Digital literacy and e-skills: participation in the digital economy
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1 Digital literacy and e-skills: participation in the digital economy
2 Who is IBSA? Innovation & Business Skills Australia (IBSA) is one of eleven Industry Skills Councils (ISCs) funded by the Australian Government to: Provide integrated industry intelligence and advice to governments on workforce development and skills needs Maintain and improve training materials and supporting products and services and Provide advice on skills, training and workforce development to enterprises. IBSA is committed to building the capability of businesses and to ensuring individuals have contemporary skills through the vocational education and training system in telecommunications, education and training, small business administration, finance and the cultural and creative industries. IBSA is an expert intermediary on qualifications, skills needs and workforce planning and works as a central coordination point for the Australian Government s workforce development programs. For further information about this report or any other work being undertaken by Innovation & Business Skills Australia Ltd, please visit Innovation & Business Skills Australia Ltd Level 11, 176 Wellington Parade East Melbourne Victoria 3002 T F Project Contact Susan McCarthy Manager, Escan and Workforce Development E wd@ibsa.org.au Acknowledgment This project is being undertaken with funding provided by the Australian Government through the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). February 2013 Author IBSA wishes to acknowledge the Digital Economy & Regional Futures joint industry research project located at the University of Tasmania. Dr Marcus Bowles E marc.bowles@utas.edu.au With assistance from Dr Owen Nguyen and Judy Crees-Morris.
3 Executive summary This is the final report for the project commissioned by Innovation & Business Skills Australia (IBSA) to confirm and validate, through consultation with experts, existing and new skill sets and competencies that are fundamental to digital literacy. Digital literacy the ability to use information and communications technology (ICT) such as computers and the internet underpins a nation s capacity to provide individuals and groups with equity of access to social opportunity, and is a necessity for participation in the Digital Economy. While this report has achieved its aim to confirm the broad skill sets and competencies underpinning digital literacy in Australia, it is the backdrop to this study that is most likely to become the focus. Outcomes from recent national consultations 1 2 suggest that while national efforts to address affordable access to information technology and broadband is being achieved, efforts to improve ICT skills (called e-skills) are largely struggling to keep pace with demand. This has important implications for national investment in digital literacy skills as competition in the Digital Economy is primarily a function of two factors: affordable access to information technology and high-speed broadband and, secondly, the skills to effectively use ICT. Since the advent of the National Broadband Network (NBN) and efforts to improve access to a high-speed broadband internet connection, IBSA has focused on research, analysis and workforce development strategies that address digital literacy and e-skills in Australia. This research, alongside other work commissioned by the IBSA Board, seeks to more precisely identify the demand for digital literacy skills. It investigates existing variations in digital literacy that could amplify the digital divide, resulting in negative socio-economic effects with people, regions and enterprises having unequal access to infrastructure and the skills to effectively use ICT. 3 The information contained in this report will assist IBSA and governments to focus on digital literacy and enabling participation in the Digital Economy by those groups most affected by low digital literacy. These groups include Australians that: Have low incomes Lack tertiary level education Are older: aged over 55 years Live in rural and remote areas Have Aboriginal or Torres Strait Islander heritage Have a disability; or Have non-english speaking backgrounds. 4 The findings from this project also argue that small businesses should be considered at risk of digital exclusion. The Executive Director of the Council of Small Businesses of Australia (COSBOA) has indicated that the NBN offers an opportunity to create a level playing field and means to build long-term advantage 5. However, over the past two years, IBSA s concern that the digital divide is affecting smaller businesses has been heightened. Research from Sensis e-business Reports in 2011 and show that only around one in five small businesses have a formal digital business strategy. IBSA s own research consistently shows fewer than 15 per cent of businesses employing less than 20 people have any plans to leverage the NBN. 7 Given that smaller businesses contribute over half of industry employment and over one third of Australia s GDP 8, any risk of their non-engagement in the Digital Economy or failure to improve ICT skill levels must be of significant concern. 3
4 Digital literacy and e-skills: participation in the digital economy Figure 1: Digital literacy and e-skills ICT Strategic ICT skills demand specific to strategic level regional, industry or organisational adoption and deployment of ICTs Extension ICT ICT occupations or occupational roles requiring ICT Foundation ICT (digital literacy, work, life, and home) ICT skills demand beyond the ICT industry in occupations that include roles that require ICT adoption and use Equipping individuals with the foundation or essential ICT skills for life and work (Bowles, 2010) 1.1 Summary of findings The aim of this project was to consult experts in order to validate known and new digital literacy skill sets and units of competency required to access and successfully utilise ICTs and the internet. As depicted in Figure 1, ICT skills, otherwise known as e-skills, form the basis for digital literacy across the three broad levels of use shown above. Although the sample size (n = <35) was small due to the targeting of specific experts, the high level findings from this project suggest that: 1. The identified skill sets and units of competency available prior to this project are substantially valid and are reliable indicators for assessing and addressing digital literacy needs. 2. IBSA has a critical role in both national advocacy and promoting the urgency for national decision-makers to form a digital literacy workforce development plan and skills strategy to enable industry to engage in the global economy and also to support the Australian Government s National Digital Economy Strategy. 3. The digital divide may well be widening. Compared with urban Australians who have had prior access to high-speed broadband and the requisite skills to use ICT, individuals and small businesses in NBN early-release rural and regional sites and those groups with historically low digital literacy apparently lack the e-skills required to more rapidly leverage the NBN. In effect, digital literacy is a higher hurdle than anticipated in supporting communities and businesses transition to the point where they can seize the socioeconomic opportunities that participation in the Digital Economy will provide. 4. Demand for digital literacy e-skills spans all three foundation, extension and strategic levels. However, it is noted that: Perspectives from educators with a focus on digital literacy for at-risk groups indigenous communities, people with disabilities, older Australians, etc. tend to rank demand for foundation skills more highly compared with experts representing business interests that tend to place higher importance on the strategic skills. Foundation skill sets and units of competency at Australian Qualification Framework (AQF) levels 1 3 are accurate representations of e-skills in demand. Extension skill sets and units of competency, AQF levels 4 5, are considered accurate and in strong demand but experts working with emerging jobs, e.g. telework and new digital media and content businesses, have proposed additions that will broaden coverage. Strategic skill sets and units of competency, levels AQF 6+, are mostly considered as in-demand but a few are considered too specialised to be in high demand. A number of potential skill sets, units of competency and two new qualifications have been identified to cover gaps perceived by experts to be essential to meet emerging demand from early adopters, entrepreneurs and those taking innovative digital media and content developments into a commercial market. 4
5 5. Additions to existing units of competency and skill sets have been identified. These are reliable indications of demand for critical e-skills that have been supported by parallel research, e.g. the Post- NBN Impact on Business Skills research and report, and should therefore be addressed as soon as possible in training package continuous improvement processes. 6. Closer attention in future continuous improvement review processes is also needed to cover the digital literacy skills required for people to effectively use ICT. 7. While the efforts to address digital literacy (reported above) address specific findings, reporting of a number of general concerns follow. a) Maintaining momentum behind existing initiatives that target groups at risk of exclusion from benefits of the Digital Economy. ICT educators in the public system are very concerned about the reduction of funding from 2013 in the three large, eastern states. The reduction is apparently occurring in foundation digital literacy qualifications and skill sets from Certificates I and II in Information Technology. This could place disadvantaged groups, in particular people from non-english speaking backgrounds and people with disabilities, at increased risk of exclusion from the Digital Economy. b) Best practice in training citizens, groups and small businesses through vastly improved methods. The following five principles for design of digital literacy/ ICT skills training are based on the joint investigation for this report and the Post NBN Impact on Business Skills report: i. Training for adoption of the NBN has to be less about the technology and more about what it can do. Overwhelming feedback was received that ICT training was more about education than action. Equally, those with lower level ICT skills were only too happy to acknowledge their weaknesses but were unhappy that training was more often about the technology or what it could do rather than generating real-world outcomes. ii. Training must be consistent and integrated across all interventions in the region or community. Narrow skilling strategies promoted by discrete, funded programs are ineffective in small communities. For instance, Digital Hub initiatives have a huge task in advancing digital literacy at foundation level e-skills for the elderly, underprivileged and disadvantaged, but effort typically excludes business owners and/or members of local councils. Yet the digital enterprise or digital ready programs usually target e-skills oriented to strategic skills. Most business owners and councillors are members of the community and many openly suggest they need basic digital literacy skills. Skill sets and their delivery should, therefore, be better integrated across e-skill levels and coordinated across all three groups: government, business and citizens. iii. Learning and assessment based on vocational, real-world or business-related needs. Business owners are typically time poor and operating on thin margins. From extensive research on training design for SMEs, a face-to-face course during business hours or for periods of more than 40 to 90 minutes in one day neither encourages access nor is it likely to assist engagement with learning. Yet some courses in one region required business owners to spend up to 6 hours in two 3-hour morning and evening sessions on the same day. iv. One size does not fit all and customisation to individual needs must be encouraged. There is a huge diversity of business typologies and levels of digital literacy in any community. A standardised, supply-driven approach to training is unlikely to work. Any skills strategy therefore has to first establish a baseline of the community/ region, enterprise or individual business participants current e-skill levels and priorities. A training plan and course should be customised to fit these needs and priorities. v. Pedagogies have to be appropriate and create meaningful, enriching and useful learning. There is significant evidence that highly variable learning design is occurring. For many of the providers, there is no evidence that newly developed content is based on solid research or business input, or referenced to institutions with a successful track record in the field, e.g. Australian Communications and Media Authority, ForwardIT, and the Tasmanian Electronic Commerce Centre. Moreover, national funding supporting training activity in the NBN early release sites is promoting the development of this new content and ignoring often significant public investment made in existing solutions. As a minimum requirement, emphasis has to return to effective pedagogies that encourage: Learning from others Peer mentoring and coaching Use of multimedia More than text-based content Learning by doing, and Skilling to produce competency outcomes considered useful by the individual. 9 5
6 Digital literacy and e-skills: participation in the digital economy 1.2 Confirmation of digital literacy skills in demand Through the interviews, group discussions and online feedback site for this project ( information was collated using the e-skills Training Needs Questionnaire. When using the questionnaire, experts were asked to rank skills needs for their businesses using the following six-scale rating: 1. Strongly Disagree 2. Somewhat Disagree 3. Neutral 4. Somewhat Agree 5. Strongly Agree 0. Not Applicable The following figure shows the overall ratings received for each skills cluster. A point of interest is the low statistical significance of the variance between skill sets. While statistically the sample size is small (n = >35), the overall median response of indicates expert respondents agree somewhat or strongly that all skill sets require development. This is much higher than any previous e-skills survey or analysis conducted by IBSA, which until this point have not produced a median score above The underlying trend is that skills in demand prior to NBN connection remain the core requirement post NBN connection; this is the same irrespective of region, industry, business type, size or other variable studied. Figure 2: Overall ranking of priority digital literacy skills needs 1. ecitizen Essential Skills 2. IT users digital literacy Essential Skills Median Internet technology and social networking Essential Skills 4. Small office and home office equipment and network set up Essential Skills 5. Digital content development and collaboration Essential Skills 6. Web development Essential Skills 7. Small office and home equipment and network set up Small office and home network equipment and set up Establish business communications solutions and systems security Sell products and services online 11. Manage business communications solutions and systems security 12. Develop an business case and select appropriate IT strategies and solutions 13. Managing business ICT change project 14. Set up an e-business capability 15. Manage virtual or out-sourced ICT services 16. Establishing sustainable and Green ICT business goals
7 However, parallel research on business skills in NBN early release sites 12, and later validation in this project, has confirmed that new skills may be required. It is noteworthy that these are not at the foundation level. All additions fell into the extension or strategic e-skill levels. The new areas of skills initially validated in this project include: Digital information literacy Commercialise a digital technology product, design or idea Promote virtual access to 3D digitised cultural and community assets Promote digital literacy skills in the local community/group Develop online sales, service and marketing strategies Serve and interact with customers online in real time Develop online sales, service and marketing strategies Manage telework Work with others in a virtual/off-site/telework team. These new skills have been formed into proposed skill sets for packaging and validation into the Information and Communications Technology and/or the Business Services Training Packages with 17 new and 25 enhanced units of competency. This encompasses comprehensive use of existing units to cover technology change and the Digital Economy. An additional three units relate to training and education competencies that an ICT skills coach should be required to hold in order to deliver in a local community. Business growth through technology 1. Regional Telecommunications Independent Review Committee [RTIRC] (March 2012). Regional Telecommunications Review, Empowering digital communities, Department of Broadband, Communications and the Digital Economy, accessed 11 October 2012 at 12_report 2. Bowles, M. (6 December 2012b). Post-NBN Impact on Enterprises and e-skills, IBSA: Melbourne. 3. National Office for the Information Economy (6 June 2001), cited in The Australian Institute for Social Research [AISR] (April 2006). The Digital Divide and Barriers to E-Learning. Report presented to the Digital Bridge Unit, Science, Technology and Innovation Directorate, DFEEST, University of Adelaide, p.4, accessed 12 October 2012 at publicacoes/barriers_digitaldivide.pdf 4. After AISR, 2006: Strong, P. (29 November 2012). Small Business Perspective on the Digital Economy and the NBN rollout, Presentation, The Digital Technology Convention, Crown Casino, EPIC: Melbourne. 6. Available at e-business-report/ 7. Bowles, M. & Wilson, P. (September 2010). Impact of the Digital Economy and the National Broadband Network on Skills, IBSA: Melbourne; Bowles, M. (2012a). NBN in the Enterprise: An investigation into the insurance broking and printing industries, IBSA: Melbourne. 8. Clark, M., Eaton, M., et al (2011). KEY STATISTICS: Australian small business, Department of Innovation, Industry, Science and Research: Canberra, page Bowles, M. 2012b, pp Bowles, M. (2012a). 11. Bowles & Wilson (16 December 2009). Stage 1 Review of the ICA05 Training Package; and Bowles & Wilson (September 2010b). Impact of the Digital Economy and the National Broadband Network on Skills; and Bowles, M. (2012a). 12. Bowles, M. (2012b). 7
8 Innovation & Business Skills Australia Ltd Level 11, 176 Wellington Parade East Melbourne Victoria 3002 T F
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