Australian ICT industry outlines 10 year plan

Stan Beer
Monday, 21 May 2007 10:47

Opinion and Analysis

The National ICT Industry Alliance (NICTIA), an umbrella organisation for 22 Australian ICT industry groups, has released a 10 year strategic plan to make the Australian ICT industry globally competitive. However, it appears long on rhetoric and short on substance.

Observers of past efforts of both governments and the private sector to develop a commercially viable Australian ICT sector have watched in vain over the past two decades as the annual ICT trade deficit has grown each year to the point where it is now more than $20 billion, the majority due to technology hardware imports.

Unlike the automotive industry, which has received strong local backing at both the Federal and State levels for the past 60 years, Australia has no computer or telecommunications hardware manufacturing industry of any consequence. The Australian automobile manufacturing industry has had its ups and downs but Australian made cars are still on our roads in respectable numbers and some are even exported. That's more than can be said for the technology in our offices.

NICTIA's Vision Statement sets out 12 parameters that member groups of NICTIA claim are crucial to Australia’s economic prosperity because of the role of ICT as an enabling technology for all sectors of the Australian economy. Not one of the parameters - aside from the fact that there is a 10 year plan - states anything new. We'll look at each statement in turn with a brief comment, after which I'll make some more detailed statements:

•    Vision Statement 1 - NATIONAL 10 YEAR STRATEGY

Australia to have a vibrant, innovative and globally competitive ICT industry that strategically plans for the future and underpins future productivity gains in all other sectors of the economy. Comment: It would be nice to have at least a rudimentary timeline with some milestones mapped out.

•    Vision Statement 2- NATIONAL MARKETING AND BRANDING

An Australian ICT sector to be well supported by the Australian, State and Territory Governments under a strong national Australian ICT brand, that presents a united front globally and is well known for its innovation and quality ICT services in key international markets. Comment: Nothing new.

•    Vision Statement 3 - INNOVATION

An Australian ICT industry that is a magnet for private investment to support R&D and commercialisation of technology through large, multi-disciplinary commercial R&D and product realisation centres. Comment: Vague and nothing new.

•    Vision Statement 4 - INNOVATION IN PROCUREMENT PRACTICES

Government as a model ICT purchaser of Australian innovation, recognising that as the largest single ICT customer in Australia, its procurement practices have a substantial impact on innovation in the ICT industry and provide reference sites to facilitate global market penetration. Comment: How many times have we heard this before?

•    Vision Statement 5 - SKILLS

An Australian ICT industry with a leading skill base by world standards with the Australian, State and Territory Governments, industry and education providers working collaboratively to improve skills foresighting, skills development and enhance enrolments in ICT courses. Comment: Nothing new.

•    Vision Statement 6 - INTERNATIONAL OPPORTUNITIES

Australian technology businesses to have the capacity and necessary government market intelligence and support to readily identify and respond to real international business opportunities and consistently convert these to positive business wins. Australia has a competitive investment environment, benchmarked against global standards, which seeks to promote Australia as an attractive destination for ICT investment. Comment: Nothing new.

•    Vision Statement 7 - COLLABORATION AND GLOBAL INTEGRATION

Australian ICT SMEs to be competing successfully on the world stage with the capability and necessary expertise available to access markets, attract venture capital and commercialise their technology solutions. Comment: Nothing new, ever heard of Austrade?

•    Vision Statement 8 - ENTREPRENEURSHIP

Our ICT entrepreneurs to possess the managerial, technical and marketing skills to develop their businesses, compete for growth capital and move forward on national and international business opportunities. Comment: Nothing new.

•    Vision statement 9 - ICT INFRASTRUCTURE

A high speed, affordable national broadband infrastructure and complementary e-security network that puts Australia amongst the leaders in the OECD in terms of its broadband capabilities. Be one of the first nations to gain the benefits from migrating to IPv6. Comment: Definitely nothing new
 

•    Vision Statement 10 - ICT LITERACY

Australia to become a highly ICT literate and truly technology proficient society that adopts, adapts and confidently embraces and exploits technology to its advantage and on an equitable basis. Comment: Australia already is highly ICT literate and one the biggest users of technology in the world.

•    Vision Statement 11 - ICT STANDARDS AND CONDUCT

Australia to increase its development and application of open technical and professional standards, at both a national and international level. Trustworthy technology to be increasingly attained by strongly encouraging professionalism and the ethical and principled conduct of ICT practitioners. Comment: Nothing new - the ACS has been lobbying to gain a franchise over this area for years.

•    Vision Statement 12 - REGULATORY POLICY

Australia’s regulatory policy to be proportionate to need and not to become an impediment to innovation and investment in ICT. Comment: Nothing new.

Over the past 20 years, I have had the good and sometimes sad fortune of meeting many innovative technology entrepreneurs in both the software and hardware areas. In the case of hardware, the area most responsible for Australia's horrific technology trade deficit, most of the companies I once knew no longer exist.

Australia, the country that built the world's fourth computer, is still waiting for its global ICT hardware giant - a company that will spawn a thousand or more technology satellite companies.

Vague 10 year vision statements reiterating the same motherhood sentiments we've heard over and over again for years won't build a serious ICT industry for Australia. The only thing that will is for the Federal Government to take the bull by the horns like it did back in 1944 when it asked manufacturers to submit proposals for the production of an Australian car. Unable to get GM in the US to finance the project, the US$6 million dollars required (a huge sum in those days) was provided by the Commonwealth Bank and the Bank of Adelaide with the backing of the Chifley-led Federal Government.

Thanks to sound financial management, good fortune or a bit of both, our Federal Government has a multi-billion dollar surplus. If it's serious about reducing our balance of trade deficit, the Government should invest a fair chunk of that surplus in getting a multinational player like Intel or AMD to set up semiconductor manufacturing facilities in one or more of our major capitals. If the Government is serious about Australia becoming more than a peripheral ICT player and a sales office for ICT multinationals, it needs to give serious tax incentives and create the financial climate for them to set up manufacturing and R&D centres here. The benefits to our local industry and local technology expertise would be enormous.

Australia is a first world country with a stable political climate, first rate services and infrastructure, and a great place to live. We're also well positioned to service the growing Asian market. If the financial climate was right, many technology multinationals would set up here in an instant. All it would take is a Government with vision and the political will to act. Sadly, since 1944, Australia hasn't had such a Government and, until one comes to power, we're not likely to see an ICT equivalent of the GM Holden, no matter how many 10 year plans spout forth from our technology industry associations.