How To Develop Ict Businesses To Support Open City Portal

How to develop ICT businesses

OpenCityPortal

Delta Nigeria, November 2008

Contents1. Importance of creating ICT businesses

3. General ICT strategy actions summary

2. General ICT development strategy2.1. Creating a liberalized environment2.2. Achieving universal access2.3. Creating jobs trough ICT businesses2.4. Supporting innovation and entrepreneurship

4. Sample Ideas to Create ICT Businesses

Contents1. Importance of creating ICT businesses for OpenCityPortal




Open City Portal

1. Importance of creating ICT businesses

InitialICT

Network

Final ICT Network

• Infrastructure• Human resources• Businesses

The Open City Portal needs a basic ICT Network as starting point to support its functions to become a sustainable project.

Once Open City Portal is operative, it creates an ICT demand among users that helps developing the ICT Network.

The final benefit is that the ICT development can be used as a powerful tool for creating a dynamic, innovative and upgraded business environment and knowledge economy in the country.

1 2

3

InitialICT

Network





2. ICT development strategy

This strategy should not simply involve installing more telephone lines or computers, but have comprehensive programs to address the following four strategic areas:•Creating a liberalized environment which allows new ICT businesses to emerge and develop•Achieving universal access so that all citizens can share the ICT benefits•Creating jobs through ICT-enabled businesses•Supporting innovation and entrepreneurship

The Government must play an important role in promoting and facilitating the development of the information society and economy. They should be active players but not become substitutes for private-sector action.

First and foremost, Governments should lead by example by adopting e-government practices. Secondly, an integrated and efficient ICT development strategy must be designed and implemented.

2.1. Creating a liberalized environmentThe starting point for ICT businesses to emerge is a suitable market where new businesses can fairly compete against already established companies.

This is particularly important in the communications industry which requires dynamic and innovative products and business models.

A supportive regulatory framework established by the government(supportive government policies and regulations) is needed to:

Enhance competition through liberalization, introduction of an independent regulator and privatization of the state-owned telecommunications operator. Regulation also needs to ensure new entrant interconnection to the network and tariff reform to ensure that tariffs reflect cost.

Allow innovative private sector firms to enter the market and help expand telecommunications infrastructure. Such an environment and firms will also help create new types of communications markets.

2.2 Achieving universal access

Three actions have been identified to achieve this goal: Introduction of competition in the telecommunications market will significantly expand the network of services by forcing companies to fight against a high number of competitors. However, remote and sparsely populated regions which often have low incomes will be left out of the commercial initiatives. Thus, there is a need for an incentive for private operators to invest in rural telecommunications, and governments must address this in the universal access element of their ICT strategies.A universal access fund is one option to provide such an incentive to the private sector with a minimum amount of subsidy. Creation of public access facilities, such as community telecentres and village phone programmes, for the people who cannot afford to buy a telephone

It is essential that the benefit of ICT is shared by all citizens. Access to communications infrastructure, including telephones, computers and internet connections, should be given to all people, not only middle-to-high-income people who live in urban areas.

2.3.Jobs in ICT-enabled businesses

• Many micro-enterprises may be created by a village phone programme and by information kiosks and associated services.

• New ICT-enabled businesses, including e-learning, e-health and e-commerce should be developed to provide relevant information and transaction opportunities to match the local people's needs and to provide access to international markets for local products and services.

• The development and facilitation of ICT-related support industries, such as production and maintenance of PCs and software, networking , and business process outsourcing, such as call centres, medical data maintenance and back-office support services, are essential for the digital revolution and to bridge the digital divide.

The ICT network development of a country demands the creation of a broad range of job opportunities. It is the government duty to promote new ICT-enabled businesses. These businesses will create jobs on the following three different areas:

2.4. Supporting innovation

To develop various ICT-related industries, it is vital to have a broad education programme to encourage innovation and entrepreneurship. Three different aspects of education must be considered:

• promote the use of ICT technologies at school to familiarize the population with them.• create specific ICT university studies to meet the market demand of ICT professionals.• promote innovation and entrepreneurship in all university studies.

A systematic mechanism to encourage and support entrepreneurs in introducing innovative technologies should be promoted. Such initiatives should include technology training organisations, science parks, business incubators, seed funds and ICT clusters.

Innovation and entrepreneurship are crucial to the development of knowledge-based growth.






Goals Possible actions

Creating a liberalized environment Supportive government policies

Achieving universal access

Competition promotion

Universal access fund

Public access facilities

Creating jobsICT Micro-companies

Businesses promotion: ICT, content development and support

Supporting innovation and entrepreneurship

Education programme

Innovation promoting initiatives





4. Sample Ideas to create ICT Businesses Goals Sample Ideas

Creating the Demand Virtuous Cycle

Step 1: Local Governments demand ICT products and services: Connecting Schools & e-Education, e-government, e-health, e-Agriculture; e-Tourism, e-Environment. Step 2: Local companies are created to satisfy these needs.Step 3: Hospitals, Schools, Companies,... See the benefits of these ICT services and products and become regular clients.The original ICT products and services should be selected studying their direct social impact and their long-term business model sustainability

Promoting businesses that act as catalysts for ICT Business Creation

Develop Open-Source software community

Business Process Outsourcing (BPO) Businesses

University Spin-offs Venture Capitals

Supporting innovation and entrepreneurship to create jobs

Technology incubators and seed funds: Step 1:Importing technologies and know-how from partner OCP Technology Centres and IncubatorsStep 2: Seeing Incubators and funds as profitable business investments

Promotion and training using sample business plans: Example: Offering a professional “Internet Cafe Sample Business Plan” to facilitate the Start-up process and investment search for local entrepreneurs