2014: Not Even a Federal Budget Can Stop Digital Disruption

Author: Marie Johnson. Published on LinkedIn, 21 May 2014.

In black and white, numbers and narrative – the Australian Federal Budget is a stark illustration of the dynamics of digital disruption on the Australian economy and society.

The Budget has sent shockwaves through the information technology and innovation sectors. Eight programs will be terminated from January 2015: covering the Innovation Investment Fund (IIF) and Commercialisation Australia. 

From these cuts, the Budget claims a projected saving of $845.6 million over 5 years. But at what cost? Who in the future years will pay for the opportunity cost? And is it an opportunity lost?

The Budget could be seen to be an “industrial age” Budget, with a heavy emphasis on infrastructure and taxes.

The Budget could be seen to lack an awareness or a narrative of the role of technology and innovation in the economy and on the health and well-being of society.

The Budget speech spoke of “transformation” but we could and should ask, “transformation to what?” and “what is the connected transformation story across the various Budget dimensions?” 

In my opinion, the game has changed – and it is digital that is the game changer.

Government agencies, technologists, innovators and firms expecting “IT” investments and major new procurements clearly articulated in the Budget would be disappointed. It’s not that easy or straightforward an effort to craft the connected story of transformation in the digital age. We see this challenge in the retail and media sectors.

Government is not immune from the dynamics of digital disruption – so, should we wait for the Budget, for the Government to tell the connected story? 

I see the Budget presenting an opportunity – where there is a gap, there is an opportunity. And the opportunity is for the ICT and innovation engines of the economy, to explore how a blueprint for the digital future that would benefit all Australians, could be extracted from this “industrial” age Budget. 

This is a call to action, for a “connected” story begging to be told about Australia in the 21stcentury - how society is enhanced and the whole economy fuelled by technology innovation, commercialisation, and pervasive and seamless technology penetration.

The ICT and innovation engines of the economy present unique insights that can shape and galvanise policy and service delivery strategies.

This is the time to be positive…

Here’s my take…

The Government unveiled an $11.6 billion infrastructure package to be spent on rail and roads over the next five years. This is the second biggest budget investment item after the$20 billion Medical Research Future Fund. 

What the Budget doesn’t and really wouldn’t be expected to talk about is how a connected vision of the Roads of the 21st Century might be realised. 

Surely these Roads to the 21st Century will be far more than tar, built by shovels and earth movers. The Roads of the 21st Century will not be built by the jobs of yesterday or today.

The Roads of the 21st Century will require new thinking, new approaches to policy, new technologies and understanding connectedness – just as the moon shot did.

The Roads of the 21st Century must be smart interactive infrastructure – with sensors connecting to the Internet of Things. Sensors that generate data about usage, traffic flow and contextual data such as the environment. Sensors that connect with public transport networks and assets.

Roads of the 21st Century to carry electric vehicles and self-driving vehicles. All the “roads” of the 21st century will need to connect and be interoperable with – the networks of physical roads, rail, electricity, telecommunications, Internet and payments.

There will need to be an unfailing commitment by all governments to release Government data – as public assets – essential to fuel R&D and innovation in location based and contextually aware services in this $11.6 billion investment in roads of the 21st century.

Australia has been falling behind global progress in the release of public government data, and this is an opportunity cost to the Australian economy. 

The Roads of the 21st Century will be highways of data.

As with the Roads of the 21st Century, the momentum of the $20 billion Medical Research Future Fund to explore and drive solutions to the diseases of the 21 century will require and give rise to new technologies and capabilities.

As with the Roads of the 21st Century, big data, powerful analytics, visualisation and the pervasive use of sensors and connection to Internet of Things will generate new insights. Wearable devices will generate data previously unobtainable and unimagined, providing innovative treatment options and new insight into health and disease.

And as with the Roads of the 21st Century, there will be new policy options as well as challenges not the least of which will be privacy. 

The health of Australians into the future will depend on data, not bureaucracies.

So that we don’t squander this historic and phenomenal investment opportunity - a pivot is required. 

That is, for the government and the ICT and innovation sectors is to do a re-frame of the AU$845.6 million cut to commercialization and innovation support – against the combined $31.6 billion investment in Roads of the 21st Century and the Medical Research Future Fund.

This is a call to action and an opportunity for the ICT and innovation sectors to be actively and pro-actively involved in shaping the agendas and policies for the Roads of the 21stCentury and the Medical Research Future Fund.

For these massive investments to nurture and support innovation and commercialization efforts for new concepts and capabilities needed to drive this transformation agenda. And for an ecosystem of agile and cutting edge start-ups galvanizing around these transformation agendas.

This is not a calling for a re-visit of the Budget numbers. This is calling for a compelling connected story and an executable strategy to deliver the capabilities needed across the economy to achieve the 21st century digital transformation agenda. 

If cutting $845.6 million is seen to be an opportunity cost and lost…

…just imagine the lost opportunity to Australia’s future if the combined $31.6 billion investment in Roads of the 21st Century and the Medical Research Future Fund delivers “dumb” infrastructure, and a research effort not able to leverage the intellectual horse power of NICTA.

This is not the time to be passive…