The Digital Economy And The NBN

The election symbolises a significant amount of change but the most significant transformation for the business world is the shift away from a resource-based economy. How this is supplemented and compensated for is going to be an extremely important strategy for whoever wins the election. The analysts say that innovation is of paramount importance and that greater innovation in education and research will drive it. The start up sector has been identified as young and potentially one very important sector that could chip in. a new survey shows that the tech start up sector has the potential to generate over half a million jobs in the economy, valued at $109-billion, over the course of the next 20 years if all the opportunities are monopolised on.

Those in the know are not buying the old excuse of the local venture capital industry being high risk and low return. They say that traditionally Australia has appeared to embrace risk in a number of historically unstable sectors, like mining and agriculture. They say that tech start ups do not pose anywhere near as much risk as some of the other sectors where capital is currently tied up. And, with the digital era well and truly underway who is to say that there is that much risk involved anyway?

The experts say that capital needs to be redirected towards digital technology if it is to reap the full potential of rewards. Companies need to start using technology to help them develop competitive advantage, such as by integrating it into a virtual office, making more extensive use of video conferencing and outsourcing work to virtual teams.

And, of course, high speed Internet plays a vital role in making all of this happen. The release of a new report shows that broadband could save local budgets as much as $3,800 per annum by 2020. It has also sparked some criticism from those who say that the news has come too late and the government should have been doing more to prioritise the growth of a digital economy.

The report allegedly cost tax payers a cool $74,679 but it has not answered all of the burning questions that consumers need the answers to. Other data shows that further delays in the implementation of the national broadband network could mean that 2-million households may still not be connected by 2019.

Some say the data is as much as two years overdue and that the government should be divulging a lot more detail if it wants to attract consumer buy-in and confidence. Unfortunately the report did not cover all the costs necessary to construct and maintain the network, but it did specify that there would be significant costs to businesses and other players, to build the infrastructure required for the digital economy.

They also highlighted the need for a white paper and full reviews on how the government would manage its broadband services over the next decade. The government had said at the beginning of 213 that a white paper could be expected to be released about halfway through 2014.

As well as potentially saving the tax payer $3,800 per annum the digital economy also poses a number of other advantages including more employment opportunities, shorter travel times, and more extensive access to online services like decent health care. It is estimated that approximately 67% of the benefits are related to finances, while the rest pertain t convenience. Not only does it provide a wealth of direct business benefits, which will work to the advantage of all sectors of the economy, but it will also benefit every local household directly, and where it currently matters most: in their pockets.