IT Usage
End-User Profile
Private Industry: Private industry is by far the largest end-user segment accounting for an estimated 65% of all sales (approximately $80 million). As in the U.S., large segments of private industry in Denmark have downsized; consequently, private industry is very PC oriented, while approximately two-thirds of all PC's used professionally are hooked up to a Local Area Network. (USDOC, International Trade Association)
Public Sector: The public sector in Denmark employs approximately 800,000 people, and is estimated to account for about 20% of total Danish purchases of PC application software ($25-30 million). Other than infrastructure operations such as public transportation, power plants and hospitals, the public sector is rarely engaged in anything that can be performed by the private sector. Both central and local government users are able to purchase software and all other requirements from any vendor they chose. However, in accordance with EU regulations, a public tender must be used for purchases of information technology with a value over DKK 1.6 million ($250,000 U.S. dollars). (USDOC, International Trade Association)
Private Users: One in three Danish households has at least one PC making Denmark the most intensive private PC user of all the Nordic countries. This is expected to increase to 65% before 2000. Women are very infrequent purchasers of private use PCs. In only 9% of purchases did the woman make the decision to buy whereas the man of the home decided in 54% of the purchases. As the unit price per PC continues to decrease, private users will increasingly demand the same performance at home that they are used to at work. Further, this means that the distinction between the application software sold for private versus professional use is becoming more and more blurred. The private user market does differ from other buyers in one large respect--the actual sales potential is quite low. Two main reasons attribute to this. First, although organized piracy does not appear to be a major problem, individual piracy does. Many private users are reluctant to spend their money on anything other than hardware. Second, much like software companies in the U.S., many vendors are increasingly providing their software at little or no cost to certain target groups, such as students or to supply programs used professionally at the work place. (USDOC, International Trade Association)
The Four Development Stages (Ministry of Research and Information Technology)
In a telephone interview poll conducted in January 1996 by Rubicon for the Ministry of Research and Information Technology, all 275 local authorities and 14 counties were asked about their current use of advanced office automation tools and their expectations of the introduction of new tools during 1996. According to the poll, 17 local authorities were on step 4 on the development ladder (as described above) as of 1996. The figures also show that 83% of the local authorities and counties were using either e-mail (step 2) or using case handling systems or electronic filing (step 3). Only one tenth of the local authorities and counties were not using IT of any type (step 1). Conclusions resulting from the poll were that there is a great interest within the local authorities and counties in participating actively in the development of the information society for the benefit of citizens and firms. Both stakeholders stand to gain from faster case processing, and for the benefit of the local authorities that may introduce much more flexible routines using technology features. (Ministry of Research and Information Technology)
Internet Users
Although there have been no major demographic surveys of Internet users conducted in Denmark, there was a survey conducted by the Egeberg advertising agency that in a spot test of 2,000 interviews found 49 users. The results of this narrow survey support other major studies conducted by the U.S. that Internet users are generally characterized as the following:
Also, the Internet is spreading to new sectors of the population such as more young women and those who are less educated.
Cellular Users
The Danish end-user community for cellular telephones was originally restricted, for economic and financial reasons, to business executives, doctors, lawyers, and other high-income groups. Later, it was expanded to include traveling salesmen and mobile service and maintenance crews such as electricians and plumbers. However, as the rates and unit costs rapidly decreased, the appeal of cellular telephones became apparent to the young generation and to middle-income families as they sought second telephones for their homes.
Current Stimulus for IT Growth
In the minds of most Danes, Denmark is something special because they feel it is characterized by some basic, deeply-rooted values. Their social consciousness is far-reaching and they care for their welfare society and have a local system of democracy. The distribution of incomes and wealth is not as polarized as in other democratic, market-based economies. Further, Denmark's access the educational system is influenced by the idea that all should have the chance for an education and personal development. As outlined in Information Society 2000, the philosophy stimulating the growth of the information infrastructure in Denmark is embedded in the following values:
Danish Health Network
In March 1996, 82% of the pharmacies, including branches, were connected to the health data network, MedCom, and could thus bill the National Health Insurance Service and receive Prescriptions from the doctors. Further, 57% of the hospitals, and well over one-third (36%) of the general practitioners of the country, or 42% of all general practitioners, were connectd to MedCom, as shown in figure 1. The number of users that are connected to the health network is shown in figure 2.
Return to Denmark's Table of Contents
