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Economic transformation and productivity through ICT

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The Australian Government is conducting studies to demonstrate the efficiencies and gains that can be obtained from the effective use of information and communications technologies.

Overview

Many recent studies have explored the relationship between ICT investment and productivity gains. The evidence is quite strong in the US but relatively weaker in Australia. The Australian Government conducts studies to investigate this issue to demonstrate the importance of information technology and communications to productivity and to identify how to optimise the technology spend. These studies investigate both the microeconomic benefits of investment in ICT at the firm level as well as the macroeconomic benefits for Australia of effective ICT investment.

Projects

Microeconomic benefits for firms engaging in the information economy

Major studies to assess the benefits that could be gained for Australian businesses investing in ICT have been conducted. These studies have identified significant productivity gains that could be gathered from optimising ICT spend and from adopting electronic commerce. Further research is being conducted to assess firm-level strategies that underpin successful ICT implementation.

Achieving Value from ICT: key management strategies

While there’s clear evidence that information and communications technology (ICT) can substantially improve firm productivity and performance, it’s wrong to assume that the introduction of a new technology is sufficient to provide these benefits. Organisations gain the greatest productivity and other benefits from ICT when it is accompanied by complementary management practices and strategies. This was demonstrated through research undertaken by IT consultancy Opticon Australia and the Australian National University’s National Centre for Information Systems Research. Based on a survey of 1050 firms from 15 industry categories Achieving Value from ICT: key management strategies examines the types of benefits organisations gain from the use of ICT and the management and organisational strategies that accompany effective ICT use.

To view the media release from the Minister for Communications, Information Technology and the Arts click here.

Organisational Achieving Value from ICT: key management strategies

Effective implementation and use of ICT can substantially increase productivity and provide benefits in terms of organisational transformation according to a study that was commissioned by the National Office for the Information Economy (NOIE) from the consulting group Ovum. Through a series of case studies and accompanying analysis the study reflects on the experience of 18 organisations in various industry sectors as they seek to optimise their investment in ICT. The report also examines the sectoral contribution of ICT to productivity growth in the Australian economy and assesses, using modelling techniques, how economic growth might be affected under different ICT productivity scenarios.

To view the media release by the former Minister for Communications, Technology and the Arts, Senator Richard Alston please click here.

The Australian mining and ICT industries: productivity and industry growth

Following on from the study undertaken by Ovum on ICT and productivity, a more detailed study was undertaken examining the contribution of ICT to the Australian mining industry. This study surveys mining companies and mining ICT companies, the use of ICT in various sectors of the industry and ICT's contribution to productivity. It also examines the relationship between the mining industry and the mining ICT sector, in particular the way in which mining ICT providers have developed export markets and the role of their Australian mining clients in that process. The report includes case studies of mining ICT firms that provide maintenance, analytical and design services to the industry.

e-Business case studies

NOIE commissioned Ernst & Young to undertake a series of case studies on the adoption of electronic commerce (e-commerce) by small to medium enterprises (SMEs) in Australia. The study involved interviews with 34 SMEs from different industry groups. The participants were chosen from all areas of Australia including rural and regional areas. ...more

ICT in Australian manufacturing

A study by Howard Partners has found that Australian manufacturers are using and developing ICT to enhance their productivity and to incorporate in new products and services.

Macroeconomic impacts of the information economy

The Australian Government has conducted a number of macroeconomic studies to assess the impacts of the information economy on the wider performance of the Australian economy. Recent studies have has focused on exploring the role of ICT in improving multifactor productivity within Australia. In addition, three other landmark studies each indicate substantial benefits for the Australian economy with businesses involving themselves in the information economy.

Productivity Growth in Service Industries

This report examines productivity growth between 1984–85 and 2001–02 in market oriented service industries. It presents strong indications that the main driver of productivity growth in these sectors has been the rapid progress in information and communications technologies.

Productivity Growth in Australian Manufacturing (March 2004)

It is clear from Australian studies that microeconomic reform has played an important role across the economy in general. However, this study indicates that, for many parts of the manufacturing sector, new technology, including ICT, has made a much more significant direct contribution than was hitherto suspected.

The Role of ICT in Australian MultiFactor Productivity (October 2003)

At the Communications Research Forum 2003 conference, a staff paper was presented that explores the relationships between multifactor productivity growth, information and communications technology, economic output and growth cycles.

Australia's Information Economy: The Big Picture (April 2002)

Increased Australian business involvement in the information economy will generate substantial economy-wide gains, according to a study commissioned by NOIE from the Allen Consulting Group. Based on extensive macro-economic modelling, the report identifies how by 2004-2005 increased business involvement in the information economy will generate substantial economic benefits for Australia

E-commerce Across Australia (Oct 2000)

Will Australia's regions be better off with greater use of e-commerce? E-commerce is expected to neutralise the tyranny of distance and place us all on a level footing in the global marketplace. The challenge is that Australia is made up of many diverse communities with disparate geographic and economic fundamentals. Given differing e-commerce preparedness, will some regions have a 'first mover' advantage over others in the race to join the new knowledge economy? What are the consequences of lagging behind?

E-commerce Beyond 2000 (Feb 2000)

E-commerce is having a significant impact across Australia in terms of reshaping business and restructuring the economy. This project is looking ahead to research and analyse these impacts as they flow through the business sector. An important outcome from this work will be to develop credible, timely responses to these changes through project implementation in key industry sectors. A number of publications have already been released on this research and project implementation has begun in the key transport sector of the economy.

Contact details

General Manager Strategy
Access and Consumer Division
Department of Communications, Information Technology and the Arts
Ph. [+61] 02 6271 1556
Fax: [+61] 02 6271 1780

Document ID: 48592 |
Last modified: 5 February 2008, 4:57pm