10.5.2000Hannele Orjala

Changes in the information market

- particularly in the market of statistical information

19.5.2000 A 2

”In the future in the world

there would be a

market for about 5 computers” - Thomas Watson,

IBM, 1943 -

19.5.2000 A 3

”Nobody would want to bring

a computer home”

- Ken Olsen, Digital

1977 -

19.5.2000 A 4

”I have a phone, a mobile

shoe phone”

- Maxwell Smart, Secret Agent, 1960’s -

19.5.2000 A 5

Development of business revenues 1990 - 1999

FIM 1,000

1991 1993 1995 1997 199920

30

40

50

60

FINLAND

NORWAY

19.5.2000 A 6

Increase in the use of information ->strong business side for NSI’s ->

increase in the use of statistical information in society

expanded use of statistics new jobs and know-how additional financing the view of the actual end-user of information

19.5.2000 A 7

Changes are different

1. User’s expectations and behaviour models

2. Mobile terminals (WAP) and WEB3. Wide availability of free versus chargeable information

4. Intermediaries role5. Globalisation

19.5.2000 A 8

1. User’s expectations and behaviour models

timeliness of data Case: volume index of industrial output -> from 45 days 1998 to 30 days 2000

availability of preliminary data Case: barometers e.g. consumer behaviour

speed of data supply Case: loading via Internet a.s.a.p

knowledge of customer needs

19.5.2000 A 9

University

School

Association

Enterprise

State

Municipality

Other

0% 20% 40% 60% 80% 100%

Totally agrees

Almost agrees

Neither agr. nor disagr.

Almost disagrees

Totally disagrees

Being a customer gives me additional value for my own tasks, % of respondents

19.5.2000 A 10

Competition case Periodical Tekniikka&Talous25.5.2000

Conference Board’s Leading Economic Indicators index

first State statistics that anenterprise is producing

global enterprise network - USA now - from summer 2000 England, Germany - from summer 2001 Korea, Japan

19.5.2000 A 11

University

School

Association

Enterprise

State

Municipality

Other

0% 20% 40% 60% 80% 100%

Totally agrees

Almost agrees

Neither agr. nor disagr.

Almost disagrees

Totally disagrees

Even if other alternatives were available I want to continue as a customer, % of respondents

19.5.2000 A 12

2. Mobilephones and Internet per 100 inhabitants

19.5.2000 A 13

The use of Internet, enterprises with >20 employees, 1999

General Infomation search

Competitor analysis

Contacting with public authorities

Recruitment

Financial transactions

0 20 40 60 80 100

Finland

Denmark

19.5.2000 A 14

3. Have you ever had a financial problem in NSIs ?

Statistical authorities do not have the same financial elements as private businesses do

Content producers have a secondary place in portal and mobile terminals

Until large customer volumes start to use technology for their purchase transactions, we have to maintain several information sale channels,which tie up money and resources

19.5.2000 A 15

Wide availability of free versus chargeable information - FREE megatrend

65 million free items of data in the StatFin servicesuitable amount of free information on the Internet?desire to distribute all the tables of Finnish official

statistics publications on the Internet without charge Italy’s National Statistical Institute:

free Internet distribution of census Sweden: free of charge use of its databases OECD: free access to pdf format publications on the

Internet

19.5.2000 A 16

EU Commission’s Green Paper 1999

”In some cases, the commercial reuse of public sector information may however raise questions as to the boundaries and limitations on the roles of the different actors. …At the same time, if the public sector adds value to its own information, launching commercial information products onto a hitherto private information market, the issue of fair competition may be raised.”

19.5.2000 A 17

Wide availability of free versus chargeable

information - FEE adapting

Changes will cause alterations in the revenue structure of chargeable services in the near future

In some cases the change will result in market competition inside statistical institutes!

A need for a restricted and disciplined electronic business strategy

The development of services for segmented customers A portal strategy where we are acting with partners

19.5.2000 A 18

4. Intermediaries

Most information is conveyed to the end-user via the media, researchers, consultants and other processors of information.

The more competitors there are in the information market, the more ideas and assurance of the use value of information the users will get.

19.5.2000 A 19

PRODUCT GROUP CHANGES IN THEINFORMATION MARKET

COMPETITORS/INFORMATION PROVIDERS

Publications,magazines

Basic statistics free to Internet.More electronic publications.More added value services.PDF: free or fee?

Non-fiction books, neomedia,news agencyEsmerk, Startel, WOW,Bloomberg

Register dataBusiness register

Acquisition, co-operation,partnership.Product development is fast.(WAP, WEB, maps, etc.)Free register services available.EBR=European Business Register

Atkos, Mailer, Helsinki Media,MicroMedia,Nordic Printmail, Suomenasiakastieto,Dun&Bradsteet, PHR

Standard productse.g. SuomiCD, customerprofiles, standardpackages formunicipalities

The use of regional data isincreasing.More trend information.More GIS etc. analysing.Technological improvements.Internet, online.More added value services.

CCN Marknadsprofil,Suomen Osoitelähde,Kohtisuora Oy,TietoEnator, VRK,Karttakeskus, Novo Meridians jaNovo,News agencies

Expert servicesinterview services,consultancy,methodology andcustomer education

Expert services are standardisedas a product.Consultancy is a core part ofservice and products.WEBeducation = weducation.

Research and consultancyInstitutes e.g. universities

Data More research. More demand. Eurostat

19.5.2000 A 20

5. Globalisation

It is insignificant where the service to be produced is initially created

Even small actors, such as the Nordic Countries, can serve global demand when the contents are segmented correctly

Co-operation and partnership

19.5.2000 A 21

19.5.2000 A 22

What business are we really in?

We are in the business of producing data, adding value to it and delivering it in as raw data, analysis or know-

how.Adding value to the data means that we can select in

which information market we want to operateAnalysing and consulting entail that we have a strong

expert role in the information market

19.5.2000 A 23

The keystones for success have to be found from an information market strategy that is clearly self-selected.

Those who understand weak signals will prosper.

19.5.2000 A 24

”I am interested in the future because

I am going to be there.”

- Mark Twain, freely translated -