Ideas and Examples: Building a Digital Economy

Summary

A few years ago a community group worked to establish the Valley Community Fibre Network in Nova Scotia. One of the most frequently asked questions was "How will we use community–owned fibre networks?" We struggled to put in layman's terms the power of having these connections. Possibly a similar question was asked when the telephone was invented.

Ultimately, the best explanation was to use practical examples — some real, some visionary — that met the questioners in their area of need. Many submissions will address the broad vision of a digital economy. The purpose of this submission is to identify workable ideas and clear examples of moving the digital economy forward.

As a small business owner with 34 years experience in the Information and Communications Technology (ICT) industry, I applaud the federal government for recognizing the link between the digital economy and our country's forward progress, and for soliciting input from Canadians in general.

While the division of the questions into five discussion themes is helpful for the evaluators of this consultation process, it will be the interplay between the themes that will ultimately build up Canada's digital economy.

Our government agencies can enable the digital economy through three key strategies:

1. Enable, recognize and support partnerships of champions who, through innovative thinking, expertise, and organizational networks can provide communities with access to the ICT infrastructure (people, equipment, networks and software) needed to make them more effective.
2. Communicate early and often about opportunities where ICT tools can empower businesses and communities.
3. Enable learners to become leaders in ICT development.

This paper addresses specific questions from Digital Infrastructure, Growing the ICT Industry and Building Digital Skills, repeating the following themes through examples:

1. Support the champions who work in complementary partnerships (e.g. universities and businesses; community groups and regional development authorities; etc.)
2. Use pilot projects supported by community champions
3. Enable work through existing functional organizations
4. Use the ICT tools to "bootstrap" the digital economy
5. Celebrate successes

Submission

Introduction

As the owner of a small business, I provide ICT consulting advice and project management. A few years ago I was part of a community, provincial and federal partnership that ultimately resulted in the Valley Community Fibre Network in Nova Scotia. In my 34 year career in support of Information Technology, I witnessed the birth of the internet and the personal computer, and provided planning and support for the distribution of laptop computers to students at Acadia University in 1996. I witnessed students choosing universities by the ease of use of the web site and campus internet access.

In my current business life, my laptop and iPhone are more important than my filing cabinet, and access to high speed internet is my lifeline. In my personal life, my bill paying and banking are on–line, and I keep in touch with loved ones via the internet.

Theme 1: Innovation Using Digital Technologies

1. Should Canada focus on increasing innovation in some key sectors or focus on providing the foundation for innovation across the economy?

While the primary focus should be on enabling infrastructure, this should be accompanied in parallel by adoption of the infrastructure in key public sector areas. Effective use of targeted infrastructure will result in cost reductions and service improvements.

Example: Advanced network connections (100 MBps) to hospitals (using the least costly networks) will allow speedy transfer of information such as x–rays and MRI results, enable IP videoconferencing amongst hospitals for consultations and between hospitals and teaching institutions, and shared resources, eliminating the need for duplication of some equipment, and cutting costs. Eventually these connections will allow remote diagnosis and even remote operations.

2. Which conditions best incent and promote adoption of ICT by Canadian businesses and public sectors?

ICT used to reduce paperwork, increase business efficiency, reduce costs or provide problem solutions is the best incentive for adoption by business. However, this must be accompanied by ubiquitous and sufficient bandwidth, strategically distributed communications about ICT opportunities, and training in technology usage. For example:

1. On–line forms help the government in data processing, and help businesses in submitting required information (giving them on–line tips, providing feedback from a previous year, etc.) Making sure that remote users have access to sufficient bandwidth helps government as well as business.
2. On–line ICT training assembled through government investment in training content development would help business owners.
3. A central researcher database would help business and also help government. Currently many universities, through their technology transfer offices, have a database of their researchers and their specialty areas. However, if the government were to establish a central database that includes area of research expertise and researcher contact information, a business could search in one place instead of several places to find a nearby researcher. As well, government data analysis could find out which areas most need to be supported, by checking how the database is used. If linked with funding bodies, government could also analyse how innovation is supported.

3. What would a successful digital strategy look like for your firm or sector? What are the barriers to implementation?

A successful digital strategy for the business community would include:

1. Ubiquitous access to networks, minimally 10 MBps
2. Increased on–line accessibility to public sector departments and services
3. Opportunity to learn from others in demonstrations of successful technology usage
4. Elimination of barriers to access for rural communities

4. Once anti–spam legislation, and privacy and copyright amendments are in place, are there new legislative or policy changes needed to deal with emerging technologies and new threats to the online marketplace?

There needs to be a clarification of definitions of fraud and illicit use of networks, and what penalties can be imposed. (e.g. the recent example in the news of a boss accessing an employee's personal email through guessing the password, and then using that email against her. RCMP said that nothing illegal was done. Opening someone else's postal mail is illegal, but accessing someone else's email isn't?)

How can Canada use its regulatory and policy regime to promote Canada as a favourable environment for e–commerce?

1. Establish an ongoing department (that will not be dependent for funding renewal on the whim of each new government) to review progress in digital economy support.
2. Continue to research and build infrastructure through support for an ongoing group with existing expertise (such as CANARIE) in a key role of providing advanced networks through provincial groups.
3. Link federal support of network infrastructure with provincial support in a similar funding formula to building roads, water and sewage systems.
4. Lead by example, by providing increased access to public sector services through the network.
5. Clearly identify steps that are being taken in increasing data network redundancy and security.
6. Work with business support groups (e.g. Chambers of Commerce, Digital–NS, local networking groups such as ACORN–NS, Regional Development Authorities) to provide training for business groups.
7. Refrain from introducing legislation that will inhibit networks
8. Support ICT research and education through targeted funding

Theme 2: Digital Infrastructure

1.What speeds and other service characteristics are needed by users (e.g., consumers, businesses, public sector bodies and communities) and how should Canada set goals for next generation networks?

Whatever speeds are needed now will increase in the coming years as uptake increases, and additional services are offered via networks. There will be movies on demand, remote music jamming, videoconferences, hospital diagnostics, seniors in homes needing their blood pressure taken from doctors, pharmaceutical access to health records, remote operations and international training.

In general, every hospital, university and research institution should, in 2010, have access to 100MBps. Consumers should have access to 10MBps.

Plans should be in place to consider ways to enable Fibre to the Home (FTTH) within a short timeframe.

2. What steps must be taken to meet these goals? Are the current regulatory and legislative frameworks conducive to incenting investment and competition? What are the appropriate roles of stakeholders in the public and private sectors?

There needs to be ongoing support for advanced networks, enabling research in networks, and interconnection between universities, hospitals and innovative businesses. As a national group providing this service, CANARIE has been crippled by having to justify its existence year after year to each new government. It is time to fix support of this group and to work closely with the provincial networks.

3. How best can we ensure that rural and remote communities are not left behind in terms of access to advanced networks and what are the priority areas for attention in these regions?

It is best to work with MPs and Provincial Regional Development Authorities to identify the most needed areas, and support community champions in pilot projects to effectively promote and use networks.

Theme 5: Building Digital Skills

1. What do you see as the most critical challenges in skills development for a digital economy?

Four critical challenges in skills development:

1. Lack of access to sufficient bandwidth and equipment in elementary and secondary schools
2. Lack of curriculum that teaches ICT development skills, not just how to use ICT
3. Lack of teachers trained in how to teach ICT development skills
4. Perception that there are no job opportunities in the ICT areas

2. What is the best way to address these challenges?

1. Fund bandwidth and equipment for schools
2. Fund joint industry/university development of school elementary and secondary curriculum.
3. Work with universities so that new school teachers have ICT training as part of an education degree, and have the option to specialize in ICT teaching, and current teachers have the opportunity to upgrade their skills.
4. Encourage programs that introduce ICT training to children in a fun way (e.g. Acadia University, in partnership with the Nova Scotia Community College, holds an annual robot programming competitions. Youths preparing for this must learn about computer programming, and many math and science concepts.)
5. Promote data about the increasing number of ICT–related opportunities and educate school guidance counsellors who often counsel students against continuing education in ICT–related fields.

3. What can we do to ensure that labour market entrants have digital skills?

To ensure "digital skills",

1. work with industry and universities to define "digital skills" levels (for both ICT users and ICT developers) and to develop on–line content in support of self–assessment and training.
2. aim to train our youth by following suggestions in answer 2 above.

4. What is the best way to ensure the current workforce gets the continuous up–skilling required to remain competitive in the digital economy? Are different tactics required for SMEs versus large enterprises?

Encourage exchange of "up–skill credits" for employer/employee EI costs (e.g. allow employers to subtract a cost equivalent to the cost of ICT training + relevant salary from their EI employer and employee EI remission.). This move will remove the penalty employers feel for encouraging ICT training in their workers.

5. How will the digital economy impact the learning system in Canada? How we teach? How we learn?

Digital tools, when used effectively, can

1. increase revenues (e.g. by engaging remote learners to sign up for courses they can take in their homes and don't have to travel);
2. reduce costs (e.g. have one course taught at two universities using videoconferencing; by providing reusable content);
3. increase relevancy by teaching/industry partnerships (e.g. Acadia University has a Computer Science game development course offered live over the web in which remote students are enrolled, and staff members from HB Studios — a Nova Scotia games development company — participate as student mentors);
4. Increase effectiveness (e.g. using tools such as on–line self–assessment tools, video learning; RSS feeds);
5. Increase timeliness (e.g. business competitive intelligence courses use the web to assess current business information)
6. Bring expertise to remote communities (e.g. Acadia University developed the MusicPath software that connects digital musical instruments across the web. This allowed a Toronto Royal Conservatory teacher to teach a young student who later represented Canada in several international presentations.)

6. What strategies could be employed to address the digital divide?

1. Continue to assign a high priority to expanding the development of ubiquitous data networks to rural communities.
2. Subsidize bandwidth costs in the same way as home heating costs are subsidized for low income families.

Final set of questions:

1. Should we set targets for our made–in–Canada digital strategy? And if so, what should those targets be?

1. By end 2010, establish an ongoing department to support the digital economy. Include support for research and education networks such as CANARIE.
2. By end of 2010, read all of these submissions and compile a response.
3. By end of 2015, complete a strategy to implement ICT training in schools, and ICT training for teachers.

Conclusion

Upgrading our nation in its preparation for meeting the needs of the digital economy should be implemented in steps that clearly provide a return on investment. By providing the ubiquitous underlying infrastructure and working with community champions and existing local organizations, we can reach into the remote areas of Canada's geographically dispersed communities to open up new opportunities in the digital economy.