South African ICT Sector Development Framework

APPENDIX I: DETAILS OF INITIATIVES

This initiative will investigate and establish an appropriate governance and organisational approach for implementation of the ICT Sector Development Framework. This will involve establishing the appropriate governance structure to guide implementation of the Framework, including the respective roles of stakeholders from industry, government, labour and academia. The initiative also includes the establishment of an implementation entity that will undertake day-to-day strategy implementation activities.

The purpose of this initiative is the establishment of the governance and organisational approach that will successfully take the ICT Sector Development Framework into implementation. This initiative implements Strategy 1.1.1: Sustain Action Through Leadership and Inclusivity.

Many countries around the world have established governance and organisational approaches that marshal all available stakeholder resources to develop ICT sector capabilities and to realise the potential of the enabling capabilities of ICTs in other sector of the economy and society. Global competition is of such magnitude and the task of developing local capabilities sufficiently large that all available resources need to be devoted to the task.

Whereas there is an already established ICT sector in South Africa, that sector is currently fragmented and acting without national purpose. The Industry Working Group, in addressing this issue, stated that it is necessary to establish credibility, coherence and convergence between all the involved parties and stakeholders to achieve the goals and objectives of the Sector Development Framework.

In particular, it is important to adopt a governance and organisational approach that foster the articulation of a national ICT sector vision, that provides leadership in implementing the Sector Development Framework and that permits the participation of all stakeholders. A key element of this initiative is the successful transition of the processes and structures for the development of the Sector Development Framework, more particularly the Project Office but also including the ancillary structure such as the Stakeholder Groups, Strategy Working Groups and Forums, to the permanent processes and structures that will assist with implementation of the Sector Development Framework and ensure sustainability after completion of the SAITIS project.

• In choosing the governance and organisational approach it is important that there be:

• A clear mandate to act with national purpose.
• Concurrence on vision, goals and objectives.
• Committed and involved leadership.
• Inclusivity of all stakeholders.
• Commitment to economic growth, social upliftment and empowerment.

Following is an expansion of the meaning of Strategy 1.1.1 and the criteria that will be applied in developing the detailed scope of an initiative to address it. The end result is expected to be a meaningful and effective governance structure and implementation entity.

• A co-ordinated voice for each of government, industry, labour and academia;
• A consistent message from each stakeholder group;
• Coherent action from each stakeholder group;
• A representative body from each stakeholder group that has a clearly defined mandate and authority to represent the interests of that group; and
• Leadership authority that is legitimised by endorsement by the stakeholders within the group and clearly communicated to other stakeholder groups.

• A structure to bring stakeholders together;
• A well-defined process for obtaining stakeholder input, particularly with respect to major decisions;
• A well-defined process for decision making;
• A streamlined process for decision making;
• A dispute resolution mechanism; and
• Established criteria for membership.

Sustain Action implies an implementation entity that:

• Has a clear mandate with respect to supporting ICT sector development;
• Has authority and legal standing with respect to procurement;
• Has the capacity to manage multiple, large projects;
• Has sufficient procurement flexibility for a dynamic industry environment;
• Can accept, and deal with, multiple funding sources;
• Is fiscally accountable to its funding stakeholders; and
• Has clear links to the inclusive leadership.

This initiative is proposed to include the following steps:

• Review of the recommendations on governance and organisational approaches from the SAITIS Sustainable Approaches and Structures Report;
• Stakeholder consultation on the most appropriate governance structure and implementation entity to be adopted; and
• Implementation of the selected governance structure and implementation entity.

DTI should take prime responsibility for establishing the governance structure and implementation entity and securing stakeholder support for their implementation. The SAITIS project team will perform a mentoring and support role in the establishment of the governance structure and implementation entity and, in particular, supporting transition from the existing project environment to the longer-term implementation entity.

The active support and participation of stakeholder groups in the establishment and operation of the governance structure and implementation entity are critical to successful implementation of the Sector Development Framework.

• Marshalling of far greater resources for implementation of the Framework than could be achieved by any single stakeholder or sub-group of stakeholders.
• Clearly expressed leadership and strategy implementation responsibilities.
• Through co-ordinated action, the achievement of impacts otherwise not possible, such as accelerated growth of the ICT sector in South Africa, increased uptake of ICTs in the South African market, and greater penetration of global markets.

It is proposed that a report to stakeholders be prepared at least annually on implementation of the ICT Sector Development Framework. This report will draw upon the metrics being developed by the Indicators Working Group as broad measurements of success. In addition, it will be possible to measure success through the results achieved by various initiatives that constitute the Going Forward Plan. There will also need to be periodic external audits of the success of the ICT Sector Development Framework and initiatives.

Strategy 1.3.1: Provide Leadership and Foster Champions is complementary to this initiative in that it extends the processes of providing leadership and fostering champions widely throughout the country. It is proposed that the implementation entity will take the lead in establishing mechanisms to identify, encourage and support leaders and champions in the development of the ICT sector. This can include mechanisms to involve industry associations, other levels of government, universities and technikons, stakeholder groups, and many more. The implementation entity should also investigate the development of complementary partnerships at the provincial level to foster provincial/local ICT sector growth.

The timeframe to establish the governance structure and implementation entity is expected to take 6-9 months.

The SAITIS Project Office has been collecting and recording a list and description of all the current initiatives underway in South Africa that are relevant to the development and implementation of the ICT industry strategy. There is a need now to analyse these initiatives and assess the impact of these initiatives on the implementation of the ICT Sector Development Framework. In addition, this analysis will also identify the potential synergies that may be created by combining the efforts and resources of the SAITIS project and the current initiative.

The purpose of this key initiative is to analyse the impact and relevance of each initiative to the strategies and actions set out in the ICT Sector Development Framework.

This key initiative will have relevance to almost all the strategies and actions in the ICT Sector Development Framework, either by identifying the impact or identifying the fact that there is no current initiative to address particular strategies or actions.

The analysis and synthesis of the ICT sector (and ICT-enabled sector) initiatives currently underway in South Africa is important for two reasons. First, for the effective implementation of the ICT Sector Development Framework, the Implementation Office needs a complete listing of all initiatives that directly (and indirectly) impact strategy implementation. The Implementation Office will need this information to identify potential partners who can assist in implementing the strategies and eliminate potential duplication of effort. Second, this information will assist the Implementation Office to determine if there is a benefit in consolidating various initiatives under one umbrella and thus maximise the use of resources. This information will also assist to determine where new initiatives need to be undertaken.

This work can be done through the use of contract resources, possibly in conjunction with a university graduate program or other research organisation. There is currently some work being undertaken to analyse the impact of certain government regulations and this initiative would benefit from the work already in progress. There would also be a need to identify the work done by various research organisations in South Africa and enlist their assistance.

The activities needed to undertake this initiative would include:

• Review and complete the listing of current ICT sector (and ICT-enabled sector) initiatives underway in South Africa.
• Identify and collect the analysis of initiatives already done.
• Develop a set of criteria to assess the impact of initiatives.
• Assess the impact of these initiatives on the ICT sector strategies and actions.
• Prepare report and publish.

SAITIS Implementation Office

DTI

DoC

DACST

DPSA

Other government departments (e.g. DoE, DoL)

IISA

ICT sector organisations

This initiative will provide essential information to permit a more effective use of limited resources, create important linkages among stakeholders and develop/enhance synergies in implementing the ICT strategy.

Report on impact analysis of initiatives.

Number of linkages created from the information generated.

All partners in this initiative.

Listing of current initiatives completed by the SAITIS Project Office.

This Initiative could be completed within a three-month period after letting of the contract.

To select and implement major ICT projects in Gauteng and Cape Town, respectively, as a means to accelerate ICT development. Such projects would have the objectives of strengthening the capabilities of Gauteng and Cape Town to become centers (or clusters) of ICT growth.

To demonstrate that the key players in business, industry, universities/colleges and government R&D can come together around a specific project(s) and that through their interaction closer ties will develop. In this way the cluster will develop more cohesion, which in turn will spur economic/technological development. This initiative responds to the element Strategy 1.1.2: Establish a Framework for a Sustainable ICT sector.

Eight key characteristics have been identified as important to successful cluster development through a review of the dynamics of more than 60 knowledge-based industrial clusters around the world. These characteristics were rated on a scale of 1 to 10 for Gauteng and Cape Town during Innovation Workshops sponsored by the Innovation Working Group in those regions. The results are shown below:

To improve the situation, that is, to move the rating in each category towards a ‘10’, requires that the key players in business, industry, universities/colleges and government residing in a cluster work closely together. In the more successful clusters around the world there is a very close relationship among these players.

One way of creating close ties among the players in either Gauteng or Cape Town is bring them together to work on specific project. Candidate projects could include:

• Mobile communications for community development;
• Smart card development in the financial sector;
• Development of communications based security technologies;
• Communications network linking researchers in the main cluster to those in satellite clusters.
• Supporting the development of information infrastructure for South Africa.
• E-Business/E-Government development.

The steps to be taken in this initiative are the following;

• Bring the key players in a cluster together, under the auspices of an appropriate group, to identify a specific project(s) whose implementation would benefit each player (i.e.-find a win-win project(s)).
• Prepare a proposal defining the project, the role of each player and outcome.
• Obtain funding.
• Establish a project office.
• Implement the project.

To develop such projects, the following is required:

• A detailed analysis of the clusters (as outline above).
• A more in-depth understanding of the strengths and weaknesses of the clusters (i.e. what lies behind the analysis done with the Innovation Working Group).
• A vision of what the clusters can aspire to achieve and a roadmap of how to get there (this would relate to dealing with the individual elements of the above spider diagrams for each cluster and the identification of a project(s) for each; the business case(s) around the project(s) would also be required).
• The identification of a champion or champions to take charge of achieving the vision as well as the support available from stakeholders.
• A determination of the organisational structure(s) needed.
• A determination of funding required and resources available.

Cluster development can also draw upon various aspects of the ICT Sector Development Framework that are dealt with on a sector-wide basis. For example, how can information exchange be fostered on a cluster basis? What are the markets? Would a locally based organisation be more effective than a sectoral one? What would it do that is different?

In respect of funding:

• DTI to take the lead role.

In respect of cluster development:

• In Gauteng, the Innovation Hub would potentially take the lead.
• In Cape Town, CITI would potentially take the lead.

• ‘Anchor tenants’(i.e.- one or two large firms)
• SMMEs
• Educational institutions
• Research laboratories (government/university)
• Financial community

• Demonstration that the key players can work together effectively.
• Development of new technologies, new skills and research capabilities.
• Development of new IP (patents, copyrights).
• Improvement in the eight characteristics of success.
• Strengthened core organisation (e.g.-Innovation Hub; CITI).

Indicators include:

• New IP (patents, copyrights)
• Number of Research papers
• Number of People trained in the selected domain
• New products/services demonstrated
• Increased membership in core organisation

The pre-requisite/dependent strategies/actions within SAITIS.

Since it will take time for results to appear (i.e.- the S curve), the project should have a five-year life.

ICT capabilities in a chosen sub-sector will be transferred from an existing cluster (i.e. Cape Town or Gauteng) to a small centre in reasonable proximity to the main cluster (e.g. George has been identified as a possible satellite cluster location for Cape Town) so that the latter can, over time, develop a competitive position in this sub-sector. This will be done by setting in place a pilot project focusing on a particular technology or application within the chosen sub-sector.

The purpose of this initiative is to determine whether ICT capabilities can be successfully built up outside the main urban centres by linking existing capabilities in Gauteng and/or Cape Town to emerging ones in smaller centres (i.e. satellites). This initiative falls under the strategic elements and actions referred to in Strategy 1.1.2: Establish a Framework for a Sustainable ICT Sector.

High technology, including ICT, develops best when there is close interaction among the key players involved in its development (e.g. venture capitalists, technologists, customers, R&D specialists, etc.). Physical proximity facilitates the interaction. Hence, high technology develops or clusters in specific geographical areas or regions. The best known is Silicon Valley. Only a few major geographical clusters have the full array of capabilities needed to ensure the rapid development of high technology. Other regions can augment their capabilities by linking up with more mature clusters that are close by. These become known as satellite clusters until they develop the level of expertise needed to become full-fledged clusters.

In South Africa, Gauteng and Cape Town are two regions where ICT capabilities are concentrated or clustered. These two clusters can become the hubs linking to a number of satellite clusters that draw on the expertise found within the hubs to ‘grow’ their own ICT capabilities.

In this pilot project it is proposed to link the ICT capabilities in an existing cluster with an emerging one in a smaller centre. The activities to be undertaken to implement this initiative are:

• Obtain the commitment of the economic/technological leadership of the selected satellite to this project.
• Develop a profile of the ICT capabilities and supporting infrastructure in the selected satellite.
• Undertake an ICT needs analysis of the selected satellite.
• Identify one project which meets a need of the satellite (or provides an opportunity) and can be supported by the emerging ICT capabilities in the selected satellite and the existing ones in the established cluster.
• Prepare a proposal involving all the key players in both the satellite and the established cluster.
• Obtain funding.
• Set up a management structure for project implementation.
• Proceed with implementation.

DTI

• DOC with regard to the provision of telecommunications infrastructure.
• Provincial government with regards to physical infrastructure support.
• Organisation driving the established cluster (e.g. Innovation Hub in Gauteng or CITI in Cape Town).
• Economic development authority in the satellite cluster.
• ICT organisations already established in the satellite cluster.

• Demonstration that a satellite cluster can ‘grow’ ICT capabilities when linked to a more mature cluster.
• Meeting a need of the satellite cluster.
• Formation of new firms in the satellite cluster.
• Creation of employment in the satellite cluster and in the established cluster.
• New technological capabilities in existing firms in the satellite cluster.
• New intellectual property developed.
• New capabilities and infrastructure set in place in the satellite cluster.

• Number of skilled jobs created in the satellite cluster.
• Number of firms created in the satellite cluster.
• Number of skilled jobs created in the established cluster.
• Number of patents and copyrights obtained.
• New capabilities established in the satellite cluster.
• New infrastructure set in place in the satellite cluster.

DTI cluster development program.

This initiative will establish the mechanisms to support increased information exchange within the ICT sector in South Africa.

The purpose of this initiative is to strengthen linkages among sector participants through information exchange so as to foster co-operative action to develop the sector and assist in developing an ICT innovation culture within the sector. This initiative implements the information exchange components of Strategy 1.1.3: Foster ICT Sector Linkages, and the ICT sector component of Strategy 4.1.1: Create ICT Innovation Awareness.

The intent of this initiative is to seek out and support a sector organisation, such as IISA, to take a lead role in developing, promoting and hosting an ongoing program of sector events for the exchange of information on technical, market, management, human resources, and other matters of importance to the ICT sector. The sector organisation would also host educational functions to raise the awareness of technology trends, linkage opportunities, entrepreneurship, risk management, and other areas.

The sector organisation would also serve as the host for a CEOs’ Forum, comprising the CEOs of major companies in the ICT sector in South Africa, which would meet on a periodic basis to discuss business issues and opportunities as well as to promote the ICT sector.

The sector organisation would also develop and deliver an ICT innovation awareness program to the ICT sector. This would involve developing a culture within companies where innovation is a core capability, and where companies embrace new, unusual ways of fostering innovation. It would mean creating awareness that innovation is not simply in products and services, but in every aspect of the company and practised by its entire staff. Practical approaches to encouraging such an innovation culture would be developed.

There will be a need to determine if the initiative should be developed and delivered on a national basis, or whether different approaches and content should be adopted for different geographical areas. One option with regard to the latter would be to link the initiative to the development of ICT clusters and satellite clusters in Strategy 1.1.2: Establish a Framework for a Sustainable ICT Sector.

The activities to be undertaken to implement this initiative are:

• Develop a description of an information exchange program and test with a cross-section of ICT companies.
• Refine the program based on the feedback received and develop a detailed description.
• Develop the business case for the initiative, including the extent of financing that can be expected from ICT sector participants.
• Identify the funding required from government, particularly for the ICT innovation awareness program.
• Identify and engage an appropriate ICT sector organisation to take responsibility for the program.
• Obtain funding support from government.
• Launch the initiative with the ICT sector organisation.
• Monitor the success and impacts of the initiative on a periodic basis.

A sector organisation such as IISA.

It is expected that DTI will fund this initiative. There will also need to be co-ordination with the body or bodies that implement the remaining aspects of Strategy 1.1.3 and Strategy 4.1.1.

This initiative is expected to foster ICT sector linkages (both formal and informal) and from that should flow a better understanding of ICT opportunities, technologies, products and services, applications, partnerships, etc. It is also expected to promote an ICT innovation culture leading to an increase in new technologies, products and services, and applications, and to improved business processes. As well the initiative will lead to improved company performance and survival through better understanding of entrepreneurship and risk management.

The most immediate indicators of success will be the number of successful program elements offered by the sector organisation as measured by the satisfaction and degree of uptake by ICT sector participants. Longer-term measures relate to the performance of the ICT sector, however, it will be difficult to isolate the contributions of the sector organisation from other factors.

There are potential linkages to other elements of the strategy as follows:

• Strategy 1.1.2: Establish a Framework for a Sustainable ICT Sector, as indicated above, to potentially deliver the initiative in concert with cluster and satellite cluster development.
• Strategy 1.1.4: Accelerate Successful Entry to include within the initiative support for early-stage companies so as to improve their chances of success.
• Strategy 1.3.2: Develop Information Networks in that the ICT Sector Portal could be utilised as a support vehicle for information and knowledge sharing.
• Strategy 1.3.3: Increase the Financing of Sector Development to include within the initiative the development of programs and materials on access to venture capital and other financing sources.
• Strategy 1.4.1: Communicate Market Trends and Opportunities to support the dissemination of information on market trends and opportunities.
• Strategy 4.1.2: Create ICT Innovation Listening Posts in that the sector organisation can support the dissemination of ICT innovation intelligence to the ICT sector.

It is proposed that this initiative be established for an initial five-year timeframe, with review of progress on a yearly basis. At the end of five years, a major review of the initiative should be undertake to assess success as well as the ongoing nature of the initiative and its need for funding.

To conduct a review of the policy environment of South Africa’s ICT sector.

The purpose of this initiative is a first step to recommend the alignment of existing policies and the creation of new policies to support the achievement of the goals and objectives of the ICT Sector Development Framework. This initiative begins the implementation of Strategy 1.2.1: Create Dynamic Policies and Programs for the ICT Sector.

The intent of this initiative is for the ICT sector to prepare to engage government in a comprehensive and systematic way to create the policy environment (and related regulatory and legislative aspects) in South Africa that will permit the ICT sector to take full advantage of the opportunities possible with evolving technologies and markets. Existing policies have been arrived at after much public consultation and debate, and taking into account factors beyond the scope of this strategy development process. Thus, the approach proposed is one of priority, but measured, consideration of policy options, taking into account the concerns of the ICT sector.

The ICT Sector Development Framework identified a number of areas where government action is required, namely:

• Electronic commerce (to establish the policies and legal framework for secure electronic commerce).
• Telecommunications policy (to create a more open and competitive telecommunications sector).
• Labour market (to address the need for accurate and timely labour market information).
• Education and training (to address the need for skilled workers and to ensure broad access to education and training opportunities).
• Legal framework (to ensure that rights and freedoms are respected, e.g. intellectual property rights, and that international agreements are adhered to).
• International trade (to address the implementation of international agreements such as the World Trade Organisation agreement on trade in basic telecommunications, foreign investment rules, etc.).
• Taxation (taxation measures to stimulate investment and growth in the sector).
• Immigration policy (to offset the "brain drain" and the lack of skilled personnel in key occupational categories).
• Equity (to ensure that social upliftment and empowerment are achieved, to address issues of universal access and affordability).
• Government procurement (to use government procurement as a lever to meet sector goals and objectives).

This initiative will be focused on areas that will have the most immediate positive impacts on the sector, such as telecommunications policy, taxation, electronic commerce and immigration policy; leaving other areas for later consideration. The SAITIS Project Steering Committee has recommended that work on this initiative begin immediately.

The following activities are proposed for this initiative:

• Develop detailed Terms of Reference for the review of priority policy areas.
• Commission external work to assist with the review: research to understand the current legislative, policy and regulatory environment that affects the ICT sector; research on the impact of the current legislative, policy and regulatory environment on the ICT sector; and, research and analysis on areas of legislative, policy and regulatory change that would provide a better environment for the ICT sector.
• Develop recommendations to government for legislative, policy and regulatory change.
• Present recommendations to government.
• Determine mechanisms for ongoing policy monitoring, review and analysis and for making recommendations to government.

An ICT Sector Association such as IISA, with funding support from DTI.

The willing co-operation of various government departments and agencies in the review will be necessary, both in the research of the current legislative, policy and regulatory environment, as well as areas of legislative, policy and regulatory change. In addition, the willing participation of a representative sample of private sector companies will be necessary.

The most immediate benefit of this initiative is a better understanding of the areas of legislative, policy and regulatory change that can positively influence the development of the ICT sector. The longer-term benefit is the development of the enabling policy/support environment that will make South Africa an attractive place for ICT development.

The immediate indication of success will be the acceptance and implementation by government of the recommendations produced by this initiative. On a longer-term basis, the initiative will contribute to the goal of a robust, growing and sustainable South Africa ICT sector, with equity.

This initiative will contribute to other areas of the ICT Sector Development Framework where there are specific legislative, policy and regulatory elements or support program development requirements. Key examples include:

• Objective 1.4: Stimulate Export Penetration to Capture a Growing Portion of the Global ICT Market.
• Objective 2.2: Make a Modern Information Infrastructure Available to all South Africans.
• Objective 3.3: Establish the HR Development Infrastructure to Provide the Pool of ICT Skills to Support the Development of ICT and ICT-Enable Industries.
• Objective 4.2: Stimulate ICT Research and Development of World-Class Products, Services and Applications for Local and Global Markets.

This initiative should start as soon as possible and be completed within six months.

The ICT Sector Portal would be an Internet-based system business tool, sponsored by the IISA, initially developed through SAITIS funding, under the direction and management of the IISA. The system would be available to all companies in the ICT sector and would be designed to provide information for ICT companies to assist the growth of the ICT industry.

The portal would be modelled on, and adapt the concepts and ideas from a number of similar web sites and portals in other countries. For example, there is a number of existing information sources used in Canada (e.g. CATA’s Technogate, SHRC, Strategis, ITAC). The Internet-based service would provide a database structure and search and retrieval system to provide access to the information, resources, individuals, and companies that are needed to support growth of the ICT sector.

The specific objectives of the portal would be to:

1. Provide the ICT industry with access to relevant information, potential partners, customers and skilled staff.
2. Provide an opportunity for job creation through the development of an Internet-based IT job market.
3. Provide a single window for information on joint ventures and potential business partnerships.
4. Provide opportunities for developing international trade linkages.

Implementing the ICT Sector Portal will help support strategies to:

• Improve linkages among companies in the ICT sector.
• Create awareness, both within the sector and outside the sector.
• Help increase the availability of financing for companies.
• Help encourage SMME entry into the sector.
• Communicate market trends and opportunities.
• Market South Africa’s ICT products and services.
• Develop the human resource base and provide employment opportunities by providing information on access to the job market (demand).
• Forge cross-sectoral linkages between the ICT sector and non-ICT sectors, and with innovation initiatives.
• Engage communities, improve access for disadvantaged communities and improve opportunities for disadvantaged areas.

The concept of an Information Network dedicated to providing information and assistance to the ICT sector was identified by the participants of the Innovation Working Group held in Pretoria and the Innovation Workshop held in Cape Town, in November 1999 as being essential. In both of these discussions, participants identified that information on topics such as the availability of financing, potential partnerships and joint ventures, international business possibilities was needed to help develop the ICT sector.

While it was noted that some individual companies could and do obtain this information on their own. However, many of the SMMEs do not have the resources to do this research or find this information. Following discussions with the IISA, it was agreed that this organisation would sponsor the development and implementation of a Web Site dedicated to furthering the development of the ICT sector in South Africa.

A program could be established (e.g. using higher education students on contract) to assist companies in becoming registered and set up on the Portal. However, in the longer term, ICT companies would be required to "self-register" and to maintain their data.

A list of activities to be undertaken in order to implement the initiative is set out below.

The project would be developed under the auspices of the IISA for the ICT sector as a whole, managed by Mr Piet Opperman, Honorary Treasurer of IISA and Vice-President of ITA, and supported by the SAITIS project initially, in addition to sector member companies (e.g. DiData). Over time, support for the ICT Sector Portal would be sought from all members of the ICT industry, through member contributions (in-kind or cash) and subscriptions. There could also be an opportunity to provide services on a fee basis.

• ICT sector member companies
• SMMEs
• Government departments (e.g. DTI, DoC, DoL, DoE)
• HET, FET Institutions
• Financial intermediaries (e.g. banks, venture capitalists)
• SADC
• International ICT organisations
• Linkages to international ICT Portals

The implementation of this project would provide the ICT industry with a tool to provide information that would help support the development and marketing of applications globally, mobilise capital, provide an incentive for research and development, and develop international linkages. The result of this project, when successful will be to help achieve the following outcomes:

• Put in place a measure to strengthen and grow South Africa’s ICT sector.
• Provide a means to create co-operative structures in place to ensure on-going participation of all key stakeholders. In other countries, this structure has helped to mobilise industry to present a consolidated industry case to government on issues that directly concern the industry.

The measures for the success of the ICT Sector Portal would be based on quantitative data (e.g. number of hits) as well as survey information from the users of the Portal. Specific indicators could include:

• Number of persons finding employment through the use of the portal.
• Number of companies that found capital for entry or expansion.
• Increase in exports resulting directly from the use of the Portal.

• ICT sector companies
• Graduating students
• Startup companies

There are a number of initiatives that this initiative would interface with. For example, most ICT-related associations and firms have Web Sites with information on the specifics of their organisation. SAITIS, DTI (BRAIN) and other government departments have web sites with relevant information for the ICT sector. It will be important that this Portal does not duplicate information that already exists. It can provide a single window for the sector as well as adding value by providing the information that currently is not available and that is deemed to be essential.

Develop and deliver an awareness program directed at individuals, businesses, government at all levels and other organisations on the enabling impacts of ICTs.

The purpose of this initiative is to stimulate more effective use of ICTs across the economy as a whole. It will specifically address actions identified in Strategies 2.1.1 (Forge Cross Sectoral Linkages), 2.1.2 (Engage Communities) and 2.3.1 (Encourage Collaborative Development of Electronic Delivery of Government Services).

The ICT Sector Development Framework identified the need for increased awareness in a number of areas (e.g. ICT sector, ICT-enabled sectors, human resource development and innovation). ICT awareness was considered to be an essential pre-requisite to focusing resources and substantially stimulating growth of the ICT sector.

Particularly important was the acknowledgement that the greatest long-term potential for ICT in South Africa was its use as an enabler for overall economic development and that this in turn would accelerate development of the ICT sector. This initiative will initially focus on an awareness program aimed at increasing the demand for ICT with the expectation that such increased demand will be beneficial to the growth of the ICT sector in South Africa. Other aspects of ICT awareness will be included in future extensions of this initiative.

This awareness initiative will include:

• Developing and delivering a communications program to inform South Africans of emerging ICT applications, such as new concepts in education and health care delivery.
• Supporting the establishment of technology demonstration centres applicable to various sectors of the economy.
• Promoting the development of sector portals that enhance the sharing of sector information and knowledge as well as demonstrate the value of the technology.
• Developing awareness of the potential of ICTs to support socio-economic development in communities throughout South Africa, in order to increase the desire to make effective use of ICTs.
• Increasing awareness of the potential for increased use of ICTs in government to stimulate the ICT sector directly and act as a role model for other sectors of the economy.

DTI and an ICT Sector Association such as IISA

• DOC relative to community development as part of the Information Society agenda.
• DACST relative to the applications potential identified by Foresight.
• DPSA relative to ICT usage in government.
• Other government departments with specific sector responsibilities (e.g. agriculture, health) relative to increasing awareness in those sectors.
• IISA relative to working with industry associations in other sectors to increase awareness.

• Increased demand for ICT in South Africa.
• Growth in other sectors as a result of increased ICT investment.
• Economic upliftment in communities.
• More effective government through use of ICT.

Increased usage of ICT in absolute terms and as a percentage of GDP. A clear causal relationship will be established by an impact survey repeated on a yearly basis.

This initiative is closely related to a number of other SAITIS initiatives, including the development of an ICT portal, establishment of ICT innovation awards and support for information exchange within the sector, all of which have awareness components built into them.

Over a period of 2 years.

Facilitate the development, on a pilot basis, of an innovative ICT application in another sector of the economy.

To demonstrate the potential for ICT in another sector of the economy of strategic importance to South Africa, particularly with respect to partnering with the ICT sector. The intent is to showcase a successful innovative ICT application that can be used as a role model for other sectors. It will specifically address actions identified in Strategies 2.1.1 (Forge Cross-Sectoral Linkages), and 4.1.1 (Create ICT Innovation Awareness).

A key focus of the ICT Sector Development Framework is to stimulate ICT-enabled growth of business across the economy. In this regard three approaches were identified, namely:

• Stimulating current large users of ICT to increase use and develop new approaches to ICT adoption.
• Assist newly emerging industry sectors to expand and/or adopt ICT.
• Assist traditional industry sectors to expand and/or adopt ICT.

The concept behind this initiative is to identify a pilot application in a priority economic sector (based on DTI priority sectors) and support the development of such an application on a pilot basis. The intent is to demonstrate the benefits of ICT adoption to the audiences identified above and validate a model for broader support of ICT adoption in other sectors of the economy.

The process of selecting the application within the DTI priority sector will be guided by the Foresight process, which has already completed considerable work in identifying potential application fits for South Africa. The selected application will also need to demonstrate a high-level of enablement, not just cost reductions through reduced inputs.

The pilot will also be used to forge linkages within government with respect to development of the selected sector, as well as an appropriate industry association in order to demonstrate the value of such linkages and pilot the mechanisms for achieving them. In terms of the government linkages, these will depend on the selected sector and could involve:

• Linkages within DTI to integrate ICT into other sector development initiatives; or
• With other government departments, and other levels of government, to accelerate ICT adoption in areas of responsibility.

The sector to be supported will be selected by DTI and associated application criteria will be developed jointly by DTI and SAITIS. A first step will be to research the current level of ICT deployment in priority sectors within South Africa, as well as research examples of advanced ICT enablement within such sectors in other jurisdictions. Possible sectors include:

• Automotive (more specifically enabling secondary and tertiary suppliers in moving to e-commerce);
• Downstream Steel Products (nuts and bolts - enabling e-commerce); and
• Tourism

Individual businesses will be invited to submit proposals to develop an application that meets the criteria and will be supported in the development through this initiative. The end result of this initiative will be a fully functional, commercially viable, sustainable application delivering direct business benefit to the selected company.

Depending on the level of funding support available, the pilot initiative may be extended to include one organisation from each category listed above.

DTI

• Other government department(s) with specific sector responsibilities (e.g. agriculture, health) relative to developing the selected sector(s).
• IISA relative to working with industry association(s) in the selected sector(s).
• DACST relative to the application potential identified by Foresight.
• One, or more, private sector ICT partners relative to developing the application.
• The selected private sector organisation(s) relative to their contribution to developing the application(s).

• Increased demand for ICT in South Africa.
• Growth of the ICT sector.
• Growth in other sectors as a result of increased ICT investment.
• Potential development of one, or more, business applications with broad commercial potential.

Increased usage of ICT in absolute terms and as a percentage of GDP. A clear causal relationship will be established by an impact survey repeated on a yearly basis.

This initiative is closely related to a number of other SAITIS initiatives aimed at stimulating the demand for ICT in South Africa, including the establishment of ICT innovation awards.

Over a 12-18 month implementation period. Ongoing maintenance and development of the application will not be covered by this pilot.

Facilitate the development, on a pilot basis, of a Smart Community in South Africa.

The purpose of this initiative is to demonstrate the potential for ICT to support socio-economic development at the community level in South Africa. The intent is to develop and showcase a community that has successfully integrated ICT into its overall economic development plans and can demonstrate the broad application of ICT to community advantage. The selected community will be used as a role model for other communities. It will specifically address actions identified in Strategies 2.1.2 (Engage Communities), 2.2.1 (National Information Infrastructure Initiative), and Objective 2.4 (Bring Disadvantaged Communities into the Main Stream of ICT Development and Use)

A key focus of the ICT Sector Development Framework is to encourage deployment of ICT at the community level, particularly with respect to leveraging community strengths for socio-economic development.

The concept behind this initiative is to mobilise people in communities to develop community-based applications and underlying infrastructure as an integral part of their overall community development plans. Particular emphasis will be placed on encouraging SMMEs to devise innovative solutions for the African environment, with the potential to also address global markets.

Community-based ICT application and infrastructure development will be linked to national, provincial and community socio-economic development activities, including SDIs and IDZs as well as the broader Information Society agenda.

The community to be supported will be selected jointly by DTI and DOC through a competitive process. Individual communities will be invited to submit proposals to develop a smart community based on applications that meets the criteria and will be supported in their development through this initiative. The end result of this initiative will be a fully operational Smart Community delivering direct benefit to the selected community.

Depending on the level of funding support available, the pilot initiative may be extended to include one community from each Province.

DTI and DOC

• DTI relative to economic development support for the selected community(s).
• DOC relative to infrastructure development support for the selected community(s).
• DOE relative to providing the educational support infrastructure for the selected community(s).
• Provincial Government(s) relative to providing physical support infrastructure for the selected community(s).
• The selected community(ies) relative to providing local champions and mobilising community support.
• Telkom SA, or other telecom service providers serving the community, relative to supplying the required infrastructure and supporting the SMMEs involved in application development.
• Large corporations, if any, with a presence in the selected community relative to supporting the application development activities, particularly by SMMEs.
• Development organisations involved in community development (e.g. IDRC relative to community telecentre and Schoolnet activities; DBSA relative to funding community development initiatives, and the SDIs and IDZs).

• Increased demand for ICT in South Africa.
• Growth of the ICT sector.
• Social upliftment at the community level.
• Potential development of one, or more, community-based applications with broad commercial potential.

Increased usage of ICT in absolute terms and as a percentage of GDP. Increased ICT SMME activity in the community(ies). A clear causal relationship will be established by an impact survey repeated on a yearly basis.

This initiative is closely related to a number of other SAITIS initiatives aimed at stimulating the demand for ICT in South Africa, particularly those related to bringing disadvantaged communities into the mainstream of ICT development and use:

• DTI’s SDI/IDZ initiative.
• DOC’s Information Society Initiative, particularly the National Information Infrastructure component.
• IDRC Acacia initiative.
• Schoolnet South Africa.

Over a 2-year implementation period, including infrastructure development support.

This initiative involves participation in planning the accelerated deployment of national information infrastructure for South Africa.

The purpose of this initiative is to contribute an ICT sector point of view to planning the accelerated deployment of national information infrastructure for South Africa. This initiative responds directly to Strategy 2.2.1: National Information Infrastructure Initiative.

This initiative involves contributing to planning the accelerated deployment of the information infrastructure that South Africa will need for ICT applications and content development throughout the country. It focuses primarily on the underlying (telecommunications) infrastructure that is essential to modern, network-centric applications, but also includes the IT infrastructure (e.g. computers, software and related components) that will also be required.

During the discussion of issues by the Working Groups and Workshops leading up to the development of the ICT Sector Development Framework, it was very clear that the current information infrastructure is inadequate, particularly to meet anticipated ICT demand and to further stimulate such demand. Furthermore, while the Telecommunications Act provides short-term mechanisms for addressing the infrastructure challenges that the telecommunications industry faces, particularly the exclusivity to provide basic telecommunications services that has been granted to Telkom SA until 2002, Working Group and Workshop participants were of the opinion that substantial entrepreneurial activity to meet these challenges would be unleashed by the establishment of an open, competitive environment.

On an urgent basis, there is a need to address the following:

• Provision of information infrastructure on an equitable and affordable basis.
• Achieving widespread and rapid deployment of information infrastructure.
• Creating awareness of the opportunities for socio-economic development that the deployment of information infrastructure will enable (i.e. the applications and content that can be deployed on the infrastructure).

It is proposed that DOC and DTI work co-operatively to:

• Propose a national vision for information infrastructure development, based on a thorough understanding of the current infrastructure and the possibilities for future infrastructure.
• Develop the business case for accelerating information infrastructure deployment, drawing on the views of the ICT sector.
• Present the business case to government within six months outlining the course of action to be taken, including necessary policy, regulatory and legislative changes, costs, funding options, schedule, measures for applications and content development, etc.
• Develop the operational plan for building the information infrastructure and for stimulating applications and content development that have high socio-economic benefits.
• Determine the most appropriate institutional arrangements for building the information infrastructure, including the ongoing roles of DOC, DTI, other government departments and agencies, the private sector, and other stakeholder groups.

While the mandate to plan and eventually build the information infrastructure will come from the President’s Office, it is proposed that DOC and DTI will have prime responsibility to plan this initiative.

Building future information infrastructure is a massive undertaking for South Africa and will require contributions from many stakeholder groups. During this planning exercise, it is recommended that close working relationships be established with key stakeholders groups, including, for example, the ICT private sector, DPSA in respect of government as a user, bilateral and multilateral funding institutions, etc.

Building information infrastructure is an essential prerequisite to South Africa’s transformation to an information society and to building a vibrant ICT sector. Accelerated deployment of information infrastructure would not only have significant jobs creation impacts within the ICT sector, but would also have important stimulative impacts on ICT adoption throughout the country, particularly in disadvantaged communities. While the development of information infrastructure could be expected to occur over time in response to market forces, accelerated deployment would bring the socio-economic benefits of ICT adoption and an active ICT sector to South Africa much sooner. Commensurate with the implementation of an Information Society strategy and this ICT Sector Development Framework, it would also serve to position South Africa as a global contributor and competitor in ICT product, service, applications, and content development.

The primary indications of success of this planning exercise will be a plan accepted by stakeholders and ratified by the President’s Office within the set timeframe.

There are direct linkages to other components of the ICT Sector Development Framework as follows:

• Strategy 1.2.1: Create Dynamic Policies and Programs for the ICT sector which proposes a major examination of the policies affecting and the program support needs of South Africa’s ICT sector, which, among other areas, includes an examination of telecommunications policy to create a more open and competitive telecommunications sector, thus allowing for a wider range of options in building information infrastructure.
• Strategy 4.2.1: Develop an ICT R&D Strategy which would include R&D pertaining to the information infrastructure required to meet the evolving needs of South Africa.
• Strategy 4.1.2: Create ICT Innovation Listening Posts which is intended to establish mechanisms for identifying and disseminating information on international ICT innovation activities and could be focused on identifying innovative approaches to information infrastructure development in support of this initiative.

This initiative also relates directly to DOC’s Information Society strategy.

A six-month timeframe is proposed for this planning initiative.

Establish mechanisms whereby cooperation between government and industry can lead to stimulation of growth in the ICT sector through increased use of ICT in government.

The purpose of this initiative is to ensure that increased use of ICT in government at all levels is to the direct benefit of the South African ICT sector. This initiative will specifically address actions identified in Objective 2.3 (Stimulate ICT Adoption Through Government as a Model User).

It is widely recognised that government can have a major stimulative impact on ICT adoption, and development of the ICT sector, by becoming a model user of ICTs. Many governments around the world are now embarked on such initiatives with precisely this objective in mind. In such initiatives, these governments are increasingly partnering with the ICT private sector to build infrastructure, as well as develop and operate applications in a variety of ways designed to stimulate growth of the sector. Governments can also use their considerable ICT purchasing power to stimulate local ICT R&D, and product and service development.

A prerequisite to the types of actions contemplated by this strategy is to establish mechanisms whereby government and industry can cooperate in a spirit of mutual respect and trust. This initiative is intended to create such a cooperative environment.

In the first instance it will establish the mechanisms required for such cooperation by creating a regular dialogue between the ICT sector and senior officials in the various government departments engaged in ICT planning and procurement within the national government (e.g. the government Chief Information Officer committee currently being established).

The dialogues will allow the participants to represent their requirements/capabilities to each other in an informative and constructive manner. It is expected that the early discussions will lead to permanent mechanisms for ongoing cooperation. These mechanisms will be extended to other levels of government over time.

DPSA and IISA

• DPSA will coordinate the government agenda and representation relative to working with industry.
• IISA will coordinate the industry agenda and representation relative to working with government.

• Increased demand for ICT within the South African government, and the economy as a whole.
• Increased benefit of the government use of ICT to the South African ICT sector.
• More effective government through the use of ICT.

ICT usage within government.

Percentage of ICT usage supplied by the South African ICT sector

This initiative is closely related to a number of other SAITIS initiatives, in particular the ICT Awareness Program.

The baseline studies indicated that there was insufficient detailed information on the labour market in the ICT sector and ICT-enabled sectors to make decisions related to human resource development and planning. Individuals, employers, education and training providers, and other stakeholders require help to cope with the growing complexity and increasing pace of change in labour markets. By taking steps to meet their needs, the performance of the labour markets and the economy can be improved.

The objective of this initiative would be to collect information on the current ICT labour market to assist in the development of a long-term Human Resources Development Plan. This initiative is an essential first step in implementing Objective 3.1: Develop a Comprehensive Understanding of the South African ICT Labour Market to Support Effective ICT HR Development.

It is important to monitor labour markets and produce accurate, timely information because individuals and organisations make important decisions, often with significant cost implications, based on perceptions about work and employment trends, job vacancies, compensation levels and related factors. When they are effective, labour market information systems can continuously generate the information needed to link government policies, in areas such as taxation, social payments insurance and immigration to actual conditions in the labour market. Monitoring systems can deliver important signals to education and training institutions and help guide their decisions about enrolments, curriculum development, faculty recruitment and investment in physical infrastructures.

These systems also allow employers to adopt a more strategic approach to recruitment, retention, training and other human resource management challenges. Finally, accurate information about labour markets is vital for individuals, students and workers, who must plan their own learning and make realistic career choices.

There is a sense that current occupational classification systems are too slow in capturing and describing new occupations, many of which are connected to emerging technologies in newer sectors. Even with occupational titles that remain constant over time, the duties and skills required of individuals in these occupations are likely to be changing continuously. The statistics on these occupations may not capture very important skill changes unless the skill sets that are integral to various occupations are regularly monitored and updated.

The challenge facing South Africa’s monitoring agencies is to improve data collection by incorporating uniform approaches to identifying and measuring the individual skill levels demanded in different occupations. This is particularly the case for non-technical skills such as management, and essential skill sets that are increasingly important to employers.

To maintain a uniform and coherent approach to labour market monitoring, central government, provincial and private sector stakeholders – including industry associations and sector councils – must approach the collection, analysis, and use of data with a stronger sense of common purpose. The key to this will be the development and sharing of common definitions, and of databases that can be integrated. In this regard, the ISETT SETA’s work in developing IT standards and qualifications will make a very significant contribution.

The intent of this initiative is to support individuals, employers, education and training providers, and other stakeholders who require current information on the ICT labour market to help cope with the growing complexity and increasing pace of the ICT sector. By taking steps to audit the existing skills, and current and future needs of the market, a fundamental basis will be established to meet these needs. This audit will also form the basis to measure the performance and impact of this labour market on the economy and identify where improvements are required on an ongoing basis.

The following activities would be undertaken:

• Develop a consensus on the skills definitions to be used in measuring labour market statistics (through reference to OECD and other other standards currently used - e.g. OSPM)
• Develop Terms of Reference in conjunction with the Indicators Working Group
• Identify and document the skills required in science and technology occupations to assist in the redressing of unavailable skills;
• Prepare an RFP and contract with a firm to collect labour market information
• Prepare and publish report
• Encourage stakeholders to adopt standard definitions, measurements and terminology in relation to skills, for successful monitoring of gaps and over supply in employment levels.

DTI

• DoL
• Statistics SA
• ISETT SETA
• SHRC

This initiative will result in more complete information and allow the ICT sector and government departments to make better use of the data collected. Labour market variables are complex, and South Africa gathers a great deal of data. However, the remaining and perhaps more difficult challenge is to interpret these data and package them in ways that best support decisions and actions by individuals, educators, employers, governments and others in relation to the ICT labour market.

This initiative will help enable a comprehensive understanding of ICT labour market statistics, to develop appropriate and effective skills in and for the ICT sector, particularly as a means to provide accurate, timely information on trends and conditions in the labour market.

ICT Labour Market indicators, consistent with the OECD definition

• DoL
• DoE
• DTI

Could be completed within six months. However, the timeframe would depend upon the degree of statistical validity required by DTI (and Statistics SA) for the labour market statistics.

The initiative could be conducted as part of graduate training on targeted research on labour market issues to fully comprehend the South African labour market.

This initiative is designed to identify initiatives that selected other countries have undertaken to upgrade the skills of retrenched workers to enable them to participate in the knowledge economy, and provide an analysis of the relevance of these initiatives to South Africa.

The purpose of this key initiative is to identify relevant programs and initiatives that will assist retrenched workers to be re-skilled for the ICT or ICT-enabled sectors, or to assist them to become economically productive. Some that are currently being used include:

• Special training programs to help retrenched workers learn basic ICT skills.
• Cost-sharing (government, business and labour) incentives to train unemployable workers in ICT related skills.
• Cost-sharing incentives to enable employers to hire and train retrenched workers.
• Programs to assist retrenched workers to start their own businesses.

This key initiative will help address the following strategy(ies)/action(s):

• 3.3.4: Upgrade the Skills of Retrenched Workers to Enable them to Participate in the Knowledge Economy.
• 2.4.1-2: Make learning opportunities more broadly available to workplace and employment areas.
• 2.4.2: Improve Opportunities for Disadvantaged Individuals

• 2.4.2-3: Put in place support programs to encourage business to hire disadvantaged individuals
• 2.4.2-4: Create public-private re-skilling support programs to help retrain workers who are becoming disadvantaged in industries that are implementing technology, thereby presenting new employment opportunities in the ICT arena
• 2.4.2-5: Make public-private financing available for retrenched workers, who are looking at new careers in the ICT arena, to start up their own businesses.
• 2.4.2-6: Encourage MNEs to provide ICT training opportunities through the provision of training incentives, to assist disadvantaged individuals.
• 2.4.2-7: Encourage corporate social investment as well as other incentive programs to promote ICT skilling and re-skilling opportunities.

• 3.3.3: Upgrade the Skills of the Existing Workforce

• 3.3.3-4: Help disadvantaged communities address their special learning and skills development needs, particularly with respect to the knowledge-intensive areas of the economy.

The introduction of ICT into many sectors of developed economies has resulted in significant economic activity and has fuelled the growth of these economies. However, at the same time there has been a dislocation of labour resources stemming in part from the introduction of ICT and the reduced need for more traditional skills and abilities. These workers do not have the necessary skills to retain their employment or in many cases find suitable alternative employment without the assistance of the public and private sectors. These workers require special attention, since they represent human resource assets that will be casualties in the move to a knowledge-based economy. Many of these workers need special programs to help them make the transition from their current skill sets to a skill set that is employable in the ICT Sector, the ICT-enabled sectors or will enable them to be economically productive assets. These workers support the families whose children become the potential human resources for the knowledge economy. Without special attention, South Africa will lose these assets and will damage the future potential of developing adequate supplies of skilled ICT workers.

The following are the major activities that would be undertaken to implement this initiative:

• Identify those countries that have developed and implemented programs or initiatives to assist retrenched workers with a particular emphasis on assisting workers displaced as a result of ICT implementation and use (if possible).
• Obtain details of the programs that these countries have implemented and the results that they have obtained in implementing the programs/initiatives (i.e. determine the effectiveness of the program/initiative).
• Determine the current programs/initiatives that South Africa has in place to help retrenched workers and determine their effectiveness. (It is not contemplated to undertake a rigorous evaluation of the effectiveness of the program; rather a review of the published reports and available data).
• Prepare a preliminary analysis of the relevance and applicability of these programs to either support existing programs or to implement new programs. This analysis would include recommendations and options for implementation.
• Submit the preliminary analysis and recommendations to stakeholders for comment and further direction.

SAITIS Implementation Office

• DTI (Center for Small Business Promotion)
• BITF
• NTSIKA
• Corporate SMME Development Forum

This initiative will provide the information, preliminary analysis and a set of recommendations to enable the stakeholders to determine the specific initiatives and programs that would be most effective in helping retrenched workers obtain the skills and assistance to participate in the economy productively.

• Number of retrenched workers re-employed
• Number of retrenched workers re-employed in the ICT Sector
• Number of retrenched workers re-employed in the ICT-enabled Sector
• Number of retrenched workers becoming successful entrepreneurs.

• Retrenched workers
• ICT and ICT-enabled companies

• Impact Analysis of Current Initiatives
• Labour Market Statistics

It is anticipated that this initiative could be started immediately and be running within three to six months.

This initiative is designed to create a program that will help graduates from tertiary education institutions, with non ICT-related degrees (because graduates from ICT-related degrees have less difficulty in finding employment) but some ICT skills, and who are having difficulty finding employment, to find employment in the ICT sector or ICT jobs in ICT-enabled sectors.

The purpose of this initiative is to provide a means for "unemployable" graduates to find employment by providing work experience and improved skill sets so that these graduates can find employment in the ICT sector or ICT-enabled sectors.

"Unemployable" is defined as a graduate from a course of study and who is unable to find employment in their chosen field (e.g. political science, sociology). This initiative provides these graduates with low-cost approach to gain work experience and additional skills that makes these graduates more employable.

The specific strategies addressed by the initiative include:

• Strategy 3.3.1: Develop the Skills for a Knowledge-Based Economy
• Strategy 3.3.3: Upgrade the Skills of the Existing Work Force
• Strategy 3.2.3: Stimulate Growth among Small Knowledge-Intensive Firms

In many cases students enter university and obtain a degree based on limited knowledge of the future market or demand for those educational skills. The courses of study are based on an estimate of the future job market that may or may not exist. In a world where the education and skills demands are changing rapidly, it is almost impossible for students to predict the future. As a result, many graduates face the prospect of being "unemployable" even though they have received a university degree. They have a number of choices, including returning to school, emigrating with the hopes of better job prospects abroad, or entering the workforce unhappily with little or no employable skills at low wages.

These graduates have many skills, are educated and bright; however, the jobs for which they were educated no longer exist or are in very short supply. Many countries are beginning to create programs that enlist the co-operation of government and business to provide on-the-job training in specific fields where there are scarce skill sets, including ICT. These programs are structured so that the cost of hiring and training these graduates is shared with employers (e.g. 50/50), there are measures to ensure that they are employable and each placement has a limited duration (e.g. one year). In addition, one of the terms of the agreement between business and government is that the participating business agrees to assist the graduate in finding permanent employment at the end of the fixed term.

The activities that would be undertaken to create this initiative would include:

• Identify particular ICT businesses that are willing to participate in the early stages of the program, using appropriate criteria.
• Provide information to education institutions on those businesses that are willing to participate so that graduates are aware of this possibility and can apply for this assistance in finding employment.
• Create an awareness of this program in the ICT sector, ICT-enabled sectors and education institutions.
• Assess the effectiveness of the initiative, after one year and make appropriate changes.

DoL and DTI

• DoE
• Sector sponsors
• IISA
• ISETT SETA
• Education institutions

This initiative will provide industry with a pool of potential employees from the pool of previously unemployable graduates. It will also provide the graduates with improved future potential job prospects.

• Number of graduates in the program
• Number of graduates with permanent jobs
• Retention, advancement experience

• Graduates
• Sector organisations

Assessment of the impact of current initiatives on ICT Strategy and actions

This initiative is designed to assist students at all levels develop the necessary ICT work skills they will need to enter the work force and move to more senior level positions.

The purpose of this initiative is to provide a means for students from secondary and tertiary education institutions to gain work experience in the ICT sector. This would be done by providing them with work-term experience that allows them to translate the ICT knowledge gained from their courses in school into practical work-term experience (e.g. similar to the coop program or similar programs at the community colleges). This initiative will help develop ICT literacy and ICT skills across the student population and teachers/lecturers of South Africa at the primary, secondary and tertiary levels so that students can take full advantage of the information age.

This initiative impacts the delivery of the following strategies:

• Strategy 3.3.1: Develop the Skills for a Knowledge-Based Economy
• Strategy 3.3.2: Improve the Capacity of Tertiary Institutions

Employers confirm the view that the quality of the technical skills and knowledge of university and college graduates is very high. However, new recruits lack the essential skills needed even for entry-level, let alone more senior positions. This is a clear but difficult challenge to South African schools. Revising curricula, especially with limited resources, may seem daunting. However, this is necessary.

Young people who learn about work and are exposed to different workplaces through their school years fare better when they join the paid work force as employees and as entrepreneurs. They acquire a sense of what they are good at, what they like doing, and about the technical and other skills they require to indulge their talents and preferences, while supporting themselves and their families. By introducing children and youth to the world of work and showing them how seemingly dry academic or textbook concepts have practical workplace applications, motivates them to stay in school and helps them to make more informed career choices.

The following activities are proposed to be undertaken in order to implement this initiative:

• Identify selected institutions that will participate in the early stages of the program, using appropriate criteria.
• Assist educators in the selected institutions in connecting the curriculum they teach in the classroom with how that curriculum is used in the workplace.
• With the co-operation and assistance of unions, introduce students to particular skills as 150 to 200 hours of work-based experience to build bridges between education and the world of work, develop positive work experience and enhance the employability of the participants.
• Develop a concerted strategy based on the experience of the early participants in the program for sharing best practices and for progressively incorporating "work studies" and experience-with-work programs as core elements of elementary and secondary curricula.
• Based on the experience of the participating organisations and the participating students, suggest new approaches to teacher education, certification and professional development to provide teachers with work and skills issues and the techniques for tapping a wide range of sources for labour market and career information.

• DTI

• DoL
• DoE
• CHE
• Sector sponsors
• Unions

This type of initiative will provide a better matching of skills required by the ICT sector and those taught by the education system. At the same time, students and teachers will have a broader education and students will also be better prepared for their work life.

Percentage of students entering the co-operative programs and finding employment (short-term measure).

Job retention and advancement of the co-operative program participants (long-term measure).

Teachers, students and the ICT sector.

None – can begin now with funding.

Existing programs need to be identified and their impact and synergy assessed.

This initiative is designed to provide the necessary skills to Black ICT SMMEs to permit them to compete for and win work.

The purpose of this initiative is to directly assist Black ICT SMMEs to effectively compete for government ICT work by providing development assistance to form consortiums, prepare bids and manage the projects.

This initiative will help address the following strategies:

• Strategy 1.1.3: Foster ICT Sector Linkages (Supplier Development Program)
• Strategy 2.3.2: Direct Strategic Use of Government Procurement
• Strategy 3.2.3: Stimulate Growth among Small Knowledge-Intensive Firms
• Strategy 3.3.1: Develop the Skills for a Knowledge-Based Economy
• Strategy 3.3.3: Upgrade the Skills of the Existing Work Force

This initiative contemplates providing direct assistance to Black ICT SMMEs to bid on and win work, and manage the project once it is awarded. The Implementation Office (or contracted resources) would provide direct assistance to black ICT SMMEs by assisting them to form consortiums, and prepare the bid. This would require working with the appropriate association to identify opportunities, the skills that are required and the firms that would be able to supply the skills required for the tender. The Implementation Office in association with the black business association would contact the firms to determine their level of interest and would assist in forming the consortium. The Implementation Office would then provide "on-the-job" development and training assistance for the firms to prepare the bid. Once the contract was awarded, the Implementation Office would then provide project management and business management training to consortium members and advice on an as-required basis.

In addition to the direct assistance to the consortium, the Implementation Office would, in conjunction with the consortium representatives, provide a workshop for all association members on this experience and the lessons learned.

In the longer term, there may be a possibility to link HDIs with ICT SMMEs in a learnership program whereby the HDI builds work term credits into the curriculum The consortium could then recruit co-op students to work on the project, thereby providing them with a low-cost, innovative technical resource.

The following are the major activities that would be undertaken to implement this initiative:

• Develop formal work plan.
• Contact black SMME associations to discuss the concept and elicit their co-operation.
• Identify potential bidding opportunities and ICT SMMEs that are able to respond to the tender.
• Assemble the consortium and help the consortium develop the bid.
• Deliver project management skills development to consortium members.
• Develop and deliver workshop on lessons learned and experience.
• Develop ongoing assistance plan with association members.

• SAITIS Implementation Office

• DTI (Center for Small Business Promotions)
• BITF
• NTSIKA
• Corporate SMME Development Forum

This initiative will provide the skills necessary for black ICT SMMEs to win work, thus providing the capital to grow.

• Number of contracts won
• Number of consortiums formed and bidding on work.

• Black ICT SMMEs
• Students and graduates

• Co-operative program
• Youth internship program

This initiative can be started immediately and be running within three to six months.

This initiative is designed to assist disadvantaged organisations in managing and reporting on the results of resources donated by Non Governmental Organisations, ICT companies and International Financial Institutions for ICT-related initiatives.

The purpose of this initiative is to provide disadvantaged organisations with capacity development training, advice and assistance to manage and report on the results of the resources and funds provided by donors.

The specific strategy(ies)/action(s) addressed by this initiative include:

• Improve the capacity of tertiary institutions
• Improve opportunities for disadvantaged individuals

Many donor agencies and multinational enterprises want to contribute to the improvement of disadvantaged organisations. However, many disadvantaged organisations do not have the capacity to manage the resources donated and cannot report on the results of these resources in a way that the donors can justify their contribution. This lack of capacity is the result of inexperience in dealing with donor agencies, understanding their requirements (e.g. Results Based Measurement) and experience in reporting in the way that allows the donor to justify their funding.

This initiative would begin to provide the training, capacity development, advice and assistance to these disadvantaged organisations so that they can gain the experience from experts and thus develop their own capacity to manage donor resources. This may also be extended to assisting the disadvantaged organisations in preparing appropriate requests for funding assistance. The activities comprising this initiative are:

• Identify disadvantaged organisations to participate in this initiative, based on appropriate criteria.
• Provide basic training in relevant skills (e.g. financial management, project management, Results Based Measurement)
• Provide "on-the-job" advice and assistance to obtain funding and to manage and report on funding received.
• Provide workshops and other training seminars to permit a broader reach of the experience.

• DoE

• DTI
• DoF

This initiative will increase the capacity of disadvantaged organisations to manage resources received and report on the results achieved to the donor agencies. This will also permit them to attract more funding to improve the capacity of disadvantaged organisations to deliver high-quality education.

Number and amount of resources received.

Disadvantaged organisations

Students

To be determined.

Establish an awards program that recognises the successes of ICT innovators and entrepreneurs.

The purpose of this initiative is to encourage ICT innovation by recognising innovation achievements, particularly with regards to innovative applications of ICT in other sectors. It will specifically address actions identified in Strategy 4.1.1: Create ICT Innovation Awareness.

The concept of an innovation awards program was developed as a means of identifying, encouraging and stimulating innovative usage of IT across selected industrial sectors. This is in keeping with the overall goal of the ICT Sector Development Framework to contribute to sustainable economic growth, social upliftment and empowerment through an emphasis on the ability of ICT to enable other sectors of the economy while, in turn, stimulating the supply side of the sector.

Key ICT innovation opportunities were established by Foresight and the intent is to build on the Foresight initiative by bridging the longer-term directions of Foresight to the more immediate realities of the ICT sector.

The approach is to initiate an awards program that recognises key innovations in the application of ICTs and fund early stages of commercialisation for selected projects. These projects will be identified through an open process and evaluated by a recognised panel of experts. They must already have reached the stage of commercial readiness (this is not an R&D support mechanism).

The award winners must have a viable commercialisation plan and the award money must be spent on commercialisation. Award winners must also demonstrate the human resources potential for the applications both in terms of jobs and skills development.

IISA, DACST and DTI

• IISA relative to administering the awards process.
• DACST relative to sponsoring the awards process.
• DTI relative to sponsoring the awards process.

• Increased awareness of the potential for ICT innovation in South Africa.
• Commercialisation of a number of innovative applications.

Number of supported applications achieving commercial success.

This initiative is closely related to a number of other SAITIS initiatives, particularly those related to stimulating ICT Usage.

DACST Innovation Fund.

It is proposed to establish within CSIR a listening post that would gather ICT innovation intelligence from around the world and disseminate it to firms and R&D organisations in South Africa. A priority for this unit would to gather intelligence related to the projects proposed in this ICT implementation plan.

ICT is developing at a phenomenal pace around the world. The purpose of this initiative is to keep abreast of global ICT development and to inform firms and R&D organisations in South Africa of these developments so that they can be incorporated in their business plans. This initiative relates to Strategy 4.1.2: Create ICT Innovation Listening Posts.

Technology has become the new international currency. Governments are setting in place intelligence units to gather, analyse and disseminate technological innovation information from around the world so that firms and R&D organisations within their jurisdictions can have an advantage over their competitors.

There is a particular focus on ICT because of the rapid pace at which the sector is developing and the magnitude of the opportunities involved.

South Africa needs to keep abreast of international developments in the ICT sector if it is to capture key niche areas and develop internationally competitive industries. The activities needed to implement this initiative are:

• Establish a small unit within CSIR whose mandate would be to act as a clearinghouse for information on international ICT activities.
• Task CSIR researchers and those of other government research establishments to report international ICT intelligence to the CSIR intelligence unit. The gathering of ICT intelligence should become part of the job description of government researchers. International trip reports should be submitted to the CSIR intelligence unit in a standardised format.
• Task the commercial/technology sections of South African Embassies and High Commissions to gather ICT intelligence and give the CSIR intelligence unit the authority to make specific requests for information especially as related to the projects presented in this implementation strategy.
• Make it a condition of obtaining a university research grant that university researchers report ICT innovation information to the CSIR intelligence unit.
• Develop a dissemination program for the ICT intelligence (e.g. newsletters, meetings with firms, alliances with industry associations, Web site, etc.) to be delivered by the CSIR intelligence unit.
• Organisations with Prime Responsibilities
• CSIR;
• Other government research establishments;
• University research granting councils; and
• Ministry of Foreign Affairs.

• Other government research establishments need to partner with CSIR.
• IISA should form an alliance with CSIR to be the first line of information dissemination to their members.

• A better informed South African ICT sector.
• More internationally competitive firms.
• New technological capabilities developed.
• More skilled jobs.

• Number of items disseminated.
• Satisfaction survey by ICT industry.

The initial phase of this project should be two years, after which time an evaluation should be undertaken to determine the future of the activity.

It is proposed to expand the DACST Innovation Fund to give it a dimension that specifically focuses on supporting the development of new ICT products, services and applications.

The DACST Innovation Fund is a general fund that supports technology development broadly. Given the potential offered by ICT, the fund should have a particular ICT dimension with its own funds. This element is found in Strategy 4.1.3: Forge Linkages with Other Innovation Initiatives.

Most industrialised countries fund ICT activities in their own right. A particular focus gives an indication of the importance given to the sector. Also it facilitates international comparisons and accountability. Given the need for rapid development of ICT products, services and applications to meet the growth objectives of the ICT Sector Development Framework, a proactive approach to administration of the ICT funds is proposed. Specifically, it is proposed that a competitive process be adopted to solicit proposals in key ICT areas for which designated amounts of money have been allocated and to award funds based on the merits of the proposals received.

The activities to be undertaken to implement this initiative are:

• Create a separate administrative structure within the DACST Innovation Fund to provide an ICT focus.
• Provide separate funding to support ICT activities.
• Design and implement the proactive approach to administration of program funds.

DACST

DTI and DOC with regard to identification/evaluation of ICT initiatives to be supported.

• A focus for the ICT community.
• An increased level of funding stimulating more activities.
• A clear focus for international comparisons and accountability.

• Satisfaction survey of the ICT community regarding this approach.
• International comparisons of performance.
• New intellectual property resulting from the program.
• New product lines in existing firms
• New firms created.
• New skilled jobs created.

Within the SAITIS project, this initiative is closely related to the Innovation Awards initiative.

DACST Innovation Fund.

Over a period of 5 years.

This initiative will develop and implement a proactive public-private Networks of Centres of Excellence program in ICT innovation, building upon existing Centres and innovation programs where appropriate.

The purpose of this initiative is to help develop a strong culture of ICT innovation and entrepreneurship throughout South Africa. Furthermore, a Centres of Excellence program, engaging both the private and public sectors, is intended to stimulate increased collaboration between organisations engaged in ICT innovation within South Africa, as well as with their international counterparts. To this end, strengthened linkages are a central theme of this initiative. The initiative specifically addresses Strategy 4.2.3: Harness R&D Capabilities through ICT Centres of Excellence.

Centres of Excellence have been successful vehicles for breaking down barriers between individual organisations engaged in pre-competitive research in particular areas and encouraging collaboration between such organisations. This initiative will seek to harness ICT R&D activities through a program of centres of excellence focused on specific areas of ICT innovation.

It is proposed that DTI and the National Research Foundation, using the Technology and Human Resources for Industry Programme (THRIP) as a base, develop a proactive public-private Networks of Centres of Excellence in ICT innovation. Such an approach would involve setting research priorities on an annual basis, establishing an annual targeted funding component of THRIP and calling for competitive research proposals from South African organisations. As a start, research priorities could be set in relation to the focus area on "Information and Communication Technology (ICT) and the Information Society in South Africa" already established by the National Research Foundation. Current research issues are: Technologies for the South African information society; Integration and application of ICT in commerce, industry and government; and ICT and Information for Social Development. In addition, the ICT innovation opportunities delineated by the National Research and Foresight Project could be used to establish the annual research priorities.

It is anticipated that a wide range of Centres of Excellence will result from this program. An excellent model is the Telkom Centre of Excellence program. This program brings together Telkom, another communications company and two or more tertiary education institutions with a communications research focus.

DTI and the National Research Foundation

• DACST relative to the National Research and Foresight Project.
• DOC relative to Information Society opportunities for ICT innovation.

• Increased ICT innovation activity throughout South Africa.
• Increased company formation and growth.
• Increased employment.

• Number of new products, services and applications developed for the South African and international markets.
• Number of new SMMEs created and/or benefiting from the program.
• Number of R&D and spin-off jobs created as a result of the program.

• The Technology and Human Resources for Industry Programme
• Support Programme for Industrial Innovation
• Partnership in Industrial Innovation

For an initial period of five years. At the end of five years the program should be reviewed and renewed if its objectives are being met.

Collect information pertaining to key indicators required to measure the progress of ICT sector development in South Africa.

The purpose of this initiative is to produce statistical information about the ICT sector in South Africa in support of the indicators outlined in the SAITIS strategy. This initiative is intended to confirm the relevance of these indicators, the method(s) of data collection and the costs involved in collecting this information on an ongoing basis. It will specifically address the indicators identified in Goals 1 (ICT Sector Development) and 2 (ICT Usage Stimulation).

One of the main obstacles in developing the ICT Sector Development Framework has been the lack of accurate and reliable information about the ICT sector in South Africa. In order to measure progress towards achieving the goals of the ICT Sector Development Framework it is necessary to produce relevant statistical information about the ICT sector in South Africa in a timely manner. This pilot is intended to accomplish this by conducting a limited scale survey to collect relevant information about selected indicators.

Statistics South Africa is ideally positioned to produce the required statistics but its priorities are currently on producing information to support its reporting requirements regarding national accounts. Experience elsewhere has shown that focused initiatives are required in order to kick-start the collection of information that does not directly relate to national accounts.

This initiative is intended to lay the groundwork for on-going collaboration of policy makers, corporate decision makers and statisticians to produce the required statistics. Such statistics will be produced in a manner that directly supports the needs of the ICT sector and, at the same time, are internationally comparable.

Key indicators for measuring the ICT sector will include:

• ICT sector revenues
• ICT sector employment
• ICT sector contribution to GDP
• ICT sector exports
• ICT sector R&D expenditures
• Number of ICT SMMEs

Key indicators for measuring ICT usage will include:

• ICT investment as a percentage of GDP
• Overall ICT investment in the economy as a whole

Statistics South Africa and the Implementation Office.

• DTI and DOC relative to government information requirements.
• DOL relative to requirements for labour market information.
• Private sector research organisations (e.g. BMI) relative to business information requirements.

• Increased capacity of Statistics South Africa to produce relevant and timely information about the ICT sector in South Africa.
• Improved ICT sector usage, innovation and labour market information.
• Increased effectiveness of ICT policy and decision makers.

Improved accuracy, relevance and timeliness of ICT statistical information.

This initiative cuts across all SAITIS initiatives, but is particularly pertinent to the collection of ICT labour market statistics. This is a separate initiative at this time due to its high priority but will likely be merged with the overall measurement initiative over time.