Digital productivity the next
frontier in the economy
Smart Societies based on Artificial
Intelligence
Artificial Intelligence (AI) developments
are accelerating, and astonishing innovations will emerge during the next few
years as more companies enter this sector and spend money on developing it. AI
applications are already being used in healthcare and gaming, to name just two
sectors adopting this cutting edge technology.
These processes are already
underway through global interconnection, facilitated by technologies such as
the internet, broadband, smartphones and mobility. More importantly for these
particular developments is data analytics through M2M (machine-to-machine),
which allows for better management of the various aspects of our society. This
will lead to interaction between these two developments – and even
integration, merging humans and machines. Artificial intelligence has made
this increasingly possible.
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Some of the predictions and
scenarios discussed might not be exactly right, as we are pushing the
boundaries of our current level of knowledge. Some issues could attract strong
responses from those with different views, and most likely some of the
predictions will end up producing completely different outcomes. But what
really matters is the discussion itself.
Sector and industry transformation
The digital economy began to take
hold a decade or so ago, and some organisations were quick to react, while
others were slow. The naysayers saw the impact of the internet on their
business as a fad that would soon fade away; others, such as Google, Amazon,
Facebook and Yahoo, saw it as the new business model.
A decade later it is clear who was
right and who was wrong. The digital economy is here to stay and those who
fail to participate will become the road-kill on this superhighway. One of the
real threats to traditional business is that those who are embracing the
digital economy have an opportunity to grow their business faster, and thus
widen the gap between the winners and the losers.
The government sector is also at a
crossroads here. Because of their large share in the economy and in national
ICT spending governments can drive transformation and innovation in the
national economy. Furthermore, like the business market, governments
have to face the reality of transformation. For example, the healthcare sector
is rapidly approaching a fiscal cliff. Costs attached to healthcare have grown
to a completely unsustainable level.
Only through digital transformation
can we afford to maintain our hard-earned lifestyle.
E-Health
Efficiency levels in the healthcare
sector are among the lowest in the economy – estimated by IBM to be minus 40%.
Through e-health $30 billion can be saved over a 10-year period. Healthcare is
clearly becoming an area where key killer applications emerge –
applications that utilise truly high-speed broadband networks.
As the financing of the public
health systems in Australia becomes increasingly costly an opportunity exists
to lower costs through more effective use of web services for healthcare
consumers. With widely available and cost-effective ICT developments in data
analytics, M2M and high-speed broadband infrastructure, e-health is enabling
customers to benefit from advances in medical technology and medical services.
The Personally Controlled
Electronic Health Record (PCEHR) is a key enabler in that policy and a report
on these developments is included.
While broader economic conditions
in Australia remain subdued, spending on e-health solutions is likely to
continue.
In the report we also list the key
projects in Australia. We provide an overview of trials, both publicly- and
privately-funded, and initiatives in e-health, with an overview of pilot
programs as well.
E-Education
Education is seen as one of the
main sectors that will benefit from developments in the digital economy, but
so far the results of adaptation have been mixed. While new ICT gear has
entered the classroom it is being used within the traditional classroom learning
system. In order to fully utilise these new technologies a true sector
transformation will need to occur.
Good examples can be seen in
developing economies where there are little or no traditional systems in
place. There, for example, children are using smartphone apps and the internet
to bypass these traditional systems; they are basically using the new
technology for self-education. Schools are then adapting to these new
circumstances. Freely available educational material from many school and university
websites around the world is assisting this development.
It is unlikely that the traditional
education system will be able to cater for the massive requirements generated
by the skills and knowledge acquisition associated with this new environment.
Digital adaptation will be needed to break through the old structures.
Perhaps far more threatening are
the many social and economic changes taking place in society. Not only
is the traditional education system ill-equipped for this transformational process;
the costs involved in running such a system are simply no longer economically
viable.
E-Government
Governments are facing revenue and
expenditure pressures that will only intensify in the coming decades as the
Australian population ages. This is creating an urgent need to reduce costs,
particularly in non-frontline areas such as administration. At the same time
the public sector is at a crossroads – how services have been delivered in the
past, and how they will be delivered in the future. It is also facing
structural changes, such as an increasingly mobile workforce and more complex
service delivery channels.
To deal with these cost pressures
and impending structural changes governments will need to fundamentally change
their policy-making and regulatory frameworks, as well as their approach to
service delivery. Adopting digital technologies will be central to solving
these problems, but it will also require comprehensive reforms to the public
sector. But such reforms are not just about cutting costs. Improvements to
public sector efficiencies and effectiveness, and reduced administration
costs, can also flow on to a healthier national economy and enable improved
services in areas such as health and education.
Many countries around the world are
now well aware of the importance of e-government and many governments have
shown leadership in developing online services. The benefits of e-government
applications can include cutting costs and improving processes and information
flow, but one of its primary aims is to improve customer service for citizens.
The government policy on the
National Broadband Network has also sharpened its focus on the digital economy
and the leadership role the government will have to adopt to kick-start
developments in the area of e-government. This has resulted in the National
Digital Economy Strategy – close to 100 different projects are now being
developed under this policy.
The government has also taken a
leading role in developing a National Cloud Computing Strategy, which in turn
has given the broader industry the confidence needed to start adopting new
opportunities that are arising in that area.
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