framework

Issue/Opportunities/Comments – Developing the ICT Sector

Provided By:

Reference
Primary:

Reference
Secondary:

• Broaden the stakeholders to include DoE and DoL since they will be major players in implementation.

• Co-ordinating mechanism for IT-related associations

Baseline Studies

• Credibility, coherence and convergence is necessary between all the involved parties and stakeholders i.e. DTI / DPSA / DACST / DOC. All the parties need to ensure that they [are putting in an effort to] integrate and share information and not to duplicate work, thereby improving on the fragmentation of the past

Human Resource WG

• Develop co-ordinated structure to support SMME development in the IT sector

Baseline Studies

1.1.1

• Development of IT Industry will open up opportunities for PDGs and will motivate government and public/private partnership (be more proactive) for SA and Africa

Industry WG

1.1.1

• Different stakeholders from different constituencies will come from different perspectives - this section must take cognisance of this factor.

Human Resource WG

1.1.1

• Distrust of both the business sector and the government in SA; expansion of e-commerce depends on a high degree of trust

Baseline Studies

1.1.1

• Fragmented groups are a concern with reference to all the various industry bodies e.g. ITA, CSSA, CICT, etc. as well as the government bodies, unions and associations.

Human Resource WG

1.1.1

• Industry bodies have already recognised the need for an association that will represent one voice that will be launched in one month’s time.

Industry WG

1.1.1

• Ineffective industry / government interface

Baseline Studies

1.1.1

• Lack of co-ordination

Baseline Studies

1.1.1

• Lack of representation from the IT users at today’s meeting and it is suggested that a wider base of people who make use of IT are involved in future meetings of SAITIS. This has to include SMME’s as well as large organisation, even though they might not currently be extensively using IT but which have the potential to use IT to a greater extent in future.

Usage WG

1.1.1

• Make sure that the strategy aligns as many of the expectations of as many of the stakeholders as possible.

1.1.1

• Need for a co-ordinated effort among all the various IT industry bodies e.g. ITA, CSSA, CICT, etc. as well as the government bodies, unions and associations.

Industry WG

1.1.1

• Need to ensure that there is "one voice for the IT industry" which includes all relevant constituencies and increase the membership of the constituent members of the IISA to ensure appropriate representation.

1.1.1

• Need to ensure that there is "one voice for the IT industry" which includes all relevant constituencies and increase the membership of the constituent members of the IISA to ensure appropriate representation.

• Once strategy developed, need to get as many organizations (SMMEs and large companies) involved in the process

• Polarization of ICT sectors (Gauteng and Cape)

Human Resource WG

• Stronger co-ordination between industry, government, associations and stakeholders

• The issue of insufficient representation was raised again, whereupon the Chairman suggested that wider representation should be included as the process of SAITIS develops.

Usage WG

1.1.1

• There is a lack of suitable linkages

ICT Workshop, Kimberley

1.1.1

• There may be a need to create a favourable environment for co-operation among public and private sector

• To promote innovation and new business growth there should be a collaboration between private sector, small business and government.

• Traditionally the employer-employee and Union relationships have been fairly aggressive. Partnership approach could be a solution.

• What does a "co-ordinated" industry for the IT sector mean? The IT Industry does not want to be co-ordinated, until co-ordination is defined

• What does a "co-ordinated" industry for the IT sector mean? The IT Industry does not want to be co-ordinated, until co-ordination is defined

• Youth sector has different perspective on the IT issue and must be included as the stakeholder group (young "haves" can rocket ahead and the young "have-nots" can help propel the rest of society).

• Broader macroeconomic benefits could apply if a co-ordinated and widespread liberalisation programme is adopted; could lead to increased investment, lower inflationary pressures and higher productivity (1.1.2)

• Broader macroeconomic benefits could apply if a co-ordinated and widespread liberalisation programme is adopted; could lead to increased investment, lower inflationary pressures and higher productivity

• Broader macroeconomic benefits could apply if a co-ordinated and widespread liberalisation programme is adopted; could lead to increased investment, lower inflationary pressures and higher productivity

• Existing legislation within the government that prevents use of IT will have to be addressed. (telecommunications issue - refers to the Telecommunications Act of 96 prescribing a monopoly)

• Inability to lower the costs of Internet access

• Inability to lower the costs of Internet access

• Inability to lower the costs of Internet access (1.1.2)

• Lack of liberalisation of the telecommunications industry

• Need to liberalise the telecommunications industry

• Review Telecommunications Act

• SA lagging behind on the global liberalisation trend

• Strengthen SATRA - better guidelines/regulations

• Telecommunications Act (1996) inadequate

• Telecommunications Act of 1996:

• Has exclusivity period until 2002
• Resale of voice capacity prevented for 3-5 years
• Stringent licence conditions for Telkom during exclusivity period
• Establishment of an independent regulator (SATRA)
• Immediate issuing of two mobile communication licences
• Liberalisation of the VANS and customer equipment markets

• Telecoms Act: gives Telkom a monopoly until 2002, with a possible further year if Telkom meets certain roll-out targets and service targets. Most people are saying that this should be terminated thereby introducing open competition. This will require a major rethink and revision of the Telecoms Act.

• Telkom monopoly is problematic

• The Telecommunications Act extensively criticized

• The Telecommunications Act extensively criticized

• The Telecommunications Act extensively criticized(1.1.2)

• Trade liberalisation of telecommunications: 65 countries including 35 economically less developed countries which signed the WTO Basic Telecommunications Agreement to open up the world’s market to competition

• The Telekom monopoly is viewed as a major restraint to necessary competition for IT industry development (1.1.2)

• Address the implementation of a National Strategy to include all relevant stakeholders - e.g. an organisation must be identified as an owner such as the President’s office

• An industry strategy should at least project a vision and timeline of where the IT industry is going to.

• Champions should be empowered to be expert advisors and to facilitate the development and implementation of the IT Strategy for his/her stakeholder group.

• Championship at the highest level

• Common accepted, aligned national vision, communicated, understood and accepted benefits understood

• Global vision lacking

• How to gather, align and manage the stakeholder expectations over time.

• It is important to ensure that the champions "process" is sustained and consistent.

• It should be borne in mind that this is a forum for an IT development strategy and not an overall economic development strategy. Even though the IT strategy can influence economic development, it is beyond the scope of this forum to try to address economic development.

• It should be borne in mind that this is a forum for an IT development strategy and not an overall economic development strategy. Even though the IT strategy can influence economic development, it is beyond the scope of this forum to try to address economic development. Statement only

• Comment: - If innovation is not in the public interest or contribute to economic development, why do innovation. Also see the comments re content.

• Lack of aggressive national IT vision

• Lack of country "vision"

• Lack of country "vision"

SMMES WS

1.1.3

• Lack of country vision

• Need early visible successes and tangible benefits

• Need for a national strategic vision

• Need for the organizational form needs to be driven by the Strategy and be congruent with the strategy development/implementation and management (may not need an organization)

• Need to change from a culture of dependence to one of independence

• Need to define the direction of the Strategy - focus on high growth areas or create an environment that allows the industry to develop.

• Need to indicate and define the organisation that will implement the IT Industry Strategy.

• Need to position SA innovation vision (e.g. attract global companies developing language software R&D to SA; e.g. language software development Opens world for SA) in context of SA industry development.

• no national objectives

• Organizational transformation may be an area to be addressed.

• Set national objectives for the IT industry

• Sets the background and the basis on which the Strategy is developed. Also need information on government supports & incentives, private/public partnerships.

• The identification of Champions for all stakeholder groups is highly encouraged.

• The issue of turning an entrepreneur into a champion should be addressed.

• There appears to be the political will to help regenerate an economic sector.

• There is a need for a mechanism in SA to get the concurrence of stakeholders and align visions?

• This section will set the tone and direction for the strategy.

• Title - not a "strategy" - an initial strategy as part of a longer term strategizing and strategies

• To ensure the success of the development and implementation of the IT industry strategy, there needs to be single point of ownership and championship who has the authority, credibility and visibility to drive the shared IT strategy

• Vision required to counteract the problems of obstructive policies, uncoordinated efforts, lack of funding, inadequate skills training and the absence of a culture which fosters the development and effective use of IT
• Vision required to streamline skills development along national strategic IT industry objectives

• Who is the leader ?- in many economies where IT strategies have been implemented, the government has taken a leadership role, which aligns the common shared vision of the stakeholders.

• Who will implement the strategy?

• Who will implement the strategy? Strategy must address the appropriate structure (repeat)

• Credit Record – Many new companies and entrepreneurs (SMMEs) do not have a credit history to satisfy the banks – SMMEs viewed as being too risky

• Develop co-ordinated structure to support SMME development in the IT sector

• Development of a stronger entrepreneurial base in the IT industry required with:

• access to venture capital(1.2.3)
• development of a strong SMME sector(1.1.4)
• increased incentives to make IT sector more attractive to local and foreign investors(1.2.3)
• friendly regulatory and policy environment to support such development(1.2.1)
•  Poor government services hamper IT rollout (1.2.1), (1.2.2)

1.2.3,

1.1.4,

1.2.3,

1.2.1,

1.2.2

• Further maginalization of SMME sector if the above issues are not addressed, the SMME sector will not undergo development and growth

SMME WS

1.1.4

• Inability of SMMEs to manage cash flow

SMMES WS

1.1.4

• Increased concentration of intellectual capital in "big business" If the above issues are not addressed, intellectual capital will increase in local big business and SMMEs will be left out in the cold

SMME WS

1.1.4

• Ineffective marketing of information offerings

• Inefficiencies in registration of company – do it on-line The current registration process is too cumbersome and bureacratic. The suggestion is that government should make this available on-line.

• Lack of business skills and costs SMMEs struggle to conform to administrative requirements of government, due to lack of skills, and costs of doing this are high

• Lack of credible SMMEs on a central database

• Limited selling and marketing skills to access the market

SMMES WS

1.1.4

• Need specific SMME strategies within the IT Strategy.

• Negative perception of SMME delivering capability

• No/not enough collateral available SMMEs do not have enough collateral to secure banks loans – lack of access

SMME WS

1.1.4

• Product skills do no usually accompany marketing and communication skills

SMMES WS

1.1.4

• Reinvention of the wheel. If there is no coordination and transparency, we run the risk of local SMMEs constantly re-inventing the wheel instead of building upon what has already been done

SMME WS

1.1.4

• SMMEs how can the strategy help small startups enter the market

Human Resource WG

1.1.4

• MMEs tend to think too small and too local

SMMES WS

1.1.4

• SMMEs tend to think too small and too local

• Standardisation of registration process, I think this refers to the need for a more efficient and simpler registration process.

• There is a lack of support infrastructure for SMMEs to assist with, for example, the development of a business plan

• There is no-one to provide support. Lack of some way to assist SMMEs (ie. To develop a business plan)

SMME WS

1.1.4

• What can be done to make the Technoparks viable? In which way can they contribute to the economy?

Human Resource WG

1.1.4

• Government should institute necessary incentives (and if necessary, regulations) to protect the smaller companies originally from the traditionally disadvantaged groups and thereby create empowerment for these disadvantaged groups.

Industry WG

1.1.5

• Need to find ways to get companies to make the investments in rural areas rather than in known assured ROI.

Usage WG

1.1.5

• Need to find ways to get companies to make the investments in rural areas rather than in known assured ROI.

Usage WG

1.1.5

• Technology solutions should be developed to address the needs PD groups and communities

Usage WG

1.1.6

• Currently SA is not practising employment equity satisfactorily; reasons being control and decision making still in White hands, slow transformation, all talk - no action, and reluctance to implement equity practices

Baseline Studies

1.1.6

• Development of IT Industry will open up opportunities for PDGs and will motivate government and public/private partnership (be more proactive) for SA and Africa

Industry WG

1.1.6

• Donor funds = donors look at SA as a model for using the funds properly

• Government should institute necessary incentives (and if necessary, regulations) to protect the smaller companies originally from the traditionally disadvantaged groups and thereby create empowerment for these disadvantaged groups.

Industry WG

1.1.6

• Growth of disparity in "haves/have nots" among countries and within countries

• How will these issues impact the disadvantaged groups? How can IT make a difference in the rest of Africa?

• Inequity in jobs due to legacy of apartheid regime; success of SA’s IT industry will depend largely on its ability to stimulate the growth of a vibrant Black Economic Empowerment (BEE) sector

• Need to find ways to get companies to make the investments in rural areas rather than in known assured ROI. (1.1.5)
• Strategic partnering with foreign initiatives (MNEs and other African initiatives.)
• How can IT make a difference to the rest of Africa? (1.2.3)
• There is a need to engage disadvantaged groups to determine their needs/requirements and how these will be known (e.g. through community-based organisations). (1.1.6)
• Technology solutions should be developed to address the needs PD groups and communities (1.1.6)

1.1.5

1.2.3

1.1.6

• Technology solutions should be developed to address the needs PD groups and communities

Usage WG

1.1.6

• There is a need to engage disadvantaged groups to determine their needs/requirements and how these will be known (e.g. through community-based organisations).

Usage WG

1.1.6

• There is a need to engage disadvantaged groups to determine their needs/requirements and how these will be known (e.g. through community-based organisations).

• There is a need to support PDIs and more demographically represented.

• Too many "front" companies addressing the needs in the previously disadvantaged communities. Thus not enough opportunities and needs to be invested in substantially

• Fibre-optic and copper cables are frequently stolen (1.1.6)

• Businesses avoid growth to avoid additional admin load

SMMES WS

1.2.1

• Conflicting Regulations

SMMES WS

1.2.1

• Cost of new technology may monopolize the market and be made available expensively

Infrastructure WG

1.2.1

• Credit Record for SA

SMMES WS

1.2.1

• Current and new enabling legislation must be reviewed to help ensure that they are consistent with information technology trends

Usage WG

1.2.1

• Deregulation should be the responsibility (focus) of the government

Industry WG

1.2.1

• Deregulation should be the responsibility (focus) of the government

Industry WG

1.2.1

• e-commerce: conflict of interest and approach in DoC = DoC floated the EC debate leading to the White Paper; SATRA inert and unable to resolve the issue; Telkom draconian approach to put VANs out of business.

Innovation WG

1.2.1

• Environment Degradation ( e.g. installation of antennas everywhere)

Infrastructure WS

1.2.1

• Equal competition - local demand and global competition

Innovation WG

1.2.1

• Equal competition - local demand and global competition

Innovation WG

1.2.1

• Expectations of business: an environment that will allow business to grow the business to the benefit of the shareholders and the country.

Innovation WG

1.2.1

• Fragmented government approach to IT industry

Baseline Studies

1.2.1

• Government should institute necessary incentives (and if necessary, regulations) to protect the smaller companies originally from the traditionally disadvantaged groups and thereby create empowerment for these disadvantaged groups.

Industry WG

1.2.1

1.2.2

• Improved policy co-ordination

Innovation WG

1.2.1

• Inadequate information collation and unclear interventions from national structures

• Inappropriate and lack of infrastructure

• Incentives for R&D – Initiatives for Private Sector – limited for non-existent

SMME WS

1.2.1

• Interest rates and debt burden: many developing countries have experienced net negative capital outflows (i.e. they are paying back more money than is received in the form of new loans and investments).

Baseline Studies

1.2.1

• Investment: capital mobility is not producing a massive shift of investment and employment from the advanced to the developing

Baseline Studies

1.2.1

• It is necessary to provide an environment to attract [a] Multinational Enterprises to help support the development of the SA [as an anchor for our] IT industry. [, however, incentives from the government are needed to do this and to retain such MNEs in our country.]

Innovation WG

1.2.1

• Labour Relation Act- Too onerous for SMMEs

SMMES WS

1.2.1

• Lack of co-ordination with and within Governments

SMMES WS

1.2.1

• Lack of SA’s ability to provide e-commerce services

Baseline Studies

1.2.1

• Lack of SA’s ability to provide e-commerce services

Baseline Studies

1.2.1

• Lack of SA’s ability to provide e-commerce services (1.2.1)

Baseline Studies

1.2.1

• Many of the issues raised are CSFs

Innovation WG

1.2.1

1.1.2

• Need technology scan and the skills to fit the technology scan (Baseline study). (1.3.6)
• Many of the issues raised are CSFs – (1.2.1)
• Removal of inhibitory regulations (e.g. migration) (1.2.1)

Innovation

1.2.1

1.2.1

• Need to look at regulatory environment as to how it enables or inhibits the development of the IT industry in consultation with all stakeholders.(1.1.2)
• e.g. IT companies are now forced by tax regulations to employ persons as employees rather than as an independent consultant; mitigates against bringing people in (levies increase labour cost) (1.2.1)
• e.g. Need to review the legal or regulatory mechanisms available to implement national IT strategy - use the statutory council focused on IT(1.2.1)

Human Resource WG

1.2.1

• Need to look at regulatory environment as to how it enables or inhibits the development of the IT industry in consultation with all stakeholders.(1.1.2):

• e.g. IT companies are now forced by tax regulations to employ persons as employees rather than as an independent consultant; mitigates against bringing people in (levies increase labour cost) (1.2.1)
• e.g. Need to review the legal or regulatory mechanisms available to implement national IT strategy - use the statutory council focused on IT(1.2.1)

Human Resource WG

1.2.1

• Needs regulation that helps protect where necessary but does not unduly restrict development (is a minefield)

Human Resource WG

1.2.1

• Over-regulation stifles business development

• Over-regulation stifles business development

SMMES WS

1.2.1

• Product dumping is an IT issue in that it undermines the existing job market & undermines the bottom line of company.

Human Resource WG

1.2.1

1.2.2

• Re-evaluate reporting lines in government

Baseline Studies

1.2.1

• Regulation of interest charged by Retail Financial Intermediaries (RFI’s) to clients

ICT Workshop, Kimberley

1.2.1

• Regulations should not inhibit South Africa’s competitive position or the development of business (e.g. Telecommunications Act).

Usage WG

1.2.1

1.1.2

• Regulations should not inhibit South Africa’s competitive position or the development of business (e.g. Telecommunications Act).

Usage WG

1.2.1

• Removal of inhibitory regulations (e.g. migration)

Innovation WG

1.2.1

1.1.2

• Role of the state in other countries in supporting the development of the IT industry

Human Resource WG

1.2.1

• SA currently has obstructive policy environment that inhibits growth of its IT industry

Baseline Studies

1.2.1

• Should be facilitative and not punitive regulation

SMMES WS

1.2.1

• Small business does not have the forum to give its input in this country.

Industry WG

1.2.1

• Socio-political environment

• Despite the "political miracle" of 1994, the country continues to be socially and economically divided. The country is burdened with the economic reality of having to redress the legacy of apartheid in terms of education, poverty alleviation, inequitable health care and a burgeoning crime and violence situation.
• Population: Based on 1996 Census data, the population is estimated to be at 40.58 million – 58% have access to electricity, 45% have running water in their homes, only 61.4% are literate, 54% live in urban areas.

Baseline Studies

1.2.1

• Strategic partnering with foreign initiatives (MNEs and other African initiatives.)

Usage WG

1.2.1

• The "knock" of the SARS South African Revenue Services draconian methods, e.g. the laws are working against single person companies, which, the feeling is, encourages these people who want to work as individuals to emigrate – one of the many factors contributing to the brain-drain

SMME WS

1.2.1

• The industry should be a free industry regulated by market forces

Industry WG

1.2.1

• The industry should be a free industry regulated by market forces

Industry WG

1.2.1

• The Telecommunications Act extensively criticized
• Lack of SA’s ability to provide e-commerce services
• Widening productivity and product range gap with countries like the US
• Inability to lower the costs of Internet access
• Inability of IT industry to respond effectively to the pace of change
• Broader macroeconomic benefits could apply if a co-ordinated and widespread liberalisation programme is adopted; could lead to increased investment, lower inflationary pressures and higher productivity

Baseline Studies

1.2.1

1.1.2

1.3.2

1.3.6

• There is a need to address inhibitory legislation and regulation which discourage foreign investment

Capital Mobilisation WS

1.2.1

• There is a need to address inhibitory legislation and regulation which discourage foreign investment

Capital Mobilisation WS

1.2.1

• There is a need to address the issue of "fly-by-nights" that are selling product to the gullible public

Human resources WG

1.2.1

1.2.2

• There needs to be a harmonization and alignment of policy within government, including inhibiting regulation
• e-commerce: conflict of interest and approach in DoC = DoC floated the EC debate leading to the White Paper; SATRA inert and unable to resolve the issue; Telkom draconian approach to put VANs out of business.

Innovation WG

1.2.1

• There needs to be a harmonization and alignment of policy within government, including inhibiting regulation

• What are the current policy frameworks that impact on the current IT industry

Innovation WG

1.2.1

• What impact will negative job creation, economic growth and crime has on the SMME industry

SMMES WS

1.2.1

• Need liberalization of regulatory environment to allow entry of other players

Infrastructure WG

1.2.1

• Internet:

• Legal/contractual issues, governance issues addresses- domains, copyright issues, (1.2.1)
• Expansion to historically disadvantaged and rural communities(2.1.7)
• Security issues and Social acceptance re: use of e-commerce (1.2.2)
• Provision of Internet access/services to rural communities, schools and other relevant areas where access is limited(2.3.3)
• As enabling SMMEs (1.1.4)

Infrastructure WG

1.2.1

2.1.7

1.2.2

2.3.3

1.1.4

• A criterion for selection of an RFI needs to be reviewed and more emphasis should be placed on addressing specific segments of the market

ICT Workshop, Kimberley

1.2.2

• Abuse of tendering process

SMMES WS

1.2.2

• Affirmative procurement policies not working

Baseline Studies

1.2.2

• Affirmative procurement policy of the State is not working effectively – State tenders still rely largely on contracts with known and trusted suppliers

Baseline Studies

1.2.2

• Collusion and alleged corruption in respect of "who" receives support

ICT Workshop, Kimberley

1.2.2

• Current and new enabling legislation must be reviewed to help ensure that they are consistent with information technology trends

Usage WG

1.2.2

• DTI has a cluster support system as part of their policy. It would be interesting to superimpose the innovation cluster model, presented here today, onto this DTI policy. (Comment only)

Innovation WG

1.2.2

• Existing legislation within the government that prevents use of IT will have to be addressed. (telecomms issue - Telecomms Act of 96 prescribing a monopoly) any acts require paper and does not take IT into account in conducting transactions.

Usage WG

1.2.2

1.1.2

• Fragmented government approach to IT industry

Baseline Studies

1.2.2

• Government does not use technology to its full potential to improve access
• to Government information and services and provide information in the public domain.

Usage WG

1.2.2

• Government lacks the experience in creating the appropriate environment for innovation – regulation, human resource development, financial incentives and partnerships between government, academia and business.

Baseline Studies

1.2.2

• Government must make public information public.

Usage WG

1.2.2

• Government needs to be more transparent and publish their IT Strategy and direction

Industry WG

1.2.2

•  Government should set an example regarding the support of ICT.

Industry WG

1.2.2

• Government should support the local ICT market by buying from them.

Industry WG

1.2.2

• Improved policy co-ordination

Innovation WG

1.2.2

• Inadequate geographic spread of RFI’s

ICT Workshop, Kimberley

1.2.2

• Inadequate number of RFI’s per province

• Inappropriate tender mechanism for SMMEs

SMMES WS

1.2.2

• Increase implementation and delivery capacity – Government needs to jack itself up. May be due to lack of resources and skills.

SMME WS

1.2.2

• Involve other multidisciplinary departments (e.g. DACST, DPSA)

Human Resource WG

1.2.2

• IT not a priority for Government investment

Baseline Studies

1.2.2

• Look at the imperative for impact on economic growth (e.g. job creation, imports- negative balance of payments)

Human Resource WG

1.2.2

• Low figures quoted for IT procurement due to pressure to spend on other areas deemed more critical – health, housing, education.

Baseline Studies

1.2.2

• Need a www site for SITA to provide a central place, where Government procurement information can be found.

Industry WG

1.2.2

1.2.6

• Need to define the role of government in the development of the IT industry - need to work with government to make SA competitive - needs to be role of facilitator - need to benchmark incentives

Industry WG

1.2.2

• Need to define the role of government in the development of the IT industry - need to work with government to make SA competitive - needs to be role of facilitator - need to benchmark incentives

Industry WG

1.2.2

• No access to markets and tenders

ICT Workshop, Kimberley

1.2.2

• Ntsika should build capacity and support by providing mentorship and follow-up to RFI’s and their clients

ICT Workshop, Kimberley

1.2.2

• RFI’s need to be more easily recognised to the ordinary person requiring their services

ICT Workshop, Kimberley

1.2.2

• SA’s internal problems are receiving most of IT executive’s attention; innovation and IT R&D culture seldom mentioned

Baseline Studies

1.2.2

• Should the government play a role in the IT industry at all? Should there not be a framework of rules set by the government to set a clear level playing field? I.e. rules regarding tenders, etc.

Industry WG

1.2.2

• Should the government play a role in the IT industry at all? Should there not be a framework of rules set by the government to set a clear level playing field? I.e. rules regarding tenders, etc.

• Strategy needs to suggest setting up strategic nodes (Foresight Project).

Usage WG

1.2.2

• Support services are not always up-to-date with the trends and not always conducted by experienced personnel

ICT Workshop, Kimberley

1.2.2

• There is a need for industry to be more proactive with government, academia, labour and civil society. (1.1.1)
• In the areas of:
• Increased Interaction in the development of a national strategy for the Telkom industry (licensing & policy)(1.1.2)
• e-commerce policy – government needs to develop an e—commerce policy (1.2.1)
• Development of Policy and regulations (re: incentives, venture capital) (1.2.1 & 1.2.2)

Industry WG

1.2.2

• Unfair tender process

ICT Workshop, Kimberley

1.2.2

• What is the government’s collective requirements and how does it get communicated?

Industry WG

1.2.2

• What methodology can be used to extract the market information accurately both for government as purchaser and private sector? How can we get an accurate picture of what the trends or strategies of IT companies are for the near future. Information should be shared so that the usage can do business innovation and plan for the future.

Industry WG

1.2.2

1.3.6

• A pro-active approach to funding should be taken.

Human Resource WG

1.2.3

• A pro-active approach to funding should be taken.

Human Resource WG

1.2.3

• Access to finance is problematic; not enough incentives

Baseline Studies

1.2.3

• Adequate funding for the industry

Innovation WG

1.2.3

• Available incentives do not address ICT, they are "manufacturing" oriented

Capital Mobilisation W.S.

1.2.3

• Difficulty for SMMEs to raise guarantees from banks

ICT Workshop, Kimberley

1.2.3

• Existence of appropriate incentives for the Industry (an encouraging environment)

Innovation WG

1.2.3

• Government should create attractive investment incentives. Not just a "tax holiday".

Industry WG

1.2.3

• Improve incentives to attract foreign investment

Baseline Studies

1.2.3

• Inadequate sources of funds for the higher ends of the market ie. R150,000 – R500,000

ICT Workshop, Kimberley

1.2.3

• Inappropriate and inconsistent criteria

SMMES WS

1.2.3

• Information on available, accessible financing is required to develop the IT industry in SA. And to alleviate the risk fears in financing the perceived high risk ventures.

Industry WG

1.2.3

• Investigate mechanisms to improve access to venture capital

Baseline Studies

1.2.3

• It is necessary to link financial and non-financial support to ensure viable business start-up

ICT Workshop, Kimberley

1.2.3

• It is necessary to provide an environment that promotes the establishment of high tech start-ups (e.g. Technoparks, incentives)

Innovation WG

1.2.3

• It is suggested that government possibly provide a tax incentive for active industry participants in the process of devising and implementing an ICT strategy.

Industry WG

1.2.3

• Khula cannot lend to SMME’s directly because Khula cannot service the entire country effectively and it was a policy decision that Khula be established as a wholesaler of services. DTI is also looking at other mechanisms to make finance available to SMME’s

ICT Workshop, Kimberley

1.2.3

• Khula scheme has not been successful

SMMES WS

1.2.3

• Khula should look at risk management through programmes like incubation and cocooning that will enhance the skills – track record of business expertise

ICT Workshop, Kimberley

1.2.3

• Lack of access to capital and cost of capital

SMMES WS

1.2.3

• Lack of enabling – Role of Government in capital mobilisation

SMMES WS

1.2.3

• Lack of innovation in structural capital

SMMES WS

1.2.3

• Need information on other countries’ approach to financing IT industry development.

Industry WG

1.2.3

• Not enough collateral available

SMMES WS

1.2.3

• Private sector investment not effectively encouraged (i.e. demonstrating market-growing potential of community access to IT in the remote areas)

Baseline Studies

1.2.3

• SA has a business (non-IT industry) culture of being over-cautious and indecisive because it is not part of our culture to accept failure.

Industry WG

1.2.3

• SMME Incentives:

• Insufficient incentives for ICT Development and Support (1.2.3)
• Awareness of incentives is lacking (1.2.3)
• Abuse of schemes – lack of capacity in government to monitor (1.2.3,1.2.1)
• Qualifying criteria too high (1.2.3)
• Poor co-ordination and marketing of incentive schemes – do not deliver (1.2.3)
• Very few emerging businesses benefit from incentive schemes (1.2.3)

SMMES WS

1.2.3

1.2.1

• Strategic partnering with foreign initiatives (MNEs and other African initiatives.)

Usage WG

1.2.3

• Taxes & incentives – need to develop SA approaches

Industry WG

1.2.3

• There exists a Capacity Building Fund within Khula to assist RFI’s to build their institutional capacity

ICT Workshop, Kimberley

1.2.3

• There is a lack of necessary local support infrastructure to facilitates the partnering of capital lenders and borrowers

Capital Mobilisation W.S

1.2.3

• International standards for IT have to be addressed and SA should be actively represented in this and not just be involved at an observer level.

Industry WG

1.2.4

• International standards for IT have to be recognized and adhered to in SA

Usage WG

1.2.4

• South Africa should be actively represented at those international standards setting bodies that will impact on the development of the IT industry in SA and the use of technology in SA

Usage WG

1.2.4

• Coordination between private and public sectors. Lack of alignment and common dialogue between the parties. Greater alignment between the needs of the public sector and the supply from the private sector is required.

SMME WS

1.2.5

• Discrimination from suppliers

ICT Workshop, Kimberley

1.2.5

• Ensure that cognisance of the interests of all stakeholders are reflected in the strategy and endeavour to get full participation of stakeholders are part of the strategy development (Imperative)

Innovation WG

1.2.5

1.2.5

• Entrepreneurs are not the only source of champions; other sources of champions should be tapped.

Innovation WG

1.2.5

• Existence of IT phobia and elitism

Baseline Studies

1.2.5

• Is there a realization that the private sector need to play a role in shaping the enabling environment

Human Resource WG

1.2.5

• Lack of support from private sector

ICT Workshop, Kimberley

1.2.5

• Lead players in market place should look at enabling local market solutions.

Industry WG

1.2.5

• Need for partnerships to foster innovation

Innovation WG

1.2.5

• Services in the sector are too expensive

ICT Workshop, Kimberley

1.2.5

• There is a lack of suitable linkages

ICT Workshop, Kimberley

1.2.5

1.2.6

• There is a need for industry to be more proactive with government, academia, labour and civil society. (1.1.1)
• In the areas of:
• Increased Interaction in the development of a national strategy for the Telkom industry (licensing & policy)(1.1.2)
• e-commerce policy – government needs to develop an e-commerce policy (1.2.1)
• Development of Policy and regulations (re: incentives, venture capital) (1.2.1 & 1.2.2)

Industry WG

1.2.5

1.1.2, 1.2.1,

• What role should the industry body play with regards to the relationship of the industry with the government?

Industry WG

1.2.5

• What role should the industry body play with regards to the relationship of the industry with the government?

Industry WG

1.2.5

• What should this strategy address to enable the IT industry to grow and expand?

Industry WG

1.2.5

• How much of the marketing is done by DTI and foreign affairs is properly communicated

SMMES WS

1.2.6

• A database which should be public knowledge regarding all the new IT initiatives which have been and are being launched, i.e. Foresight, SAITIS, etc. SAITIS to provide links

Usage WG

1.2.6

• Availability of marketing information for SMMEs

SMMES WS

1.2.6

• Geographical difficulties with networking and receiving support

ICT Workshop, Kimberley

1.2.6

• Good initiatives not carried through. The onerous administrative procedures of government could kill good initiatives before they have a chance of possible success

SMME WS

1.2.6

• Inadequate information collation and unclear interventions from national structures

ICT Workshop, Kimberley

1.2.6

• Is there any way to get material benefits coming from these Working Groups. Possible pilot project - review legislation for IT industry impacts (look at GCIS who publishes government information and may have someone already looking at this)

Usage WG

1.2.6

• It is mentioned that with the launch of the IISA the availability of information to other industries will certainly improve. Statement

Usage WG

1.2.6

• Lack of communication amongst various stakeholders

ICT Workshop, Kimberley

1.2.6

• Lack of transparency in the IT market. Need to improve sharing of information to know what there is that can be used. This also involves trust and greater cross-industry collaboration.

Usage WG

1.2.6

• Linkages to other initiatives

Infrastructure WS

1.2.6

• Need for a defined point of contact between the IT Industry Strategy and the Government.

Industry WG

1.2.6

1.1.3

• Need to identify and ensure there is an appropriate support infrastructure that supports networking, knowledge transfer, alliance formation and opportunity identification.

Usage WG

1.2.6

• No access to markets and tenders

ICT Workshop, Kimberley

1.2.6

• Stakeholders need to provide data (SITA) to help ensure the usefulness of the information.

Industry WG

1.2.6

• Support services are not always up-to-date with the trends and not always conducted by experienced personnel

ICT Workshop, Kimberley

1.2.6

• The SAITIS website could be used to a large extent to facilitate information networking in the ICT industry. (comment)

Innovation WG

1.2.6

1.3.6

• There is a lack of incubators and a lack of communication from incubators – not aware who they are

SMME WS

1.2.6

• There is a need for aligning the IT-related strategies in SA that are consistent with a single National IT strategy. (Industry is understood generally as business)

Innovation WG

1.2.6

1

• There needs to be joint forums (e.g. health and IT-related companies) to share information on future plans and needs so that there is a congruence between demand and supply for IT products and services, without prejudice.

Usage WG

1.2.6

• This is stated as a threat - the Internet is an Internet ( from Innovation WG)

Industry WG

1.2.6

• www.ocri.ca site can be consulted to give ideas for structuring and extending the information network. (comment)

Innovation WG

1.2.6

1.3.6

• It is necessary to establish a "global brand" for SA IT industry (e.g. multi-lingual software).

Innovation WG

1.3.1

• Lacking a ‘Made in South Africa’ label

Baseline Studies

1.3.1

• Most development is limited to reworking or local integration of internationally designed packages

Baseline Studies

1.3.1

• Need a balance of internal investment, export philosophy and adding value to industry and users.

Industry

1.3.1

• Need to define the direction of the Strategy - focus on high growth areas or create an environment that allows the industry to develop.

Industry WG

1.3.1

• No Made in South Africa trademark

Baseline Studies

1.3.1

• Not enough being done to address quality of services and products in the sector

ICT Workshop, Kimberley

1.3.1

• SA a user, not a developer of complex technology products, particularly with regard to software

Baseline Studies

1.3.1

• The consumer should also be protected in instances where upgrades are released and old versions of software are not supported by the supplier.

Usage WG

1.3.1

• Barriers to market entry for developing countries: lack of skilled employees, lack of infrastructure, lack of market information

Baseline Studies

1.3.2

1.3.6

• Financial markets are transcending national boundaries, with greater powers to larger institutions

Baseline Studies

1.3.2

• Geographic time and distance no longer exist in the global work world: companies can operate 24 hours/day by positioning activities in different time zones, take advantage of less costly, local labour skills while maintaining head offices in large urban centres

Baseline Studies

1.3.2

• Geographic time and distance no longer exist in the global work world: companies can operate 24 hours/day by positioning activities in different time zones, take advantage of less costly, local labour skills while maintaining head offices in large urban centres

Baseline Studies

1.3.2

• Global economic trends (IT impact on the nature of economic activity, information flows, work, product/service development, financial sector, trade liberalization, etc.)

Baseline Studies

1.3.2

• Global market trends (current and projected global IT market, geographical segmentation)

Baseline Studies

1.3.2

• Impact on global economic trends

Baseline Studies

1.3.2

• Internet has made the world a global village, which means that you do not only compete with your competitors in SA, but with the rest of the market on the Internet.

Industry WG

1.3.2

• Key stakeholders in SA’s IT industry are inwardly focused

Baseline Study

1.3.2

• Not exploiting interface between developed / developing world

Baseline Studies

1.3.2

• Shift from manufacturing to information economy (rise of the information economy, convergence, globalization, global information infrastructure, IT-driven employment shifts, etc.)

Baseline Studies

1.3.2

• What is the impact of all the global trends on SA?

Innovation WG

1.3.2

• Widening productivity and product range gap with countries like the US

Baseline Studies

1.3.2

• Widening productivity and product range gap with countries like the US

Baseline Studies

1.3.2

• Widening productivity and product range gap with countries like the US (1,3,2)

Baseline Studies

1.3.2

• Geographic time and distance no longer exist in the global work world: companies can operate 24 hours/day by positioning activities in different time zones, take advantage of less costly, local labour skills while maintaining head offices in large urban centres

Baseline Studies

1.3.3

• Marginalization from global trends and progress. Local environment succumbs to following the lead set by the foreign players

SMME WS

1.3.3

• Need a balance of internal investment, export philosophy and adding value to industry and users.

Industry

1.3.3

• Need to shape a concept of globalisation that is proactive rather than reactive:

Baseline Study

1.3.3

• Not exploiting interface between developed / developing world

Baseline Studies

1.3.3

• Emphasize local factors in developing the African markets.

Innovation WG

1.3.4

• How can IT make a difference in the rest of Africa? (see ADF conference)

Industry WG

1.3.4

• How can IT make a difference to the rest of Africa?

Usage WG

1.3.4

• How can IT make a difference to the rest of Africa?

Usage WG

1.3.4

• How will these issues impact the disadvantaged groups? How can IT make a difference in the rest of Africa?

Usage WG

1.3.4

• Information society development in Africa
• Africa is undergoing a rapid transformation and is outpacing the global average for growth of Internet host systems (albeit from a low base) (1.3.4)
• Assistance from foreign organisations is driving the growth: strong support from various Francophone support agencies concerned about the dominance of English on the Internet
• Regional initiatives (1.3.3)

Baseline Studies

1.3.4

1.3.3

• Need to include regional markets and share of market in the regional market

Human Resource WG

1.3.4

• Commodity markets: the developing world still relies on primary products for over 70% of its export earnings and into the latter half of the twentieth century the expansion of most primary product exports has been less than that for total world trade.

Baseline Studies

1.3.5

• Need to create or stimulate local entrepreneurship to increase local value added products which could become a self-sustaining self-feeding cycle. Move up the value chain.

Human Resource WG

1.3.5

• Need to leverage local strengths - the interface of developed and developing countries

Innovation WG

1.3.5

Baseline Studies

1.3.6

• A database which should be public knowledge regarding all the new IT initiatives which have been and are being launched, i.e. Foresight, SAITIS, etc. SAITIS to provide links

Usage WG

1.3.6

• Accessible - information sources, improved management ability

Industry WG

1.3.6

• Amongst others, we should focus on the service industry and specifically envisage the future needs of the industry, say in 3 to 5 years time.

Industry WG

1.3.6

• Availability of marketing information for SMMEs

SMMES WS

1.3.6

• Business to business linkages not working

SMMES WS

1.3.6

• Cannot read the changing character of the IT industry

Baseline Studies

1.3.6

• Country models should be considered, such as Korea’s industry expansion

Industry WG

1.3.6

• Geographical difficulties with networking and receiving support

ICT Workshop, Kimberley

1.3.6

• Government must make public information public.

Usage WG

1.3.6

• How relevant are global trends to the development of an IT industry in SA? Are global trends differentiated on 1st, 2nd & 3rd world basis (e.g. Global - how real is the promise of cheap broad bandwidth for countries)

Human Resource WG

1.3.6

• Inability of IT industry to respond effectively to the pace of change

Baseline Studies

1.3.6

• Inability of IT industry to respond effectively to the pace of change

Baseline Studies

1.3.6

• Inability of IT industry to respond effectively to the pace of change (1.3.6)

Baseline Studies

1.3.6

• Inadequate information collation and unclear interventions from national structures

ICT Workshop, Kimberley

1.3.6

• Internet provides the opportunity for businesses to transform their business processes; it allows Organizations to collaborate to create new markets and compete globally and the government should support.

Innovation WG

1.3.6

1.2.6

• Lack of communication amongst various stakeholders

ICT Workshop, Kimberley

1.3.6

• Lack of transparency in the IT market. Need to improve sharing of information to know what there is that can be used. This also involves trust and greater cross-industry collaboration.

Usage WG

1.3.6

• Limited market information

SMMES WS

1.3.6

• Need technology scan and the skills to fit the technology scan (Baseline study). (1.3.6)

1.3.6

• Need technology scan and the skills to fit the technology scan (Baseline study). (1.3.6)
• Many of the issues raised are CSFs – (1.2.1,1.1.2)
• Removal of inhibitory regulations (e.g. migration) (1.2.1, 1.1.2)

Innovation WG

1.3.6

• Need to cognisant of existing strategies and policies to determine their impact on the development and implementation of the strategy.

Innovation WG

1.3.6

1.2.6

• Need to track the development of the trends in telecommunications

Human Resource WG

1.3.6

• Need to track the technology changes and their impact on SA.

Industry

1.3.6

• Need trends in regulation of industry

Human Resource WG

1.3.6

• No access to markets and tenders

ICT Workshop, Kimberley

1.3.6

• Sets the background and the basis on which the Strategy is developed. Also need information on government supports & incentives, private/public partnerships.
• This is stated as a threat - the Internet is an Internet (from Innovation WG)

Industry WG

1.3.6

• Support services are not always up-to-date with the trends and not always conducted by experienced personnel

ICT Workshop, Kimberley

1.3.6

• The development of effective information-sharing, exchange, and collaboration mechanism(s).

Innovation WG

1.3.6

• The issue of increasing the information networks should be addressed.

Innovation WG

1.3.6

• There is a need for better information on IT products and services available in South Africa.

Usage WG

1.3.6

• There needs to be joint forums (e.g. health and IT-related companies) to share information on future plans and needs so that there is a congruence between demand and supply for IT products and services, without prejudice.

Usage WG

1.3.6

1.2.6

• We should expand and concentrate on communication in the form of information networks.

Innovation WG

1.3.6

1.2.6

• What are the trends in democratization/decentralization process in countries

• What methodology can be used to extract the market information accurately both for government as purchaser and private sector? How can we get an accurate picture of what the trends or strategies of IT companies are for the near future. Information should be shared so that the usage can do business innovation and plan for the future.

• What will the nature of "work" be in ten years’ time? (need to get copy of Foresight project findings)

Issue/Opportunities/Comment – Stimulating ICT Innovation

Provided by:

Reference
Primary:

Reference
Secondary:

• Countries need to be very smart to compete; the US spends approximately 40% of its R&D budget on the IT sector, providing financial underpinning for high-tech industries which developing countries cannot match. (comment)

Baseline Studies

3.1.1

1.3.2

• Inadequate R&D activity e.g. incentives, funding

SMMEs WS

3.1.1

1.2.3

• IT R&D investment not a priority for SA Government

Baseline Studies

3.1.1

1.2.2

• Low expenditure on R&D

SMMEs WS

3.1.1

1.2.2

• No strong R& D culture

Baseline Studies

3.1.1

• Overall, research on computer sciences represented only about 2.3% of total R&D spending in 1993. The business sector had a greater involvement in funding computer science R&D, representing 63.4% of total funding in 1993. This suggests that IT R&D is more geared to business applications than to the more exploratory basic research conducted at academic institutions. Business sector support for R&D was geared for the most part at the telecommunications industry – adapting technologies, particularly software, for local conditions.

Baseline Studies

3.1.1

• R&D in the IT sector
• South Africa’s R&D expenditure is currently about 0.8% of GDP. Though below most OECD countries, this compares fairly well with many newly emerging countries and developing countries and is well in advance of other African countries

Baseline Studies

3.1.1

• Since IT is a basic technology which is increasingly used in almost all fields of research, accurately estimating the amount of R&D in the IT sector is problematic.

Baseline Studies

3.1.1

• There is little investment in R&D in SA

Innovation WG

3.1.1

1.2.2

• Focus is on applied research.

Innovation WG

3.1.1

• Brain drain - is the proportion of R&D and innovation enough and is there a strong enough link; balance between basic research and application

Innovation WG

3.1.2

1.2.2

• Build awareness of potential for innovation

Innovation WG

3.1.2

• Complicated intensive admin requirements (skills or staff)

SMMEs WS

3.1.2

• Need a measure of Innovation

Innovation WG

3.1.3

• Innovation and R&D and Financing has not been discussed? The government has to be involved in the form of grants etc.

Industry WG

3.1.4

1.2.3

• Insufficient applied research incubators – this issue should be addressed by the Innovation Working Group

Capital Mobilisation WS

3.1.4

• Lack of IT innovation within government

• Need to strengthen research capabilities within institutions such as CSIR and Denel

Baseline Studies

3.1.4

• Lack of R&D investment from Government (Promotion)

Infrastructure WS

3.1.4

1.2.2

• Issue of IP rights - need to take cognisance of the issues and changes and how SA will secure its IP rights.

Innovation WG

3.1.5

• To find ways that necessary innovation happens in the other areas. How do we foster innovation in areas other than technology innovation (spin-offs and ripple effect; affordability and accessible, but not out of technology sector = demand driven)

Innovation WG

3.1.7

• To find ways that necessary innovation happens in the other areas. How do we foster innovation in areas other than technology innovation (spin-offs and ripple effect; affordability and accessible, but not out of technology sector = demand driven)

Innovation WG

3.1.7

• Need to distinguish between basic R&D and product development.

Innovation WG

3.1.8

• We should focus on central themes for innovation within SA or Africa as a whole. We should then examine our strengths and where we could potentially apply ourselves. This should then be globally measured against what is happening and what the needs are.

Innovation WG

3.1.8

• What are the implications of world IT and trade bodies - e.g. WTO, WIPO

Innovation WG

3.1.8

3.1.5
1.2.4

• Potential failure of technical research due to lack of market research

SMMEs WS

3.1.9

• The engine of Innovation will be the private sector - how to align systems of Innovation + organizations interests of stakeholders and the strategy. How to include the private tertiary and secondary education institutions

Innovation WG

3.1.11

3.1.8

• Offset agreements and development agreements should be applied to innovation

Innovation WG

3.1.12

• There are significant constraints in the venture capital market in SA amount of funding, cautious nature of the VC market participants, sophistication of VC market participants.

Innovation WG

3.1.12

1.2.5

• Innovation needs to be geared to market growth with respect to the African market.

Innovation WG

3.1.13

1.3.4

• SA has a business (non- IT Industry )culture of being over-cautious and indecisive because it is not part of our culture to accept failure.

Innovation WG

3.1.13

1.2.3

• We should focus on central themes for innovation within SA or Africa as a whole. We should then examine our strengths and where we could potentially apply ourselves. This should then be globally measured against what is happening and what the needs are.

Innovation WG

3.1.13

1.3.4

• It is seen as crucial that the 20 + Universities and other research institutions should be included in the Innovations Working Group. It is noted that an apology had been received from Prof. A Walker, a representative of WITS University. In this context, research by Computer Science Departments, as well as the Centres of Excellence were mentioned. (need private providers, Technikons, Teachers Colleges)

Innovation WG

3.1.14

• Not enough people coming into "Innovation field" and the loss of people from "Innovation field" - not have the necessary knowledge base.

Innovation WG

3.1.14