Supporters: Sponsors: ICT Unit & HRDQ Unit, Chief Minister's Department 14-15th November 2001, Kuching, Sarawak, Malaysia Seminar Organizers; SDI, Stratfos & AESI Strategic Planning for an Information Economy Session: ICT Strategic Planning
Supporters: Sponsors:
ICT Unit & HRDQ Unit,Chief Minister's Department
14-15th November 2001, Kuching, Sarawak, MalaysiaSeminar Organizers; SDI, Stratfos & AESI
Strategic Planning for an Information Economy
Session:ICT Strategic Planning
Strategic Planning for an Information Economy
Purpose of Session
Ø Introduce Strategic Planning Methodology:
� Applicable at National, State and Agency levels
ØShare with Sarawak the experience of South Africa in developing anational ICT Sector Development Framework (SDF):
� Development goals focused, emphasizing ICT as an enabler
� Integrates a sector development model
� Links ICT supply and demand with HR and Innovation
� Provides strong foundation for developing an Information Economy
� Builds primarily on experiences in Canada
ØProvide a basis for starting strategic planning process in Sarawak
Strategic Planning for an Information Economy
Background on South Africa
Population (million) 41
Area (sq.km) 1,221,000
GDP ($million) 129,094
GDP growth 1.7%
GNP per Capita 3,210
telephone mainlines 107 per 1000 people
cost of 3 minutes local call US$ 0.07
personal computers 41.6 per 1000 people
internet hosts 34.02 per 10,000 people
Source: World Bank website & South African Reserve Bank
Strategic Planning for an Information Economy
Background on South Africa
ØOverall ICT Policy Leadership
� Office of the President
ØKey Departments involved in ICT Policy & Programs
� Trade and Industry
� Communications
� Arts, Culture, Science and Technology
� Public Service and Administration
ØOther Departments significantly involved in ICT Policy &Programs
� Public Enterprises
� Labour
� Education
Strategic Planning for an Information Economy
Current Situation in South Africa - ICT Sector
ØHighly fragmented ICT Sector with lack of national purpose
ØDynamic ICT Sector is ~US$10B growing at ~15% annually
ØTelcom accounts for ~50% of ICT Sector
ØUsers of Technology - not Innovators
ØDistribution Oriented
ØLarge Number of early adaptors - cellular and internet
ØTelecomms Liberalisation started - Pace will increase
ØEffective Control by Few Players
Strategic Planning for an Information Economy
Current Situation in South Africa - ICT Usage
Ø20th largest country market for ICT (0.6% of worldwide)
Ø14th largest Internet adopter (7.4% of households, 3.5M users)
ØHigh cellular usage (2.5M subscribers)
ØKey usage sectors
� Government (51%)
� Financial
� Retail
� Manufacturing
Baseline Studies: WITSA/ITU/WorldBank/IDC, 1998
Strategic Planning for an Information Economy
Current Situation in South Africa - ICT Human Resources
ØName your price ==> huge salaries
Ø< four years in service
Ø IT imported skills too expensive; short-term contracts
ØBusiness services subsector is fastest growing - 32% growthover five years
ØBanking sector - 50% growth 1998 - 2003
ØDemand for all IT professionals - 50% growth
ØNeed for experienced staff at senior level
ØCombination of business/ technical skills
ØOversupply in some areas e.g. MCSE
Strategic Planning for an Information Economy
Current Situation in South Africa - ICT Innovation
Ø ICT R&D ~0.8% of GDP v OECD ~2.5-3.0% of GDP
ØFocus on applied rather than basic research
ØEmphasis on adapt and adopt
� Cellular technology
� Internet
� Smartcards
Strategic Planning for an Information Economy
Background on the SAITIS Project
Ø1994 – First democratic government elected
� Apartheid dismantled
� Growth, Employment and Redistribution (GEAR) program initiated
Ø1995 – SAITIS project conceived in support of GEAR
� Advisory group created
� Project Design Document developed
ØCIDA funded project in amount of $3.5M over 3 years
ØLate 1999, PricewaterhouseCoopers contracted as CanadianExecuting Agency
� Project Steering Committee guided the project
� Results-based management approach used
Strategic Planning for an Information Economy
Key Challenges
ØBuilding widespread, long-term commitment
ØCreating a sense of national purpose
ØBridging the digital divide
ØOvercoming fragmentation
ØChanging the culture
ØMobilizing resources
Strategic Planning for an Information Economy
Other Challenges
ØExpanding the market for South African ICT globally
ØStimulating the local demand for ICT
ØCreating ICT & ICT-enabled jobs for disadvantaged individuals
ØDeveloping and retaining the base of skilled ICT workers
ØEngaging the education & training institutions in ICTdevelopment
ØEngaging the labour movement in ICT development
ØBuilding a culture of innovation
ØCreating the need for innovation
Strategic Planning for an Information Economy
Industry Strategy
Where are we now?(Situation Analysis) Where do we want to be?
(Goals & Objectives Framework)
How will we get there?(Strategy Development)
What are we going to do it with?(Tactical Plans)
Constraints
Internal Situation
External Factors Implementation Planning
• Vision• Goals & Objectives• Strategic Thrusts• Strategies• Risk Assessment• Economic Model
Issues
Strategy Development Methodology
Strategic Planning for an Information Economy
Strategy Development Process
Strategic Planning for an Information Economy
Key Strengths – ICT Sector
ØEtablished ICT Sector
� Small number of thriving ICT companies, some multi-national
� Several SOEs that are major ICT players (e.g. Telkom)
� Growing base of ICT SMEs
� Number of established foreign-owned MNEs
Strategic Planning for an Information Economy
Key Issues – ICT Sector
Ø ICT Sector capacity:
� Sector is fragmented and acting without sense of national purpose.
� How can widespread and long-term commitment to building sector capacity be achieved?
� How can existing ICT base be leveraged into substantial new growth?
� How can widespread development of the sector throughout the country be achieved, particularly toimprove rural and community participation in the sector?
Ø Sustaining environment for sector growth:
� How can policies, government support and the enabling infrastructure be improved?
� Need an open, competitive telecommunications environment?
Ø Global Competitiveness:
� How can South Africa increase its penetration of global ICT markets (e.g. branding South Africa, beingproactive in global markets, and gaining access to reliable and affordable information on market trendsand opportunities)?
Ø How can the sector contribute to bridging the digital divide?
Strategic Planning for an Information Economy
Key Opportunities – ICT Sector
ØSupport and encourage growth of large indigenous companies
ØAccelerate growth of base of ICT SMEs
ØEncourage integral participation of SOEs and MNEs
ØFocus on developing nascent ICT clusters
ØLeverage South Africa’s local and regional market strengths
Strategic Planning for an Information Economy
Key Strengths – ICT Usage
ØForerunner in development of an information society strategy
ØBenefits of an information society strategy are well understood by decision-makers
ØDemanding national market for ICT
ØA well-developed core infrastructure linking the major centres
ØWidespread awareness and adoption of the Internet and wirelesstechnologies
ØLeading user of smart cards
ØAwareness of the importance of e-commerce
ØStrong Financial Services sector that is a significant adopter of advancedICT applications
ØStrengths in content creation
Strategic Planning for an Information Economy
Key Issues – ICT Usage
Ø Local Market Development:
� How to understand the local market for ICT?
� How to create greater awareness of the potential of ICT?
� How to assist in moving disadvantaged areas to a knowledge economy?
� The need to identify niche markets that can be exploited.
� The need to address the impacts of introducing ICT into other industries.
Ø Applications Development:
� The need to identify applications development opportunities for Sarawak that would meet localrequirements.
� How to achieve excellence in the development of ICT applications?
� How to take into account the future drivers for commercial and social responsibility?
Ø Information Infrastructure Development:
� How to achieve rapid and widespread deployment of ICT infrastructure and technologies throughoutthe state?
Ø Achieving Ubiquity:
� How to generate widespread commitment to ICT-enabled community socio-economic development.
� How to achieve equitable access and affordability of ICT applications.
� How to address the needs of disadvantaged groups.
Strategic Planning for an Information Economy
Key Opportunities – ICT Usage
ØAccelerate infrastructure development to stimulate demand
ØMove aggressively to open, competitive, telecommunications environment
ØFocus on accelerating adoption of key ICTs
ØBuild on existing e-commerce momentum
ØEncourage Financial Services sector to take leadership role
ØExploit reputation as leader in community telecentres
Strategic Planning for an Information Economy
Key Strengths – Human Resources
ØGood core education and training system and infrastructure upon which tobuild (e.g. schools, colleges, universities, private training facilities)
ØThe policy environment and the will to extend this broadly throughout thecountry
Strategic Planning for an Information Economy
Key Issues – Human Resources
Ø Developing the Future Skills Base:
� Development of skills that are on a par with or exceed world standards.
� Improvement to existing educational and training capabilities.
� Preparing the population to participate broadly in the information society and to be productivemembers of the ICT Sector.
� What measures must South Africa adopt to ensure the availability of skilled workers to fill future ICTSector and ICT-enabled jobs?
� What are the skill sets that will be needed?
� How can the lack of ICT literacy amongst much of the population be addressed?
� How can the delivery of ICT education and training be improved?
� How can stakeholders be encouraged to co-operate to address the skills gap in ICT?
Ø Solving Employment/Workforce Issues:
� How to be responsive to the loss of jobs in the wider society resulting from the broad introduction ofICT?
� What human resources development measures must be undertaken to allow for a constructivetransition of employees retrenched as a result of ICT adoption?
� Recruitment of specialist international staff.
� Structural problems that contribute to low employment growth.
� Measures to counter the impact of HIV/AIDS on the ICT workforce.
Strategic Planning for an Information Economy
Key Issues – Human Resources (continued)
ØCountering the Brain Drain:
� How to counter the outflow of skilled ICT workers from South Africa?
� Need a broad understanding of the factors relating to the brain drain.
Strategic Planning for an Information Economy
Key Opportunities – Human Resources
Ø Immediate initiatives to complement long-term commitment
ØBuild on existing education and training system for ICT
ØMore closely link outputs of education and training institutions to ICT needs
ØEngage the labour movement more proactively
Strategic Planning for an Information Economy
Key Strengths - Innovation
ØStrong base on which to build
ØRecognition of importance of ICT innovation, particularly applications
ØForesight project set out longer term vision
ØCSIR positioned to take lead role
ØPockets of R&D in universities and research institutions
Strategic Planning for an Information Economy
Key Issues – Innovation
Ø Establishing an ICT Innovation Culture:
� How to engender a broad understanding of the innovation process?
� How to obtain commitment from and establish linkages among key stakeholders (e.g. government andprivate sector)?
� How to encourage universities and colleges to contribute fully to innovation in ICT?
� How to employ innovation to leapfrog South Africa into a more developed situation?
Ø Stimulating ICT Research and Development:
� How to strengthen the commitment to ICT R&D?
Ø Facilitating ICT Technology Transfer:
� How to encourage greater investment by the private sector and greater commitment by government?
Ø Protecting Intellectual Property:
� How to protect intellectual property rights to a far greater extent than previously?
� Need to government-to-government involvement.
� How to increase awareness of intellectual property issues?
Strategic Planning for an Information Economy
Key Opportunities - Innovation
ØBuild on Foresight project
ØBuild on strengths of CSIR
Strategic Planning for an Information Economy
ICT Sector Development Framework
Strategic Planning for an Information Economy
ICT Sector Development
Strategic Planning for an Information Economy
ICT Sector Development - Objectives
Strategic Planning for an Information Economy
ICT Usage Stimulation
Strategic Planning for an Information Economy
Objectives for Stimulating ICT Usage
Objective Description Figure 5.1
2.1
2.2
2.3
2.4
Stimulate ICT Adoption ThroughPartnerships
Make a Modern InformationInfrastructure Available to all SouthAfricans
Stimulate ICT Adoption ThroughGovernment as a Model User
Bring Disadvantaged Communitiesinto the Main Stream of ICTDevelopment and Use
Communityand the Non-ICT Sectors
Non-ICTSector
(government)
Communityand the Non-ICT Sectors
Community(disadvantaged)
ICT Usage Stimulation - Objectives
Strategic Planning for an Information Economy
Human Resources Development
Strategic Planning for an Information Economy
Human Resources Development - Objectives
Strategic Planning for an Information Economy
Public PolicyPublic Policy
Basic
R&
D
Pre
-Co
mp
eti
tive R
&D
Ap
plied
R&
D
Technology Transfer
Linkages
Within South AfricaInternational InternationalC
om
merc
ializa
tio
n
Innovation View
ICT Innovation
Strategic Planning for an Information Economy
ICT Innovation - Objectives
Strategic Planning for an Information Economy
Implementation Approach
Ø Initiative driven
ØLeverage existing initiatives
ØMove ahead while organizational issues addressed
ØThree priorities of initiatives:
� Immediate initiatives (well-developed, key initiatives)
� Short-term initiatives (require further development)
� Other initiatives (process to identify & develop)
Strategic Planning for an Information Economy
Implementation Approach - Initiatives
Ø ICT Sector Development
� Establish Governance and Organisational Approach (Immediate).
� Conduct an Impact Analysis of Current ICT Initiatives (Immediate).
� Accelerate ICT Cluster Development (Immediate).
� Undertake Satellite Cluster Pilot.
� Support Information Exchange Within the ICT Sector.
� Review of Policies Affecting the ICT Sector.
� Develop an ICT Sector Portal (Immediate).
Ø ICT Usage Stimulation
� Conduct an ICT Awareness Program.
� Conduct a Cross-Sectoral Pilot.
� Conduct a Smart Community Pilot.
� Participate in Planning a National Information Infrastructure Initiative.
� Establish Cooperative Mechanisms Between the ICT Sector and Government.
Strategic Planning for an Information Economy
Implementation Approach – Initiatives (continued)
ØHuman Resources Development
� Improve the Collection of ICT Labour Market Statistics (Immediate).
� Re-skill Retrenched Workers.
� Establish an ICT Youth Internship Program (Immediate).
� Establish an ICT Co-operative Work Experience/Education Program.
� Black ICT SMME Skills Development (Immediate).
� Change Management Training for Disadvantaged Individuals.
Ø ICT Innovation
� Establish ICT Innovation Awards.
� Establish ICT Innovation Listening Post.
� Establish an ICT Innovation Fund.
� Develop and Implement a Network of Centres of Excellence Program in ICTInnovation.
Ø ICT Sector & Usage Measurement
� Conduct an ICT Measurement Pilot.
Strategic Planning for an Information Economy
The ICT Sector Partnership
ØSustaining Action through Leadership and Inclusivity
ØLeadership Implies:
� Co-ordinated voices (government, industry, labour & Academia)
� Consistent messages
� Coherent actions
� Representative bodies (mandate & authority)
� Leadership authority endorsed & communicated
Strategic Planning for an Information Economy
The ICT Sector Partnership (Continued)
ØSustaining Action through Leadership and Inclusivity
ØSustaining Action Implies an implementation entity that has:
� Clear mandate for ICT sector development support
� Authority and legal standing (procurement)
� Capacity to manage multiple, large projects
� Procurement flexibility for dynamic industry environment
� Can handle multiple funding sources
� Fiscally accountable
� Clear links to inclusive leadership
Strategic Planning for an Information Economy
The ICT Sector Partnership (Continued)
ØSustaining Action through Leadership and Inclusivity
Ø Inclusivity Implies:
� Structure to involve stakeholders
� Process for stakeholder input
� Process for decision making
� Dispute resolution procedures and processes
� Streamlined decision making process
� Established membership criteria
Strategic Planning for an Information Economy
Lessons Learned
ØThe process of building consensus is critical
� Tackle less contentious issues first
� Clear definition of ICT Sector
� Distinction between strategy (broad) and implementation (focused)
� Establish criteria, process & timeframe for difficult issues
ØSupport from the top is essential in securing inter-departmentalcooperation
ØSecuring high-level industry involvement is key to addressingfragmentation issue
ØSustainability and equity must be built in throughout
ØBroad stakeholder consensus on resulting strategy is invaluable
Strategic Planning for an Information Economy
Lessons Learned (continued)
ØLinking supply and demand is essential
� Local ICT market not strong enough, but large potential
� Developing local market consistent with GEAR priorities
� Existing infrastructure forms a good base
� Need to develop local market as a basis for export
ØHuman Resources integration critical
� Bring disadvantaged individuals into ICT mainstream
� Large untapped resource pool
� Alleviate poverty, combat social unrest
ØDeveloping broad innovation culture important to sustainability
� Understanding opportunities for future
� Focusing resources
Strategic Planning for an Information Economy
Questions?