Showing posts with label Connectivity. Show all posts
Showing posts with label Connectivity. Show all posts

Thursday, May 28, 2009

The world connected: Society’s new highway roars up the agenda

The world connected: Society’s new highway roars up the agenda
By Paul Taylor

Published: May 28 2009 21:39 | Last updated: May 28 2009 21:39

Expanded access to fixed and wireless broadband connections is beginning to transform business communications and corporate processes while driving a new round of innovation that could have profound implications worldwide.

“Today, broadband is at the turning point with infrastructure widely available,” said Carl-Henric Svanberg, Ericsson’s chief executive, speaking at a recent event.

“However, we have not realised the full impact and potential for society.

“Over the next 20 to 30 years, it will stimulate innovation across society and will lead to the deployment of completely new solutions,” he said.

Mr Svanberg predicted that broadband would be the society's new highway, with telecommunications contributing to sustainability through innovations such as telepresence, video links which can reduce the need to travel to meetings, for example.

The potential of broadband to streamline business processes and cut costs has also ensured that investment and providing access for individuals and companies has remained top of the political and business agenda.

“The sector is receiving growing attention worldwide as governments recognise the crucial role it will play in economic recovery,” says Dianne Northfield, analyst at Yankee Group, a connectivity research firm. “The emerging ‘Anywhere Network’ – a powerful, pervasive digital network that can connect all people, at any time, in any place – presents an opportunity to create more jobs, increase productivity and develop solutions for healthcare, education, transportation and energy.”

Recent research, including a study commissioned by Nokia Siemens Networks and conducted by LECG, a consultancy, on the economic impact of broadband adoption in Europe and the US over the past 10 years, suggests this emphasis is fully justified.

The LECG Broadband Study directed by Professor Leonard Waverman of London Business School, found that in countries where diffusion and use of information and communications technologies (ICT) were at medium or high levels, the economic benefit from improved penetration was significant.

For example, the study predicts that adding 10 more broadband lines per 100 individuals across the US, or a total of 30m new lines, would raise US GDP by more than $110bn.

Significantly, the LECG study also found that in countries where ICT deployment had been relatively low, broadband has generally been adopted more slowly and has not had a noticeable positive effect on productivity.

It suggested that in these countries, while it may just be a matter of time before the benefits are evident, governments should be active in helping to speed up its adoption.

Another conclusion is that there is a significant role for “demand-side” policies which create incentives for, or lower the costs of, adopting broadband and computing technologies. “Governments and businesses could look at providing training in using ICT and raising awareness of the potential benefits,” it suggests.

But like other studies, the LECG report also suggests that even where broadband has had an impact, there are lessons and warning signs.

First, providing there are no diminishing returns, policies that promote it are policies that promote productivity, innovation and economic growth.

“Innovative ability” is an important source of comparative advantage for advanced economies – thus policies that promote innovation and encourage investment in advanced infrastructure are to the good.

However, it must not just be about infrastructure because the same infrastructure in different, more skilled hands can yield far higher returns.

Second, even within countries such as the US and the UK there is an internal digital divide. This has sometimes been portrayed in terms of access to infrastructure, but many argue there is also a divide in usage and skills.

“Many countries are looking at how to provide universal access to broadband as an assumed driver of economic productivity,” says Prof Waverman. “But far too little attention is given to other key factors. For instance, a US stimulus package that addresses affordable access would have a far greater impact when complemented by emphasising provision of computing devices, ICT training and education.”

The lesson for policy makers, he suggests, is that there needs to be a greater focus on the users of future infrastructure, enhancing the “demand side” of access.

Specifically, for broadband to become a more effective way of enhancing productivity, countries need to invest in improving skills and lowering the costs to businesses of adopting technology and restructuring business models around technology.

Ilkka Lakaniemi, head of global political dialogue and initiatives at Nokia Siemens Networks, says: “The models must take into account the digital divide between northern and southern Europe.” He adds, however, that even in advanced countries, policies that call for universal broadband access should also address issues of skills and awareness.

The LECG study agrees: “useful connectivity” depends not just on the number of people connected to a network or infrastructure, but on how those connected use the network or infrastructure.

Although it is convenient for governments and the telecoms industry to focus on the “supply side” (access), policy makers cannot ignore usage, skills and technological know-how among businesses and consumers.

Ovum, the technology consultancy, reaches similar conclusions in its recent report, “Bridging the broadband divide: challenges and solutions”. Divisions in developed economies are linked to lack of demand and complex interfaces more than limited availability, Ovum suggests.

Globally, overwhelming evidence that broadband is “good for the economy and good for the nation”, has made connecting society an important government goal. In many developed markets, penetration is well above 50 per cent; although growth is slowing. This, says Ovum, is due to a significant minority of people either not being interested in broadband or facing significant barriers.

The report outlines strategies that could help bridge such divides. It says many people are put off by complex devices and interfaces that cater to the technically literate. In addition, users with disabilities are largely under-served. Inclusive design needs to play a much greater role.

It argues that strategies to promote internet use need to work as part of wider inclusion efforts – embedding broadband in education, employment, care and other programmes designed to empower the socially excluded – and connectivity needs community relevance.

In most cases, operators will play a key role in inclusion activity, but this will be in partnership with other commercial companies, public agencies, non-government organisations and user groups.

For example, efforts to target elderly people can involve charities, targeted media coverage, local care agencies and companies specialising in products designed for elderly users.

The debate over the role of government in promoting access continues. For example, a report from the International Telecommunications Union noted that several of the top ICT countries have higher ICT levels than expected, given their income levels. For example, South Korea is outstanding.

“This illustrates how a strong and targeted ICT policy can drive the development of the information society in countries with relatively lower income levels,” the ITU concludes.

What LECG, Ovum and other commentators agree on is that the provision of access, either by private entity or government, will not, on its own, ensure that the full potential of broadband internet access to transform lives, companies and economies is realised. For that, a more holistic approach is needed that transcends all divisions.

ITU: ”Measuring the Information Society – The ICT Development Index, 2009 Edition”, http://www.itu.int/ITU-D/ict/publications/idi/2009/material/IDI2009_w5.pdf

NSN/LECG Connectivity Scorecard, http://www.connectivityscorecard.org/images/uploads/media/TheConnectivityReport2009.pdf

Ovum: Bridging the Digital Divide – less technology, more understanding, contact Maria Di Martino on +44 20 7675 7529 or maria.dimartino@ovum.com.

Copyright The Financial Times Limited 2009

Skills: Business must learn from the new tribe

Skills: Business must learn from the new tribe
By Jessica Twentyman

Published: May 28 2009 21:39 | Last updated: May 28 2009 21:39

“To read the criticisms about the Net Generation,” writes author Don Tapscott in his latest book, Grown Up Digital, “you might conclude that they are a bunch of dull, celebrity-obsessed, net-addicted, shopaholic exhibitionists.”

Such a bleak view, he goes on to say, belies the fact that the children of the baby boomers – now aged between 12 and 30 and reared in an era of digital technologies – are poised to transform society in profound and largely positive ways.

In the workplace, he adds, their aptitude with technology and willingness to collaborate could provide their employers with a real source of competitive advantage.

But whether they are referred to as the Net Generation, digital natives, Millennials or Generation Y, this new tribe of employees can only make its mark if the businesses they work for are able to accommodate and capitalise on a host of new attitudes, beliefs and ways of working.

“Listen to young people,” Mr Tapscott urges business leaders. “Put them in the driver’s seat alongside you when designing work spaces, processes, management systems and collaborative working models.” In other words, be prepared to make big changes in order to unleash the power of these new employees.

Are businesses ready to heed that advice? In truth, many are not, says James Callander, managing director of recruitment consultancy FreshMinds. “This new generation is well-known for its unrestrained ambition, but its largely unparalleled handle on technology presents a significant management challenge,” he says.

“I think one of the biggest problems is that older members of the workforce feel scared of looking foolish in the face of new technology and are threatened by these younger peers who seem to hold all the cards.”

He observes two common approaches to tackling this challenge. “The first is almost a ‘divide and conquer’ approach, consigning technology to different divisions or units in the business. But the internet and mobile technology is now so all-encompassing ... that separation is all but impossible. The second and better approach is to encourage younger workers to train and enfranchise their older colleagues.”

In principle, that makes good sense, because while they may be reluctant to admit it, older business leaders have much to learn from their younger co-workers, says Urs Gasser, executive director at the Berkman Center for Internet and Society at Harvard University and co-author of Born Digital: Understanding the First Generation of Digital Natives.

As principal investigator on the Digital Natives project, an academic collaboration between the Berkman Center and the Research Center for Information Law at the University of St Gallen in Switzerland, he has devoted the past few years to studying how people who grew up immersed in digital technologies interact with the world.

Three characteristics distinguish a digital native in today’s workplace, he says. The first is their relaxed attitude to information disclosure; the second, their aptitude at social networking; and the third, the very different way they process information, as compared with previous generations.

It is this first trait that causes business leaders most concern, according to Prof Gasser. “Digital natives are generally more open about themselves and have fewer reservations about sharing their thoughts and opinions with the world.

“The fear is that this will lead them to share information about their jobs and the organisations they work for, without reflecting on how appropriate it might be to divulge information that might be considered confidential or commercially sensitive.”

Tackling the issue is a matter of education, he argues. Where corporate policies are thoughtfully applied (and observed), that propensity for self-disclosure can be a positive force, building trust between colleagues and opening the door to deeper collaborations.

It also offers organisations a chance to get to know young employees better, to understand what motivates them and the best ways to channel their energies to reap better business results.

But it’s the second and third traits that offer companies the greatest chance to get ahead. “For years, organisations have been investing heavily in knowledge management initiatives to tap into the collective expertise of their workforce, but the results have been mixed.

“Suddenly, the cultural barriers to information sharing are crumbling with the emergence of social networking and the rise of a new workforce that is more than comfortable with working online with their peers to solve a problem.”

This, he says, has huge implications in many aspects of business, such as developing products, identifying market opportunities and generating sales leads.

But the issue of working hours can be contentious, says Claire Schooley, an analyst with IT market analyst firm Forrester Research. “Work-life balance is paramount to Millennials. These young people do not work by the clock – rather, they work by the task. Let them know what they need to do and when assignments need to be done. With mobile technology, they’ll be online at night completing projects.”

As the connected world evolves, it is therefore vital that organisations adapt policies and tools to suit the style of new workers. In economies where the working population is ageing, this may not just be desirable but essential to survival.

Grown Up Digital, by Don Tapscott, McGraw Hill, 2008.

Born Digital: Understanding the First Generation of Digital Natives, by John Palfrey and Urs Gasser, Basic Books, 2008

Copyright The Financial Times Limited 2009

The world connected: Society’s new highway roars up the agenda

The world connected: Society’s new highway roars up the agenda
By Paul Taylor

Published: May 28 2009 21:39 | Last updated: May 28 2009 21:39

Expanded access to fixed and wireless broadband connections is beginning to transform business communications and corporate processes while driving a new round of innovation that could have profound implications worldwide.

“Today, broadband is at the turning point with infrastructure widely available,” said Carl-Henric Svanberg, Ericsson’s chief executive, speaking at a recent event.

“However, we have not realised the full impact and potential for society.

“Over the next 20 to 30 years, it will stimulate innovation across society and will lead to the deployment of completely new solutions,” he said.

Mr Svanberg predicted that broadband would be the society's new highway, with telecommunications contributing to sustainability through innovations such as telepresence, video links which can reduce the need to travel to meetings, for example.

The potential of broadband to streamline business processes and cut costs has also ensured that investment and providing access for individuals and companies has remained top of the political and business agenda.

“The sector is receiving growing attention worldwide as governments recognise the crucial role it will play in economic recovery,” says Dianne Northfield, analyst at Yankee Group, a connectivity research firm. “The emerging ‘Anywhere Network’ – a powerful, pervasive digital network that can connect all people, at any time, in any place – presents an opportunity to create more jobs, increase productivity and develop solutions for healthcare, education, transportation and energy.”

Recent research, including a study commissioned by Nokia Siemens Networks and conducted by LECG, a consultancy, on the economic impact of broadband adoption in Europe and the US over the past 10 years, suggests this emphasis is fully justified.

The LECG Broadband Study directed by Professor Leonard Waverman of London Business School, found that in countries where diffusion and use of information and communications technologies (ICT) were at medium or high levels, the economic benefit from improved penetration was significant.

For example, the study predicts that adding 10 more broadband lines per 100 individuals across the US, or a total of 30m new lines, would raise US GDP by more than $110bn.

Significantly, the LECG study also found that in countries where ICT deployment had been relatively low, broadband has generally been adopted more slowly and has not had a noticeable positive effect on productivity.

It suggested that in these countries, while it may just be a matter of time before the benefits are evident, governments should be active in helping to speed up its adoption.

Another conclusion is that there is a significant role for “demand-side” policies which create incentives for, or lower the costs of, adopting broadband and computing technologies. “Governments and businesses could look at providing training in using ICT and raising awareness of the potential benefits,” it suggests.

But like other studies, the LECG report also suggests that even where broadband has had an impact, there are lessons and warning signs.

First, providing there are no diminishing returns, policies that promote it are policies that promote productivity, innovation and economic growth.

“Innovative ability” is an important source of comparative advantage for advanced economies – thus policies that promote innovation and encourage investment in advanced infrastructure are to the good.

However, it must not just be about infrastructure because the same infrastructure in different, more skilled hands can yield far higher returns.

Second, even within countries such as the US and the UK there is an internal digital divide. This has sometimes been portrayed in terms of access to infrastructure, but many argue there is also a divide in usage and skills.

“Many countries are looking at how to provide universal access to broadband as an assumed driver of economic productivity,” says Prof Waverman. “But far too little attention is given to other key factors. For instance, a US stimulus package that addresses affordable access would have a far greater impact when complemented by emphasising provision of computing devices, ICT training and education.”

The lesson for policy makers, he suggests, is that there needs to be a greater focus on the users of future infrastructure, enhancing the “demand side” of access.

Specifically, for broadband to become a more effective way of enhancing productivity, countries need to invest in improving skills and lowering the costs to businesses of adopting technology and restructuring business models around technology.

Ilkka Lakaniemi, head of global political dialogue and initiatives at Nokia Siemens Networks, says: “The models must take into account the digital divide between northern and southern Europe.” He adds, however, that even in advanced countries, policies that call for universal broadband access should also address issues of skills and awareness.

The LECG study agrees: “useful connectivity” depends not just on the number of people connected to a network or infrastructure, but on how those connected use the network or infrastructure.

Although it is convenient for governments and the telecoms industry to focus on the “supply side” (access), policy makers cannot ignore usage, skills and technological know-how among businesses and consumers.

Ovum, the technology consultancy, reaches similar conclusions in its recent report, “Bridging the broadband divide: challenges and solutions”. Divisions in developed economies are linked to lack of demand and complex interfaces more than limited availability, Ovum suggests.

Globally, overwhelming evidence that broadband is “good for the economy and good for the nation”, has made connecting society an important government goal. In many developed markets, penetration is well above 50 per cent; although growth is slowing. This, says Ovum, is due to a significant minority of people either not being interested in broadband or facing significant barriers.

The report outlines strategies that could help bridge such divides. It says many people are put off by complex devices and interfaces that cater to the technically literate. In addition, users with disabilities are largely under-served. Inclusive design needs to play a much greater role.

It argues that strategies to promote internet use need to work as part of wider inclusion efforts – embedding broadband in education, employment, care and other programmes designed to empower the socially excluded – and connectivity needs community relevance.

In most cases, operators will play a key role in inclusion activity, but this will be in partnership with other commercial companies, public agencies, non-government organisations and user groups.

For example, efforts to target elderly people can involve charities, targeted media coverage, local care agencies and companies specialising in products designed for elderly users.

The debate over the role of government in promoting access continues. For example, a report from the International Telecommunications Union noted that several of the top ICT countries have higher ICT levels than expected, given their income levels. For example, South Korea is outstanding.

“This illustrates how a strong and targeted ICT policy can drive the development of the information society in countries with relatively lower income levels,” the ITU concludes.

What LECG, Ovum and other commentators agree on is that the provision of access, either by private entity or government, will not, on its own, ensure that the full potential of broadband internet access to transform lives, companies and economies is realised. For that, a more holistic approach is needed that transcends all divisions.

ITU: ”Measuring the Information Society – The ICT Development Index, 2009 Edition”, http://www.itu.int/ITU-D/ict/publications/idi/2009/material/IDI2009_w5.pdf

NSN/LECG Connectivity Scorecard, http://www.connectivityscorecard.org/images/uploads/media/TheConnectivityReport2009.pdf

Ovum: Bridging the Digital Divide – less technology, more understanding, contact Maria Di Martino on +44 20 7675 7529 or maria.dimartino@ovum.com.

Copyright The Financial Times Limited 2009