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MIT TR - Colombia ICT Ecosystems - Intl Trends in ICT - Rpt 1 - Jan 28 2014

MIT TR - Colombia ICT Ecosystems - Intl Trends in ICT - Rpt 1 - Jan 28 2014



"International ICT Trends" Report for Colombian Ministry of ICT (MinTIC) [www.mintic.gov.co], Minister Diego Molano, Govt of Colombia. Performed by MIT Technology Review, Cambridge, Mass, during ...

"International ICT Trends" Report for Colombian Ministry of ICT (MinTIC) [www.mintic.gov.co], Minister Diego Molano, Govt of Colombia. Performed by MIT Technology Review, Cambridge, Mass, during August 2013 to Feb 2014. Primary author: Cynthia Graber. Co-authors: Erik Pages, Ellen Harpel, Burton Lee, Antoinette Matthews. Report 1 of 2 reports done for MinTIC. Project lead: Antoinette Matthews.



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MIT TR - Colombia ICT Ecosystems - Intl Trends in ICT - Rpt 1 - Jan 28 2014 MIT TR - Colombia ICT Ecosystems - Intl Trends in ICT - Rpt 1 - Jan 28 2014 Document Transcript

  • InternationalTrendsinICT AnInitiativeoftheICTMinistryofColombia Published in 2014
  • TableofContents Introduction 1 Government 9 Education 19 Developing Talent 27 Entrepreneurship 35 Enterprise 45 Health Care 55 National Development 63 Sources 69
  • ICT TRENDS REPORT 1MIT TECHNOLOGY REVIEW ICT Colombia Report Colombia’s Future: ICT Today, one underlying technology has transformed nearly every sector of the world’s economies and governments: information and communications technology, or ICT. ICT facilitates transparent government activity and citizen participation. ICT improves access to health care and the quality of health care overall. ICT enables businesses to improve their logistics, streamline processes, and access new markets. It lies behind improvements in machinery and robotics. The technology provides the means to enact precision agriculture for large landholders and supplies market information and access to smaller-scale farmers. ICT enables students to learn more in their classrooms and to access information from other classrooms around the globe. The ICT industry depends on a workforce educated in the tools of its technology and the necessary business skills, and it is built on meeting the demands of every economic and government sector that will take advantage of its promises and opportunities. In May, 2013, McKinsey Quarterly’s “Ten IT-enabled business trends for the decade ahead” highlighted the industry’s growth: “Consider that the world’s stock of data is now doubling every 20 months; the number of Internet-connected devices has reached 12 billion; and payments by mobile phone are hurtling toward the $1 trillion mark.” Colombia’s economy has been growing rapidly, and its government has helped pull Colombia’s citizens out of poverty. This process has been assisted by dramatically increasing access to ICT over the past four years. Over the coming years, Colombia will continue to implement and optimize ICT throughout government and industry, and to educate students and workers to take advantage of the opportunities presented by this technology-based world. SOURCE:WORLDBANK2006,INFORMATIONANDCOMMUNICATIONS FORDEVELOPMENT:GLOBALTRENDSANDPOLICIES ICT Use and Enterprise Performance in Developing Countries Enterprises Not Using ICT Using ICT Difference Sales Growth (%) Employment Growth (%) Profitability (%) Labor Productivity ($) (value added per worker) 0.4 4.5 4.2 5,288 3.8 5.6 9.3 8,712 +750% +24% +113% +65%
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW2 ICT Colombia Report ICTtoTransformGovernments,Cities,andCitizens Technology can have a transformative power for governments. Moving government services online can increase access to them; make systems more transparent and thus improve citizen confidence and reduce corruption; and provide direct economic benefits. For instance, a rapid online process to allow entrepreneurs to start new businesses may facilitate the growth of startups. And while Colombia has been recognized for the country’s advances in e-government, the potential remains for even greater use of ICT, for example in the judicial system. In addition to making governments more efficient and effective, the use of online information can enable citizens to become greater players in democracy, by alerting local governments to problems in the physical infrastructure (potholes, for instance, or other problems citizens may see around town). Citizens are also increasingly using open data provided by governments to build new apps, such as those that map a city or country’s economic trends. These open data projects can both increase government transparency and enable citizens to push governments to operate more effectively and efficiently. Data is also helping local and national governments become smarter. Cities are installing a variety of technologies to improve the delivery of services and conserve energy. National and regional governments are using massive amounts of data to create city control centers, to recover from natural disasters, and to improve regional policing and security. And as more and more of these functions move online, the protection of the nation’s data—cyber security— becomes increasingly important.
  • ICT TRENDS REPORT 3MIT TECHNOLOGY REVIEW ICT Colombia Report ICTforEducation Technology is making inroads into education today in ways that have the power to captivate and enlighten a new world of digital learners. Reaching from the youngest children to the most mature students, ICT is opening new worlds. The use of technology in the classroom, from early grades up through high school, can bring a tremendous amount of new information to the student. Computers and Internet access not only allow students to enter that universe, but offer schools the opportunity to transform the practice of education, so that students can learn to think creatively and to solve problems in new ways. Some teachers are experimenting with changing the methods of pedagogy entirely. The trend throughout Latin America and the world is to provide every single student with a computer; programs that do so have shown great successes, along with some challenges. Teachers and community members need to be actively trained and engaged to use the systems best and most productively, and every technology program in every school system should have clear goals and methods to ensure meeting its goals. In high schools and university-level courses, the rapid rise of massive online open classrooms, or MOOCs, often taught by the very best minds in a field, holds great potential for Colombia. The greatest opportunity in MOOCs seems to be in so-called blended classrooms, where teachers and classes meet physically and then use these online courses for additional instruction. Colombia could also provide online courses of its own for the Spanish-speaking world, or translate online courses for use within Colombia.
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW4 ICT Colombia Report DevelopingTalent The digital economy calls for job readiness and talents across a wide variety of skill sets: programming and coding, product design, management and leadership. Leaders in all fields must now understand the digital world and be prepared to meet both local and global needs. Supplying a skilled workforce that can match the digital economy’s demands is one of Colombia’s challenges. Colombia is not alone in this respect: around the world, local and national governments, even those in the United States, are concerned about how to train the next generation of workers. Advanced training is not important solely for the traditional ICT businesses; ICTs are also essential in local and national government, in health care, energy, and transportation, and in many other fields. Other countries have tried to train their workforces through many different channels. In some cases, their focus is on the younger generation, offering classes and clubs in high schools to get students excited about the field, so that students can then meet business needs in their local community. Online courses and boot camps can impart needed skills, as Codecademy is already doing in Colombia. Some regions in Mexico, Jalisco for instance, have developed technical certification and training to ready the workforce quickly, at times using international experts in the field from companies such as Microsoft and Cisco Systems. (Both offer international training.) Training in product design, which incorporates a user’s experience and interface with technology, is another key type of training that can help ensure business success. Universities, especially computer engineering departments, have a role to play. In many countries, however, and Colombia is no exception, interest in computer engineering is declining, and university departments are not closely aligned with industry. Some countries have created special research centers to bring various industries together with academic centers, and to attract companies to the areas where they are located. University reform can also help by more closely aligning universities with the jobs that will be available for their students in the future.
  • ICT TRENDS REPORT 5MIT TECHNOLOGY REVIEW ICT Colombia Report ICTforEntrepreneurship Although a thriving entrepreneurial sector is not made up only of ICT-based startups, ICT is the platform behind nearly all successful entrepreneurial ventures. And as such, developing and supporting the ICT ecosystem is vital to Colombia as it continues to advance its economy and create both knowledge and jobs. There are many examples around the world of programs to accelerate developing entrepreneurs, some demonstrating more success than others. In Latin America, one of the most prominent ones thus far is Start-Up Chile: this program has successfully attracted dozens of entrepreneurs from around the world and has begun to create a network of companies and venture capital, but has not been around long enough to evaluate its success substantively. At the least, it has created a buzz around Chile and has served to market Chile’s capabilities and potential as a home for entrepreneurs. Many examples from around the world demonstrate how industry or government can help communities of startups to create new businesses, jobs, and wealth. Almost all new companies need training and support. Some regions may offer natural benefits that have nothing to do with either government or industry, such as the appealing mountains around Boulder, Colorado. And some regions face special challenges; in Latin America, one particular challenge is the lack of access to capital. Hubs of entrepreneurs, from the United States to the United Kingdom to Kenya, create a strong sense of community and attract investments and additional entrepreneurs. As Colombia develops a growing base of emerging business leaders, linking those leaders and creating that community may help propel the country into greater success.
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW6 ICT Colombia Report ICTforEnterprise The role of ICT in enterprise cannot be overestimated: it can expand a business’s markets, enable more efficient use of financial and employee resources, and facilitate transportation logistics and the supply chain. But in Colombia, as in many other nations, some businesses have yet to make optimal use of these transformative technologies, while others, particularly microenterprises, have not yet even begun to use them in the first place. In Colombia ICT can and will play a major role in a number of sectors. This section, on enterprise use of ICT, examines two of them, agriculture and financial services, and concludes with a brief analysis of cloud computing. In agriculture, many different technologies are available to assist operations that range from small-scale farms to major landholdings. For large farms, including those that export their crops, ICT facilitates precision agriculture that employs data analysis to tell farmers when to plant, when to fertilize, and when and how to use pesticides. ICT can also allow farmers to make their supply chains public and transparent for, say, beef; such assurances of quality may allow farmers to reach a broader public. For small-scale farmers, ICT broadens access to markets and market information. Farmers can readily submit texts and/or photographs to request assistance with a variety of crop and animal questions, and can employ smartphone apps to monitor their farms and their herds. In financial services, the expanded use of cell phones and the Internet can help bring the unbanked into the world of banking. Mobile banking and micro-payments to poor consumers can help this population financially and allow them greater access to opportunities in business, health, and home services. Expanded opportunities for banks, enterprises, and consumers using mobile devices and the Internet offer greater ease, efficiency, and market opportunities. Business owners can gain access to a wider variety of services by using cloud computing. Instead of maintaining their own IT infrastructure, businesses and entrepreneurs can employ cloud computing to transcend geographical boundaries and access high-level software at low cost.
  • ICT TRENDS REPORT 7MIT TECHNOLOGY REVIEW ICT Colombia Report ICTforHealthCare The use of ICT in health care offers a great many technological options that can improve patient care, reduce overall health-care costs, and expand the reach of health-care providers outward to poor and rural communities. Telemedicine, by which patient conditions can be monitored at a distance, or patients can access doctors and nurses via phone or video, provides numerous benefits. Remote conferencing can reduce the need for patients to travel to doctor’s offices or hospitals, and allows medical professionals to treat patients far away. New programs—for example a cardiovascular monitoring program in Beijing, China—are now setting up sensors that can continue transmitting readings from patients even after they leave their doctors’ direct care. Electronic health records (EHR) can ease a patient’s transitions between health-care providers without the need to duplicate and transfer physical records, and can also furnish a base of data for analysis of treatment successes and failures. EHR implementation and use is rising around the world; however, there are still challenges to their full implementation, such as interoperability between systems, security, network connectivity, and the design of the templates themselves. The data provided by these records, along with the vast amount of other health-care data amassed in the process of providing health care, is itself transforming health-care policies and practices. The analysis of so-called big data can be seen in programs that compile data on health, illness, and mortality around the world to help advise national (and international) policies. Big data can be used to help diagnose and treat cancer patients, and trends of illnesses and emerging epidemics can be tracked online. The ubiquitous cell phone also has the potential to improve the reach of medical care, as smartphones today, augmented by any number of small pieces of equipment, can serve to measure such functions as vision, blood pressure, pulse, lung function, and many others.
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW8 ICT Colombia Report ICTforNationalDevelopment National policies are crucial for the successful implementation of ICT programs throughout the government and for guiding successful development of industry as well. Different countries have taken a variety of approaches and strategies to ICT policy. Each approach carries with it its own potential benefits and pitfalls. In his book Innovation and the State: Political choice and strategies for growth in Israel, Taiwan, and Ireland, Dan Breznitz, professor of political science at the University of Toronto, lays out the choices that various nations have made. Israel is the only country that has thus far succeeded at a Silicon Valley-style approach, but this has concentrated the resulting wealth in the hands of a few people and created a gap in income. Taiwan followed a top-down plan, heavy on state-funded investment in manufacturing and R&D, and while this has worked for Taiwan, it would be difficult to copy today. Ireland focused on job creation, banking on educating its citizens for the ICT workforce and on its membership in the European Union. The world of ICT is vastly different now than the one that determined the paths of those three countries. Nations such as Brazil and Chile are now taking approaches that involve a variety of policies and initiatives, perhaps more in line with Colombia’s plans for the future. As the World Bank emphasizes in its report ICT for Greater Development Impact, national governments today need to focus on being active participants in advancing ICT. They need to develop skills among their citizens and provide strong leadership in order to help their countries become technologically stronger and more advanced, and thus better able to play an active role in the industries of the future.
  • Government IN THIS SECTION Overview Improving Government through E-Government E-Government: The Case of Estonia Accessing Justice Cities Generate Open Data Accessing and Using Big Data Making Cities Smart Moving the Masses Cyber Security: Protecting the Data ICT has been transforming government throughout developed and wealthier countries, and Colombia has much to gain from continuing and advancing the use of technology in its government. (E-government usually refers to the use of information technology within the government process, while e-governance means allowing citizens to participate in democracy online. E-governance also refers to the policy and institutional culture needs for creating effective e-government.) By 2010, global government spending on IT for e-government was estimated to have reached $423 billion annually, according to a report by Transparency International, and more than 80 percent of businesses and 40 percent of citizens had interacted online with the governments of developed economies. In addition, the majority of World Bank projects on governance reform between 2003 and 2010 included an IT component. 9 STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW10 ICT Colombia Report leverage citizen participation: encour- age applications such as revenue watch, procurement watch and open budget— and use anti-corruption hotlines, utility misuses reporting, and participatory bud- geting.” Kenya is one example of a country that has tried to take the transparency dictum to heart. In creating online appli- cations for starting a business, its dual goals were to cut the lead time and to cut out the demands for bribe money. Kenya first began the transition in 2004. The country aimed to place a variety of services on line, including applications for public sector jobs, new business appli- cations, passport and identity card forms, school examination results, tax returns, and corruption reports. It particularly hoped to facilitate access to services for its poor and rural citizens. The biggest chal- lenge to making this effective, however, has been lack of Internet connectivity or, where it exists, slow and dragging connections. In order to share the costs of moving government services online, Ghana has joined in a public-private partnership to create its electronic tax collection system. The Ghanaian system—which includes tax processing, collecting, refunds, and so on—was created through a partnership of public and private sector organiza- tions that will share both the risk and the revenues from the project. (This imple- mentation is ongoing.) A 2012 report by Transparency Inter- national on e-government (“False dawn, window dressing, or taking transparency to the next level?” by Dieter Zinnbauer) focuses on the issues of transparency and corruption. According to this report, there is not yet much empirical evidence about how effective e-government is in combating corruption. And while online activities may increase transparency, it’s not a panacea: there are “loopholes and workarounds (tailored tenders, leaking of inside information, excessive use of single- vendor exceptions) in countries such as Romania, Czech Republic, or Bulgaria.” Websites have been used in richer countries as well to provide transparency to the government spending process. In the US, recovery.gov is a site on which users can track funds available from the American Recovery and Reinvestment 39 0 10 20 30 40 50 60 70 80 % of all individuals Mexico1 Turkey1 Japan4 Italy Poland Greece United States6 Switzerland5 Czech Republic Korea1 United Kingdom New Zealand Portugal Chile2 Ireland Hungary Spain OECD average Belgium Luxembourg Slovak Republic Slovenia Austria France Estonia Germany Canada1 Netherlands Finland Iceland Sweden Norway Denmark Note: Data from the EU Community Survey covers EU countries plus Iceland, Norway and Turkey. Data in this chart refer to Internet use in the last 12 months for all countries. Individuals aged 16-74 years, except for Canada (16+), Japan (6+) and Switzerland (14+). For Canada, the figure responds to the question “to visit or interact with government websites”. 1) 2010; 2) 2009; 3) 2006; 4) 2005; 5) 2004; 6) 2003. SOURCES:OECDICTDATABASEANDEUROSTATCOMMUNITYSURVEYONICTUSAGEINHOUSEHOLDSANDBYINDIVIDUALS, MAY2012.CANADIANINTERNETUSESURVEY,2010FROMSTATISTICSCANADA. medium-sized businesses greater partici- pation in the procurement process. E-government is also a critical tool for supporting entrepreneurship and business opportunities. One barrier to business creation can be the time neces- sary to create a new business. In Chile, the push for a stronger start-up culture led the government to reduce the time necessary to move through the bureau- cracy of registering a business down to a single day. And in Rwanda, it can take as little as an hour. Providing online access isn’t enough, as most reports stress, and this is true for online business-creation services as well. In response, New York City created a series of Easy Start Business Guides that take entrepreneurs through the steps necessary to create their businesses. In Kansas City, Missouri, they’ve created a web portal called KC BizCare Center that not only details the applicable regula- tions and procedures, but provides links to additional resources such as loan funds and technical assistance. The World Bank report states that ICT can be used to “increase the trans- parency of government activities and ImprovingGovernment throughE-Government n In the developed world, e-government programs are widespread and are con- stantly being streamlined and improved. According to an IBM report, “The Foun- dations of Efficiency: Learning to Do More With Less is the New Normal in Government,” cloud-based services in southwest England consolidated procure- ment, back-office processing, and ser- vice delivery, and saved local governments $100 million. Alameda County, California employed advanced analytics to reduce improper payments by 15 to 20 percent. Emerging and middle economies have focused on IT as a way to streamline pro- cesses, improve citizen access to services, and decrease corruption. According to the World Bank report “ICT for Greater Development Impact,” a simple web site in Brazil has led to 95 percent of citizens filing tax returns and paying their taxes online. The Republic of Korea imple- mented an e-procurement system: these systems can reduce corruption, and in Korea it led to a cost saving of 20 percent a year on government-procured prod- ucts. The system also allows smaller and ICT for Government Individuals Using the Internet to Obtain Information from Public Authorities’ Websites, 2011 (or latest available year) SOURCE:OECDICTDATABASEANDEUROSTATCOMMUNITYSURVEYONICTUSAGEIN HOUSEHOLDSANDBYINDIVIDUALS,MAY2012.CANADIANINTERNETUSESURVEY,2010FROM STATISTICSCANADA.FROMPAGE119OFTHEOECDINTERNETECONOMYOUTLOOK.
  • ICT TRENDS REPORT 11MIT TECHNOLOGY REVIEW ICT Colombia ReportICT for Government NYC BigApps Apps for Californians M.T.A. App Quest SF Data Challenge Apps for Baltimore Apps 4 Climate Action Apps for Democracy US federal: Apps for America Apps for the Army Apps for Healthy Kids Apps for Inclusion Apps Against Abuse Apps for the Environment Apps for Communities SMART Apps for Health Apps for Entrepreneurs Apps for Heroes Apps4Edmonton Rio Apps Apps for Finland Apps for Denmark Apps for Norway Apps for Belgium Apps4Berlin Apps for Amsterdam Apps for North Holland Apps for Good Apps for NSW Australia MashupAustralia App My State Victoria AU Apps4Africa Civic Apps for Greater Portland Apps4Ottawa Apps 4 Metro Chicago Act (an economic stimulus plan enacted by the US government in 2009) and how they are spent on contracts, grants, and loans. The World Bank also stresses the importance of back-end systems—inte- grating IT throughout government offices and sectors—and suggests that heavy software development for such sectors is no longer an issue, “because many best- practice applications already exist in the market.” The report writers continue: “In the open source market and the software-as-a-service space, governments can buy IT services rather than produce and manage IT services themselves. Gov- ernments may, however, need to develop capacity to manage the transition.” Such capacity will include, for instance, making sure that the necessary hardware and software are in place and passing and implementing laws for elec- tronic transactions and security. Simply creating access is not enough, according to the World Bank. Access must be facilitated by the design and imple- mentation of software, access to Internet services by the general public, and advo- cacy and education, to make sure that citizens know how to access and use the new systems. Decisions must be made about how the data will be both secured and accessed. The World Bank’s own evaluation of projects from 2003-2010 reports that “only about half” of the ICT in gover- nance projects fulfill their goals, and a 2011 study in Harvard Business Review focusing on massive private investment in IT programs (“Why your IT project may be riskier than you think”) highlights how cost overruns can stretch into many times the initial planned investment, and cause time delays to match. In “E-government and e-governance,” a chapter of the book Information and Communication Technology for Devel- opment, chapter authors James Guida and Martin Crow also discuss issues that can derail projects, including competing interests among stakeholders, coordina- tion problems among the different sectors involved, lack of appropriate coordination between central and local government, and resistance from local officials. This chapter also discusses, however, a significant benefit for users: streamlin- ing their access to government services through a “one-stop-shopping” portal. “This way, citizens would not need to know what department they are deal- ing with in order to get the service they need. This approach is about innovating, not just automating.” New York City, for example, developed a new website that consolidates health and human services programs, through which users can access 35 city, state, and federal programs. The chapter “E-government and e-governance” concludes, “There is no ‘one-size-fits-all model for e-govern- ment development. Each country needs to devise its own e-government strategy and programs, taking into consideration its political, economic and social priorities and its financial, human and techno- logical capacities… The key to effective e-government implementation is a multi- pronged approach, based on technology as well as human development.” E-Government: TheCaseofEstonia n Estonia is often considered a model of e-government implementation. The Uni- versity of Massachusetts’s Meelis Kitsing critically analyzes the Estonian story in a paper entitled “An Evaluation of E-Gov- ernment in Estonia,” prepared for a 2010 Internet, Politics and Policy conference. Kitsing writes that Estonia “does not have a e-government strategy, nor did it create a special office or ministry for informa- tion society, as was the case in Slovenia, for instance.” There was little creation of specific IT governance laws. Rather, the officials focused on implementing elec- tronic services. Some key facts led to Estonia’s suc- cess. First, Estonia already had a strong community of IT specialists and scien- tists and a strong culture and tradition of software development and hacking, along with government officials familiar with the IT industry. For decades, Estonia’s Institute of Cybernetics, under the former Soviet regime, had focused strongly on computer programming. As early as 1998, its various government departments were linked by secure access to the Internet and intranet. In addition, Estonia’s relatively smooth transition to e-government ser- vices relied on the already strong system of e-banking in place in the country. By 2002, more than half of Estonia’s citizens used Internet banking, and government agencies began to use the banking ID verification system. Citizens were able to access government services such as pay- ing taxes while logged into the banking system. Now, this system has transitioned to government-issued electronic ID cards. But this overarching view of Estonia hides many of the challenges in its sys- tem, writes Kitsing. For one, their use of IT in a number of government depart- ments is still uneven, and as of 2007 the SOURCE:SOURCE:FORRESTERRESEARCH,INC.,GOVERNMENTS EMBRACENEWMODESOFCONSTITUENTENGAGEMENT,APRIL2012 Competitions Use Open Government Data for App Creation
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW12 ICT Colombia Report CitiesGenerate OpenData n City governments are enlisting tech- nology to ask their citizens for help in directing government priorities and solu- tions. Bogotá launched such an initia- tive, called “Hacemos Latir a Bogotá,” in 2011, in advance of the municipal elec- tion. In this campaign, citizens were asked to point out problem areas on a map of Bogotá, to share ideas for solutions, and to propose actions by the city government. Though not binding, the public came up with five major objectives for the mayoral candidates. In many cities today, public participa- tion is meant to help city officials quickly respond to problems such as potholes or other infrastructure needs. This has led to the development of city-specific apps, such as CitySourced, SeeClickFix, and Citizens Connect. Via CitySourced, resi- dents take photos of problems such as open manholes with smartphones, tag- ging each with a time-stamp and category. The city servers then can direct the photo to the appropriate city official. According to the company, this electronic measure can dramatically reduce costs to a city in processing complaints. CitySourced is being implemented in a number of cities in California. But citizens can be engaged in other ways as well. City governments are begin- ning to open data that was previously difficult to obtain, or even off limits, in the past. And they are asking members of the public for help in solving urban challenges. For instance, in 2011 Dublin released a number of its previously private city datasets to the public, including water flow, energy monitoring, air and water pollution, noise maps, and parking and traffic data, using a platform called Dub- linked. This was part of a partnership with exchange of official documents was still limited because different departments had bought different, and incompatible, software programs. And for many years after the implementation of e-govern- ment services, a number of processes, such as replacing a driver’s license, still had to be carried out on paper. The Esto- nian system, writes Kitsing, has also been weak on participatory democracy, that is, on using technology to encourage citizens to participate in, for instance, suggesting new laws or changes to existing laws, or more generally in engaging the public in government processes. Electronic vot- ing has also been weak, in part because “voters do not simply need the access to the computer, but the use of ID-card is required as well,” which would require an individual purchase of an ID-card reader. Some such readers don’t work well or may be incompatible with browsers, which could lead to a decrease in voting. ICT for Government In Colombia, a post-conflict society, the ability of citizens to access the Justice Department, and to be provided with a responsive, transparent system, can be of key importance. Not only is Colombia’s current justice system bogged down by bureaucracy, but the entire judiciary relies on the use of paper. A transformation to a computerized system could lead to more efficient passage through the justice system and greater transparency. As the examples below demonstrate, however, this transformation needs to be slow and deliberate so as to avoid the problems that have plagued other countries. In “Justice Systems and ICT: What can be learned from Europe?” Marco Velicogna writes that ICT “is considered one of the key elements to significantly improve the administration of justice.” He continues, “ICT can be used to enhance efficiency, access, timeliness, transparency and accountability, helping the judiciaries to provide adequate services.” But when Velicogna wrote in 2007, many such e-justice systems had failed to reach these goals because of failures of both hardware and software to meet their needs. One concern certainly still relevant today is this: “Unfortunately, the dissemination of such technologies, when not followed by other actions, such as training and redesign of working practices, has often resulted in very limited impact on efficiency.” In the 2013 article, “Risk Factors in e-justice information systems,” by João Rosa, Cláudio Teixeira, and Joaquim Sousa Pinto, the authors, reporting on their own efforts in the Republic of Cabo Verde (Cape Verde Islands), present a number of case studies on ICT in the judiciary. They describe the comprehensive and effective development of such a system in Singapore, whose system shifted from a mainframe approach to a web-based one; in the process, Singapore upgraded its infrastructure as well. According to Rosa, Teixeira, and Sousa Pinto, it seems to be working well and effectively. Brazil’s justice system is decentralized to its states. As the ICT infrastructure grew, challenges arose with interoperability of the state systems. As a result, Brazil attempted to create a national virtual system. This, however, was a disaster, as André Andrade wrote in his report, “Organizational structure and ICT strategies in the Brazilian judiciary system.” The new system had a steep learning curve, Brazil lost more than $50 million, and the system was abandoned in 2010. Brazil is now in a transition phase to a web-based national system; part of implementing it requires upgrading the telecommunications network to a higher bandwidth. Like Singapore, Brazil is implementing a public key infrastructure (PKI) to improve the security of the system. AccessingJustice
  • ICT TRENDS REPORT 13MIT TECHNOLOGY REVIEW ICT Colombia Report IBM’s Smarter Cities Technology Cen- ter, based in Dublin. The open data also includes Dublin’s budget and finances, and in 2013 the city increased the munic- ipal budget data available, employing a more user-friendly online interface designed by the Silicon Valley company OpenGov. And Dublin is just one example of cit- ies around the world participating in this new “open data” model of transparent government. In Chicago, such initiatives have resulted in apps that, for instance, track trends in the city’s economy or crime in Chicago’s 50 wards. The United King- dom has undertaken a major open data initiative: The government intends this open data to make the government more accountable to its citizens, to improve services and reduce waste, to encour- age economic growth, and to engage the public. In order to do so, in two years the UK’s Government Digital Service hired more than 200 employees, including some with extensive digital experience and talent, to completely transform its government-citizen digital interactions. Today, the UK government’s open data project is one of the world’s largest sets of public data. (“Government Digital Service: the best startup in Europe we can’t invest in,” November, 2013, The Guardian.) In what’s known as “hacktivism,” cities are now sponsoring contests to tap into the creativity of local entrepre- neurs. New York City holds a Big Apps NYC coding competition—the fourth was held in 2013—and in 2013 the winning app received $150,000. The US National Day of Civic Hacking is an event that stretches over 24 hours around the US and its local, state, and federal governments, attracting inter- ested and technologically savvy citizens. Code4America, founded in 2009, has a number of projects: in one, web devel- opers, designers, and entrepreneurs are awarded fellowships in which they are paired up with cities to design new apps and open databases, and create events to encourage citizen participation. Code- 4America also hosts an accelerator for new “civic startups” and a so-called Bri- gade that offers a national platform for technology experts interested in public governance to work together. Similarly, Code4Europe matches classes of fellows with interested cities and organizes open innovation events. With some additional hardware, citizens can be deployed as scientific mon- itors. For instance, students in Beijing, a notoriously polluted city, have hooked sensors onto kites, which citizens can fly to get up-to-date readings of air quality. That information can then be centralized and analyzed. Citizens in Massachusetts ICT for Government In Belgium, according to the “Risk Factors” article, early attempts at e-justice were unsuccessful, because of a lack of high- level planning and incompatible programs and systems. The most recent Belgian attempt began in 2000, and seemed to address all possible technical and security problems from the beginning (such as the need to change the minds of its users, including judges), but the program was halted in 2007: “The main argument was that the development team could not solve the technical problems inherent to such a project.” The authors write that the system might have been better served by following the Singapore model, where the government addressed relatively minor matters with ICT before moving on to larger-scale criminal and civil issues. Portugal followed this model as well—beginning with smaller civil processes before proceeding to criminal actions—and this development, according to the authors, appears to be proving successful. The 2012 Transparency International Report False Dawn by Dieter Zinnbauer spends a fair amount of time on the issue of the use of ICT in judiciary systems. Such systems, encompassing “electronic docket and case management systems, as well as the electronic recording of court proceedings,” have proved important in deterring some manipulations of court proceedings—bringing transparency to the proceedings of assigning judges to cases, reducing backlogs, and making entire systems at once more efficient and more transparent. In the Czech Republic, as of July 2012, for instance, all official correspondence from courts and other official public authorities was to be deposited in “mandatory electronic data depository boxes.” Zinnbauer also lists electronic case files that have been rolled out in Costa Rica, proceedings in Nigeria that have been electronically recorded, and an electronic case administration information system that has been built in the Philippines. India has a “very ambitious—and ongoing—initiative to wire up its more than 15,000 courts.” New technologies are making these transitions possible. For instance, the Silicon Valley company Clearwell Systems can scan a half million documents and, from them, determine the 0.5 percent that are relevant for a particular trial; this effort, which takes only days, would in theory take an entire team of lawyers weeks to accomplish. (“Ten IT-enabled business trends for the decade ahead,” McKinsey and Co., May, 2013.) Transparency International says that it is not yet documented how effective these national initiatives are in combating corruption, but they have clearly enhanced and eased workflows and supported the transparency of those workflows. In Belgium, according to the “Risk Factors” article, early attempts at e-justice were unsuccessful, because of a lack of high- level planning and incompatible programs and systems. The most recent Belgian attempt began in 2000, and seemed to address all possible technical and security problems from the beginning (such as the need to change the minds of its users, including judges), but the program was halted in 2007: “The main argument was that the development team could not solve the technical problems inherent to such a project.” The authors write that the system might have been better served by following the Singapore model, where the government addressed relatively minor matters with ICT before moving on to larger-scale criminal and civil issues. Portugal followed this model as well—beginning with smaller civil processes before proceeding to criminal actions—and this development, according to the authors, appears to be proving successful. The 2012 Transparency International Report False Dawn by Dieter Zinnbauer spends a fair amount of time on the issue of the use of ICT in judiciary systems. Such systems, encompassing “electronic docket and case management systems, as well as the electronic recording of court proceedings,” have proved important in deterring some manipulations of court proceedings—bringing transparency to the proceedings of assigning judges to cases, reducing backlogs, and making entire systems at once more efficient and more transparent. In the Czech Republic, as of July 2012, for instance, all official correspondence from courts and other official public authorities was to be deposited in “mandatory electronic data depository boxes.” Zinnbauer also lists electronic case files that have been rolled out in Costa Rica, proceedings in Nigeria that have been electronically recorded, and an electronic case administration information system that has been built in the Philippines. India has a “very ambitious—and ongoing—initiative to wire up its more than 15,000 courts.” New technologies are making these transitions possible. For instance, the Silicon Valley company Clearwell Systems can scan a half million documents and, from them, determine the 0.5 percent that are relevant for a particular trial; this effort, which takes only days, would in theory take an entire team of lawyers weeks to accomplish. (“Ten IT-enabled business trends for the decade ahead,” McKinsey and Co., May, 2013.) Transparency International says that it is not yet documented how effective these national initiatives are in combating corruption, but they have clearly enhanced and eased workflows and supported the transparency of those workflows.
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW14 ICT Colombia Report Education 890–1,180 720–920 520–1,470 340–580 240–510 300-450 210–280 3,220–5,390 Transportation Consumer products Electricity Oil and gas Health care1 Consumer Finance Total Potential Value in Open Data, $ billion The values here are drawn from examples of open-data potential and are not a comprehensive sizing of potential value across the two sectors. 1 Includes US values only. help the government monitor the water quality of local rivers. One of the challenges in this entire open data movement, writes Andrew Isaacson, an engineer at the data analyt- ics company Palantir (“Beyond Alphabet Soup: Five Guidelines for Data Sharing”), is that the data need to be presented in a raw, usable manner, be both machine- and human-readable, and must use an open data format. Such systems also need to be accompanied by privacy measures— making sure the data does not violate any citizen’s privacy—and, he believes, by a control system that allows the operators to know who is requesting and accessing the data (in order to, for instance, limit access to sensitive information). The World Bank ICT report stresses that governments will need to adapt the appropriate legal and regulatory frame- works, including “open government directives, freedom of information legis- lation, information security and privacy, and in many cases technology infrastruc- ture (open standards, interoperability frameworks, information security and privacy) to make these initiatives sus- tainable.” An additional challenge to the open data movement is the lack of data and case studies on the effects of such programs. In January 2013, Google’s foundation announced a $2.1 million grant to the Sunlight Foundation, an organization that focuses on the use of ICT and transpar- ency in government in the US, to analyze case studies on the effects of open-data technology in governance. AccessingandUsing BigData n At times, even if city officials want to make data public, they don’t themselves have access to the needed data. To com- bat poverty, provide needed services, and increase transparency (and, as a result, decrease corruption), cities need up-to- date, real-time, detailed data about their communities. In response, city officials are employ- ing mobile technology to collect the needed statistics. One such project has been taking place in Nigeria, a partner- ship of the government with technical assistance from the Earth Institute at Columbia University. The project’s goals: to develop a timely, complete, and accu- rate map of services and issues related to communities, particularly to poor regions, around the country. The project is also intended to increase transparency, and enhance local planning and access to resources. To accomplish its goals, the project has equipped hundreds of gov- ernment workers with smartphones with GPS. The workers visit sites such as schools, health facilities, and water access locations, where they take photos, record the GPS coordinates, and fill in an online form about how the site is equipped to deliver the needed service. By Janu- ary of 2013, when Columbia published the report, “Cellular Citizenship,” in the Harvard International Review, the gov- ernment had acquired data from more than 250 thousand locations. In general, according to the Columbia University report, most data collection projects rely on paper, take a great deal of time, and are out of date by the time the results are collected and analyzed. In contrast, this online system can give a real-time picture of the challenges faced by the country’s communities, and can allow participants to hold the government accountable for results. A photo from the site can also show clearly whether a prom- ised government-contracted service was provided or not. To more fully realize the promise of these types of approaches, the Columbia authors write that in the future public infrastructure items will need to include QR codes, or IDs that can be scanned with a smartphone, so that they can be accurately recognized. One particular challenge the authors note is that this system also necessitates the sharing of data between government ministries, which can take time to get approved and can run into political chal- lenges. They say the solution is to make all government data open access. As they conclude, “One of the keys to closing the poverty gap is to provide planners with increased access to accurate and up-to- date data that mobile data collection systems are making increasingly possible.” A similar project took place in Tan- zania, a coordinated effort by the World Bank and the nonprofit Twaweza. Here mappers trained local community members, and even established a com- munity-mapping curriculum at a local university. The result was a new open- source data set with thousands of points of data on roads, schools, trash dumps, and other features. Citizens are also providing real-time data to help governments deal with cri- ses. Crowd-sourcing, through sites such as Ushahidi (created in Kenya in 2008), has enabled rapid data collection via mobile phones in crises such as the Haitian earth- quake and the Kenya riots. There are limitations to such approaches, however, says Ari Gesher, an engineer at the data integration company Palantir. For one thing, this method relies on locals who have access to usable phones, which might not represent the reality of the situation. SOURCE:MCKINSEYGLOBALINSTITUTEANALYSIS Open Data can Help Unlock $3 Trillion to $5 Trillion in Economic Value Annually Seven Sectors ICT for Government
  • ICT TRENDS REPORT 15MIT TECHNOLOGY REVIEW ICT Colombia Report During Hurricane Sandy, for instance, the greatest twitter concentration was in Manhattan, while there was greater harm but less social media content in poorer areas such as Far Rockaway, with fewer smartphones and Twitter accounts. In addition, says Gesher, “people might even be spitting out good information about what’s going on, but they’re doing it in a form” that computers can’t recognize, or in nonstandard forms that prevent quick integration. Still, as the World Bank stresses, ICT is a necessary and key part of effective disaster risk management. Such analytics are also providing information for law enforcement. In the study “Predictive Policing: Preventing Crime with Data and Analytics” by Jenni- fer Bachner at Johns Hopkins University (and sponsored by the IBM Center for the Business of Government), Bachner describes ways in which data analytics and modeling is assisting policing. For instance, in Santa Cruz, California, police departments partnered with social sci- entists to determine the areas with the greatest likelihood of experiencing crime, and in Richmond, Virginia, the police “used social network analysis to cut off a suspect’s resources and drive the sus- pect to turn himself into the police.” To enable such a system, the recommenda- tions include treating technology as an addition to policing (not a substitution for it), making sure that the software is available to police officials out on their beats, and ensuring the data are timely and accurate. MakingCitiesSmart n Technology that enables a more effective, efficient government is also transforming cities themselves, making cities smarter. Probably the most advanced example of a smart city today is Santander, a small coastal city of 180 thousand on Spain’s northern Atlantic coast. The pilot project, headed by Luis Muñoz, an IT professor at the University of Cantabria, received $11 million in grants from the European Union to test the viability of smart cities, prior to rolling out the initiative elsewhere in Europe. The result: 12 thousand sensors on buildings, beneath parking lots, and attached to street lamps and poles. The data collected from those sen- sors—including the temperature and humidity, the movement of vehicles and people, the light outdoors—is regularly transmitted to a central office. Vehicles such as buses, taxis, and police cars trans- mit their locations and speed, along with air pollution data captured from the envi- ronment outside the vehicle. If residents choose, they may participate by down- loading an app for their cell phones. The information is compiled and available for use both by city officials and by citizens. Officials know the locations of traffic jams and accidents, and where Managing Disasters with ICT Palantir is a company with expertise in data integration and analysis, working on huge, sensitive caches of information for clients as massive as the CIA and international banks. Now the company is helping nonprofits and city officials deal with disasters. They are part of The Rockefeller Foundation’s initiative called 100 Resilient Cities, announced in September 2013 at the Clinton Global Initiative. Its goal is to collect weather, demographic, and census data and “fuse that [data] so the city itself generates its own operations…so that when disaster strikes they can actually respond more effectively,” according to Palantir engineer Ari Gesher. The initiative focuses on cities that could suffer extreme weather events or terrorism. Many recoveries, Gesher says, are a race against time, determining what needs to be dealt with first to effectively save as many structures (or, at times, people) as possible. This builds off Palantir’s expertise in situations such as Hurricane Sandy, when they equipped Team Rubicon, a nonprofit group of veterans who provide disaster relief, with a way to generalize and centralize the gathering of information from tablets and mobile phones to dispatch the best teams to deal with the damage. “Palantir hadn’t been configured for this,” says Gesher. “We built it on the spot, and five or six days later, they were doing disaster relief in a way that nobody had ever done before.” Probably the most advanced example of a smart city today is Santander, a small coastal city of 180 thousand on Spain’s northern Atlantic coast. COURTESYOFTHEUNIVERSITYOFCANTABRIA ICT for Government
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW16 ICT Colombia Report light bulbs need to be replaced. Garbage collectors know whether or not to pick up trash, depending on whether dump- sters are full. The ubiquitous sensors have led to automatic systems for dim- ming lights and watering park plants. And residents—via a Pulse of the City app—can access bus information, city cultural events, and even historical information about the town. They can contribute to the betterment of the city by anonymously sending photos of what- ever needs to be fixed. The results thus far have been positive: within only a month of imple- mentation, the city saved 25 percent on electricity costs and 20 percent on garbage collection. Many other cities have undertaken such initiatives as well, though not as comprehensively as Santander. In Singa- pore, sensors, cameras, and GPS devices are used to promote rapid traffic flow. In Rio de Janeiro, a city control center receives up-to-date streaming informa- tion from dozens of city agencies and from subway stations, traffic lights, and utilities. And in Estonia, residents who park in a city lot text the car’s number and the lot’s code to the parking authority; the parking fees are then added to their phone bills. Many major companies are getting into the business of smart cities, including IBM, Cisco, Siemens, Microsoft, General Electric, Hitachi, and Singapore Technologies. IBM’s Katharine Frase, CTO of IBM Public Sector (their Smarter Cities effort) observes that cities are made up of “infra- structure, water, services, people. How can data analytics and IT help all of these be more effective, not just more efficient?” And the company has turned its attention to solving that problem. For example, IBM held a Smarter Cities Challenge Grants competition and provided expert counsel to 33 cities around the world in 2012. The projects include plans in Nairobi, Kenya to optimize Kenya’s water system and Nairobi’s traffic; and analyses of data in Louisville, Kentucky to identify, predict, and mitigate asthma. In addition, IBM Research is building a new lab in Kenya to work on Next-Generation Public Sec- tor solutions, as they’ve titled the effort, to enable multiple government agencies to easily share information (something that remains a challenge today). Barcelona has pioneered smart ini- tiatives such as smart parking and bus networks, and is working with the inter- national company Cisco to make the city a model of smart initiatives to improve its services, such as monitoring energy consumption in buildings and develop- ing more efficient use of water, including rainwater. As part of the initiative, Cisco is now establishing the new Barcelona Insti- tute of Technology for the Habitat, which will collaborate with private companies to study innovations in urban solutions. Cisco is also helping South Korea build a new city called Songo, a $35 billion dol- lar project, with a variety of cutting-edge technologies, including extensive sensors distributed throughout the city. Visualizing Government Data All that data produced in cities can be overwhelming for citizens to make use of. But what if it were easily visualized? That’s the idea behind César Hidalgo’s Macro Connections group at the MIT Media Lab. Hidalgo and his collaborators created DataViva for the local government in the Brazilian state of Minas Gerais. The DataViva site still provides many options, but users can visualize the economy of the past decade as a way to help the government “sift through some of the huge amounts of economic data available from the federal government,” according to the December 2013 article on the Fast Company website, “New MIT Media Lab Tool Lets Anyone Visualize Unwieldy Data.” André Barrence, director of the Minas Gerais office of strategic priorities, told Fast Company that the data proved so useful that “we thought it would be much more interesting if we could open up the data for the entire country rather than just ourselves.” SOURCE:MITMEDIALAB ICT for Government
  • ICT TRENDS REPORT 17MIT TECHNOLOGY REVIEW ICT Colombia Report All the data amassed by city govern- ments can be put to good use to make those governments more effective and efficient. Meeting that goal is the focus of a new center at New York University, called the Center for Urban Studies and Progress, founded by Mayor Michael Bloomberg. The program, which grants an intensive one- year masters degree, aims to breed a new generation of urban scientists, who can dive into massive data sources and use the infor- mation to develop solutions to complex and growing urban problems. NYU sees this as an opportunity to enable the university— and New York itself—to become a leader in this rapidly growing field. This program is a complement to other leaders in the field, such as MIT Cities, part of the MIT Media Lab, whose research themes include urban analytics and modeling, energy networks, and incentive and governance. MovingtheMasses n Part of what can enhance the ‘smartness’ and livability of cities is increasing the use of ICT in the transportation sector. IT companies and city planners have developed a number of different models for easing congestion and pollution. For example, the Spanish traffic authority has invested in intelligent transportation systems (ITS) in recent years. Automatic overhead tolling systems collect money without slowing the cars down. In one technology in use in Spain, when GPS systems in buses can alert a central computer that the bus is approaching a traffic signal, the system allows the light to stay green and the bus to keep moving. In Singapore, sensors, cameras, and GPS devices send information to a centralized control system that keeps traffic flowing, combined with congestion pricing to reduce automobile traffic. And in a move other cities with growing elderly populations may want to adopt, the elderly or disabled in Singapore can tap special cards equipped with radio frequency IDs against traffic light poles, which will signal the lights to offer a longer and safer crossing time. In Rio, IBM has built a complex and integrated system, a control center with information regularly pouring in from 30 city agencies, which send data from city sources including subway stations, traf- fic lights, and utilities, to allow the city to manage accidents, power failures, and emergencies. And in Mumbai, real-time traffic management has been used at 253 crossings, resulting in a 12 percent reduction in traffic time and an 85 per- cent reduction in energy usage from the traffic lights. Several companies have also developed intelligent systems that can help cars avoid circling in search of parking, which wastes both time and gas and contributes to a city’s pollution. Sensors in parking spots alert a central control system when they are open, and electronic signs then communicate this information to drivers. A number of com- panies have developed such systems for parking garages and for city streets, including Streetline in California, whose sensors line city streets around the world, and Spain’s ParkHelp. This type of system enabled the city of San Francisco to introduce pricing based on demand—higher prices during times of greater demand. This arena can encourage entre- preneurship and citizen participation. The Israeli startup Waze, purchased by Google in June, 2013 for $1 billion, relies on crowd-sourced traffic infor- mation from about 30 million drivers worldwide to provide an up-to-date picture of road conditions, including traffic jams, construction, and acci- dents—all to help drivers save money, time, and gas. And startups such as Lyft and Uber match up travelers with available drivers. The World Bank has funded a pro- gram in the Philippines to distribute GPS-enabled phones to taxis in order to collect and disseminate traffic data. This will allow the city to generate real- time maps about congestion and traffic volume. At the same time, a text-mes- sage platform allows citizens to report on traffic needs to help the city create better plans and budgets for the future. Carlo Ratti, director of the SENSE- able City Lab at MIT’s Media Lab, sees The new operations center in Rio provides the incident commander and responders with a single, unified view of all the information that they require for situational awareness. Waze, purchased by Google in June, 2013 for $1 billion, relies on crowd-sourced traffic information from about 30 million drivers worldwide. SOURCE:COMMUNICATIONS&BRANDEXPERIENCE,IBM ICT for Government SOURCE:HTTPS://WWW.WAZE.COM/
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW18 ICT Colombia Report a way to take information about traffic and advance the discussion. If city offi- cials have access to, for instance, all the regularly updated GPS data from all of a city’s taxis, “How can we use all that information to promote action?” Ratti asked in a recent talk at MIT’s Emerg- ing Technologies (EmTech) conference. His lab has developed a project called HubCab that models all the New York City cab pickups and dropoffs, to show how much more effective and effi- cient it could be for one cab, perhaps a taxi minivan, to transport multiple people. This would reduce the use of gasoline, and the model shows that NYC could meet its taxi needs with 40 percent fewer cabs using such a sys- tem. Other cab programs like Uber and Magic Taxi—which compete with traditional taxi systems—have created entrepreneurship opportunities, and can reduce the costs of service through competition. CyberSecurity: ProtectingtheData n As ICT plays an increasing role in Colombia, the government, as those of all countries in the world today, will navigate the challenges of securing the data and the systems involved. Security is a growing concern: according to a new report by Melissa Hathaway, cyber security expert, former acting senior director for cyberspace at the US National Security Council, and a senior advisor at Harvard University’s Belfer Center for Science and International Affairs, “it is estimated that the Group of 20 economies have lost 2.5 million jobs to counterfeiting and piracy, and that governments and consumers lost $125 billion annually, including losses in tax revenue.” (“Cyber Readiness Index 1.0,” November, 2013). Hathaway examines 35 countries “that have embraced ICT and the Internet” and evaluates them across an initial five areas. (She adds that deeper analyses could be accomplished using a subindex for each area.) These are the five essential elements, as outlined in Hathaway’s study: 1. Articulation and publication of a national cyber security strategy 2. Does the country have an operational computer emergency response team or computer security incident response team? 3. Has the country demonstrated commitment to protect against cyber crime? 4. Does the country have an information-sharing mechanism? 5. Is the country investing in basic and applied cyber security research and broadly funding cyber security initiatives? Colombia is not included in the 35 countries selected for analysis here; Argentina, Brazil, and Mexico are the only Latin American countries studied. According to Hathaway’s analysis, though some countries including Australia, Canada, the UK, and the US are ahead in terms of cyber security preparedness, “even these countries are experiencing GDP degradation due to cyber insecurity.” The paper states: “No country is cyber ready.” Hathaway expresses the hope that this index “should spark international discussions about priorities required to strengthen security and encourage gov- ernments to take action and reduce risks.” Conclusion: n Governments are taking advantage of ICT in a variety of ways. In e-govern- ment, local and national governments are improving the services they provide for their citizens and their citizens’ abilities to access those services easily and transpar- ently. In open-data initiatives, the govern- ments are providing data to the citizens, who can use that information to participate in democracy more actively, or can design apps or programs to make more efficient use of those services. All the data that cities provide can be augmented, whether through improved mapping, or sensors spread around cities. This increased volume of informa- tion is helping make cities “smarter,” via Smart City initiatives around the world that employ ICT to achieve, for instance, smoother traffic flow and reduced energy use. The immense quantity of data col- lected, known as big data, can allow for initiatives such as Rio’s control center, bet- ter disaster management, and improved police protection. All of these systems are potentially vulnerable to cyber attack, however, and cyber security will be an increasing concern for all governments. =SOURCE:PONEMONINSTITUTERESEARCHDEPARTMENT United StatesGermanyJapanFranceUnited KingdomAustralia $14 $12 $10 $8 $6 $4 $2 $0 $3.67 $4.72 $5.19 $6.73 $7.56 $11.56 Cost expressed in $ millions (USD) Total Cost of Cyber Crime in Six Countries This chart represents the estimated average cost of cyber crime for six country samples involving 234 separate companies. These figures are converted into US dollars for comparative purposes. As shown, there is significant variation in total cyber crime costs among partcipating companies in the benchmark samples. The US sample reports the highest total average cost at $11.56 million and the Australian sample reports the lowest total average cost at $3.67 mission. ICT for Government
  • Education IN THIS SECTION Overview Laptops for Students Supporting Teachers and Students Mobile Learning Online Learning n From Kenya to Uruguay to the US, municipalities, states, and countries have greatly increased their use of technology in education. A simultaneous trend is the growth of distance learning, particularly as is evident in the rapid development of massive open online courses, commonly known as MOOCs. This section will look at recent trends in and analyses of the introduction of computers, tablets, and Internet connectivity in classrooms; the need for content, and its development; and the potential impact and challenges of MOOCs and distance learning. MOOCS Offerings SOURCE:NATURE.COM Number of courses available on the platform Number of user accounts on the platform (millions) Supply and Demand Student Origins Courses Offered 3.5 3.0 2.5 2.0 1.5 1.0 1.0 0 350 300 250 200 150 100 50 0 February 2012 March 2012 2.27% United States 8.8% India 6% Mathematics 30% Science 13% Business 28% Arts & humanites23% Information technology 5.1% Brazil 4.4 United Kingdom 4% Spain 3.6% Canada 2.3% Australia 2.2% Russia 41.9% Rest of world 19STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW20 ICT Colombia Report provide every town with school- and com- munity-based Internet connectivity, so the students have access not just in the classroom. The goals of the project, which was initiated by President Tabaré Vázquez in 2007, were and still are multifaceted: • To bridge the digital divide by allow- ing poor and rural students access to higher technology and educational oppor- tunities • To improve educational outcomes • To provide Internet connectivity to local homes by allowing residents to access the school’s Internet connections. In 2008, the first computers, com- plete with wireless connections, video and audio capabilities, and educational software, were placed in the hands of elementary school students, and the pro- gram then focused on secondary school students as well. Teacher training ses- sions were delivered to more than twenty thousand teachers, and more than five hundred additional support teachers were hired. dren learn. If you introduce technology but continue to do the same things [in the classroom], there won’t be any improve- ments in learning.” Though other countries have handed out more computers overall, Uruguay is alone in getting a computer into the hands of every student in the country— urban, near-urban, and rural—via Plan CEIBAL. CEIBAL’s acronym translates to Educational Connectivity/Basic Com- puting for Online Learning. (A ceibo is a flowering Uruguayan tree.) The comput- ers are rugged laptops, from One Laptop Per Child, and this program also aims to LaptopsforStudents n One model many emerging and middle economy countries have found promis- ing is the idea of providing every student with a laptop or tablet. While the goal of increasing access to technology and decreasing the digital divide is a worthy one, this approach has its critics. There may be a variety of goals for the projects: increased digital access and literacy, for one, and an improvement in academic achievement. According to experts, evalu- ations of the efficacy of these programs in achieving academic advancement do not show clear results. The general implica- tions of the examples below appear to be that technology alone is not sufficient—it must be coupled with the appropriate instruction and support for teachers and others in positions of authority. Even beyond instruction, says, Clau- dia Urrea, research scientist at the MIT Media Lab and expert on technology in education, “there must be a significant change in methodology and the way chil- When we talk about computers in education, we should not think about a machine having an effect. We should be talking about the opportunity offered us, by this computer presence, to rethink what learning is all about, to rethink education.” Technocentrism (Papert and E. & L. Group, 1990) SOURCE:GIULIA@LAPTOP.ORG ICT for Education
  • ICT TRENDS REPORT 21MIT TECHNOLOGY REVIEW ICT Colombia Report Within only a few years, Plan CEIBAL did manage its first overall goal: universal access. Some of its primary accompanying goals, however, have yet to be accom- plished. Based on surveys conducted by Lucía Pittaluga and Ana Rivoir and pub- lished in Information Technologies & International Development in December 2012 (“One Laptop Per Child and Bridg- ing the Digital Divide: The Case of Plan CEIBAL in Uruguay”), effective student use of the computers depends in large part on the abilities of the adults in their lives, whether teachers or parents. Urrea points to particular successes of Uruguayan students she’s met: “There are a number of students who have become fluent programmers, and have contributed to the number of applications available in the One Laptop Per Child platform. One of them, who won the Google Code-in last year, taught himself English.” According to the interviews in the published study, parents of the Plan CEIBAL children confirmed that their children accessed educational material at home, but the adults interviewed did not see the computers as tools that could assist them in solving problems of their own. The survey also found that chil- dren use the laptops at home primarily for entertainment, and that their inter- est in the computers tends to wane over time. Some of the interview subjects also pointed out that the computers had not been well integrated into the school curricula. The project was evaluated in Janu- ary, 2013 by the Canadian expert Michael Fullan, whose report was cowritten with Nancy Watson and Stephen Anderson. Fullan points out that the original scope of the project focused almost entirely on access. As such, it was a success: nearly every student had access, nearly every teacher knew how to use the technology, nearly every school had Internet access (connections are being upgraded to fiber optics), and the program enjoys a 92 per- cent public approval rating. In addition, the computers are being used as a way to rapidly assess student performance, which is helping teachers find holes in their teaching. Still, there are weaknesses, and chal- lenges in addressing goals for the future. For the next phase, the Uruguayan gov- ernment plans to focus on using the technology specifically to improve learn- ing, not just to narrow the digital divide. Teachers need better guidance on how to take advantage of the courses and educa- tional support the project offers. As such, they have a number of projects in place, including the following: • Hiring individuals whose mandate is to help teachers integrate technology, working within a school or with a cluster of schools; • Development of a new program for adaptive mathematics (and continuing with online math and chess tournaments); and • Remote English teaching, connect- ing classrooms to a native English teacher via video conferencing (contracted with the British Council) in which one hour of native-speaker video instruction is followed by two hours of classroom instruction. Fullan finds these programs are com- mendable but recommends three specific goals: • English and Spanish literacy, • Mathematics, and • Reducing the number of students who repeat grades six, seven, and eight. He suggests improving the ways that teachers can share their use of technology, improving the use of the online assess- ment, and making sure teachers’ funding Percentageofpeopleperincomedecile 80% 90% 10 Richest 9 8 7 6 5 4 3 2 1 Poorest 70% 60% 50% 40% 30% 20% 10% 0% 2004 2006 2008 2009 2010 Incomedistributiondecile 20%% 40% 60% 2009 (December) 2010 (December) Richest 10 9 8 7 6 5 4 3 2 Poorest 1 Plan CEIBAL: Bridging the Digital Divide in Uruguay SOURCE:ENCUESTACONTINUADEHOGARES-INESOURCE:ENCUESTACONTINUADEHOGARES-INE Figure 1: Access to computers in households. Percentage of people in each per capita income decile (without leasing value, excluding rural locations and towns with a population of less than 5,000) Figure 2: Percentage of people in each per capita income decile living in a CEIBAL home ICT for Education
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW22 ICT Colombia Report improved in math, science, and language abilities. As a number of countries are introduc- ing major computer or tablet programs over the next few years, the World Bank frequently cites the state of Maine in its list of best practices, and Maine has become an educational reference project for countries around the world. Maine’s project began in 2001, when Governor Angus King launched a project to put a laptop in the hands of every seventh grader in the state; he succeeded in that goal. Maine students have also signifi- cantly improved in their coursework: a 2011 study by the Maine Education Policy Research Institute says that writ- ing skills and state writing-test scores have improved, and many students have been able to move out of remedial math. allows for extra time to focus on learning how to best use technology. Urrea agrees with Fullan that goal- setting is crucial for the next stage in Uruguay, but she sees opportunities, and goals, beyond reading and math. “Learning is also about learning to solve anything,” she says, “to become more cre- ative, solve problems, invent new things.” Plan CEIBAL has already had an impact on entrepreneurship and job creation in the country (see “Entrepre- neurship”): a new gaming sector has rapidly grown in Uruguay and gained international acclaim and exports, in part catalyzed by Plan CEIBAL. Plan CEIBAL is far from the only laptop distribution program in Latin America: Peru and Argentina have seen major rollouts of computers for chil- dren, as has Brazil, with smaller projects throughout the continent. (Peru has dis- tributed even more of the One Laptop per Child model of laptop than Uruguay.) One challenge in the Peruvian program was that Internet connectivity was out of the scope of the Ministry of Education, and so computers were distributed even when the school had no way to access the Internet. In Brazil, according to a study by the Inter-American Development Bank, teacher training was critical, as were pre- pilot projects to evaluate the design. In Argentina’s San Luis Province, where one such program was implemented, students There is also evidence of gains in student achievement in science. Urrea points to a number of factors in Maine’s success: the program started small, first with 7th graders, and then it expanded to other grades. The program also incorporates plans to replace and repair machines, to finance the project, and to support teachers. “Their success is in part their ability to overcome the many challenges associated with such a program,” says Urrea. A number of other projects in the US are ongoing, but none of them have lasted long enough for significant evaluation. Every student and teacher in Guilford County, North Carolina’s middle schools is to receive a tablet, with the under- standing that teachers will be able to give Flipping the Classroom One benefit technology offers is the ability to, in effect, “flip the classroom.” In such a model, students use the technology (laptop, tablet) to learn the lesson at home, and the teacher uses the class time to work with the students at their levels. A fascinating article in Wired (“How a Radical New Teaching Method Could Unleash a Generation of Geniuses,” October 2013), reports on a Mexican school populated primarily with students whose families live beside a dump. Though neither the classroom nor the students had access to the Internet, the teacher had access at home, and he decided to model his classroom after the ideas of Sugata Mitra, who left computers with children in India and recorded them as they guided themselves through learning. The Indian students were eventually able to solve com- plicated questions in biology. The Mexican teacher used his home computer to find answers to his students’ questions but let the students guide their own learn- ing. The students in his class, whose families are among Mexico’s poorest, were able to rise to the top in Mexi- co’s achievement exams. A New York Times article (“In ‘Flipped’ Classrooms, a Method for Mastery,” October, 2013) also details the potential for using technology to allow students to learn the basics at home, working at their own pace, with teachers then guiding in-class activities that allow the students to demonstrate mastery of the material. 1 2 3 5 4 Equity Integration with Maine’s Learning Results Sustainability/ Avoiding Obsolescence Teacher Preparation and Professional Development Economic Development The Maine Learning Technology Initiative has at its core five operational goals: SOURCE:MAINELEARNINGTECHNOLOGYINITIATIVE. MAINEDEPARTMENTOFEDUCATION. ICT for Education
  • ICT TRENDS REPORT 23MIT TECHNOLOGY REVIEW ICT Colombia Report more guided instruction to different lev- els of achievement in the classroom. But as of August 2013, 15 thousand tablets had been pulled from schools because of faulty hardware. The intent was similar in Los Angeles, where there is a $1 bil- lion plan to provide an iPad to every high school student. This time, the tablets were taken back from the students when the students figured out ways to get around security measures that blocked Internet access. (Los Angeles had a similar tech- nology introduction problem beginning in 2001, where they spent $50 million on reading software and computers; the computers were not used or integrated into classrooms, and broken hardware was not fixed, because teachers had not been appropriately trained. The 2001 pro- gram was found not to have helped the students improve their reading.) According to the Inter-American Development Bank, there is not enough rigorous evaluation of the educational impact of technology programs, or com- parisons of these types of technology interventions and other types of educa- tional programs. The IADB evaluated the Peruvian program and found no evidence thus far of increases in math and language test scores, but rather positive increases in general cognitive skills. Urrea wrote in a response to the evaluation that the teachers had not changed their methodol- ogy with the computers, and that “if there are no changes to the way teachers teach and children learn, there won’t be any significant changes in children’s academic performance.” She also mentions that the report did not go deep enough to track how computers were used to advance the development of cognitive skills. Urrea draws a number of lessons from the various successes and failures of these programs, both in the US and in Latin America: “You need a clear goal, and the design of a program that ensures that such goals are accomplished. The plan includes teacher training and development pro- grams, local/online support, digital support content, changes in the curri- cula, etc. You need a strong IT team. You need a strong community-based program to engage parents, and other community members, and more.” SupportingTeachers andStudents n Of course, these efforts cannot survive without the foundations on which they’re built—both hardware and software. One hardware model is a rugged, rather sim- ple laptop, in the style of One Laptop per Child. Another trend is the use of tablets. Tablets have become increasingly popu- lar, though, as Michael Trucano writes in a World Bank EduTech blog, there is no data to support the use of tablets over any other type of hardware: “This is not to say that there aren’t potentially compel- ling reasons why purchasing tablets for use in schools and/or by teachers or stu- dents might make sense…rather that this technology choice often seems driven by assumption[s] rather than as a result of careful deliberation.” Actually, he notes, the line between tablets and laptops is blurring, as tablets today (not Apple prod- ucts, but Microsoft and Android-based systems) may have keyboards, USB ports, and other features that make them more like small-scale laptops. In terms of software, the develop- ment of appropriate content, content that engages students and teachers alike and contributes to improved academic achievement, creativity, and problem solv- ing, is critical. Trucano points out that one pitfall programs fall into is trying to copy other educational systems rather than developing local content. In Jordan, for example, according to Michelle Selinger’s chapter on education in Tim Unwin’s book ICT4D: Information and Communica- tion Technology for Development, teachers were given laptops and data projectors. The curricula were developed “based on research on effective practice in the West, but the actual e-curricula development was undertaken in country by local media developers and teachers from Jordanian schools.” When Plan CEIBAL leaders set about developing content for use in the class- rooms, one approach they took was to translate videos from English into Span- ish from the popular online site Khan Academy, which began in 2006 with a series of simple video tutorials. (Today the site reaches millions of users with thousands of videos, online tutorials, and practice problems in math, science, and the humanities, and has been incorpo- rated into classrooms as well.) According to education reporter John Higgins, who has interviewed members of the team in Uruguay, the project had access to about 1,200 translated videos in November 2012, and by May 2013 had translated two thousand. In September 2013, Khan Academy en Español—the first foreign-language offering—was released, offering the entire Khan Academy, complete with online mentors, to the world’s half-billion Span- ish speakers. This offers a new online SOURCE:KHANACADEMYABOUTPAGE ONWWW.KHANACADEMY.ORG ICT for Education
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW24 ICT Colombia Report Gamification as a Potential Force for Education Many see ‘gamification’—using games as a method of achieving non-game goals—as a potential force for education. Scot Osterweil, creative director of the MIT Media Lab’s Education Arcade and a founding member of the Learning Games Network, says that games can take the playfulness that kids experience in much of their lives and use that in their academics. Osterweil has worked on two projects funded by the Gates Foundation. In one, students can work collectively to solve problems in high school biology and math. In the second project, 10 weeks of playing a language-learning game helped immigrants learn English significantly more effectively than a traditional 13-week course. “This does not replace the classroom,” Osterweil stresses, “but rather games in conjunction with teaching can be quite valuable.” Game development, according to the Media Lab’s Mitch Resnick, can also provide students with learning opportunities. His team created the Scratch programming language and online community; millions of projects have been shared by Scratch users ages eight and older. In “Learn to Code, Code to Learn,” in EdSurge, May 2013, Resnick described the variety of diverse projects created around the world, and how learning to code as a foundation for creativity has changed the lives of the young users. “We find that active members of the Scratch community start to think of themselves… as creators and designers, as people who can make things with digital media, not just browse, chat, and play games… Scratch members also begin to see the world in new ways.” resource for Colombian students and classroom educators. A number of startups to meet the needs of teachers and students are emerg- ing in Latin America. (“9 Latin American education start-ups you should know,” thenextweb.com, Feb. 15, 2013) Their offerings range from tools to help teach- ers, parents, and students communicate, to offline classes, to Open English, a year-long English language program that connects students to native teach- ers. Another Brazilian startup, Learncafe, offers course certificates in classes such as business management and technology. According to an article on the site LatinTrade, “E-Learning for the Twit- ter Generation,” cloud-based sites and platforms—such as Blackboard, Desire- One innovative startup called Duolingo, founded by computer scientists from Carnegie Mellon University (one of whom comes originally from Guatemala), seeks to link language learning and access to web resources; it can serve as both a resource for classroom education and for English- language learning. Its founder was motivated by the paucity of web-based information in Spanish. Today, the site has hundreds of thousands of users who participate in a variety of language acquisition activities and then go on to translate sentences. The end result is a crowd-sourced site that translates documents for the Web. 2Learn and Moodle—are important tools for educators wanting to create local con- tent. Kuepa, an Argentinean company, helps teachers manage classroom and online resources, and provides some of those resources. And as academic content moves online, although the companies thus far dominating in Latin America are foreign ones, local enterprises such as Competir and Kuepa, both Argentin- ean, also have significant market share. Education-focused accelerators to help advance promising startups have been appearing around the US: only one existed in 2011—Palo Alto’s Imag- ine K12—and today there are more than 15. In 2012, investment funding reached $1.1 billion. Some education accelera- tors are managed by massive education companies, such as Kaplan’s Techstars and Pearson’s partnership with Wash- ington-based accelerator 1776. These relationships are not all unmitigated suc- cesses, and can be made or broken by the skills or actions of their directors: one accelerator recently came under fire for the allegedly subpar performance of its current leader and cofounder. Experts stress that what makes many accelerators successful is the investment, mentoring, and tools made available for the partici- pants. In the US, an increasing number of these startups are being founded by teach- ers, who personally know the needs of the classroom; and more education-focused companies are gaining the trust of educa- tors. Still, some remain wary of companies SOURCE:DUOLINGO.COM SCRATCHISAPROJECTOFTHELIFELONGKINDERGARTENGROUPATTHEMITMEDIALAB. ICT for Education
  • ICT TRENDS REPORT 25MIT TECHNOLOGY REVIEW ICT Colombia Report whose main focus is their bottom line. As a result, 19 US states have created policy tools to assist in the creation of socially- minded startups such as those focused on education: they have made available a new legal status called “benefit corpora- tion status.” They do seek profits, but must also be certified to meet social goals. This gives startups that focus on education— or poverty reduction, or environmental issues—the ability to focus not on short- term financial gain for their investors, but rather long-term value. No matter what the hardware or soft- ware, all experts in the use of technology in education—and all critics of the use of technology thus far—warn and insist that teachers are of paramount impor- tance. School systems must invest in great teachers, they must train those teachers to use the technology, and they must enable opportunities for teachers to learn from and exchange ideas with one another. In addition, the World Bank’s Michael Trucano offers this advice: “Avoid depen- dence on a single vendor.” In the World Bank’s EduTech blog, he writes that approaching the question of technology just from a lowest-cost perspective could lead to a local or national government getting locked in to one vendor, which can lead to increased costs in the future if the government attempts to exit the relationship. He also cautions that edu- cational content in digital format carries challenges in, for instance, intellectual property rights, and that policy mak- ers should be prepared to “help lobby for changes that may be needed to help ensure educational goals and objectives are not compromised as a result of inad- equate, outdated, or poorly drafted laws and guidelines.” MobileLearning n Learning via mobile devices such as phones is an area that holds promise, even as computers remain central to school- based learning around the world. As can be seen in Colombia’s mobile literacy program, Programa Nacional de Alfabet- ización (designed for young adults and for adults who have not gone through conventional schools), there is real possi- bility for improving education and access to content on cell phones. Teachers and students need to learn how to utilize computers in the class- room most effectively. The same goes for projects such as BridgeIT, an initiative of Nokia, the Pearson Foundation, the United Nations Development Program, and the International Youth Founda- tion. In this model, teachers learn to use smartphones with Internet connectiv- ity and data projectors; they can access multimedia resources and content for the classroom, and screen educational videos or science experiments. In a similar vein, Nokia unveiled a pilot project in Kenya in October 2012 to reach 10 schools via cell phones, assisting teachers in their instruc- tion of the sciences and mathematics. Students in Argentina are now using phones through a program called EMIA- SMILE that provides the opportunity to develop writing and scientific skills by creating and answering questions via a local network. BridgeIT has partnered with various entities in Chile to help the government reach underserved commu- nities, and has created a new program in Colombia called Raíces de Aprendizaje Móvil. Some challenges in these programs include lack of 3G or 4G network cover- age, and an absence of clear guidelines and goals for how to implement use of the phones in the classrooms. And more gov- ernments are now focusing on computers in the classroom, rather than phones. Still, because phones can serve as a method of accessing online content, some experts say the important thing is to focus on content rather than on what device is used. OnlineLearning n Today, massive open online courses, or MOOCs, are capturing the imagination of curious learners around the world. In this model, hundreds, even thousands of stu- dents around the world can participate at the same time in a classes taught by some of the top professors in their fields from the world’s leading universities. A number of universities are rapidly creating online courses through platforms such as Udac- ity and Coursera, both founded by Stan- ford professors, and edX, the nonprofit platform of Harvard and MIT. The results, however, are mixed. For one MIT electronic circuits class, 155 thousand signed up—but only seven thousand, or 5 percent, passed the class. The majority of the online classes thus far appear to be in science and technology, where problems can be answered and ver- ified online. There are concerns about the dropout rate, the need to keep students engaged, and ways to maintain the level of academic and intellectual achievement. One opportunity that MOOCs offer to emerging or middle economies is the opportunity to merge classroom or after- school learning with distance videos, what is known as blended learning. The New York Times profiled a high school in Mongolia, where the principal, who had himself graduated from MIT in 2009 (the first Mongolian to do so), provided classroom support—in the form of both teacher guidance and the necessary sup- plies—for students to take the edX MIT class Circuits and Electronics. While this experience exposed all students in the More than 6.7 millionstudents were taking at least one online course during the fall 2011 term, an increase of 570,000 students over the previous year. SOURCE:HTTP://SLOANCONSORTIUM.ORG BABSONSTUDY:OVER6.7MILLIONSTUDENTSLEARNINGONLINE ICT for Education
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW26 ICT Colombia Report classroom to the potential for academic advancement, one student in particular soared. He was 15 at the time, but he was one of only 340 of the 150 thousand orig- inal students to receive a perfect score in the sophomore-level class. He is now attending MIT, and he plans to use his time at MIT to develop solutions to ben- efit his home country. (In response to his success, edX began purposefully organiz- ing such blended classes.) An electrical-engineering professor at the University of El Salvador took part in an edX electronic-circuits course him- self, then signed up 50 students at the university to take the course. He acted as their mentor, making himself available for online discussions and weekly labs. Rwanda also has set up a prototype blended-learning program, as described in an October, 2013 Scientific American article, “Learning in the Digital Age.” Kepler is a pilot university program that marries local instructors with online videos for a small number of Rwandan students, who are selected after a highly competitive series of applications and interviews. The program appears to be significantly cheaper per student than tra- ditional university courses, and it allows students to achieve a level of learning that meets international standards. At the moment this program is partnering with Southern New Hampshire Univer- sity, which will award an associate of arts degree with a concentration in business. Kepler hopes to add additional bache- lor’s degrees, in fields such as business administration and computer science, from other educational institutions. This sort of program is not only use- ful in underserved countries like Rwanda. Though India is recognized internation- ally for the quality of its engineering schools and graduates, that holds true only for the very top universities. In the Scientific American article, Vern Agarwal, cofounder and chief operating officer of the assessment company Aspiring Minds, states that only about 7 percent of India’s engineering graduates meet international standards for the basics of coding. To meet the local need, Microsoft Research is now working on a pilot project—setting up Massively Empowered Classrooms, or MECs—that offers online classes taught by Indian professors, designed to fit into existing Indian engineering schools. A limiting factor to the deployment of such opportunities is English liter- acy. This is an area in which Colombian school children appear to possess insuf- ficient skills. Fullan, in evaluating Plan CEIBAL in Uruguay, pointed to English (and Spanish) literacy as a key goal in the next stage of the project. Uruguay has partnered with the British Council and (as one method to achieve the goal) is using distance-learning videos with native English speakers. While Colombia will of course need to continue developing locally appropriate content in Spanish, high lev- els of English literacy will be critical in order for teachers and students to take advantage of the educational opportuni- ties that exist online. In online learning, the growth opportunities for Latin America—and for Colombia—are huge. According to Sam Adkins, chief research officer at the Washington-based market research company Ambient Insight, e-learning revenues in Latin America could reach $2.29 billion in 2016, almost double the 2011 figure. He estimates that Brazil will grow fastest, followed by Colombia and Bolivia. Urrea sees opportunities in Colom- bia in the world of online learning: she learned that edX has no Latin Ameri- can partners in its lists of universities, and believes that Colombian universi- ties could promote their own courses, or translate edX courses for use within Colombia. Another opportunity exists for com- panies that develop e-learning for export. Imaginologia, based in Brazil, creates online courses for the health-care indus- try and sells them to Portuguese-speaking African countries. There is plenty of mar- ket share throughout Latin America for such e-learning initiatives. Conclusion n One clear point that emerges from all these examples is that access to technol- ogy—computers, the Internet, mobile phones, distance learning—is not enough. Motivated students will find ways to learn, but technology access alone is not sufficient for the majority of students. Instead, classroom technology programs must establish clear goals that include teacher training and curricu- lum changes, along with the necessary IT development and support for them. While online learning has been growing rapidly, perhaps the greatest opportuni- ties lie in blending online learning with in-person classes, to bring the very best instruction from around the world to help teachers and students in Colombia. Colombian universities and enterprises also have the opportunity to develop online learning and education apps that could be used throughout the Spanish- speaking world. 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 2003 2004 2005 2006 2007 2008 2009 2010 31.3%28.6% 24.1%21.6%19.6%18.2% 13.5%11.7%9.6% 31.3%28.6% 24.1%21.6%19.6%18.2% 13.5%11.7%9.6% 31.3%28.6% 24.1%21.6%19.6%18.2% 13.5%11.7%9.6% SOURCE:BABSONSURVEYRESEARCHGROUP Education Gets Disrupted, Gradually The percentage of US college students enrolled in at least one online course ICT for Education
  • DevelopingTalent IN THIS SECTION Overview Developing ICT Skills Leveraging Partnerships University Reforms to Promote Success n As Colombia heads into the new digi- tal economy, with an increasing focus on ICT in all areas of society, it will rely on a cadre of professionals who can work in the ICT industry, utilize ICT in government and private enterprises, and employ ICT in such diverse sectors as education and health care. Bringing this about will require a wealth of talents. First and foremost is the necessity of nurturing computer engineers, coders, programmers—pro- fessionals for all aspects of what can be considered the foundation of the digi- tal world. These skills are necessary but not sufficient to ensure success, however. The talent of the future will also require greater competence in skills like prod- uct design, management, and leadership. A new generation of chief information officers, or CIOs, will need both techni- cal and management skills. The digital workers of the future will include design- ers, coders, teachers, entrepreneurs—and government officials. 27 STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW28 ICT Colombia Report cooperative a successful new website. The manager attracted new customers, and the student gained valuable work expe- rience. Collaborations like these could readily develop from the widespread cre- ation of high school classes and clubs. Excellent ICT training courses are now available worldwide. Some teach spe- cific languages and skills, and others offer broader skills for the general ICT econ- omy. Codecademy, which offers free online courses on many different topics, has set up boot camps in Colombia, and has thus far trained nearly 2 thousand new coders. In 2013, the UK magazine Wired set a novice coder to test and rate five dif- ferent online coding courses, including Codecademy, Tuts+, Mozilla School of Webcraft, Treehouse, and Code Schools. The only multilingual course, offered by the Mozilla School of Webcraft, was rated by the Wired author as the least success- ful one. A Spanish-language startup, Oja. la, which evolved from Start-Up Chile’s fourth incubation round, was created in Colombia and is now filling the void for multilingual online classes. Oja.la, launched in November, 2011, offers classes for entrepreneurs, such as app develop- ment and community management, as well as classes taught by Latin American investors. Similar startups have followed, DevelopingICTSkills n As the demand for connectivity increases, the call for more engineers, programmers, and designers escalates. In 2012, at a forum held by the Brazilian- American Chamber of Commerce, EMC’s vice president and chief technical officer for the Americas, Patricia Soares, esti- mated a need for 900 thousand engineers in Brazil by 2020. Similar shortages are expected in the US by global firms such as Microsoft and Cisco, both of which have responded by offering their own training courses online. Alex (Sandy) Pentland, director of the entrepreneurship program at the MIT Media Lab and an internationally recognized expert on technology and entrepreneurship, says that one program that can be developed immediately, and which could help lay the groundwork for the future, is a massive rollout of high school classes and clubs. Such programs can get young adults excited about jobs and skills in this industry, and these same students can then meet the needs of busi- ness owners in their home communities. Pentland tells the story of an enterprising coffee-cooperative leader in Costa Rica, who knew he could grow his market if he could reach a greater audience over the Internet, but lacked the skills to do so. A high school student was able to build the including Mejorando.la, which is another Spanish-language brand that hosts online classes and offers podcasts on the Internet and technology. More targeted classes include those offered by Cisco Systems, which specif- ically created its Networking Academy in order to, as the company’s website describes it, “close the ICT talent gap around the world.” Cisco Networking Academy’s courses are available both online and through 10 thousand partners in 165 countries, and they train a million students a year around the world. Cisco programs have also reached poor com- munities through a number of initiatives. These include a collaboration with the United Nations Development Programme (UNDP), Youth for Habitat, and the UN Volunteers organization to train youth and women in Turkey; a partnership with Israel’s IT Works to train women (more than 300 women have participated since 2006, with a 70 percent job placement rate); and a Kenya project, in partnership with the Norwegian NGO Deaf Aid, to train hearing-impaired individuals. Cisco also offers curriculum development for schools and colleges. Another global company that offers online training is Microsoft, which pro- vides courses and training through its IT Academy. For educators, this site offers curriculum and learning tools for teaching technology courses. For students, there are courses and certifications—which reach more than 7 million students around the More than 21 million students participated in the Code.org Hour of Code event in December, 2013. They not only finished the hour-long tutorial, but many teachers took advantage of the opportunity to teach students about the importance of coding, while some classrooms expanded the hour into a full day’s event. In 2011, MYTecC (Mediterranean Youth Technology Club, part of a Cisco Corporate Social Responsibility program) instructors from eight countries and territories gathered in Cyprus to plan training sessions and meet their peers. SOURCE:CODE.ORG,DECEMBER2013. PHOTOCOURTESYCISCOCSR ICT for Developing Talent
  • ICT TRENDS REPORT 29MIT TECHNOLOGY REVIEW ICT Colombia Report world each year—as well as free monthly webinars (in English). Morocco is among the countries that have used the IT Acad- emy to train thousands of students for IT work, and the Netherlands has imple- mented IT Academy training across the country. As EMC’s CTO in Brazil noted, global need for technicians in the ICT industry and in manufacturing is mounting. A June 2012 study, An Analysis of Information Technology Middle Skill Job Openings 2011, states that such jobs are projected to grow in the US by 22 percent over the next decade. In the US, organizations such as BATEC (Broadening Advanced Technological Education Connections) provide services to try to train workers for this economy. Funded by the National Science Foundation, BATEC offers tech- nology education and work experience for students in high schools, community col- leges, and universities in underserved and poor communities in Boston, Chicago, San Francisco, and Las Vegas. Universities can play a key role in training professionals for these ICT jobs; unfortunately in Colombia, as with many countries (including the US) interest in computer engineering has been declining. In Ireland, computer engineering pro- grams were key to the country’s software success, as Dan Breznitz states in Innova- tion and the State: Political Choice and Strategies for Growth in Israel, Taiwan, and Ireland. By the early 1990s, Breznitz writes, the Irish software industry had already become quite strong, in large part due to the country’s universities, with little help from the national government and its policies. By the 1980s, Ireland’s univer- sities had begun to participate regularly in European Union research programs, which were a rich source of grant money. Training for Product Design New ICT businesses and products will demand the best training in design, argues Burton Lee, lecturer on European entrepreneurship and innovation at Stanford Graduate School of Business, and an international expert on innovation ecosystems. Lee describes product design focus this way: “How the product looks, how people interact with it, the user interface—but it’s also about understanding the user experience in detail.” For instance, students in design programs observe users to learn about “how they might use a new app or information technology or gadget. They’re observing users in real settings such as shopping centers or hospitals, and getting real- time feedback on users at an early stage. This can help identify what works and what doesn’t work and reduce new company failures.” Lee’s home university, Stanford, houses one of the world’s top programs in product design: the Hasso- Plattner Institute of Design (d.School), which is located in the school of engineering. Stanford, Lee says, pioneered the design thinking approach. Stanford’s d.School has a sister institute, the Hasso-Plattner School of Design Thinking at the University of Potsdam in Germany, whose focus is ICT. Modeled after the d.School, this is the first school for design innovation in Europe. Talking about successful new design programs, Lee points to Finland’s Aalto Design Factory, based in the Aalto University engineering school and closely linked to its start-up incubator. The program focuses primarily on developing design talent, and is geared towards using design to start new companies. Ireland recently started a program called BioInnovate Ireland, a partnership of academia, industry, and government, which trains eight fellows every year. While this university program focuses on design of medical devices, it has a strong ICT component as well. BioInnovate is already having an impact, as its fellows have begun to spin out companies. COURTESYOFTHESTANFORDD.SCHOOLCOURTESYOFTHESTANFORDD.SCHOOL The Biodesign Innovation class held brainstorming practice sessions at Stanford University’s design school. ICT for Developing Talent
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW30 ICT Colombia Report Inria, which focuses on ICT, Germa- ny’s Fraunhofer, and the Netherlands’ Wageningen—were chosen between 2009 and 2011 to set up labs in the first four centers. Inria’s Chilean ICT projects include the creation of technology for sus- tainable natural resource management; software for integrating renewable ener- gies into the grid, and software for the Internet and telecommunications; and a new focus on support for Chile’s growing astronomy sector. The research institu- tions and the Chilean government have each contributed half of the costs, and the institutions are mandated to include local partners in their research projects. Subsequent to setting up these agree- ments with academic institutions, the Chilean government has opened new centers with companies such as Pfizer, making the same offer to share the costs of the labs. Chile’s goal is to create more than a dozen such centers, which will help raise Chile’s profile as a science and technology center and will contribute knowledge back to the local community. Instead of attracting external compa- nies, as Chile has done, Spain has paired local research labs and universities to support small, medium, and large-scale Spanish companies. Spain’s network of technology centers, known as Fedit, com- prises 67 research institutions around the country, some of which have been in place since the 1960s. This system emerged because, when Spain functioned largely as a manufacturing base for Europe, Spanish companies lacked capital for in- house R&D. In response, they pooled their resources to form research facilities that included local universities and govern- ments. As in Singapore, companies work with academic or government-supported labs on early-stage research that might be too financially risky to undertake alone. While each center in Spain and every project functions somewhat differently— some may work with companies that produce complementary parts of the same technology, while others include companies that compete directly with one another—in every case, 51 percent of the Trinity College Dublin became one of the largest grant recipients in the field of com- puter science, which “not only enabled Trinity to expand its computer science research activities but allowed several research groups to form and then spin out into new companies. Even today, Ire- land’s universities continue to develop new degree programs in partnership with industry, in a direct and focused attempt to meet hiring needs. LeveragingPartnerships n As part of its stated intent to transition from a manufacturing to a knowledge- based economy, Singapore wanted to bring industry resources and knowledge to universities, to advance the opportu- nities for businesses to take advantage of academic institutions and for academ- ics to spin off new companies. Beginning in 2000, and building on the success of the research institutions it had created to support manufacturing clusters, the government invested billions of dollars in science and technology. Singapore created world-class labs, attracted researchers from around the world, and courted doz- ens of major international corporations to set up R&D labs in the same buildings as its academic ones. These corporations benefit from the concentration of science and engineering talent, Singapore’s cen- tralized location, and the local infrastruc- ture. Chile has also focused on attracting international research and companies to outposts of scientific institutions known as centers of excellence. Leading research institutions—including France’s Mexico’s software and services sector now comprises more than 500 thousand professionals, and its 121 colleges and universities are producing more than 90 thousand graduates annually with IT-related degrees. ICT for Developing Talent Home page of Inria - Chile SOURCE:WWW.INRIA.CL©INRIACHILE SOURCE:NEARSHOREAMERICAS
  • ICT TRENDS REPORT 31MIT TECHNOLOGY REVIEW ICT Colombia Report Madrid Valladolid Seville Badajoz Malaga Murcia Bilbao Oviedo A Caruña Logroño Pontevedra Zaragoza Pamplona Barcelona Valencia Elda Castellón de la Plana Spain shares are owned by private companies, and the rest by universities and local and national institutions. Forty percent of center funding comes from private industry, with the remainder sourced from local, national, or European-level grants. Finland has taken another approach, focusing on encouraging businesses to invest in R&D through government grants. These are awarded to businesses, universities, polytechnic institutes and public research institutes, in a pro- gram called Tekes, the Finnish Funding Agency for Technology and Innovation. The funding is aimed at innovative new products and processes, and Tekes also participates in planning and imple- menting science and technology policy. More than half of the funding is directed towards small and medium-sized busi- nesses. Tekes also has six overseas offices to encourage cooperation between for- eign institutions and Finish ones. In Greece, the government has formed “innovation bureaus,” which are offices with staff knowledgeable about innovation, who can strengthen the connections between academic research and industry and can connect local efforts with academic institutions and businesses in the US and in Europe. They also assist in recalling local tal- ent that has gone abroad, a creative response to the retention-of-talent issue. Spain has made ‘recalling talent’ a pri- ority and summoned thousands of top Spanish scientists working in institu- tions such as the US National Institutes of Health to return to work in or lead Spanish scientific institutions. UniversityReformsto PromoteSuccess n As in many other countries, universi- ties in Colombia lack direct connections with industry and are not meeting indus- try’s hiring needs. University reform offers some tools to confront this issue. In Finland, the university reform pro- cess began in the 1990s and continues today. Throughout the 1990s, Finland focused on reforms across a number of aspects of society that enabled economic development, and emphasized new per- sonnel policies, greater cooperation between the public and private sectors, and results. Some examples of this in the university system are performance-based pay, managerial decision-making, and decentralization. And although Finland’s universities are generally acknowledged to be strong both in science and in job market prepa- ration, a New Universities Act (passed in 2009 and enacted in 2010) pro- moted additional changes to strengthen the universities. It included three main platforms, which further separate the universities from direct government oversight. The universities have become independent legal entities; they, and not the government, have majority owner- ship rights; and university boards will include external appointees. Universities The importance of creating an independent university system free from government political agendas cannot be overestimated. Spain’s technology centers, known as FEDIT, provide research facilities for companies around the country. University of Crete Medical School SOURCE:WWW.FEDIT.COM PHOTO:UNIVERSITYOFCRETEMEDICALSCHOOL ICT for Developing Talent
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW32 ICT Colombia Report will now have greater legal and financial freedom. This means that universities can also accept private funds, both domestic and international, in addition to govern- ment funding. Among the act’s goals are creating stronger positions, a stronger managerial board, and a stronger rec- tor. (The board chooses the rector.). In addition, the reforms emphasize better relationships and collaborations between Finnish and international universities, aimed at strengthening the position of the Finnish universities. The importance of creating an inde- pendent university system free from government political agendas cannot be The Case of Jalisco overestimated. For educational systems in emerging countries (as in Colombia), for example, politically motivated riots have led to strikes, takeovers, and paralysis for as much as a month at a time. Classes and exams may be extended indefinitely and can add semesters to a student’s gradua- tion date. On a macro scale, for example, corporations, foundations, and nonprofit organizations would be more inclined to establish ongoing scholarship programs for advanced studies if they felt secure that their investments would be protected against delays or political agendas. The same reasoning applies to the venture capital or private equity funds that a uni- versity might hope would someday invest in their local startups. Though Greece is dealing with serious economic challenges, its university system has undergone significant and important reforms to try to overcome a situation that was similar to that in Colombia. Achilleas Gravanis is a professor of pharmacology and an expert in neuronal degeneration and neurogenesis at Greece’s University of Crete and its Foundation of Research and Technology—Hellas (FORTH), and was intimately involved in university reform. (Gravanis has also created a spinoff company that develops compounds for neurodegenerative diseases, and is work- Surface area: 78,588 km2 Population: 7.3 million, 6.3% of Mexico’s total 6.6% of Mexico’s GDP ICT for Developing Talent When Jalisco, Mexico began its transformation into a major ICT hub in 2001, its education and university systems were not meeting the needs of industry. Francisco Medina is familiar with the problems of academia, as he was a former dean of engineering at the Monterrey Institute of Technology. Universities, he says, are slow: changing just one syllabus can take a year, and the results take years to be effective. In addition, local Guadalajara universities were resistant to change. As a result, the team in charge of the ICT project decided to empower industry. “Industry had a problem,” says Medina, referring to the lack of well-trained talent, and so “industry had to solve it.” The team focused intently on training future teachers, which would enable the project to grow. They created certificate programs that could be completed in months, rather than the years required for a formal university degree. Part of their funding came from the World Bank and other international institutions. The resulting organization, called Mexico First, was created by the federal government with the support of private institutions: the Mexican Chamber of Electronics, Telecomm and IT Industries (CANIETI) and the Association of Educational Entities with IT Programs, called ANIEI. Mexico First trains Mexican workers in common technologies, mobile phone languages, and business-process technologies. Headed by a partnership of local and national public and private institutions, the consortium directly negotiated with large multinational companies including Microsoft, SAP, Cisco, and Oracle to reduce the cost of training programs by buying in bulk. Mexico First then subsidizes the training further. Since 2008, approximately 80 thousand Mexicans have received certificates. (Some of these classes are offered online as distance learning, but many of those are available only in English.) In developing partnerships with industry, Guadalajara was fortunate to have a couple of key academic partners that already had experience work- ing with industry: the Center of Advanced Studies and Research at the National Polytechnic Institute, and its Semiconductor Technology Center, both located in the capital, Guadalajara. These centers participated in the creation of the Advanced Program for the Formation of Human Resources in Semiconductor Design and Tech- nology, PADTS in Spanish, which has produced about 350 graduates in the past nine years. In Jalisco, expertise focused on several niche areas: microelectronic design, embedded systems, and mul- timedia. Students who were trained as a result of the region’s new program became experts in fields such as testing for large IT multinationals, both in soft- ware and hardware, and in developing software for SOURCE:WWW.NEARSHOREAMERICAS.COM/MEXICO-RISING-NEARSHORE-STAR/
  • ICT TRENDS REPORT 33MIT TECHNOLOGY REVIEW ICT Colombia Report ing in close collaboration with MIT and Harvard Medical School on implants to help heal spinal cord injuries.) The Uni- versity of Crete was only founded in 1973 but is already among the best in Greece, and the only Greek university to make Time Magazine’s lists of the top 300 uni- versities in the world and the top 50 rising university stars. In a recent interview, Gravanis explained that Greece’s universities had been highly partisan and political. The police could not enter university grounds, and as a result (as in Colombia) the uni- versities became hotbeds of extreme Though Greece is dealing with serious economic challenges, its university system has undergone significant and important reforms to try to overcome a situation at its universities that was similar to that in Colombia. First Jalisco State Innovation Appraisal 2001: As a result of this appraisal, a new model of socioeconomic development was formulated, based on innovation, science and technology. Exchange rate as of 12/12/12 2003: Jalisco GDP $37.5 million USD* 2011: Jalisco GDP $66.6 million USD* 2003 2011 Jalisco GDP (in $ millions USD) $37.5 $66.6 Jalisco GDP (in $ millions USD)* SOURCE:WWW.NEARSHOREAMERICAS.COM/MEXICO-RISING-NEARSHORE-STAR/ ICT for Developing Talent logistics, in support of a successful advanced manufacturing sector. Though the certificate programs were developed and staffed by industry, the certificate itself was granted by an inde- pendent institution. The local government also promoted the certification of companies, using the same capability maturity model that was used to create Carnegie Mellon University’s Software Engi- neering Institute. This model, designed to improve software development processes, refers to the optimization of certain business processes. (It was originally designed to help evaluate the extent to which government contractors’ processes were able to perform contracted software services.) “People at Carn- egie Mellon thought this could not apply to small and medium enterprises,” says Medina. “We decided to do it, and we proved it was very successful.” The team in Jalisco changed the syllabus to better fit Mexico and the needs of its smaller enterprises, and the model was later adopted by Mexico First as well. Medina says that all major industrial associations need to be included in any type of training project, and they need to be empowered. Another key requirement is that the program needs to be “constantly delivering results,” such as actual workers trained and hired. “This gives some credibility, and then slowly it becomes a virtuous cycle.” Another key aspect of training and developing talent, he adds, is the need to provide continuing mentoring and guidance to small and medium-sized enterprises, along with the funding to enable their success.
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW34 ICT Colombia Report left-wing activism that frequently led to strikes, takeovers, and paralysis, for as much as a month at a time. The extreme leftist parties, he says, were using the uni- versities as asylums. In addition, open university positions were filled through internal committees and political jockeying. In order to modernize the system, attract and hire the best talent, and open the universities to the needs of the cur- rent job market, the Greek university system underwent a number of signifi- cant reforms as part of a new national higher education law in 2011. One sig- nificant change: abolition of the academic asylum law, which had originally been intended to protect academic freedom, but instead was used politically by people who hid on university grounds to avoid law enforcement. After the change, police were allowed once again on university campuses, which may help mitigate the constant university closures. At Gravanis’s university today, as with all Greek universities, rector searches are conducted internationally, and the deci- sions are now made by newly formed Boards of Trustees rather than by internal, politically-motivated groups of students and political organizations. At the Uni- versity of Crete, a third of the members of the board of trustees are not academ- ics but leading scientists from Europe and the US. Says Gravanis, “We are copying the system in the US, so these people have the ability and the freedom to hire the best. So the new rectors will not act politically, but will act as administrators, as corpo- rate leaders—and this will facilitate the interaction with industry.” Another challenge to the university system in Greece—as in Colombia—is the need to “change the mentality,” says Gra- vanis. “Until now, there was a prejudice that interacting with industry, patent- ing and creating spinoff companies, was a sin. This has to change. The universi- ties and research centers must help the country overcome the economic crisis by reshaping industry and its international competitiveness.” One way to change this mentality, he believes, is to highlight the successes of small spinoff companies that grow and succeed, and perhaps are bought by a larger international company: “We need these types of success stories. We need people that will create businesses, small companies, startups, and produce wealth and intellectual property. They’ll grow into collaboration with industry to license their products, and they’ll create wealth for the higher education system and for society, as is the case in most European companies and the US.” Conclusion n ICT is already a necessity in a grow- ing number of jobs and industries, and it will be critical in the future. Meeting the needs of the digital workforce demands new skills and training, not only in cod- ing and programming, but also in design, management, and leadership. Universi- ties will be part of the solution, but uni- versity programs may be accompanied by high school programs, as well as tech- nical certification programs such as the ones Cisco and Microsoft offer. To meet the needs of industry, governments and academic centers around the world part- ner with for-profit enterprises in specially designed research centers. These part- nerships may also be aided by university reforms. In sum, it will take a wide variety of approaches, employed across a range of ages and skill sets, to create Colombia’s new knowledge force. ICT for Developing Talent
  • Entrepreneurship IN THIS SECTION Creating and Supporting ICT Entrepreneurs Accelerating the Enterprise Growing the Companies Innovative Cities and Regions A History of Regional Development IT Outsourcing, and Outsourcing Jobs CreatingandSupporting ICTEntrepreneurs n In developing a strong ICT sector, there are many challenges that revolve around how to create, support, and sustain enter- prises and jobs, both in the ICT industry in particular and in the business commu- nity in general. Chile has invested a great deal—mil- lions of dollars thus far—in creating a startup culture, which has been recog- nized internationally through its signature achievement, Start-Up Chile. According to an article by Vivek Wadhwa, a fellow at Stanford Law School, director of research at the Pratt School of Engineering at Duke University, and a consultant for Start-Up Chile, the new program was intended to be a counterbalance to the typical model of a regional innovation hub, which is usually a science park near a university, its creation accompanied by tax breaks to industry and investors. “The trouble is,” he wrote, “none of the hundreds of these top-down efforts anywhere in the world—including the handful in Chile— has produced the promised results.” Instead, Start-Up Chile was intended to create, support, and mentor Chilean enterprises and also to attract early-stage companies from entrepreneurs around 35STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW36 ICT Colombia Report Despite the program’s high profile in Latin America, it’s important to note that it is still too early for Start-Up Chile to have created robust metrics that can attest to its overall success. For example, solid figures on local job creation are not yet available. Acceleratingthe Enterprise n Start-Up Brasil, which began in 2012, looked at the Chilean model and also at successes in the US, Israel, and South Korea. Planners noted specific weaknesses in Brazil, such as the funding gap for early- stage startups and a lack of understand- ing between incubators and investors. As a result, the country created a public- private partnership to support early-stage technology startups, with about about $18 million. This will be invested in nine already existing start-up accelerators (rather than creating a new program from scratch), with a plan to accelerate around 100 new startups. The first call for appli- cations took place in March 2013, and applications are intended to highlight the innovation and scalability of their busi- nesses, and strong business models. This project will also fund approximately 25 percent non-Brazilian startups. Startups need support, training, and funding: Y Combinator in Silicon Valley provides all of that in a three-month boot camp that provides seed money and access to some of the elite of entrepreneurial minds, what Wired Magazine calls “the tech world’s most prestigious program for budding digital entrepreneurs.” Beta- works, which provides seed money to early media companies, goes beyond investing to provide new companies with guid- ance, coaching, and in-house designers in order to encourage entrepreneurs not to fear failure. (This is common among entrepreneurs and investors; internation- ally successful companies and regions expect failure as a matter of course for entrepreneurs.) One of the main benefits of Start-Up Chile, he says, has been its positive mar- keting. The country is now known as an innovation hub, which creates a virtuous circle of potential interest, investment, and jobs. Catherine Calarco, who has lectured at MIT and has 18 years of expe- rience in management, marketing, and innovation in the US, Europe, and Asia Pacific, sees marketing as one potentially key aspect in attracting talent and in attracting a country’s diaspora to return and invest locally. In addition to favor- able immigration policies, says Calarco, governments can try to attract highly edu- cated individuals from other countries and repatriate their own citizens who have studied or are working abroad. She sees this as an opportunity for Colombia, that there could be “a strong marketing com- munication about the country, evidence of how they’re joining the 21st century, and what they’re doing about [ICT].” Ire- land, she says, was extremely successful in marketing itself as an up-and-coming technology economy, and that helped cre- ate additional successes. the world, in order to create a hub of inno- vation and entrepreneurship in Chile. Thus far, the signs point to its success. In 2010, the pilot program brought 22 startups to Chile from 14 countries for a seven-month program. The candidates were judged by Silicon Valley and local experts; each received $40,000 of seed money, along with a one-year work visa. All program activities are conducted in English. Participants are introduced to top international mentors and venture capitalists, and they enjoy extensive net- working opportunities. In order to create an ecosystem of support, each new inno- vator is paired with local entrepreneurs and young “influencers,” as the Start-Up Chile website puts it. Awardees are also paired with previous Start-Up Chile recip- ients. Thus far the country has hosted more than a thousand entrepreneurs, cre- ated hundreds of jobs and raised millions in venture capital financing. Marcos Kulka, the director of Fun- dacion Chile, has been closely involved in Chile’s entrepreneurial activities. He says the government doesn’t believe in firing just one silver bullet to bring this about; in addition to Start-Up Chile, the government is providing funding for local entrepreneurs and tax incentives to foreign companies, attracting foreign companies to create research centers (See “Developing the ICT Talent”), and creat- ing incentives for local venture capital funds with government matching funds. Kulka notes that there are only a hand- ful of venture capital companies in Chile, which are connected to the international pool of talent and have invested in Sili- con Valley and elsewhere. But he says, “at the end I think it’s not a matter of money, the problem was more related to having good entrepreneurs. During the last two years, the critical mass of entrepreneurs has increased a great deal.” Another issue that has bolstered Start-Up Chile’s success, Kolkas adds, has been “how easy it is to create a company. Today, you can create a company in Chile in one day.” The country is also chang- ing its bankruptcy laws. “For instance, if you failed once, it was almost impos- sible to restart a business. Now they are completely changing the bankruptcy law,” SOURCE:STARTUPCHILE.ORG ICT for Entrepreneurship
  • ICT TRENDS REPORT 37MIT TECHNOLOGY REVIEW ICT Colombia Report and developers. In addition to investing in new companies, Betaworks also develops its own web services in house with its resi- dent community of hackers and designers. This was also the impetus behind iHub, in Nairobi, Kenya. The iHub is a community space for entrepreneurs and hackers, along with investors and technol- ogy companies. It is part of a series of local initiatives, including iHub Research, iHub Supercomputing Cluster, iHub Consult- ing, and iHub User Experience Lab. The iHub has garnered thousands of mem- bers and positioned Nairobi as a center of innovation in Africa. In addition to pro- viding access to top entrepreneurs and investors from around Africa, iHub also hosts the fastest Internet connections in Nairobi. There is now a global movement to strengthen accelerators. The Global Accel- erator Network covers 50 accelerators in 63 cities, on six continents. It was founded in 2010 by two founders of the accelera- tor TechStar as a way to connect and align the top accelerators around the world and “create a standardized model for their suc- cess.” Seed-DB is an online guide to seed accelerators and their companies, meant to be a resource for entrepreneurs, pro- gram founders, and investors. It includes information on accelerators around the world, the companies they’ve funded and how much funding they have pro- vided, along with the potential for users to analyze, for instance, the successes and failures of companies and accelerators. GrowingtheCompanies n In order to help emerging IT companies access the market, the state of Jalisco in Mexico took the tack of funding the cus- tomers, demand-side support. In such a situation, a new enterprise has a product, perhaps an online service, that a customer would like to use, but the customer finds it too risky to invest in, or has no experience working with IT startups. The govern- ment provides grants to the customers, so they can take advantage of the startup’s services without excessive financial risk. For instance, at the Florida Innovation Center, connected to the University of Florida, one emerging company called OwnForce has created an online facil- ity that provides business process man- agement services, including an online service for human resources, payroll man- agement, and support for benefits such as health insurance. If a similar startup were to emerge in Colombia, the gov- ernment could in theory provide grants to the first companies to try the service. This would support the company, and provide a potential positive feedback loop, with successes breeding additional future customers. One of the top challenges many would-be entrepreneurs face in Latin America is the lack of access to capital and lack of attention from venture cap- italists. Francisco Medina, a leader of Buenos Aires released its citywide Entrepreneurship Master Plan at the November 2013 Global Entrepreneurship Week. Mariano Mayer, a lawyer who has been involved in Argentinian dot com startups for the past decade and who also teaches entrepreneurship, will spearhead the project. To determine the best policies and data, Buenos Aires has established an “observatory” to work in conjunction with its modernization agency, which runs the open-data and open-government initiatives. SOURCE:OECD(2011),ENTREPRENEURSHIPATAGLANCE2011,OECD PUBLISHING,HTTP://DX.DOI.ORG/10.1787/9789264097711-EN Investment in Venture Capital, OECD Countries, 2009 Percentage of GDP Israel Sw eden United States Sw itzerland IrelandBelgium FinlandNorw ayAustraliaDenm ark France United Kingdom NetherlandsAustriaCanadaGerm any RepublicofKoreaPortugal Spain Czech RepublicEstoniaGreece ItalySlovenia Luxem bourgHungary Poland 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.14 0.15 0.16 0.17 0.18 Other venture capital Capital for seed/start-up/other early stage ICT for Entrepreneurship
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW38 ICT Colombia Report Jalisco’s ICT initiative, says that banks in Latin America can’t be expected to play that role. He says that in Latin America, a would-be borrower needs money or prop- erty to get a loan, which is a significant obstacle. Instead of relying on banks, he says governments need to subsidize or incentivize industry. On the issue of investment in Latin American companies, Juan Pablo Capello, an investor in more than 20 early stage companies, wrote an opinion piece in August, 2013 in The Next Web about what investors are getting wrong. (“Web 2.0 in Latin America: Why we blew it and what we can do to fix it.”) Capello writes that investors are losing and will continue to lose money in Latin American compa- nies—and thus lose interest in funding more companies—in part because their focus and strategy has been wrong. In an attempt to copy Silicon Valley, even on a somewhat reduced scale, venture capitalists have invested huge amounts into companies in the last three to four years, with the idea that there would be a multimillion dollar “exit,” or acquisition. California venture capitalism is based nearly entirely on the idea that most com- panies will fail, but there will be some Uruguay’s Growth in Successful Video Game Startups Improving the use of ICT in education had spinoff benefits for Uruguay, accord- ing to the Simon Romero in the New York Times. (“Pastoral Uruguay yields a crop of digital Yetis and adventures,” Feb. 2013). Following the CEIBAL program, which focuses on getting a laptop into the hands of every school child (See “Education”), the country has seen a surprising growth in successful startups that create video games for computers and hand-held devices, in part simply because there are so many such devices in the country. For instance, one successful startup, financed in part by a state-run incubator, created educational games designed for laptops. The new Uruguayan companies are now competing on the world stage and finding success in the US market as well. The country also has strong computer programs in its uni- versities, along with one of the region’s first degrees in video-game design at Uruguay’s largest private university, ORT University. Another factor contributing to Uru- guay’s rising in gaming companies is the easy immigration and travel rules, both for hires and, potentially, for funders; Romero cites a technology investor who planned a visit to Latin America to find companies to buy. Brazil required a visa, while Uruguay did not: he eventually bought a Uruguayan gaming company. The Times article also mentions the rise of gaming studios in Bra- zil, but adds that developers “there complain of byzantine tax regulations and labor rules that make hiring employees costlier than in some rich industrialized countries.” ICT for Entrepreneurship The Organization for Economic Co-operation and Development (OECD) produced a report in 2013 called Start-up Latin America: Promoting Innovation in the Region. Though the report focuses on startups in general, and not specifically on ICT, it compares the successes and policies of the more developed nations of Israel, Australia, and Finland, to six countries in Latin America: Argentina, Brazil, Chile, Colombia, Mexico, and Peru. The 210-page report provides many in-depth analyses of different approaches to this question. In Argentina, financing for startups is a challenge. Brazil is the largest innovation economy in Latin America, largely because of the size of its population and economy. Chile is attempting to attract international talent, while Colombia and Peru are focusing on finance and training programs to support entrepreneurs, and Mexico works to improve national legal regulations. “Latin American countries are highly heterogeneous and are implementing different support mechanisms. Yet, in the six countries, two common trends stand out: i) the increasing role of regional and local governments (such as the Ciudad de Buenos Aires in Argentina and in the States of Porto Alegre, Amazonia, and Sao Paulo in Brazil); and ii) the emerging role of large companies that are increasingly involved in financing and coaching start-uppers as part of their new open innovation strategies.” Business needed not only financing, but also training in management and a business-friendly environment: “Public policies therefore play a role in promoting start-ups by facilitating access to finance, development of entrepreneurial skills, and by setting up a business-friendly regulatory framework.” Early seed funding is important— and is often provided in part by the public sector—while venture capital is more important for the companies’ expansion. In Australia and Israel, public funding was crucial in the early stages, but private investment took over as the sector expanded and strengthened. The Start-up report states that Latin American countries need to increase public-sector support for research and development, and to “design incentives and policies to encourage private-sector investment in innovation, including the creation of technology-based firms.” Start-up Latin America: Promoting Innovation SOURCE:TROJANCHICKEN.COM
  • ICT TRENDS REPORT 39MIT TECHNOLOGY REVIEW ICT Colombia Report huge, dramatic successes. That has not come to pass in Latin America, and so Capello says investors are starting to shift their focus away from Latin America. But Capello wants to change the strat- egy. He says that investors and startups need to stop focusing on becoming copy- cats of American tech companies, the “Amazons of Latin America,” and concen- trate instead on small- and medium-size companies that display real innovations that meet local needs, engaging with local consumers and local economic groups to solve local problems. He says that angel investors in Latin America previously invested seed-capital rounds of between $250 to $750 thousand, but that this was a waste; a smarter strategy, he argues, would be to invest a smaller amount, per- haps $100 thousand, to help an emerging company that has a strong business model and plans for growth. Reiterating that Silicon Valley is a poor model for Latin America, Capello encourages governments to stop going on field trips to California or to Miami, because these fail to encourage invest- ment and are treated more like trips to Disneyland. Medina agrees; he says that instead of taking small- and medium-sized Mex- ican enterprises to the United States, he took them on a trip to India: “That was a real eye-opener. They saw that Indi- ans were leading worldwide with very few resources. That’s when they realized they were capable of doing things like that themselves.” Meeting Latin America’s particular needs, and recognizing the potential for Latin American successes, is part of what makes Rodrigo Teijeiro a Colombian suc- cess story. Teijeiro, whose work has been featured by a number of international magazines, including MIT Technology Review, founded Fnbox, a company that focuses on “creating, accelerating, and scaling internet businesses,” as the com- pany website states. Today Fnbox, which has supported, funded, and accelerated a number of significantly successful com- panies, has offices in Brazil, Mexico, Argentina, and the US. Some countries are bringing their stronger companies to the US in order to meet with investors and learn from entrepreneurs there. The Spanish Trade Association organized just such an initia- tive in San Francisco, where they provide a work location and training for sev- eral months. New Zealand has a “Kiwi Launching Pad,” established in 2011, which selects top New Zealand technol- ogy companies and helps them establish and advance their businesses in the US. InnovativeCities andRegions n Determining how to establish a new innovation center is challenging. There are multiple approaches to the design of a regional center that will be vibrant, encourage innovation, and attract both innovators and funders. In London’s Tech City, an area of East London that has become the city’s technology center, there are dozens of co- working spaces and event spaces, along with hundreds of startups. In order to support such a scene, the city government capitalized on the entrepreneurs already living in London and the attractiveness of the city to English-speaking workers. The local government spent more than $80 million to create coworking and event spaces and then held a series of breakfasts for heads of startups, along with investors and other interested parties. To support growth, the government introduced a spe- cial work visa for entrepreneurs, created the Tech City Investment Organization (which marketed Tech City overseas), and funded a seed enterprise investment scheme, which helped reduce the risk for investors. Still, according to an October, 2013 article in the Economist (“Start Me Up: A cluster of startups in east London is thriving; all they need now is a big suc- cess,”), hiring and financing companies grow remains a challenge. Some experts warn against excessive government intervention. In a Technol- ogy Review article about the attempt of other regions to copy Silicon Valley, (“In Innovation Quest, Regions Seek Criti- cal Mass,” July 2013), Antonio Regalado quotes Harvard Business School professor Josh Lerner as saying that when govern- ments attempt to “define where and when innovation will occur,” by creating specific innovation hubs around particular top- ics, “such efforts rarely have worked well.” Lerner says that “governments can play a role, but they should limit themselves mostly to ‘setting the table’: create laws that don’t penalize failed entrepreneurs, reduce taxes, and spend heavily on R&D.” Brad Feld agrees that the genuine push behind centers of innovation is the innovators themselves. Feld is the author Mexico is the World’s Fourth-Largest Provider of IT Services America’s “app economy,” went from zero to nearly 500 thousand jobs in five years, from 2007 to 2012. (SOURCE:TECHNET) The country saw its revenues from from information technology and business process outsourcing services (IPO and BPO) nearly double—from $6.99 billion to $12.25 billion—between 2006 and 2011. Outsourcing sales in the Americas as a whole slumped in the first quarter of 2013, but Mexico still enjoyed solid growth. 0 3 6 9 12 15 ($BILLIONS) 2006 2011 $6.99 billion $12.25 billion SOURCE:WWW.TECHCITYUK.COM ICT for Entrepreneurship SOURCE:HTTP://WWW.NEARSHOREAMERICAS.COM/ MEXICO-RISING-NEARSHORE-STAR/A
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW40 ICT Colombia Report A History of Regional Development Smaller metropolitan regions such as Boulder, Colorado and Kansas City, Missouri are often cited as relatively new startup hubs. A September, 2013 paper by Dane Stangler and published by the Ewing Marion Kauffman Foundation (“Path-dependent startup hubs, Comparing metropolitan performance: High-tech and ICT startup density”), however, demonstrates the history behind some of what are seen as “recent” successes. The article points out that “in recent years the adoption of new entrepreneurship programs is perhaps more an indication of the underlying strength of the region and its base of talent on which those programs can build than it is a cause of startup activity.” That seems to be the case with Kansas City, which has garnered attention as one of the new pilot homes for the Google Fiber experiment. Google Fiber, which provides Internet connection speeds of about a hundred times faster than what most Americans access today, set up facilities in Kansas City, and Kansas City is indeed a relative newcomer to the top start-up cities. Yet according to an article in the business magazine Inc. from July 2013, nearly all the startups were located in Kansas City before Google Fiber was established. The city benefited from existing efforts to promote entrepreneurship, along with connections to major medical centers. Perhaps Google Fiber was more a recognition of the existing strength of the community. The introduction of this network has, however, strengthened the spirit of the community, and the Kansas City start-up hub has become attractive to new companies from as far away as California. To help aid in the development of the hub, there are programs such as the new Home for Hackers, which provides startups with three months of free rent. Another key point made in the Stangler article is that, contrary to the image of the most successful startups as spearheaded by youths in their early 20s, the vast majority of successful startups are led by entrepreneurs between the ages of 35 and 45. These leaders and technologists have already had solid experience with previous companies, which provided the knowledge base that allowed them to branch out on their own. As such, the presence and strength of existing companies in the region can be key for success. In focusing on Boulder, Colorado, Stangler points out that Boulder, Co. was actually first on the list of small to mid-sized metropolitan regions for high-tech start-up density as far back as 1990, more than 20 years ago. It was still first in its size class in 2010. This, they stress, demonstrates that there was already a strong start-up presence there. But Boulder experienced greater than average growth in the number of high-tech startups. According to the 2008 article “Startup Town” in the Journal of the American Enterprise Institute by Ben Casnocha, that growth can be at least in part attributed to the strong network of technology individuals who all worked together to develop a brand for Boulder and to broadcast the brand—that Boulder is a great place for the software and Internet industry—out to the world. In part, this is based on Boulder’s natural assets: beautiful mountains and a strong university. In fact, Boulder’s rise in start-up strength was aided by investor and entrepreneur Brad Feld’s move to the city in 1995; he started calling other entrepreneurs to create a community, and they cofounded a local chapter of the Young Entrepreneurs’ Organization. The young entrepreneurs exchanged ideas and energy; some founded companies; and together the growing group attracted and gained increasing talent and experience. Local entrepreneurs also created an investment fund and a summer boot camp for would-be entrepreneurs, with a focus on community and mentoring. All of this activity feeds on itself, and Boulder continues to attract additional talent. This implies one avenue for the future: that as success stories in Colombia beget additional success stories, efforts should be made both to encourage an active community, whether in Bogotá, Medellín, or another locale, and to engage that community to market Colombia’s projects and successes to their peers within the country and abroad. ...one of the key factors in nurturing entrepreneurship is simplifying the business regulations that make starting businesses so difficult, while strengthening the legal institutions that protect new businesses. SOURCE:HOMESFORHACKERS.COM ICT for Entrepreneurship
  • ICT TRENDS REPORT 41MIT TECHNOLOGY REVIEW ICT Colombia Report of Startup Communities, published in 2012, and a partner at the Foundry Group, which invests in startups. He is a believer in the “Boulder Thesis,” which he named after his home community, and he’s cocre- ator of the organization and accelerator TechStars, which provides seed money and three months of training to startups in seven cities, including Austin, Chi- cago, Boston, Boulder, and Chicago, and which has recently expanded into Lon- don. In “It’s Up to You, Entrepreneurs” (Technology Review, July 2013), Feld says that government-created clusters rarely succeed, while start-up commu- nities supported by governments but led by entrepreneurs themselves have more potential for success. He mentions the hacker houses in Kansas City, where hack- ers live rent free and take advantage of Google’s high-speed Google Fiber. Some coworking spaces of this kind have government sponsors, while others are supported by private industry. Fish- burners, Australia’s largest technology coworking space, located in Sydney, is funded by industry, primarily by the tele- communications company Optus. Government and industry need to partner, says Fiona Murray, professor of entrepreneurship at MIT’s Sloan Business School (“In Innovation Quest, Regions Seek Critical Mass,” Technology Review, July 2013). Murray says that the answer to whether government or entrepreneurs can create the new start-up communities is somewhere in the middle, a mix of gov- SOURCE:WORKBAR,LLC Workbar is a network of shared, coworking office spaces offering an interactive atmosphere and resources for independent businesses. Note: The score uses a scale of 1 – 100, where 100 is the best score Country 2006 2007 2008 2009 2010 Argentina 299.7 339 342.9 61.4 67.1 Brazil 653.4 1 912.4 2 391.5 1 730.3 4 565.6 Chile 220.2 213.6 230.6 229.1 309.9 Colombia 16.3 82.9 80.1 117 390.6 Peru 9.2 21.5 64.6 78.2 70.9 Mexico - - - - 184.6 Private equity and venture capital, Latin America, 2006-10 (In millions of USD) Argentina 42 10 Brazil 72 2 Chile 75 1 Colombia 60 4 Mexico 65 3 Peru 49 8 Overall venture capital and private equity score, 2012 Regional ranking (Latin America and the Caribbean) Country Venture Capital in Latin America Development of the environment for venture capital, 2012 Note: The score uses a scale of 1 – 100, where 100 is the best score Country 2006 2007 2008 2009 2010 Argentina 299.7 339 342.9 61.4 67.1 Brazil 653.4 1 912.4 2 391.5 1 730.3 4 565.6 Chile 220.2 213.6 230.6 229.1 309.9 Colombia 16.3 82.9 80.1 117 390.6 Peru 9.2 21.5 64.6 78.2 70.9 Mexico - - - - 184.6 Private equity and venture capital, Latin America, 2006-10 (In millions of USD) Argentina 42 10 Brazil 72 2 Chile 75 1 Colombia 60 4 Mexico 65 3 Peru 49 8 Overall venture capital and private equity score, 2012 Regional ranking (Latin America and the Caribbean) Country Venture Capital in Latin America Development of the environment for venture capital, 2012 Venture Capital in Latin America SOURCE:ACAFI(2011),REPORTEDEVENTURECAPITALY PRIVATEEQUITYENCHILE,ACAFI,SANTIAGO,CHILE. SOURCE:LAVCA(2012),2012SCORECARD:THEPRIVATE EQUITYANDVENTURECAPITALENVIRONMENTINLATIN AMERICA,LAVCA,NEWYORK. ICT for Entrepreneurship
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW42 ICT Colombia Report ernment initiatives and entrepreneurial ones. One way governments can assist is through urban renewal, revitalization projects that attract new companies to particular downtown areas. Finland’s Tekes program (see: “Developing Talent”) has been moving in the same way; instead of developing specific regional clusters, the Finns are nurturing entrepreneur- ship in general. Of course, government can and does play an important role in the development of these innovative regions. In North Car- olina’s Research Triangle, a well-respected region of high-tech research and develop- ment, state and local governments, three major research universities and local busi- nesses came together in 1959 to set up the research park in order to prevent brain drain from North Carolina universities. Research Triangle, which has special zon- ing laws and tax rates, is now home to more than 170 companies that employ more than 42 thousand workers. The World Bank’s Doing Business report states that one of the key factors in nurturing entrepreneurship is simpli- fying the business regulations that make starting businesses so difficult, while strengthening the legal institutions that protect new businesses. Colombia was listed here as a regional champion for its efforts to reform regulatory practices. Some factors that seem to aid the development of local hubs include research universities and other institu- tions (though those are not absolutely necessary), existing companies and tal- ent, and, as the report’s authors suggest, “Perhaps there is an aspect of state law that shapes an environment conducive to entrepreneurship.” Often, however, an intangible factor makes one region rise to the top. That might be something as sim- ple as Boulder’s location in the Colorado mountains, which could attract people with the spirit to focus on development of new technologies and services. Whatever the reason, developing and attracting talent and building and supporting these kind of regional hubs appears to be key, according to the 2008 article “Startup Town” in the Journal of the American Enterprise Institute. “Technolo- gists choose from among San Francisco and Boston and Shanghai: specific cit- ies.” Author Ben Casnocha continues: “… creative output tends to come from team- work, and teamwork still happens best in person.” Erik Pages, a technology policy expert and consultant to the Colombian Ministry of Information and Commu- nications Technology, emphasizes that entrepreneurs tend to start companies and build communities where they live, rather than moving elsewhere to do so. As a result, he argues, the Colombian gov- ernment should focus on assisting local entrepreneurial talent and strengthening the local community. ITOutsourcing,and OutsourcingJobs n According to the World Bank, IT-based services “represent an addressable market of approximately $800 billion globally, and only about a third has been realized. IT-based services offer many direct and indirect employment opportunities, par- ticularly for youth and women… In India young people ages 26-35 hold around 70 percent of jobs in this industry, and in the Philippines women account for 60 percent of the IT-based services work- force—a much higher rate of youth and female participation than in the service and manufacturing sectors in general, for jobs that pay 50-100 percent more than comparable service jobs.” With the increase of rapid Internet access, jobs that were once limited by location can now be accomplished vir- tually anywhere. This is in part what led to the rise of the ITO industry in India, which has for decades been the world powerhouse in ITO, spearheaded by Tata Consultancy Services and Infosys. In India, early-stage jobs were relatively simple ones, including checking that com- puters would not crash at the end of 1999 and doing routine work for businesses, such as call-center management, called business-process outsourcing (BPO). Today’s IT tasks are significantly more sophisticated and complex. According to a July 2013 article in BusinessWeek (“Outsourcing Made by India Seen Hit by Immigration Law,”), “India will export as much as $87 billion of information technology services in the year ending March 2014,” which is “equivalent to about 4.5 percent of India’s $1.8 trillion gross domestic product.” (Some of that is threatened by a US immigration bill that raises costs on guest-worker visas and tightens a number of restrictions; guest- worker visas are an important part of the way in which India works with American clients.) Eastern Europe has become a strong location for outsourcing; Poland has emerged as a leader in the region. And Ukraine has also become a top ICT out- sourcing destination within Europe: its infrastructure costs are low, and there is a new law decreasing ICT taxes, which can positively influence ICT outsourc- ing. Companies in Ukraine have been providing ICT outsourcing services since Eastern Europe has become a strong location for outsourcing; Poland has emerged as a leader in the region. The Software Market in Latin America Grew by 16 Percent in 2012, with Brazil accounting for 55 percent of the regional market, according to the technology market research firm IDC. Mexico came in a close second with 20 percent of the market. The software market in Latin America grew by 16% in 2012, with Brazil accounting for 55% of the regional market, according to the technology market research firm IDC. Mexico came close second with 20% of the market. 55% 20% ICT for Entrepreneurship
  • ICT TRENDS REPORT 43MIT TECHNOLOGY REVIEW ICT Colombia Report Community Spotlight: MIT Enterprise Forum Pan- Arab Region • 6 annual competitions to date • Two tracks: ideas and startups • 5,000 applications • 900 entrepreneurs trained; 50% women • 250 knowledge-based jobs created • http://www.mitarabcompetition.com the early 1990s, and the country ranks high on scales of education and training (Ukraine has almost 100 percent literacy). The Philippines has been rising as a source of English-speaking ICT outsourc- ing. One government act that has assisted this growth is the Data Privacy Act, which holds the Philippines to interna- tional data privacy standards. According to Dan Breznitz, the Philippines holds a unique position: it is a large country with low wages and an English-speak- ing population, as well as a history of a labor force sent overseas to work, which helps local workers understand the cul- tures of countries that might outsource jobs to the Philippines. “It’s not enough to speak Spanish,” says Breznitz, referring to the potential to develop ICT outsourc- ing jobs in Colombia, “you also have to develop scripts that look as if the workers understand the culture” of the callers. He says that, before India became the pow- erhouse it now is, India lost a lot of jobs for exactly that reason. China has tried to set up ITO and mimic India’s success, but, says Breznitz, because of its lack of understanding of other countries’ cultural needs, the first successes in China came about because Indian companies set up large development centers in China. Outsourcing continues to provide jobs; according to the World Bank, coun- tries including the Dominican Republic, El Salvador, and Mauritius have begun to present outsourcing opportunities, which can provide well-paying jobs for youth and women. There are signs that ICT jobs are being increasingly outsourced to Latin America. In an article in BusinessWeek (“Outsourcing: A Passage Out of India,” March 2012), the author writes that having workers in Argentina and Brazil close to American time zones is a plus, and Brazil has plenty of young people with engineering and business expe- rience, along with a large community of Java programmers and mainframe (COBOL) programmers. IBM located a research center in São Paulo in 2010, and India’s Tata Consultancy has 8,500 employees throughout Latin America, MIT Enterprise Forum Overview: MIT Enterprise Forum is the preeminent organization of entrepreneurs in the global innovation economy, providing connections and inspiration to early stage technology entrepreneurs to help them succeed. IMAGECOURTESYOFMITENTERPRISEFORUM,INC. AWHOLLYOWNEDSUBSIDIARYOFMIT ICT for Entrepreneurship
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW44 ICT Colombia Report including an office in Colombia. Colombia has one special outsourcing success story in Heinsohn, which has offices through- out Colombia and in the US, Ecuador, and Chile. According to a 2012 Nearshore Amer- icas Global Delivery Report, “Where Mexico Outperforms India: Leverag- ing Latin America to Streamline Global IT Delivery,” Latin America in general, and Mexico specifically, have captured American ICT outsourcing dollars in a number of ways. Its author, Luke Bujar- ski, notes that Mexico has benefitted from long-standing cultural connections with the US. In addition, the growth of the software and application development methods known as Agile, which integrate the roles of various players in ICT busi- nesses, demands time-zone and cultural affinity. (Not only in Mexico; one software manager quoted in the report highlights the importance of Brazilian software experts sharing a time zone.) Guadalaja- ra’s focus on developing the digital media industry makes it an ideal locale for out- sourcing creative services. According to Nearshore Americas, Mexico is now the world’s fourth-largest provider of IT ser- vices. Latin America offers companies the opportunity to outsource nearshore test- ing, allowing them to meet the demand in Spanish-speaking markets. The Tholons report 2013 Top 100 Outsourcing Destinations highlights the growth of outsourcing in Colombia, writing that Colombian industry has partnered with Western providers: the company “Invest in Bogota extended its support to Convergys when it needed bilingual speakers for its initial operations in Bogota. Aravato Iberia has just started its back-office operations in Bucara- manga, confident to generate 1,000 jobs in the city. ACI Medellin helped in orga- nizing the second O2LAC conference in Medellin, realizing the event as a critical tool for marketing Medellin as another location in the country for IT services.” It is not just ICT jobs that can be out- sourced: crowd sourcing can provide potential for lower-wage jobs. Nathan Eagle, cofounder and CEO of Jana, had an idea that started him on an international crowd-sourcing path: could millions of poor people work for employers in richer countries? Instead of gathering those long-distance employees at a particular call center, he thought that the mobile- phone platform could provide the needed link. This was the basis for Txteagle, which he founded in Cambridge, Massa- chusetts. That business, now called Jana, has employed tens of thousands of peo- ple around the world. Originally, people earned small cash payments or airtime on their mobile phones by performing tasks such as completing surveys or translat- ing and transcribing documents. Today Jana’s focus is on both surveys and mar- keting: users can earn airtime or coupons by answering questions for surveys (CNN used Jana in March 2013 to ask Africans what they thought about a potential African pope) and rating commercial products via their cell phones. One exam- ple of crowd sourcing in Colombia is SyC, based in Bucaramanga. Conclusion n Supporting and encouraging entrepreneurship is a key aspect of a national ICT strategy. Start-Up Chile has captured the attention of many in Latin America, while other accelerator models around the world have demonstrated success in nurturing new and emerging companies. Regional hubs have grown, in part through deliberate activity through local governments and entrepreneurs, and in part through the natural attractions of those cities and regions. Many experts stress that it is important to develop a sense of community among the entrepreneurs in a given region and thus leverage the ability of that community to attract and support new ventures. Viewing outsourcing as a potential driver of job creation, Latin America is clearly growing as a source of near-shore job exports from the US, and Colombia presents a real opportunity for development in this sector. Summary of Latin American IT Purchases in Dollars $ billions (USD), 2012 SOURCE:FORRSIGHTSTECHINDUSTRYECONOMICS,2000TO2015,Q3 2012NOTE:FORRESTERFORECAST $ Mexico $23.4 Brazil $46.5 Argentina Venezuela Colombia Chile Peru Other Latin America Latin America $6.1 $1.6 $5.4 $5.2 $2.5 $6.5 $97.2 Colombia $5.4 $1.6 $2.5 $2.5 $6.1 Chile Argentina Mexic Brazil $46.5 Brazi Venezuela $23.4 Peru o Total IT Purchases in Latin America ICT for Entrepreneurship
  • Enterprise IN THIS SECTION Overview Improving Agriculture Improving Farming Enterprises Farm Technology in Latin America Better Exports Via ICTs ICT in Financial Services Bottom of the Pyramid Data Centers and Cloud Computing n The growing focus on enterprise use of ICT is a crucial step if businesses are to increase productivity, develop economi- cally, and access wider markets. Accord- ing to the World Bank, “sales growth and profitability are 3.4 and 5.1 percentage points higher, respectively, among firms that use ICTs effectively in their busi- nesses.” In the developing world, ICT use may be hindered by lack of knowledge and skills. Even in strong emerging markets, the divide between firms that do and do not use ICTs is significant. The World Bank states that “in Brazil and India the most sophisticated firms use technolo- gies and achieve productivity levels that compete with world leaders, but the vast majority of other firms operate at a fifth of the top performers’ productivity.” Part of the challenge can be that small- and medium-sized enterprises do not yet see the benefit to employing such technologies. One way to speed up their adoption is by having a larger enterprise in a given ecosystem require all its sup- pliers and partners to adopt similar ICT systems; for instance a Wal-Mart might state that it will only accept standard ven- dor application program interfaces, or APIs. That is along the lines of the part- nership between the government and the Colombian cement company CEMEX, 45 STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW46 ICT Colombia Report precisely, and to help the farmer adjust fertilizers or pesticides or time harvests in the most exacting manner. At this pre- cision level, smartphone applications can offer farmers tools like farm management software, with field maps, GPS tracking, and soil sampling grids, and other soft- ware that offers information about the best ways to mix and apply crop protec- tion sprays and then keeps track of what was sprayed and when. The FAO recommends the adoption of policies that reduce the digital divide and increase rural access to the Internet: “It is essential to promote public policies, programs, and innovative public and pri- vate initiatives that foster equal access to ICTs and to vital information needed by different agricultural chain stakeholders for making economic and environmental decisions.” ImprovingFarming Enterprises n A potential benefit of increasing the use of ICTs among farmers lies in bettering the economic situation of small-scale farm- ers. Many positive outcomes for farmers are now possible: access to information about markets and prices; the ability to connect directly with buyers; information about weather conditions and pests; and the ability to learn or share best practices for combating problems such as pests or drought. Initiatives designed to improve the situation of smallholders have grown rapidly around the world, but so far there are few analyses of their overall impact because most of these projects have not been in place long enough, or scaled up enough, for dramatic changes in produc- tion or impact to be measured. But the type of information these ini- tiatives can provide could be critical to the future of small agriculture. And in Colom- bia, as in much of the world, while few rural residents have access to the Inter- net, an increasing number have access to cell phones. As a result, international agricultural applications focus on cell phone use to aid farmers. For example, since 2005, the Esoko Ghana Commodity where CEMEX has received grants from the government to increase the use of ICT in the supply chain. For microenterprises, which do not necessarily share a digital interface with large companies, sometimes the use of cell phones—and text messages, rather than mobile Internet—can supply the needed introductory access to ICT services. In Africa, according to the 2011 Technol- ogy Review article “Office Lessons from Africa,” business owners “rely...on a highly evolved system of text messages.” This enables shop owners to use such systems where cellular service is available, but Wi-Fi isn’t. Mobile apps such as M-Pesa in Kenya (see “ICT in Financial Services”) can allow such business transactions. As smartphones increase their penetration and decrease in cost, microenterprises can add more sophisticated applications. This section will examine two impor- tant sectors, agriculture and financial services, discussing where ICT technol- ogy is already having a major impact and where its impact will continue to grow dramatically in the future. It will conclude with an investigation of the role of cloud computing. ImprovingAgriculture n It is universally acknowledged that ICTs can play a major role in agriculture, from small-scale farmers to giant agribusi- nesses. As the UN Food and Agriculture Organization (FAO) stated in The Role of Information and Communication Tech- nologies in the Improvement of Agricul- tural Value Chains, ICT use “will result in improvements to the competitiveness of the chain in general.” Agriculturally valuable ICT applications range from those that supply access to basic business information—“price and market infor- mation, weather conditions, economic variables, communication with peers, and business transactions” —to others that lead to higher-order results. The more sophisticated uses may include traceabil- ity for export, or the application of preci- sion agriculture, which employs satellite and GPS data to map weather, water, soil characteristics, and other field variables Index, which tracks wholesale and retail commodity prices, has been published weekly: it now provides real-time price information via text message to more than 2.5 million farmers. Another project in Ghana, CocoaLink, operates using both voice and text: farmers can send in texts or photos for expert help, and can also receive practical, timely, and applicable agricultural information. CocoaLink also holds sessions to train farmers, not just on mobile system use, but on other agri- cultural techniques as well. Estimates are that yields have improved as a result. A cell-phone service in India also pro- vides information to farmers. This service, IFFCO Kisan Sanchar Limited, was cre- ated through a partnership of a mobile network operator, a finance company, and the Indian Farmers Fertilizer Cooperative Ltd. And in Sri Lanka, another project enables farmers to receive real-time price information through a partnership between an NGO and the country’s largest mobile network operator. Many new agricultural networks are emerging. A mobile platform in Kenya IMAGECOPYRIGHT©TRIMBLENAVIGATIONLIMITED2014. USEDWITHPERMISSION. Trimble’s Connected Farm app, which is free for smartphones, uses the built-in GPS of the smartphone to collect in-field data. ICT for Enterprise
  • ICT TRENDS REPORT 47MIT TECHNOLOGY REVIEW ICT Colombia Report called iCow texts information about livestock management, and addresses challenges such as the failure of maize crops to more than 11 thousand rural herders, mostly older farmers. (The younger farmers use Facebook to relay information.) In 2011, the Gates Founda- tion launched an initiative in partnership with the US Agency for International Development (USAID), the mFarmer Initiative Fund, devoted to helping low- income farmers access information via cell phones. The FAO emphasizes the need for public partnerships with the private sector and stresses the important role of gov- ernment-approved experts in assuring the quality of information and account- ability. In a 2012 document called Mobile technologies for food security, agriculture and rural development: role of the public sector, the FAO emphasized that technol- ogy-based programs fail if they do not focus enough on their users, or if the con- tent is not relevant for the users’ needs, or if the business models cannot be scaled up. Projects need private partners, such as the mobile network operators; these projects can also be bundled with finan- cial services, including “mobile money.” Projects like these are definitely useful to wealthier farmers, who use ICT in pre- cision farming and in accessing markets as well. Of the growing number of apps for farmers in emerging and wealthier economies, several were described in a 2012 New York Times article, “Letting the Cloud Watch over the Farm.” FarmLogs, based in Michigan, offers a cloud-based service to farmers that provides farm management software to track and log all of a farmer’s activities. Another app, Farmeron, focuses on livestock manage- ment, and charges each of its users based on the number of livestock and the num- ber of app users. The Times goes on to describe a third app, Solum, which allows farmers to send in soil samples for analy- sis before mapping the results via GPS, helping farmers determine where to place fertilizer or seeds. FarmTechnologyin LatinAmerica n In March, 2012 the United Nations pub- lished a newsletter called Agriculture and ICT, which was focused exclusively on Latin America. In its introduction, Mar- celo Bosch, of Argentina’s National Agri- cultural Technology Institute, pointed out that ICT use in agriculture encompasses everything from mobile texts for small- scale landowners to real-time monitor- ing of a large-scale farm’s harvest, from farmer to agro-industry. In order to achieve the appropriate public policies, Bosch writes, a number of steps are necessary. These include developing the appropriate, accurate diagnostics at both the national and regional level; training professionals in interdisciplinary fields such as agro- computer science and agro-robotics; educating youth; building strong sci- entific and technology institutions; and creating powerful regional innovation initiatives. Many experts quoted in the newsletter highlight the need for a three- pronged approach, one that encompasses increased Internet connectivity, develop- ment of appropriate and useful content for different producers and regions, and training. In the same UN newsletter, Monica Rodrigues, economic affairs officer in the Economic Commission for Latin Ameri- ca’s agricultural development unit, writes that the increased use of ICTs alone will not by itself shrink what she calls “agricul- tural asymmetries,” the gap between rich and poor agricultural workers. Complex ICTs, such as those designed for trace- ability and precision agriculture, tend to be employed more extensively in large agribusinesses. Meanwhile, cell-phone owners who could use their phones to access agricultural information are lim- ited by age, education, and technological literacy. One possible policy to reduce this asymmetry, Rodrigues suggests, is the exchange of success stories among Latin American countries. She adds that policies that encourage ICT use must be accompanied by educational and moti- vational strategies that can teach farmers the skills to access digital content. Hugo Chavarría, Costa Rica special- ist at the Inter-American Institute for Cooperation on Agriculture, says that one of the challenges to creating sustain- able, scalable IT projects for agriculture is that the public agriculture institutions that serve farmers do not themselves use ICTs optimally. He recommends a “digital literacy policy for all employees in pub- lic agricultural institutions, including a plan for implementation, follow-up, and assessment.” In Bolivia, according to Victor Vásquez Mamani, Bolivia’s vice-minister of rural and agricultural development, the original website for the Ministry of Rural Development, Agriculture, and the Environment had not taken into account the needs of its potential users and had therefore been largely ignored. Once the website was made more user friendly and included content that farmers wanted, A mobile platform in Kenya called iCow texts information about livestock management. ICT for Enterprise
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW48 ICT Colombia Report Chile, farmers of high-value crops such as wine grapes are using precision diag- nostics to help choose the most favorable spots to plant. BetterExportsviaICTs n A 2011 research paper by Laura Jait- man evaluated the impact of ICTs on small- and medium-scale cattle ranchers in Argentina. Jaitman’s study looked at a new program called TRAZ.AR, intended to “electronically identify and track the production cycle of cow herds.” (“From Cow Sellers to Beef Exporters: the Impact of Traceability on Cattle Farmers,” Univer- sity College, London) Traceability is intended to improve product quality: all the data on the animals is stored centrally, and this information can be used not only for marketing and auditing but also for improvements to production and trad- ing decisions. Smaller-scale herders have faced financial and technological barriers to implementation. The TRAZ.AR pro- gram in Argentina’s Santa Fe province was meant to combat these challenges and to strengthen the competitiveness of the region’s meat on the international market. (Traceability is required by some higher-end export markets, including the European Union). Despite the high level of meat pro- duction in Argentina, the adoption of technology had been slow, and there was plenty of room for improvement in the use of ICTs. TRAZ.AR was implemented in 2004-2006. The cattle were equipped with ear tags with radio-frequency ID (RFID) chips that stored information about them, and the farmers were trained to use handheld computers to read the tag information. The Argentine project proved successful. Those who used the system increased their livestock herds by 15 percent and “rural skilled employ- ment doubled relative to the non-treated control group.” (That is, there was more opportunity for skilled work on the ranches that employed TRAZ.AR.) In addition, “the program also encouraged the farmers to improve their sanitation, animal welfare, and meat quality stan- traffic increased. The Bolivian govern- ment, for instance, now monitors prices and alerts producers to price differen- tials among markets, information that helps producers decide where to sell their products. As a result, the government has initiated an agro-environmental produc- tion central office, which, among its other tasks, monitors production and prices and coordinates all local, regional, and national government activities related to agriculture. The rural development minis- try is also using schools as Internet centers to help disburse information to farmers. In Uruguay, the expansion of Plan CEIBAL, which was designed to allow rural students access to computers and Internet, gave farmers an advantage as well. With their increased connectivity, they can now receive more accurate and timely weather information. Chile has a number of projects underway. The Agro-Climate Network, a partnership of the Fruit Industry Devel- opment Foundation, the Meteorological Directorate of Chile, and its Agricultural Research Institute, focuses on improv- ing weather and other data services for farmers. Chile has also implemented a price-data delivery service that uses text messages. A digital library created by the Foundation for Agricultural Innova- tion can be accessed on line or via phone. And the Yo Agricultor project, developed in partnership with the Inter-American Development Bank, searches for ICT solutions that can provide access to infor- mation appropriate for different regions and for specific production clusters. Chile has also instituted a territo- rial information system, set up in rural communities with high levels of pov- erty, which gives farmers access to data on soil, climate, water, and other needed information, all presented visually. And according to Marcos Kulka of Fundación Putting Climate Data to Work Big data is put to use in the highly localized precision agriculture tools created by the company The Climate Corporation (which was purchased by Monsanto in October, 2013). Farmers can use either their “basic” or “pro” services, which analyze up- to-date climate, soil, and crop-growth information to advise farmers how to treat each acre of a field, as those conditions may vary widely over a farmer’s acreage. This data analysis, presented to farmers in an easy-to- use format, can greatly increase their crop yields and incomes. SOURCE:CLIMATE.COM ICT for Enterprise
  • ICT TRENDS REPORT 49MIT TECHNOLOGY REVIEW ICT Colombia Report dards, which enabled them to export to the EU, increasing their profits.” Traceability, then, is an advance that can be supported by national policies and regulations, and can apply not just to livestock but to other products that have potential for export as well. An increase in data can provide other benefits. In an article in Technology Review, a new premium chocolate com- pany, Tcho, worked with Equal Exchange and received a multimillion dollar grant from USAID to install minilabs in Peru, Ecuador, and the Dominican Republic. Each site has a computer and software that allows it to input data on tempera- ture, heat, humidity, pH, and the Brix level (which measures sweetness). The tasters on the farms and in San Fran- cisco can taste and compare notes using the software; this allows farmers to adjust the variables for fermentation to attain a consistent product to meet the needs of the high-end market. ICTinFinancial Services n Both at the bottom of the economic pyramid and for individuals in wealth- ier communities and countries, the use of ICT in financial services, whether on line or via mobile devices, is a growing and powerful trend. Mobile banking and mobile payments to poor consumers can help them financially and allow them greater access to business, health, and home-services opportunities. Expanded opportunities for banks, enterprises, and consumers via mobile devices and the Internet offer greater ease, efficiency, and market opportunities. Government policies play an impor- tant role. According to the World Bank, “The private sector can create m-bank- ing, for example, and fund its network of agents to transport cash. But it cannot get started unless the central bank has estab- lished enabling banking legislations and regulations, payment security standards, and rules for what happens when things go wrong.” In Kenya, according to the World Bank’s 2012 report The Transformational Use of Information and Communication Technologies in Africa, “ICT remains a government priority,” and “policy mak- ers have been relatively flexible in their approach to experimentation.” The report describes how “the Central Bank of Kenya (CBK) [the regulator] was willing to sup- port a pilot for mobile money transactions and find a balance between regulations, oversight, and flexibility for the mobile operator to experiment.” The CBK regularly met with officials of the tele- communications company Safaricom and the Safaricom initiative M-Pesa, which “allowed Safaricom, and others, to expand their service offerings to customers while reassuring regulators that appropriate safeguards are in place.” When focusing on bottom-of-the- pyramid customers, the World Bank recommends that governments should help to lower the fear of risk among bankers by providing measured loan guar- antees, similar to those given by the Small Business Administration in the US. Such programs can also be complemented by making training available to small and medium-size enterprises (SMEs) in financial management, innovation and marketing. The World Bank makes this recom- mendation as well: “Detailed guidelines rather than mandatory rules would be most helpful to streamline the back-end systems that should be installed and managed across institutions. A banking technology coor- dinating group within central banks, ministries of finance/development, or independently operating offices could assess and audit technologies that enable financial inclusion. Such a body could monitor and outline the latest and most strategically relevant back-end systems, including mobile banking components, and interface with technologies used by different institutions.” The UK’s Royal Society for the Encouragement of Arts, Manufactures, and Commerce (RSA), in its pamphlet From the Digital Divide to Inclusive Innovation: The Case of Digital Money, recommends that governments provide infrastructure and produce regulations to A new premium chocolate company, Tcho, worked with Equal Exchange and received a multimillion dollar grant from USAID to install minilabs in Peru, Ecuador, and the Dominican Republic. Note: ages 15+; home and work locations;excludes traffic from public computers such as Internet cafes and access from mobile phones and PDAs Venezuela Chile Brazil Argentina Peru 47.0% 43.8% 43.7% 28.9% 25.9% 25.8% 22.9% 14.8% 31.3% 31.0% Puerto Rico Colombia Mexico Latin America Worldwide SOURCE:COMSCORE Online Banking Users in Select Countries in Latin America and Worldwide, March 2013 % of Internet users ICT for Enterprise
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW50 ICT Colombia Report ensure competitive provision of services and their secure and private access. Stan- dards are needed to ensure that systems will connect with one another. Regula- tions are required to limit abuse such as setting exorbitantly high interest rates in microfinancing schemes. Of course, online and mobile financial services also depend on robust security to protect the data on their systems, as well as the security to ensure that the indi- viduals using the accounts are who they say they are. That is part of the impetus behind India’s massive unique identifica- tion project. BottomofthePyramid n One of the challenges to improving the economic situation of poor consumers is deciding how to provide financial services to them. Without bank accounts, people cannot save money, access credit, or invest in their futures. That in turn restricts the individuals’ ability to participate in the larger economy by spending money on needed services. As a result, many new and emerging ICT technologies and initiatives focus on offering financial services for poor con- sumers. The rapid expansion of mobile phones offers a unique opportunity to reach people who live far from traditional banks. One of the best known initiatives is Kenya’s M-Pesa, which allows any citizen who possesses a national ID and a mobile phone to deposit, access, and trans- fer money. First conceived as a method for receiving and repaying microloans, this service, begun in 2007 by the tele- com company Safaricom, allows its users access to a network of agents around the country, who are authorized to allow users to deposit and withdraw money. M-Pesa has expanded into a payment platform that is used for transactions such as pay- ing bills and school fees and adding time to cell phones, and today it has more than 18 million subscribers. By early 2012, according to the World Bank, M-Pesa transactions exceeded $375 million per month and accounted for as much as 20 percent of Kenya’s GDP. M-Pesa has expanded into other markets, including Tanzania, Afghanistan, and South Africa. (The growth of M-Pesa in Kenya has per- mitted additional consumer transactions, such as using the service to put money down for solar-powered chargers and LED lamps, and slowly pay back the full cost of the systems at less than fifty cents a day.) Another advantage of mobile services of this kind is that they may not demand the same identification and financial resources as traditional banks. For Yel- lowPepper Holdings, which operates mobile banking and payments in nine In 2012 the International Finance Corporation published The Demand Study for Transactional Mobile Financial Services in Colombia. This 100-page report is based on interviews with low-income individuals who either use no financial services at all or are underserved. According to the report, “Mobile financial services are regarded as a potential breakthrough in access to finance in Colombia. Through these mobile approaches, low-income and remote populations may be reached cost effectively and in an appropriate manner.” During the surveys of 900 respondents, it emerged that nearly none had heard of mobile financial-services technology, but that, “after it was explained, almost two-thirds were interested in trying it.” The Demand Study makes a number of recommendations, among them the suggestion that financial services should be marketed with consideration for segmental differences, such as age, financial literacy, and technical skills. Some of the leading demands were for products that allow users to “carry money safely,” which are known as Me2Me, and to pay for air time, transportation, and utility bills. The institutions most trusted by the respondents, and ones that the IFC recommends as potential agents for mobile financial services, are neighborhood shops, telephone booths (cabinas), and supermarkets. 1,130 580 298 153 7837 2009 1200 1000 800 600 400 200 0 2010 2012 2013 20142011 Mobile Financial Services in Colombia: A Study on Demand Global Volume of Mobile Payment Transactions $ billion (USD) SOURCE:IEMARKETRESEARCH,“Q32010UNITEDSTATES MOBILEPAYMENTMARKETFORECAST,2010-2014”,2010 ICT for Enterprise
  • ICT TRENDS REPORT 51MIT TECHNOLOGY REVIEW ICT Colombia Report countries in Latin America and the Carib- bean (including Colombia), applicants need only a simple ID, a mobile phone, and a deposit of a few dollars. A bank, in contrast, often requires several hun- dred dollars and proof of an address to open an account. YellowPepper users can access bank savings information, trans- fer money to other individuals, pay bills, and add money to increase cell-phone minutes. YellowPepper already has more than 4 million customers and more than 25 million transactions per month. Latin America is a fertile market: the Interna- tional Finance Corporation stated in 2010 that Latin America and the Caribbean at the time had a 78 percent cell-phone penetration, even though only 35 percent Technology expands enterprise opportunities in richer countries and communities as well. Online banking is popular throughout Western economies, alongside online purchasing and marketing. In Sweden, which in 1661 was the first country to introduce bank notes, only a small fraction of today’s economy is transacted with paper money. Online consumer banking is one leading edge of this trend towards moving financial services online; Venezuela, Chile, and Brazil lead Latin America in the percentage of Internet users who access banking services online. The digital payments company Dwolla was founded on the concept that the Internet moves data quickly from person to person, and that it should do the same for money, making all financial transactions fast and significantly less expensive than via current means. The company has more than 250 thousand consumer and business customers and is likely to process more than $1 billion in total activity in 2013. Dwolla’s network is directly connected to banks, avoiding pricey credit card fees, and Dwolla processes the requests—and moves money—in real time, which is unusual for such financial services. Mobile services such as Square, which consists of a small credit card reader attached to a cell phone that allows anyone to become either a seller or a buyer, are increasing opportunities for small- and microenterprise owners. And the growth of the digital wallet (an advanced platform for mobile payment accessed via cell phone or the web and also incorporating features such as loyalty rewards and coupons) is on the rise in both emerging markets and the developed world. These services all depend on extensive cooperation of the players, as the Google Wallet Initiative, which involves Google, Citi, Mastercard, First Data, Sprint, and other enterprises, shows. According to the Royal Society’s Digital Divide pamphlet, business opportunities are also to be found in providing the technology and services to link multiple players in these financial initiatives: thus the company Monetise plc was founded as a platform to link up the financial data of buyers, sellers, and banks. A number of banks, telecom companies, and other service providers are now hooking up to transact mobile payments via “near field communication,” or NFC, which allows users on the same platform to exchange payment information merely by tapping their devices. In the Netherlands, a number of institutions have joined up to offer this service. An NFC platform intended particularly to access urban transportation and pay local retailers has also been developed and tested in Nice, France. Mobile payment use is also growing in emerging Western economies. In Slovakia, customers and merchants with access to the mobile-payment network can now use a contactless (NFC) feature for transactions of less than 20 euros, while larger transactions require a PIN number. Telecom and mobile providers in the Czech Republic have also joined forces to promote mobile payments, where consumers may pay either via text or by drawing on prepaid credits. The Growth of Mobile Payments and Digital Wallets of the population had accessed financial services. Services like these are expanding worldwide. In its 2013 review of top-ten IT trends, the consultancy company McK- insey reported that such mobile payments could be seen across the globe: in Ban- gladesh, the Dutch-Bangla Bank Limited (DBBL) “garnered over a million mobile- payment subscribers in ten months” able to transfer payments, salaries, and remittances; while the Standard Bank of South Africa “reduced its origination costs for new customers by 80 percent using mobile devices.” In Sierra Leone, the Sierra Investment Fund and the ManoCap Soros Fund have invested in the mobile payments and banking company Splash Mobile Money. They have used a guarantee from the World Bank through the Multilateral Guarantee Investment Agency (MIGA), which will provide coverage over the next decade “against the risks of transfer restriction, expropriation, war, and civil disturbance, to support and cover their investment,” according to the World Bank. In the Philippines, almost 91 percent of the population now uses mobile wallets. And USAID has partnered with Citi to continue the expansion of mobile money around the world. In many countries, the high cost of accessing credit gives great urgency to the SOURCE:HTTP://HELP.DWOLLA.COM/CUSTOMER/PORTAL/ ARTICLES/402662-DWOLLA-LOGOS ICT for Enterprise
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW52 ICT Colombia Report Helping Companies Access High-Level Software at a Low Cost, from Anywhere Cloud computing—and its data needs—is expected to multiply in use over the coming years. According to the networking company Cisco, the explosion of cloud computing will cause data traffic to grow almost five- fold around the world, from 1.2 zettabytes in 2012 to 5.3 zettabytes by 2017. The authors of the Cisco Global Cloud Index 2012-2017 write, “The main qualitative drivers for cloud adoption include faster delivery of services and data, increased application performance, as well as improved operational efficiencies.” Data centers have the potential to support the development of local technology infrastructure and jobs, and they may also increase access to cloud-based computing and services. The IFC invested $3.5 million in a cloud-oriented data center in the Ukraine, which will help attract companies to the area and provide services to financial institutions and corporations. There are many such initiatives around the world, such as new Microsoft and Google data centers in Finland. China has invested massively in cloud computing: its government has established major national cloud-computing centers, creating ICT hubs throughout the country. The government expects these centers to serve government, businesses, and high-performance computing needs. In general, this is a growing trend with major implications for businesses. Dan Breznitz says that massive centers for cloud computing, such as those in China, have the potential to transform business. He sees such centers as “a way to both lower the price and also make accessible the most cutting-edge ICT raw power to small businesses. So even if you’re a small business you suddenly have almost the same computing capacity as Microsoft.” Demand for colocated data centers, where equipment and bandwidth are available for rental, promises to outpace supply, according to the 2013 Colocation in Latin America report by DatacenterDynamics. Brazil has the largest number, while Colombia has many new entrants to the market. And most regional providers in Latin America are international companies with a presence in the region rather than local enterprises. For instance, Oracle is hosting a new data center in Brazil, while, in September 2013, IBM announced that the company is investing $17 million in a cloud-hosting facility in Bogotá. Whether or not Colombia continues to increase the number of data centers, cloud computing now allows businesses and entrepreneurs to bypass geographical boundaries and access high-level software at a low cost. In the past, companies had to maintain their own IT infrastructure, but the cloud obviates that need. In 2009, the Obama administration launched a program to encourage the adoption of cloud services throughout the US federal government, in an effort to be more efficient and effective, streamline technology, save money, and close expensive government data centers. The program began officially in 2012, and there have already been some successes in switching to the cloud. For instance, the Department of Health and Human Services has transitioned to cloud- based solutions for grants, audit resolution tracking management systems. But there are also challenges, such as security, transition and training within government agencies, standardization, and setting the criteria the federal agencies need to use for cloud-based services. ICT for Enterprise
  • ICT TRENDS REPORT 53MIT TECHNOLOGY REVIEW ICT Colombia Report Increasing the use of ICT technology is not a challenge just for enterprises—it also requires increasing consumer use of ICT technology. Many programs already exist, even inside Colombia, to train people who lack current skills to use computers and the relevant technologies. In October, 2013, Wired magazine published an article about a program at the Tenderloin Technology Lab to train the homeless in San Francisco to use computers. The Latin American e-learning site Competir created a branch of its site, called AulaAD, which is devoted to technology, and offers online training in digital literacy. (Of course, this training assumes that users are able to access such an e-learning site.) A 2012 journal article “Same but Different: Comparing Public Access Computing Venues in Colombia” (ICT4D, December 2012) looked into whether and how Colombian consumers accessed computers in libraries (which are government funded), telecenters (which are either nonprofit initiatives or government projects), or cyber cafes (private businesses). The study was based on research conducted in 2010. Cyber cafes were found to meet local needs, but did not carry out activities to strengthen socioeconomic development; they mostly just provided access. Community social centers, which do provide strong training and support, met challenges of sustaining their activities and maintaining or upgrading the needed equipment. Libraries, which can provide vocational services, suffered from lack of sufficient coverage and staffing, poor quality of Internet connections, and inability to upgrade the equipment. The users interviewed stated that they needed tools, programs, and spaces that offer more and better access to ICT and user training. adoption of mobile payments and loans. Business owners, such as small farmers, who lack access to traditional credit, may need to take out loans that, in India, can cost them up to 10 percent per day to pay back. (Talbot, David, “Fighting Poverty by Clearing a Bottleneck,” Technology Review, October 2012) And although farmers can use mobile phones and texts for financial transactions, they still need banks in which to store their money in the first place. There is an additional tech- nological bottleneck here: farmers must fill out forms to set up their accounts. In India, where 1.2 billion people lack access to credit, some may currently use rural banking outposts or automated kiosks, which use satellite links to convey the information back to the main bank, but this method is both costly and unreliable. According to Talbot, the Xerox Research Center in India has developed a method to decipher an applicant’s handwriting, translate it into English from any of 12 languages, then send only a fraction of the data over satellite networks. This inno- vation could dramatically decrease the expense of setting up banking outposts in remote rural areas of the world. The McKinsey report also highlights the role that mobile payments can play in expanding e-commerce opportuni- ties. Customers can, for instance, pay additional merchants relying on credit credentials they used previously with 9.0 ZETTTABYTESPERYEAR 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 9.0 ZETTTABYTESPERYEAR 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 46% 54% 69% 31% 2012 2013 2014 2015 2016 2017 Cloud Data Center (35% CAGR) Traditional Data Center (12% CAGR) 2.6 ZB 3.3 ZB 4.2 ZB 5.2 ZB 6.4 ZB 7.7 ZB 2012 2013 2014 2015 2016 2017 25% CAGR* 2012–2017 Global Data Center IP Traffic Growth Total Data Center Traffic Growth 25% CAGR* 2012–2017 SOURCE:CISCOGLOBALCLOUDINDEXSOURCE:CISCOGLOBALCLOUDINDEX New Ways of Learning STORYTELLING G-LEARNING TRANSMEDIA EDUCATION Basic Training for Computer Literacy *Compound Annual Growth Rate *Compound Annual Growth Rate ICT for Enterprise
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW54 ICT Colombia Report another merchant in the same program. And with YellowPepper, distributors and small retailers can exchange money via text message instead of actual cash on hand (which carries the risk of getting robbed). As populations and domestic production in cities in the world’s emerg- ing economies grow as expected, “One likely consequence for fast-growing cities will be the rapid development of dense, digitally enabled commerce—new, highly evolved ecosystems combining devices, payment systems, digital and technology infrastructure, and logistics.” Conclusion n ICT promises to increase the efficiency and effectiveness of many different enter- prises. In agriculture, the use of technol- ogy allows small-scale farmers to access a world of information, from how to deal with crop diseases to data on the going market prices for crops, and can help these business owners reach a wider audience for their products. More techno- logically advanced and larger-scale land- owners can employ precision agriculture, based on up-to-the-minute data about climate, soil, and crops. They can tag ani- mals or products for greater transpar- ency and quality control and thus reach a larger international market. Access to financial services provides a variety of benefits: consumers, along with small businesses and microenterprises, can pay bills, move money, access credit, and invest in the future. Cell phones provide platforms for such services to additional millions of people. For wealth- ier consumers, online banking and mobile money is making financial transactions faster, easier, and more convenient. For businesses and governments, cloud computing is now providing a means to access many kinds of software services at a reduced cost, and without the need to set up an IT infrastructure. ICT Agriculture Cloud ComputingFinancial Services ICT for Enterprise
  • HealthCare IN THIS SECTION Overview Telemedicine Electronic Health-Care Records Big Data Mobile Phones for Health n In health care, ICT is providing immense returns in the quality and accuracy of care, and is enabling doctors and nurses to provide high-quality support, often at a distance, to rural or poor communities, at a fraction of the previous cost. The role of ICT in health care can encompass a wide variety of technologies and approaches, and multitudes of conferences, journals, and papers are devoted to every relevant topic. This section will cover trends in a few of these areas, and highlight some stories that point to successes, challenges, and opportunities. In general, while technology presents many opportunities in health care, experts warn that a number of considerations are crucial to its use, including security, identification and authentication, and controlled access to information. The 2013 OECD study ICTs and the Health Sector: Towards Smarter Health and Well- ness Models indicates that financing and business models should be considered in adopting technologies, because reg- ulatory structures provide a variety of incentives to different levels of health care and providers. The OECD also stresses the importance of training health-care providers and community workers in any new technologies, and of monitoring and evaluating any new devices and programs, along with their costs and benefits. 55 STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW56 ICT Colombia Report ing the physician to monitor the patient’s symptoms, signals, and response to treat- ment. For instance, a diabetic patient’s scale could be hooked up with a smart- phone, which could transmit the data to the patient’s doctor. This will become increasingly important as many countries manage the challenges of an aging popu- lation. In Beijing, China, a new public-private partnership is behind a remote cardio- vascular-monitoring system. Patients administer their own electrocardiograms; the data is transmitted to specialists in Beijing who can offer treatment sug- gestions over the phone. In Sweden, a program exists to deliver speech therapy from a distance. In Norway, teledialysis allows consultants to remotely review the ongoing treatment of dialysis patients, without the need to travel to care for rural patients. Such a teledialysis system was adopted in Inverness, Scotland, and unnecessary patient journeys fell from 76 percent to 6.5 percent while patient safety has improved. Geisinger Health Plan, based in Penn- sylvania, tested a home telemonitoring system for patients with congestive heart failure; they reduced the patient read- mission rate by 44 percent compared to a control group. Geisinger also operates a tele-Intensive Care Unit technology devel- oped by Philips Healthcare, which is used by 400 hospitals. In this system, hospital patients are monitored by the ICU staff describes in detail how a system was set up to reach poor rural areas of Nicaragua underserved by health-care and Internet technologies. The paper outlines some technical solutions and challenges, and the system has been designed to be rep- licable in other communities. In their evaluation of the technologies used and the system of care, the authors suggest that such a system be institutionalized, with a set protocol, so that it can survive despite the frequently high turnover of health-care workers. Even in communities that already have access to health care, some aspects of telemedicine can reduce costs and contribute to improved outcomes. In a September, 2013 New York Times arti- cle (“Hi, It’s Your Doctor”), Dr. Ezekiel Emanuel describes a home-care service provided by the private company Carena to Seattle companies, including Microsoft and Costco. Starting in 2010, Carena has offered “house calls” over the phone and webcam, replacing many patient visits to doctors or emergency rooms. Writes Emanuel, “According to Carena, about 75 percent of those calls are resolved via the webcam, and only about 25 percent require an in-person visit with a doctor or a trip to the emergency room.” Many research centers are examining the ways in which homes can be adapted into offshoots of medical-care centers. Research is ongoing into sensors that could be set up in a patient’s home, allow- Telemedicine n When it comes to both reaching under- served communities and following up with patients in their homes, telemed- icine offers many approaches. Distant communities can use simple technolo- gies—videos, perhaps some sensors, even phone calls—to access improved health care and health information. Govern- ments, meanwhile, can track and man- age diseases. For instance, in one project in India, health-care workers used video- conferencing between eye hospitals and clinics in remote villages to attempt to eradicate blindness. A December, 2012 article in the journal Information Technologies and International Development, “A Telehealth and Information System for Underserved Children in Rural Areas of Nicaragua,” (SOURCE:WORLDECONOMICFORUM:GLOBALAGENDA COUNCILFORDIGITALHEALTH2013) • McKinsey projects opportunities in global mHealth (mobile health) to be $60 billion. • In 45 out of 167 countries, no responsible unit for the manage- ment of medical devices exists within their health ministries; 87 countries do not address health technology in their national health policies. • The global e-health market is now estimated at $96 billion, and is increasing on every continent. 2000 2010 2011 2012 2013 2014 2015 2016 2017 Others 1800 1600 1400 1200 1000 800 600 400 200 0 Mental Health Hypertension Diabetes COPD CHF World Telehealth Patients by Disease (in thousands) SOURCE:HTTP://HISTALKMOBILE.COM/WEEKLY-RECAP-2113/ ICT for Health Care
  • ICT TRENDS REPORT 57MIT TECHNOLOGY REVIEW ICT Colombia Report via two-way video and audio, which offer a very clear view of the patient. ICU staff can monitor a number of patients simul- taneously. This reduces the need for active caretakers; the remote tele-ICU team can notify the onsite team when they are par- ticularly needed at a patient’s bedside. Another remote monitoring system called ZephyrLIFE, by Zephyr Technolo- gies, uses the Zephyr BioPatch, worn by a patient, which wirelessly transmits the patient’s vital signals to a workstation. Nurses can then monitor heart rate, res- piration rate, and EKG signals. Israel’s EarlySense System monitors patients via sensors placed under mattresses. The US Veterans Administration has become a model of telehealth care. While these services began as a means to pro- vide management of chronic illnesses and post-traumatic stress disorder, they have since expanded to provide veterans with preventive health care. And Native Ameri- cans along the border of Nevada and Utah are receiving telehealth services arranged by TruClinic. Many of these native com- munities lacked Internet access before the telehealth project began; now, in addi- tion to the videoconferencing services, the households also receive free satellite- based Internet for the program’s first year. Eric Topol, director of the Scripps Translational Science Institute in Cali- fornia, is a fan of implementing wireless technologies to aid health care. As he told Technology Review in 2010, “It’s the beginning of an era of remote monitoring. What do we need hospital beds for except for the highest-acuity intensive-care set- ting?” In January, 2012, Frost & Sullivan predicted that the market for remote patient monitoring will reach nearly $300 million by 2015. One result of the upcoming trends in telemedicine and monitoring is a vast new outpouring of data. There are significant business opportunities in the near future for companies that can compile, interpret, and distill the information that both tele- medicine and remote monitoring provide to enable physicians to easily utilize this data to provide improved treatment. ElectronicHealth-Care Records n Electronic health records (EHR) have the potential to facilitate the treatment of patients. With a national registry of EHRs, patients need never worry about how to transfer their health information from one doctor to another. Emergency care providers will be able to easily call up a patient’s data to determine if there are any special circumstances to consider. This can help save money as well, since an EHR provides clear documentation of every test that has been done, eliminating the practice of repeat procedures. EHRs can save lives; an alert on an EHR could notify a health-care provider about drug interactions. The use of EHRs goes beyond an individual’s health-care providers. The UK’s National Health System England (NHS England) has created a new initia- tive called Care.data, which extracts and compiles all the data for every patient interaction with a health-care provider. It includes the patient’s demographics, symptoms, diagnoses, and treatments. The patient has access to this data, and researchers can also access aggregated data or data under pseudonyms, which can help them evaluate treatments and care and improve the health-care situ- 91% of doctors surveyed in eight countries use electronic medical records (2012) Singapore Australia CanadaUSGermanySpain UKFrance 95% 93% 93% 92% 87% 83% 82% 76% Overall Maturity Index by Country: Leading the Way in Mobile Health SOURCE:ECONOMISTINTELLIGENCEUNITFORPWC SOURCE:ACCENTUREEIGHT-COUNTRYSURVEY 6.2 6.5 7.5 6.0 8.2 3.4 6.4 7.8 6.2 4.7 7.4 6.8 6.5 7.6 5.1 3.8 6.9 4.1 3.6 7.8 3.8 6.6 6.6 4.8 5.1 6.3 7.3 2.6 4.4 5.1 6.1 5.4 2.4 8.1 6.6 3.4 4.3 6.6 6.5 6.3 5.7 5.6 5.5 5.3 5.2 5.15.6 5.1 7.5 5.6 South Africa India Brazil US Spain China Germany UK Turkey Denmark Awareness and openess for mHealth Regulatory environment, reimbursement and business model Technology Impact 10 most mature 1 immature OVERALL SCORE ICT for Health Care
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW58 ICT Colombia Report Finland is recognized as a leader in the field of EHRs. Finland had long been moving towards electronic records on the local and regional level. Then in 2006 a policy decision was made to build a national health information sys- tem: all the vendors had to standardize their systems. Today, all Finnish citizens’ health-care records have already been moved to EHRs, and patient information is consistently collected in line with the necessary specifications. In addition, the use of e-prescriptions works smoothly. The European Health Telemat- ics Association has evaluated Finland’s system and recommends it as a bench- mark for e-Health. The report includes recommendations for improvement, including chronic-disease management and improving the participation of health- care providers. To solve some of these issues, Finland is now moving into more advanced technological uses of ICT. These include, for instance, maternity cards for expectant mothers’ EHRs, and new models for health care that include vir- tual medical facilities and health kiosks, staffed by nurses and other other health- care staff who can help consumers with preventive care. The information acquired ation for all citizens. (“Big Data and Health: Revolutionizing Medicine and Public Health,” Alex Pentland, 2013) Establishing such linked EHRs, however, can be a challenge for national governments. There are often compet- ing interests. In the US, hospitals have devised their own internal ICT systems, but there has been no requirement that one be easily interoperable with another. David Blumenthal, president of The Commonwealth Fund (a nonprofit group that conducts research on health and social issues policy) and a former national coordinator for health informa- tion technology, says that in addition to the need for interoperability, the security of the data is of paramount importance. Says Blumenthal, “You need security and trust relationships similar to what is assumed for the mail, so that people who violate the security are punished, and it can’t be tampered with, inter- cepted or misused.” Though physicians often complain about having to use new technology, says Blumenthal, follow-up surveys show that 75 to 80 percent are satisfied or very satisfied with electronic health records. The US lags in the implementa- tion of linked EHRs, though they are a critical requirement of the new Afford- able Care Act and are to take effect by 2015. In other countries, however, the transition has been far smoother. Aus- tralia, the Netherlands, New Zealand, Norway and the UK all have adoption rates of over 90 percent, according to Health Affairs, a policy journal. Northern Europe and Spain have invested millions of dollars in setting up both regional and national systems, and have demonstrated their success in improving health-care outcomes. Denmark’s medical informa- tion system is considered to be one of the most efficient. The gradual transi- tion to EHRs has been found to save the health-care system more than $100 mil- lion a year while it saves time and lives; for instance, emergency medical techni- cians can update a patient’s EHR in an ambulance before she even arrives at the hospital. in such kiosks is added to the patient’s EHR. There are some challenges to the easy use of EHRs by physicians, according to a May 2013 article in Healthcare IT News (“The Top Four Hurdles to EHR Imple- mentation”). Among these are network and connectivity issues, ineffective design of the templates that doctors use, and performance issues of software applica- tions. Its author, Michael Gleeson, senior vice president of the health IT consult- ing company Arcadia Solutions, warns that these issues could lead to decreases in productivity if they are not addressed prior to implementing a new system or soon thereafter. BigData n According to the OECD study on ICTs and the health sector, aggregation and analysis of patient health records is one of the major opportunities in health-care technology. But additional opportunities exist in big data and health care: research- ers and companies are starting to pres- ent information—addressing questions such as where the most pressing health- care needs are, or where hospitals should Patient medical records waiting digitization, archives room, Hospital Local del Norte, Bucuramanga, Santander region, Colombia, March 2012. COPYRIGHT–BURTONHOYTLEE2012-2013 ICT for Health Care
  • ICT TRENDS REPORT 59MIT TECHNOLOGY REVIEW ICT Colombia Report be located—that can provide local and national governments with needed policy direction. Christopher Murray, director of the Institute for Health Metrics Evalua- tion (IMHE), worked with a team that created a visualization tool for global health, called GBD Compare, based on data from the Global Burden of Disease reports. (“Data visualization aims to change view of global health,” BBC, June, 2013, by Cynthia Graber.) The Global Bur- den of Disease report compiles the most up-to-date data on the causes of death and disease around the world, and users may click it through to create charts and graphs that compare causes of disease and death for, for instance, women or for children of a certain age; or users may examine the impact of particular diseases. This tool allows governments to spend resources effectively and create policies to address the most significant health- care problems. Countries such as China, Indonesia, Brazil, and the UK are now partnering with the IMHE to produce even more detailed versions of individual countries’ health information. General Electric is applying its vast experience building machines, (which today are equipped with first-class software) to tackle health-care issues. Mitchell Higashi, chief economist of GE Healthcare, spoke at MIT’s EmTech con- ference in October 2013. He described some of the challenges in much of the world, where government leaders are “trying to design and build cutting-edge health-care systems. They want to make use of the data: Where should they build the next hospital? How should they equip it? How can they make sure that it will improve … [their] population health met- rics? There’s an opportunity to use big data.” Higashi continued, “If policy mak- ers had better access to big data, richer insights, we think they could be coming to the table with more robust policies at the implementation phase.” That is why GE Healthcare is involved in providing big-data health-care tools. Global Burden of Disease—Both Sexes, All Ages, 2010 (measured in disability-adjusted life years, or DALYs) SOURCE:IINSTITUTEFORHEALTHMETRICSANDEVALUATIONGBD2010,RELEASED3/2013 COPYRIGHT2013UNIVERSITYOFWASHINGTON SOURCE:HTTPS:FLUNEARYOU.ORG SOURCE:HTTPS:FLUNEARYOU.ORG Disability-adjusted life year (DALY) is a measure of overall disease burden, expressed as the number of years lost due to ill-health, disability or early death. ICT for Health Care
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW60 ICT Colombia Report They are creating maps, visualizations of quantitative information, and mod- els that simulate future needs. They are attempting to examine the data down to small units within communi- ties. They have created an interactive tool in which users can drag and drop hospital icons into a given region and work at balancing improvements to health-care outcomes with enhancing economic investments. GE already has a system running in one state in India. “To our knowledge,” said Higashi, “this is the first digital map and model that’s completely interactive.” Data visualization can also help identify and treat emerging pandem- ics. Larry Brilliant, president of the Skoll Global Threats Fund, presented his vision for the use of big data in pre- venting the spread of disease at the TEDMED conference in Washington, DC in April, 2013. He listed the critical factors as “early detection, verification, real-time reporting, care diagnostics, rapid response, and global governance.” Quicker detection, he emphasized, with a focus on better surveillance, can lead to controlling the spread of communi- cable diseases. Many online detection systems are popping up today, such as Flu Near You by Healthmap and vBulletin’s FluTrack- ers. By analyzing national trends in Google searches, Brilliant said research- ers were able to beat the Centers for Disease Control reporting on flu spread by two weeks. (The CDC relies on doctors to take samples, test for flu, and report the results.) Many governments see the opportu- nities in big data. In the US, the National Institutes of Health provided a grant to IBM, in partnership with health-care consultants Sutter Health and Geisinger Health, funding a medical diagnostics project that utilizes data from electronic health records. IBM’s experience in data analytics will be paired with the health- care companies’ knowledge to develop algorithms to detect early onset of heart failure. IBM is also focused on cancer research; IBM’s artificially intelligent computer Watson has been trained in all aspects of cancer research and detec- tion by reading hundreds of thousands of medical reports, more than 1.5 million patient records, and millions of clinical trial reports and medical journal articles. IBM is now pairing with oncologists at Memorial Sloan-Kettering Cancer Center in New York City to help diagnose new cancer patients more accurately and then suggest treatments. Doctors around the country will be able to rent cloud time with Watson. In 2013 MIT professor Alex (Sandy) Pentland wrote a report on the use of big data in health, Revolutionizing Medicine and Public Health. The report describes a project in the Punjab province of Pakistan, where the local government partnered with the IT University of Punjab to curb mosquito-transmitted dengue fever, which continued to plague the area. The project team modified open-source soft- ware created by the US CDC, recorded the residence locations of infected patients, and equipped government employees with smartphones to photograph and geocode areas of standing water where UCLA researcher Aydogan Ozcan has turned a cell phone into a microscope and thus a means for detecting diseases such as malaria. SOURCE:OZCANRESEARCHGROUPATUCLA IBM’s artificially intelligent computer Watson has been trained in all aspects of cancer research and detection. ICT for Health Care
  • ICT TRENDS REPORT 61MIT TECHNOLOGY REVIEW ICT Colombia Report PHOTO:ANDYRYAN,MITMEDIALAB mosquitoes breed, enabling the team to track its progress in the fight to destroy mosquito breeding grounds. Pentland recommends creating “centers of excellence to train Big Data behavioral and health scientists in the use of open-source tools for data analysis,” and “support[ing] partnerships between physicians and Big Data behavioral sci- entists to create ‘living laboratories’ that develop new Big Data health solutions.” MobilePhonesfor Health n Smartphones, whose computer power and imaging capabilities keep increas- ing, are offering powerful new tools for doctors, particularly for those who need to reach rural and impoverished commu- nities. They are small and portable, and can easily be equipped with slightly more sophisticated technologies to enhance their capabilities. The information taken via cell phone can easily be sent for deeper analysis at a distant, central location. According to a 2011 report by the consult- ing firm Frost & Sullivan (“Latin Ameri- can Mobile Health Services Markets”), Colombia has the lowest index of hospital beds per inhabitant of the countries ana- lyzed in Latin America, and thus could particularly benefit from increasing exist- ing mobile health initiatives and adopting additional ones. At the 2013 TEDMed conference in Washington, DC, a group that included the editor of the magazine Medgadget presented the potential for a smartphone physical. They hooked up smartphones to a number of devices, either available now or under development, and were able to test blood pressure, pulse and oxygen saturation, visual acuity, ear drums, lung function, and heart health. These devices are portable, smaller than the ones that would typically be found in a doctor’s office. This technology could be particu- larly useful in emergency situations, or in telemedicine, where agents who lack full medical training could be taught to collect the necessary data, which could then be uploaded and evaluated by a physician. The visual acuity test, an inexpen- sive tool and app called Netra designed by MIT researcher Ramesh Raskar, is a simple, accurate eyesight test that can help ophthalmologists provide inexpen- sive tests to measure their patient’s need for glasses. Raskar envisioned this tech- nology as a way to help his native India; a provider heading out to rural India with the simple device can test an individual’s eyesight and easily determine the appro- priate prescription for glasses to improve a person’s sight, and therefore life. The company EyeNetra is already part- nering with hospitals in India. University of California Los Angeles researcher Aydogan Ozcan has turned a cell phone into a microscope and thus a means for detecting diseases such as malaria. Many medical diagnoses cur- rently rely on blood samples, which must be transported to hospitals and evaluated with traditional heavy, pow- erful microscopes. With a small, portable attachment, a phone, camera, and Ozcan’s add-on together create a microscope that can image bacteria and viruses. It is already being deployed in Africa to accurately diagnose malaria in the field. In Africa, the use of cell phones for health has become a key means of reaching patients. In Kenya, the mobile network operator Safaricom has part- nered with the startup Call-a-Doc so that the company’s 18 million subscrib- ers can access health-care advice through a simple, inexpensive phone call. In 2013 the magazine Fast Company listed Safaricom among the top 10 innovative companies because of this mobile medi- cal system. In Ghana and Liberia, the organi- zation Africa Aid has created a system called MDNet, where doctors can call or text each other without charge, provid- ing an inexpensive, reliable system for consultations and patient referrals. The system also lets doctors use their phones for an unlimited time during emergency situations, freeing them from worrying about their phone minutes. M-Pedigree is a text-messaging system from Ghana that allows users to determine whether their medicine is authentic or coun- terfeit; this system is in use in Ghana, Nigeria, Kenya, and India, with pilot programs in additional countries. Mozambique’s Department of Health teamed up with the GAVI Alliance, a public-private partnership for immu- nization, to launch a 2013 pilot project where health workers use text mes- sages to alert mothers in a given area when vaccinations are available. Special Netra is an inexpensive and easy-to-attach add-on for self-testing eyesight quickly, easily, and accurately with a cell phone. Experts on health in Africa say the cell phone has revolutionized health care there. Mobile Diagnostics Startups are developing portable diagnostics that consumers might use. Measurement EyeNetra Refraction of the eye Cellscope Photo of inner ear ALiveCor Electrocardiogram Quanttus Heart rate, blood pressure Scanadu Temperature, heart rate, blood oxygen iBGStar Blood glucose ICT for Health Care SOURCE:MITTECHNOLOGYREVIEW
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW62 ICT Colombia Report software has been developed to match Tanzania’s local conditions and needs. IBM has developed a mobile text system for Tanzania to ensure efficient manage- ment of pharmaceutical supply chains for rural clinics. By texting, the clinics help the overall system to track drug inventory levels in real time, so health-care profes- sionals can receive drugs to take into the field exactly when needed. This process ensures the clinics are properly stocked and helps avoid drug losses. Experts on health in Africa say the cell phone has revolutionized health care there. In Bangladesh, text messages are now used to notify nurse-midwife teams when a birth is about to occur. Even in Swe- den, a significantly wealthier country, SOURCE:SCANADUSCOUTTM The Scanadu Scout: One-touch medical monitoring texts are at the heart of a new program to save patients from cardiac arrest. Citi- zens with cardiopulmonary resuscitation (CPR) experience are part of a volunteer network, and when a Stockholm resident calls with an emergency, a text goes out to volunteers who are within 500 meters. That way, someone can rush to help the patient in the critical first minutes even before the ambulance arrives. Smartphones are also at the core of what’s known as the “quantified self ” movement. Users can load applications, or wear sensors, that monitor any num- ber of features and activities, such as sleep, exercise, blood pressure, or heart rate. These can be evaluated on a website where a consumer may track his or her health and statistics, or be sent to phy- sicians. Small new devices such as the Scout, made by Scanadu, can scan tem- perature, heart rate, pulse oximetry, and blood pressure and send the information to a smartphone, which can then help physicians diagnose common diseases. So far, though, wearable sensors seem to be in use mostly among higher-income individuals with relatively few chronic illnesses. Conclusion n Technology plays an increasingly important role in health care and offers opportunities to expand health-care reach and improve treatment. Telemedicine is already allowing doctors to care for patients in distant towns, and to monitor patients at home once they have been released from care. Smartphones can now be used for health evaluation and monitoring, as these powerful mini- computers can be complemented by small-scale technology that increases their utility in the field. EHRs gather all the necessary information about a patient in one place, easing the transition between providers. EHRs can also be a rich data source for researchers; their information, along with a variety of other health-care data, feeds into the use of big data in health care, which is helping to inform national policies and decisions around the world. ICT for Health Care
  • National Development IN THIS SECTION Overview ICT Successes: Israel, Taiwan, and Ireland Further Examples of National Policies World Bank Recommendations n Colombia, alongside many other coun- tries in the world, is trying to determine its path forward, deciding how to employ ICT to create successes across all sectors of the economy, for poor communities and wealthier ones alike, from government to industry to health care. And Colom- bia, like so many other countries, has an eye on the international models of ICT success. But every country and region that has demonstrated ICT success has done so with its own set of policies that have led to different outcomes. There is no one path to success, says Dan Breznitz, author of a number of books on technology and development. In a recent interview, Breznitz reported that many governments have been asking him what is needed to create successful ICT and technological advances. The one absolute requirement, he says, is people who understand ICT: “What’s necessary but not sufficient is the people who can develop the tech- nology.” As for the rest of the necessary ingredients, there are many options, and a few lessons. 63 STUARTBRADFORD
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW64 ICT Colombia Report investment and innovative IT companies that could play on an international scale. As a result, many Israeli companies have been either bought out by major Ameri- can players or simply been outcompeted. Of course there have been many successes, and many Israelis have been made quite rich. But, says Breznitz, a downfall of this focus is a lack of middle-class jobs, and a growing chasm between the rich and the poor. Also, he points out, Israel is the only country that has yet succeeded using a Silicon Valley model, so it’s a difficult path to follow. Breznitz argues that in Ireland— unlike Israel or Taiwan, which attempted to create new industries—the overarch- ing goal was job creation. The country focused on improving its education and its physical infrastructure. As with Colom- bia today, Ireland focused on creating a highly-skilled workforce. “Indeed, even today, if a regional college wants to open a new degree course, it has to show that the industries around it not only want these skills but also approve the specific curricula offered.” Major international corporations are involved in the develop- ment of courses of study at local colleges. ICTSuccesses:Israel, Taiwan,andIreland n As Breznitz writes in Innovation and the State: Political choice and strategies for growth in Israel, Taiwan, and Ireland (and highlighted in an interview), all three countries had similar ICT beginnings but then followed dramatically different paths to ICT success; these paths led to different outcomes. Each one brought benefits, but had its drawbacks. All three nations began as “poor, peripheral, and technologically backward societies in 1950.” Each improved its edu- cational system, and thus the base of skills in the countries. Each also improved its physical infrastructure, just as Colom- bia is doing now. They all created “public telecommunication companies that vastly improved their line-subscription penetra- tion rates.” And all three focused on small and medium-sized enterprises (unlike Japan and South Korea, Breznitz writes). Here the similarities end. Israel mod- eled its success on that in Silicon Valley, and focused on government grants to private industry, alongside international Though the Irish government developed policies to encourage manufac- turing facilities, those never materialized. Instead, the local software industry flour- ished. One iconic company that Breznitz highlights, Iona, was created by com- puter-science lecturers at Trinity College, supported by EU grants. The government did not create favorable policies and sup- port for the software industry until it was already growing, and had achieved a number of demonstrated successes. The government of Taiwan controlled investment and relied on public research agencies. The country did not invent any of its technologies—not semiconductors, nor fabrication innovations—but they figured out the way to manufacture the technologies efficiently and effectively to supply hundreds of international com- panies. “They completely transformed the global industry,” says Breznitz, and as a result most global ICT hardware companies do not own their own fabri- cation factories. Taiwan over the years became the world leader with, according to Breznitz, “R&D powers [in fabrication] that can rival any American company. Innovation Investment, Conditions, and Performance Source: The Global Competitiveness Report 2011-2012 ©2011 World Economic Forum INNOVATION PILLAR 4.4 29 3.9 44 3.5 46 3.5 57 3.3 63 3.2 78 3.1 113 2.7 Enabling environment Competition 4.8 66 4.3 132 3.6 23 4.9 128 3.7 103 4.0 141 3.0 59 4.4 Quality of math and science education 4.6 31 4.7 127 2.7 87 2.8 83 3.7 126 2.7 113 3.2 135 2.4 Quality of education system 4.4 54 4.0 115 3.0 124 3.4 72 3.7 107 3.1 86 3.4 128 2.6 ICT use 4.9 74 2.5 63 2.7 56 3.0 78 2.5 73 2.5 55 3.0 82 2.3 Gov’t procurement of advanced tech products 3.9 16 4.4 52 3.9 47 4.0 45 4.0 75 3.6 127 2.8 98 3.3 Intellectual property protection 4.9 47 4.0 84 3.2 63 3.6 86 3.2 85 3.2 128 2.5 122 2.5 Venture capital availability 3.1 22 3.5 52 2.8 34 3.1 49 2.9 78 2.5 129 1.9 38 3.0 Investment Company spending on R&D 4.2 23 4.2 30 3.8 60 3.1 76 3.0 79 2.9 72 3.0 118 2.6 Quality of scientific research institutions 5.0 38 4.3 42 4.1 51 4.0 69 3.6 54 3.9 41 4.2 109 2.9 University-industry collaboration in R&D 4.7 29 4.5 38 4.2 44 4.1 43 4.1 45 4.0 48 3.9 103 3.2 Availability of scientists and engineers 4.8 33 4.6 91 3.8 29 4.7 77 4.0 86 3.9 75 4.0 102 3.5 Performance Capacity for innovation 4.3 23 4.2 31 3.8 66 3.0 59 3.2 76 2.9 77 2.9 99 2.7 Utility patents per million population 89.8 46 2.0 60 0.9 53 1.3 76 0.1 58 0.9 55 1.1 83 0.0 OECD China Brazil Chile Colombia Mexico Argentina Peru Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank Score SOURCE:THEGLOBALCOMPETITIVENESSREPORT2011-2012©2011WORLDECONOMICFORUM Note: The score on the innovation pillar is derived from a subset of the variables that appear in the table above. Innovation Investment, Conditions, and Performance ICT for National Development
  • ICT TRENDS REPORT 65MIT TECHNOLOGY REVIEW ICT Colombia Report What they do not do is invent new ways, the new cutting edge.” This has created a vast network of middle-class jobs, but Taiwan is not the place for the creation of innovative new companies. In each case, says Erik Pages, science and technology policy expert and consul- tant to Colombia’s Ministry of Information and Communications Technology, “the countries pursued what we now call asset- based approaches. Each nation built their strategies around unique local competi- tive advantages. Israel had world-class scientists and R&D capacity; Ireland had a large, cheap, and English-speaking work-force and EU membership; Taiwan had manufacturing prowess.” In all three, national governments stepped in and played a critical role, one similar to that which Colombia has been supporting and is planning for the future. “For many years,” writes Breznitz, “the private market did not possess the neces- sary skills and capabilities to successfully create and manage R&D-based IT compa- nies…. Thus the state was the only actor able and willing to start the process of skills and capabilities development in an attempt to spur the growth of the indus- try.” In their paper “The Revolutionary Power of Peripheral Agencies: Explain- ing Radical Policy Innovation in Finland and Israel” (Comparative Political Stud- ies, January 2013), Breznitz and co-author Darius Ornston examine radical policy innovation and growth in “two historically low-technology late developers, Finland and Israel… In these two very different cases, the Finnish Fund for Research and Development and the Office of the Chief Scientist in Israel’s Ministry of Trade and Industry played a crucial role” by initiat- ing policy experimentation. They write that the very nature of these new and innovative industries demands such policy innovation: “Suc- cessful intervention requires policy makers to launch experimental policy measures to target nonexistent indus- tries and activities.” They also write that experimentation is continual, and pol- icy makers “must be prepared to cull the inevitable failures.” The financial investment does not always need to be large, says Breznitz, citing the case of Israel: “If you look even at the budget of the chief scientists, in its height it was $200 million. So that’s about the budget of two New York City high schools.” Many of the factors that contributed to past successes have changed, says Breznitz: “ICT is much more developed now—there are more countries compet- ing in that space. If Taiwan had started now, it’d have serious problems because of China, which basically imitated what Taiwan had done.” FurtherExamplesof NationalPolicies n Korea followed much of the Taiwanese example, which was a highly top-down model with intense investment in manu- facturing by the state, on the order, says Breznitz, of $5 billion a year. This led to the international manufacturing suc- cess of Korean companies in ICT. “It’s a capital-investment industry, and every five years or so you have to do a major renovation to your fabrication plant. If you want to play in the memory field, or in the screens for smartphones, that’s what you do, and that’s how the Koreans defeated even the Japanese. The Japanese could not compete with those huge losses year by year, half sponsored by Korean taxpayer money.” But the money is not all that contrib- uted to Korea’s success, especially as the country is now moving into a “creative economy” focus on software, content, and services. Korea began its transfor- mation in 1980, when the government “harnessed the power of digital networks, transforming its developmental state into a network state,” according to an October 2013 article, “From developmental to net- work state: Government restructuring and ICT-led innovation in Korea,” in the journal Telecommunications Policy. The article also mentions the role of techni- cally trained leaders in the ICT sector, 0 10 20 30 40 50 C osta Rica C hile Uruguay Argentina C olom bia M exico Brazil Peru Ecuador Panam a G uatem ala SCORE 41.5 40.6 38.1 37.7 37.4 36.8 36.3 36.0 32.8 31.8 31.5 SOURCE:GLOBALINNOVATIONINDEX2013EDITIONCORNELL UNIVERSITY,INSEADANDTHEWORLDINTELLECTUALPROPERTY ORGANIZATION(WIPO)©2013CORNELLINSEADWIPO Global Innovations Index 2013 for Latin America (average) ICT for National Development
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW66 ICT Colombia Report society.” This, he concludes, will help the government guide its policies—though, he adds, most governments ended up in places that were not necessarily where they expected to be. Marcos Kulka of Fundación Chile agrees that a plan doesn’t necessarily dic- tate the end results. “To have a roadmap and to have a vision—I’m not sure how helpful that is at the end. I believe in a strategy that puts in place many differ- ent things, [so] that it’s more of an open portfolio than a strategy in a linear way.” The Korean and Chilean approaches, points out Pages, are opposing ones: Korea followed a top-down core strategy, while Chile has run a diverse portfolio of activities. He suggests that Colombia’s strategy might be more in line with that of Chile’s. their experience and global outlook fur- nished by time spent at top universities in the US. “The Korea experience,” the article continues, “also has more general implica- tions for policy makers in the information age. These include the need for national, long-term policies, the vital role of edu- cation, ranging from highly specialized R&D to broadly-based public-private sector efforts to ensure demand for ser- vices.” Industry groups have a great deal of power, but the state continues to play an important leadership role. Brazil has seen dramatic growth in its ICT industry, aimed in large part to service a domestic market, and the indus- try remained strong even after the 2008 economic downturn, when advanced and emerging markets alike were affected. According to Sergio Pessoa, marketing director of the Brazilian industry associa- tion of ICT companies called Brasscom (“Taking the pulse of Brazil’s ICT sector,” ZDNet, October, 2012), “The IT sector grew 13.2 percent since 2010. We’re look- ing at similar growth in the coming years. We see a decade of opportunities.” He continued, “This is the knowledge economy we’re talking about. There are two fundamental pillars you have to have: human capital and infrastructure. The risks for us are ensuring that we are deliv- ering quality human capital—business skills, technical skills, language skills, to be globally competitive. Education is a key component of that. But infrastruc- ture, too.” “The real question,” says Breznitz, “is how the Colombian government wants to view their society 5 or 10 years from now, and what role they view ICT in that Interview with Calestous Juma My own view is that to have innovation as a country, you actually need to create a culture of innovation that starts from the very top of the leadership. For example, if a president doesn’t think innovation is important, and they’re spending their time on other issues and they delegate innovation, science, and technology to another ministry or agency— many countries, when you mention innovation they think of telecommunications companies—this underestimates the fact that you have to reorganize the overall governance of the country. To get an economy to shift from raw material exports to being a dynamic technology-based economy, you need to deal with almost all the ministries in government. You need to deal with the folks who work on infrastructure, commerce, international trade, financing… Doing all those things requires engaging with very powerful vested interests, both bureaucratically and financially. Somebody has to spend political capital. If it involves, say, building a road or supplying power to an area, the Ministers of Transportation can be very powerful. The more I look at countries, the more I find that it’s inevitable [that heads of state must set the overall tone]. The US was able to industrialize quickly after the Civil War. It also created high level advisors and institutions: the National Academy of Sciences, and the land grants system. It has an advisory body to the president, an assistant to the president on science and technology, which is really visionary. Therefore it’s able to integrate science and technology into all aspects of the economy without prejudice. I’m involved in Lagos, Nigeria; if you ranked African countries by economic size and you put in Lagos, it would be the ninth or tenth-largest economy in Africa, with 15 million people. We created an advisory to the governor so this can be driven at the state level. We conducted a training program for the ministers, ahead of the arrival of fiber-optic cables. Companies have moved some of their operations to Lagos to develop new apps, to harness the ICT energy there. Business people who own fiber-optic cables are donating bandwidth to young people, like the land grant model where you could donate land. It’s basically a broadband grant to young people. Information and communication technologies are platform technologies around which you can construct many different processes. Countries like Colombia can use ICT to create entirely new industries. Calestous Juma, director of the Harvard Kennedy School’s Science, Technology, and Globalization project, named one of the 100 most influential Africans by New African magazine PHOTOCREDIT:MARTHASTEWART ICT for National Development
  • ICT TRENDS REPORT 67MIT TECHNOLOGY REVIEW ICT Colombia Report WorldBank Recommendations n The World Bank points out a few key points necessary for ICT success. The first, according to the June 2012 World Bank Report ICT for Greater Develop- ment Impact, stresses the importance of a flexible, market-oriented approach in government policy. The Bank reports that India’s IT-based services industry is “widely believed to have taken off in the absence of heavy government interven- tion”—though the authors stress that the government did provide effective tele- communications and education policies and went on to market Indian cities as investment destinations. They also note that Kenya’s m-Pesa, the mobile-phone based currency transfer and microfinance service, thrived with only light regulation. Various countries have developed new regulations, opened their telecom markets to competition, and privatized telephone operations—all in an effort to promote greater investment in and access to ICT services. The World Bank paper also cites fur- ther steps that governments can take. Carefully devised policies can ensure that technological developments in the government are implemented across the spectrum of agencies and sectors, as the World Bank explains in the report: “In several instances ID cards for health services were started separately from those for social protection. A national e-ID system would have been more effective. Similarly, one project may help establish a data center in the ministry of finance, while another finances a data center in the ministry of land administra- tion. A consolidated data center catering to both ministries could prevent this duplication… A cross-cutting approach, including having an apex institution (at a high level) to lead the ICT agenda across sectors, can bring coherence to the deliv- ery of government services and reduce technology-related investments. “Governments can establish enabling environments that strengthen the entire innovation value chain: ideation, R&D, funding, and commercialization, with a strong emphasis on leveraging ICTs. Sin- gapore has led the way with its National Framework for Innovation and Enter- prises, which systematically leverages ICTs in selected strategic sectors and thus builds competitiveness and leadership for ICT innovation across sectors. In India ICT innovation moves businesses up the global value chain, and policymakers help integrate ICTs into production and manu- facturing. A focus on skills. Given the importance of skills to the growth of IT-based services industries, a focus on quality of education, closely aligned with local and global industry needs, is often essential. Regional centers of excellence and distance learning can play a role. An active government role. In countries with successful IT-based services, governments have adopted an active role in promoting the sector. Most public intervention to promote the industry—improving education, providing broadband infrastructure, establishing IT parks, or streamlining government interfaces with business—are “no-regret” moves that carry little risk, as opposed to past industrial policies that led many economists to argue against governments “picking winners.” Leadership. Extensive commitment and support from the highest echelons of government are essential to make rapid and deliberate policy choices, apply them effectively, and overcome bureaucratic resistance. The World Bank Emphasizes Three Key Points that Enable Innovation in ICT and Entrepreneurship ICT for National Development
  • ICT TRENDS REPORTMIT TECHNOLOGY REVIEW68 ICT Colombia Report “Government should strengthen development strategies for the IT-based services industry and implement plans for national information social policy to help disseminate the use of ICTs to other sectors through a “cluster approach” (for instance, encouraging collabora- tion between the textile industry and SMEs specializing in ICT tools relevant to clothing design and manufacturing); support piloting and prototyping across the value chain; promote cross-cutting technologies (such as electronic identi- fication) and their inclusion in projects for key sectors (such as national health care or pension schemes); and integrate ICTs into strategies for rural and urban development. Finland and Korea, at the forefront of the ICT-enabled innovation agenda, have strong traditions of such mechanisms involving all key stakehold- ers, with innovation policy that explicitly supports networking among industry, uni- versities, and public researchers.” Conclusion n Every country has followed its own path to ICT success, and those paths have led to a variety of outcomes, both positive and negative. The ICT world has changed dramatically, and it continues to change; all countries are trying to figure out the best path to success, with no one correct answer available. The path likely involves a combination of creative and diverse pol- icies and programs both from the govern- ment and from industry. Clear national policies are needed, not to prescribe a single path, but to coordinate, coax, and catalyze innovation and ICT innovation throughout government and industry. ICT for National Development
  • Sources Traditional Media Boston Globe BusinessWeek Der Spiegel The Economist Fast Company Forbes The Guardian Los Angeles Times McKinsey Quarterly MIT Technology Review The New York Times Scientific American Wired Magazine Books Information and Communications Technology for Development Innovation and the State Online Media BBC Bloomberg Business Wire CNN ComputerWeekly CropLife DigitalTrends EdSurge EdWeek Healthcare IT News Huffington Post Inter Press Service LatinTrade MedCityNews mHealthNews The Next Web Reuters SciDev TechInAsia World Bank EduTech blog VentureBeat ZDNet Academic Journals Comparative Political Studies Government Information Quarterly Harvard International Review Health Affairs Information Technology & International Development Internet, Policies, and Policy Journal of the American Enterprise Institute Telecommunications Policy Utrecht Law Review Research and Reports African Development Bank Belfer Center for Science and International Affairs, Harvard University Cisco Datacenter Dynamics Frost & Sullivan Global Entrepreneurship Week IBM Innopay Inter-American Development Bank International Finance Corporation Kauffman Foundation mAgriculture McKinsey Global Institute Nearshore Americas Royal Society for the Encouragement of Arts, Manufactures, and Commerce, London The Organization for Economic Co-operation and Development TechNet Tholons United Nations UN Economic Commission for Latin America and the Caribbean UN Food and Agriculture Organization University College, London Transparency International US Agency for International Development The World Bank World Economic Forum Company and Organization Websites eGovernment Estonia Cisco Systems The Climate Corporation Code4America Codecademy Competir Duolingo Dwolla FNBox Global Accelerator Network Idealab iHub Khan Academy Microsoft MIT Media Lab M-Pesa National Institute for Health and Welfare, Finland NYU Center for Urban Studies and Progress Oja.la Palantir Safaricom Start-Up Chile Tech City Tekes Tata Consultancy YellowPepper Holdings Expert Sources Michael Best David Blumenthal Dan Breznitz Larry Brilliant Catherine Calarco Eduardo Encisco Lee Forster Katharine Frase Michael Fullan Ari Gesher Achileas Gravanis Mitchell Higashi Calestous Juma Marcos Kulka Scot Osterweil Sandy Pentland Ramesh Raskar Carlo Ratti Claudia Urrea Copy Editing, Design and Illustration Claudia Arkush Su Berland Stuart Bradford Deanna Mirsky Juan Manuel Barrionuevo Guillermo Alberto Cruz Cynthia Graber Ellen Harpel Germán Hernandez Tom Kadala Kathleen Kennedy Burton Lee Antoinette Matthews Francisco Medina Juan David Muñoz Erik Pages Juan José Uribe Minister Diego Molano Vega Irving Wladawsky-Berger This report was produced by MIT Technology Review Custom. Thank you to the core team who contributed their expertise: Thank You
  • Colombian Ministry of Information and Communication Technologies ICT Promotion Office Telephone: +57 (1) 3443460 Ext. 2211 Address: Edificio Murillo Toro Cra. 8a entre calles 12 y 13 Bogotá D.C. - Colombia Zip Code: 111711 www.mintic.gov.co – www.vivedigital.gov.co