"A grand vision that can benefit several generations of Australians and help the astute political leader win consecutive elections by capturing the imagination of the nation"
February 2013 - By Dinesh De Silva
This was sent to the two major political parties in the 2013 election.
The
background
Australian technology
professionals are known around the world for their creativity and high
standards of professionalism. Our ICT businesses have been known for innovation
and maturity in service delivery. However, unlike our nations closest allies,
the US, we are not known for having a booming ICT industry, or as an incubator
for some of the finest innovations the world has seen. We have simply resigned
ourselves to being consumers of technologies built in the US and other
countries.
A clear case in point
is Stephen Conroy’s 2020 Vision for ICT where the emphasis is on being world
class adopters and consumers of technology. Clearly lacking is a vision to help build Australian
technology firms and talent to create enterprises that
will lead the world in the digital economy, taking advantage of the nation’s significant brand equity and
creative talent.
As a nation we
continue to depend on a mining lead economy. How long can we do so? Our ICT
Industry, if structured correctly, can give our nation another significant source
of revenue. It can be a double digit contributor to the national GDP.
Australian's are amongst the greatest users of technology in the world
and we now need to convert the use into creation. Our country is
blessed with an abundant source of creative
talent, world class engineering schools, some of the best software developers
in the world and a highly respected “Australian” brand globally. Where are we lacking?
Why are we not creating greater value and impact globally as we do in other fields of achievement at an individual or national level? Hugh Jackman, Nicole Kidman, Adam Scott, Elle Macpherson, Mark Webber are just a few Aussies who have conquered the world in their fields. Our firms, BHP, Rio, Fortescue, Leightons, Macquarie Bank, Billabong are all well known global brands. Where is the equivalent in the field of ICT? Google, Facebook, Amazon, Apple, none have Australian origins. This is despite our economy, been one of the best performing economies for decades and our currency outperforming the best. There has to be a reason.
This paper outlines the problem and more importantly proposes a simple solution.
Why are we not creating greater value and impact globally as we do in other fields of achievement at an individual or national level? Hugh Jackman, Nicole Kidman, Adam Scott, Elle Macpherson, Mark Webber are just a few Aussies who have conquered the world in their fields. Our firms, BHP, Rio, Fortescue, Leightons, Macquarie Bank, Billabong are all well known global brands. Where is the equivalent in the field of ICT? Google, Facebook, Amazon, Apple, none have Australian origins. This is despite our economy, been one of the best performing economies for decades and our currency outperforming the best. There has to be a reason.
This paper outlines the problem and more importantly proposes a simple solution.
The problem
We have under performed due to two significant
reasons.
1) Lack of political vision and government
policy to build the ICT industry as a major vehicle of national revenue with a
focus on double digit contribution to the nation’s GDP.
2) Business models of Australian companies that
are constrained by their dependency on Australian resources.
This document focuses on Political
Leadership and Government Policy.
Consistent governments
have failed in the area of policy to provide a holistic environment and the
required support structure for individuals, small and large business to focus
on software and ICT innovation. A host of sporadic, “knee-jerk” initiatives
rolled out on their own by consecutive governments, with the hope of boosting
innovation has not helped.
In addition to the government,
our Industry must take its share of blame. The composition of the board of AIIA
- the country’s foremost industry association for ICT - is a case in point. Its
board is predominantly built around local market CEOs of global ICT powerhouses
and Australian companies that are serving the national market with products and
services mostly developed overseas. With such a structure how can Australia
build its own global power base in ICT with vision to take on world markets? Over
the years we have evolved as such due to our nations inwardly focused nature. Many
of our firms and their inventions in the hundreds are either bought out and some
adopted or stolen before maturity by larger international players. For example,
Google and others have bought several Australian inventions and Microsoft was
successfully sued by Australian Inventor Ric Richadson for $300M+ for using his
inventions. These are the luckier examples, but how many others die at
inception with no funding or lack of support.
What other nations do
The US is the best example for having a
climate of innovation. Silicon Valley is perhaps the most successful
"Industrial Cluster". As a result, Silicon Valley has created
TRILLIONS of dollars in value and wealth to the American people. It has spawned hundreds of global super
powers from mere tech start-ups! The likes of Apple, Yahoo, Google, Cisco,
Adobe, eBay, Intel, HP, Sun, and the list continues...
Silicon Valley is not the only ICT cluster in the US, but it is the most successful. There are many others that help create the much needed ecosystem for global powerhouses such as Amazon and Microsoft among others.
Silicon Valley is not the only ICT cluster in the US, but it is the most successful. There are many others that help create the much needed ecosystem for global powerhouses such as Amazon and Microsoft among others.
Even nations like Ireland, India &
Costa Rica have set up IT clusters and industrial frameworks to ride on the
growth of Information Technology. Indian Companies such as Infosys, TATA,
WIPRO and hundreds of others have benefited by concerted national
focus on IT when the government of India put in place an ICT policy which led
to them becoming the outsourcing nation of the world. Today, they are global IT
Conglomerates with revenues in billions of dollars. Smaller and mid-sized Irish
and Indian companies are winning significant business around the world. India
today is no more the "cheap” source for software developers, but have
some of the best software houses in the world. Sadly, Australia cannot boast of
even one company generating a billion dollar revenue as a global ICT business.
Irish ICT and software companies enjoy tremendous government support. On the invitation of the Irish Government, I once addressed around 70 leaders of the Irish Software industry on the "Australian ICT Market Place" in Ireland. A few of us were invited to Ireland as guests to provide expert opinion and local knowledge on entry into different markets around the world! These initiatives give invaluable insights to entrepreneurs taking on the world. I was impressed how the Irish government agencies were set up to assist in the growth of these technology companies, from start-up capital, to office space, to management training to international marketing.
Irish ICT and software companies enjoy tremendous government support. On the invitation of the Irish Government, I once addressed around 70 leaders of the Irish Software industry on the "Australian ICT Market Place" in Ireland. A few of us were invited to Ireland as guests to provide expert opinion and local knowledge on entry into different markets around the world! These initiatives give invaluable insights to entrepreneurs taking on the world. I was impressed how the Irish government agencies were set up to assist in the growth of these technology companies, from start-up capital, to office space, to management training to international marketing.
What’s required
Firstly we need a grand vision that can capture the imagination of our nation - a vision and a political willingness that can win not one but consecutive elections to a party that can articulate and act upon the vision.
People of Australia
love a grand vision. Whether we like it or not, Labor’s vision of the NBN
effectively helped them win not one but two elections. It certainly tilted the
balance for Julia Gillard in Labor’s second term and gave Kevin Rudd a much
needed boost in Labor’s first term.To implement this vision, we must focus on
the big picture and get the best in the world to help the government to set the
nation up for success. The type of global experts who have done this beforeand
have the profile to get the year of a nations leaders. It must be done as a holistic exercise similar
to setting up the NBN but implemented much more professionally to tighter
measures by these global experts who have experiencing building industries and
global brands.
In this paper I will
not focus on transactional policities like employee share ownership schemes, or
importance of teaching coding in schools. The best in the world of advising our
nation’s leaders and policy makers on how to implement the structures and
policies of a national vision are:
1) Prof. Michael
Porter of Harvard Business School and author of Competitive Advantage of
Nations, who works with multiple governments in helping set up Industrial
Clusters and national frameworks for competiveness of industries.
2) Blue Ocean Strategy
Institute (BOSI), lead by Prof. Chan Kim and Prof. Renee Mouborgne of INSEAD Business
School who have helped South Korea over many years to build world beating
brands and businesses in Samsung, Hyundai, Kia and LG, to name a few. They now
work with the leaders of Singapore and Malaysia. Vast strides Singapore has
made recently is case in point.
If we can set up a
BOSI in Australia with a focus of achieving our grand vision working with Prof
Kim and team, they will help create the structure and much needed road map along
with a time table and action plan for what our nation must do.
The Malaysian BOSI which
I have visited is staffed by about 30 of the best PhDs in each of the key
disciplines needed for that nation’s vision. I believe Australia can
significantly benefit working with the likes of Michael Porter and his team or
the BOSI team headed by Professor Kim. For the purpose of the exercise I will
refer in this paper to this initiative as building a Australian Strategy
Institute for ICT (AUSSII).
It will take effort to
woo the above mentioned experts as both Prof Michael Porter and BOSI are
extremely selective on the assignments they undertake. I cannot however see why
a nation like ours would not be able to attract them if we are deeply committed
to the cause.
Immediate Action
1)
Form an Advisory Board with selected Australian business
& economic luminaries to build a 2030 technology vision that has Australia
as one of the major creators of technology.
2)
Ensure the advisory board has the required access
to political leaders and officials.
3)
Agreement to divert the required funding, e.g. 10%
of NBN funding to creation of an ICT lead economy.
4)
Select well respected organisations, as mentioned
above, to advise the nation. They should be accountable to the advisory board
in the agreed upon timeframe.
Conclusion
The vision articulated
above will benefit several generations of Australians to come. It is also a
grand vision that can be built upon the existing investments already committed
on the NBN and help win consecutive elections for a visionary political leader.
The investment in a AUSSII
will be minute considering the investments we are making on NBN, yet the benefits
will be far greater.
An AUSSII lead
strategy can help multiple industries as a spinoff. For example, while we are
going to fund the automotive industry, we could focus on a program of
technology creation to help Australia build the most technically advanced motor
vehicles in the world or to strategically identify our niche in the global
automotive industry.
With political
willingness and strategic action, we can build a multi hundred billion dollar,
if not a trillion dollar ICT industry around the investments made on the NBN
and develop Australian invented technologies to take to the rest of the world.
Dinesh is CEO NexGroup & Co-Founder SalesNgin.Com. He lives in Sydney with his three beautiful kids and his partner in business and life Saadia. Dinesh has provided strategic direction and leadership to from government to large & medium technology businesses for over 15 years . He is a specialist in business growth, an accomplished speaker & provides Media opinion on his latest pet topic "helping small and medium business take on the online world".
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