Republic falling behind in race for e-business

The greatest challenge of the digital era now facing all sectors, traditional and high tech, is the breakneck pace of change

The greatest challenge of the digital era now facing all sectors, traditional and high tech, is the breakneck pace of change. More must be done to establish the Republic as a centre for e-business in Europe.

The rapid evolution of the digital economy and the increase in competition from other countries make it essential that the Republic ensures that appropriate policy and structures are in place.

Excelling in e-business means gaining a competitive edge through the latest technology and infrastructure, the elimination of the digital divide, the development of a skilled and flexible work force, a regulatory regime that will be seen as the European benchmark, effective policy making and the rapid development of e-government.

The Global Crossing project, which represented a significant investment in broadband, and the speed with which the ECommerce Act was implemented are examples of decisive action taken by Government in the past that helped to improve our e-business capability.

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However, there is no room for complacency as the Republic clearly is not alone in seeking to excel in the e-business area. There are some worrying signs that the Government is not maintaining the necessary momentum towards a really progressive information society - the lag in appointing a new Information Society Commission is a case in point.

The Information Society Commission was appointed for a three-year period until the end of 2000. The commission's task was to oversee the implementation of a strategic framework for the development of the information society in the Republic.

The commission prescribed that, in an information society, people would get the full benefits of new technology in all aspects of their lives: at work, at home and at play.

The term of office of the first commission expired at the end of December 2000 but no successor has yet been established. IBEC believes this inaction jeopardises the Republic's position as a world-class centre for e-business and fails to provide the leadership required in the ebusiness arena.

For the State to prosper, we must be in the first division of ebusiness. The Republic ranks 20th in the IDC/World Times Information Society Survey. If the State's claim to be a leader in e-business is to be taken seriously, we should aim to be in the top 10 within three years.

IBEC's e-business strategy group has urged Government to set up a new Information Society Commission with decision-making powers and accountability. The chairperson of the new commission should be a senior businessperson, with a proven track record in ebusiness.

The commission should be a permanent body and should include the input of business, large and small; the education sector; and community groups.

A new restructured and refocused Information Society Commission needs to be coupled with greater political leadership in the areas of egovernment and the information society. Currently, responsibility for these crucial areas is dissipated across too many Government departments.

There has been some debate as to what would be the optimum way to achieve such political leadership, be it through a Cabinet sub-committee on ebusiness, or a Minister of State dedicated to the area. IBEC's ebusiness strategy group is not overly concerned as to what structure is adopted as long as ebusiness is championed within Government and that there is accountability within the system in terms of meeting deadlines and achieving targets.

I am increasingly persuaded that it will be necessary to have a senior minister for e-business in the next administration, in addition to the forceful new Information Society Commission proposed by IBEC.

The 2000 Report of the National Competitiveness Council highlighted that telecommunications and e-business are crucial to the Republic's overall competitiveness and signalled that, in the absence of decisive action, "Ireland risks not only the loss of an opportunity to establish a meaningful foothold in the competitive global electronic marketplace, but more seriously, we allow Ireland to become uncompetitive and therefore unattractive for enterprise attempting to compete on the ever more ICT [information and communications technology] driven world market".

Jackie Harrison is director of enterprise, IBEC, responsible for the development and delivery of IBEC policy in business law, competition, e-business, energy, environment, industrial policy, innovation, telecommunications and trade.