South African ICT Sector Development Framework

Chapter 5
Stimulate ICT Usage

Goal 2: Increase: Increase the Use of ICT as an Enabler for Socio-Economic Development, with Equity

The intent of Goal 2 is to stimulate ICT-enabled growth of business across the economy. In this regard, the adoption of ICTs in enabled sectors will help to increase overall employment through the use of ICTs, not just increased numbers of ICT jobs at the expense of jobs in other areas of the economy. In this regard the goal is to increase overall employment through the use of ICT, not just increased numbers of ICT jobs at the expense of jobs in other sectors of the economy. The intent is also to address equity issues with regard to gender, disadvantaged groups and those in rural and under-serviced communities.

This goal emanates from the Project Design Document, and is directed at a strong emphasis on ICTs as an enabler of socio-economic development. Specifically, it is expected that the strategy will contribute to building information communities, lead to increased ICT-enabled employment and to increased use of ICTs as enabler for social development with equity.

This goal has the important characteristic of improving competitiveness and stimulating job and wealth creation across other sectors of the economy. It would also result in ICT Sector spin-off development. In many instances, ICTs will be a transparent element of new ICT-enabled jobs, thereby creating employment for those not skilled in IT. The early-stage adoption of ICTs in organisations can result in decreased employment because of the labour-displacing consequences of the efficiencies enabled by ICT adoption. The promise of ICT applications development is, however, the creation of entirely new employment. New concepts and new paradigms can arise from the innovative application of the technology, particularly from the convergence of networking and computing. The primary focus of this component of the strategy is thus on this latter aspect of ICT adoption.

Conceptually there could be three approaches to identifying target applications development areas:

• Stimulating current large users of ICT to increase use and develop new approaches to ICT adoption (e.g. National, Provincial and Local governments, health and educational institutions, communications and other utilities, finance and insurance). Government would have a major role as an early adopter of ICT applications to improve government service delivery, lower the cost and improve the efficiency of government operations, e.g. various aspects of "Government Online". Also, the financial industry could play an important role through the early adoption of electronic commerce.
• Assist newly emerging industry sectors to expand and/or adopt ICT (e.g. Home Based/Micro Industries, Tourism, Environmental Industries, Cultural Industries, etc.).
• Assist traditional industry sectors to expand and/or adopt ICT (Mining, Agriculture, Fisheries, Transportation, etc.).

The concept behind this goal is the transformation of South Africa to participate actively in the new knowledge-based economy.

Figure 5.1: The Enabled View

In terms of the this enabled view, presented in Figure 5.1, the strategies can be characterised as those strategies:

• designed to interact with other sectors of the economy in order to stimulate the deployment of ICT; and
• designed to work with communities, on a cross-sectoral basis to stimulate community development through the use of ICT.

The four objectives supporting this goal are presented in Figure 5.2 below.

Figure .2: Objectives for Stimulating ICT Usage

Each of these objectives is described below, and contains the strategies and associated actions needed to achieve the objectives.

Objective 2.1: Stimulate ICT Adoption Across all Socio-Economic SectorsThrough Partnerships

The purpose of this objective is to grow ICT market demand through partnerships between the ICT Sector and all socio-economic sectors, not only in the short term, but also in the medium and long term, within the ICT market through increasing awareness and encouraging government to raise the profile of ICT.

It is recognised that users in South Africa need to become more aware of and familiar with the use and benefit of ICT to themselves, whether this is in the work environment or at home. This familiarisation will display the benefits of, for example, improving competitiveness within the work environment, and employing ICT for educational benefit at home and improving . Other benefits include health care delivery.

Thus, an underlying theme of the strategies for this objective are those of increasing awareness and encouraging government to raise the profile of ICT.

Strategy 2.1.1: Forge Cross-Sectoral Linkages

One means to promote ICT Sector growth, and an important means, is to grow demand for ICT products and services through establishing cross-sectoral linkages. This strategy deals with the establishment of these linkages between the ICT Sector and other sectors of the economy, the purpose being to stimulate greater awareness and adoption of ICT across the non-ICT Sectors of the economy, and stimulate the development of sectoral ICT applications.

Particular areas of focus will include forging linkages with current large users of ICT, newly emerging industry sectors, and traditional industry sectors.

This strategy deals with the establishment of linkages between the ICT sector and other sectors of the economy to stimulate sectoral ICT applications. Needs more wording on what and why.

The actions required to support this strategy are summarised in Figure 5.3 overleaf.

Figure 5.3: The Actions that relate to Forge Forging Cross-Sectoral Linkages

 Action(s):

• Develop an awareness program directed to at individuals, businesses, government at all levels and other organisations on the enabling impacts of ICTs, to stimulate more effective use of ICTs within these organisations, including:

• A communications program to inform South Africans of emerging ICT applications, such as new concepts in education and health care delivery.
• The establishment of technology demonstrations centres applicable to various sectors of the economy.
• The development of sector portals that promote the sharing of sector information and knowledge as well as demonstrate the value of the technology.

• Establish mechanisms within government to incorporate consideration of ICTs into policies, programs, plans and priorities of other sectors of the economy:

• Within the DTI, to integrate ICTs into departmental sector development initiatives.
• With other government departments and other levels of government, to accelerate ICT adoption in areas of responsibility.

• Foster direct ICT sector-to-sector linkages:

• Support the development of direct linkages between ICT Sector associations and associations in other sectors to incorporate ICTs into the activities of firms and organisations in the sector.
• Facilitate co-operation to develop major ICT applications (e.g. between the ICT Sector and the Financial Services sector in E-Business).

Strategy 2.1.2: Engage Communities

While the previous strategy calls for engaging the broad South African industry, Tthis strategy deals with the deployment of ICTs at the community level, to leverage community strengths for socio-economic development. This strategy seeks to dramatically increase ICT awareness, access and usage at the community level, in order to stimulate greater demand for ICT products and services. Support for current community-level socio-economic development initiatives (e.g. SDIs) is of great importance

The actions required to support this strategy are summarised in Figure 5.4 overleaf.

Figure 5.4: The Actions that relate to Engage Communities

Action(s):

• Develop 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.
• Mobilise people in communities to develop community-based ICT applications and underlying infrastructure (e.g. the development of "Smart Communities"). This will encourage SMMEs to devise innovative solutions for the African scenario, with the potential to also address the global market.
• Support the development of the infrastructure required by communities, including the ICT infrastructure,and also the physical infrastructure such as buildings, electricity, etc. (leverage the telecentres thrust to the extent possible). This will encourage increased access to ICTs by these communities.
• Establish program support for the development of ICT applications and infrastructure. This will encourage SMMEs to develop and grow, through the use and development of ICT applications and infrastructure.
• Link community-based ICT applications and infrastructure development into national, provincial and regional socio-economic development activities (e.g. SDIs, IDZs); develop a co-ordinated approaches across jurisdictions. This will also allow communities to tap into global opportunities.
• Establish partnerships between local and national/provincial government departments and agencies, non-governmental organisations, firms, associations, etc. to foster ICT applications and infrastructure development, and share the costs thereof.

Objective 2.2: Make a Modern Information Infrastructure Available to all South Africans

This strategy involves accelerating the development of the information infrastructure that South Africa will need to stimulate ICT applications development throughout the country. It focuses primarily on the underlying (telecoms) 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 strategy, it was made very clear that the current information infrastructure is inadequate, particularly to meet anticipated ICT demand and 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 2002/2003,., 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.

Strategy 2.2.1: National Information Infrastructure Initiative

One of the major issues emanating from the Working Groups and Workshops was improving access, in an affordable manner, to the wider South African population. An national information infrastructure initiative of this nature would propose a national vision for information infrastructure development, tentatively, for example, to achieve widespread national access to broadband infrastructure. Implementation of this initiative would not only have significant jobs creation impacts within the ICT Sector, but it would also have important stimulative impacts on ICT adoption throughout the country, particularly in communities.

The actions required to support this strategy are is summarised in Figure 5.5 below.

Figure 5.5: The Action that relates to National Information Infrastructure Initiative

Action(s):

A Sector Information Infrastructure Initiative be created, under the auspices of the ICT Sector Partnership, that would address on an urgent basis the following issues:

• Achieving widespread coverage of infrastructure be achieved?
• Making the latest broadband ICT infrastructure and technologies be made readily available?
• Achieving rapid deployment of ICT infrastructure and technologies be achieved?
• Provision of ICT infrastructure and technologies be provided in an equitable and affordable manner?
• Realisation of widespread awareness of the benefits and importance of ICTs be realised?

The Partnership would work co-operatively with DoC to develop the business case for such an infrastructure initiative. It will recommend to government within six months the course of action to be taken, including necessary policy, regulatory and legislative changes required. More immediate action would be the removal of the monopoly within the fixed-line telecommunications arena, in order to stimulate competition and reduce usage costs.

Objective 2.3: Stimulate ICT Adoption Through Government as a Model User

Government could have a major stimulative impact on ICT adoption by becoming a model user of ICTs. Whereas the national government should take the lead in this respect, co-ordination with other levels of government in strategic areas could be used as an important mechanism to increase leverage and extend the impact throughout the country. The following presents specific strategies for this category.

Strategy 2.3.1: Government Online/Encourage Collaborative Development of Electronic Delivery of Government Services

Consistent with many governments worldwide, a Government Online initiativethe development of electronic delivery of government services is proposed. In particular, it is suggested/recommended that the ICT Sector Commission/Partnership should work closely with government on this initiative so that a full suite of electronic government services can be provided to the individual and business, taking note first of the several initiatives currently underway. The objective to be the delivery of government services electronically within a reasonable timeframe. Recognising that not all citizens and businesses will have the ability to deal electronically with government, at least not in the short term, a variety of distribution channels will need to be utilised. A Government Online initiative would conceptually include two major components: Priority application areas would have to be identified, and partnerships would need to be developed to build the infrastructure. The effect of this strategy will be wider use of ICTs by the broad population, stimulating awareness, and ultimately further stimulating ICT Sector development through added demand.

The actions required to support this strategy are summarised in Figure 5.6 below.

Figure 5.6: The Actions that relate to Encouraging Collaborative Development of Electronic Delivery of Government Services

Action(s):

• Establish co-operative mechanisms between the ICT Sector (through the ICT Sector commission/Partnership) and government to accelerate the adoption of ICT in government.
• Increase awareness of the potential for increased use of ICT in government to stimulate the ICT Sector directly and act as a role model for other sectors of the economy.
• Identify priority applications in the area of electronic administration where using ICTs would be employed to conduct the administrative aspects of government business more efficiently and effectively and to build applications not previously feasible.
• Similarly, in the area of electronic service delivery (ESD) identify potential ICT applications for delivering government services to citizens and businesses. The ESD applications would encourage the users of the service to become better acquainted with the ease and speed benefits of ICT applications.

Strategy 2.3.2: Direct Strategic Use of Government Procurement

This strategy is concerned with governments at all levels using government procurement in a strategic manner to stimulate ICT adoption and, indirectly, ICT sectorICT Sector growth.

The actions required to support this strategy are summarised in Figure 5.7 below.

Figure 5.7: The Actions that relate to Direct Strategic Use of Government Procurement

Action(s):

• Strategic purchase of ICT products and services, and the development of ICT applications, to stimulate South African ICT R&D, product and service development, and ICT applications development (e.g. ICT financial applications, ICT-based safety and security requirements, "Future Web" applications, etc.); and
• Use of industrial development credits from major government procurement to stimulate ICT product, service and applications development.

Objective 2.4: Bring Disadvantaged Communities into the Main Stream of ICT Development and Use

The focus of this objective is to help ensure that disadvantaged communities are included in the benefits accruing from the development of the ICT sectorICT Sector and ICT enableICT-enabled sectors. The challenge facing South Africa is significant – ICT is considered to be a predominantly white male domain; the required education and training are not accessible to disadvantaged communities; business funding for black schools is considerably less than that for white schools; and women are not encouraged to participate in ICT activities. All these factors have marginalised the disadvantaged communities and women from ICT development. Innovative solutions must be found if disadvantaged communities and women are to participate in the promise of ICTs and not be further marginalised.

In formulating strategies to address the needs of the disadvantaged communities and women, it is essential to ensure that:

• All stakeholders participate in the development and implementation of disadvantaged community initiatives.
• There are sustainable programs and initiatives that support the government’s legislative initiatives.
• Initiatives to address disadvantaged communities include individuals (race and gender) and geographic areas.

As South Africa moves into the 21st century, it must ensure that all South Africans have access to the lifelong learning opportunities made possible through ICTs. Making high-speed Internet connections widely available will open huge learning opportunities for all South Africans. It will also create the opportunity for South Africa to become a world leader in systems and applications for connectivity, Internet-based learning and electronic commerce.

Strategy 2.4.1: Information and Learning for all South Africans

In order that a greater portion of the broader population is encouraged to more actively take part in the South African economy, it is critical that wider and affordable access to information and education be provided to all South Africans. This will require the continuing development of the skills and knowledge of all South Africans, in the home, in educational institutions, and in the working environment. Making access more readily available to the wealth of global information on the Internet will present an array of new learning opportunities to all South Africans. Information and communication technologies are required to play a significant role in the delivery of information and educational material.

The actions required to support this strategy are summarised in Figure 5.8 below.

Figure 5.8: The Actions that relate to Information and Learning for all South Africans

Action(s):

• Engage the private and public sectors in providing affordable, high-speed Internet access to every home, school and business in South Africa; and
• Make learning opportunities more broadly available to workplace and employment areas and in particular to rural residents by transforming Multi-Purpose Community Centres (MPCCs) into true learning centres.

Strategy 2.4.2: Improve Opportunities for Disadvantaged Individuals

With the growth of the ICT Sector, new and additional skills will be required to support this growth. This presents an opportunity for disadvantaged communities, including women, to enter the ICT Sector workforce. In order to achieve this, it is necessary to improve access, make communication easier, and improve access to information across all sectors for the development of skills and knowledge within disadvantaged communities.

The actions required to support this strategy are summarised in Figure 5.9 below.