Business / Higher Education Roundtable. National ICT Forum March Kate Pounder Principal Adviser Technology and Public Policy

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1 Business / Higher Education Roundtable National ICT Forum March 2013 Kate Pounder Principal Adviser Technology and Public Policy

2 Business Investment in ICT Source: ABS, Australian System of National Accounts, Cat no , 2011/12

3 % technology expenditure by sector Internet/cloud based computer socware Computer socware Instrumenta1on and electronics Computer hardware and telecommunica1ons Other ICT related machinery and equipment Automa1on and control equipment 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Mining Services Manufacturing

4 Business readiness for broadband Small Medium Large Total None Low degree Medium degree High degree Source: Ai Group, 2012

5 Contribution of ICT investment to Labour Productivity Growth, Source: OECD, Science, Technology and Industry Scoreboard 2011

6 Australian Labour Productivity by Sector Source: Calculated from ABS National Accounts, September 2012 and Labour Force, Detailed Quarterly, May 2012.

7 Impact tech investment on productivity Produc1vity gains arributable to new technologies, 2009 to 2011 Data source: Ai Group, Business Investment in New Technologies, 2012

8 Factors affecting decision to invest in new technologies Source: Ai Group, 2012

9 Sources of information about new technologies Source: Ai Group 2012

10 Business attitudes to skills Five years ago, my labour force was the guy with the fluoro shirt who came into work at 6 o clock in the morning and left at 2 o clock in the afternoon, and that was his eight hours of work he did. He came into work, picked on the line, went back home. He was happy with his life. My labour force changes from a fluoro shirt guy to a warehouse technician. His job now is he comes in at 6.30 and he looks at knobs and switches and PLCs. He doesn t pick on the line. The whole mindset of my skill set is gone. It s no longer a manual labour perspective, and I ve got to pay top dollar for that and there s a problem. These guys don t exist in Australia. I m literally flying in people from Europe to fix equipment because that skill set does not exist in this country, and that s because we don t have automation.

11 Business attitudes to skills If you talk to the tech companies and you look at tech based roles, one of the things that you find is that there s not enough graduates graduating in IT and therefore we have a skills shortage, therefore a capability gap. The next big boom from the tech sector will be the people that can create the right algorithms, analytics tools that can actually interrogate that data and provide a level of insight.

12 Business attitudes to skills In Australia you tend to get people that are experts in their field, but they can t see left and they can t see right of what they ve actually done and the skills. In engineering you have to be able to look to the left and to the right to be able to put things together.and I think it s that part that s missing in the education sector. The phrase we use is that the IT people have got to be more business savvy and the business people have got to be more technology savvy.

13 Business attitudes to skills Whether it s universities responsibility to train people and graduates, businesses need to invest in their staff and train them and develop them over the years. It s very hard in this environment now, where people are job hopping every two years. Where to invest your human capital is quite challenging. There s another way to achieve that sort of hands-on, practical experience that s increasing the industry engagement. When we stand back, we simply get grads that come in and they re so raw. That is key to us getting the right people coming on board with the skills.

14 Skills, skills and more skills Foundation skills Advanced skills in ICT, STEM, design and marketing Digital literacy and innovation skills Management and leadership skills Asia ready skills