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Caribbean Digital Economy - are you in?


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What are the opportunities and challenges for Caribbean People in the emerging global digital economy?

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Caribbean Digital Economy - are you in?

  1. 1. The 2nd Biennial Conference Scientific Research Council & The 3rd International Conference Caribbean WELCOME Project Theme: Science & Technology Driving Development: Competitive Edge for Caribbean The Digital Entrepreneur: Finding your Niche in the Emerging Digital Ecosphere Phillip Jackson (; Government of St. Vincent & the Grenadines and CCST The Grand Ballroom, Jamaica Pegasus Hotel, Kingston November 7 -8, 2012
  2. 2. Entrepreneurship me say! Click to Play Link to Lyrics:
  3. 3. It pays to watch TV – other news on Nov 6th 2012 Halo has earned $3 billion for Microsoft in the past decade. 2011 Total Consumer Spend On All Games Content In The U.S. Estimated Between $16.3 To $16.6 Billion Sorry Americans NO Voting on your Laptops nor Smartphones just Yet. But that was before Obama said of long voting lines: “We have to fix that!” cebook
  4. 4. The Opportunity… Key statistical highlights: ITU data as at the end of 2011 - released June 2012 Mobile cellular: Total mobile‐cellular subscriptions almost 6 billion = global penetration of 86%. Developing countries, accounted for more than 80% of the 660 additions million new 105 countries with more subscriptions than Inhabitants. Mobile broadband: >1 billion mobile‐broadband subscriptions worldwide. Most dynamic ICT service reaching a 40% annual subscription growth in 2011. Mobile‐broadband penetration: developing world (51%). (8%) and the developed
  5. 5. 144 million mobile‐broadband subscriptions were added in the BRICS (Brazil, the Russian Federation, India, China and South Africa), accounting for 45% of the world’s total subscriptions added in 2011. Internet: 2.3 billion people were online. 70% of the total households in developed countries had Internet, whereas only 20% of households in developing countries had Internet access. Total international Internet bandwidth increased seven‐fold over the last five years reaching 76’000 Gbit/s by end 2011. This equates to 34’000 bit/s per Internet user worldwide. On average, a user in Europe enjoys 25 times as much international Internet capacity as a user in Africa. Source: ITU World Telecommunication/ICT Indicators Database. © 2012 International Telecommunication Union, All Rights Reserved. Available at: See also:
  6. 6. J.P. Morgan expects business-to-consumer e-commerce (excluding travel) to jump from $572 billion in 2010 to over $1 trillion by 2014. The size of total worldwide e-commerce, when global business-tobusiness and consumer transactions are added together, will equate to $16 trillion in 2013 – IDI. The global market for digital products and service estimated at $4.4 trillion in 2013 - IDate, Total size of digital economy is estimated at $20.4 trillion, equivalent to roughly 13.8% of all sales flowing through the world economy. The United States remains the world’s single biggest e-commerce market, IMRG says, followed by the United Kingdom and Japan but it is only a matter of time before China, the Asian giant, becomes the single largest market in the world.
  7. 7. Source: Engman 2010 Exporting Information Technology Services: In the Footsteps of India Chapter 7 of
  8. 8. The Mobile Market With smartphones and tablets providing new platforms for software developers, an entire new class of software entrepreneurs has emerged. In April 2011, Forrester projected the mobile application market size to be $54 billion by 2015. Of this, $17 billion was for mobile application development services. Research conducted by ACT and Microsoft's TechNet shows that the app economy has created between 400,000 and 600,000 jobs. In fact, the majority (78 percent) of U.S. mobile app companies are small businesses, according to a survey conducted by the Association for Competitive Technology (ACT.
  9. 9. The Rationale 2B+ Internet users worldwide Internet accounts for 3.4% of GDP 21% of GDP growth in the last 5 years 2.6 jobs created for 1 job lost 75% of Internet impact arises from traditional industries 10% increase in productivity for small and medium businesses from internet usage They grow and export 2x as much as others Up to €20 per internet user per month of consumer surplus Source: McKinsey and Company
  10. 10. Our ICT Standing in the World? – We are loosing ground! Name of Index - Source Year Current Rankings / Previous Rankings Jamaica St. Lucia ICT Development Index - ITU 2011 89 (3.49) 84 (3.42) 64 (4.49) 61 (4.36) Trinidad and Tobago 61 (4.57) 60 (4.42) Digital Economy Index - EIU 2010 44 (5.21) - 48 (4.98) Networked Readiness Index - WEF 2012 74 (3.86) 73 (3.78) - 60 (3.98) 63 (3.83) E-Government Development Index - UNDESA 2012 108 (0.4552) 89 (0.4467) 90 (0.5122) 88 (0.4471) 67 (0.5731) 67 (0.4806) Digital Opportunity Index - ITU 2007 55 (0.51) 52 (0.47) 73 (0.46) 68 (0.43) 59 (0.50) 57 (0.45) Source: Compiled by Author from following sources EIU: ITU: WEF:
  11. 11. Figure 1: The Evolved Networked Readiness Index structure Source: WEF:
  12. 12. Snapshot Source:WEF:
  13. 13. The Digital Economy and the Digital Entrepreneur The digital economy is the global network of economic and social activities that are enabled by platforms such as the internet, mobile and sensor networks. —Executive Summary, Australia's Digital Economy: Future Directions. Digital Entrepreneurship encompasses the diverse opportunities generated by the Internet, World Wide Web, mobile technologies, and new media, such as: dot-com companies [that boomed then busted after the Internet was opened for business]; the fluid army of “ebay entrepreneurs”[and now “Qbidders” who traffic their goods] with little overhead cost by using the digital infrastructure…; the wave of “web 2.0” initiatives where companies or individuals develop new business models based upon the growth of social networks and mobile technologies; and, the development of weblogs (“blogs”) that have credibly begun to rival traditional media firms. ORT.pdf
  14. 14. The Possibilities Matrix
  15. 15. The State as Entrepreneur How governments can facilitate ICT convergence: • Reform policies to promote competition and remove investment barriers: —remove restrictions on foreign ownership of licenses; —adopt rules to provide for infrastructure sharing of towers, ducts, and support facilities; —add mechanisms for managing radio-frequency spectrum; —encourage wireless broadband providers to enter small local service areas; — streamline the process for accessing rights of way and pole attachments; and —monitor dominant operators. • Provide government incentives to firms that deploy advanced ICT services, such as: —interestfree credit; —subsidies, attractive loans to compensate providers who deploy networks in unprofitable areas; and —preferential tax rates. • Invest in infrastructure and services: —fund the construction of open-access fiber optic networks; —fund digital education initiatives; —include network conduits in road projects or incorporate cable arrays in new electrical grids; and —support local community initiatives to provide broad-band access. - The Global Information Technology Report 2012 The Australian Government recognised the need for action to position Australia as a global digital leader. Their National Digital Economy Strategy is worth a study.
  16. 16. Further Insights Only strong internet ecosystems can capture maximum value. The best performers focus on four critical areas: Promote human capital Ease access to financial capital Develop infrastructure Create an attractive business environment Public decision makers should act as a catalyst to unleash the internet’s growth potential All business leaders should put the Internet at the top of their strategic agenda All stakeholders should take part in a fact-based, public-private dialogue - Internet Matters: McKinsey and Company ternet_matters
  18. 18. Ideas Factory – some possible ideas for the digital entrepreneur The whole gamut : From Webpage Developers and Facebook Managers to Virtual Tourism – Hikes, Bike Rides, Jogging, usain bolt country training ground – virtual run Mobile Payment NAMIS + - National Agricultural Marketing Information system GFNF – mFisheries – success story in TnT Emergency Recovery Data Centre – Trinidad – traditionally outside hurricane belt, cheap energy to power data centres, very good broadband infrastructure, capacity to train himan resource Preventative health app – broadcast daily reminders and tips that encourages healt-related actions based on health profile of user: exercise tips; food suggestions; water breaks; medication reminders, doctors and dentists appointments, healthy recipes; health programme schedules (on in 15 minutes) etc Caribbean Itunes – music and lyrics
  19. 19. Welectricity – energy conservation meets social networking Fundraising agencies via SMS Caribbean crowdfunding for locals and Diaspora News and Entertainment App for Caribbean Diasporas Pay per View Cable Channel for local content providers and producers Moko Jumbie and the Young Bob Marley Music Show for kids Video on Demand Dance Classes Virtual Steel Pan and Band SMS Tests for evaluation of uptake of learning objectives of media campaigns All sorts of games from SMS-based to fully immersive virtual environment experiences Animations – Caribbean tales – music, cricket etc
  20. 20. Conclusion The Digital Economy presents tremendous opportunities for the digital entrepreneur to exploit. The emerging paradigm may be described as Society 3.0: Digital Democracy and the Rise of the Mobile Majority. From enhanced web presence and e-commerce; e-government and m-government; to software, mobile apps and virtual experiences – there is a gamut of products and services with the potential for multiple iterations serving an increasing number of sophisticated, diversified and segmented consumers. The individual, project teams, businesses and governments should and must conceptualize and equip themselves as entrepreneurs in this multidimensional digital economy. The new I-Entrepreneur would be competent, connected, collaborative and co-creative. The challenge to the various types of entrepreneurs, including governments, is to acquire and enhance the various technical and business skills that allow them to sustainably exploit the emerging possibilities while at the same time identify the best niches for exploitation. The most interesting thing about the digital enterprise is that not only are there opportunities to satisfy current and emerging needs and desires but the real potential also exist in satisfying latent desires and more importantly create products and services that persons do not know they wanted.
  21. 21. Thank You! Set up Shop! Digital Shop