AUSTRALIA National Overview & National Overview &

IT Infrastructure AssessmentIT Infrastructure Assessment

Presented by Steve BeanPresented by Steve Bean

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Down Under?

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History

• Inhabited 50,000 years agoInhabited 50,000 years ago– Aboriginal and Torres Strait Islander peoples

• European SettlementEuropean Settlement– 1770, Capt James Cook claimed for the British Crown– Transport of 160,000 convicts from 1788-1868– Free settlers come for wool industry & gold rush– Commonwealth of Australia was formed in 1901 – Immigration Restriction Act 1901-1945

• Modern SocietyModern Society– Major nation-building projects in 1950s– Ethnic diversity produced by post-world war immigration – Today one of the most cosmopolitan and dynamic societies

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Coastal & Urban Area Populations

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Government

• Democratic, federal-state system Democratic, federal-state system recognizing the British monarch as sovereignrecognizing the British monarch as sovereign

• 95% voter turnout, it’s the law 95% voter turnout, it’s the law

• Executive BranchExecutive Branch– Chief of State, Queen of Australia ELIZABETH II

– Governor General, Michael Jeffery

– Head of Government, Prime Minister John Howard

• Legislative BranchLegislative Branch– Commonwealth Parliament, Senate (76 seats) House of Rep (150 seats)

• Judicial BranchJudicial Branch– High Court, Chief Justice and six other Justices

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Political Environment for IT

• High political stabilityHigh political stability

• Government promotes use of ITGovernment promotes use of IT

• Open information sharing with few trade Open information sharing with few trade barriersbarriers

• Few regulations/restrictions of ITFew regulations/restrictions of IT

• Ranked 7.7 on scale of 10 for legal and Ranked 7.7 on scale of 10 for legal and copyright protection.copyright protection.

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Educational System

• Literacy rate is 100%Literacy rate is 100%• IT literacy rate is 66%IT literacy rate is 66%• One in five Australians has a university degreeOne in five Australians has a university degree• 40 universities and over 100 other higher 40 universities and over 100 other higher

education institutionseducation institutions• More than 400,000 students from around 200 More than 400,000 students from around 200

countriescountries• 8% of GDP allocated to research & development8% of GDP allocated to research & development

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Language & Culture

• Hofstede RankingsHofstede Rankings– MAS 35th, UAI 17th, PDI 13th, IND 49th

• English is the native languageEnglish is the native language– English 79%, Chinese 2%, Italian 2%, other 11%,

unspecified 6%

• DemographicsDemographics– Caucasian 92%, Asian 7%, Aboriginal & other 1%

• DiversityDiversity– One in four Australians came from another country

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Multilingual Workforce

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Aborigines Influence

• ~ 1% population

• Reconciliation issues

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Aging Population

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IT Diffusion

• TelephonesTelephones– 57% of households have phone lines– Mobile phone use is increasing rapidly

• ComputersComputers– 66% of households have computers

• TelevisionsTelevisions– Average 2 sets per household, 99% of

population have access to television

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Internet & PC Usage

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Telecommunications

• Internet connections Internet connections – 14.2 million users

– 12th for e-business readiness (EIU)

• Domestic communications Domestic communications – Fiber optics cable with satellite backup

• International connectivityInternational connectivity– Sydney link to Asia, North America & Europe

– Perth link to SE Asia, Europe, Africa & the Middle East

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Fiberoptic Network

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AUSTRALIATelstra visits house in

bush

www.nicholsoncartoons.com.au

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Infrastructure

• Electronic Data Interchange (EDI)Electronic Data Interchange (EDI)– Adheres with United Nations (UN/EDIFACT)– Comply with US and Canadian ANSI/X12

• Digital networksDigital networks– $2.5 billion invested in telecommunications

• ISDN/fiber availability ISDN/fiber availability – 96% of the population

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Computer Industry

• Generates about 4% of the GDPGenerates about 4% of the GDP• More than 22,000 ICT Businesses More than 22,000 ICT Businesses • ASX*ASX* Corporations Corporations

– 94 software and service – 44 technology hardware and equipment

• Large Foreign Multinationals PresenceLarge Foreign Multinationals Presence– Outsourcing service providers (IBM, EDS, CSC)– Software providers (Microsoft, Oracle)– Network system providers (Sun Microsystems, Cisco)

*ASX = Australian Stock Exchange

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Economy

• GDP per capita, $30,700 ranked 17thGDP per capita, $30,700 ranked 17th• Foreign direct investment, $813.5 Billion Foreign direct investment, $813.5 Billion

(2001)(2001)• Strong international joint ventures have Strong international joint ventures have

helped endure crisis situationshelped endure crisis situations• Australian Stock Exchange impressive Australian Stock Exchange impressive

showing past three years showing past three years – Recently S&P ASX/200 reached 5000+

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Bridge Between East & West

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Foreign Trade

• Import PartnersImport Partners– US 14.8%, China 12.7%, Japan 11.8%, Germany

5.8%, Singapore 4.4%, UK 4.1%

• Export PartnersExport Partners– Japan 18.7%, China 9.2%, US 8.1%, South Korea

7.7%, New Zealand 7.4%, India 4.6%, UK 4.2%

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Asian Trade ‘Boomerang’

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Australian Dollar

•aka the “Aussie Battler”aka the “Aussie Battler”

•Exchange rate .72 per US $1Exchange rate .72 per US $1

•4-5% of worldwide foreign 4-5% of worldwide foreign exchange transactionsexchange transactions

•6th most traded currency6th most traded currency

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Consumer Debt

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Future Still Looks Promising

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Summary

• Overall Assessment of IT CapabilityOverall Assessment of IT Capability– Advanced infrastructure with strong government promotion– Early adopters and widespread diffusion of IT

• Attractiveness from an IT Strategic PerspectiveAttractiveness from an IT Strategic Perspective– Good location & cross-cultural population for global economy– Investment flow helping to maintain market competitiveness

• Other Pertinent InformationOther Pertinent Information– High consumer debt, aging population concerns– Trade deficit recovery– Closer ties with Asia-Pacific countries promising– Continued GDP growth