Cable / Telecom News

CANADIAN TELECOM SUMMIT 2014: Canada’s digital strategy hinges on tech adoption and education

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TORONTO – It quickly became clear during Wednesday morning’s panel discussion at the Canadian Telecom Summit that no one-size-fits-all solution exists when it comes to implementing a national digital strategy that positions Canada as a key player in the global digital marketplace.

The arguments for the digitization of Canada’s economy are wide-ranging, said moderator Namir Anani, president and CEO of the Information and Communications Technology Council. “Some would argue that we need investments – without investment we can’t have technology. Others would say it’s our policies – if we don’t have the right trade policy, if we don’t have the right taxation policy, it will not happen. Others would say it’s about knowledge, skill and talent, and that we have to start early.”

Peter Grant, a lawyer with McCarthy Tetrault and adjunct professor at the Schulich School of Business, gave Canada’s long-awaited Digital Canada 150 strategy (revealed by Industry Canada last April, four years after the government first began consultations with industry, business, and individual Canadians) a middling grade of B-minus. Grant criticized the strategy’s lack of substantial targets and measurable goals that would allow Canadian business to compete globally, and the fact that the document largely ignores areas like telework, telehealth, and education.

More importantly, Grant added that Digital Canada 150 fails to link the government’s digital policies with its international trade agenda. “There’s no effort to link trade agreements with the strategy to bring Canadian business online to market and sell to a global marketplace. This is an area you might have expected to see some attention, given the government’s admirable focus on new trade agreements with Europe and the Pacific Rim. I am disappointed with this omission,” said Grant.

“Some studies suggest that for every dollar a U.S. business spends per employee, Canadian business only spends $0.58.” – John Weigelt, Microsoft

But the feds aren’t the only ones underestimating how adoption of digital technologies can positively impact the bottom line. Canadian businesses adopt technology at a far slower rate to their U.S. counterparts, said John Weigelt, national technology officer at Microsoft Canada. “Some studies suggest that for every dollar a U.S. business spends per employee, Canadian business only spends $0.58.”

He added that the majority of Canadian SMBs also tend to “self-manage” their information and communications technologies as opposed to hiring knowledgeable staff, and “there’s a supposition or belief that inexperience is causing that delay.”

Weigelt referred to a study of Canadian businesses conducted by Microsoft which found tech-savvy businesses were able to grow their employee base by 16% over the last few years, compared to tech laggards at just 2%. “We need to help educate them develop an appreciation of how those digital tech skills will help transform their businesses. Investment in technology has a positive ROI,” said Weigelt.

While companies in Canada’s media and cultural industries, on the other hand, are more adept at leveraging technology to market their products and services to a global market, operating in a digital economy can be a double-edged sword.

As country manager for Canada at video portal Daily Motion, Enrique Soissa says the internet provides a very democratic platform for content providers, both big and small, to reach the entire globe. “That’s how we’ve seen the growth of YouTube, the growth of Daily motion whether in North America or Europe. Suddenly anybody can become a content creator, a broadcaster, and have reach, have and audience, and at the same time also monetize.”

“Broadcasters can see over-the-top services and open video platforms as competitors to their own market share within Canada, whether it’s Rogers or Bell. Their market is Canada, that’s fantastic. They do a great job in delivering content in Canada. But I come from an organization that is global in reach. We are sometimes seen as competition, and that can prove difficult in terms of working with regional partners. I try to provide the platform and the launching pad for those same partners, whether it’s broadcasters or independent creators, to look at the global opportunity.”

What panellists did find consensus on is that educating the various stakeholders – consumers, business, and government – is key to moving Canada’s digital economy forward, whether it’s through larger organizations helping smaller businesses to develop their own digital ecosystem, or better leveraging and teaching about technology in our schools.

“Progressive businesses, progressive consumers, they’ll get this. They’ll take advantage of all the things the digital economy has to offer. They’ll figure that out,” said Allison Lenehan, president and CEO of Xplornet Communications. “But if we really want to progress relative to other countries, we need to make this about the average business and the average consumer.

“And then, once we’ve agreed on what that message is.…we’re sitting in a room full of the means. The communications sector of Canada is at this summit. We have the ability, once we’ve organized what that simple message is, to get the word out, to engage and to educate.”