session: ict strategic planning - stratfos consulting · strategic planning for an information...

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


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


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


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


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


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


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


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


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


Key Challenges

ØBuilding widespread, long-term commitment

ØCreating a sense of national purpose

ØBridging the digital divide

ØOvercoming fragmentation

ØChanging the culture

ØMobilizing resources


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


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


Strategy Development Process


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


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?


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


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


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.


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


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


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.


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.


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


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


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?


Key Opportunities - Innovation

ØBuild on Foresight project

ØBuild on strengths of CSIR


ICT Sector Development Framework


ICT Sector Development


ICT Sector Development - Objectives


ICT Usage Stimulation


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


Human Resources Development


Human Resources Development - Objectives


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


ICT Innovation - Objectives


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)


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.


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.


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


The ICT Sector Partnership (Continued)


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


The ICT Sector Partnership (Continued)


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


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


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


Questions?

session: ict strategic planning - stratfos consulting · strategic planning for an information...

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