Professional Documents
Culture Documents
EEN Digitalisation Guide
EEN Digitalisation Guide
Network members
April 2023
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About this Guide:
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Chapters:
• Introduction
• Digitalisation
• Digital Transformation (DT)
• Business Model (BM)
• Network Services Provision
• Best Practices
• Success Stories
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Introduction
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The broader framework of Business
Transformation
Entrepreneurship is evolving. Businesses are changing.
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Business Transformation: connection
to Digital
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Advantages of Digital solutions:
According to scientific literature and market surveys, companies realize significant benefits in:
• Customers are more & more demanding 🡪 they expect companies to listen, understand,
and be flexible about the evolution of their needs
• Competition in global scale.
• Employees expectations for a modern management
• Availability of Data (see next slide)
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Data is driving Digitalisation:
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Basic Digital technologies, enabling
Digitalisation:
• Social media
• Mobile technologies
• Cloud technologies
• Big Data analytics
• Internet of Things
• Robots & automation
• 3D printing
• Artificial Intelligence
• Cyber-security
• Blockchain
• And any other Digital technology could help
Tip: A Network member could search for a brief description of the above technologies. Slides
following with brief explanations.
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Basic Digital technologies briefly
explained:
• Social media: digital platforms that allow users to create, share, and
exchange information, opinions, and content (examples: Facebook,
Instagram, Twitter).
• Mobile technologies: devices and applications that allow users to
access and interact with digital content on-the-go (examples:
smartphones, tablets, mobile apps).
• Advanced manufacturing solution: technologies that enhance the
efficiency and productivity of manufacturing processes (examples:
robots and automation, 3D printing).
• Robots & automation: machines and systems that can operate
autonomously or with minimal human intervention, performing
repetitive or dangerous tasks (examples: drones, factory robots, self-
driving cars).
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Basic Digital technologies explained
(2):
• 3D printing: additive manufacturing technology that creates complex
and customized objects from digital models, layer by layer (examples:
medical implants, product prototypes, aerospace components).
• Augmented reality: technology that superimposes digital information
onto the real-world environment, typically viewed through a
smartphone or other device
• Simulation: The use of computer models to simulate real-world
scenarios, allowing for testing and optimization of various processes
and systems (examples: flight simulators, weather forecasting models)
• Horizontal/Vertical integration: integration of various systems and
processes within a company (vertical) or across companies and
industries (horizontal) to create more streamlined and efficient
operations.
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Basic Digital technologies explained
(3):
• Industrial internet\ Internet of Things: internet-connected devices and
sensors to collect and analyze data in order to improve manufacturing
processes and increase efficiency.
• Cloud technologies: on-demand computing resources, such as storage,
applications, and services, delivered over the internet (examples: Amazon Web
Services, Microsoft Azure, Google Cloud).
• Cyber-security: protection of computer systems and networks from theft,
damage, or unauthorized access (examples: firewalls, encryption, antivirus
software).
• Big Data analytics: processing and analysis of large and complex data sets to
extract insights and inform decision-making (examples: Hadoop, Spark,
Tableau).
• Artificial Intelligence: development of intelligent machines that can perform
tasks that typically require human-like perception, reasoning, and
learning (examples: speech recognition, image analysis, chatbots).
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Digital technology becomes more
affordable:
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Two types of Digital changes in a
company:
Companies are changing by using Digital solutions.
These changes are usually falling under the concepts of:
• Digitalisation
• Digital Transformation (DT)
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Explaining the Digital terms &
concepts:
We see many terms such as: Digitisation, Digitalisation, Digital Transformation (DT), Digital
Strategy, Digital Factory (Industry 4.0) etc.
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Distinguish between Digitalisation &
Digital Transformation:
We need to distinguish Digitalisation & Digital Transformation. In many cases, people confuse
these two terms.
They differ a lot. First, in terms of the value produced within the company. Secondary, in terms
of the changes needed. DT is more demanding & with more risk but could produce more value.
Digitalisation can take place with no intention, or with little planning. For example, a company
could simply install an application (such as CRM or ERP etc). Digital Transformation is a much
bigger project that requires lot of efforts, the commitment of the company and well planned
actions in order to succeed.
There is a connection: massive Digitalisation is used for achieving Digital Transformation.
Our Network is meant to provide Digitalisation services. But we are free to help a more
ambitious and complex change, the Digital Transformation.
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The stairway to the Digital “heaven”:
Digitalisation
Digitisatio
n
Note: this scheme was taken out from the proposal of many scientists for achieving DT.
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Digitisation:
Example 2: transfer audio, such as music, speeches and interviews into digital
format.
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Digitalisation
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Digitalisation (one definition):
The aim is to create new value, by using digital technology! In the same time, the
Business Model is changing (a little or more).
Note: value is not always connected to financial benefit. For example, data that
being analysed and used for decision making is also a significant value. Publicity or
positive opinion is also of a great value.
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Examples of Digitalisation (1):
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Examples of Digitalisation (2):
Digitalise the data collection concerning customers, their feedback, reactions &
needs by using Social Media and data analysis. Value produced: introducing new
products, more often, with less time spent for designing, closer to what clients are
demanding, providing better services to clients. These could create more income,
increased satisfaction, understanding client’s needs, better interaction.
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Examples of Digitalisation (3):
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Examples of Digitalisation (4):
Need: One of the world’s leading players in offering innovative solutions for gardening, agriculture, forestry and
industry would like to improve the commercial phase of product presentation.
Digital solution: Together with a startup, they develop a web-based augmented reality applications (WebAR)
for the virtual presentation of products.
Value: This type of activity has allowed, given the excellent yield and visual perception of the objects, to present
products all over the world without having prototypes. In addition, the augmented reality improve all the different
stages of product development: from the design (product validation) to the product presentation
(industrialization). They started to create a mockup of a trimmer and chainsaw and then to apply to the main
products.
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Examples of Digitalisation (5):
See https://en.wikipedia.org/wiki/Building_information_modeling
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Examples of Digitalisation (6):
Need: One of the world’s leading players in design and production of automatic machines for the processing and
packaging of pharmaceutical, cosmetic, food, tea and coffee products would like to improve the full production
efficiency in the manufacturing world.
Digital solution: They develop equipment capable of autonomously manage the production and self-regulate
through empowered algorithms and superior control logics.
Value: This type of activity has allowed customers to increase production efficiency, planning of corrective
actions to optimize processes, avoiding damage and malfunctions by setting predictive strategies. The company
has created new value-added services and laid the foundations for a change in the business model (from
traditional to machine-as-a-service).
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To note…….
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Digital Transformation (DT)
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Digital Transformation (DT):
What is it? It’s a type of business transformation, supported by Digital technologies.
One definition:
Companies use multiple new digital technologies, enhanced with ubiquitous connectivity,
with the intention of reaching superior performance and sustained competitive advantage, by
transforming multiple business dimensions (such as the business model, the customer
experience, their operations and simultaneously impacting employees and networks), (Mariam
et al., 2017).
Note: The above definition shows that DT is, somehow, a massive & coordinated Digitalisation
concept, in which the company changes a lot (multiple business dimensions) in order to reach
superior performance and competitive advantage (=more ambitious concerning the value to be
created).
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DT: more definitions
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And more definitions of DT:
Digital transformation is concerned with the changes digital technologies can bring about in
a company's business model, which results in changed products or organizational
structures or the automation of processes (Hess, Benlian, Matt, & Wiesböck, 2016).
Note: again, the changes in Business Model, but also new products and organizational
changes.
In the general sense, the DT can be defined as the modification (or adaptation) of business
models, resulting from the dynamic pace of technological progress and innovation that
trigger changes in consumer and social behaviors (Kotarba, 2018).
Note: again, the changes in Business Model but also the “pressure” for responding to client’s
needs.
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So, what is eventually DT?
It is an organisational change. It is not about the technology, “but rather about a radical
strategic and cultural change within the organization” (von Leipzig et al., 2017).
A massive Digitalisation plan, along with organizational restructure, with the ambition to
achieve superior performance.
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The importance of Digital
Transformation (DT):
DT is considered to be one of the major challenges in all
industries in recent years, without exception (Schuchmann &
Seufert 2015).
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Examples of Digital Transformation :
Airbnb:
When Airbnb launched in 2008, longstanding hospitality companies
didn’t foresee how the home-share startup would disrupt their
industry. By 2015, Airbnb would surpass Marriott in market
valuation and forever change the hospitality industry.
The inception of the company based on a fully digital offer. This
offer is a part of it’s unique digital Business Model. It offers a
new customer experience and digital operations. The company
created new value for the company by interconnecting clients with
home-owners.
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Examples of Digital Transformation (2):
Netflix:
Netflix had initially a pay-per-rental model (DVD sales and rent-by-mail services). Netflix anticipated a change
in customer demand with rising digitalisation and provided online entertainment, subscription-based,
wiping out the movie rental industry, entirely.
The approach
• In 2007, Netflix launched a video-on-demand streaming service to supplement their DVD rental service
without any additional cost to their subscriber base.
• It implemented a simple and scalable business model and infused 10% of its budget in R&D consistently.
• The company has an unparalleled recommendation engine to provide a personalized and relevant
customer experience.
The value
• Netflix is the most popular digital video content provider with over 85% market share.
• Netflix added a record 36 million subscribers directly after the start of the COVID-19 pandemic.
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Examples of Digital Transformation (3):
Under Armour diversified from an athletic apparel company to a new data-driven digital business stream to
transform the fitness industry.
The approach:
Company acquired several technology-based fitness organizations such as MapMyFitness, MyFitnessPal and the
Endomondo app to obtain the required technology and an extensive customer database.
The app provides a stream of information, identifying fitness and health trends. For example, Under Armour (Baltimore)
immediately recognized a walking trend that started in Australia, allowing them to deploy localized marketing efforts way
before their competitors knew about it.
Company merged its physical and digital offerings to provide an immersive customer experience via products such as
“Armourbox”. The company urged its customers to go online and share their training schedule, favourite shoe style, and
fitness goals. It used advanced analytics to send customers new shoes or apparel on a subscription basis.
The value
• Under Armour created a digital brand with a strong consumer focus, agility, and change culture.
• With the Connected Fitness app, it provided a customer experience tailored to each consumer.
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Examples of Digital Transformation (4)
Sophos: implemented Salesforce to streamline its business and manage customer relations more effectively.
The approach:
• Sophos implemented Whatfix to provide interactive, on-demand training that helped users learn the flow of work. The
24/7 availability of on-demand self-support, contextual guidance, and smart tips allowed Sophos to manage its
new CRM implementation effectively.
• It unified internal communications using Whatfix content. First, they created walkthroughs for the basic functionality
of Salesforce such as lead management, opportunities, etc. Next, they moved to slightly more complex features that
their users were uncomfortable with and created guided walkthroughs and smart pop-ups. Sophos also used Whatfix
to align the sales and product management teams by embedding videos and other media to unify product
communication instead of relying on various communication tools.
The value
• Sophos experienced a reduction in sales operations support tickets globally by 15% (~12,000 tickets). It saved 1070
man-hours and achieved an ROI of 342%.
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Examples of Digital Transformation (5):
Hilti: From a tool manufacturer to a tool management provider
The company:
Hilti is a family-owned business and was found 1941 in Schaan in the Principality of Liechtenstein. After the second
worldware the started in 1950 with fastening technology and in 1967 with the most famous electropneumatic hammer
drills.
The approach:
They provide several service and software solutions to enable the digital transformation of building site of all sizes.
The future:
Hilti will fully focus on further software developments. Target group is building companies from 50 – 200 employees,
because there is no appropriate solution available on the market.
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Examples of Digital Transformation (6):
TRUMPF: offers a new business model (pay-per-part) to utilize spare machine capacity
The approach:
• In these times of skilled-labor shortages, many companies are having problems sourcing suitable employees to
program and operate their machines. This is when sheet-metal processors can benefit from the pay-per-part model.
• The new model means that companies can operate their machines around the clock without having to hire new
labor. It also enables automatic and economic production of small batches – provided that the minimum agreed level
of capacity utilization is met.
• TRUMPF is able to set up the machine to the customer’s exact requirements and leverage data analytics to obtain
maximum productivity.
The value
Pay-per-part customers are only charged for parts that are actually manufactured. This new business model has boosted
productivity by as much as 50 percent.
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Network services supporting Digitalisation
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Getting back to our business:
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How will our Network ignite & support
Digitalisation?
Network advisors must be capable to follow the next steps:
Most promising SMEs are not the technology providers but the ones that
would be technology adopters (or integrators)!
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Where to go for “fishing” and how?
Main Target: (groups of) companies that would benefit from the use of Digital
technology, helping them to realize significant improvements (=creating value) and
to change (a little or lot) their Business Model (how do they do their business).
Secondary Target: Digital technology providers with an offer that could easily help
SMEs to achieve Digitalisation.
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Get in touch with an SME client:
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Alignment of digitalisation with
Business Intentions:
During the discussion with the SME, Network advisor should try to discover the business intentions of the
company, not to “sell” Digitalisation services.
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Get in touch with providers of funding
(EU/country/region/other):
A lot of initiatives and funding opportunities for Digitalisation are running or
will do soon.
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Overview of the regulatory framework
On next slide we have some of the regulatory developments that are either under
discussion or are recently being implemented.
We included not only the EU level policy and regulatory trends but also some
important global aspects. This is important in order to get the overall picture of the
EU’s Digital future within the dynamic and changing world.
The regulatory framework is a topic for providing advisory services from the
Network.
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Overview of the Regulatory Framework:
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1) Business Processes
Ask your client how he/she manages the usual business processes:
Operational processes: taking customer orders, processing product payments, managing bank
accounts
There are many software solutions that manage business processes such as ERP, MES, MRP,
CRM, web portals & apps for ordering etc.
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2) Customer connection
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3) Connect machines
• IoT applications
• Sensors are integrated within the production\warehouse to collect real-
time data about their condition and performance
• Radio Frequency Identification (RFID) tags are attached to track and
manage them and to to read and capture information stored on a tag
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4) Data & new knowledge
Ask your client if they generates any data, if he/she could use data for:
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5) New business opportunities
Ask your client if they could bring new business offer to their market. Then,
help them understand that the usage of Digital technology could help to
generate new business opportunities:
• Reshape customer value propositions
• Transform operations
• Increase flexibility
• Increase responsiveness to fast‐changing customer requirements
• Create greater customer interaction and collaboration
• Develop a customer‐centred business
• Optimize all elements of the value chain
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Another source for Digitalisation topics is
the EC Digital Intensity Index (DII) for
Measuring the Digitalisation in SMEs:
Find suitable Digitalisation topics at the large gaps between SMEs & large companies (2019 data):
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Some examples of real Digitalisation
needs from large companies:
Taken from the MWC OPEN INNOVATION CHALLENGE, with 83 requests from large
companies. These challenges are looking for smaller companies to respond.
HP is a technology company that believes that one idea can change the world. It provides
technology products (PC, printers) and services for consumer, medium business and enterprise.
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Some examples of real Digitalisation
needs (2):
REIG JOFRE, pharmaceutical company listed on the Spanish stock exchange,
dedicated to the research, development, manufacture and marketing of
pharmaceutical products and food supplements.
1) We are looking for solutions that enhance customer engagement and brand
loyalty for our food supplements and cosmeceuticals. Especially, targeting young
people from 20 to 30 years old.
2) We are looking for real-life feedback to detect unmet needs for a better QoL
and wellbeing of our customers. We pursue the development of new ideas and
product concepts.
3) Promote the digital relationship between doctors and pharmacies and
provide them with additional services and content. Also, support pharmacies in their
relationship with their customers.
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Some examples of real Digitalisation
needs (3):
LG Future Home is the venture client unit of LG Electronics and their Home Appliance & Air
Solution business unit. 🡪 Future transformation of Home Appliance and Air Conditioning
systems:
Examples:
• What are key digital transformations that can be expected in the home appliance and air
conditioning businesses?
• How can the home appliance and air conditioning business change in order to promote
sustainable growth?
• How can digital transformation help support customer-centric services?
Sony’s purpose is to fill the world with emotion, through the power of creativity and technology.
🡪 We are looking for companies: in Video, Cloud Computing, Imaging, Artificial Intelligence,
Sensors, Music & Gaming Industry.
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Some examples of real Digitalisation
needs (4):
AGBAR, water experts for over 150 years. Committed to sustainable development.
We dedicate our capacity for innovation to a radically new management of
resources, based on making the most of new digital technologies, on recycling,
recovering and producing secondary raw materials and alternative resources and
on supporting our customers in the transition from the linear model , which
consumes excess resources, to the circular model, which is based on recycling and
recovery.🡪 Solutions for the digitalisation of environmental services.
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Where can we find suitable topics for
Digitalisation?
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The Business Model
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Business Model (BM): How a company is
set up in order to make profit.
Or: the plan for making a profit.
Here we have a kiosk in A fast-food that uses Dig. Web shop that it’ BM is fully
Athens. The Business Model Tech. for receiving orders Digitalized. All the value
is based on the accidental & payments from clients. In produced is thanks to Digital
interaction of the kiosk with its this way, value is created interaction with clients. All
client (a pedestrian, passing (less time spent, more processes are Digitilised.
by in front of it). Not at all satisfaction, more
Digitalised. productivity). Somehow
Digitalised BM.
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Fundamental facts for the Business
Model:
Choosing the right business model is essential to ensure that a
company has the best opportunity for success. The selection of a business
model should be made during the inception of the company.
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Business Model Canvas (BMC):
BMC is a diagram used to visualize a business model. It allows structured organization and a
quick method of evaluation and reflection on the effectiveness of a Business Model.
Most SMEs don’t have it in written form. But they do follow such a shadow plan to achieve profit.
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Business Model Canvas example: Uber
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Business Model Canvas example: Zara
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Business Model Canvas example:
Healthcare Company
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Business Model Canvas example:
Medical Software
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The 5 suggested Digitalisation topics
that can be found in the BMC:
Machines Customer
Processes &
Data:
everywhere
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Good Practice: Greece & Spain company
mission towards Olives producers
Approach: high-tech to low-tech recipients
In 2017, Jaime Duran from Spain asked Costas Karamanis from Greece to promote a Digital application that
helps table olives producers to decide about the maturity of their olives. The solution is using AI technology. The
producer is taking a photo of the olives, on the tree, with his mobile phone. The application is “judging” by the
size & color of olives to advice when the product is mature enough to collect. In this way, the producer could
collect the olives at their best maturity stage. This, in turn, help them to provide product that is of higher value,
with stable size and color (then sold in better price).
A company mission was organized to Kalamata, a very productive area of olives. Of the many “traditional” &
“low-tech” companies that participated in the demonstration of the application, 6 of them decided to use the
system (6 PAs realized).
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Success Stories
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Success Stories from the Network or
the internet:
The following content will highlight specific Achievements (KPI3)
concerning Digitalisation. It is hoped that these will serve as inspiration to
Network partners to implement and deliver successfully.
Areas addressed:
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Bulgarian creative company creates a new
business model from digitalising intangible
cultural heritage
Taratanci is a company that is involved in studying, teaching and promoting Bulgarian folk dances tradition.
Old-school way: study, document and video the folk tradition and then perform to audiences.
Digital-way: to create a graphic universal “language” of horo dances, depicting the unique patterns, which dancers make
with their steps while dancing in a circle.
With the support of EEN team in the Bulgarian Industrial Association Taratanci applied and became the winner of the
European heritage award “Europa Nostra” for 2021.
In 2022, again, with the support of EEN they got funded to visualize digitally more and more traditional folk dances and are
planning an augmented reality tool to provide immersive experience for their customers.
The digital technologies allow for Bulgarian intangible cultural dance heritage to be experienced in many new ways.
Network contact: Hristina Kasparyan
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SG Digital: AI for sea forecast
AlongRoute, a Greek-German collaboration (Costas Karamanis & Matthias Fuchs) :
Maritime transport is responsible for 2,9% of global greenhouse gases. Cargo vessels use routing optimization
IT tools and this can save today 3-10% in fuel consumption. In the heart of routing optimization lies the weather
forecast data, based on modelled physical processes. The problem is that these forecasts have reached an
accuracy limit, due to the chaotic character of the physical models used. Start-up company AlongRoute comes
to change all that with groundbreaking AI-based models, for the first time. The offered forecast data can perform
up to 130% better than the competitive data sets. This has a significant impact towards a greener, safer and
more cost-efficient maritime.
The startup established in 2022 as a joint effort between a Greek environmental SME and a German IT SME.
AlongRoute received significant support from the Enterprise Europe Network in all the phases of its
development, including the introduction of the two companies, the set-up of the start-up, support to win a
proposal of DigiCirc accelerator, pitching in front of investors and multiple connections to potential customer
companies including maritime technology and weather routing companies.
The company was invited to participate in the Websummit, under the umbrella of the Network and presented
their case, achievements and contribution of the Network.
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SG Digital: drone protecting beaches
from litter
Ebredrone (Alba Quer):
Ebredrone is a drone operator company providing services to collect data on
agriculture fields for precision farming, surveillance of wind farms, industry
production sites and warehouse inventory. Alba Quer started to work with
Ebredrone in 2019 and since then they have worked together with the objective to
initiate their internationalisation and explore new partnerships abroad. They
participated in a company mission where they achieved a PA with a French
company and they applied together to a public tender. In addition, they have
participated in two editions of the B2B Dronedays 2.0 where they have achieved
two other PAs with a French and a Swiss company. One of the PAs has been to
conduct R&D for sea surveillance and object detection in the framework of a
European project. Finally, Alba advised them to apply for a Next Generation fund
together with another SME to foster digitalisation on the maintenance task of wind
farms. They have recently been granted the Next Generation fund of 40.000 Euros.
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SG Digital: Digitalise the offerings of an
SME
Arthur Holm (Alba Quer):
Arthur Holm is a Catalan company that offers personalised, innovative and exclusive design technology
for meeting and conference rooms for the institutional, hospitality and education applications. Ex.
Motorized cameras, retractable microphone solutions, etc. Arthur Holm wanted to digitalise their
solution’s portfolio. Arthur Holm was invited to participate at the ISE Open Innovation Challenge in 2022
focused on the Audiovisual Industry with the aim of finding technology providers. The EEN helped them
define their challenge as well as to define the type of provider and collaboration sought that could suit
them best. We worked together with Arthur Holm on reviewing the different proposals received and make
a selection of the most relevant ones. The outcome was a complete agenda of meetings (15) to be held
during the days of the event.
Finally, Arthur Holm agreed on a collaboration with Marvut, one of the companies we have matched them
with. They have developed together a virtual showroom environment to showcase Arthur Holm’s
products. Arthur Holm launched the virtual showroom solution during the last ISE congress held in 2023.
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SG Digital: Social and Induced Perception
of The Tourist Territorial Resources of a
Destination
ITER IDEA (Federica Mori)
ITER IDEA is an innovative startup that focuses on designing and deploying cloud-native applications and
serverless solutions. The company has focused on the systematic management of the innovation, especially
within the open innovation paradigm, and the increase of visibility at European level.
Confindustria Emili-Romagna coached the company for the application to REACH Incubator 2nd Open Call and
the company started on April 2022 the incubation programme with the EXPLORE phase to validate the idea
proposed.
ITER developed an application POInt&Go: a digital touchpoint between public administrations and service
providers operating in their cities in various strategic areas (culture and tourist destinations, mobility and the
organization of urban spaces). The service supports the objectives of involving tourists and citizens, profiling
and monitoring the movement flows of tourist destinations and during crowded events.
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SG Digital: Innovative software for an
efficient management of urban green areas
R3GIS (Luca Picariello):
R3GIS has developed a highly innovative geo-referenced platform to efficiently manage the care
and maintenance of urban green infrastructures. This platform allows to significantly reduce the
maintenance costs of urban green infrastructure and increase the resilience of European cities.
Based on a detailed inventory, the platform allows to manage all elements of green areas as
well as inspections and reports. It gives support for the planning and calculation of cost of
interventions, and monitoring of their execution. The platform is the most complete and
widespread green management platform in Italy: it integrates the most modern web and mobile
technologies and has 20 years of experience and over 200 cities and companies using it in
Europe. Additional modules have been developed in the framework of European-funded projects
to support municipalities in the important task of adapting cities to the effects of climate change.
In this way, citizens can count on a more livable urban environment with a significant impact on
their overall quality of life.
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Italian SME create a virtual environment to
accompany the customers in its value
chain
MOSS (Federica Mori)
MOSS has been established in 1967 with the manufacturing of dry-offset and silk-screen
printing machines for the decoration of plastic objects and containers which is also the origin of
our name: Machine Offset (&) Silk-Screen.
After receiving the support from both DIH-ER and EEN (Confindustria Emilia-Romagna), the
company focused on the digitalization of product (in terms of smart product) and the evolution of
business model (with an as-a-service logic).
MOSS SMART ASSISTANT APP was created to offer new services to customers. Thanks to the
app customers can remotely monitor the performance of MOSS 4.0 systems (production data,
energy consumption, notifications) in real time.
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