Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Tuesday, September 15, 2015

Now it gets interesting - Australia has its first digitally literate Prime Minister

Rudd & Gillard could work the Twitters.

Abbott understood the need to engage digitally, if not the tech, the value or the full impact (and mistakenly thought one of his Ministers had invented the Internet).

Even Howard got onboard the digital express with a few YouTube videos.

However Australia has never before in its history had a digitally literate Prime Minister of the likes of Malcolm Turnbull.

This could mean nothing, or it could mean enormous change if the Australian Government is told to lift its game on digital engagement and treat technology as an integral part of designing and implementing government business rather than as a service to be called on when needed.

Turnbull has already laid down a positioning statement in this area, stating in his inaugural media announcement as PM that "We need an open government, an open government that recognises that there is an enormous sum of wisdom both within our colleagues in this building and, of course, further afield."

We'll see quite quickly which is true by Turnbull's approach to several of the key planks of openness and digital transformation.

Key steps would include endorsing and progressing Australia's membership of the Open Government Partnership, something agreed to by the Gillard government but was placed on the perpetual back burner by Abbott as he focused on closing, rather than opening up, government.

I'd also expect to see a rethink of the government's position on the Office of the Information Commissioner - an agency the Abbott government failed to legislate to remove but has been killing by degrees by cutting funding and refusing to replace Commissioners.

Another sign of change would be an elevation of the role of the Digital Transformation Office, making more of its approaches mandatory and providing more teeth to the agency when dealing with big and slow moving Departments more interested in the status quo. 

This could include shifting  the DTO back to the Prime Minister's department, but with a direct reporting line to Turnbull that minimizes the obfuscation prevalent within that department at senior levels. 

Other areas that could use attention include the open data space, which is run on a shoestring by Finance and could greatly magnify its impact with additional resourcing and mandates, and, of course, the NBN - Turnbull's former responsibility as Communications Minister. 

A shift back to a FTTH approach, delivered more cost-effectively than the previous Labor model, would provide Australia with the infrastructure it needs for the 21st century and cement Turnbull as a visionary with Australia's long-term future at heart.

There's also many things that could be done at a micro-level within agencies to shift the reliance on corporate IT suppliers, 1990s systems and large, virtually undeliverable technology projects - many of which could be led by a revitalised AGIMO in association with the DTO.

Of course Turnbull may have other fish to fry, he has quite a lot to do to get the Liberals back to an electoral-ready position within 12 months, and if not re-elected much of the program above could find itself on the scrap heap of a new government that wants to do things differently.

However I am hopeful that we'll see some true digital leadership from Turnbull whilst he is Prime Minister and potentially some real shifts in how government is delivered in Australia, to the benefit of all Australians now and in the future.





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Thursday, June 19, 2014

The economic value of open data to Australia

This morning I attended the breakfast launch of the Open for Business: How Open Data Can Help Achieve the G20 Growth Target report.

The report was written by Nicholas Gruen (former chair of the Gov 2.0 Taskforce) and his team from Lateral Economics, with support from Victoria University and commissioned by the Omidyar Network (the not-for-profit organisation established by eBay's founder).

It makes a compelling economic case for open data, estimating aggregate direct and indirect value for Australia was in excess of $15 billion per year. This was based on estimating the economic value of open data just across the G20's seven priority areas, which I've provided below as a table.

G20 priority area
open data value 
per annum to Australia
Anti-corruption
$1.5 billion
Employment
$3.4 billion
Energy
$1.7 billion
Fiscal and Monetary policy
$3.6 billion
Infrastructure
$3.6 billion
Trade
$1.6 billion

Relative progress on open government data areas
Source: http://theodi.github.io/open-data-barometer-viz
The report suggested that Australia was still doing very well in the open data space, ranked 3rd amongst G20 nations (7th or 8th overall globally) - but that there was still much room for improvement and learning from other countries.

During the presentation Martin Tisne from the Omidyar Network said that Mexico and India had demonstrated leadership in opening up education data, while South Africa had taken great steps with open budgetary data - making the point that different nations have excelled in different aspects of openness, but few had demonstrated consistent strength across all aspects of open data.

The report included a great deal of detail on different areas in which governments could achieve economic value through open data - and also highlighted that the cost of realising these benefits could be up to a third of the value received, giving a clear signal of the need for government to invest in this area, not simply allow it to thrive or die on its own with no support.

Both Nicholas Gruen and Tony Shepherd, head of the Commission of Audit, highlighted the need for senior Ministerial leadership, and Gruen noted that no Australian Prime Minister had ever been a passionate supporter of open data, to Australia's detriment where the US and UK had significant political as well as public service leadership for openness.

The presentation also highlighted some of the current pitfalls for entrepreneurs seeking to take advantage of open data while there was no consistent commitment to its release.

Gruen illustrated this point by discussing APSjobs.info, a site created at a past GovHack, that mashes up data on public servant movements from APSJobs.gov.au. He said there was clear added value realised via APSJobs.info, which could be a useful reference tool for recruiters and agencies seeking to identify the best talent.

The report states that:
APSJobs.info's business model was predicated on its development of successful technical methods to 'scrape' the data from pseudo-print PDFs. However frequent changes to the formatting and layout of these files meant continuous re-development of the PDF conversion software to continue to access and add value to the data. The skills required to perform such work (data-mining and text-analysis) are in great demand, and the cost of frequently using such resources exceeded the benefits to Pivotal Analytics.
APSJobs.Info is now defunct - a casualty of government inconsistency.

The Open for Business: How Open Data Can Help Achieve the G20 Growth Target report is highly material in establishing the value of open data to governments and the steps they need to take to realise the economic value that could result from greater release of reusable data.

Hopefully Australian governments will continue to build their commitments to open data and we'll see some of this value filtering back into our economic.


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Wednesday, December 11, 2013

How do we avoid the chicken & egg of open data (and the failure of the opendata movement)?

Open data drives economic value - there's been no dispute on this score after a range of reports have indicated the massive value that open data can unlock for an economy.

Cap Gemini estimates that open data was worth 32 billion euros in 2010 to Europe, growing at 7% per year, while McKinsey estimates the global value at US$3 trillion per year and the UK estimated earlier this year (PDF) that the value of releasing their geospatial data alone as open data would be 13 million pounds per year by 2016.

There's been a range of similar reports across the world (as aggregated by the Open Data Institute) - all of which point to a similar conclusion.

However realising this economic value, in productivity, efficiencies and direct revenue, is dependent on governments doing one thing that they've so far failed to do - releasing open data in a planned, consistent and managed way.

Thus far most governments have followed a haphazard route to open data, releasing the 'low hanging fruit' first (data already in releasable form, with few privacy concerns and considered 'low risk' as it doesn't call into question government decisions), and then progressively releasing esoteric and almost random data sets at inconsistent intervals.

Many governments have clear processes for individuals and organisations to request the release of specific data sets - however a clear process which doesn't support the goal is of little value.

These requests have little influence on agency decisions on releasing data and I have yet to see any government mandate that these requests need to be officially considered and actioned or responded to within a set timeframe.

Without any real weight or structure, processes for requesting data sets can't be relied on by people seeking to build a business on open data.

Data consistency is an even bigger issue. In nations like Australia the federal and state governments each have their own open data sites. However there's no agreed national strategy on data release. Every jurisdiction releases different sets of data, with few attempts to aggregate state-level data into national datasets covering all jurisdictions.

Even when similar data sets are released by different states this is complicated at the back-end by different laws, different collection techniques and frequencies and differences in analysis and measurement approaches - not to mention differences in formats and naming conventions. This can make it costly, if not impossible, for businesses or individuals to aggregate data from different states and use it for a national goal.

On top of this, many agencies still resist calls to release data. Some due to a closed culture or a hope that 'open data' is a passing fad, others due to the costs of reviewing and releasing data (without any ability to offset them in fees or additional funding) and some due to concerns around data quality, political impact or reputational damage to the agencies themselves.

My fear is that we're reaching a chicken and egg impasse - agencies and governments are reluctant to do the work and spend the money required to develop consistent data release approaches and mandates without seeing some the economic value from open data realised. Meanwhile individuals and organisations are reluctant to build business models on a resource that is not reliably available or of a consistent quality.

There's no commercial model for open data if governments can turn off specific data, or entire open data initiatives on at a whim (as we saw data.gov shut down recently in the US Government shutdown). Businesses need to be able to count on regular publication of the data they use to build and inform their enterprise.

There's also a lot less value for governments in releasing their data if companies are reluctant to use it (due to a concern over the above situation).

So how should countries avoid the chicken and egg issue in open data?

There's two approaches that I have considered that are likely to work, if used in tandem.

Firstly, governments must mandate open data release and take appropriate steps to develop ongoing data release approaches, which clearly and publicly state what data will be released, at what frequency and quality level. This should include a data audit establishing what an agency owns (and may release) and what it doesn't own, as well as the collection costs and frequency of specific datasets.

To maximise the value of this approach for states within a nation there needs to be a national accord on data, with states (or as many as possible) developing and agreeing on a consistent framework for data release which works towards normalising the collection, analysis and release of data so that it can be aggregated into national datasets.

Secondly there needs to be thought put into the difference between open and free data. Individuals and organisations who use government open data for personal, educational or not-for-profit use should be able to access and reuse the data for free. However where they are using open data for profit (at an appropriate threshold level), there should be the scope for financial contracts to be put in place, just as there is for most other resources used to generate profits.

This approach would provide a revenue stream to the government agencies releasing the data, helping offset the collection and publication costs. Contracts should also be structured to provide insurance for the data users that the data will be released on a set timetable and to a defined quality level throughout the life of the contract.

There would need to be significant thought into how these financial contracts would be structured with significant flexibility built in - for example allowing cost-recovery for developers, who may spend many hours developing and maintaining the services they build with government open data and avoiding the upfront fee model which becomes a barrier to new entrants to make profitable use of open data. There would also need to be consistency in these contracts nationally for state data - potentially a major challenge in Australia.

However if implemented thoughtfully and with significant consultation and ongoing review, a combination of rigour in data release and cost-recovery for profitable use of government open data would avoid the emerging chicken and egg issue and provide a solid and sustainable foundation for realising economic value from open data - value that would help support Australia's economy, social equity, education and scientific research into the future.

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Saturday, March 31, 2012

Australia goes mobile - 47% of net connections via mobile devices

It's long been reported that the majority of internet connections in Japan are via mobile devices - since 2006 in fact.

It now seems Australia is on the verge of following the same path, with the ABS reporting that as at 31 December 2011, 47% of internet connections in Australia were via mobile devices.

The report, (8153.0 - Internet Activity, Australia, Dec 2011), has some other interesting findings as well...
  • The number of internet connections grew by 11.0% in the year to 31 December, and by 6.3% since the end of June 2011.
  • Mobile wireless grew fastest, with a 14.7% increase since the end of June 2011.
  • The number of dial-up connections continued to decline, to 475,000 - still a substantial number, but representing only 4% of the total 11,596,000 internet connections in Australia. Of those 379,000 (3.2%) were households, the rest businesses. 
  • The number of dial-up connections declined 17.9% (from 579,000 to 475,000) since June 2011.
    Note the ABS state the decline was 16.7% - I don't know why our calculated figures differ.
  • More Australians remain on connection speeds less than 8Mbps (55%), however a good proportion are on 8-24Mbps (34.3%). Only 0.3% are on connections greater than 100Mbps.
  • The total data downloaded was 345,518 Terabytes (or 345,518,000 Gigiabytes) for the three months ending 31 December 2011. This was an increase of 26% since June 2011 (remember the number of connections only grew by 6.3% so we're all downloading more). 
  • The average downloaded per connection was 29.8 Gigabytes (Gb) for the three months so, on average, we download 10Gb per month.
  • However dial-up users only downloaded, on average, 67 Megabytes (Mb) of data per month, while broadband users downloaded an average of 10.3 Gb of data - showing a massive difference in usage.
  • There were 91 ISPs in Australia with more than 1,000 subscribers - remaining a competitively very robust market.

There is a clear paradigm shift for users when upgrading to dial-up to broadband, with usage increasing by over 15,000%.

This representing a change from email and basic web browsing to the use of the internet as a multi-media interactive entertainment, engagement and service delivery environment.

It will be interesting to see the the paradigm shift in usage from users on fixed internet connections to mobile. I believe this is even greater as the services relevant to mobile users are very different to those relevant to static users.

Perhaps we can take another lead from Japan on this, based on the use of mobile internet during and following their recent tsumani.

Or learn from these five cities benefiting from mobile apps.

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Tuesday, March 06, 2012

Stop waiting for the messiah and do it yourself

While there's many organisations now actively beginning to experiment with social media channels and tools, just as many - if not more - are still cautious about even putting a toe in the water.

"It's not right for us", they say, "our audience isn't online" or "doesn't want to engage with us" or "we don't understand the risks" or "we're not ready yet" or "we're waiting for a critical need".

I'd like to say to all of these organisations - stop waiting for the messiah and do it yourself.

As has been shown through research, humans often make decisions first and justify their actions later - which means that most of these so-called reasons for not engaging online are justifications, not evidence.

How do you know whether a new tool will work for you if you don't experiment and pilot? How will you build the expertise you may need when there is a critical need for you to use these channels?

We've seen this behaviour in industries like retail, where a major retailer, Harvey Norman, is now pulling back from use of the internet because it didn't meet their projections on revenue. How did they work out those projections without experimenting online? Why did they not meet the projections and how will pulling back increase their success?

Given the internet has been a valid sales channel for fifteen or more years and some of the largest retailers in the world, such as Amazon, have built themselves online, how could any organisation in retail claim that online isn't viable, or delay entering the market - at least in an experimental way - for over ten years?

If you're not yet engaging actively online via social media just stop waiting for the messiah - that person or reason that makes it 'compelling' for you.

The compelling reasons are that 95% of Australians are online, that other businesses are building their expertise online, that online is the second biggest media today in Australia.

Online no-one cares that you're not there - but they are talking about you - truth and otherwise.

You wouldn't wait until an emergency occurred before building your emergency management systems. You wouldn't wait until you were in court before preparing your defence.

Organisations have case studies to learn from, examples of good practice and a range of resources and tools available to experiment with online, which allow you to learn the ropes without leaving you hanging.

If you're not building your experience now then how do you expect to build it in the future? Do you think your business will be able to afford the talent needed to leapfrog a ten-year or more advantage from your competitors, rivals and detractors?

Is delay really worth the risk?


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Wednesday, September 28, 2011

Who controls what online?

In the run-up to the Web 2.0 Summit in San Francisco, the organisers have developed an animated infographic showing the points of control within the digital economy.


It provides an interesting perspective on which major companies provide which services and collect various types of data.

Take a look over at the Web 2.0 Summit map (the movements view is very cool - click on the service icons above the menu). 

Thanks @dasharp for bringing it to my attention.

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Wednesday, November 10, 2010

Whether to reuse or build - government choices in a connected world

There's been discussion on Twitter over the last day about whether Australian government should be building online platforms, such as a video aggregation and distribution service, URL shortcut tools (which Victoria have done) or collective infrastructure for hosting and developing all government websites.

This has been an area of on-and-off discussion for over a year in the Government 2.0 context, with several Gov 2.0 Taskforce projects exploring potential opportunities for Australian governments to build systems such as these.

I expect this to continue to be a debate for many years. Choosing whether to build a service, or tap into a commercial one, can be a tough decision - even tougher online than it is in the physical world.

Why so tough a decision?

For starters, many of the services which government could use are hosted overseas, therefore posing some level of sovereign risk - whether that be,

  • a concern over whether the service will continue to provide what Australia needs (when foreign laws and business policies may change),
  • that personal or secure data might be accessed and misused by another jurisdiction (especially all those people who only use one password), or
  • that it might provide an entry point for hackers seeking confidential and secret government information.
On the other hand, existing online services are frequently cheap and fast to implement, plus several are the 'norm' that people use around the world (such as Google, YouTube and eBay).

In many cases government created systems could have to be developed to the extent where they are commercially competitive in order to attract the level of user traffic needed to justify their continued existence.

So how to reconcile these differing perspectives... There's no single answer in my view. Decisions need to be made case by case. What makes sense for some jurisdictions won't for others and decisions that are right for one type of service won't be for another.

In lieu of an easy answer, I offer up four tests that I believe these types of reuse or build choices need to consider.
  1. Will it reduce private sector competition?
    In other words, is the government competing directly against enterprise. If so there may be job and tax implications. Generally Australian governments shy away from entering commercial markets except when private enterprise is unwilling or unable to deliver the services to the entire population at a fair price.
  2. Will government deliver a superior outcome?
    This tests whether a government-run enterprise will provide a better outcome than a private sector organisation. Strange as it may seem, governments are better at providing some services and outcomes than private industry - particularly where equity or public value is an issue. If the government can deliver a superior outcome there is a strong case for stepping in - if private sector companies miss out then they need to look at whether they should have restructured.
  3. Will it attract a significantly large and appropriate audience?
    It is very important to consider whether a government-run service will attract enough users to make it worthwhile. For example, Facebook has build its audience over a number of years, holding on to them through being so useful that people cannot abandon it without damaging their social networks. If the bulk of the audience use Facebook, would they use 'Govbook' - a government equivalent service, even if it is a superior product? The answer may not always be yes - and without audience a government service may not achieve its goals.
  4. Is it sustainable?
    In asking this I mean will a government continue to support and run the service over an extended period of time - perhaps even transitioning it to a private concern. Or is it possible that funds will be cut to a level where the service is unable to continue to innovate and improve, thereby seeing the service slip into irrelevance. Funding maintenance alone is no longer sufficient to address the rate of development online.
Of course these tests are merely suggestions. As pointed out on Twitter they are more guidelines than rules.

However I think that applying these tests will support more effective, evidence-based decisions - particularly in light of the large number of demands on government resources and time.

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Thursday, May 07, 2009

High speed broadband for Australia - the unexplored country

This morning I am presenting at Public Sphere #1 - High bandwidth for Australia in a personal capacity.

The event will discuss what high speed bandwidth can do for Australian society, business and government.

I have previously posted some ideas on this topic and will be talking today about how the killer applications and services for a 100Mbit plus service are likely to not have been invented yet.

For those not attending the event, I have attached my presentation below and will add a transcript in the near future.

I will hopefully be liveblogging the event after my presentation throughout the morning.

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Saturday, January 31, 2009

Do our internationally accessed government sites speak the right language?

Comscore's media release last week indicated that Global Internet Audience Surpasses 1 billion Visitors, According to comScore.

While this is probably an understatement, as it only accounts for those aged 15+, the release highlighted the increasing diversity of internet users, with China very clearly in the top spot with 179,100,000 users, compared to the 2nd placed US's 163,300,000 users.

Australia didn't even make the top 15 list, with the Netherlands scraping in at 15th spot with 11,812,000 users.

It is immediately clear than people with English as their first language are a minority on the internet.

Looking at the top 15 countries, the only ones with English as an official language were the US, UK and Canada (which has French as well). These countries only accounted for 221,173,000 of a total 711,488,000 internet users.

Extending this out to the full 1 billion internet users, only around 31% of internet users are likely to have English as their first language.

This means that for internationally focused government websites there is an enormous need to consider two options:

Rewriting websites to use extremely simple language and navigation for people who have English as a second language (or even as their first!) This is possibly the greatest need for most government websites - speaking to someone at a party last week, although they lecture at an Australian university, English is their second language and some government-speak in websites does not make sense to them.

The other, and harder, option is to co-publish in other languages, such as (written) Chinese, Japanese, Spanish, German, French, Hindi, Russian, Korean and Italian (by rough order of prominence).

Yes there's a cost to both of these approaches. However are you willing to tell your Minister that your internationally focused website is only accessible to 31% of its prospective audience in its current form - and you're OK with that?

Fortunately our tourism industry has gotten this message, Australia's official (government) tourist entry point Australia.com.au is available in eight languages and with localised content for more than 18 countries.

But what about people seeking business ties in Australia, those wanting to register their IP, anyone with a need to understand local laws or to claim benefits?

Over in Europe it is common practice to publish government and commercial websites in multiple languages - they are part of a European community as well as a global one.

How connected is Australia to our global community? Perhaps the languages we use on our websites indicate that we're not as connected as we could be - and one can only wonder at the value of this lost economic activity to Australia.

This is a whole-of-government issue, so perhaps we need a whole-of-government solution. A central team that works with agencies on a prioritisation basis (by economic impact) to convert their material into other languages - centrally budgeted of course.

Or should we rely on the audience to seek their own translators - either machine-based online ones, their employees, friends and families (with potential limited english understanding) or even paid services?

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Thursday, December 18, 2008

A wonderful time for public sector recruitment and big egovernment infrastructure projects

While speaking to a colleague earlier in the week about the rush on access to government support in some areas of Australia due to the current economic conditions, I realised that it is a very good time for the public sector to build capacity and skills.

The IT skills crunch has affected Australian government for some time, with the private sector able to be more flexible and agile in adapting job descriptions and remunerations to suit market needs. International pressures have not helped, with many of Australia's top people drawn overseas due to the challenges and financial opportunities.

Now that private organisations around the world are feeling the financial pinch, there is the opportunity for the public sector to reinvent itself as a stable and reliable employer, emphasising the value of stable jobs within a less stable global economy.

This would have the following benefits for the Australian public,

  • Accelerate the development of egovernment services and infrastructure that would provide lasting support to the community.
  • Beef up the government's capacity in service delivery at a time when access to government services are becoming more critical for the welfare of many Australian citizens and businesses.
  • Keep skilled people productively employed within Australia, rather than potentially losing them over time to other countries as they recover from the crisis.
  • Keep money flowing in the Australian (digital) economy - well designed large IT infrastructure projects could have economic flow-ons in similar ways to moderate sized physical infrastructure projects.

There are also direct benefits for the APS,
  • Address the current skills shortage issues by draw from a larger pool of skilled people who have abruptly become available in the market.
  • Assist the process of updating and improving the capacity of the public sector in the IT space, transferring skills that can be kept once projects ends and many of these skilled people transition back into the private sector (when the economic crisis ends).
  • Supports the need for government agencies to transition to a new level of egovernment service delivery and better IT systems (many of which remain firmly rooted in the last century).
  • Support the recommendation in the Gershon review to shift public sector IT workforces towards more permanent APS staff (less contractors) due to people seeking stability in an uncertain climate.

It does require government to move quickly to resource key government agencies to expand their capabilities. This kind of agility has been difficult for government in the past without clear political leadership.

Most of the above benefits for government recruitment stretch beyond egovernment to other aspects of public sector service provision. If we can draw in the skilled people looking for stability and ensure that government provides a positive employment experience, we can build lasting capacity across the public sector.

What do others think - should government be growing in a time of recession?

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