"We'll all be rooned," said Hanrahan
In accents most forlorn
Online and twittering round the globe
One frosty Sunday morn.
(apologies to PJ Hartigan)
analysis There is currently a great deal of gloom and doom about the
state of the Australian ICT sector.
Some of it is linked, validly,
to the global financial crisis and the traditional place of ICT
spending in business priorities; that is, one of the first things to be
cut. But there is also a view that governments in Australia do not
understand the sector and fail to give any strategic policy
leadership. For good measure, some think the industry itself is
inwards looking, too conservative and poorly led.
Certainly there are plenty of negative signs if you care to look
for them: The tough economic climate, apparently falling
disproportionately on the ICT sector, is a legitimate reason for
firms to be a little distracted; There is fear and loathing
(perhaps unwarranted but still there) about the impact of the
Gershon Report on how Australian Government agencies manage ICT
projects and budgets; and opportunities identified for ICT in the
Review of the National Innovation System have vanished into "consideration in the budget context".
Then too, the Government's proposed National Broadband Network does not
appear to offer much for high-end users, for example researchers, audiovisual
producers, e-health specialists; and a government discussion paper on future
directions for the digital economy excluded key issues and offered
little evidence of new thinking; Australian Government administrative arrangements in this area
are fragmented and uncoordinated and opportunities continue to be
missed (for example, the 2020 Summit agenda was watered down to exclude
information economy issues and potential invitees; the 2008-09
Budget and the 2008 stimulus package had no ICT initiatives; and CeBIT
2009 in Hannover was almost devoid of an Australian presence.
What
are the real issues?
Before we get too excited about "growing a
local industry" and "we need our very own Minister" we should
consider some of the defining characteristics of the ICT sector in
Australia in 2009. The key ones are as follows: At one level ICT is a
commodity — Broadband is the most obvious example, but server
capacity and mobile connectivity are also valid examples, as is
Moore's Law.
Prices are driven down, but services become both
essential and taken for granted. At another level ICT is an
enabling platform — innovation through the collaborative use of
information across all sectors, not just research, is a key element
of the recent review of the national innovation system. ICT and
associated user skills are key.
In addition, ICT is strongly focused on the
government as a customer — the upside of this is government's
demanding nature for continually solving new problems, driving
innovation. The downside is an emphasis on marketing and sales to
the exclusion of most other issues. There are success stories to
celebrate — one is National ICT Australia (NICTA), which is doing world-class ICT research with excellent business
linkages. Another is the Australian games sector, which is a
creative and export success.
Furthermore, international linkages are critical — all industries may be global, but ICT is even more so, in terms
both of institutions (policy, standards-setting and regulatory) and
exposure to the proverbial world's best practice.
10 ideas for moving ahead
Here are some ideas for taking the ICT sector ahead,
and which can be done without a summit, a Minister for ICT or the
hiring of any new government employees. Some of them will require government action, some are a matter for industry
and the research community. They are, in no particular order:
- Establish a National Information Strategy as recommended by the
Review of the National Innovation System: Making government
information and publicly funded research data and collections freely available and accessible as part of a global public commons
can provide new resources for use in innovative ways. The OECD has shown this in significant research. Rather than major new
expenditure, it requires changes in attitudes from government; for example in
shifting from traditional copyright to the more flexible Creative
Commons.
- Extend Australian Government funding of NICTA beyond
2011 and make it responsible to a single minister: A review of
NICTA has recently been finalised. If core funding is not extended, NICTA will not be able to continue, which would be a perverse
outcome given its successes in moving beyond the traditional
university research model. There is no good reason why NICTA should
have to answer to both the Minister for Innovation, Industry,
Science and Research and the Minister for Broadband, Communications
and the Digital Economy.
- Rationalise ICT representative bodies: These include the Australian Information Industry Association, the
Australian Industry Group, the Australian Computer Society, the
Australian Interactive Media Industry Association, the Australian
Telecommunications Users Group, the Internet Society (Australia)
and the Communications Alliance. An attempt to work together
through a National ICT Industry Alliance seems to have disappeared
so some mergers appear an obvious alternative, especially in the
current economic climate.
- Commit to an e-health strategy and
follow it through: This has been an area of significant failure in
national standards, interoperability, acceptance by health
professionals and Commonwealth-State cooperation. The potential
gains in terms of better services and lower costs make it worth
pursuing. A strategy document has been agreed by commonwealth and
state Ministers but there does not appear to be any implementation
schedule.
- Develop a new framework for ICT standards: Standards are effectively set internationally —
the main Australian connection is a private body, Standards
Australia10 — with little government involvement but can have far
reaching consequences eg is a Microsoft-sponsored standard "open"
and capable of continuous development. Greater transparency and
accountability would be good in itself and may also encourage more
involvement by qualified Australians.
- Open up international engagement: Bodies such as the OECD, APEC and ITU have provision
for private sector involvement, but Australian business is
chronically under-represented, leaving the work to government
officials who tend to be secretive about proceedings. More open
cooperation between government and business would ensure a more
productive Australian place at the table when issues such as
Internet standards, innovation through ICT and regulatory
cooperation are up for decision.
- Encourage marketing of Australian capabilities in ICT: Austrade, which seems to have
scaled back its work with the ICT sector, focuses on products
and firms already in the market. This overlooks Australia's
problem-solving capabilities in ICT as a very saleable commodity
which differentiates us from many competitors. This should be a
service export rather than the inwards investment focus currently
given to it by Austrade.
- Revitalise the ICT Research Roundtable: This little-known
group facilitates cooperation among publicly funded ICT research
bodies including NICTA, CSIRO, DSTO and universities. Some funding
assistance and greater private sector involvement would bring real
results and help bridge the gap between business and research.
- Establish a small business innovation contracting program as
recommended by the Review of the National Innovation System: Based
on a long-standing US Government program, this would see Commonwealth
and State agencies allocating a proportion of their R&D funding
for small businesses to develop innovative solutions for
government. It would provide a cost-effective way for small
Australian ICT firms to participate in the government market from
which they are effectively excluded at present.
- Ensure that new
government ICT arrangements look at the bigger picture: The newly
established Ministerial Committee on ICT and Secretaries ICT
Governance Board should not confine themselves to management of
government ICT projects (important as that is) but also address
broader issues such as ... well, the previous nine suggestions.
Better coordination and cooperation between Ministers and between
agencies is only achievable from the top down — it is how
government works.
Tom Dale was a senior executive with the Department of
Broadband, Communications and the Digital Economy until May 2008. He has 34 years' experience in the Australian Public Service and 12 years in the Senior Executive Service. He is a partner in BartonDale Partners. This article first appeared on the company's site and is published on ZDNet.com.au with his permission.
