequate skills to operate under this new
technological environment is also likely to increase in all industries. On the
other hand, this development also poses serious challenges to labour markets
since it will make other products, production processes, organisational
structures and skills obsolete and will require workers and firms to adapt to
this new technological environment.

1.1.2. User industries provide biggest share of IS job opportunities

The real job potential due to the dynamics of the Information Society and its
new challenges to existing jobs exceed the ICT-sector proper, as already
more and more sectors of the economy incorporate IT applications and
services. Business is affected by the Information Society – strategy, sourcing,
production, marketing and internal organisation. While variances among
sectors prevail, with banking - particularly stimulated by the introduction of
the Euro - at the top, the adoption growth rate of ICT is about 10 % in most
sectors. Therefore, there is a pressing need to adapt all businesses and
workers.

Growth rate

ICT adoption by industry

18%

16%

14%

12%

Utilities

Communications

Insurance/
Other finance

Banking

Process**

10%

8%

6%

4%

2%

0%
0%

Health

Transport

Business
services

Education

Other

ACM*

Local
government

Central
government

Retail/
wholesale

Discrete**
*

20

40

60

80

100

Relative market
size

* ACM: Agriculture, Construction, Mining ** Process manufacturing includes industries that transform raw materials
into products or into substances with new chemical properties *** Discrete manufacturing includes industries that
transform semi-finished products into final products
Source: EITO 99

In less than 10 years half of all jobs will be in industries that are either major
producers or intensive users of information technology products and services.
In "User industries" the demand for IT specialists will double in the next 3
years.

Thus, across all economic sectors, the adaptation of workers to the IS
environment, transforming traditional skills and ensuring sufficient supply of
IS expertise is a top priority.

5

1.1.3.

Services are driving job growth among IS producers

(computer

ICT-sector

The
and
telecommunications) is still the fastest growing sector and provides new jobs,
dynamically creating, substituting, and developing them, both at the highly
sophisticated and the less skilled levels.

hardware,

software,

services,

The software, services and telecommunication sectors continued to increase
overall employment by 10%. However, unfulfilled demand for highly
qualified workers which will be exacerbated by the expansion of e-
commerce, limits the true job growth potential.

1.1.4.

Emergence of e-commerce in Europe

E-commerce in Europe, almost absent just two years ago, is experiencing
strong growth. Total e-commerce in Europe is expected to grow from USD
17 billion at year-end 1999 to about USD 360 billion by 2003, approximately
doubling each year.

E-commerce Revenues, 1997-2003

billion USD

USA

Europe

9

1

1997

654

358

401

180

236

88

29

5

71

17

133

39

1998

1999e

2000e

2001e

2002e

2003e

Source: eStats 1999

Business-to-business e-commerce is expected to account for over 90% of
total e-commerce, thus providing far greater opportunities than the business-
to-consumer market. E-commerce directly impacts, substitutes and changes
traditional business, adding about 6 % as “new business”.

Beyond its direct
revenue impact, e-commerce will change business
processes and organisational models on a large scale. To assure job growth
and maintenance, new skills and forms of work organisation will need to be
introduced alongside technological
investment as well as ensuring a
conducive legislative environment.

1.2.

Still huge gaps to close:

1.2.1.

EU Internet penetration lags still behind US

Internet penetration in Europe - a strong indicator
the overall
development of the Information Society - has made a huge leap forward.
Europe is now the fastest growing market for Internet development. The
number of Europeans using the Internet is about 50 million as of year-end
1999 and is projected to double by 2003.

for

6

Nonetheless, European Internet penetration stands at only one third of the US
penetration rate. European Internet users spend much less time online, less
than a quarter of the rate of US users. Telephone charges are a barrier to
Internet use in Europe, where telephone pricing is based on time usage,
whereas, in the US, local calls are generally charged at a flat monthly rate. It
is therefore important to promote competitive pricing of Internet access,
including local telephone charges.

1.2.2.

European Information Society is still largely exclusive

Not all Europeans have the same opportunity to access the Internet and,
hence, to prepare and take Information Society job opportunities. Internet
penetration rates vary widely among Member States as well as according to
income and gender. The vast majority of European Internet users is still
concentrated in the North of Europe,
though all Member States are
experiencing growth. High-income individuals are about twice as likely to be
Internet users (37%) as medium-income individuals (19%) and nearly three
times as likely as low-income ones (13%). At the end of 1998, only a quarter
of Internet users in Europe were women compared to about 50% in the USA.
Incentives like offsetting home computer purchase costs against personal tax
in Portugal or, in Denmark, the abolition of taxes on home–based telework
stations paid by the employer have helped to achieve a wider and more equal
dissemination of information technologies.

Internet Penetration in Europe per Member State, 1998-2000

1998

2000e

48% 49%

27% 27% 29%

35%

18% 19%

23%

13%

13% 15%

9%

6%

EL

P

I

E

F

IRL

A

B

D

NL

UK

DK

S

FIN

Source: “The European Internet Report”, Morgan, Stanley, Dean, Witter, 1999

Proportion of Internet users by income group 1998

37%

19%

% Internet users

13%

high-income

medium-income

low-income

Source: IDC

7

1.2.3.

Information Society skills gap

Innovation has increased the demand for high-skilled workers (e.g. computer
scientists, engineers) and created new Information Society occupations. At
the same time, it has changed skill requirements for a wide range of non-
Information Society occupations, and raised minimum Information Society
skill requirements outside the ICT-sector.

While the vast majority of big European companies feel impeded by the lack
of skills within their organisations, the skills shortage problem is even more
serious at the small and medium business level. Furthermore, the shortage of
IT specialists in Western Europe estimated at 500,000 “equivalent” IT jobs in
1998, could reach 1.6 million equivalent jobs by 2002 (EITO 1999), unless
necessary training and adaptation initiatives are undertaken.

1.3.

An integral, co-ordinated strategy to Information Society challenges:

An integral approach has to take into account
the broader social and
employment aspects of the transformation of the economy. Thus, as a
complement to the Commission's "e-Europe" initiative, the strategies in this
report are targeted at:

Learning - in order to prepare young people for their future, new forms of
education and training incorporating the new Information Society tools need
to be used by students and in schools. Teachers need to be trained, advised,
equipped, and supported for this challenge, and curricula need to be
modernised;

Working - as flexible, task-oriented and multi-skilled workers are in demand
in the Information Society, all workers need to have Information Society
skills reinforced by access to the Internet. Both short- and medium-term
supply of Information Society specialists must be assured, otherwise job
opportunities and growth will be lost. Equally, new forms of work
organisation e.g. telework, enhance productivity and quality of life in the
Information Society;

Public Services - public authorities can better serve citizens, with greater
transparency, efficiency and quality, by offering the possibility of electronic
access to public administration and by its own wide use of Information
Society tools. As a leader in the adoption of new technologies, they can
overcome the barriers of time and distance and enhance individual support of
citizens;

The Enterprise - the competitive opportunities and innovative possibilities of
the Information Society will provide jobs, especially in SMEs, provided a
competitive infrastructure with clear regulation supports an entrepreneurial
approach within business.

The following chapters set out specific objectives and indicate ways to attain
foster a sustained approach to make the
them, which together will
Information Society integral to Europe.

8

2.

LEARNING IN THE INFORMATION SOCIETY

Approximately 81 million out of the 117 million people aged under 25 in the
European Union are in educational institutions. This is the future labour
force, which depends on high skill, competence and adaptability. This 'Net-
Generation', as it has been called, will live and work in a world where mobile
phones, PCs, Internet etc. are ubiquitous.

Today's educational system must prepare students for this reality. That
implies first access to hardware and software and learning to use the
technology. However, that alone is not enough. What is important, as a
is learning to learn with technology and learning to use
follow-on,
information, to communicate and to innovate with these new possibilities. In
addition, teacher training and support must be improved plus educational
systems as a whole require a strategic rethink if they are to meet
the
challenges posed by the Information Society.

In line with the objectives of the European Employment Strategy which
focuses on the transition from school
to work, all Member States are
preparing young people for the use of new information and communication
technologies and have accordingly launched or prepared schemes to equip
schools with these technologies, including in some cases special provision
for the appropriate training of teachers. However, building on these first
steps, the adaptation of education and learning to the Information Society
needs to be accelerated.

Use to
learn

Learn
to use

Teacher skills

Organisational
change

2.1.

Improve access to Information Society tools

Technical infrastructure

The European Council meeting in Cologne in June 1999, expressed the
determination that Europe should be a leader in the Information Society and
that all schools should be linked to the Internet as soon as possible. The
urgency of this need can be seen from the current position of Internet
connections in schools in Europe. International comparisons illustrate the
risk of the next generation of workers in Europe lacking key skills compared
to their
the Employment
Guidelines 2000 responds to this challenge, calling for schools to be
equipped and for student access to the Internet by the end of 2002.

international counterparts. The proposal

for

9

Internet access in schools

84%

91%

93%

100%

100%

100%

100%

100%

Secondary

Primary

60%

40%

NL*

D*

F*

S

UK

A

P

FIN

IRL

Singapore

Source: European Commission from various sources
(* no data included on primary schools)

In addition, the availability of e-mail addresses, the multimedia capability of
PCs and local area networks are essential parts of infrastructure provision, if
participation is to reach the critical mass required to ensure Europe's position
as a world leader.

Best practice….

• In Germany, a federal government

initiative “Schulen ans Netz” has been
developed in partnership with Deutsche Telecom which links 8000 schools by the
Internet and which is co-funded at the regional level.

• In Portugal, the Program Nónio is broadening Internet installation in all schools of
training centres and associations. The
basic education,
programme “Schools in the NET” is also playing an important role since it is this
programme that has connected all 5-12 grade schools to the Internet as well as all
public libraries.

libraries, vocational

• In France the government action programme for the Information Society focuses
also on education. The programme has set an ambitious target to have all senior
and junior high schools and 40% of primary schools connected by the year 2000.

• In the UK, the programme on the National Grid for Learning provides that all

schools should be connected to a state of the art computer network by 2002.

Recommendations to Member States

Timing

Indicators

Link every school to the Internet

End 2002

1) No. of schools con-
nected to the
Internet
2) PC/pupils

Increase multimedia capability of PCs in
schools

End 2002 Proportion of PCs with

multimedia capability

2.2.

Ensure that teachers have the skills and support

The lack of Information Society skilled teachers, along with the low level of
modern technology equipment in learning centres, prevents an effective use
of Information Society tools both by teachers and pupils.

10

The lack of targeted and on going local support services and the slow pace of
change in the pedagogical, quality control, evaluation and accreditation
systems compound this.

Teachers themselves need to be trained and have access to relevant training
materials. Surveys2 have reported that technology resources are key to raising
standards with a higher priority than paper-based resources, although an
important limitation is the lack of teacher confidence about their own skills
to use Information Society tools and their inability to incorporate these tools
in teaching.

An early step should be to ensure that all new teachers are fully equipped
with the necessary Information Society skills for using the Internet and for
incorporating the benefits of such learning into classroom.

For practising teachers, schools and the State should promote the acquisition
of Information Society skills through lifelong learning. In addition,
the
acquisition of such competence needs to be demonstrated. A recognised
general Information Society skills accreditation system, such as the European
Computer Driving Licence (see the "Working in the Information Society"
chapter
is used in a number of Member States.
Additionally, accreditation systems specifically suited to the needs of the
teachers to teach the use of new Information Society tools should be
identified, recognised and rewarded.

further details)

for

Best practice….

• France has created educational sites EDUCNET and EDUCASOURCE on the
Internet providing a framework for actors in the education system to exchange
among themselves a wide range of material and to extend dialogue.

• In Sweden, under the Tools for Learning Programme, special funds have been
allocated for providing every student with an e-mail address, developing teachers’
skills, providing student teachers with good Information Society skills and the
capability of using these teaching aids in their teaching.

• In Germany, the two programmes “Teach the Net” and “Teach Multimedia”, run
by Siemens and IBM under the initiative “Fit for the Information age”, in co-
operation with the Federal Presidency, aim at preparing teachers and students for
the transition into the information age.

• In Austria, the project “Virtuelle Schule Österreich” aims at the online-provision of
information, support of projects by individual schools and

education-relevant
moderated discussion groups for teachers.

2 Building Teachers’ ICT Skills: The problem and a framework for the solution, Technology Colleges

Trust, 1997
The RM Report 1999: Computers in Literacy & Numeracy in Primary Schools, RM PLC, 1999

11

Recommendations to Member States

Timing

Indicators

Ensure all teachers are verifiably competent
in Information Society skills

End 2002 N° of teachers with In-

formation Society skills

2.3.

Promote Multimedia use

Both the traditional education system and opportunities for independent,
lifelong and special-needs learning, can be complemented by techniques
which utilise the methods of distance learning,
information networks,
multimedia and electronic services.

Multimedia packages for self and group study in the language and reflecting
the culture of the different types of user are still underdeveloped in Europe
due to the shortage of demand and the relatively small-scale market. Whilst
education and training usage are responsible for one third of the multimedia
market,
combined with
linguistic
heterogeneous curricula reduces uptake to non-viable levels. However, co-
ordinated public-private initiatives could increase the potential of these
markets for Europe.

combination

differences

the

of

Main features of Multimedia supply

2.500

1.300

247

1.800

700

5.000

F

D

Hel

I

Es

UK

Number of publishers (e)

Number of MM products (e)

Source: BASE survey 1998, MESO report

Public-private partnerships for the production of educational multimedia
packages, involving teachers and the curriculum setters, supportive of, but
not limited to the core curriculum, can increase the supply of relevant
material for both teachers and students.

This would go hand in hand with an increased use of the web itself, with
online educational platforms as a dissemination tool allowing web-based
training schemes with extensive feedback for reinforcement of learning.

The Commission has,
initiative of its kind, established a
network of networks at national, regional and other levels in 19 countries

in the largest

12

(EUN3). It provides a framework of co-operation with Member States, fosters
school co-operation and provides high quality pedagogical and information
services on the Internet. The awareness raising action Netd@ys Europe
(initiated in 1997) encourages schools, vocational training centres, youth and
In 1998,
cultural organisations to set up educational on-line projects.
Netd@ys Europe attracted 35,000 participating organisations.

Best practice….

• In Greece, “Logomathia” is an educational multimedia (CD-ROM) product for
teaching Greek. Since 1993, it has been used in a growing number of public and
private schools and is particularly important for schools in remote and border
areas.

• France has defined a strategy for the development of the cultural content and a
strengthened presence on the Internet. This includes assistance with multimedia
publishing, the reinforcement of the network of multimedia culture spaces, consul-
tation on copyright and launching research projects benefiting multimedia.

• In Ireland, there are over 45,000 multimedia PCs installed in the 4,100 primary and

secondary schools nationwide, with extra PCs being continually added.

Recommendations to Member States

Timing

Indicators

Develop capability to integrate Information
Society tools in education

End 2002

Support Information Society tools and multi-
media integration within curricula, through
public private partnerships

of

N°
using
teachers
Internet or multimedia in
the classroom

Number
Public/private
ships

and value of
partner-

Support content development networks in the
educational sector

Rate of growth of content
development networks

3.

WORKING IN THE INFORMATION SOCIETY

Technological development and the globalisation of economies have
permanently changed the character of both work and employment. Work in
successful enterprises no longer follows the old industrial model with
hierarchical chains of command, narrow divisions of tasks and a large
component of unskilled labour: it requires flexible, adaptable and multi-
skilled workers. Employment has become on average less stable and less
certain than in the past and more dependent on high skills and adaptability.

The worker and workplace in the Information Society will be very different
from those we are familiar with today. In the Information Society, an
increasing number of people work in jobs centring on information and

3

http://www.eun.org

13

knowledge and will make use of Information Society tools and services, both
at work and during leisure time.

Workers in the digital age therefore need to be ICT literate, highly skilled,
empowered, mobile and ready for continuous training (lifelong learning).
Equally, the Information Society has a huge demand for Information Society
specialists which is unfilled today. As the digital worker is as likely to be
female as male and there are less constraints from disability, distance and
time as a barrier to employment, the Information Society will be a world of
greater access to work for all.

The European Employment Strategy has prioritised adaptability of
businesses and workers, and urges social partners to take the lead through a
process for modernisation of work organisation, training and retraining and
the introduction of new technologies. However,
the evaluation of the
National Action Plans (NAP) indicates that there is still a considerable way
to go in order that enterprises and workers can adapt to the challenges and
opportunities of the Information Society.

3.1.

Raise Information Society skills

The number of employees with Internet access at the workplace is forecast to
grow from 29 million (28% of workers) in 1999 to 77 million (70%) by
2004. Internet-based businesses e.g. portals, intermediaries, Internet Service
Providers (ISPs) as well as computer and telecom industries are fully
dependent on ICT skills. Sectors that are inherently information businesses
(banking, insurance, education, publishing) are already advanced. Retailing
(books, clothing, music videos etc.) and services such as travel, information
and assistance are all undergoing changes. In fact, all workers will need new
Information Society skills for their continuing or changing role in the
to technical
Information Society skills do not only refer
workplace.
operations, but also to professional knowledge, social and organisational
capabilities as well as cognitive and strategic skills.

Information Society literacy is a new skill which, for most workers, will be
acquired at work. Whilst many companies offer in-house training, a recent
survey suggests that there is still room for improvement.

% Companies providing ICT training, 1997-1999

97

98

99

56

56

48

62

65

71

73

67

64

69

D

F

UK

US

14

Source: Spectrum 1999

tool

A useful
to demonstrate the achievement of basic proficiency in
Information Society tools usage is a standardised and recognised certification
of competence, such as the European Computer Driving Licence (ECDL).
The ECDL has been established as a means of benchmarking computer
literacy for business, education and the voluntary sector.

Best practice…

• Sweden: Within the company environment, VOLVO has adopted the ECDL as the

means of accrediting the IT skills of its workforce.

• In Austria, the private-public-partnership initiative “Österreich ans Internet” is
training 2,800 people as ECDL instructors. In a second phase, courses for about
50,000 participants will be included.

• In Denmark, Den Danske Bank has come up with an innovative way of ensuring
that its 14,000 staff are trained to use computers. It has agreed to give a personal
computer at a much reduced price to any member of its staff who passes at least
four of the seven modules of the ECDL within one year.

Recommendations to Social Partners

Timing

Indicators

Provide every worker with the opportunity to
achieve Information Society literacy

End 2003 N° of workers with Infor-

mation Society skills

3.2.

Alleviate the “skills gap” for Information Society specialists

A very visible impact of the Information Society on the labour market is the
increased demand for Information Society specialists. The consequence of
convergence is creating the need for persons with new skills that cross over
the barriers between traditional disciplines (computer scientists, information
documentalists etc.).

There is a wide and growing “skills gap” because the strong demand for 3rd
level/university Information Society specialists currently outstrips the supply
of suitably qualified persons. New initiatives like additional third level
capacity are needed in some Member States. Currently, far more men than
women are attracted to Information Society professions. There is a need to
encourage women to enter these occupations. Universities need to forge new
partnerships with industry to ensure that courses deliver the skills needed in
industry. An important initiative in this area involving some of the leading
ICT players in Europe is aimed at a better (generic) description of skill
requirements of the ICT industry.

A shorter term approach to closing the skills gap is the training of non-
Information Society graduates (short conversion courses) in Information
Society subjects.

15

Projected unfilled demand for network specialists 2002

188200

81800

67000

26100

34700

58700

58000

900

3500

8200

29100

300

2100

7000

8700

L

GR

P

Irl

Sw

Fin

Dk

ES

AU

B

Nl

I

F

UK

D

Source: IDC survey for CISCO

Other Information Society specialists (2nd level education) are also in short
supply, e.g. the demand for computer networking specialists far outstrips
supply across Europe. Training initiatives in this area are frequently operated
by Information Society companies and commercial vendors. School leavers,
older workers and the unemployed could avail of many of these courses,
particularly as the job uptake is high. However, a wider recognition and use
of industry certified training schemes for technician level training is needed.

Best practice…

• In Finland, the government is raising by 30% the number of training places in the
electrical, IT, electronics, communications and data processing sectors by the year
2002, mainly in universities and polytechnics, but also with conversion and
transfer training within adult education, whilst paying special attention to female
participation.

• Ireland has recently launched an industry-driven programme called "Fasttrack to
Information Technology" under which 3,500 long term unemployed people will
receive both technical and personal skills training and be offered full-time
employment in the IT-industry.

• In Austria, the Public Employment Service (PES) is funding ICT training for the
unemployed. In 1999/2000, about 3,000 unemployed will participate in two
different schemes to obtain ICT skills.

Information

• In Germany, four new IT-professions were introduced in 1997 (IT-Systems-
IT-
Engineer,
Technology Engineer,
Manager/Analyst), followed by three new professions in 1998 (Manager for
Audio-Visual Media, Specialist for Media and Information Services and Designer
for Digital and Print Media). In a similar way, new apprenticeship schemes were
introduced in Austria.

IT-Systems-Manager,

16

Recommendations to Member States

Timing

Indicators

Increase capacity and uptake in 3rd
level
education, maintaining gender balance and
matching industry requirements

End 2003

1) N° of 3rd Information
Society course places

2) Proportion of women
to men in Information
Society education

Promote IT courses at 2nd level including the
use of industry certified training schemes

From
2000

N° of 2nd level training
places

3.3.

Modernise work organisation in the digital workplace

The Information Society enables a changed relationship between employees
and their employers to the benefit of both. To stay competitive, companies
must become more responsive to their customers' needs and workers have the
opportunity to have an enriched working experience including more
empowerment and flexible work/home arrangements. It has also provided the
opportunity for new types of employment relations. This new relationship
potential has been recognised in a communication4 on modernisation of work
and its follow-up establishment of the European Work Organisation Network
(EWON) aimed at fostering competitiveness, employment and the quality of
working life.

One of the more visible indicators of changes in work organisation is the use
of telework. With an appropriate framework, which guarantees rights and
obligations for teleworkers and their employers, telework will increase. A
recent report indicates that the total number of Europeans in recognised
telework schemes is about 6 Million with a further 3 million in informal
telework arrangements.

T elew orkers as a % of L ab our Fo rce

18

16

14

12

10

8

6

4

2

0

F I

S

N L

D K

U K

D

E U 1 5

IR L

I

F

E

Source: Benchmarking Progress on Telework and Other New Ways of Working in Europe, Empirica 1999

4 Modernising the organisation of work - A positive approach (COM(98)592)

17

Best practice…

• In Denmark, the government has issued guidelines for telework after consultations

with the social partners.

• In Ireland,

the social partners have jointly prepared guidelines for telework.
Reports have indicated a sixfold increase in applicants for jobs advertising a
telework possibility.

• In Austria, the trade unions have issued standardised contracts for teleworkers
(“Musterdienstvertrag”). The social partners for the mineral oil industry and other
sectors have signed collective agreements concerning telework.

Recommendations to Social Partners

Timing

Indicators

Set-up framework conditions and practical
arrangements to enable telework to take place
on a wide scale.

End 2000 Coverage

of

collective

agreements on telework

3.4.

Promote employment of people with disabilities in the Information
Society

Disability has traditionally been a barrier to employment for many persons.
In the digital age there is much less reason for this. Rigid hours and
geographical locations are giving way to flexible time and geographical
location. Also the working skills themselves are less motor and more brain
intensive. This opens the door to employment opportunities for many groups
of disabled people who have been traditionally denied employment on
grounds of accessibility and inability to perform the required tasks.

As part of their manifesto on employment issues, the European Disabilities
Forum (EDF) believes that “information technology as a tool for employing
new and hitherto unemployed groups of disabled people is an important
aspect of the Information Society”. Equally, the group Information Society
disAbilities Challenge (IsdAC) has stated that more than one in ten citizens
of the European Union are disabled in some way that affects their ability to
fully participate in society. As many as one in three people with disabilities
could make a significantly increased contribution to society and the economy
if they became empowered through the use of Information Society tools.

Recommendations
Society Industries

to

Information

Timing

Indicators

Ensure that standards for user-friendly
equipment are applied to improve the
with
of
employability
disabilities.

people

From
2000

of

N°
disabilities
employment

people with
paid

in

4.

PUBLIC SERVICES IN THE INFORMATION SOCIETY

Information Society will

The
radically transform the way public
administrations function. E-administration can overcome barriers of time and

18

distance to give citizens public information and services when and where
they want them and in an accessible form.

This requires a determined effort by all public authorities to accelerate the
use of Information Society tools in their everyday relations with citizens and
business, thus increasing the efficiency and quality of their services. Priority
should be given to access to public information, on-line transactions with
administrations, digital procurement procedures, social and cultural services.

Where appropriate, this could involve a reallocation of resources to support
investment in ICT. In so doing, public administrations should act as catalysts,
thereby prompting an enhanced use of Information Society tools by citizens
and businesses.

Public administrations have started to integrate Information Society tools in
their internal operations. However, the new tools have been adopted on an ad
hoc basis. In order to make the digital state a reality, a comprehensive
transformation rather
in
conjunction with the training of public employees. Training for public em-
to improve the
ployees is crucial and the objective should be twofold:
efficiency of the administration and to make the best use of Information
Society tools in the public interest.

than piecemeal

is necessary,

improvement

This approach is needed to develop entrepreneurship as foreseen by the
European Employment Strategy making it easier
to start up and run
businesses.

4.1.

Make Online Services available to the Citizen

Priority should be given to online access to public information relevant to the
daily life of the citizen, presented in a user-friendly way, with cross-
references to other services so as to facilitate administrative procedures.

Danish life cycle website home page

19

the most
Public administrations should enable online transactions for
common administrative procedures, like income tax returns. A first step is to
make all forms available online and then to allow for their electronic
submission. One issue of importance in this regard is the adoption of a
regulatory framework for the use of the electronic signature.

Public Employment Services (PES) are increasingly offering their services to
jobseekers and employers online. Their objective is to create an electronic
market where jobseekers and employers can be brought together without the
direct intervention of the PES local office. All PES therefore, have Internet
sites containing information about the PES and how their services can be
accessed. In addition, many have moved further and now offer employers'
job vacancies online and databases of jobseekers which employers can
access.

the European level

the European Employment Services (EURES)
At
network, which brings together all of the PES of the EU/EEA (European
Economic Area), has the objective of facilitating the free movement of
workers within the single market. In cooperation with the national partners
EURES recognises the need to offer self-service backed-up by a human
network of some 500 Euroadvisers. The EURES website5, therefore, offers
information on the EURES network of Euroadvisers, the services they can
provide, job vacancies and information on living and working conditions,
with links to all of the national PES websites.

Another good example is the website which is at
the
Commission's "Dialogue with Citizens and Business". It provides full details
of the rights and opportunities available to individuals in the EU6

the heart of

Interest in online public services in Europe

42%

48%

34%

11%

E-democracy

distance learning

job hunt

E-administration

Source: Eurobarometer, 1999

5

6

http://europa.eu.int/jobs/eures
http://europa.eu.int/citizens

20

Best practice…

• In Denmark, the ”Life cycle” web page (see preceding) is a user-friendly web site
providing the citizen with the necessary information on a great number of
administrative procedures. The initial page presents the main events of a lifetime,
e.g. finding a job, getting married or having a baby, and explains how to fulfil the
necessary administrative procedures.

• In Austria, the “www.help.gv.at” website provides online information on public
services in Austria, i.e. on which public authorities are to be contacted on various
everyday life situations. Forms can be downloaded and used for applications.

• In the UK, the White Paper “Modernising Government” aims at providing the
means for all transactions with the administration to be completed electronically.

• In Portugal, citizens can deal with the government via e-mail and over 100
administrative procedures (issuing of driving licence, registering of births, etc.) can
be done online.

• In Germany,
concept
for
signature.

the town competition called MEDIA@KOMM selects the best
implementing electronic administration procedures using digital

Timing

Indicators

than

public

10,000

three years,
In Greece, during the last
more
sector
employees have received training in
the National
information technology at
Public
Centre
Administration.Recommendations
to
Member States

for

Set up citizen-friendly Internet Page7 with a
clear site map providing information about
civil rights and offering links to the relevant
public services.

Make electronically available all public
services capable of
such delivery while
reinforcing the human interface with the
citizen

End 2000

Establishment of Central
Government
Citizen’s
pages

End 2004

1) N° of
available services

electronically

2) Number of public sector
employees being trained in
Information Society skills

4.2.

Provide Online services for business

Businesses need quick, clear and unambiguous procedures for administrative
and other issues. A one stop shop to access forms and accompanying
explanations go a long way to alleviating some of the frustrations of business
(especially
limited
and medium-sized
administrative resources). Relevance and ease of use is also important. A

enterprises with

small-

for

7

as well as through other means (telephone and teletext service)

21

strong reason why some SMEs do not use the Internet is because they do not
feel it provides them with information which helps them run their business.
Major progress was recently achieved in this direction by the development of
the European website "Dialogue with Business"8

Generally,
the online provision of useful public information and the
possibility of processing administrative procedures via the Internet will
stimulate the use of the Internet and ICT by SMEs.

Best practice…

• In Greece, the Ministry of Finance is pilot testing a system for electronic filing,

processing and payment of quarterly VAT tax forms.

• In Spain,

the “Network System” of

for key
administrative procedures in the development of a company's activities to be
carried out electronically. This includes the recruitment of workers, the notification
of changes in labour conditions and social security payments.

the Social Security allows

• In Austria, “Finanz.online” offers to licensed tax consultants and economic
advisors online access to their clients’ tax-files, while a private-public-partnership
will allow the online access to some official registers.

• In Germany, income tax declarations can be submitted electronically and this
system will be extended to VAT and other taxes. It has also adopted rules on public
procurement to allow public authorities to use electronic invitations for tenders.

Recommendations to Member States

Timing

Indicators

about policies

Provide One Stop Internet Shop for Business
and
answering questions
legislation that affect business, and providing
information about business news,
trade
shows, potential business partners, tendering
opportunities, etc.

End 2000

1) Establishment
Internet sites

of

2) Proportion of calls
for
tenders registered
on the Internet.

4.3.

Ensure citizens access to online information and services

In order that citizens can take advantage of the provision of online
information and services, they must have easy access to them. Although
more and more Europeans have access to the Internet either from home or
work, there are still large numbers of persons without the means for such
access. It is imperative to ensure that every citizen has the possibility to
access online public information.

Training programmes in the use of Information Society tools are the
necessary complement to the provision of electronic access points. In public
access points the citizen should be offered ad hoc support when necessary, as

8

http://europa.eu.int/business

22

well as regular training modules on the most common online administrative
procedures.

Virtual map of City of Bologna

Best practice…

• In Italy, the city of Bologna has set up a comprehensive network of self-service
teller machines (Dimmi) which provide citizens with a wide range of services from
the Municipality and other bodies,
in particular the ones relating to payment
operations.

• In France, the “Internet Day” held in March 1999 gave people the opportunity to
freely access the Internet in schools, public places, shops and banks. It included
“Internet on wheels” i.e. buses that helped to provide Internet access to rural areas.

• In Ireland, the annual school based Netd@ys awareness event addresses the whole
population offering assisted access to the Internet to those who do not have PCs at
home or in the workplace.

• In Greece, a network of Employment Promotion Centres (EPCs) equipped with a
job searches and
EURES office and public access computer
information on active employment schemes will be created. The Centres will be
linked with the local training centres and unemployment benefit offices.

facilities for

• In the UK, under the 'IT for all ' initiative, the British Government will set up a
network of over 3,000 community-based IT access centres along with a programme
to wire up all public libraries as 'information hubs' for their local communities by
2000.

23

Recommendations to Member States

Timing

Indicators

Set up public Internet access points supported
by on-site
Information Society literacy
training in all communities e.g. libraries, post
offices, etc.

End 2001 N° of access points

/1000 inhabitants

5.

THE ENTERPRISE IN THE INFORMATION SOCIETY

The Information Society and electronic commerce will drive economic
growth and create jobs, largely determining the standard of living in Europe.
New business opportunities for new companies will be enabled by giving
birth to entirely new classes of business intermediaries such as aggregators,
auctions or exchanges9. Europe is in need of entrepreneurs willing to exploit
these opportunities.

The Information Society not only opens new markets, but also changes the
way business is done. For Europe continuous innovation facilitated by the
application of Information Society tools will be of paramount importance to
improve its competitiveness and to create jobs. Progress in this respect is,
thus, a crucial aspect
the European
Employment Strategy concerning the development of entrepreneurship.

in achieving the objectives of

Europe is lagging behind in developing and using modern information and
communication technologies (ICTs). Too few European companies,
in
particular SMEs, fully exploit all the possibilities of the Information Society.
For example, in the processing of payments there is evidence that there is
still room for improvements. Many SMEs are less technologically advanced
than large businesses and risk exclusion from the electronic marketplace with
potential consequences both for the firm and the workplace.

Use of IS tools in business, 1998

100%

50%

0%

F

I

D

UK

USA

Japan

sell online

purchase online

advertise online

have a website

have PCs

Source: Spectrum 99

9 Aggregators pool supplier content to create a searchable one-stop shopping mall for buyers within a
business community; auctions pit buyers against each other to purchase seller surplus; exchanges
provide vetted players with a trading venue defined by clear rules.

24

The development of the Information Society in Europe will create huge
needs in terms of telecommunications infrastructure. European Internet
traffic relies on telecommunications networks, which were designed for
telephone traffic. Connections between Member States lack bandwidth
(capacity) compared with the ones to the USA, i.e. it is often faster and
cheaper to send Internet data to the USA and back, than to a neighbouring
Member State. Ensuring appropriate telecom infrastructure and competitive
pricing between and within Member States is a necessary condition for the
development of the digital economy in Europe. For companies the quality of
services available on the Internet (speed, reliability, security, authentification
etc.) are essential elements in their decision to use the Internet.

Acceptance of e-commerce will be determinant for its take-up in Europe.
Today concerns about the security of e-commerce appear to be a barrier. The
fact that it is difficult to determine the applicable jurisdiction is a major issue
for e-commerce in Europe. E-commerce, which adds a new dimension to the
Single Market, requires a regulatory framework at the EU level.

Barriers to E-commerce development

Costs

Integration with business processes

Lack of resources

Lack of market information

Lack of security/encryption technology

Consumer concerns for security

External barriers

Internal barriers

5.1.

Exploit new business opportunities

Source: Ernst & Young

New business opportunities are essential for job creation and need to be
promoted by encouraging greater entrepreneurial awareness across society.

The European ICT sector has benefited from growing investments from
venture capitalists and is now the largest sector
for venture capital.
Investment in early stage technology however is still much more limited than
in the US.

25

Venture capital investment in ICT sector in Europe

10%

570

1994

16%

902

1995

14%

924

1996

21%

3000

17%

1641

1997

1998

mio ECUs

as % of total VC investment

Source: EVCA 1999 yearbook

Although access to capital for some industries is still an obstacle to the
launch of new type businesses, equally important is the shortage of ICT
specialists due to the skills gap which is the stumbling block. Furthermore,
start-ups suffer from competition by larger companies on the labour market.
Stock options are a useful - and often the only - way to attract highly
qualified people in these new companies and should not be discouraged by
inadequate fiscal policies.

Best practice…

• In Belgium, equity participation of employees has been legally reinforced with
favourable tax treatment for the allotment of shares below par rating or options on
shares.

Recommendations to Member States

Timing

Indicators

Encourage entrepreneurship in new services
and businesses through fiscal policies re-
warding risk taking, especially concerning
stock options

End 2000

1) % of venture capital
into high technology
2) N° of start-ups

5.2.

Promote innovation and competitiveness

Innovation leads to the creation of completely new markets and services. It is
a source of economic growth and job creation. Innovation brought by the
Information Society will make businesses more competitive by being more
flexible, more responsive and more cost-efficient. E-commerce will also
allow businesses to compete on a world stage wherever they are based in
Europe, thus overcoming the peripheral disadvantages.

European companies do not sufficiently recognise how the Information
Society tools could improve their competitiveness, although it will
fundamentally affect them over the next 2-3 years. Up to now, these tools
have been applied primarily to cost cutting – the cost of operating business
and the cost of reaching customers - rather than to innovation in new
products and services markets. The true benefits of the Information Society
will come from a dynamic and innovative use of these tools, improving
quality of customer service and access to new customers and markets.

26

Benefits from Internet use in business

Companies agreeing that the Internet
will allow them to cut costs /
increase revenues over the next 3 years

38%

17%

8%

15%

26%

13%

cut costs

increased revenues

Nordic countries Rest of Europe USA

Source: Bathwick group, 1998

Public authorities have a major role to play in promoting innovation in
Europe, through partnership with business. Public programmes should be
used as springboards for private initiatives. The EU Action Plan on
innovation and the European Fifth Framework Programme for R&D are both
intended to stimulate innovation in Europe.

Best practice…

• In the UK, the Enterprise Fund unveiled in December 1998 aims to channel
venture capital worth £150 million into small business over three years. It will
focus on providing capital for early-stage, technology-based enterprises in the UK.

• In Denmark, a centre for IT-research, the “IT high-school” and the Research-Net
give access to high capacity facilities for the strengthening of research and
electronic research co-operation between universities and other institutions for
higher education.

• In Germany,

the Ministry of Economy and Technology supports "regional

competence centers" improving access to information on e-commerce.

Recommendations to Member States

Timing

Indicators

Enhance industry-research collaboration

2002

% co-funded research

5.3.

Promote the access of SMEs to the digital market place

less
While much progress has already been achieved, SMEs are still
advanced in using Information Society tools than large companies. SMEs
tend to consider that their business processes are less complex and might not
require the use of Information Society tools. They are also sensitive to cost of
access and availability of infrastructure.

Publicly funded programmes need to actively promote the use of Information
Society tools in a way which is suited to the needs of SMEs. Networking
with other businesses,
including those that create or disseminate such
technologies should be stimulated by pilot actions. The specific dimension of

27

SMEs should be fully taken into account into all public programmes which
promote the Information Society.

Internet access in in business, 1999

80%

60%

40%

20%

0%

large

medium

small

micro

F

I

UK

D

Source: Spectrum

Best practice…

• In the UK, under the White Paper “Our Competitive Future: Building the
Knowledge Driven Economy” launched in December 1998, some £20 million are
invested over three years to help triple the number of UK small businesses which
are wired up to the digital marketplace to one million by 2002.

• In Greece, the Ministry of Development has supported a number of electronic
commerce prototype applications that demonstrate the significance of e-commerce
in specific sectors of the economy, as well as the creation of electronic commerce
centres throughout Greece for the support of small firms in the introduction of e-
commerce applications.

• Germany has launched a competition for newly founded multimedia enterprises

with a view to doubling their number.

Recommendations to Member States

Timing

Indicators

Mainstream the IS needs of SMEs in public
programmes

From
2000

Diffuse best practices and benchmark use of
ICT by companies

2002

% of funding to SMEs

% of companies using
Internet-based services

6.

CONCLUSIONS

This report sets out a strategy to prepare Europe for the future, a strategy focused on
people and communities whose participation is essential to Europe's progress towards
the Information Society.

The Information Society will stimulate economic growth and productivity, create new
economic activities and jobs. It can also improve education opportunities, health care

28

delivery and other social services, and improve access to cultural and leisure
opportunities. Unlike other
the rapid development and
technological changes,
diffusion of the Information Society affects all economic sectors, organisational and
work structures, public services, cultural and social activities.

Member States have set out national Information Society strategies for improving the
quality of people’s lives at work and in leisure. The high level Group has provided a
forum of exchange of these strategies, and the opportunity to learn from experience in
other Member States. The analysis and exchanges on the national strategies has led to
the identification of a number of best practices (already tried and tested in at least one
Member State) which set
the achievement standard for moving Europe rapidly
forward into the information age, thus gaining the benefits particularly in terms of
employment.

Europe's advance into the Information Society is a shared responsibility requiring
rapid action. Individuals, businesses and organisations, as well as social partners, have
the responsibility for developing their know-how and availing themselves of the
opportunities offered. Lifelong learning at all levels is a critical responsibility for all
actors concerned. Adaptation to the benefits and changes of the Information Society
can best be accommodated through a process of co-operation, a role for the social
partners to take the lead.

Social partners and the public sector must create conditions for building an
Information Society which meets the needs of both individuals and business through
favourable conditions for competition and growth, including education, development
of infrastructure and legislation.

The Commission must also contribute, orienting economic and framework conditions
towards a cohesive society with high living standards. In a practical sense,
the
Commission will continue to host the high level Group, and expand its interaction to
social partners, information society businesses, and civil groups.

The Commission therefore
following
recommendations in order to hasten Europe's successful entry into the Information
Society.

to take up the

all parties

invites

29

RECOMMENDATIONS

in

Learning
the
Information
Society

Approximately 81 million out of the 117 million people aged under 25 in the European
Union are in educational institutions. This is the future labour force, which depends on high
skill, competence and adaptability. This 'Net-Generation', as it has been called, will live and
work in a world where mobile phones, PCs, Internet etc. are ubiquitous. Today's educational
system must prepare students for this reality. That implies first access to hardware and
software and learning to use the technology. However, that alone is not enough. What is
important, as a follow-on, is learning to learn with technology and learning to use informa-
tion, to communicate and to innovate with these new possibilities. In addition, teacher
training and support must be improved plus educational systems as a whole require a strate-
gic rethink if they are to meet the challenges posed by the Information Society.

Actors

Recommendations

Timing

Indicators

Member
States

Link every school to the Internet

End
2002

1) N° of schools connected to
the Internet
2) PC/pupils

Increase multimedia capability of PCs in
schools

Proportion of PCs with multi-
media capability

Ensure all teachers are verifiably competent in
Information Society skills

End
2002

N° of teachers with Information
Society skills

Develop capability to integrate Information
Society tools in education.

End
2002

N° of teachers using Internet or
multimedia in the classroom

Support Information Society tools and multi-
media integration within curricula,
through
public private partnerships

Support content development networks in the
educational sector

Number and value of Public/
private partnerships

Rate of growth of content
development networks

Working in
the
Information
Society

Technological development and the globalisation of economies have permanently changed
the character of both work and employment. Work in successful enterprises no longer
follows the old industrial model with hierarchical chains of command, narrow divisions of
tasks and a large component of unskilled labour: it requires flexible, adaptable and multi-
skilled workers. Employment has become on average less stable and less certain than in the
past and more dependent on high skills and adaptability. The worker and workplace in the
Information Society will be very different from those we are familiar with today. In the
Information Society, an increasing number of people work in jobs centring on information
and knowledge and will make use of Information Society tools and services, both at work
and during leisure time.

Actors

Recommendations

Timing

Indicators

Social
Partners

Provide every worker with the opportunity to
achieve Information Society literacy

End
2003

N° of workers with Information
Society skills

Coverage
agreements on telework

collection

of

of

Set-up framework conditions and practical
arrangements to enable telework to take place
on a wide scale.

End
2000

30

Member
States

Increase capacity and uptake in 3rd
level
education, maintaining gender balance and
matching industry requirements

End
2003

1) N°
of
Society course places

3rd

Information

Promote IT courses at 2nd level including the
use of industry certified training schemes

From
2000

2) Proportion of women to men
in Information Society educa-
tion

N° of 2nd level training places

that

standards

Ensure
user-friendly
equipment are applied to improve the employ-
ability of people with disabilities

for

From
2000

N° of people with disabilities in
paid employment

The Information society will radically transform the way public administrations function. E-
administration can overcome barriers of time and distance to give citizens public informa-
tion and services when and where they want them and in an accessible form. This requires a
determined effort by all public authorities to accelerate the use of Information Society tools
in their everyday relations with citizens and business, thus increasing the efficiency and
quality of their services. Priority should be given to access to public information, on-line
transactions with administrations, digital procurement procedures, social and cultural servi-
ces.

Information
Society
Industries

in

Public
Services
the
Information
Society

Actors

Recommendations

Timing

Indicators

Member
States

Set up citizen-friendly Internet Page with a
clear site map providing information about
civil rights and offering links to the relevant
public services.

End
2000

Establishment
Government Citizen’s pages

of

Central

electronically available

Make
all public
services capable of such delivery while rein-
forcing the human interface with the citizen

End
2004

1) N° of electronically avail-
able services

2) Number of public sector
employees being trained in
Information Society skills

End
2000

1) Establishment of
sites

Internet

2) Proportion
tenders
Internet.

of
registered

calls
on

for
the

End
2001

N° of access points
inhabitants

/1000

about

questions

Provide One Stop Internet Shop for Business
answering
and
legislation that affect business, and providing
information about business news, trade shows,
potential business partners, tendering oppor-
tunities etc

policies

Set up public Internet access points supported
by on-site Information Society literacy train-
libraries, post
ing in all communities e.g.
offices etc.

31

The
Enterprise in
the
Information
Society

The Information Society and electronic commerce will drive economic growth and create
jobs, largely determining the standard of living in Europe. New business opportunities for
new companies will be enabled by giving birth to entirely new classes of business interme-
diaries such as aggregators, auctions or exchanges. Europe is in need of entrepreneurs
willing to exploit these opportunities. The Information Society is not only opening new
markets, it is also about changing the way business is done. For Europe continuous
innovation facilitated by the application of Information Society tools will be of paramount
importance to improve its competitiveness and to create jobs.

Actors

Recommendations

Timing

Indicators

Member
States

Encourage entrepreneurship in new services
and businesses through fiscal policies re-
warding risk taking, especially concerning
stock options

End
2000

1) % of venture capital
high technology

into

2) N° of start-ups

Enhance industry-research collaboration

2002

% cofunded research

Mainstream the IS needs of SMEs in public
programmes

From
2000

% of funding to SMEs

Diffuse best practices and benchmark use of
ICT by companies

End
2002

% of companies using Internet-
based services

32