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LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 1
Developing national capabilities for successful transformation ICT ENABLED policy framework for national development
■ STOCKHOLM ■ RENE SUMMER
■ DIRECTOR GOVERNMENT & INDUSTRY RELATIONS ■ 2016
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 2
Public policy rational (1 of 3)
SUPPLY SIDE ICT POLICIES
DEMAND SIDE ICT POLICIES
DEMAND SIDE NON-ICT POLICIES
FRAMEWORK POLICIES
STIMULATE WIDE & DEEP ADOPTION
SOCIO-ECONOMIC BENEFITS
ICT BEN
EFITS
DIG
ITAL TR
AN
SFO
RM
ATION
MANAGE COMPLEX
IMPLEMENTATION
RESOLVE CONFLICT
CHALLENGES OUTCOMES
FEEDBACK
SOURCE: ERICSSON ANALYSIS 2016
POLICY FORMULATION
ALIGN OBJECTIVES
HOLISTIC APPROACH
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 3
public policy rational (2 of 3)
MAXIMIZING IMPACT BY ALIGNING SUPPLY AND DEMAND SIDE AND FRAMEWORK POLICIES
DIFFUSION & ADOPTION
INNOVATION IN PROCESSES, PRODUCTS, SERVICES, DISTRIBUTION & BUSINESS MODEL
Economic impact from ICT
Increases with broad & deep adoption
and is sustained through innovation in
TECHNOLOGY
BROADER POLICY TOOLBOX NEEDED
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 4
public policy rational (3 of 3)
ICT EMBEDDED IN ALL SECTORS, CONVERGENCE & HOLISTIC
PREDOMINANTLY DRIVEN BY PRIVATE INVESTMENT
KEY POLICY OBJECTIVE, PROMOTE INVESTMENT & ENABLE INNOVATION
BROADER TOOLBOX & CHANGED COMPETITIVE DYNAMICS
REGULATOR NOT A REFEREE BUT A PLAYER IN THE FIELD
ANALOGUE ECONOMY
DIGITAL ECONOMY
NEW POLICY & REGULATORY CHALLENGES
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 5
› Digital transformation, why, who and why again › Guiding policy making through transformation › National framework for ICT enabled transformation
› Cases › Barriers and success factors › Summary
agenda
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 6
digital transformation “why, who and why again”
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 7
digital transformation
Why is it
happening?
TRANSACTION COST
New conditions for value creation
CAPABILITY COST
50 years of Moore´s law
SPEED
Connecting everything
PLACES DISTRIBUTION COST
PEOPLE DATA
THINGS COMPUTATION
SOME TECHNO
ENABLERS
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 8
PROGRESSIVE Innovation ICT enabled innovation
ACCELERATING ICT PERFORMANCE
DATA & INFORMATION
WEALTH
BROAD ACCESSIBILITY &
USEFULNESS ROBOTICS
SENSORS
BIG DATA
INDUSTRIAL BIO-TECHNOLOGY
SMART MATERIALS
AUGUMENTED BODY
ANALYTICS
NANO
WEARABLES
INTERNET OF THINGS 3D PRINTING
VISUALIZATION
VIRTUALIZATION
CROWD
SMART ENERGY
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 9
3 Basic types of ICT enabled capabilities
Efficiency
Business Model Innovation
Data Driven Innovation
Enablers: ICT infrastructure, software, devices,
Consumer-centric,
Agile-innovation
TTM
Demand-supply matching, two-sided business
models
Front/back-end systems, ERP,
logistics
Outcomes
Source: Ericsson Analysis 2016
Examples CAPABILITIES CHANGING CONDITIONS FOR VALUE CREATION
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 10
digital transformation
Who is
affected? NOT
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 11 Source: McKinsey Global Institute “Haves and Haves More” 2016
US INDUSTRY
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 12
Why is it important?
Digital transformation
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 13
Enhancing well-being through ict four key pillars of a National ICT Strategy for DEVELOPMENT
STANDARD OF LIVING
QUALITY OF LIFE
SOCIAL PROGRESS NATIONAL COMPETITIVENESS
WELL-BEING
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 14
ICT impact on Factors influencing standard of living
Employment rate % of total population
that is employed
Work effort Hours
Worker
Productivity Output
Hour
Standard of living GDP
Population
X X =
ICT
Job destruction/creation
Job reallocation
Quality of skills required
Employment
> More skills
> More fluid/”gig”
Income equality
Skilled based bias
Winner takes it all
Content of work, substituting away repetitive tasks
Complementing labor skills
ICT skills
> Human
> Organizational
Increased labor productivity
Measure of the value of the output:
Consumer surplus
Increased quality
Capturing the value of output:
Business models/Freemium
EXAMPLE LABOR PRODUCTIVITY
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Labor productivity and Competitiveness of Firms
POOR DIFFUSION FROM FRONTIER FIRMS TO NON-FRONTIER FIRMS
SERVICE SECTOR PERFORMS MORE POORLY RELATIVE MANUFACTURING
Source: OECD 2015, Future of Productivity.
businesses falling behind not adopting ict
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 16
ICT Enhancing the well-being four key pillars of a National ICT Strategy for DEVELOPMENT
STANDARD OF LIVING
QUALITY OF LIFE
SOCIAL PROGRESS NATIONAL COMPETITIVENESS
WELL-BEING
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 17
ICT as an enabler for National competitiveness
Source: Harvard Business School.
IMPACT FROM ICT
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 18
Beyond labor productivity 10 innovations where ICT Matters
Source: Doplins 10 types of innovations
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ict enabled Innovation
BETTER PERFORMANCE OF CURRENT OFFERING
IMPROVED OFFERING TO CURRENT MARKET
SYNERGY OFFERING ACROSS INDUSTRIES
PROFOUNDLY NEW OFFERING CREATING
NEW MARKETS
OUTSIDE DRIVE
EVOLUTION DISRUPTION
INNOVATION TYPE: OFFERING
INSIDE CONTROL
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 20
Example: car/mobility
OUTSIDE DRIVE
INSIDE CONTROL
EVOLUTION DISRUPTION
SELF-DRIVING CAR AS A SERVICE CAR / RIDE
SHARING
e/m-TICKET
SMART NAVIGATION
TRAFFIC MANAGEMENT
NATIONAL e/m-TICKET
COLLABORATIVE LOGISTICS
DYNAMIC TRANSPORT
SERVICE
VEHICLE CLOUD
CONNECTED CAR
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 21
Summing up: Ict impacting COMPANIES’ value creatinG conditions
EFFICIENCY EFFICIENCY
UNIVERSAL EFFECTS FROM DIGITAL TECHNOLOGIES
Source: World Bank, WDR 2016
BUSINESS SPECIFIC EFFECTS FROM DIGITAL TECHNOLOGIES
Source: McKinsey Global Institute “Haves and Haves More” 2016
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 22
Sources: Chalmers Institute of Technology, Arthur D Little, OECD Broadband and the Economy, Future of Internet 2008
DIRECT INDIRECT INDUCED
Universal ICT BENEFITS AS enablers of innovation & socio-economic change
INCREMENTAL
RADICAL
TRANSFORMATIVE
ECONOMIC PERFORMANCE
GROWTH
CHANGE
TECHNOLOGICAL CHANGE = INNOVATION
IMPACT FROM ICT
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 23
ICT benefits for all stages of economic maturity
Source: World Economic Forum, Global Competitiveness Report 2010-11
Characteristics of a factor-driven economy
(endowments)
Source: Jati Sengupta, Understanding Economic Growth, Springer 2011, OECD Broadband and the Economy, Future of Internet 2008; Lipsey, Richard; Kenneth I. Carlaw & Clifford T. Bekhar, Oxford Press 2005; Brynjolfsson, Erik, and Adam Saunders (2010) MIT Press and Ericsson Analysis
BASIC REQUIREMENTS › Institutions › Infrastructure › Macroeconomic environment › Health and primary education
DIRECT IMPACT › Availability and quality of ICT Infrastructure › Digital Readiness
Characteristics of a efficiency- driven
economy (investment driven)
EFFICIENCY ENHANCERS › Higher education and training › Goods market efficiency › Labor market efficiency › Financial market development › Technological readiness › Market size
INDIRECT IMPACT FROM ICT › Improving development of human capital, e-education › Increased access to knowledge › Increasing market efficiency/ reach e-commerce › Increase efficiency in existing processes/value chains
Characteristics of an Innovation-
driven economy
INNOVATION & SOPHISTICATION › Business sophistication › Innovation › Creative destruction
INDUCED IMPACT ICT › Decreasing barriers to creating of new knowledge (inventions) › Decreasing barriers to innovation in new products, services,
processes, and markets
COMPETITIVENESS OF NATIONS IMPACT FROM ICT
ICT NOT A TAIL OF PROSPEROUS NATIONS DOING BETTER MATURITY
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 24
Ict enabled Innovation DEVELOPING ECONOMIES catching-up
End Poverty
Education for All
Energy & Water for all
Economic Growth & Employment
Sustainable Industrialization &
Cities
Sustainable consumption
Climate change & energy
Basic access
Mobile Money M-Commerce
Connecting Schools
E-education
IoT
Cloud Analytics
Smart Transport Solutions Smart City
M-Commerce Mo bile Money Ride sharing
Energy performance
Smart Grids
Smart grids
Connected Water
Pumps Smart homes
Smart City
Mobility, Broadband and Cloud
Connectivity
Platforms
M-Commerce
Catch-up Opportunities
Sustainable Development Goals
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 25
What’s next? 4:th industrial revolution
Sources: http://eh.net/?s=standard+of+living Foreign Policy Magazine
Perez, Technological Revolutions and Financial Capital
GDP PER CAPITA BY COUNTRY AND YEAR (1990 $)
0
5000
10000
15000
20000
25000
30000
1820 1870 1913 1950 1973 1998
China Mexico United Kingdom Netherlands United States Africa
Second Industrial Revolution
First Industrial Revolution
Third Industrial Revolution
Fourth Industrial Revolution
Coal, Steam, mechanical equipment
Steel, heavy engineering
Car, Oil, Mass production
Electronics, IT and Telecom
Builds on the 3:ed but distinct;
velocity, scope and system impact
The Great Catch-up opportunity for developing economies unprecedented leveling of
- Access to technology
- Performance of technology
- Cost of technology
- Entry barriers
2.5 Industrial Revolution
Doubts?: Will innovation rescue mature economies?
2010
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 26
Keeping up with the pace of exponential change
UNTAPPED OPPORTUNITIES CHANGE
TIME
Institutions
(Governance)
MARKET
Technology
Growth Reform
Opportunities
Governance Reform
Opportunities
PEOPLE
Source: High Noon 2002 Global Problems 20 Years to Solve Them, Rischard 2002 and Erisson Analysis.
Source: www.futuretimeline.net/21stcentury/images/2050-technology.jp and Institute for the Future
This is why the most important sentence in the US National Broadband Plan is: “this plan is in Beta and always will be”
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 27
ICT as an enabler for National competitiveness
Source: Harvard Business School.
Effective institutions & enabling
policy/regulatory environment
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 28
Guiding policy making through transformation
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 29
DEFINING TRANSFORMATION
Content Process
Pace Ecosystem
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 30
1. Deep change now, doing rights things today
2. Change within current techno-economic paradigm, doing things right
3. Sustained deep change tomorrow, doing right things tomorrow
ARTICULATE : THE CHANGE A COUNTRY SEEKS, THE BENEFITS IT CAN EXPECT, WHAT IT TAKES AND THE TIME IT WILL TAKE TO REACH THEM
FAST SHORT
SLOW LONG
NARROW
BROAD
SCO
PE O
F C
HAN
GE
TRANSFORMATION
3
SPEED & TIME HORIZON OF CHANGE
SHOCK THERAPY
1
RE-ENGINEERING
2
CONTINUOUS IMPROVEMENTS
2
“Selling” ict enabled transformation Aligning political horizons with achievable outcomes
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 31
Policy makers role
in digital
transformation
socio-economic benefits
Are Not
automatic
given
endless
symmetric
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Digital technologies hold the benefits as well as risks
INNOVATION efficiency inclusion
concentration inequality control
DIGITAL TECHNOLOGIES
With complements
Without complements
Source: WDR 2016
COMPLEMENTS: QUALITY OF INSTITUTIONS, REGULATION & SKILLS
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 33
Realizing ICT benefits through complements Why policy makers need to act?
ICT benefits are not automatic
No deterministic built in design in to technology
ICT outcomes can be negative if not backed by
adequate policies
Policy choices shape the size, distribution and sustainability of
benefits
Must be backed by resilient & adequate
policy
Technology can’t do it alone
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 34
› Help building a long term policy commitment
› Preparing for the transformational journey
› Integrating supply and demand side ICT policies
› Organizing and implementing institutional change
› Executing and delivering on a change
Why A Policy guide? Ericsson’s KEY drivers
Link to AMAZON
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 35
Policy Makers guide to Networked society “NATIONAL FRAMEWORK FOR ict enabled TRANSFORMATION”
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 36
overview VISION & OBJECTIVES
SWOT
STRATEGIC FRAMEWORK
POLICY INTEGRATION
IMPLEMENTATION PLAN
GOVERNANCE
1
4
2
3
6
5
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 37
› Start with the ends / objectives › Clearly articulate priorities across sectors › Promote collaboration among key players › Prioritize shared infrastructure › Seek synergies in competing stakeholder visions › Link national vision to local initiatives
Turning transformational vision into action
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 38
› Sustained economic long term growth › Increase competitiveness of nations and
industries › Stimulate innovation, diffusion and adoption › Create new jobs/business › Minimize exclusion and poverty, › Increase equality › Address population challenges, ageing/youth
population › Increase public sector efficiency › Address climate change, environment › Cope with increasing level of urbanization
Setting policy OBJECTIVES for a transformational change WHAT OBJECTIVES TO PURSUE
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 39
STRENGTHS
High: working ethics, educational system, entrepreneurship, human capital, access to capital, high readiness, agile institutions, support by the pubic, positive attitudes towards ICT, effective innovation system.
WEAKNESS
Excessive optimism and/or pessimism, lack of political will, short term perspective, window dressing, growing gap between goals, strategy and results, institutional resistance, political/budget cycles, silo thinking.
OPPORTUNITIES
Socio-economic benefits, national competitiveness, well being, standard of living long term sustained, sustainable and re-enforcing growth, structural reform capability, ability to create new opportunities as conditions change & develop.
THREATS
Slow reaction to global/regional change, inability to reform structures and operating models, fragmented/disconnected approach, reduction in investments, innovations, short term threats from job destruction, incumbent resistance to change, inequality.
Make transformation Objectives & sequencing their of relevant
CONDUCT A SWOT ANALYSIS – ILLUSTRATIVE EXAMPLE
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 40
Your reality
Rethinking who you are...
A honest SWOT……
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 41
National Strategic framework for ICT enabled transformation
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
HUMAN ICT CAPITAL
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 42
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
HUMAN ICT CAPITAL
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
Broadband Access
Backbone
Remote areas
Connected Schools
National Strategic framework for ICT enabled transformation
Illustrative
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 43
EXAMPLE: Ict infrastructure
Observer
US, Germany
Facilitator
Sweden, Norway
Driver
Japan, South Korea
Government Involvement
NG
A Pe
netr
atio
n 20
08
Low High
Low
Medium
High
Source: Booz & Company 2009
HOW MUCH GOVERNMENTS GOT INVOLVED
RURAL GOVERNMENT NETWORKS
NETWORK SHARING PASSIVE/ACTIVE
GOVERNMENT BACKBONE NETWORK
NATIONAL GOVERNMENT ACCESS NETWORK
NATIONAL WHOLESALE NETWORK
SPECTRUM REFORMS/ LICENSE OBLIGATIONS
DEGREE OF INTERVENTION -ILLUSTRATIVE
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 44
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
HUMAN ICT CAPITAL
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
Affordability
General ICT skills
Digital Content
skills Programming skills
National Strategic framework for ICT enabled transformation
Illustrative
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 45
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
ORGANIZATIONAL ICT CAPITAL
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
Digital Innovation
Digital B-models
ICT enabled efficiency
Basic ICT
National Strategic framework for ICT enabled transformation
Illustrative
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 46
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
HUMAN ICT CAPITAL
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
R&D Programmes
VC investments
FDI promotion
ICT export promotion
National Strategic framework for ICT enabled transformation
Illustrative
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 47
ICT industry ECOSYSTEM: example The entrepreneurial state
SOURCE: Mariana Mazzucato
SEE ALSO
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 48
Strategic framework for transformation
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
HUMAN ICT CAPITAL
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
Private Sector, IoT etc
Public Admin/Sector
e-Government
Public safety
Illustrative
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 49
DIGITAL TRANSFORMATION
ICT INDUSTRY ECOSYSTEM
ICT INFRASTRUCTURE
POLICIES & INSTITUTIONS
Supply side ICT polices
Demand side ICT policies
Framework policies
Network Regulation
Spectrum Management
National BB plans
Industrial Internet, IoT
Media/Content
Data driven innovation
Internet Governance
Critical Infrastructure
Trade Policies
IPR
National Strategic framework for ICT enabled transformation
Sector Policies/Non-ICT
LME/GF/GIR Rene Summer | Public | © Ericsson AB 2016 | 2016-03-10 | Page 50
Demand & supply side policy integration ICT led transformation and Development
PUBLIC POLICY STRATEGY APPROACH
PARTIAL HOLISTIC
UNCLEAR
CLEAR
PUB
LIC
PO
LIC
Y / S
ECTO
R
REF
OR
M S
TRAT
EGY
APPROACH TO ICT
STRUCTURAL TRANSFORMATIONS
EXCELLENCE SURGICAL
PROCEDURE
GOOD LUCK WITH THAT
BUILD IT AND THEY WILL COME
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Seeking better integration between ICT and public SECTOR policies
› Vision: client-centered, on demand, info driven, integrated, learning systems. › Governance: align sector strategies, policies, incentives, budgets, with ICT transformation strategy.
› Holistic: take a whole sector view: shared infra., open data & standards, common portal, seek scale.
› Particular: decentralized; nurture discovery, innovation and feedback, integrate with horizontal enablers.
KEY OBSERVATIONS
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a SOLID Implementation plan Delivering a successful change (illustrative)
Cooperation &
Inclusion
Source: Ericsson Analysis inspired by, Transforming Government and Building the Information Society, Hanna 2010.
Organize Partnerships & Accountability
Coordinate & Align
Stakeholders
Stimulate Innovation, Adoption &
Transformation
National
Competitiveness Strategy
Formulate Objectives
& Identify Stakeholders
Formulate Strategies Prioritize
Actions & Projects
Readiness Assessment
incl. SWOT
Establish Governing
Mechanisms
Formulate Sector
Strategies
Review & Update Policy
Frameworks
Mobilize
Resources
Monitoring Implementation Process
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Managing governance of institutional implementation
PROGRESS ASSESSMENT
REPORTING ESCALATION
REMEDIES REVIEWS
PROJECT WORK PLAN
OBJECTIVES INSTRUCTIONS
ACTIVITIES RESOURCES
ACTIONS
IMPLEMENTATION PLAN
STRATEGY ACTION PLANS COORDINATION
RESOURCES REPORTING
GOVERNANCE & ORG. STRUCTURE
MANDATE OWNERS PROGRAMME
PROJECTS WORKING GROUPS
STAKEHOLDER MAP
KEY STAKEHOLDERS CENTRAL FUNCTIONS
KEY INDIVIDUALS
OBJECTIVES + SWOT ANALYSIS
REALITY ASSESSMENT IDENTIFY COUNTER
MEASURES EXPLOIT STRENGTHS &
OPPORTUNITIES
MANAGE COMPLEX
IMPLEMENTATION
RESOLVE CONFLICT
ALIGN OBJECTIVES
HOLISTIC APPROACH
CHALLENGES
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Policy Makers guide to Networked society “Cases”
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The genesis – developed nations*
NATIONAL BROADBAND
PLANS
NATIONAL eGOVERNMENT
STRATEGY
NATIONAL CYBER SECURITY
STRATEGY
NATIONAL DIGITAL STRATEGY
OECD DIGITAL ECONOMY OUTLOOK 2015 *France, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom, the United States (OECD countries), and Egypt, Latvia, Lithuania and Russian Federation (non-OECD countries) ** Russian Federation and US have several sectorial approach without aggregation into one overall national strategy
OUT OF 34 COUNTRIES* 27 HAD A NATIONAL DIGITAL STRATEGY**
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OECD Digital Economy Outlook 2015
*France, Germany, Greece, Hungary, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom, the United States (OECD countries), and Egypt, Latvia, Lithuania and Russian Federation (non-OECD countries)
** Russian Federation and US have several sectorial approach without aggregation into one overall national strategy
OUT OF 34 COUNTRIES* 27 HAD A NATIONAL DIGITAL STRATEGY**
› Governments do more than encourage broadband deployment › Scope is expanding, cross sectorial focus › Strategies are designed to boost national competitiveness, economic growth
and social well being › Policy & regulatory reforms combined with sectorial programmes to drive
outcomes
ICT ENABLED NATIONAL TRANSFORMATION STRATEGIES
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OECD Digital Economy Outlook 2015 KEY PILLARS
Further developing telecoms infrastructure, broadband access
ICT sector promotion, international
eGovernment, access to public sector information and open data
Trust; digital identity, privacy and security
ICT adoption by business sector and SME, focus on key sectors;
a) health care, b) transportation c) education Promoting e-inclusion, aging population and disadvantaged social groups
ICT-skills and competence build-up
Global challenges; internet governance, climate change and development cooperation
1. ICT Supply side
2. Complementary investments in human capital and trust
3. Sectorial interventions, demand side policies
+ Emphasis
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National Case SINGAPORE NATIONAL ICT “MASTER PLAN”
Source:N.K. Hanna and P.T. Knight (eds.), National Strategies to Harness 41 Information Technology, Innovation, Technology, and Knowledge Management, DOI 10.1007/978-1-4614-2086-6_2, © Springer Science+Business Media, LLC 2012
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National cases
Source:N.K. Hanna and P.T. Knight (eds.), Seeking Transformation Through Information Technology © Springer Science+Business Media,
ORCHESTRATING ICT TRANSFORMATION STRATEGIES
Country/Criterion Singapore Finland South Arica Philippines
Integration with development strategy H H L M Coverage, coherence, synergy H H L M Leading, institutionalizing, engaging H H L L Balancing central direction with local M H M L Balancing long and short term objectives H H L M Innovating, adapting and learning M H L L Balancing ICT as enabler for sectors H H L M Emphasizing digital inclusion H M L M
Key: H high; M medium; L low rating for each criterion
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Policy Makers guide to Networked society “BARRIERS & success factors”
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› Vested interests and resistance to reforms
› Wasting scarce development resources
› Unmet expectations › Eroding competitive positions › Exacerbating Inequalities
Key Barriers to ICT ENABLED transformation
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DEVELOPING KEY SUCCESS FACTORS: › Leadership and institutional capabilities › Enabling policies and regulation › A high-quality Broadband & IT infrastructure
Mastering the digital transformation process
MOBILITY - BROADBAND - CLOUD
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Craft resilient public policies that can enable structural transformation of economy and society
Political leadership, Committed vision, agenda setting, and Focus
Formulate and implement a cohesive reform agenda that will maximize benefits of an ICT-led transformation
Address key ICT-specific policy issues that shape
the conditions of technologies
underpinning the Networked society
FIRM POLICY COMMITMENT
REFORM AGENDA
ICT POLICIES
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› Institutional options for ICT enabled transformation:
– Shared Responsibility Model, – Core Ministry Model > Investment
coordination, – Lead Ministry Model >Technical
coordination – Administrative and Technical
Coordination Model – Designated ICT-Development
Agency Model > Holistic coordination
Developing institutional capabilities
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› Shift towards direct engagement by president/PM › Shift from ad-hoc responses to institutionalized structures › Shift in the locus of institutional leadership › Independent and strong national ICT agency › Shift to governance across entire portfolio (e-gov.) › Content of ICT strategy shifting from supply to demand side as maturity grows
Developing institutional capabilities
KEY TRENDS
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Enabling policies - Political economy of digital transformation!
WHAT DOES IT TAKE TO MAXIMIZE BENEFITS FROM ICT ENABLED TRANSFORMATION:
1. REMOVING BARRIERS TO DO THINGS RIGHT
2. REMOVING BARRIERS TO DO RIGHT THINGS
3. CREATING INCENTIVES TO DO RIGHT THINGS
PUBLIC INSTITUTIONS & POLICY • Wise policies, that shape right incentives …
• Not all profit seeking is beneficial… • Continue to deal with market failures but also • Reactionary public institutions, • Regulatory failures • Systemic failures > State – different layers of authority –
alignment –
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public policy challenges Removing Barriers
SOURCE: Economic Transformations, Lipsey et al. 2005 and Ericsson Analysis.
SUNK COSTS, RISK AVERSION OR LACK OF ORGANIZATIONAL INCENTIVES LIMIT THE
INCUMBENT TO APPROPRIATE PRIVATE NET BENEFIT FROM A TRANSFORMATIONAL CHANGE
WHY DO ORGANIZATIONS SACRIFICE BENEFITS OF
TECHNOLOGY-LED LONG-TERM GROWTH?
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public policy challenges removing barriers
SOURCE: Economic Transformations, Lipsey et al. 2005 and Ericsson Analysis.
Mastering a structural change in the most advantageous societal direction includes addressing:
› Market Failures
› Government/Regulatory Failures
› Systemic failures
WHAT NEEDS TO BE FIXED TO BENEFIT FROM TECHNOLOGY-LED LONG-TERM GROWTH?
STRATEGIC GOVERNANCE CAPABILITY: ADEQUATE AND EFFECTIVE SOLUTIONS
TO ADDRESS FAILURES IDENTIFIED
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public policy challenges CREATING Incentives
SOURCES: Economic Transformations, Lipsey et al. 2005 and Ericsson Analysis. Innovation Economics, ITIF.
› Technology advancement is taken for granted
› Weakness of growth
› Temporal asymmetry in cost and benefit distribution
WHY DO WE UNDERESTIMATE THE POWER OF TECHNOLOGY-LED LONG-TERM GROWTH?
TEMPORAL ASYMMETRY IN COST AND BENEFIT DISTRIBUTION
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public policy challenges CREATING INCENTIVES to do right things
GETTING INCENTIVE STRUCTURES RIGHT - HOW TO INFLUENCE THE CONDUCT OF STAKEHOLDERS?
SOURCE: Industrial Policy After the Crises (Bianchi & Labory) and Ericsson Analysis.
SOCIAL/PUBLIC INTEREST POLICIES
HUMAN CAPITAL POLICIES
ENTITLEMENTS
SECTOR REGULATION
INNOVATION POLICY
& PROCUREMENT
PROVISIONS
ADOPTION
INNOVATION
INCENTIVES
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Enabling regulation - Key ICT policy AREAS
ICT Supply
Side Roll-out of ICT infrastructure
Scarce resource management Market Efficiency
3. Spectrum Management 1. National Broadband Plans 2. Network Regulation
New consumer expectations, value-chain shifts and new business models
ICT empowerment for increased innovation and efficiency in industrial sectors
ICT Demand
Side Privacy Protection & Innovative
Uses of Data, Cloud
5. Media & Content Regulation 4. Industrial Internet / Internet of things
6. Data Protection & Data Driven Innovation
Horizontal frameworks impacting ICT Supply
and Demand side
Market access, Digital Services, Cross Border Data Flows,
Meta Regulation Investment Incentives, Licensing, Diffusion
8. Trade Policies 7. Internet governance 9. IPR
Resilient ICT infrastructure and offensive & defensive measures protecting against cyber-attacks
10. Critical infrastructure and Cyber security
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Developing high quality ICT Infrastructure & IT
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Policy Makers guide to Networked society “SUMMARY”
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Long term ICT Benefits Networked society a new techno economic paradigm
The Networked Society is a transformative augmentation of a
society’s key capabilities:
to better shape its physical, economic, social, and intellectual environments to
achieve its ends. INSTALLATION
DEPLOYMENT
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What’s next? 4:th industrial revolution
Sources: http://eh.net/?s=standard+of+living Foreign Policy Magazine
Perez, Technological Revolutions and Financial Capital
GDP PER CAPITA BY COUNTRY AND YEAR (1990 $)
0
5000
10000
15000
20000
25000
30000
1820 1870 1913 1950 1973 1998
China Mexico United Kingdom Netherlands United States Africa
Second Industrial Revolution
First Industrial Revolution
Third Industrial Revolution
Fourth Industrial Revolution
Coal, Steam, mechanical equipment
Steel, heavy engineering
Car, Oil, Mass production
Electronics, IT and Telecom
Builds on the 3:ed but distinct;
velocity, scope and system impact
The Great Catch-up opportunity for developing economies unprecedented leveling of
- Access to technology
- Performance of technology
- Cost of technology
- Entry barriers
2.5 Industrial Revolution
Doubts?: Will innovation rescue mature economies?
2010
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Public policy rational (1 of 3)
SUPPLY SIDE ICT POLICIES
DEMAND SIDE ICT POLICIES
DEMAND SIDE NON-ICT POLICIES
FRAMEWORK POLICIES
STIMULATE WIDE & DEEP ADOPTION
SOCIO-ECONOMIC BENEFITS
ICT BEN
EFITS
DIG
ITAL TR
AN
SFO
RM
ATION
MANAGE COMPLEX
IMPLEMENTATION
RESOLVE CONFLICT
CHALLENGES OUTCOMES
FEEDBACK
SOURCE: ERICSSON ANALYSIS 2016
POLICY FORMULATION
ALIGN OBJECTIVES
HOLISTIC APPROACH
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public policy rational (2 of 3)
MAXIMIZING IMPACT BY ALIGNING SUPPLY AND DEMAND SIDE AND FRAMEWORK POLICIES
DIFFUSION & ADOPTION
INNOVATION IN PROCESSES, PRODUCTS, SERVICES, DISTRIBUTION & BUSINESS MODEL
Economic impact from ICT
Increases with broad & deep adoption
and is sustained through innovation in
TECHNOLOGY
BROADER POLICY TOOLBOX NEEDED
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delivering a change SIX VERSIONS OF A PROMISE OF A change
x SKILLS INCENTIVES RESOURCES ACTION PLAN =
x VISION INCENTIVES RESOURCES ACTION PLAN =
VISION SKILLS RESOURCES ACTION PLAN =
x VISION SKILLS INCENTIVES ACTION PLAN =
x VISION SKILLS INCENTIVES RESOURCES =
x
CONFUSION
CONCERN
RESISTANCE
FRUSTRATION
OPTIMISM
VISION SKILLS INCENTIVES RESOURCES ACTION PLAN = SUCCESS
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› Commit to holistic, long term transformative strategy › Transformation is a process › Tap synergies, exploit supply and demand side synergies › Attend to soft infrastructure, leadership, policies and institutions › Emphasize digital diffusion › Balance strategic direction with local initiative › Enable change, innovation and learning › Monitor, Evaluate Adapt
The KEY lessons so far
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Creating an economic strategy How Should Nations Compete with Each Other?
Source: Harvard Business School.
Policies
Spectrum Management
Network Regulation
Internet Governance
Data flows
IPR
Cyber-security
Innovation Policy
EXAMPLES