Consulting services for the digital 21 Strategy Review for the Office of the government chief information officer. Report was prepared for the Office by IBM China / hong kong limited.
Consulting services for the digital 21 Strategy Review for the Office of the government chief information officer. Report was prepared for the Office by IBM China / hong kong limited.
Consulting services for the digital 21 Strategy Review for the Office of the government chief information officer. Report was prepared for the Office by IBM China / hong kong limited.
Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer
Strategy Report
September 2013
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Distribution Distribution of controlled copy Copy No. Holder 1 The Office of the Government Chief Information Office (OGCIO) 2 IBM China/Hong Kong Limited (IBM)
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Table of Contents 1. Executive summary ............................................................................................................ 5 1.1 Previous Digital 21 Strategies ....................................................................................... 5 1.2 Latest technology developments ................................................................................... 6 1.3 SWOT analysis .............................................................................................................. 7 1.4 Vision Smarter Hong Kong, Smarter Living ................................................................ 8 1.5 Strategic thrusts to deliver the vision of Smarter Hong Kong, Smarter Living .............. 9 1.6 Driving towards Smarter Hong Kong Smarter Living ................................................... 13 2. Introduction ...................................................................................................................... 14 2.1 Context......................................................................................................................... 14 2.2 Report .......................................................................................................................... 14 3. Review of Hong Kongs current ICT strategy and development ...................................... 16 3.1 Looking back ................................................................................................................ 16 3.2 Facilitating a digital economy ...................................................................................... 17 3.3 Promoting advanced technology and innovation ......................................................... 19 3.4 Developing Hong Kong as a hub for technological cooperation and trade ................. 23 3.5 Enabling the next generation of public services .......................................................... 24 3.6 Building an inclusive, knowledge-based society ......................................................... 31 3.7 Summary of achievements and improvement opportunities ....................................... 34 4. Latest technology developments ..................................................................................... 35 4.1 Changes under way ..................................................................................................... 35 4.2 Technology trends ....................................................................................................... 35 4.3 A fundamental rethink of the way people live and work .............................................. 46 5. SWOT analysis of ICT development ................................................................................ 48 5.1 SWOT context ............................................................................................................. 48 5.2 SWOT analysis ............................................................................................................ 49 5.3 SWOT analysis conclusion .......................................................................................... 54 6. Vision Smarter Hong Kong, Smarter Living .................................................................. 56 6.1 Articulating the vision ................................................................................................... 56 6.2 Anticipated impacts ...................................................................................................... 57 7. Strategic thrusts to achieve Smarter Hong Kong, Smarter Living ................................... 63 7.1 Overview ...................................................................................................................... 63 7.2 Empowering everyone through technology ................................................................. 64 7.3 Igniting business innovation through exploitation of technology ................................. 65 Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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7.4 Supporting a thriving Hong Kong ICT industry and research and development ......... 66 7.5 Transforming and integrating public services through technology .............................. 67 8. Programmes in support of the strategic thrusts ............................................................... 68 8.1 Programmes ................................................................................................................ 68 8.2 Empowering everyone through technology ................................................................. 71 8.3 Igniting business innovation through exploitation of technology ................................. 87 8.4 Supporting a thriving Hong Kong ICT Industry and research and development ......... 95 8.5 Transforming and integrating public services through technology ............................ 111 9. Summary ........................................................................................................................ 121 Appendix A Acronyms ......................................................................................................... 122 Appendix B Secondary source documents reviewed .......................................................... 124 Appendix C Acknowledgement ............................................................................................ 127 Appendix D ICT-related measures under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) .......................................................................................... 129 Appendix E Location of Wi-Fi hotspots in Hong Kong ......................................................... 130
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1. Executive summary
Hong Kong was early to recognise the importance of information and communications technology (ICT) developments. In 1998, the Hong Kong Special Administrative Region Government (the Government) published the first Digital 21 Strategy, which was updated in 2001, 2004 and 2008. This study reviews the 2008 Digital 21 Strategy and formulates a blueprint to steer and guide the development of ICT in Hong Kong for the next few years.
1.1 Previous Digital 21 Strategies The previous Digital 21 Strategies have enabled the establishment of a world-class ICT infrastructure and have seen significant progress in many areas, including: Robust and affordable communication networks High mobile and broadband penetration and coverage Relatively high usage of e-Government and e-Commerce services Investments in cultivating innovation is contributing to Hong Kongs vibrant digital economy Progress in securing digital inclusion for all groups Steady progress in furthering Research and Development (R&D) initiatives many in collaboration with Mainland China. Whilst Hong Kong has made significant progress in achieving objectives set by earlier Digital 21 Strategies, advancement and consumerisation of ICT continues to drive change in our daily lives at an accelerating pace, and the technology landscape today - and over the next few years - is substantially different from when the last Digital 21 Strategy was published in 2008. Recent radical developments in ICT have reshaped many industries, business models and the interactions between people, businesses, and governments. Looking forward, it is important to understand existing and upcoming ICT trends in order to appreciate the array of potential enablement opportunities and challenges facing Hong Kong over the next few years. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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1.2 Latest technology developments Many opportunities and challenges, highly relevant to Hong Kongs future digital strategy, have recently emerged due to developments in mobile and cloud computing technologies, Internet of Things, next generation workplace, big data and analytics and social media.
1.2.1 Mobile Recent years have seen an explosive growth in the proliferation of mobile devices and consequently in mobile e-services too. Modern citizens have a rapidly growing expectation to do anything at anytime and anywhere using their mobile devices and therefore both businesses and governments have to rethink how they design and deliver mobile e-services to customers and citizens.
1.2.2 Cloud computing Cloud computing provides a scalable computing environment for businesses without the need for them to own or manage the computing assets, which allows users to request and utilise computing resources as a service whenever it is needed. One of the most promising practical opportunities presented by this technology is the potential for cloud platforms to offer small and medium enterprises (SMEs) a simple and inexpensive way to harness computing resources for the direct benefit of their businesses.
1.2.3 Internet of Things Internet of Things (IoT) refers to the pervasive presence of connected devices such as everyday objects embedded with Radio-Frequency Identification (RFID) tags, sensors, and actuators, that have sensing, data capture and communication capabilities. These everyday objects can connect to the Internet and with each other through a network to form a global network of intelligent computer systems and devices.
1.2.4 Next generation workplace Next generation workplace enables workers the ability to work anytime, anywhere, on any trusted device, in any language. Social networking services with mobile technologies will replace e-mail as the primary form of business communication and workers will collaborate based on the swarming work style where teams are formed quickly to tackle a problem or an opportunity and then dissipate. Knowledge is collective through mass collaboration and can be easily shared and accessed.
1.2.5 Big data and anal ytics Big data is, in simple terms, an unprecedented massive collection of complex and large data sets that are continually being accumulated from everywhere: sensors used to gather climate information, posts to social media sites, digital pictures and videos, Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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purchase transaction records, and mobile device Global Positioning System (GPS) signals to name a few. And the types of data are becoming more diverse and varied. The analysis of this big data can provide new and useful insights into all aspects of life for the benefit of the whole community.
1.2.6 Social media Social media allows people to create, share and consume information, ideas and content through the Internet. The growth of social networks has risen almost exponentially alongside Internet usage in the past number of years and is another important irreversible trend which provides opportunities to create additional value during the interactions with customers and/or citizens.
1.2.7 Implications of technology trends These digital forces are changing how citizens live, how businesses work and how governments serve. This radical shift requires business enterprises and government agencies to fundamentally rethink the end-to-end experience for their customers and citizens in addressing their new expectations, namely: instant access to information, products and services engagement as individuals, on their own terms anytime and anywhere transparency from businesses and government agencies they interact with trusted, mutually beneficial relationships that go beyond one-time transactions seamless experiences that deliver product and service quality.
1.3 SWOT anal ysis Having looked back at the history of Digital 21 Strategies in Hong Kong and examined the current and future major technology trends, it is pertinent to consider Hong Kongs unique advantages and disadvantages in the form of a SWOT (strengths, weaknesses, opportunities, threats) analysis summarised in the table below. Strengths Weaknesses First class ICT infrastructure Robust & reliable legal, business and economic environment Receptive market for innovative products Strong regional business hub Strong reputation for commercialising new developments in business and technology A relatively small domestic market Many competing thriving sectors (e.g. financial) Shrinking manufacturing & industrial sector Shortage of land Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Opportunities Threats Growing opportunities in Mainland China as its economy shifts from exports to domestic consumption, the services sector expands, and Chinas own exploitation of ICT grows rapidly Huge possibilities presented by the next generation of technology trends (e.g. Cloud, Mobile, Big Data, Social Media, Internet of Things) International experience illustrates the benefits of leveraging PSI datasets more widely Innovation in healthcare and elderly services incentivised by the ageing population Competition from other Asian and global economies which are also seeking to establish digital leadership Uncertainties in the global economic outlook Risk of digital divide for those without ICT access
In conclusion, Hong Kong has excellent hard and soft infrastructure and a population with a strong global and regional reputation for trade and financial business acumen. Although the domestic market is small, the opportunities arising from physical and cultural proximity to Mainland China combined with the next generation of technology trends provide potential for Hong Kong to thrive among other competitive economies.
1.4 Vision Smarter Hong Kong, Smarter Living We envision Hong Kong as a world-renowned smarter city where technology helps improve quality of life by enabling: Citizens and visitors to be more engaged with, and understood by, businesses and government agencies through intelligent and interconnected touchpoints Businesses to be more innovative in anticipating changing customer needs, and growing and expanding beyond Hong Kong borders both physically and digitally Hong Kongs ICT industry to continue to be successful and reach new heights by exploiting both the technology possibilities and the opportunities in the Mainland The city to be more sustainable through smarter, interconnected infrastructure The community to be more inclusive and prosperous through an open and collaborative digital ecosystem Hong Kong society to be more knowledge-based, with real-time access to knowledge and information anytime, anywhere. Technology can facilitate better communication and great collaboration between and among Hong Kongs citizens, businesses and government departments and should be a means of support and assistance to disadvantaged groups in our society. Under the new vision, we expect significant impact on various sectors in the Hong Kong community as follows: Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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For the Community, the achievement of the vision would mean having easy and ready access to most public services and private sector services generally available on personal mobile devices from any location. The services will usually be highly personalised to give richer user experiences and fully integrated for maximum convenience. For the business community, the smarter city would be able to build the necessary infrastructure to enable fast ubiquitous high bandwidth access, extensive choice of ICT services and platforms for trading and payment, for example. In addition, through the broad promotion and adoption of e-commerce, businesses will further enhance their capabilities in reaching to their customers more effectively and more broadly including crossing the border beyond Hong Kong and Mainland China. For the ICT Industry, the smarter city is expected to drive further development of the ICT industry, and by becoming a role model in exploiting technologies, Hong Kong will provide unique opportunities to the local lCT industry. Hong Kong will provide the eco- system to support the development of ICT startups and also the more mature services and environment needed to encourage the development of City ICT champions recognised as leaders in their fields both regionally and globally. For the Government, the enhanced e-enabled public services will allow civil servants to respond more effectively to citizens by offering more personalised and targeted services. In particular, civil servants would be able to provide more face-to-face time in consulting and helping citizens directly rather than spending time on administrative matters. For each of these four major constituents of Hong Kong society, we have proposed a specific strategic thrust designed to deliver the Smarter Hong Kong, Smarter Living vision.
1.5 Strategic thrusts to deliver the vision of Smarter Hong Kong, Smarter Living As the broad strategic programmes, we have designed the following four strategic thrusts to drive Hong Kong towards the vision: Empowering everyone through technology Igniting business innovation through exploitation of technology Supporting a thriving Hong Kong ICT industry and research and development Transforming and integrating public services through technology.
Empowering everyone through technology ICT now plays such an important part in every aspect of life education, work, leisure, entertainment, culture, arts, business and public services that citizens can more readily reach their full potential only when they have the confidence, literacy and basic skills to access and use technology. In order to achieve the vision, it is vital to ensure that everyone has these basic capabilities to operate and live in an ICT-rich environment. This strategic thrust also Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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drives the availability of high bandwidth Internet access through wired, mobile and/or other wireless mechanisms throughout all the main areas of the city. While the primary focus of the vision outlined in this report is the people of Hong Kong, there is also an opportunity to significantly improve the experience of people visiting Hong Kong whether for business, tourism or visiting friends and family. Another important concern is to include and enable the participation of all groups in this new digital environment also specifically considering the elderly, people with disabilities, those with less / limited financial means, etc. It is also important to look at the possibilities for technology to improve the quality of life for disadvantaged groups for example better facilitate people with disabilities to find and make their way around the city. To support the realisation of this thrust, the key initiatives include: Providing every citizen with a free and universal Hong Kong Digital ID enables every citizen to conveniently and securely use a much broader range of smarter city e-services (that are more personalised and richer in function) to process everyday transactions (e.g. e-cheques) Facilitating access to technology and broadband aims to remove the barriers that may prevent citizens from enjoying the benefit of living in one of the leading digital cities in the world Boosting education by enabling e-learning for the whole curriculum in every classroom through high bandwidth access for all schools truly revolutionises the experience and quality of learning for students in Hong Kong by allowing multi- media online access to relevant multi-lingual courses, teaching materials, test evaluations and other collaborative e-learning tools; and liberates teaching professionals to devote more focused attention on individual students to drive enhanced learning outcomes Including elements of programming in every childs education programme to inculcate a generic logical mindset and a proclivity to look to ICT for solutions provides an exciting new way to help our children to become familiar with harnessing the immense power of technology, to personally develop creative solutions to everyday problems and to be trained in structured and logical thinking Providing visitors and citizens targeted information enriches the engagement of visitors and citizens via advanced, personalised and multi-media online experiences; and maximises each visitors and citizens enjoyment and convenience.
Igniting business innovation through exploitation of technology Some of the most exciting and influential business developments in recent years (including Google, Facebook, Wikipedia, Amazon and Alibaba), have arisen, not from new technological inventions as such, but from inspired new ideas about how to exploit technology. This strategic thrust strives to establish new ways to ignite, nurture and protect such innovative ideas and to create new collaborative environments where these ideas can be shared, exchanged and further developed into potential business innovations with meaningful economic value for Hong Kong. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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The variety and volume of business innovations can be further strengthened by opening up all public sector information (PSI) for use by ICT-savvy entrepreneurs. For example, experience in the US has shown how broad PSI sharing can electrify public interest and excitement in the development of new mobile apps which make innovative use of this information. To support the realisation of this thrust, the key initiatives include: Establishing innovation and collaboration platforms to accelerate innovative business applications of technology to boost Hong Kongs competitive edge fosters creative and innovative communities to drive vibrant exchange of ideas, leading to the development of exciting and valuable new ICT-enabled business models / solutions Promoting cloud platforms and knowledge sharing for small and medium enterprises to help them succeed through increased leveraging of technology seeks new ways to stimulate SMEs to increase practical use of new technologies in order to boost productivity, to achieve greater business success and to expand employment opportunities for the community Accelerating innovation by making all public sector information available for use by private and other non-government sectors unlocks the hidden treasure trove of PSI datasets for free use by ICT-savvy entrepreneurs, enabling them to create innovative new applications (with an emphasis on the mobile variety) for use in Hong Kong and, where proven successful here, potentially for the international market.
Supporting a thriving Hong Kong ICT industry and research and development As outlined in the SWOT analysis, Hong Kongs open and transparent governmental framework and excellent ICT infrastructure make Hong Kong a fertile ground for ICT entrepreneurs to grow their innovative ideas into thriving ICT business startups. The unique advantages of close proximity to Mainland China coupled with Hong Kongs longstanding tradition as an important regional business hub can help shape a unique flavour to Hong Kongs emerging ICT industry. This strategic thrust addresses the challenges of how to grow a unique thriving ICT industry in Hong Kong - helping to translate innovation and research into business opportunities and economic value. The attraction and retention of the right ICT talent is a critical first component to this proposition. In association with the innovative environment mentioned in the previous strategic thrust, the right quantum of human capital and talent will provide the intellectual engine required to drive the ICT industry and ultimately help to create ICT champions in Hong Kong. Although we recognise that Hong Kong has a small domestic market, the opportunities arising from collaboration with Mainland are manifold especially for Research and Development (R&D). Meanwhile the prevalence of design talent and the extraordinary mobile penetration in Hong Kong suggests that the unique flavour of the Hong Kong ICT industry could help establish Hong Kong as a Mobile Centre of Excellence and a Digital Media Centre of Excellence. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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One measure of success for Hong Kong will be any measurable increase in the number of business startups at the intersection of business and technology and the emergence of potential ICT champions, amidst a competitive marketplace for talent and ideas. To support the realisation of this thrust, the key initiatives include: Supporting the evolving ecosystem to groom technology startups creates the culture and environment to bring together all the necessary ingredients for successful growth of new start-ups at the intersection of business and technology to foster the emergence of Hong ICT champions Growing top talent in ICT and business technology application puts in place the right professional frameworks and provides more focused training in collaboration with ICT industry leaders for the mutual advantage of prospective employers and employees alike Establishing Hong Kong as a Centre of Excellence for Multi-Platform Apps actively facilitates and encourages more business opportunities, events and competitions for multi-platform solutions Continuing to develop Cloud Computing and Data Centre Hub tries more effective promotion methods for cloud computing and data centre provisioning Exploiting convergence to combine Hong Kongs strengths in the media, creative and technology industries to make the city a Centre of Excellence in Digital Media builds a collaborative and innovative platform for professionals, amateurs and regular citizens to innovate, co-create and distribute new content through the latest digital media Continuing to leverage Hong Kongs unique position by enabling ICT businesses to access Mainland opportunities seizes full advantage of the physical and cultural proximity to expand the market for highly-prized solutions and services derived from Hong Kongs business acumen and technological innovation into the Mainland
Transforming and integrating public services through technology Over the last decade, e-Government services have evolved from the online provision of static historical public information to a more citizen-centric interactive multi-media two- way customer experience for both citizens and businesses. New and emerging technologies are exponentially expanding governments capacity to provide next generation public services. This strategic thrust seeks to build upon the Hong Kong Governments achievements in evolving its services and interaction relationships with the community. Mobile technologies, in particular, offer a transformational channel for more personalised anytime and anywhere services. With the highest mobile penetration rate in the world, Hong Kong is ideally placed to take the next step from e-Government to mobile government, fundamentally transforming the delivery and coverage of public services. The key benefit is that mobile government offers a better, more convenient, more integrated and wider range of services which can be highly personalised and location- sensitive. Through the shift from e-Government to mobile government and a continued Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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acceleration of mobile penetration, there is an expectation that public services should be mobile as a default. At the same time, the Smarter City provides an explosion in volumes of real-time data through intelligent sensors which offer valuable real-time multi-media location-sensitive information that can be instantly communicated to citizens through their mobile devices. To support the realisation of this thrust, key initiatives include: Delivering mobile government to citizens and businesses at their fingertips easy access anywhere, anytime makes multi-platform the default channels of choice for online e-services to increase service quality, to delight and to increase productivity of the worlds number-one mobile community Integrating and targeting services tailoring to individual needs designs and delivers more personalised e-services tailored to match individual needs and personal requirements to provide the type of service excellence and operational efficiency for citizens and businesses in Hong Kong Establishing a Smarter City infrastructure through further digitisation and Internet of Things and utilise Big Data to manage the thriving and growing city expands the coverage of sensory and other intelligent devices and further exploit other digitisation technologies throughout the smarter city then synthesise and analyse the mass of resulting data to produce insights and solutions for the benefit of the community as a whole.
1.6 Driving towards Smarter Hong Kong Smarter Living This report sets out a vision and blueprint to steer and guide the development of ICT in Hong Kong over the next few years, and proposes a set of strategic thrusts and supporting initiatives to drive towards the achievement of the vision of Smarter Hong Kong, Smarter Living. A further level of detail, linking areas of action to each initiative, is provided in Chapter 8 of this report.
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2. Introduction 2.1 Context Globally, Information and Communications Technology (ICT, such as the Internet, broadband and mobile technologies) continues to transform the way that people live, spend their leisure time, work and consume products and services. The impact has become all the more fundamental as ICT has become mobile, and as more of the infrastructure and things around us have become instrumented and interconnected. Hong Kong was early to recognise the importance of ICT developments and the potential contribution that technologies could make to Hong Kongs continued success. In 1998, the first Digital 21 Strategy was published by the Hong Kong Special Administrative Region Government (the Government) to set out the vision of Hong Kong as a digital city. As the needs of community changed and the technology advanced over the next decade, the Strategy was updated in 2001, 2004 and 2008.
The Digital 21 Strategy has served Hong Kong well, and in the light of the scale of the changes during the currency of the different editions of the strategy, and the progress made, the Government has embarked on a more extensive review of the current position in Hong Kong, the role of ICT, international developments, the future strategy Hong Kong should adopt and the programmes and actions the Government and others should take to ensure that Hong Kong is able to fully exploit the benefits of ICT in future. Of course Hong Kongs success in the effective exploitation of ICT rests on the contributions of many organisations and indeed the community as a whole. This strategy review both looks at the actions the Government can take, and how it can work with other important stakeholders and enable them to make their full contributions.
2.2 Report Smarter Hong Kong, Smarter Living is the strategy for the overall ICT development in Hong Kong in the next few years. It moves away from a particular date or century and reflects that ICT or digital developments are now integrated with every aspect of Hong Kongs community, economy and public sector so the strategy is not so much a separate digital programme. Of course, it continues to be very important to have a clear blueprint, actions and timescales for the programme itself, and we recommend the approach to this later in our report.
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Figure 1 Formulation of vision and strategic thrusts
IBM would like to express its gratitude to all those who helped and shared their views in the course of this study.
Latest technology development Review of Hong Kongs current ICT strategy and development Strength Weakness Opportunity Threats Vision Smarter Hong Kong, Smarter Living Empowering everyone through technology Igniting business innovation through exploitation of technology Supporting a thriving Hong Kong ICT industry and R&D Transforming and integrating public services through technology Review & Trends (chapter 3 & 4) SWOT analysis (chapter 5) Strategic Thrusts (chapter 7) Vision (chapter 6) Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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3. Review of Hong Kongs current ICT strategy and development 3.1 Looking back The previous Digital 21 Strategies have enabled the establishment of a strong foundation for Hong Kongs exploitation of ICT, namely robust and affordable communication networks, relatively high usage of e-Government and e-Commerce services, progress in securing digital inclusion for all groups, and a successful and expanding ICT industry. The diagram below illustrates how each edition of the Digital 21 Strategy has built on the previous progress and taken Hong Kong from foundation, to connection, to acceleration and digitisation.
Figure 2 Highlight of past Digital 21 Strategies
Our review of the outcomes of the 2008 Digital 21 Strategy has confirmed significant achievements in the last few years and, at the same time, has identified areas that could be further developed. The following paragraphs examine the results against each of the five key focus areas in the 2008 Strategy.
1998 High capacity communications systems Common software interface for secure electronic transactions People who know how to use IT A cultural environment that stimulates creativity and welcomes advances in the use of IT 2001 To enhance the world class e-business environment in Hong Kong To ensure that the Hong Kong Government leads by example To develop Hong Kong's workforce for the information economy To strengthen the Hong Kong community for digital exploitation To leverage Hong Kong's strengths in exploitation of enabling technologies 2004 Government leadership Sustainable e-government programme Infrastructure and business environment Institutional review Technological development Vibrant IT industry Human resources in a knowledge economy Bridging the digital divide 2008 Facilitating a digital economy Promoting advanced technology and innovation Developing Hong Kong as a hub for technological cooperation and trade Enabling the next generation of public services Building an inclusive, knowledge-based society Foundation Connection Digitisation Acceleration Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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3.2 Facilitating a digital economy Government continues to play a significant role as a user, supplier and facilitator of ICT and its applications and of bringing together relevant stakeholders in the community
High mobile and broadband penetration Since 2008, through the facilitation of the Communications Authority, Hong Kong has continued to increase its household broadband penetration from 75% to 85.5% (as of March 2013). Meanwhile its mobile penetration rate has rocketed from around 140% to just under 228.4% (as of March 2013) 1 . It is among the worlds highest, representing a significant margin of difference with neighbouring Asian economies (see figure 3 below). The average peak Internet connection speed of 57.5 Mbps is the fastest in the world and average Internet connection speed of 9.3 Mbps is also among the fastest. 2
Figure 3 Mobile penetration rates in neighbouring economies (2008 - 2013)
Reference: IBM analysis, Office of the Communications Authority, iDA (Singapore), Ministry of Economic Affairs (Taiwan), Organisation for Economic Co-operation and Development
Continued increase of ICT expenditure within the Government It is Governments objective to make the best use of ICT to enhance internal operational efficiency and improve service provision. The following table shows the Governments IT expenditure since 2001 and demonstrates a marked increase in ICT expenditure since 2008.
1 Reference: Office of the Communications Authority, Key Communications Statistics (http://www.ofca.gov.hk/en/media_focus/data_statistics/key_stat/index.html), Figures as of March 2013 2 Reference: Akamai, State of the Internet, 4th Quarter, 2012 Report 0% 50% 100% 150% 200% 250% 2008 2009 2010 2011 2012 2013 P e n e t r a t i o n
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Figure 4 Historical Government ICT expenditure
Reference: OGCIO official website Facts & Figures, Government IT Expenditure. Last updated 31 May 2013.
Top rankings in competitiveness and affordability Hong Kong continues to be recognised for its ICT development and innovation amongst other advanced economies, as demonstrated in the selected rankings below. These rankings also highlight the gaps that exist between Hong Kong and other developed and developing countries based on criteria such as ICT infrastructure, innovation, and competitiveness.
Table 1 Hong Kongs ranking results in selected international ICT rankings Source International Ranking The International Institute for Management Development (IMD) World Competitiveness Yearbook 2013 3rd INSEAD and World Economic Forum (WEF) Global Information Technology Report 2013 1st in International Internet Bandwidth 2nd in Business and innovation environment 3rd in Mobile tariffs affordability Global Innovation Index 2013 7 th worldwide 1 st I in Asia
2 0 1 3 - 1 4
( b u d g e t e d ) 2 0 1 2 - 1 3 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 0 8 - 0 9 Million HKD 7000 6000 5000 4000 3000 2000 1000 0 2 0 1 3 - 1 4
( b u d g e t e d ) 2 0 1 2 - 1 3 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 0 8 - 0 9 Million HKD 7000 6000 5000 4000 3000 2000 1000 0 2 0 1 2 - 1 3 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 0 8 - 0 9 Million HKD 7000 6000 5000 4000 3000 2000 1000 0 Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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These rankings clearly show the strength of Hong Kongs ICT infrastructure which is a critical factor in facilitating the development of the digital economy.
Conclusion Through Government facilitation in the highly liberalised market, various telecommunications, broadband and mobile service carriers are building Hong Kongs ICT infrastructure as one of the worlds best. Also by leading as example, the Government has continued to increase its ICT spending in the recent years. However, given the speed of development in technology and the increasing demand for easy and convenient access (anywhere and anytime) and faster service, combined with rapidly multiplying volumes of data, Hong Kong will need to continue to focus on building its technology infrastructure to support future growth.
3.3 Promoting advanced technology and innovation Maintaining Hong Kongs edge as a world smarter city for technology adoption and innovation
Research and Development (R&D) expenditure The figure below shows the overall trends in Hong Kongs R&D expenditure between 2007 and 2011. While public sector R&D investment grew by over 20% in this period, private sector R&D expenditure over the same period has stagnated. Hong Kongs overall R&D expenditure as a percentage of its gross domestic product (GDP) is less than 1% which compares unfavourably with neighbouring economies such as South Korea or Singapore, which are close to 3%.
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Figure 5 Hong Kong R&D expenditure (2007 -2011)
Reference: Census and Statistics Department, Hong Kong Innovation Activities Statistics 2011
Facilities for innovation Hong Kong has made steady progress in furthering its R&D efforts and capability. For example, the Hong Kong Science Park is developing its phase 3 expansion, increasing the park size by 50% to accommodate 150 additional companies and create 4,000 research-related jobs. This new phase will be completed in stages from 2014 to 2016. Cyberport continues to be an important facility for promoting and supporting new and emerging ICT-related enterprises in Hong Kong. For example it has recently sponsored the Mobility Experience Centre (MEC), which is an exchange platform for new technology concepts and mobile experience intended to provide advice to small and medium enterprises (SMEs) on utilising mobile technology to enhance their working environment and generate business opportunities. 6,352 7,028 7,359 7,545 7,751 6,055 5,265 5,474 6,194 5,767 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2007 2008 2009 2010 2011 Public sector R&D Private sector R&D
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The following table shows some core statistics about the ongoing Cyberport Incubation Programme and two other initiatives in Cyberport.
Table 2 Progress of the Cyberport Incubation Programme (as of March 2013) No. of companies admitted 189 No. of patents, registered designs and trademarks granted to incubatees 103 No. of awards granted to incubatees 106 Amount of angel investment funding attracted to the incubatees HKD 55 million Reference: Figures provided by Hong Kong Cyberport Management Company Limited
This programme provides incubatees with access to advanced facilities and resources, support in business development, financing and hiring of graduate interns, as well as entrepreneurship and technology training. On-site incubatees are also granted a rent- free office. The Programme provides an incentive for other world-class companies and clusters to develop business partnership with Cyberport tenants and incubatees. The level of intellectual property generated and the size of the angel investment funding attracted give encouraging signs of the benefits of this programme.
Table 3 Progress of the Cyberport Creative Micro Fund (as of March 2013) Amount of funds granted (Hong Kong dollars) 6.3 million No. of projects supported 63 Successful completion rate of projects 3 95% Reference: Figures provided by Hong Kong Cyberport Management Company Limited
3 Successful completion of projects refers to the fulfilment of the target outcomes and milestones in the project proposal approved. They are projects that could successfully develop ICT-related business ideas into viable commercial businesses. Many successful CCMF grantees subsequently joined the Cyberport Incubation Programme to further develop their business. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Launched in August 2009, the Cyberport Creative Micro Fund (CCMF) Scheme promotes innovation within the ICT industry by providing seed funding of HK$100,000 to cover concept and prototype development over a 6-month period to companies spearheading the development of creative ICT-related products or services. Some projects supported by CCMF were subsequently procured by major overseas enterprises. Such investments in physical facilities and centres can take time to generate outcomes, but early signs of success can be seen from the presentation of 5 Grand Awards and 6 Merits of Asia Pacific Information and Communications Technology Awards (APICTA) in 2012 to Hong Kong enterprises, with particularly impressive contributions made to e- Health and to media and entertainment sectors.
Adopting Open Source Software (OSS) Government departments have been progressively installing OSS-based systems where OSS represents the most cost-effective solution. Adoption of open source in the new e-Government Infrastructure Service (new EGIS), which targets for Platform- as-a-Service delivery, is mainly on application server software. Given the rate of OSS adoption, over 50% of the e-services of EGIS III are / will be using J Boss (OSS) as their application server software. As of December 2007, there are around 4,317 OSS- based computers used in 50 Government departments (over 50% of all government departments). The total number of OSS-based computers has increased from 3,440 in December 2006 to 4,317 in December 2007, representing a 25% increase. This reflects that the government departments adopt an open position in the choice of software products and the adoption of OSS has been increasing. They are mainly deployed as web, database, e-mail, security, proxy servers and for office systems.
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Utilising Public Sector Information Another important area for promoting innovation is the re-use of Public Sector Information (PSI). The Government rolled out the Data.One portal in March 2011 to create a central platform for disseminating PSI in machine-readable formats to facilitate value-added re-use. It leverages on community wisdom and technological advancements to bring convenience to the public and facilitate business in a cost- effective and creative way. Responses have been encouraging that many mobile applications have been developed using this source of data. The most popular PSI dataset, with over 700,000 daily downloads recorded to date, is the traffic snapshot data. The snapshot data provides real-time road traffic information and thus lends itself well to helping Hong Kong drivers to plan and optimise their car journey routes. The Government has also opened up another 11 categories of PSI, and is aiming for more. For information which is open to the public free of charge, it should also be made available in machine-readable formats on Data.One for free re-use.
Conclusion While significant progress has been achieved in promoting advanced technology and innovation since 2008, the relatively low level of private sector R&D investment in Hong Kong is an area for attention in terms of formulating Hong Kongs next ICT blueprint. One challenge for further consideration is that, because of Hong Kongs shortage of land and a small domestic market, ICT startups often find it difficult to scale up due to high initial costs. Also the ICT industry is competing for the best and the brightest minds with other business sectors in Hong Kong e.g. financial services. Globally, Asian and other economies are seeking to establish digital leadership to enhance competitive advantage in the new digital age. These factors pose a challenge for Hong Kong to maintain its lead in advanced technology and innovation.
3.4 Developing Hong Kong as a hub for technological cooperation and trade Harnessing Hong Kongs role as a two-way platform for Mainland enterprises and fostering a vibrant ICT industry
Closer Economic Partnership Arrangement (CEPA) CEPA offers specific opportunities for Hong Kongs ICT industry in seeking to explore further economic collaboration with the Mainland. For Hong Kong ICT services suppliers, they are allowed to set up joint venture enterprises to provide database services and set up wholly-owned enterprises to provide data processing and software implementation services. For Hong Kong, residents, they are allowed to take computer technology and software proficiency examinations. The full list of ICT-related CEPA measures are at Appendix D. Going forward, cross-boundary electronic commerce mutual recognition of electronic signature certificates will be developed to further expand both Hong Kong and Mainlands digital economies. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Collaboration projects and platforms IBMs research shows that innovation creates the most value at the intersection of business and technology insight, and through collaboration. Many R&D collaboration platforms have been set up to promote collaboration between Hong Kong and the Mainland at the central, provincial and municipal levels. Examples include the Shenzhen-Hong Kong Innovation Circle and the Guangdong/Hong Kong Technology Cooperation Funding Scheme (TCFS) which embraces ICT R&D. Over 40 joint projects with a total funding of over $250 million have been approved for supporting R&D collaboration between universities, research institutes and technology companies in the two places.
Facilities for collaborative ICT and R&D Within the last two years, four Hong Kong universities have established their industry, academic and research bases in the High-Tech Zone of Nanshan District in Shenzhen to conduct R&D and collaborate with their Mainland counterparts. There are currently 12 laboratories in Hong Kong that have gained the status of Partner State Key Laboratories (PSKLs) by pairing up with the SKLs in the Mainland. Some of them are actively conducting cutting-edge ICT related research.
Conclusion There are encouraging signs of greater collaboration with the Mainland, on R&D activity in particular, which occurred over the last few years. The CEPA provisions continue to provide opportunities for greater economic collaboration going forward.
3.5 Enabling the next generation of public services Using ICT to improve public service delivery The figure below shows the dramatic increase in the number of e-Government information enquiries and transactions within Hong Kong in recent years, which signifies the readiness and willingness of Hong Kong citizens to embrace technology and make greater use of public e-services.
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Figure 6 Number of e-Government transactions and information enquiries
Reference: Figures from internal surveys done by OGCIO (started in year 2010)
In common with other developed economies, Hong Kong should anticipate the publics rising expectation for more and higher quality public e-services, partly fuelled by citizens positive experience of e-services available in the commercial sector. Therefore it is important that Government is prepared to provide public services that are more integrated around the needs of the citizens and more personalised to their circumstances.
e-Government services ICT exploitation offers the Government opportunities to increase understanding of citizens and issues through better, more timely analysis. This provides the Government with the means to anticipate and address issues early rather than making a lagging response to demand. Over the years since the first Internet services, Hong Kongs e- Government services have evolved from simple department-based information websites through to more integrated citizen-centric e-services that have greater interaction with the user. This evolutionary process is amply demonstrated by GovHK, which was the Governments first step in providing a one stop shop for public e- services in 2007. The figure below illustrates how this has since evolved into MyGovHK, an integrated and personalised portal for citizen-centric e-Government services. A mobile version is planned to be launched by the end of 2013.
12,912 5,536 3,431 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2010 2011 2012 Transactions Information enquiries (in millions) Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 7 Development timeline of e-Government
Table 4 GovHK statistics (as of May 2013) Traffic ranking in Hong Kong 112 Average number of dail y visits to the desktop version (www.gov.hk) 74,983 Average number of dail y visits to the mobile version (m.www.gov.hk) 20,305 Reference: Figures from internal survey done by OGCIO
Figure 8 Average numbers of daily visits to GovHK
Reference: Figures from internal survey done by OGCIO
70,854 68,109 66,312 46,819 22,800 1,609 3,738 10,438 0 25,000 50,000 75,000 100,000 2008 2009 2010 2011 2012 Mobile version Desktop version Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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There have been more examples of recent progress on e-Government services: Customs and Excise Department redeveloped the Air Cargo Clearance System in late 2010 to provide faster customs clearance, enhance its cargo handling capacity, improve security and accuracy in cargo selection, and achieve more efficient analysis of data including the smuggling trend. It also fully rolled out the Road Cargo System in late 2011 to facilitate electronic customs clearance. The utilisation of the latter reached 36 million in 2012, which is 4.6 times that of 2011. Ration and Valuation Department (RVD) launched the eRVD Bill service in late 2010, allowing the public to receive the quarterly demands for rates and/or Government rent via the Internet in advance of the paper bills. It notifies users on issuance of electronic demands and may remind users of the payment due date. With the one-stop service for electronic company incorporation and business registration co-launched by Companies Registry and Inland Revenue Department in mid 2012, local and overseas investors can now start businesses less than one hour. The new service streamlines and automates the two departments business processes to facilitate business startups in Hong Kong. It also allows submission of 15 commonly filed statutory returns for companies. Leisure and Cultural Services Department completed in late 2011 Phase 1 of the Next Generation Integrated Library System that allows searching, reservation, borrowing and renewal of library materials through different platforms, and piloted the Radio Frequency Identification (RFID) technology in selected branch libraries. The implementation of Phase 2 has commenced, progressively rolling out such new functions and services as self-service printing, e-payment, customer relationship management, virtual reference service, electronic resources management, inter-library loan, and management information system. Development of the first stage of the territory-wide patient-oriented Electronic Health Record (eHR) Sharing System is in progress, with public consultation on the Legal, Privacy and Security Framework being conducted. Subject to the enactment of the eHR legislation, the eHR Sharing System is planned for rollout by the end of 2014. More examples and relevant information on the planning and progress can be found online. 4
The following figure illustrates the relative usage of the top ten most popular e- transaction and information enquiry public services in Hong Kong. It is interesting to note the variety and functional diversity of these e-services ranging from tracking of international Speedpost deliveries to library book online reservation and renewals.
4 Reference: Panel on Information Technology and Broadcasting (Papers), http://www.legco.gov.hk/yr11- 12/english/panels/itb/papers/itb_eb.htm Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 9 Top 10 most popular transactional e-services in the period from 1 January to 31 December 2012
Reference: Figures from internal survey done by OGCIO
Figure 10 Top 10 most popular informational e-services in the period from 1 January to 31 December 2012
Reference: Figures from internal survey done by OGCIO
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Mobile applications (apps) Mobile services transform how government provide services by making them even more accessible and citizen-centric through the remote delivery of government services and information to those who are unable or unwilling to access public services through traditional means or the Internet. In theory, many government services can now be available on a 24x7x365 basis at any place in the world covered by mobile networks.
Mobile versions of e-Government services, such as the GovHK Notifications and Tell me@1823 mobile apps, have been rolled out to provide anytime/anywhere two-way communications between the Government and the public. In one way, GovHK Notifications provides a one-stop platform for citizens to receive notifications from various Government departments at their choice. In the other way, Tell me@1823 co- launched by GovHK and the Efficiency Unit allows members of the public to submit enquiries, information and comments to the Government with texts, photographs, voice/video recordings and their GPS location. This helps the Government better be more responsive to public needs and concerns, and enhance public services. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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As of May 2013, the Government has developed 59 mobile websites and 56 mobile apps, three of which are cross-departmental, including the above-mentioned GovHK Notifications, GovHK Apps and EventHK. 26 Government departments have developed mobile apps and 32 Government departments have developed mobile websites as other electronic channels to deliver their services to the public. The most popular of all Government information e-Services is the MyObservatory mobile app which jumped from 1.9 billion visitors in 2011 to 9.2 billion in 2012
Internal operations and administrative support Government departments have been adopting ICT more widely to improve efficiency and streamline their operations. For example, Fire Services Department fully rolled out a computerised Integrated Licensing, Fire Safety and Prosecution System in mid-2012 to enhance the effectiveness of sharing fire protection information among various units and for handling applications relating to licensed premises. It features a mobile working platform for fire officers to check and input case-related data during fieldwork. The Customs and Excise Department has also replaced its Case Processing System to support the processing of cases for around 1,700 internal users comprising both disciplined and civilian staff. It provides computerised analysis tools and supports e- payment on excessive dutiable commodities at customs control points. Some Government departments are also exploring the use of analytics to help improve performance. As a joined-up initiative, the Government Cloud Platform (GovCloud) is being developed to support the hosting of common shared services, including electronic Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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information management (EIM), human resources management and electronic procurement which will be made available to Government departments in a flexible and cost-effective way starting late 2013. On the policy front, a Government-wide EIM strategy and framework has been promulgated to Government departments. The aim is to guide departmental EIM strategy development and drive EIM implementation in Government departments in a consistent manner to achieve better content, records and knowledge management across the Government as a whole.
Conclusion The volume and variety of Government e-services has continued to grow since 2008 and we can expect increasing public expectation and demand for even more e- Government services in the future, particularly for those mobile e-services where citizens can enjoy more integrated and personalised experiences delivered to them on the go. Besides adding new services based on the known demand voiced out by the citizens, the Government could consider formulating cross-departmental initiatives to explore and exploit the vast data collected for proactively developing new e-services.
3.6 Building an inclusive, knowledge-based society Ensuring that the benefits of ICT adoption are widely available to all segments of the community A Task Force on Digital Inclusion under the Digital 21 Strategy Advisory Committee was established to assist in formulating strategies and initiatives to address digital inclusion issues in Hong Kong. Under the steering of the Task Force, the Government has adopted a multi-pronged approach to drive wider adoption and more innovative use of ICT by disadvantaged groups to realise the full potential of the information society.
Government Wi-Fi Programme Since 2009, the Government Wi-Fi Programme (GovWiFi) has implemented over 2,200 hotspots at around 410 designated Government premises to provide free Wi-Fi access to the public.
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Digital inclusion programmes
The Government has launched a number of significant programmes to promote digital inclusion and adopted a targeted approach, focusing on three priority groups. These groups are: students from low-income families, persons with disabilities and the elderly. The Web Accessibility Campaign and the first government-led Web Accessibility Recognition Scheme were launched to promote the adoption of web accessibility design to facilitate access to online information and services for all, including persons with disabilities. To set an example, all government websites are required to conform to Level AA standard of the Web Content Accessibility Guidelines Version 2.0 (WCAG 2.0) promulgated by the World Wide Web Consortium (W3C) by 2013 within all practicable means. The Government has also funded many development projects for ICT-based assistive tools and applications for disadvantaged groups including persons with disabilities. With regards to students from low-income families, the five-year i Learn at Home Internet Learning Support Programme was launched in J uly 2011 to assist them to undertake web-based learning at home. As of 31 March 2013, 65,904 (23.4%) out of the 282,000 eligible families have enrolled in the programme and 17,652 have received at least one type of services. 5
5 Reference: http://www.legco.gov.hk/yr12-13/english/panels/itb/papers/itb0610cb4-711-4-e.pdf Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Lastly, the Government has also introduced a comprehensive set of programmes for the elderly. For example, the eElderly portal was launched in 2009 to encourage elderly people to become familiar and make better use of ICT. The first territory-wide Smart Elderly Awards recognition Scheme was launched in late 2012 to show appreciation and recognition to those elderly who use ICT actively in their daily lives. At the other end of the age spectrum, the Youth.gov.hk portal was launched to engage young people aged between 15 and 24 with services and opportunities. These are just some of the examples of how the Government used ICT to build an inclusive, knowledge- based society. The use of ICT among the elderly and persons with disabilities has shown signs of improvement since the last Digital 21 Strategy was published in 2008 (as shown in the graph below).
Figure 11 Percentage of computer usage among various groups in the society
Reference: OGCIO, Study on Digital Inclusiveness in Hong Kong
Persons with disabilities Mainstream community Elderly Persons with disabilities Mainstream community Elderly Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Conclusion There have been many initiatives undertaken by the Government to stimulate greater digital inclusion amongst disadvantaged groups. The higher indicators of digital inclusion since 2008, particularly for the elderly, are encouraging. The Government should continue the effort to implement more targeted digital inclusion initiatives to further narrow down the digital gap for elderly and persons with disabilities.
3.7 Summary of achievements and improvement opportunities Hong Kong has been successful in establishing a world-class ICT infrastructure and has made significant progress in many areas: The City has seen high mobile and broadband penetration and is ranked highly for competition and mobile affordability There is steady progress in furthering its R&D efforts and capability with the support of significant investment in facilities and application of public sector information (PSI) Many R&D collaboration platforms have been set up to promote collaboration between Hong Kong and Mainland China Public services are provided via integrated and targeted means such as GovHK and MyGovHK portals, and various mobile apps A number of assistance programmes have been created to narrow the digital divide. External forces such as talent competition, small domestic market, uncertainty of global economic outlook and the risk of digital exclusion prompt us to further explore how the new strategy could transform the development of ICT in Hong Kong in the next few years. Meanwhile the development and expansion of technology continues to drive change in all our daily lives at an accelerating pace and the technology landscape today - and over the next few years is substantially different from when the 2008 Digital 21 Strategy was published. The next chapter examines the significant changes and shifts that are under way which have been caused by technology trends.
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4. Latest technology developments 4.1 Changes under way As mentioned in the previous section, whilst Hong Kong has made significant progress in each of the five focus areas since the promulgation of the last Digital 21 Strategy, technology has not stood still. Developments in technology have reshaped many industries, business models and the interactions between people, businesses and governments. This chapter introduces a number of trends that are likely to be driving ICT technology development in the immediate, medium and long term in the coming few years and beyond. It begins with the most immediate trends around mobile and cloud computing. These technologies have already achieved a high level of maturity and are well received by consumers as well as businesses and governments. However this Nexus of Forces 6 , will certainly evolve and be a significant influence on consumers, citizens, businesses and governments alike. In the medium term, with the real-time capture, creation and accumulation of data, and creation of far more diverse types of data from structured data (e.g. banking records) to streaming and unstructured data (e.g. digital pictures, video, free texts), the world is now dealing with an unprecedented volume of digital data. At the same time, we anticipate we will be reaching a tipping point and moving towards an age in which information is abundant. This could help businesses and governments understand their customers and citizens far more comprehensively than before. There are plenty of new possibilities to develop more targeted products and services to meet the most critical needs of customers and citizens and ensure the right resources are used to achieve the objectives at the right time. We foresee that in the longer run, as we recognise the importance and possibilities of the sheer volume of data and information, it is anticipated that new storage, processing and analysis technologies will be developed and evolved to take full advantage of this pool of data and manage and safeguard this new asset of humankind. We anticipate that these technology trends will continue to drive change and development in many aspects of how everyone lives and works. For each of the technology trends, we set out a brief description of the technology trend in order to provide an overview of how these technologies have developed and evolved, followed by its implications for the community, business or the government. We conclude this chapter with a scenario illustrating how the technology trends may combine and converge.
4.2 Technology trends 4.2.1. Mobile Mobile computing is equipped with the same basic capabilities as traditional computing but with portability and enhanced functionalities. Smartphones and media tablets are
6 Reference: Gartner,Top 10 Strategic Technology Trends for Smart Government 2013. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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two common examples of mobile computing but the types of mobile devices continue to evolve. For instance, Google has recently launched mobile computing in the form of wearable technology through Google Glass. The enhanced functionality of mobile computing using location-based services, social networking and multimedia has brought numerous ways of innovation to everyday life. For the first time in history, global shipments of smartphones 7 surpassed personal computer (PC) shipments 8 in 4Q 2010. In addition, global shipment of tablets is also forecasted to surpass PC in 2013. 9 As shown in the below graph, shipments of smartphones and media tablet is predicted to reach 1.86 billion units by 2017, compared with 0.85 billion units in 2012. 10
Figure 12 Worldwide PC and smart device shipments (2012 -2017)
Given the explosive growth in mobile devices, and peoples growing expectation to be able to do anything anywhere, governments and businesses will need to rethink how they re-architect systems to deliver value to citizens and customers via mobile computing.
7 Reference: IDC, Android Rises, Symbian^3 and Windows Phone 7 Launch as Worldwide Smartphone Shipments Increase 87.2% Year Over Year. 7 February 2011. 8 Reference: IDC, PC Market Records Modest Gains During Fourth Quarter of 2010. 12 J anuary 2011. 9 Reference: IDC, Worldwide Smart Connected Device Market Crossed 1 Billion Shipments in 2012, Apple Pulls Near Samsung in Fourth Quarter. 26 March 2013. 10 Reference: IDC, Worldwide Smart Connected Devices Market Forecast Unit Shipments (Millions), 4Q 2012 0 500 1,000 1,500 2,000 2,500 2012 2013 2014 2015 2016 2017 Smartphones PCs Media tablet Unit millions Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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New generation of anytime, anyplace applications The proliferation of mobile usage already has, and will continue to have, a significant impact for individuals, businesses and governments. Applications built for mobile devices generally fall into two categories: vertical - where the focus is on a particular industry; and horizontal - where the application is an enhancement on existing services. For example, in education, by introducing mobile computing into the learning process, a mobile device can be turned into a Personal Learning Environment (PLE) 11
by adding very inexpensive, and often free, applications. Traditional learning activities such as goal setting, research, collaboration, and content creation can now be conducted anytime, anyplace. In business, new business models are being designed for mobile first. From business applications for the construction industry (PlanGrid), sales and marketing service (ServiceMax) to payment methods (MasterCard PayPass), businesses are rapidly expanding the range of services available on mobile devices. Governments in many places are already using mobile as an alternative or preferred channel for their online e-services, from informational and education services like weather and tourism, to transactional services like filing taxes and receiving social benefits. As more and more government e-services move to the mobile channel, citizens will be able to access government services anytime and anywhere.
4.2.2. Cloud computing Cloud computing consists of a pool of computing, storage and networking resources that can be allocated and moved around by special software. Cloud computing provides a scalable computing environment for businesses without the need for them to own or manage the computing assets. The dynamic nature of this allocation allows users to request for and utilise computing resources as a service whenever it is needed. Users could request for the base hardware and operating system (called infrastructure as a service or IaaS), an infrastructure ready for application development (called platform as a service or PaaS) or an infrastructure that already comes with a specific business use, like customer relationship management (called software as a service or SaaS).
11 Reference: Mark van Harmelen, Personal Learning Environment, IEEE Computer Society. 2006. International experience and benefits Square, Inc. is a US mobile payments company that transformed mobile devices into an innovative point-of-sale (POS) payment system. The product and the business model were built with mobile first and allow individuals and merchants to accept card payments using their mobile devices. A small plastic attachment plugs into the audio jack of a supported smartphone or tablet and reads the card's magnetic stripe. The company charges service fees for every card transaction with no monthly or setup costs. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Depending on security, corporate or regulatory requirements, cloud computing can be delivered inside a companys data centre, externally by a third party company or a combination of both. The latest idea for this technology, which is named cooperation as a service (CaaS), is to combine different cloud computing environments together and allow computers to share all the infrastructure, platform and software services with all other participants, similar to how Peer-to-Peer (P2P) networking works. This is still at an early phase and further research is needed. The global market for cloud services is expected to continue to grow in the foreseeable future, with one estimate showing a five-year compound annual growth rate of 16.8%, reaching over USD 200 billion by approximately 2017. 12 Another forecast, as shown in the figure below, predicts that the global cloud computer market will grow to USD 241billion by 2020.
Figure 13 Global cloud computing market is forecast to grow 22% per year through 2020
Reference: Forrester Research, Sizing the cloud
Acceleration of a booming ICT industry For businesses, cloud platforms can greatly accelerate a booming ICT industry or startups and can speed up the time to market for new innovative business ventures. According to a recent study by Rackspace Hosting with support from Manchester Business School, 90% of the businesses surveyed which had started in the last three years said that cloud computing has made it easier to set up their businesses. 13 Cloud platforms can enable entrepreneurs and innovators to start new ventures with minimal capital requirements and quickly acquire the technical services desired by purchasing the functionalities of the cloud and implementing their business applications on top.
12 Reference: Gartner, Forecast Overview: Public Cloud Services, Worldwide, 2011-2017, 1Q13 Update. 13 Reference: Rackspace, Economic Impact of Cloud Blog Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Cloud platforms are also transforming government internal operations. The technology provides governments with the ability to fine-tune their services for better operational efficiency. The technology also provides governments with the agility to quickly develop new services at a faster rate and at a lower cost. In addition, the standardisation components within cloud computing can reduce the number of approvals needed to acquire the computing resources, thus saving time and money.
4.2.3. Internet of Things Internet of Things (IoT) refers to the pervasive presence of connected devices that enable machine-to-machine communication, e.g. everyday objects embedded with Radio-Frequency Identification (RFID) tags, sensors, and actuators, that have sensing, data capture, and communication capabilities. These everyday objects can be coffee machines, shampoo bottles, cars, steering wheels, servers, or any physical items that come to mind. These everyday objects connect with each other through a network to form a global network of intelligent computer systems and devices. The connected devices are able to interact with each other to monitor changes in, for example, the physical environment, an individual object or persons movement or behaviour and ultimately relay this information back for analysis. In the future, many everyday objects will be connected to the Internet. As the chart below illustrates, the number of such connected devices around us is growing exponentially. It is predicted that there will be 25 billion devices connected to the Internet by 2015 and 50 billion by 2020. 14 This vast network of connected objects will mean that tasks and information exchanges can be automated which would dramatically change our everyday life.
14 Reference: Cisco, The Internet of Things How the Next Evolution of the Internet Is Changing Everything. April 2011. International experience and benefits Cycle Computing, a company that offers on-demand high-bandwidth supercomputer capabilities to scientific and technical firms, is a business built on the cloud. The company makes supercomputing power available to everyone and helps other startups and small businesses to take advantage of that power at significantly lower cost, which traditionally only Fortune 100 companies could consider. As a result, a number of small businesses have been spawned to tap into the new capabilities offered. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 14 Number of connected devices per person
Reference: Cisco, The Internet of Things How the Next Evolution of the Internet Is Changing Everything.
Real-time monitoring and responses The growth in connected devices means that changes in the physical environment can be monitored in real time and the immediate analysis of this real-time information can enable decision makers to make faster and better decisions. This capability can be applied in retail, healthcare, manufacturing and logistics, public services and many other industries. In retail, connected devices can be installed to note shoppers profile data (commonly stored in their membership cards) to gather any relevant information to help close purchases at the point of sale. For example, further discounts or promotions can be offered to shoppers who are identified as price conscious based on the information collected from the sensors. Retailers can also gather and process data from thousands of shoppers as they journey through their stores. Connected devices note how long the shoppers linger at individual displays and record what they ultimately buy. Simulations based on such information will help to increase revenues by optimising retail layouts. In healthcare, connected devices can be used to track the behaviours and symptoms (e.g. body temperature, blood pressure, heart rhythm and other parameters) of at-risk patients to improve the safety and quality of patient care. With real-time information on the patients, physicians can better diagnose disease and prescribe tailored treatments. 6.58 3.47 1.84 0.08 0 10 20 30 40 50 60 2003 2010 2015 2020 T o t a l
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Total no. of connected devices in the world No. of connected devices per person International experience and benefits A remote pacemaker monitoring solution makes use of implantable devices to provide better patient care. Cardiac patients with a pacemaker are typically followed up every 312 months. The remote pace-maker monitoring solution can transmit the related data automatically on a daily basis, and an analytical tool could then alert the physicians if vital signs move outside predefined limits. This enables a higher level of patient care, early diagnosis of problems and peace of mind for the individual. It also improves administrative efficiency and maintenance. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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In terms of the operational performance of a hospital/healthcare facility, sensors can be installed on expensive surgery equipments to monitor their actual usage so as to maximise equipment utilisation and reduce waiting time. In manufacturing and logistics, information collected through connected devices can help boost operation efficiency. Sensors can be installed on manufacturing parts for automated tracking which may help reduce lost and theft. Logistics for airlines and trucking lines can be streamlined through the use of connected devices to get up-to- the-second knowledge of weather conditions, traffic patterns, and vehicle locations connected devices increase the ability to make constant routing adjustments that reduce congestion costs and increase a networks effective capacity. IoT applications in the IT Services and Networking sector have emerged. For instance, solutions and practices to manage networking equipment and servers installed in different data centres under a cloud infrastructure; managing mobile devices like Find Your iPhone by Apple; and off-the-shelf Mobile Device Management tool to protect against data leakage when a mobile device is lost, etc. In the public services domain, the application of connected devices spans a wide variety of areas including environmental protection and transport. Connected devices can provide situational awareness that can help citizens and government agencies act and react at the operational level to make informed decisions, and support sensor- driven analytics that help with planning decisions. Services as simple as public parking, for example, will benefit from the use of connected devices. Traffic and road use information can be provided by sensors installed in some of the parking meters. The consolidated data can provide insights for traffic network design, and assist road users with supplementary information that allows a better driving experience.
4.2.4. Next generation workplace Through the digitisation of information and the critical mass reached by mobility and collaborative technologies, todays workplace can be a virtual environment on top of a physical one, where workers can accomplish work at and out office through a multitude of devices. Workers expect information needed to complete the work to be readily accessible, and can cooperate with others regardless of geographic boundaries using collaboration technologies. Global changes of workplace environment are currently taking place. More connected working environment can facilitate clusters of workers to work, chat, share, meet, and even make decision through text, voice, video at geographically dispersed offices / locations anytime. This provides more flexibility to the working population, and offers opportunities to improve business efficiency.
International experiences and benefits The Canadian governments Public Works and Government Services Canada (PWGSC) introduced Workplace 2.0 to modernise how civil servants work. Workplace 2.0 addresses 3 elements: the physical workspace, the supporting policies (e.g. telework), processes and systems (e.g. Shared Services Canada) that assist public servants in their work, and the new technologies that allow them to communicate (e.g. high-definition video conference systems) and collaborate across government and with Canadians. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Looking forward, the ability to work anytime, anywhere, on any trusted device, in any language will intensify where workers will be evaluated based on performance, not merely presence, in the results-oriented work environment. Social networking services with mobile technologies will replace e-mail as the primary form of business communication in the very near future 15 and workers will collaborate based on the swarming work style where teams are formed quickly to tackle a problem or an opportunity and then dissipate. 16 Knowledge is collective through mass collaboration and can be easily shared and accessed. The Government has already embarked on the digitisation of its records through the electronic information management (EIM) initiative. The records, eventually in digital form, laid the foundation for access by Government officers off site. The ability to further enhance collaboration and contribute to and share the collective knowledge from anywhere will help meet workers expectation of the future workplace.
4.2.5. Big data and anal ytics Big data is, in simple terms, an unprecedented massive collection of complex and large data sets that are continually being accumulated and growing ever larger. On a daily basis, the world creates 2.5 quintillion bytes of data. It is estimated that 90% of the data in the world today has been created in the last two years alone 17 . This data comes from everywhere: sensors used to gather climate information, posts to social media sites, digital pictures and videos, purchase transaction records, and mobile device GPS signals to name a few. And the types of data are more diverse and varied. In sum, big data offers challenges and opportunities in three dimensions, namely volume, speed and variety.
To cope with the challenges posed by the volume, speed and variety of big data, radically new thinking is required to figure out how best to store and retrieve such data and information. Firstly, as data is generated almost everywhere, some are residing in structured data sources (e.g. transaction record systems in banks) and others are content generated by customers and citizens and residing in unstructured data sources (e.g. pictures and free text comments on social media sites). Data is often stored in many different systems and silos. Given this situation, businesses and governments need to rethink how they could retrieve and access such diverse data sets in order to take advantage of big data to support their day-to-day operations as well as important decision-making processes. For example, an open-source software framework called Hadoop has been developed to handle such a demand in accessing such large volume, diverse and distributed data sets.
Secondly, businesses and governments need to ensure data storage is optimised and develop a mechanism to determine what data should be moved to the data warehouse, and what data should be offloaded e.g. infrequently accessed or aged data.
15 Gartner, Worldwide Wireless E-Mail Users to Reach 1 Billion by Year-End 2014, J une 30 2010 16 Gartner, World of Work Will Witness 10 Changes During the Next 10 Years, August 4, 2010 17 Reference: IBM Research Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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The explosion of data however also means there is a greater need for data collectors to provide full disclosure on when data is being collected and if so, how the data is being used. Transparency is the best way to achieve trust and confidence in decisions being made using big data.
With its sheer volume, diversity and speed of accumulation across different aspects of life, big data provides new possibilities in generating insight about customers and citizens, in terms of their needs, preferences, and behavioural patterns. Businesses and governments can significantly improve how they serve their customers and citizens by providing more targeted products and services. In turn, the society as a whole can further reduce wastage and increase overall efficiency and effectiveness.
Figure 15 Big Data volume is expanding at an unprecedented rate
Reference: IBM anal ysis
A new set of analytical tools are needed to take advantage of big data, namely advanced analytics. Advanced analytics usually refers to the set of ICT tools that are built on various proven mathematical and statistical modelling techniques (e.g. correlation, stochastics) for developing data patterns. With big data, advanced analytics can process and analyze structured (e.g. relational data) and unstructured data (e.g. free texts, image, video) using these modelling techniques in order to uncover patterns of customers and citizens product and service consumption, preferences, timing, as well as their deeper emotive reactions. With proper analyses and interpretations, these patterns can then be turned into useful insights about customers and citizens.
This in turn provides new capabilities for businesses and governments to not only track the historical records, but more importantly, to predict and anticipate changing needs and wants of customers and citizens ahead of time, and enable decision makers to make more informed and timely decisions. G l o b a l
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Derive meaningful insights in all aspects of life In healthcare, advanced analytics and big data can revolutionise healthcare by transforming biomedical informatics. Big data analytics can mine information that predicts disease across a population or can be used to identify the causes of complex community diseases, trace the spread and evolution of infectious pathogens, analyse the most potent and efficacious cures to target patient groups, or allocate resources for primary and specialty care in the most effective manner. In transportation, advanced analytics and big data can predict traffic conditions, manage vehicle flows, optimise fuel consumption, and avoid accidents. This can enable an intelligent traffic system which can then be hooked up with smarter cars. Data on flights will be coupled with road and railway traffic data to allow optimised traffic management in terminals and airports. In education, educators can use advanced analytics and big data to determine the best way to teach, and predict education outcomes based on study records and student behavioural analysis. This will enable personalised syllabus and teaching content to deliver customised education. Apart from the above domains that are highly relevant to Hong Kongs public services, other areas in the public and private sectors, such as finance, logistic and utilities can also gain substantial benefits by deploying big data and analytics technologies. The ability to provide valuable, citizen-centric services, in which users will in turn, award the provider with even more insight, will strengthen the competitiveness of the business, industry and city.
4.2.6. Social Media Social media is an environment that allows people to create, share and consume information, ideas and content through the Internet. Immediacy (of both distribution and feedback), quality and reach are some of the main differences between social media and the traditional ways of sharing content. The growth of social networks has risen alongside Internet usage in the past number of years. Figure 14 shows the growth of the social networking population among individuals, whilst Figure 15 highlights the fact that organisations from both private and public sectors are also making a presence on social networking platforms to uncover opportunities in creating additional value during the interactions with customers or citizens.
International experience and benefits Brigham and Womens Hospital is a teaching affiliate of Harvard Medical School. It sought a solution that could bring the latest drug interaction data right to patients bedsides. It implemented a solution that could use its massive data volumes and conduct multiple drug studies simultaneously. This allowed researchers to design, test and apply brand new algorithms to quickly identify drug risk warning signs. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 16 Rise of the global social networking audience
Reference: ComScore Media Metrix, Worldwide, March 2007 October 2011. Its a Social World: Top 10 Need-to- knows about Social Networking and where its headed. 7 December 2012.
Figure 17 Percentage of Fortune Global 100 companies with a presence on major social media platforms
Reference: Burson-Marsteller. Global Social Media Checkup 2012 released August 15, 2012
Enriched citizen engagement and crowdsourcing to tackle complex social challenges An effective application of social media for organisations, governments and citizens can enhance the experience of the interaction between the different parties and provide greater insights into the customers or citizens individual needs. Organisations and governments can listen to, and engage with, customers or citizens at a deeper level and address the potential issues with immediacy Another key application of social media is skills augmentation and workload distribution. By deconstructing a complex problem 0 200 400 600 800 1,000 1,200 1,400 1,600 2007 2008 2009 2010 T o t a l
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( M i l l i o n ) Total internet Social networking 2011 Twitter YouTube 65% 2010 2011 2012 77% 82% Facebook 54% 61% 74% 50% 57% 79% 100% International experience and benefits US researchers have been trying for decades to model the molecular structure of a complex protein found in Human Immunodeficiency Virus (HIV). They invented a protein-folding game called Foldit to recruit the help of citizen scientists to produce accurate models of the protein. More than 236,000 players registered and 57,000 players participated. Within three weeks, participants in the game had solved a puzzle that had vexed scientists for years. Solutions provided important insights into the development of new retroviral drugs. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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into smaller or simpler tasks, social media enables a large group of people, or crowd, to tackle the problem by resolving the simple tasks individually. For example, in 2011 researchers invented a protein-folding game to draw on the collaborative effort of 57,000 citizen scientists to solve a puzzle that had vexed scientists for years (details can be found in the international experience highlighted below). This form of collaboration, or crowdsourcing, benefits both citizens and organisations in tackling complex technical and societal challenges.
4.3 A fundamental rethink of the way people live and work Through social media, mobile computing and IoT, the world is generating data on an unprecedented scale. With the emergence of big data analytics and cognitive and cloud computing, businesses and governments are able to take advantage of the velocity and variety of both structured and unstructured data captured in the significantly complex data sets, and generate new insights to dynamically understand citizens needs and spot new paths to value. Value is no longer measured by the basic service that the Government provides today but by the convenience and the individualisation that accompany the delivery of the service. As such, these digital forces are changing how citizens live, how businesses work and how governments serve. This fundamental shift requires business enterprises and government agencies to fundamentally rethink the end-to-end experience for their customers and citizens in addressing the new expectations: Instant access to information, products and services Engagement as individuals, on their own terms anytime and anywhere Transparency from businesses and government agencies they interact with Trusted, mutually beneficial relationships that go beyond one-time transactions Seamless experiences that match product and service quality Multimedia and multi-tasking enable daily work life of citizens. Thus the key question is: how ready are businesses and governments to cope with this fundamental transformation?
International experience and benefits Computer scientists and biologists from Columbia University, Cornell University and IBM have been working on a cognitive computing project called Systems of Neuromorphic Adaptive Plastic Scalable Electronics (SyNAPSE). It attempts to reproduce the structure and architecture of the brain on cognitive computers. It analyses the way our brains receive sensory input, connect to each other, adapt these connections, and transmit motor output. The SyNAPSE project has been successful in building a computational system that emulates the brain's computing efficiency, size and power usage. This opens up exciting new opportunities to transform our understanding in neuroscience, and potentially creates opportunities to improve neurology healthcare. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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How new digital could weave into the fabric of everyday life Lets imagine a scenario with Kelly, who is a 28-year-old financial services professional working in Hong Kong. During one evening, Kelly receives a new mobile device promotion from her mobile service provider based on her current data and voice usage stored on the customer information system. She clicks on the link and enters into the service providers portal. Kelly reviews the information available and decides to consult other opinions through her group of friends on Facebook about the new phone. She shares a link on her Facebook page from the providers web store. As she passes by the providers retail shop, Kelly receives a promotional SMS, because her location service is switched on. This promotional offer is valid for today upon her purchase of a new device. She immediately accesses Facebook on her mobile to see feedback from her group of friends. She receives positive messages and decides to take up the promotional offer. As soon as Kelly enters the retail shop, with a short wait time, the store associate (holding a mobile device with all of Kellys purchase history and preferences readily pulled up from the internal customer management relationship) greets her as Kelly is one of the most loyal customers. She immediately introduces Kelly to the new device on the promotion coupled with additional personalised offers. In the meantime, Kellys friends, who are also on the same network, are offered new promotion offers. As Kelly returns home, she is offered loyalty points for rating her experience on Facebook and her referrals.
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5. SWOT anal ysis of ICT development 5.1 SWOT context In this chapter, we present the internal, external, positive and negative factors that will affect how Hong Kong achieves its ICT vision as outlined in this Strategy. The assessment is based on a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. It helps identify the important strategic themes for further consideration and ultimately to determine the potential strategic initiatives described later in this report. Strengths represent those positive factors, internal to Hong Kong, which can be leveraged within the new strategy, while weaknesses represent those disadvantageous factors which need to be addressed and or taken into account. Opportunities are generally emerging and external in nature and provide factors which should be exploited by the overall strategy, while threats are also external and emerging, and understanding them can help to focus attention on possible mitigation actions. We have deliberately taken a forward looking perspective in the SWOT analysis, taking into account the technology trends and impacts described in the previous chapter. Thus in some areas where Hong Kong has made progress during the years covered by the various editions of the Digital 21 Strategy (as indicated earlier) there may be more to do in the years ahead to exploit the new opportunities and address new threats posted by the continued impact of rapid changes in technology. The various information sources used in this analysis include international benchmarking studies (e.g. World Economic Forum), IBM research papers and international experience, Hong Kong surveys and statistics and feedback from this studys consultation sessions with key stakeholder groups. In some cases the findings and facts underlying the SWOT have already been described as part of our review of progress under the 2008 Strategy and in this case we refer to findings briefly here for completeness.
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5.2 SWOT anal ysis Strengths Weaknesses First class ICT infrastructure Robust & reliable legal, business and economic environment Receptive market for innovative products Strong regional business hub Strong reputation for commercialising new developments in business and technology A relatively small domestic market Many competing thriving sectors (e.g. financial) Shrinking manufacturing & industrial sector Shortage of land Opportunities Threats Growing opportunities in Mainland China as its economy shifts from exports to domestic consumption, the services sector expands, and Chinas own exploitation of ICT grows rapidly Huge possibilities presented by the next generation of technology trends (e.g. Cloud, Mobile, Big Data, Social Media, Internet of Things) International experience illustrates the benefits of leveraging PSI datasets more widely Innovation in healthcare and elderly services incentivised by the ageing population Competition from other Asian and global economies which are also seeking to establish digital leadership Uncertainties in the global economic outlook Risk of digital divide for those without ICT access
Strengths First class ICT infrastructure Hong Kong continues to have in place an excellent and affordable ICT infrastructure supporting the delivery of services and the development of the local ICT industry. The ICT infrastructure coverage provides Internet access to a vast majority of the population at an affordable price 18 to help deliver the various benefits of ICT. As indicated earlier in this report, the penetration rate of household broadband is around 90% and the mobile penetration rate is about 228.4% (as of March 2013). The average peak Internet connection speed of 57.5 Mbps and average Internet connection speed of 9.3 Mbps are also among the fastest in the world.
18 Reference: International Telecommunication Union (ITU), Measuring the Information Society 2011. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Robust & reliable legal, business and economic environment Long-term economic stability gives Hong Kong a relative business advantage in encouraging long-term international and local investments compared to some other economies in Asia. 19 Hong Kongs Government institutions and legal framework are respected internationally. The rule of law and free flow of information are valuable assets in helping to attract international companies to set up regional headquarters here. The pro-competition regulatory framework encourages competition and innovation in Hong Kong. Hong Kongs pro-competition business environment and minimal foreign ownership restrictions help companies to compete and innovate and to provide the best services to consumers at competitive prices. Hong Kong is ranked highly in a number of international economic freedom rankings. In particular, Hong Kong has been ranked the first in the Heritage Foundation Index of Economic Freedom since 1995. Hong Kongs legal system has built a good reputation internationally for intellectual property (IP) protection. IP protection in Hong Kong has a long history and is viewed as one of the leading nations or cities. 20 Also, many international law firms have offices in Hong Kong and can supply a strong pool of IP rights experts. Receptive markets for innovative products The Hong Kong consumers are enthusiastic about experimenting with the latest consumer technologies, from smartphones to social media. 21 Over 10 million 3G/4G mobile subscribers in Hong Kong were recorded, i.e. over 62% of all mobile subscribers (as of March 2013). 22
Hong Kong is often amongst the first batch of cities for consumer technology companies to launch their innovative products, and many local consumers are early adopters of new products and concepts in technology. Regional business hub for sophisticated use of ICT Hong Kong is a regional hub 23 and the ICT industry has built up excellent domain knowledge as a result of developing solutions for sophisticated users in business sectors such as financial services, logistics, healthcare, etc. According to the Census & Statistics Department, 1,367 companies were operating regional headquarters in Hong Kong in 2012. Strong reputation for commercialising new developments in business and technology Hong Kongs economy and business community are successful in taking new ideas and developments and finding effective ways to commercialise them. As value creation usually takes place at the intersection of business and technology, this strength is of great relevance to the exploitation of ICT to support Hong Kongs success 24 .
19 Reference: Census and Statistics Department and InvestHK, Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong 2012. 20 Reference: China Intellectual Property, "Hong Kong IP development: fast in speed and subtle in quality". 21 Reference: World Economic Forum, Global Information Technology Report 2013, Hong Kong is ranked as 12 th in the use of virtual social networks (e.g. Facebook, Twitter, LinkedIn). 22 Reference: Figures provided by Office of the Communications Authority 23 Reference: Census and Statistics Department Report on 2012 Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong 24 Hong Kong was ranked among the world's top 4 tech capitals to watch (after Silicon Valley and New York) by Forbes. Reference: http://www.forbes.com/sites/karstenstrauss/2013/03/20/the-worlds-top-4-tech-capitals-to-watch-after-silicon- valley-and-new-york/2/ Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Weaknesses A relativel y small domestic market Given the small market size, ICT start-ups in Hong Kong may find it difficult to scale and to compete in the global market during their early development phase. This can limit the development pace of the local ICT start- ups, and may encourage overseas businesses to choose locations with larger domestic markets. Many competing thriving sectors (e.g. financial) There are many careers and employers competing for the most able students emerging from university and the ICT industry is sometimes not perceived as a preferred career among some students who may be more attracted by, for example, the financial services industry or a career in business management. The opportunity for a long-term career within ICT is perceived by some to be jeopardised by the recent trends of out-sourcing and off-shoring. The increasing role of ICT in economic development and ICT career prospects are not effectively communicated to the students. 25 To some extent this perception seems to rest on an overly narrow view of what a successful ICT career involves. As mentioned below, some of the most valuable skills in the future will be the ability to combine business and technology insights to understand how technology can address current challenges and create new possibilities rather than simply technical ICT skills. Shrinking manufacturing and industrial sector The manufacturing and industrial sector in Hong Kong has undergone limited or negative growth since the 1990s due to the cost competition with low-cost cities or regions. Recent data showed that manufacturing accounted for 1.8% of the GDP while employment in manufacturing took up 3.4% of the total employment 26 , which are relatively insignificant compared to other major industries. A strong high tech manufacturing and industrial base is conducive to ICT hardware and software development. Hong Kong has a service sector of 93% and thus do not have the manufacturing and industrial bases to support the ICT industries like our neighbouring cities. On the other hand it is important to note that ICT plays a vital role in many service industries and therefore this is an area where the Hong Kong ICT industry does have a great opportunity. Shortage of land The relative shortage of land and office space puts pressure on the ICT industry, especially start-ups which would require an upfront investment on office space. The ICT start-ups are an important driver to bring innovation to this fast- paced industry, and thus ICT ecosystem is affected by high office rental. Also, data centres require a lot of space in hosting the hardware and infrastructure. Office rental is a key cost driver to the data centres and thus high office rental affects Hong Kongs competitiveness as a data centre hub.
Opportunities Growing opportunities in Mainland China As its economy shifts from exports to domestic consumption, the services sector expands, and Chinas own exploitation of
25 Reference: IT Manpower Workshop report completed 2013 J anuary and IBM consultation workshops with ICT industry and education institution representatives. 26 Reference: Trade and Industry Department,, Fact Sheets Trade and Industry 2012. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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ICT grows rapidly. It is estimated that over the next five years, the Chinese market will roughly double in size. 27 By 2022, Chinas retail market is estimated to grow to twice the size of the US. Being part of China and such a large fast growing economy provides huge opportunities to Hong Kong in many aspects. 28 The nature of that opportunity is shifting as the Mainland economy focuses more on domestic consumption and there is more focus on providing services alongside the manufacturing of products. The nature of retailing is changing fundamentally as online shopping allows Chinese consumers access to both leading global and local brands. These developments are already having major impacts and many successful enterprises, such as Alibaba, are emerging. 29 The ICT opportunity in Mainland China is therefore growing rapidly, e.g. Internet of Things 30 and with it the opportunities for the Hong Kong ICT industry. Hong Kong can also sometimes be an attractive market for ICT and other enterprises to try out new business models, products and services as a preliminary step to entering the China market all the more so given the high volume of retail sales in Hong Kong to China visitors. Huge possibilities presented by the next generation of technology trends (e.g. Cloud, Mobile, Big Data, Social Media, and Internet of Things) - As economies around the world continue their efforts to understand and exploit current technologies, the next wave of developments is already underway and the possibilities continue to expand. Cloud computing means many things to many people on demand computing capacity (storage and computing power), software as a service and applications as a service. Cloud also has the potential to transform data centre services with cloud computing an area where Hong Kongs ICT sector has had significant success with Governments support and facilitation. Mobile and social media have taken ICT out of the home and office and allowed people to live and work in different ways and to develop many new applications. The Internet of Things means that it is now possible to build a new level of intelligence into the physical world and infrastructure around us. This has the potential to provide new insights and ways to address shared community challenges that Hong Kong is faced with such as the environment, traffic congestion, food safety and security, building safety and healthcare. Given Hong Kongs track record for developing ways to exploit new technologies, this should represent a significant opportunity for the city and for its ICT industry. International experience illustrates the benefits of leveraging PSI datasets more widely Managing and delivering public services involves governments in collecting and using vast amounts of data about the cities they govern. There is a lot of potential value to the community in aggregating and exploiting this data but the government agencies that collect it may not be in the best position to assess what data would be helpful or develop the innovative applications that can take advantage of it. Experience from other governments shows that the private and non-government sectors can be very innovative in finding uses and applications to such data provided it can be made available to them freely in the right format. Of course data that could identify an
27 Reference: Economist Intelligent Unit, Chinas retail market: Double dragon. 28 Reference: Bauhinia Foundation Research Centre, Guangdongs Economic Transformation in the 12th Five-Year Plan and Hong Kongs Opportunities. 29 Reference: The Economist, Alibaba The worlds greatest bazaar. 30 Reference: CNN, China looks to lead the Internet of Things. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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individual is not needed or appropriate for such use. But much public data does not relate to people but to the physical environment, and data on people can often be aggregated to avoid potential privacy concerns and then released for innovative re-use. Governments generally pursue this type of PSI opportunity by releasing data through a portal or platform. The Hong Kong Government has set up such an open data platform (Data.One), and some selected PSI is now available for download and re-use. This offers opportunities to further expand the release and re-use of PSI for more social- economic benefits. Innovation in healthcare and elderly services incentivised by the ageing population Hong Kong has a world-class healthcare system, and has been providing a wide range of public services to the elderly population. These services will potentially be enhanced and transformed through innovative ICT solutions. For example, computer scientists around the world have been working with medical experts to study ageing-related diseases using advanced computational tools, and trying to develop innovative therapeutic approaches 31 . Substantial business opportunities and values will be captured from those innovative developments. As Hong Kongs population keeps ageing 32 , there will be increasing demand and incentives to innovative and enhance our healthcare and related elderly services. With further development in the ICT and other innovation-driven industries, Hong Kong may become an ideal testing ground and innovation hub for elderly service related solutions.
Threats Competition from other Asian and global economies Other cities and economies are of course very aware of the opportunities provided by ICT and technology trends and are seeking to establish their own digital leadership. Hong Kongs neighbouring economies have formulated strategies to leverage ICT to enhance competitive advantage in the new digital age. Countries like Australia, Singapore and Korea have formulated national ICT development strategies for 2015 and 2020. Of course ICT exploitation is not a zero sum game and Hong Kong is not necessarily disadvantaged if another city does well. The focus for Hong Kong is on fully seizing the opportunities offered by technology. Indeed in some ways being part of a vibrant region with many competing economies and cities can be a spur to Hong Kongs continued development. But in some areas - such as the ICT industry and attracting international companies to locate their headquarters in Hong Kong there is competition with neighbouring cities and economies and Hong Kong will need to ensure that is it at least keeping up with or ideally in a leadership position compared to other centres. Effective exploitation of ICT and technology, and the presence of a vital ICT services sector are vital elements in this. Uncertainties in the global economic outlook Economies around the work felt different levels of impact from the Global Financial Crisis and are recovering at different speeds. Many of the mature markets have been hit harder and are recovering more
31 Reference: Ageing Research Review, Next-generation sequencing in aging research: emerging applications, problems, pitfalls and possible solutions 2010. 32 Reference: Hong Kong Population Projections 2007-2036 released by the HKSAR Government, http://www.info.gov.hk/gia/general/200707/16/P200707160137.htm Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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slowly and this has an impact on the global ICT market and its growth. Major ICT markets in the world have felt the impact of global economic uncertainty 33 and market demand for local ICT companies is potentially under pressure as global economic growth slows. On the other hand Hong Kong, being part of China, has benefited with a higher growth rate than most leading economies 34 , and many global companies are refocusing investments even more strongly on growth markets in general and China in particular in order to try to capture the growth here. Risk of digital divide for those without ICT access There is a potential risk that the underprivileged groups will be further disadvantaged by having limited access to ICT and the life benefits it brings. For example people with some types of disability may find it hard to access technology unless proper provision is made in products and services to allow them to do so. Families with low incomes may find it hard, without help, to gain access to ICT and the opportunities it brings and this can re-enforce the problem of low income - and indeed pass it to the next generation. Todays elderly people, who grew up at a time when many of todays technologies were not available, tend to be less familiar with ICT and possess fewer skills, making it hard to digitally engage the current and future elderly population which will make up an increasing percentage of the population. 35 According to international experience 36 it is often the case that those citizens who are digitally excluded are also more likely to be financially and socially disadvantaged. Unless the digital divide is bridged, the benefits of achieving Hong Kongs ICT vision will not be shared among all groups within the community.
5.3 SWOT anal ysis conclusion Over the years, Hong Kong has established itself as a world-class digital city with an advanced ICT infrastructure and a strong political and legal environment that benefit both businesses and citizens. Although Hong Kong is faced with a relatively small domestic market and fierce competition from other Asian and global economies, the strong relationship that Hong Kong has with both the Mainland and the rest of the world, in addition to its favourable economic environment to act as a strong regional business hub, also gives it a strategic advantage that few other cities possess. For a city to sustain prosperity however, Hong Kong needs to continue to reinvent itself by building on its strengths while exploiting the opportunities presented. Technology, having evolved greatly over the years, can be the enabler for Hong Kong to maintain its leadership. While technology used to be for back office operations, the advancement in technology has allowed it to move out of ICT departments and become interwoven into
33 Reference: International Monetary Fund, April 2013 World Economic Outlook (WEO). 34 Reference: IDC, China ICT Spending 2012 2016 Forecast and Analysis. 35 Reference: HKSAR Government, Hong Kong Population Projections 2007-2036, http://www.info.gov.hk/gia/general/200707/16/P200707160137.htm 36 Reference: The Chartered Institute of Taxation (UK), Digital Exclusion. 2012. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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governments' citizen-centric e-services, businesses' innovative solutions and citizens' daily lives. It is therefore important to articulate where Hong Kong wishes to be and how technology could be utilised to achieve this vision. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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6. Vision Smarter Hong Kong, Smarter Living
6.1 Articulating the vision We envision Hong Kong to be a modern world smarter city where technology helps improve quality of life by enabling: Citizens and visitors to be more engaged with and understood by businesses and government agencies through intelligent and interconnected touch points Businesses to be more innovative in anticipating changing customer needs; and growing and expanding beyond Hong Kong borders both physically and digitally Hong Kongs ICT industry to continue to be successful and reach new heights by exploiting both the technology possibilities and the opportunities on the Mainland the city to be more sustainable through smarter, interconnected infrastructure, from transportation to utility provisioning, and services the community to be more inclusive and prosperous through an open and collaborative digital ecosystem to enrich quality of life Hong Kong society to be more knowledge-based, with real-time access to knowledge and information anytime, anywhere. Technology can facilitate better communication and great collaboration between and among Hong Kongs citizens, businesses and government departments and should be a means of support and assistance to persons with disabilities in our society. From an external perspective, our vision is that Hong Kong would be globally recognised as one of the leading world digital cities, with the same level of acknowledgement as a global financial centre and trading hub. Its international image should be vibrant, exciting, and innovative yet still always retain its special character based on its unique heritage, culture and values. Furthermore, Hong Kong would be seen as a role model or benchmark by other leading cities both on the Mainland and globally. To realise the vision, a set of missions / goals are proposed as follows: To leverage ICT to benefit the community, and empower every citizen with enhanced everyday lives To unleash the power of innovation in Hong Kong, and translate innovative ideas into business success To develop and foster a sustainable and vibrant ICT industry to fuel the future economic growth of Hong Kong To leverage the latest technology developments to transform Government and public service operations that will fulfil future needs and expectations from citizens. The strategic elements of the vision and missions / goals mentioned above will require a series of coordinated programmes and initiatives to realise the results and benefits. They will cover different levels of stakeholders and groups the citizens and individuals (including as education, digital literacy and identity, etc.), businesses and industries (including as ICT startups, small and medium-sized businesses, cross- borderer business, etc.), as well as the Government and the city as a whole (including Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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pubic services integration, ICT infrastructure, etc.). By investing resources in each area and successfully executing the respective plans, Hong Kong will be able to realise the anticipated impacts, which are discussed in the section below.
6.2 Anticipated impacts Under the new vision, we expect there to be a significant impact on the constituents of Hong Kong as stated below: For the Community, the achievement of the vision would mean more convenience for the public, and making citizens lives easier and smarter. Most public services would be available on mobile devices for online access anywhere and anytime. The services will be highly targeted, personalised and fully integrated to give richer user experiences and maximum convenience. Citizens would also engage with the Government online with social technologies. For private sector services such as online banking or online retail shopping, for example, the mobile online customer experience would not only be a convenient alternative to other channels but will increasingly provide a richer more rewarding and comprehensive customer experience often more than what is possible by physically visiting a branch or shop. For the business community, the smarter city would be able to build the necessary infrastructure (e.g. fast ubiquitous high bandwidth access, extensive choice of ICT services and platforms, e-cheque, e-payment) thereby generating operational efficiencies and cost savings for businesses. In addition, through the broad promotion and adoption of e-commerce, businesses will further enhance their capabilities in reaching to their customers more effectively and more broadly crossing the border beyond Hong Kong and Greater China. Besides, many e-enabled services would be fostered to achieve service excellence and further enhance our position as one of the most advanced service economies in the world. For the ICT Industry, the smarter city is expected to drive further development of the ICT industry, expanding the opportunities available. By becoming a role model in exploiting technologies Hong Kong will provide unique opportunities to the lCT industry locally and also provide a great reference point for local companies as they expand. ICT companies will benefit from easier access to the regional and international markets. Hong Kong will provide the eco-system to support the development of ICT startups and also the more mature services and environment needed to encourage the development of City ICT champions recognised as leaders in their fields both regionally and globally. The presence of such companies will reinforce Hong Kongs leadership position, and also inspire more young people to consider a career in ICT. For the Government, the enhanced e-enabled public services built on insight gained from big data and advanced analytics (e.g. data from 1823) will allow civil servants to respond more effectively to citizens by offering more personalised and targeted services. In particular, civil servants would be able to provide more face-to-face time in consulting and helping citizens directly rather than spending time on administrative matters. By providing common platforms to support government service both face to face and on line Government will be able to provide more integrated and tailored services and also do so more efficiently thus releasing resources to address new needs. In turn, public services will be able to achieve high customer satisfaction. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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This then is the proposed vision for Smarter Hong Kong, Smarter Living and in the next section we go on to recommend how Hong Kong should achieve this vision through a series of strategic programmes or thrusts.
Examples of how the truly smarter city can make a difference: Public e-services will be more interactive in nature and the additional benefit that the Digital ID will allow is a more convenient and integrated experience. General citizen will be able to get access to most public e-services on a one-stop digital platform. For example, mothers with newborn babies will usually have many interactions with various government agencies such as to sign and retrieve birth certificates, arrange medical appointments, retrieve personal medical records, order prescription medicines etc. With the advent of more integrated public services and digital identities and signatures, all of these activities could be completed by the mother online from her the comfort of her home while looking after her baby.
General citizen I am usually out of town so I rely on the Internet for public services. I am now amazed by what can be done online, and the convenience and ease of use. With a digital ID, I can apply for my driving licence, renew my passport, register my marriage and retrieve my medical records from hospitals. I have found many interesting and useful apps with public data. When I drive, I receive real-time information to pick the fastest route without traffic jam. I go to restaurants with good hygiene rating, as there are apps that make use of inspection records. I also know when not to exercise outdoor due to the availability of accurate air quality data. Everything now becomes really convenient.
Young mother with a newborn baby
I am a young mother with a two-month-old son. I need to constantly look after my baby and take care of his needs. Living in a truly smarter city allows me to set up medical appointments and complete the public services online, while looking after my baby in the comfort of our home!
For students, the new vision would deliver a completely new revolutionary e- learning experience. Fully e-enabled classrooms and schools will allow students to have truly personalised education for all subjects, allowing immediate multi-media connectivity to other students in other classes and other schools for collaboration projects for example. Technology will move out of the computer laboratory and ICT education to become an important medium for all education integrated with the essential role of teachers. These developments will be revolutionary for the teacher also, who will be freed from the more mundane routine tasks (e.g. marking homework) to devote more quality learning time directly with students. E-learning will not replace the classroom, but rather make classroom time more effective, Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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efficient and valuable.
University student I am a first year university student. I want to learn more from my biology courses and always need to work with my classmates on a number of class projects. The digital learning platform provides me a truly personalised learning experience and allows me to collaborate better with my classmates, all online! This technology is so cool I am now thinking about a career in technology there are many technology companies I would be proud to work for.
For the elderly, Government will be able to provide the option of receiving services remotely, rather than queuing up in hospital outpatient clinics. For example. The increasingly digitally enabled healthcare facilities allow citizens to perform health checks themselves or to have vital signs monitored remotely. Visiting healthcare workers can access health records from the citizens home to perform medical procedures.
Elderly citizen
I am 72 years old and have lived in this city since I was born. In this smarter city, I can now request most of the public services online without queuing up in Government office for hours! I no longer need to keep my medical records myself, because today I can easily access these records through the Internet!
For persons with disabilities, the smarter city would ensure that technology was implemented in way that enables everyone to access the benefits and would also exploit technology to provide targeted help. For example map applications could provide guidance on wheelchair access routes to buildings, or best routes between two points in the city for example.
Person with disabilities
I have been using wheelchairs since I was six years old. Living in this smarter city, my mobile device helps me to find the most updated wheelchair access routes wherever I want to go, allowing me to travel conveniently in the city. Through my mobile devices, I can connect to the Internet and request for any necessary public services anytime and anyplace! Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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For people working from home / in mobile office, excellent network infrastructure that allows 24x7 high bandwidth and reliable Internet connection is required. Innovative software that help manage diary, arrange meetings, share work products and facilitate collaboration will also be important. They will enjoy more work flexibility and potentially benefit from reduced rent and travel cost.
Telecommuter I am a freelance designer working from home. I work with designers all over the world on online collaboration space, and I present my work pieces to clients using video conference. Sometimes I work in a coffee shop or on the road. The excellent mobile Internet network and easy-to-use cloud-based applications make my work much more convenient and efficient!
For the business persons, the smarter city could help them expand into new markets, generate more revenue, streamline operations, acquire and retain talents, and embrace corporate social responsibilities. For example, e-cheque payments can enhance operational efficiencies and lead to cost savings; mobile apps and digital media could benefit sales and marketing; more automation can cut down consumption of energy, paper, etc.
ICT startup I have started my technology business in this city. I want to grow my business faster and invest more time to explore new business opportunities. In this smarter city, I can easily access pertinent startup information like the availability of mentorship, network with other startups and access to angel funding. I can also process cheque payments from my customers all online, which improves my companys operational efficiency and allows me to focus on growing my core business!
General businessman I have been running my company in Hong Kong for thirty years. I want to expand my customer base beyond Hong Kong to different parts of the world. My products will reach the younger generation the gen X and Y, the young adults and kids. My staff will become more collaborative and productive. Based in this smarter city, my products are now marketed and sold over the world using the best e- commerce platforms with excellent mobile apps. I hire the most talented digital media experts to rejuvenate my company brand image. Now all young adults and Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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teenagers love my products. My product design teams all work collaboratively with digital tools. They all enjoy their work and love their jobs! ICT business owner I have lots of great ideas, but I need funding to develop them into products. I am also searching for talents for my R&D and sales teams for my China business. In this smarter city, I can access to a rich network of investors, researchers and patent experts who offer me business support. With the investments and capital needed, I can select and hire the best people from an abundance of ICT talents from universities. They are eager to work with my business partners in the Mainland to explore the market. With these people, my business definitely has a bright future.
For the visitor to Hong Kong, the smarter city offers a seamless hi-tech experience from the moment of entering Hong Kong up to the point of departure. Frequent visitors receive personalised and contextualised mobile messages suggesting special arrangements and bookings at favourite restaurants, or offering to reserve seats at particular shows for artists that the visitor likes, or proposing particular tourist attractions to suit the individual, and so forth. The world smarter city makes the visitor feel immediately welcome and offers tremendous convenience and free added value to whole visitor experience which will encourage the visitor to recommend Hong Kong to friends and family.
Visitor I can travel around Hong Kong with 24x7 Internet connections. Its amazing! Internet is everywhere in the city, and I can navigate the city effortlessly! With all these apps available for my smartphone and tablet, I dont even need a guidebook or tour guide in Hong Kong!
For the civil servant, the enhanced e-Government applications provide her with the information she needs to understand and respond to the publics needs, and allows her to spend more time helping citizens directly rather than spending time on administrative matters, thereby creating greater job satisfaction and sense of worth to the community she strives to serve.
Civil servant I am a civil servant and my job is to serve the Hong Kong community. Government is a complex organisation with many services and sometimes it can be hard to find out what information we have and what services are available. Now with our mobile apps it becomes much easier to access information about our citizens and about Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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the services that may be relevant to them. Other than serving the people directly, I also need to spend time to handle various administrative matters. Thanks to the enhanced e-Government applications, I can spend more time helping citizens directly and work with greater efficiency! I am happy to see that I am making a better community!
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7. Strategic thrusts to achieve Smarter Hong Kong, Smarter Living 7.1 Overview
Figure 18 Formulation of vision and strategic thrusts
To achieve this vision, we recommend a comprehensive programme of initiatives that can be grouped under four strategic thrusts: Empowering everyone through technology Igniting business innovation through exploitation of technology Supporting a thriving Hong Kong ICT industry and research and development Transforming and integrating public services through technology. Each of these four strategic thrusts is further explored in the following sections of this report.
Latest technology development Review of Hong Kongs current ICT strategy and development Strength Weakness Opportunity Threats Vision Smarter Hong Kong, Smarter Living Empowering everyone through technology Igniting business innovation through exploitation of technology Supporting a thriving Hong Kong ICT industry and R&D Transforming and integrating public services through technology Review & Trends (chapter 3 & 4) SWOT analysis (chapter 5) Strategic Thrusts (chapter 7) Vision (chapter 6) Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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7.2 Empowering everyone through technology ICT now plays such an important part in every aspect of life education, work, leisure, entertainment, culture, arts, business and public services that citizens can more readily reach their full potential only when they have the confidence, literacy and basic skills to access and use technology. In order to achieve the vision, it is vital to ensure that everyone has these basic capabilities to operate and live in an ICT-rich environment. This does not mean that everyone has to have deep ICT knowledge / skills, such as sophisticated programming. Rather, it is about how we appreciate and are at ease in using ICT e.g. accessing the Internet on a smartphone, playing a game on a tablet, conducting digital commerce personal / business transactions in an omni-channel manner. This strategic thrust also drives the availability of high bandwidth Internet access through wired, mobile and/or other wireless mechanisms throughout all the main areas of the city. While the primary focus of the vision outlined in this report is the people of Hong Kong, there is also an opportunity to significantly improve the experience of people visiting Hong Kong whether for business, tourism or visiting friends and family. This has the potential not only to enhance and elevate Hong Kongs image but also to contribute to our economy and tourism industry. For example, we should make it economical and convenient for visitors to become connected and stay online as soon as they arrive by airplane, boat, train or other private and commercial vehicles. Another example enabled by a more pervasive and sustained online connectivity is the potential to push value-added advice / information to visitors (depending on who they are and where they are) so that they can enjoy a more guided exploration of Hong Kong and its many attractions. One important concern is to include and enable the participation of all groups in this new digital environment also specifically considering the elderly, persons with disabilities, those with less / limited financial means, etc. It is also important to look at the possibilities for technology to improve the quality of life for persons with disabilities for example better facilitate persons with disabilities to find and make their way around the city. To support the realisation of this thrust, key initiatives include: Providing every citizen with a free and universal Hong Kong Digital ID enables convenient and secure use of a much broader range of smarter city e- services (that are more personalised and richer in function) to process everyday transactions (e.g. e-chequing) Facilitating access to technology and broadband aims to remove the barriers that may prevent citizens from enjoying the full benefit of living in one of the leading digital cities in the world Boosting education by enabling e-learning for the whole curriculum in every classroom through high bandwidth access for all schools truly revolutionises the experience and quality of learning for students in Hong Kong by allowing multimedia and interactive education with online access to relevant multi-lingual courses, teaching materials, test evaluations and other e-learning tools; and liberates teaching professionals to devote more focused attention on individual students to drive enhanced learning outcomes Including elements of programming in every childs education programme to inculcate a generic logical mindset and a proclivity to look to ICT for Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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solutions provides an exciting new way to help our children to become familiar with harnessing the immense power of technology, to personally develop creative solutions to everyday problems and to be trained in structured and logical thinking Providing visitors and citizens with targeted information enriches the engagement of visitors and citizens via advanced, personalised and multi-media online experiences; and maximises visitors and citizens enjoyment and convenience.
7.3 Igniting business innovation through exploitation of technology In recent years, some of the most exciting and influential business developments have arisen, not from dramatically new technological inventions, but from inspired new ideas about how to exploit technology. Google, Facebook, Wikipedia, Amazon and Alibaba are all excellent examples of organisations that have driven inspirational technology exploitation resulting in revolutionary personal, social, industry and business changes throughout the world. Innovative ideas are conceptual and ethereal, rather than physical, in nature. This strategic thrust strives to establish new ways to ignite, nurture and protect such innovative ideas and to create new collaborative environments where these ideas can be shared, exchanged and further developed into potential business innovations with meaningful economic value for Hong Kong. The variety and volume of business innovations can be further strengthened by opening up all public sector information (PSI) for use by ICT-savvy entrepreneurs. For example, experience in the US has shown how broad PSI sharing could electrify public interest and excitement in the development of new mobile apps which make innovative use of this information. To support the realisation of this thrust, key initiatives include: Establishing innovation and collaboration platforms to accelerate innovative business applications of technology to boost Hong Kongs competitive edge fosters creative and innovative communities to drive vibrant exchange of ideas leading to the development of exciting and valuable new ICT-enabled business models / solutions Promoting cloud platforms and knowledge sharing for small and medium enterprises to help them succeed through increased leveraging of technology seeks new ways to stimulate SMEs to increase practical use of new technologies in order to boost productivity, to achieve greater business success and to expand employment opportunities for the community Accelerating innovation by making all public sector information available for use by private and other non-government sectors unlocks the hidden treasure trove of PSI datasets for free use by ICT-savvy entrepreneurs, enabling them to create innovative new applications (with an emphasis on the mobile variety) for use in Hong Kong and, where proven successful here, potentially for the international market.
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7.4 Supporting a thriving Hong Kong ICT industry and research and development As outlined in the SWOT analysis, Hong Kongs open and transparent governmental framework and excellent ICT infrastructure make Hong Kong a fertile ground for ICT entrepreneurs to grow their innovative ideas into thriving ICT business startups. The unique advantages of close proximity to Mainland China coupled with Hong Kongs longstanding tradition as an important regional business hub can help shape a relatively unique flavour to Hong Kongs emerging ICT industry. This strategic thrust addresses the challenges of how to grow a unique ICT industry in Hong Kong. A thriving ICT industry is a necessary cornerstone for the new digital economy. It helps to translate innovation and research into business opportunities and economic value. The attraction and retention of the right number, variety and quality of ICT talent is a critical first component to this proposition. In association with the innovative environment mentioned in the previous strategic thrust, the right quantum of human capital and talent will provide the intellectual engine required to drive the ICT industry and ultimately help to create ICT champions in Hong Kong. Although we recognise that Hong Kong has a small domestic market, the opportunities arising from collaboration Mainland are manifold especially for Research and Development (R&D). Meanwhile the prevalence of design talent and the extraordinary mobile penetration in Hong Kong suggests that the unique flavour of the Hong Kong ICT industry could help establish Hong Kong as a Mobile Centre of Excellence and a Digital Media Centre of Excellence. One measure of success for Hong Kong will be any measurable increase in the number of business startups at the intersection of business and technology and the emergence of potential ICT champions, amidst a competitive marketplace for talent and ideas. To support the realisation of this thrust, key initiatives include: Supporting the evolving ecosystem to groom technology startups creates the culture and environment to bring together all the necessary ingredients for successful growth of new start-ups at the intersection of business and technology to foster the emergence of Hong Kong ICT champions Growing top talent in ICT and business technology application puts in place the right professional frameworks and provides more focused training in collaboration with ICT industry leaders for the mutual advantage of prospective employers and employees alike Establishing Hong Kong as a Centre of Excellence for Multi-Platform Apps actively facilitates and encourages more business opportunities, events and competitions for multi-platform solutions Continuing to develop a Cloud Computing and Data Centre Hub tries more effective promotion methods for cloud computing and data centre provisioning Exploiting convergence to combine Hong Kongs strengths in the media, creative and technology industries to make the city a Centre of Excellence in Digital Media builds a collaborative and innovative platform for professionals, amateurs and regular citizens to innovate, co-create and distribute new content through the latest digital media Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Continuing to leverage Hong Kongs unique position by enabling ICT businesses to access Mainland opportunities seizes full advantage of the physical and cultural proximity to expand the market for highly-prized solutions and services derived from Hong Kongs business acumen and technological innovation into the Mainland.
7.5 Transforming and integrating public services through technology Over the last decade, e-Government services have evolved from the online provision of static historical public information to a more citizen-centric interactive multi-media two- way customer experience for both citizens and businesses. New and emerging technologies are exponentially expanding governments capacity to provide next generation public services. This strategic thrust seeks to build upon the Hong Kong Governments achievements in evolving its services and interaction relationships with the community. Mobile technologies, in particular, offer a transformational channel for more personalised anytime and anywhere services. With one of the highest mobile penetration rates in the world, Hong Kong is ideally placed to take the next step from e-Government to mobile government, fundamentally transforming the delivery and coverage of public services. The key benefit is that mobile government offers a better, more convenient, more integrated and wider range of services which can be highly personalised and location- sensitive. Through the shift from e-Government to mobile government and a continued acceleration of mobile penetration, there is an expectation that public services should be mobile as a default. At the same time, the Smarter City provides an explosion in volumes of real-time data through intelligent sensors which offer valuable real-time multi-media location-sensitive information that can be instantly communicated to citizens through their mobile devices. To support the realisation of this thrust, key initiatives include: Delivering mobile government to citizens and businesses at their fingertips easy access anywhere, anytime makes multi-platform the default channels of choice for online e-services to increase service quality, to delight and to increase productivity of the worlds number-one mobile community Integrating and targeting services tailoring to individual needs designs and delivers more personalised e-services tailored to match individual needs and personal requirements to provide the type of service excellence and operational efficiency for citizens and businesses in Hong Kong Establishing a Smarter City infrastructure through further digitisation and Internet of Things and utilise Big Data to manage the thriving and growing city expands the coverage of sensory and other intelligent devices and further exploit other digitisation technologies throughout the smarter city then synthesise and analyse the mass of resulting data to produce insights and solutions for the benefit of the community as a whole.
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8. Programmes in support of the strategic thrusts 8.1 Programmes In order to realise the strategic thrusts suggested above, we have proposed a series of connected initiatives. The following table summarises the initiatives and the associated areas of actions against each strategic thrust. Details of each initiative and the associated actions are documented in detail in Chapter 8.2 for further reference.
Thrust #1: Empowering everyone through technology Initiatives Potential areas of actions 1. Providing every citizen with a free and universal Hong Kong Digital ID (a.) Make Digital ID freely available and more convenient to use for all citizens (b.) Continue the growth in development of e- Government using Digital ID (c.) Work with banks to launch e-cheque 2. Facilitating access to technology and broadband (a.) Encourage and facilitate ICT adoption for persons with disabilities (b.) Further promote web accessibility to the community (c.) Encourage more leverage of mobile technology in digital inclusion programmes (d.) Facilitate internet access through Wi-Fi hotspots 3. Boosting education by enabling e-learning for the whole curriculum in every classroom through high bandwidth access for all schools (a.) High bandwidth broadband access to all schools and all classrooms (b.) Equipping every classroom with the required technology for teachers and students to access and participate in interactive on-line learning (c.) Support and training for teachers to enable them to make most effective use of this radically different learning and teaching environment (d.) Encourage high-quality online education for students 4. Including elements of programming in every childs education programme to inculcate a generic logical mindset and a proclivity to look to ICT for solutions (a.) Promote the benefits of programming education (b.) Strengthen programming learning for children (c.) Support teachers in teaching programming 5. Providing visitors and citizens with targeted information (a.) Facilitate more mobile applications for visitors and citizens leveraging Wi-Fi services Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Thrust #2: Igniting business innovation through exploitation of technology Initiatives Potential areas of actions 1. Establishing innovation and collaboration platforms to accelerate innovative business applications of technology to boost Hong Kongs competitive edge (a.) Strengthen technology transfer from universities (b.) Drive business excellence with a broader definition of innovation 2. Promoting cloud platforms and knowledge sharing for small and medium enterprises to help them succeed through increased leveraging of technology (a.) Promote SME cloud platform (b.) Encourage collaborative information sharing on business and technology innovation for SMEs 3. Accelerating innovation by making all public sector information available for use by private and other non- government sectors (a.) Make PSI electronically available in machine readable formats for easy re-use as default (b.) Encourage other public organisations to release PSI (c.) Prioritise the provision of PSI for high value- added services
Thrust #3: Supporting a thriving Hong Kong ICT industry and research and development Initiatives Potential areas of actions 1. Supporting the evolving ecosystem to groom technology startups (a.) Build a digital platform for technology startups (b.) Facilitate startups to foster entrepreneurial culture and encourage cross-fertilisations of ideas 2. Growing top talent in ICT and business technology application (a.) Develop ICT professional recognition framework (b.) Enhance training with industry collaboration (c.) Enhance ICT professional image 3. Establishing Hong Kong as a Centre of Excellence for Multi- Platform Apps (a.) Provide incentives to drive multi-platform solution development for the underprivileged groups (b.) Facilitate experience sharing and publicise success cases (c.) Explore and facilitate multi-platform business Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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solutions for transactions and payments 4. Continuing to develop a Cloud Computing and Data Centre Hub (a.) Promote Hong Kong as a prime location for data centres (b.) Develop and promote cloud computing standards, best practices and guidelines for service consumers and providers (c.) Lead by example in adopting cloud services across the Government 5. Exploiting convergence to combine Hong Kongs strengths in the media, creative and technology industries to make the city a Centre of Excellence in Digital Media (a.) Enable connections and collaboration between media content providers with ICT companies to create a cluster of digital media companies (b.) Facilitate experience sharing and publicise success cases 6. Continuing to leverage Hong Kongs unique position by enabling ICT businesses to access Mainland opportunities (a.) Continue to facilitate industry collaboration across the boundary (b.) Facilitate more concerted effort in marketing and promotion of Hong Kongs ICT industry
Thrust #4: Transforming and integrating public services through technology Initiatives Potential areas of actions 1. Delivering mobile government to citizens and businesses at their fingertips easy access anywhere, anytime (a.) Create multi-platform solutions for existing public services across all Government departments, where possible (b.) Make multi-platform by default for future e- Government services across all Government departments 2. Integrating and targeting services tailoring to individual needs (a.) Develop and promote more integrated solutions for e-Government services (b.) Encourage the use of the Government Cloud Platform (GovCloud) and shared services by all Government departments 3. Establishing a Smarter City infrastructure through further digitisation and Internet of Things (a.) Promote the deployment of sensing or IoT devices (b.) Encourage data sharing between Government departments Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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and utilise Big Data to manage the thriving and growing city (c.) Explore and encourage further productive use of ICT (d.) Promulgate standards, approach and guidelines for Big Data across Government departments
8.2 Empowering everyone through technology Technology now plays such an important part in every aspect of life. Everyone should have the basic access, confidence and literacy in technology to improve their quality of life. The Smarter Hong Kong, Smarter Living strategy would continue to address the challenges that some groups may find it harder to fully participate in this digital environment, e.g. elderly people, persons with disabilities, and people with less means. Our children should be well equipped in schools to make the best of technology in their everyday lives and future careers. While the Hong Kong population is the primary focus, there is also an opportunity to significantly improve the experience of people visiting Hong Kong whether for business or leisure travel. Within the programme supporting this strategic thrust, the key initiatives that offer new and exciting opportunities include: Providing every citizen with a free and universal Hong Kong Digital ID Facilitating access to technology and broadband Boosting education by enabling e-learning for the whole curriculum in every classroom through high bandwidth access for all schools Including elements of programming in every childs education programme to inculcate a generic logical mindset and a proclivity to look to ICT for solutions Providing visitors and citizens targeted information
8.2.1. Providing every citizen with a free and universal Hong Kong Digital ID Current position in Hong Kong Digital ID can be positioned as a secure and convenient tool to use various e-services. The Hong Kong citizens and businesses increasingly use e-services in their everyday life, as evidenced by their usage of e-commerce and e-Government. For instance, the number of e-banking accounts in Hong Kong has been growing, in which the numbers of accounts of individuals and businesses reaching 8.40 million and 0.76 million respectively in 2012 37 . A leading Mainland business-to-consumer e-commerce website
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reported 1.4 million registered users from Hong Kong in 2013. 38 Also, the e- Government usage is on a steady increase, reaching 12,900 million times in 2012. 39
With increasing e-services, it is an opportune time to review the need for a unique and unified Digital ID trusted by community, businesses and the Government to conduct e- Government and e-commerce activities amid the increasing security exposure on the Internet.
Figure 19 e-Banking accounts of individual and companies
Reference: Figures from Hong Kong Monetary Authority
Under the Electronic Transactions Ordinance, Hong Kong has such recognised Digital ID already, namely digital certificates for individuals and organisations to perform legally binding online transactions where confidentiality and integrity of data,
38 Reference: South China Morning Post, Alibaba celebrates 1.2 million users on Taobao in Hong Kong, 11 December, 2012. 39 Reference: Figures from internal surveys done by OGCIO 1.6 2.2 2.8 3.3 3.8 4.9 5.7 6.2 7.0 7.6 8.4 0.76 0.66 0.57 0.59 0.53 0.45 0.37 0.31 0.27 0.18 0.12 0 2 4 6 8 10 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Corporate e-Banki ng accounts Indi vi dual e-Banki ng accounts Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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authentication of genuine users and non-repudiation of completed transactions have to be safeguarded. However the adoption of digital certificates by the general public has not been highly popular. The active digital certificate users (individual) were 63,000 in 2012 40 , while the e-banking accounts of individuals were as mentioned earlier 8.40 million in 2012. The adoption of digital certificates by the general public has not been highly popular principally because of the absence of killer apps that require the use of digital certificate. Therefore, there has been little perceived benefit to date. Availability of such killer apps, coupled with greater convenience in registering, renewing and paying, and usage for the digital certificate, will provide the necessary impetus to spur the wide adoption of e-Identity in Hong Kong.
Potential and new possibilities We envision a set of Digital ID that every citizen can voluntarily use to authenticate most public and private sector e- services. Digital ID can enable a wide range of possibilities of e-services, and the use of a single Digital ID will simplify complexities. The e-cheque and future health services set out below are just two examples of the many e-services that would be frequently used and require high security. e-cheque, empowered by Digital ID, can bring Hong Kong at the forefront of the world in terms of e-services innovation. According to HKMA, a total of 110 million paper cheques were issued in 2011 41 . If e-cheque is widely adopted, both the banks and the businesses can save a lot of manual reconciliation effort in issuing and redeeming paper cheques. Meanwhile, citizens can save visits to bank branches and instantly redeem e- cheque during even in non-office hours. Digital ID is beyond another set of secure and convenient account for e- services. It is a powerful tool to bring out innovation and possibilities that future e- services providers can offer. Like the provision of free Hong Kong Identity (HKID) card for physical
40 Reference: Figures provided by the recognised certification authorities. 41 Reference: Hong Kong Monetary Authority A New Era for Retail Payment: Building a Diversified Platform for Mobile, Internet-based and Electronic Payments International experience and benefits For Estonia, the countrys Digital ID has become an increasingly important part of the citizens everyday lives as they utilise various e-services. Their Digital ID can be used to authenticate identity and render a digital signature. Estonian citizens and permanent residents are legally obliged to possess the Digital ID from the age of 15 and around 1.2 million digital identity cards have been issued so far. In 2011, around 3 million online authentication and 2 million online signatures were recorded. The Digital ID can be in form of national ID card (similar to the smart identity card in Hong Kong), Digi-ID (a smart card) and mobile ID card (a SIM card to be placed in mobile device), and has been used in many e- services where ID verification is needed, such as e-Tax, e-Banking, e-Heath Records, e-Tickets, etc. International experience and benefits Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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identification and authentication, the Government can consider providing free Digital ID for every citizen for voluntary identification and authentication in the digital world to enjoy secure and user- friendly e-services. While Digital ID would be available for every adult, it is also possible that Digital ID will be granted to every child since childbirth, with the ID managed by parents or other authorised persons. This will facilitate the adoption and usage of Digital ID related services.
Recommendations We propose to provide every citizen with a free, convenient Digital ID. Here are the benefits: Important enabler for every member of the community to fully exploit and participate in the digital world in a secure and authenticated manner (e.g. e- commerce, citizen engagement, digital health record management, e-learning resources and online examination, students learning portfolio, etc.) Providing a digital tool or platform with the following characteristics non- repudiation, integrity, secure authentication, and confidentiality. Some of these characteristics are backed by the law Secure an integrated user experience in managing multiple e-services Shift community mindset from do I need a digital certificate to how can I make the most of my Digital ID Potential for private sector to adopt Digital ID to reduce costs and increase convenience since there is no need for issuing multiple log-in IDs and tokens for different organisations. Create an e-platform for engagement between the Government and citizens
Potential areas for action 1. Make Digital ID freely available and more convenient to use for all citizens Short term The Government should consider bundling the Smart ID card and Digital ID (digital certificate) for free. The inclusion of Digital ID with the identity card should be voluntary. It should be noted Smart ID card is one of the optional vehicles to store the Digital ID. The Digital ID may reside in other devices, though its free provision comes more natural if it is bundled with Smart ID Card. In order to make the Digital ID more user-friendly, enhancing administrative measures can be considered. On top of the traditional Digital ID, Finland offers mobile Digital ID. Many e-services including e-Government service providers in Finland rely on mobile Digital ID. Three Finnish mobile operators launched mobile Digital ID in 2011 in full cooperation with the Finnish government. Mobile ID is convenient as the user only has to remember a personal identification number (PIN) code in order to use the mobile Digital ID without a card reader. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Long term As Immigration Department evaluates the launch of the next smart identity card project, the user-friendliness of Digital ID can be improved through the latest technology (e.g. contactless ID card). Meanwhile, a mobile Digital ID is worth exploring in the long term to further enhance the convenience of using Digital ID, since the mobile penetration rate is high (around 228.4%) in Hong Kong. The detailed implementation feasibility of mobile Digital ID should be reviewed based on the next smart identity card. 2. Continue the growth in development of e-Government using Digital ID The Government should continue to develop more e-Government services and particularly more targeted and integrated services, e.g. an e-Citizen account that could provide citizens with an easy and convenient access to many e-services. The e-Citizen account, subject to the citizens consent, can integrate all e-Government services into one portal and enable a seamless experience without prior set-up effort, e.g. vehicle and driving licence renewal, passport renewal, payment of Government and utilities bills, etc. Digital mailbox can also integrate with e-Citizen account for identifiable communication with the Government (and the private sector) and the storage of important personal documents (e.g. report cards, bill statements, etc.). Also, the e-Citizen account should ensure a good privacy data protection. For example, Belgium offers an e-Government service called My File which reveals to the authenticated citizen the government officials who have accessed their personal data over the last 6 months. 3. Work with banks to launch e-cheque Hong Kong Monetary Authority (HKMA) is working with banks to launch e-cheque and target to roll-out e-cheque by the end of 2014. The free Digital ID can be a convenient yet secure and non-repudiating means of signature. Therefore, the use of Digital ID for e-cheque and other financial services would be voluntary.
8.2.2. Facilitating access to technology and broadband Current position in Hong Kong Hong Kongs robust ICT infrastructure supports the world-leading mobile subscriber penetration rate (nearly 228.4 %) and broadband penetration rate (nearly 90%). The high penetration rates of mobile and broadband significantly contribute to the citys rapid ICT developments and strong economic growth for its pillar industries. At the same time, the Governments pro-competition approach to regulation continues to ensure fair competition and allows the market to drive telecommunication infrastructure coverage, prices, speed and content to best serve the public interest. The availability of immediate access to an advanced wireless digital network for the general population is a necessary prerequisite for the modern knowledge based society. To facilitate wireless broadband access for the general public in Government premises, the Government has launched GovWiFi to provide Wi-Fi access to the public at around 410 designated government premises which include public libraries, public enquiry service centres, sports venues, cultural and recreation centres, cooked food markets, job centres, community halls, major parks and government buildings and offices, as well as a number of major tourist attractions. 40 more premises have been added in 2013, plus an overall improvement in both speed and supported protocols. Meanwhile, commercial network operators are providing public Wi-Fi access at over 16,000 Wi-Fi Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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hotspots in the city, which can be found in convenience stores, buses and more than 1,000 telephone booths. MTR offers free Wi-Fi service at all MTR stations and some network operators also offer the same in public areas at over 150 public rental estates and about 30 shopping centres of the Housing Authority. The locations of GovWiFi premises and registered Wi-Fi access points are marked in Appendix E. While the ICT infrastructure for broader population is robust and affordable, digital inclusion remains an important topic for an ICT strategy for Hong Kong. Digital inclusion refers to the social inclusion that ensures individuals and persons with disabilities have access to, and skills to use ICT. The usage of computers among the elderly and persons with disabilities has shown signs of improvement since the last Digital 21 Strategy published in 2008 (as shown in figure 9). The Government has already been actively promoting the importance of having equal access to online information and services for all groups within the community through its own implementation, education and the recognition of best practices. The Web Accessibility Campaign promotes awareness and wider adoption of web accessibility design for adoption on public and private websites. Lastly, a comprehensive digital inclusion programme, from one-stop portal to assistive technology, has been launched to target a wide range of community members, e.g. the elderly, persons with disabilities, children in low income family, etc.
Potential and new possibilities The knowledge and usage of ICT by persons with disabilities may remain low compared with the mainstream community partly due to high cost of traditional computing devices and ease- of-use. The mobility and highly easy-to- use interface of smartphones and tablet computers opens up ample opportunities to facilitate wider ICT adoption among persons with disabilities. With mobile technology, the interfaces can be easily customised to facilitate reading and usage on-the-go, and the mobile technologies are more affordable than traditional devices.
Recommendations We propose that the Government should continue to facilitate ICT adoption for persons with disabilities and leverage more mobile technology in the digital inclusion programmes. The benefits include: Provide equal opportunities and e-services to every member of the society Bring economic, social, cultural and health benefits of ICT to all members of the community
Potential areas for action International experience and benefits Mobile accessibility applications for New York City (NYC) were designed to integrate geo-location and mapping technologies with transportation/POI (Point of Interest) accessibility data. The application looks up information about accessible public and private transportation and route and identifies accessible points of interest. Also, the mobile application can customise search criteria to filter accessibility information by personal needs and preferences, and allow the users to rate and comment about the accessibility of city systems and points of interest. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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1. Encourage and facilitate ICT adoption for persons with disabilities The Government should continue to implement measures to encourage and facilitate ICT adoption among persons with disabilities in order to enhance their quality of life and help them integrate within the knowledge-based society. 2. Further promote web accessibility to the community To sustain the momentum, the Government should continue with the current efforts on instilling awareness among current web designers and incentivising wider adoption on non- government websites. 3. Encourage more leverage of mobile technology in digital inclusion programmes The Government should support non-government organisations (NGOs) to design mobile applications for target digital inclusion segments. (Please also refer to the first area of action under Establishing Hong Kong as a Mobile Centre of Excellence. 4. Facilitate internet access through Wi-Fi hotspots The Government can work with the private sector in opening up more Wi-Fi hotspots for the convenience of the public. For example, the Office of the Communications Authority has issued guidance note 42 to facilitate public wireless service operators in the installation of their Wi-Fi equipment on Government facilities.
8.2.3. Boosting education by enabling e-learning for the whole curriculum in every classroom through high bandwidth access for all schools Current position in Hong Kong The Government launched a three-year Pilot Scheme on e-learning in 2011. A total of 61 primary, secondary and special schools participated in 21 research and development projects to explore how e-learning could be implemented in different school settings so as to cater for learner diversity and encourage students to conduct self-directed and life-long learning. In addition, the Government provides all public sector schools annually with a Composite IT Grant (CITG). The grant can be used in expenditure items related to IT in education, such as Internet service fee, upgrading and replacement of IT facilities (including wireless network facilities), and purchase of digital resources materials for learning. A one-off grant of $200 million was disbursed in 2008 for schools to replace and upgrade their IT facilities and another one-off grant of $50 million was given in 2011 for schools to purchase e-learning resources.
Figure 20 Distribution of school internet bandwidth
42 Reference: OFCA, Guidance Note for Submission of Application for Installing Micro-cell Base Station on Highway Facilities or on Unleased and Unallocated Government Land. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Reference: Figures from Education Bureau, 2013.
Figure 21 Distribution of school Wi-Fi coverage
Reference: Figures from Education Bureau, 2013. 24.6% 19.2% 12.1% 41.0% 1.7% 1.4% <30 Mbps 30 to <50 Mbps 50 to <100 Mbps 100 Mbps >100 to <1000 Mbps >1000 Mbps International experience and benefits By 2015, South Korea intends to deliver education to its citizens over computers through online training programmes and virtual learning environments. South Korea plans to transfer from the traditional paper textbooks to digital textbooks and allow students to leave their heavy backpacks and explore the world beyond the classroom. Wireless networks will enable the population to learn "wherever and whenever" they want, through Internet- Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential and new possibilities Technology now has the potential to transform the way that education is conceived and delivered. Technology enables various modes of learning to be chosen by teachers or students. For example, learning can occur with students interacting face to face, or learning can be made self-paced and occur anytime anywhere, and students can still engage in the exchange of ideas or information through new technologies. ICT enables teachers to work collaboratively, discuss ideas, and promote information much more effectively. On the other hand, the Internet is generating more content and delivering more data to users than ever before, and e-learning usually contains multimedia that would need a much demanding Internet bandwidth. This drives the need for more bandwidth and higher speed. Over time, technological advancement and the competitive telecommunications environment have lowered the cost of high speed Internet access, and schools should increase bandwidth connection in order to take advantage of web services like streaming video, interactive content, and teaching via video conferencing in an education environment. In effect technology has moved from the computer laboratory to being an integral part of leading edge education (e.g. real-time, interactive and visual multi-media e-learning tool) in every subject and classroom.
Recommendations We propose that Hong Kong launch a programme to radically expand the use of technology in schools so that interactive on-line learning becomes a major supplement to the core face to face education by teachers. The benefits include: More effective learning in all subjects Building students digital literacy and skills Opening students minds to the broad potential of technology beginning their journey to understanding how to combine business and technology for their later careers Building the IT literacy and skills of teachers so that they are in a better position to enthuse and educate their students and prepare them for life in a technology rich digital world.
Potential areas for action 1. High bandwidth broadband access to all schools and all classrooms The bandwidth should be capable of handling e-learning through Wi-Fi for access to connected television sets, PCs, tablet computers and laptops. Quality will be maintained and costs will be lowered by the government supporting an open- content marketplace. International experience and benefits In the US, schools are encouraged and recommended to improve their Internet speed over time. The State Educational Technology Directors Association (SETDA) recommends that every school should attain an external Internet connection of at least 100Mbps for 1,000 students / staff by 2014-2015 school year and at least 1Gbps for 1,000 students / staff by the 2017-2018 school year. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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multi-media, including good quality video streaming, for most students simultaneously 2. Equipping every classroom with the required technology for teachers and students to access and participate in interactive on-line learning Every classroom should be set up in a way that students can collaborate and contribute to each other and teachers can easily facilitate the students in the process of collaboration. 3. Support and training for teachers to enable them to make most effective use of this radically different learning and teaching environment More technical assistance for teachers and training on using the classroom ICT infrastructure and e-learning should be in place to enable teachers to focus on the new mode of teaching. 4. Encourage high-quality online education for students Education providers are encouraged to leverage ICT to enhance the quality and effectiveness of teaching and learning at their institutions. We witness the rapid emergence of massive open online course (MOOC) in the past decade. It is opportune to consider how Hong Kong can leverage on the use of MOOC to enhance the quality and effectiveness of teaching and learning in post-secondary institutions.
8.2.4. Including elements of programming in every childs education programme to inculcate a generic logical mindset and a proclivi ty to look to ICT for solution Current position in Hong Kong ICT education in Hong Kong consists of Computer Literacy targeting secondary 1 3 and ICT curriculum targeting secondary 4 - 6. At primary level, modular Computer Awareness Programmes are developed where schools may allocate special periods and/or integrate them into appropriate learning areas. Currently, programming is embedded into ICT education. For primary schools, one out of the eight modules in Computer Awareness Programme covers basic programming to teach students to draw simple shapes. For secondary 1 - 3 students, 17% of Computer Literacy curriculum covers programming on LOGO 43 to perform arithmetic operations and manipulate text and sound. For secondary 4 -6 students, the ICT curriculum compulsory part occupies 145 hours, of which 20 hours (or 14%) is Basic Programming Concept covering problem-solving procedures, algorithm design and algorithm testing. Another 75 hours of Software Development is an elective part where students can choose for in-depth study. According to the 2012 Hong Kong Diploma of Secondary Education (HKDSE) examination, around 8,000 students (or 11% of total HKDSE students) took the examination for ICT curriculum. For other non-core subjects like Economics, Physics,
43 LOGO is a programming language commonly used to teach students the basics of programming. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Biology and Chemistry, each subject was taken by over 22% 44 . For ICT curriculum, only 15% students chose Software Development as elective part (as shown below).
Figure 22 Percentage of HKDSE students taking ICT Curriculum and elective parts
Reference: Hong Kong Examinations and Assessment Authority (HKEAA), 2012 HKDSE Entry Statistics
The above statistics may suggest that Hong Kong secondary 4 - 6 students may have a lower degree of interest in choosing ICT and programming. Even among students taking ICT, more students have Multimedia Production and Web Site Development as an elective over Software Development. This is an interesting contrast that most digital native 45 students do not choose to study ICT curriculum over other subjects like the Science subjects at secondary 4-6. The phenomena may somehow be related to the subject/modules offered by schools as well as career aspirations and pathways.
Potential and new possibilities According to the Education Bureau, use of ICT for learning and teaching is common, especially at primary level. In addition, from information gathered at the review study for the Third IT in Education Strategy, adoption of innovative pedagogical practices using technologies are emerging but remain on trial basis. Furthermore, while students are well versed in using ICT to manage information, they may not fully demonstrate the acquisition of essential business and social skills such as problem solving, collaboration, creativity, etc. More opportunities should be opened for students to self- learn and share knowledge with peers through ICT. Looking across the learning of programming in both primary and secondary schools, we see opportunities to strengthen the programming opportunities starting from primary
44 Reference: 2012 HKDSE Entry Statistics, http://www.hkeaa.edu.hk/DocLibrary/HKDSE/Exam_Report/Examination_Statistics/dseexamstat12_2.pdf 45 According to Gartner, a digital native is a person who was born during or after the general introduction of digital technologies and through interacting with digital technology from an early age, has a greater understanding of its concepts. Per cent age of HKDSEst udent s t aking ICT Cur r iculum Br eakdown of ICT Cur r iculum elect ive par t 89% 11% 71% 15% 11% 3% Database Data Communication and Networking Multimedia Production and Website Development Software Development Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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schools so that students can progress and accumulate programming knowledge over the years like Mathematics, Physics, Chemistry, etc. We need to emphasise that the primary goal of programming is not to equip our students with programming capabilities but to encourage their active exploitation of technology for problem solving. We see programming as one of the important elements to realise the potential of technology, much like arithmetic in Mathematics. Through programming, our students will have hands-on opportunities to exercise creativity, and train up their logical thinking from a technology perspective. By incorporating more programming opportunities in our school education, our students should grow up with a mind-set to exploit technology intuitively and efficiently in solving their everyday life problem. This will in turn groom our future leaders with confidence and ability to look to broader technology, not just programming, as one of the most critical tools to create enterprising opportunities and transform our lives, economy and society. When we look at students option in their study at S4-6 with lower interest in ICT curriculum and Software Development elective part (as shown in the above graph), we may see that our students tend to favour to be digital consumers, rather than digital solution creators. Students are comfortable with using technology without knowing the mechanics behind it. We need to embrace and enrich both dimensions. Learning and understanding programming can help demystify the technology and make students comfortable with technology. For students who do not go on an ICT career, they would still likely need to make sure of technology in their daily life to solve their problems. Technology is becoming integrated or even embedded into most problem-solving skills in the digital era, regardless of an individuals occupation.
Recommendations International experience and benefits The US Government is working with high schools to ensure that knowledge and thinking gained through programming are relevant for the future whether the students are likely to pursue an advanced ICT academic degree or not. International experience and benefits In Australia, a draft Technologies curriculum has been designed and published for children from kindergarten through to secondary school which is intended to ensure that students become confident developers of digital solutions. At secondary school level students will be expected to use software tools appropriately and ethically to produce digital solutions that create enterprising opportunities and transform lives and societies. International experience and benefits Estonia introduced a pilot scheme to some Estonian schools in 2012, which is a computer programming study for all children attending school from the age of 6 years old. In the future it is anticipated that the programme will expand and include young adults who wish to carry on ICT activities outside of the classroom. The programmes goal is to eventually become a part of the standard educational curriculum - just like mathematics and language studies. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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We propose that programming opportunities, in but not exclusive in computer curricula should be strengthened in schools so as to help demystify technology, encourage more logical thinking among students and provide a hands-on opportunity to nurture creativity and innovation as well as problem-solving using ICT. The benefits are: Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Instil students mindset of ICT as a powerful tool to be exploited to solve challenges in everyday life Empower our young generation with sufficient digital literacy and knowledge to benefit from the convenience that ICT brings Ensure Hong Kongs innovative and knowledge-based culture is nurtured to compete globally Teach logical thinking skills and help give a more rounded education for the digital age Inculcate generic logical thinking and the use of ICT solutions for problem solving.
Potential areas for action 1. Promote the benefits of programming The major benefits of programming to instil students mindset of active exploitation of technology to solve problems should be conveyed to schools, parents and students. For example, students can approach programming in an engaging and practical way through the development of mobile applications. Schools should encourage students to participate in programming related competitions such as the Hong Kong Olympiad in Informatics and the International Olympiad in Informatics to stimulate their interest in computing science. 2. Strengthen programming learning for children Programming elements in the existing computer curricula can be further enriched for primary and secondary 1-3 students. Development of problem-solving skills and creativity through the learning of programming should be strengthened. More opportunities and examples should be provided for students to understand how to code and program, as well as applying technology to solve real-life problems. The enriched curriculum will help students understand the importance of ICT, and how their career and future society will benefit and transform with ICT. 3. Support teachers in teaching programming More professional development programmes as well as learning and teaching materials on programming should be developed and provided in various subject areas so as to support teachers capabilities and interest in programming
8.2.5. Providing visitors and citizens with targeted information Current position in Hong Kong Hong Kong has a vibrant tourism industry and received over 40 million in 2011. As a modern city, Hong Kong needs to satisfy visitors expectation of low-cost access to information and staying connected. International experience and benefits In the US, the Verizon Innovative App Challenge provides the opportunity for middle school and high school students, working with a faculty advisor, to use their Science, Technology, Engineering and Math (STEM) knowledge, their ingenuity, and their creativity to come up with an original mobile app concept that incorporates STEM and addresses a need or problem in their school or community. Programming education is a core element in STEM, and students are coached by specialist on using programming for application developing. The Challenge provides an engaging and empowering learning experience to increase student interest and knowledge in STEM and mobile technology. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Visitors to Hong Kong can access the Internet conveniently when they are in Hong Kong, using the GovWiFi at over 2,200 hotspots in some 410 Government premises like sports venues, major parks, as well as a number of tourist attractions and other public Wi-Fi at over 16,000 Wi-Fi hotspots in the city, which can be found in MTR stations, convenience stores, buses and more than 1,000 telephone booths. Besides Wi-Fi connection, the Hong Kong Tourism Board (HKTB) has listed out over 10 mobile applications for visitors, providing information of popular tourist spots, events and transportation arrangement. At selected Wi-Fi hotspots, visitors are allowed to browse HKTBs DiscoverHongKong.com website and download HKTBs mobile applications for free. Over 1.5 million downloads of HKTB mobile applications have been recorded as of April 2013. The private sector has also developed many other mobile applications to provide geo-spatial information to help visitors tour around the city. Besides visitors, Hong Kong citizens who travel around the city can also use these mobile applications.
Potential and new possibilities Mobile devices have nowadays become the major platform for disseminating and receiving information for most overseas visitors. We see that mobile technology will play an increasing important role for visitors in Hong Kong, given the ubiquitous and user-friendly Wi-Fi connectivity and mobile data coverage in Hong Kong. HKTB is formulating initiatives including location-based services to encourage visitors participation in events in Hong Kong. New travel applications for mobile devices can be explored to assist visitors in pre-trip itinerary planning, in-town navigation and post-trip sharing. The public sector information (PSI) datasets on tourism information, once available, can be leveraged in the travel mobile applications to facilitate a pleasant and digital experience in Hong Kong. In addition, the social media allows visitors and citizens to share their experiences with friends and relatives instantly to promote Hong Kong. International experience and benefits Mountain View is a city in Silicon Valley. A leading ICT company headquartered in Mountain View provides unlimited and free Wi-Fi to the entire city, but getting online through Wi-Fi will require using the services from the ICT company. Mountain View represents a snapshot of a potential future where access is treated like browsing - provided for free in return for relevant, contextual advertising. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 23 Digital experience for visitors
Recommendations We propose that the Government should continue to encourage and facilitate the private sector to further strengthen Hong Kongs Wi-Fi services with easy access (please refer to the fourth area of action under Facilitating access to technology and broadband) and mobile applications to visitors. The benefits are: Capitalise on the advantage of robust Wi-Fi coverage and mobile app industry for visitors Delight visitors with a personalised virtual tour guide to navigate and experience an original Hong Kong Strengthen Hong Kong as Asias World City and a top tourist destination for visitors.
Potential areas for action 1. Facilitate more mobile applications for visitors leveraging Wi-Fi services The Government can develop more mobile applications for tourists. Also, the Government can provide more Public Sector Information (PSI) related to tourist spots for the private sector to leverage on tourist mobile applications.
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8.3 Igniting business innovation through exploitation of technology To compete with other advanced global cities, the capability of Hong Kongs commercial sector to innovate is critical to its economic growth and competitiveness. Innovation, which includes research on new ideas, and development of value-added services and practical applications, could lead to a demand for high-value jobs in Hong Kong, expand the export of its products and services, and drive growth in a variety of industries. Through the active exploitation of technology (including the business use of information, application, infrastructure, etc.), both large corporates and small and medium enterprises (SMEs) will operate with higher efficiency, achieve higher growth and execute better control over their business. Their business success through innovative technology adoption will significantly contribute to the sustained economic vibrancy and growth of Hong Kong. Within the programme supporting this strategic thrust, the key initiatives that offer new and exciting opportunities include: Establishing innovation and collaboration platforms putting Hong Kong at the forefront of innovative business applications of technology, boosting its competitive edge Promote SME cloud platform and ICT knowledge sharing Opening up innovation by making all public sector information available for use in apps by private and non-government sector
8.3.1. Establishing innovati on and collaboration platforms to accelerate innovati ve business applications of technology to boost Hong Kongs competitive edge Current position in Hong Kong Experience from advanced economies has shown that innovation performance is a crucial determinant of competitiveness and economic progress. Recent study by the Organisation for Economic Co-operation and Development (OECD) emphasised that it is the application of advances in technology, in conjunction with entrepreneurship and innovative delivery of goods and services, which translates scientific and technological advances into productive economic activity. 46 Hong Kong is a leading knowledge- based economy and therefore innovation can be a growth driver for Hong Kongs long- term economic future. Research and Development (R&D) spending is one of the many factors in determining the level of innovation of a country or city. R&D expenditure in Hong Kong is not high (see the table below) because of the lack of private sector participation. In this regard, Hong Kong could be more proactive.
46 Reference: OECD, Innovation and Growth Rationale for an Innovation Strategy. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Table 5 R&D expenditure as a percentage of GDP Country R&D expenditure as a percentage of GDP 47, 48, 49 Hong Kong 0.76% United States 2.77% United Kingdom 1.77% South Korea 3.74% Singapore 2.28%
Despite the challenges in nurturing innovation, there are signs that Hong Kong is improving. A significant portion of Hong Kongs innovation happens in the higher education sector. Our universities are now building a good reputation in research, and are making larger investment in innovation. Expenditure on R&D in the Hong Kong higher education sector has been rising in recent years. In 2011, expenditure on R&D in the higher education sector reached HK$7,155 million, up by 3% when compared with 2010 50 . They present opportunities for driving innovation development in Hong Kong. As our universities are making advancement, we should more effectively leverage their strengths. The QS World University Rankings 2012/13 reported for the first time that four universities in Hong Kong are ranked among the worlds top 100. 51 All of them have Engineering Faculties with cutting-edge ICT research. Their strengths can be more extensively utilised to benefit Hong Kongs economy.
47 "National Survey of R&D in Singapore 2011", http://www.a-star.edu.sg/Portals/0/media/RnD_Survey/RnD_2011.pdf 48 OECD Library, http://www.oecd-ilibrary.org/science-and-technology/gross-domestic-expenditure-on-r-d_2075843x- table1 49 http://www.legco.gov.hk/yr11-12/english/panels/ci/papers/ci0417cb1-1760-1-e.pdf 50 Reference: Census and Statistics Department, Hong Kong Innovation Activities 2011 51 The Hong Kong University of Science and Technology, The University of Hong Kong, The Chinese University of Hong Kong, and City University of Hong Kong Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential or new possibilities An important recent development is the expansion of knowledge transfer from universities to the commercial sector. Since 2009, the Government has provided a new recurrent funding of $50 million each year for institutions to build up their capacity and broaden their endeavour in knowledge transfer. Universities are now conducting more patent filings, spin-off companies, proof- of-concept production, etc. We can further support their capability building in these areas. Another major trend is the growth in private sector innovation (see the graph below). Our consultation findings revealed that innovators and entrepreneurs in Hong Kong are developing new technologies, as well as creating new business models and management techniques supported by ICT. With growing investment from the private sector, many business practitioners foresee that non-technical innovation will form a strong momentum in Hong Kong in the near future. Hong Kong needs to catch up with its regional competitors in terms of innovation capacity. The advancement in university R&D capability and technology transfer, and the growing investment from the private sector should be leveraged to drive economic development.
International experience and benefits The US has an exceptionally strong public and private university research base, supported through federal agencies like the National Science Foundation and the Department of Defence. American universities have strong links to the private sector and they serve as a bridge to commercialisation. Leading institutions such as Stanford University, Massachusetts Institute of Technology (MIT) and California Institute of Technology (Caltech) are the largest grantees of Federal research funding. They led the development of many technological innovations that were subsequently commercialised with significant economic benefits. The US is highly successful in incentivising universities to commercialise innovations through granting universities and researchers the ownership of all intellectual property rights that arise from federally-funded research projects. This encourages US institutions to invest in their technology transfer and exploitation capability. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 24 Private sector R&D spending
Reference: Census and Statistics Department, Hong Kong Innovation Activities 2011
Recommendations Hong Kong is recommended to encourage innovation by strengthening technology transfer and driving business innovation excellence. This will put Hong Kong at the forefront of innovative business applications of technology. The benefits are: Innovative ideas and research outputs from universities will be more effectively translated into economic benefits. More innovative solutions will be applied to businesses to raise their competitiveness. Hong Kong will more effectively attract innovation talents from other parts of the world to enrich its talent pool.
Potential areas of action 1. Strengthen technology transfer from universities The awareness of the importance of technology transfer programmes can be further developed. Academics and the Government should further promote the availability of such knowledge assets to the industries and potential investors (e.g. organising symposiums and other high-profile events). In addition, the University Grants Committee and the Innovation and Technology Commission should further encourage and facilitate institutions to explore and exploit such knowledge, know- how, skills and expertise and subsequent transfer of such tacit but highly valuable assets to society and economy including private sector companies. 2. Drive business excellence with a broader definition of innovation Hong Kong should further encourage and recognise product and service excellence through ICT. Academics, ICT industry players, private investors and public funding bodies need to advocate and adopt a broader definition of innovation, which could include the creation of new management techniques, business models and business operations design. More entrepreneurs engaging in innovative business 5,474 5,767 6,194 4,500 5,000 5,500 6,000 6,500 2009 2010 2011 (in million HKD) Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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with ICT elements could be included in certain innovation funding support. This could potentially trigger more business-driven ideas and technology applications. It is noted that the Innovation and Technology Fund (ITF) has supported some business-driven R&D application projects in Hong Kong. The Hong Kong Applied Science and Technology Research Institute and the Hong Kong R&D Centre for Logistics and Supply Chain Management also contribute to business innovation development. These efforts should be expanded into larger scale.
8.3.2. Promoting cloud platforms and knowledge sharing for small and medium enterprises to help them succeed through increased leveraging of technology Current position in Hong Kong A significant portion of Hong Kongs businesses is made up of small and medium enterprises (SMEs). 52 According to the Trade and Industry Department, as of December 2012, there were about 300,000 SMEs in Hong Kong. They accounted for over 98% of the total business units and provided job opportunities to over 1.2 million persons, representing about 47% of total employment 53 . Their business success and vibrancy is critical to the overall economic success of Hong Kong. A recent detailed study into SMEs ICT adoption revealed that ICT adoption could lead to more successful business 54 . It concluded that there was a significant direct relationship between revenue and stage of ICT usage, with a higher ICT usage driving higher revenue. The study also suggested that the lack of understanding of ICT could be a potential deterrent to ICT adoption. It was concluded that an important reason for SMEs not adopting ICT appears to be the perception that they do not need it. They feel that they have managed well without the technology so far, and see no need to make an investment that would be difficult and expensive to maintain. Despite the challenges facing SMEs in ICT adoption, some progress has been made. Over the years, the Government and the ICT industry have joined hands to facilitate the wider adoption of ICT among SMEs.Through the OGCIO's Sector-specific Programme and IT Training Programme for SMEs, 22 projects for 16 business sectors were conducted to benefit over 17,000 practitioners from SMEs as of May 2013. 55 The
52 Definition of SME adopted by the Trade and Industry Department: Manufacturing enterprises with fewer than 100 employees and non-manufacturing enterprises with fewer than 50 employees are regarded as small and medium enterprises (SMEs) in Hong Kong. 53 Reference: Trade and Industry Department, http://www.success.tid.gov.hk/english/lin_sup_org/gov_dep/service_detail_6863.html 54 Prof. Ali Farhoomand, Director of HKU Asia Case Research Centre, published the research Study on ICT Adoption in Hong Kong SMEs. 55 Reference: Figures provided by OGCIO Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Hong Kong Productivity Council (HKPC) has set up a new one-stop support centre, SME One, to offer a variety of SME support services. The Hong Kong Trade Development Council (HKTDC) has set up the SME Centre to provide solid business contacts, up-to-date business information on overseas markets, and latest industry trends to SMEs. These initiatives will continue to enhance SMEs competitiveness. In addition to the effort required for the ongoing SME facilitation programmes mentioned above, emerging needs and opportunities on cloud-based applications and services for businesses, including SMEs, are also observed. A survey 56 has revealed that an increasing percentage of businesses are adopting cloud applications (up from 27.3% in 2011 to 33.0% in 2012). Over 58% of respondents agreed that cloud applications can reduce initial investment and capital expense on IT, and over 53% of respondents agreed that they would not have to worry about IT maintenance or upgrade using cloud applications. These results suggest that businesses have become more aware of the advantages of cloud computing, and will be more active in adopting the applications and services.
Potential and new possibilities While OGCIO, HKPC, HKTDC and other public/ industry bodies will continue their existing efforts in supporting SMEs, we should leverage the technology and business breakthroughs that can potentially transform the SME sector. A highly practical and applicable breakthrough for SMEs is the emergence of cloud computing solutions. Cloud computing solutions allow ICT users to operate with minimal upfront investment cost. Recurrent service cost is low. The requirement on technical skills / ICT staff for maintenance is also low. Therefore SMEs can adopt ICT with minimal barrier. They will become more willing and active in adopting innovative ICT solutions to support their business.
Recommendation The Government is recommended to work with the private sector to facilitate the provision of cloud platforms specifically for SMEs. To supplement the cloud platform, the Government will actively promote knowledge sharing for SMEs to succeed through technology. The benefits are:
56 Reference: Hong Kong Productivity Council Hong Kong Cloud End-User Survey International experience and benefits The New York City government has been active in supporting SMEs through training and workshops. The Mayors Office of Small Business Services (SBS) introduced the Digital Toolkit, a new programme to equip SMEs with the tools and training they need to grow online. Through NYC Business Solutions Centres, the Digital Toolkit programme leverages partnerships with technology companies throughout the City to develop a how-to curriculum. Workshops led by NYC business solutions instructors are available online. This provides business owners with the training and resources they need to grow in a modern economy. They become more ICT enabled, and are able to run their business more efficiently and achieve more growth. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Giving SMEs the incentives to use cloud computing services provided on trusted and reliable cloud platforms Enabling faster adoption of innovative technology applications by SMEs to improve business performance Enabling the development of more innovative business and technology solutions for the SME market segment.
Potential areas of action 1. Promote SME cloud platform The Government can work with the private sector to facilitate the provision of cloud platforms specifically for SMEs. Such platforms will provide business opportunities to software and solution providers and also encourage SMEs to adopt ICT to enhance productivity and increase competitiveness. 2. Encourage collaborative information sharing on business and technology innovation for SMEs Success stories of SMEs adopting ICT will be used for changing the risk perception and operational considerations of business owners about ICT. Awards could be given to the most successful cases to gain publicity.
8.3.3. Accelerating innovation by making all public sector information available for use by private and other non-government sectors Current position in Hong Kong Public Sector Information (PSI) is the information produced, collected and disseminated by the Government or public bodies. Hong Kong Government has launched a PSI portal called Data.One in 2011, providing PSI data download free of charge. It started off with geo-referenced public facility data and road traffic information, and expanded into other PSI areas (including air pollution indices, property market statistics, population census statistics, weather data, public transport information etc.) The portal now has 12 categories of PSI encompassing hundreds of datasets for both commercial and non-commercial re-use. The most commonly downloaded and re-used PSI is traffic snapshot images. At least 13 mobile applications making use of the traffic snapshot images have been rolled-out, and the number of downloads of these images reached 700,000 times a day. The snapshot data informs the citizens on the real-time traffic situation and thus optimise their routing to work, school or home. This illustrates that opening up and providing easy access to public data can enable citizens, communities and businesses to become more innovative and help deliver socio-economic benefits.
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Figure 25 Apps development competition based on PSI could enable innovation
Potential and new possibilities Experience from other developed economies shows that widening access to public data can create tangible business opportunities. Public bodies can help to unlock the full potential of data and engage citizens and entrepreneurs in innovative ways, helping to boost social innovation. Public data open to the public will enable citizens to demand public bodies to delivery better value for money in public spending; and to realise significant economic benefits by enabling businesses and non-profit organisations to build innovative applications and websites using public data.
Recommendation We propose to make all PSI datasets available so that both private and non- government sectors can re-use the data with innovation, especially in forms of mobile apps, to deliver direct benefits to the society as a whole. The benefits are: Creating business opportunities for economic growth in a cost-effective and creative way Benefiting private and non- government sector by gaining more precise and complete insight into customers preferences and needs Leveraging on community wisdom to deliver convenience to citizens through developing applications with open data for citizens daily use
Potential areas of action 1. Make PSI electronically available in machine readable format for easy re-use as default The Government should make the availability of PSI a default rather International experience and benefits In the US, hygiene records of restaurants in some cities are open for downloading. Mobile apps have been developed based on the open data to provide information on eatery and dinning places. The information is combined with customer ratings as a restaurant guide for the citizens. Making innovative use of the hygiene related open data, the apps have delivered an unexpected benefit. The rate of health incidents related to poor hygiene / food poisoning has dropped. This is an example of how open data can benefit the public. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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than an exception. In general, public data that is not subject to privacy, security or privilege limitations should be made available. PSI datasets could be released in machine-readable formats in parallel to their usual document formats (such as .pdf, .doc, etc.). The Government should set up guidelines to Government departments and public bodies on the development of application programming interfaces (APIs). A single portal with access to all Government bodies APIs could be established to facilitate data access by users. 2. Encourage other public organisations to release PSI The Government should not only seek to make available more PSI from Government departments but should also work with other public organisations and sectors to encourage release of more information for the benefit of the Hong Kong community as a whole (e.g. release of data by organisations in the utilities and transportation sectors). 3. Prioritise the provision of PSI for high value-added services To develop impactful and high value services, critical data sets need to be released and combined with innovative services. If the base maps could be opened for public use at minimal cost, or free-of-charge, developers would be further encouraged to leverage the base maps to design innovative location-based applications. This could also potentially add to the strengths of Hong Kong as a hub for mobile applications. Experience from some advanced economies suggests that the provision of location or map based information by public bodies free-of-charge could be a practical option 57,58 . The Government could further explore whether the base map data could be downloaded through APIs such that they are made easier to use by developers.
8.4 Supporting a thriving Hong Kong ICT Industry and research and development Successful ICT development and application is a critical success factor to many leading knowledge-based economies around the globe. Hong Kong is certainly no exception. In order to stay ahead, Hong Kong needs to develop a vibrant ICT industry for development and continue its journey through innovative application of ICT in all industries. In the longer term, the ICT industry aspires to become one of Hong Kongs pillar industries. It will fuel the economic growth of Hong Kong and become our key competitive edge to stay ahead in the global economic competition. Within the programme supporting this strategic thrust, the key initiatives that offer new and exciting opportunities include: Supporting the evolving ecosystem to groom technology startups Growing top talent in ICT and business technology application Establishing Hong Kong as a Mobile Centre of Excellence
57 EuroGeographics (http://www.eurogeographics.org/products-and-services/euroglobalmap) offers free base maps. The maps are available at the provincial level. 58 Singapore also offers location based information on Data.gov.sg. Though it is not offering sophisticated or high value- added data services, the information is readily accessible with no extra cost. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Continuing to develop a Cloud Computing and Data Centre hub Exploiting convergence to combine Hong Hongs strengths in media, creative and technology industries to make the city a Centre of Excellence in Digital Media Continuing to leverage Hong Kongs unique position by enabling ICT businesses to access Mainland opportunities.
8.4.1. Supporting the evol vi ng ecosystem to groom technology startups Current position in Hong Kong Traditionally, the ICT industry has a supporting and enabler role in Hong Kong in that it mainly assists the development of other industries. Its size is relatively small. The percentage of GDP generated by ICT is approximately 6.1%. 59 It employs 78,000 professionals 60 , which constitute roughly only 2% of the total labour force. 61
Figure 26 Percentage of GDP generated by ICT
Reference: Census and Statistics Department, Annual Report: Hong Kong as an Information Society.
Based on the lessons learnt from leading economies, a vibrant ICT industry should comprise a large base of successful ICT startups. 62, 63 They excel at generating, protecting, applying and commercialising innovative ideas. They first capture business from a local market, and then expand into the international market and become
59 Reference: Census and Statistics Department, Hong Kong as an Information Society (2013 edition). 60 Reference: 2012 VTC Manpower Survey Report 61 The size of the total Hong Kong labour force in 2010 was 3.65 million. (Hong Kong: The Facts Employment, http://www.gov.hk/en/about/abouthk/factsheets/docs/employment.pdf) 62 Reference: OECD, Innovation and Growth - Rationale for and Innovation Strategy. 63 Reference: Department for Business, Innovation and Skills of the UK Government Innovation and Research Strategy for Growth. 5.4% 6.10% 4.4% 3.6% 4.9% 0% 1% 2% 3% 4% 5% 6% 7% 2007 2008 2009 2010 2011 Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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successful enterprises. The fundamentals of this industry development process lie in an ecosystem that favours ICT startup development. A sustaining ecosystem for ICT startups relies on a spectrum of interacting factors. They include the generation of new ideas, availability of skills and talents, accessibility to funding, protection of intellectual property (IP) rights, and a favourable business environment. Hong Kong has invested substantially in each of these areas. For example, the Innovation and Technology Fund (ITF) approved $7,414 millions of funding for 3,297 projects 64 since its establishment. The Cyberport Incubation Programme has supported 189 companies since 2005. They receive seed funding, facility support and technology guidance. The supported companies developed 103 IP items and attracted over $55 million from angel investment funds. The Hong Kong Science & Technology Parks (HKSTP) operates the Business Incubation Programme. It provides technology startups with subsidised rent and marketing/ finance/ management services in the incubatees critical initial years. A total of 493 companies have been admitted. 70% of the graduated companies are still in operation. They have filed over 600 IP registrations. Four companies are listed either in Hong Kong or the US. Besides the accomplishments by the public bodies, we have also observed significant development in the private sector. In recent years, a burgeoning population of ICT startups begins to emerge in co-working spaces. A prominent example is CoCoon. It is positioned as an eco-friendly and open co-working space which houses and connects entrepreneurs, innovators, designers, engineers and investors. Entrepreneurs who have a business idea can find co-founders in the CoCoon network and build a team. They start by earning seed money through paid projects. Eventually they will locate the right investors who fund their ideas. CoCoon also organise pitch nights and online market space to catalyse the business creation and growth process. Other similar initiatives are seen in Hong Kong, such as The Hive Co-working space, and the BootHK Campus. They offer similar functions that support entrepreneurs, technologists and investors. Their emergence and success has now become a new driving force for the ICT startup sector. We also observed that Hong Kong has become more widely recognised as a potential hub for technology development and business application. In a recent report published by Forbes 65 , Hong Kong was named the top city of The World's Top 4 Tech Capitals to Watch (after Silicon Valley and New York). It was noted that, with a community of innovative and ambitious entrepreneurs on one side and a population of internationally travelled, wealthy tycoons on the other, Hong Kong faces good opportunities to become a leading technology centre. Despite the progress made, challenges still exist in the ecosystem development. One consensus derived from our consultation sessions is the difficulty in soliciting funding for innovative business ideas. Respondents were of the view that the ITF tended to focus on technology innovation. Business ideas that apply existing technologies would
64 Source: Information and Technology Commission, Innovation and Technology Fund Statistics of Approved Projects (as at 30 April 2013) 65 Reference: Forbes, http://www.forbes.com/sites/karstenstrauss/2013/03/20/the-worlds-top-4-tech-capitals-to-watch- after-silicon-valley-and-new-york/2/ Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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receive less support because they lack elements of new technology invention. This could potentially hinder the establishment of ICT startups that emphasise new business ideas rather than technology. Some of the other difficulties facing entrepreneurs include: soliciting investments, receiving mentorship, obtaining legal guidance, and the transparency of startup-related information. Another challenging aspect is the immigration requirements to non-local entrepreneurs. Most of them cannot apply for a working visa, and many may not be qualified for the Capital Investment Entrant Scheme. This is a deterrent to non-local startups.
Potential or new possibilities The burgeoning co-working spaces for entrepreneurs demonstrate that matching and network building is an essential part of a startup ecosystem. The existence of segregated individual elements (capital, ideas, talents, etc.) would not lead to business vibrancy. These elements have to be brought together in an interconnected platform to achieve synergy. Since Hong Kong is a highly connected city, with good network infrastructure and high mobile adoption rate, online platforms that connect people, idea, technology and capital will substantially enhance the ICT startup ecosystem. It is widely recognised that IP rights is a core element of ICT business. Having a renowned legal system, ICT companies can benefit from Hong Kongs natural advantages in IP rights protection. ICT startups are the breeding ground of creative technological ideas and innovative products and more startups should be grown and developed into champions. They are vital to the overall ICT development in Hong Kong. The development of platforms for business matching and showcasing of products, and the transparency of startup- related information, can largely accelerate the building of such ecosystem.
Recommendations Hong Kong is recommended to build and enhance the ecosystem to grow ICT startups and groom them into successful enterprises. The benefits are:
66 Reference: INNO-Grips, Global Review of Innovation Policy Studies Korea: Shifting SME policies towards competitiveness and growth. International experience and benefits South Korea set up the Small and Medium Business Administration (SMBA) in 1996. Its policy concept has been directed towards competitive SMEs, and away from protection of the weak. It adopts a more direct approach to grow small and mid- sized businesses into national champions. The 300 Global Stars Programme was launched in 2010. Every year during the three year period starting in 2010, 100 SME candidates are selected on the basis of merit. The selected enterprises are supported by a comprehensive support package in terms of technology, financing, marketing, etc. With a wide range of support offered by the programme, the companies are made ready to compete with international competitors. 66
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Hong Kongs ICT industry will expand and become highly vibrant. It will add economic diversity and strength to Hong Kong. ICT startups and champions will brings together a large and fluid community of entrepreneurs and technologists for further economic development and expansion. A successful ecosystem will facilitate ICT startups to enter business More high-value ICT jobs will be created.
Potential areas of action 1. Build a digital platform for technology startups An open, easy to access and user friendly online platform will be established to increase transparency of information and facilitate the entry of startups to the market. It facilitates the communication and matching between innovators, investors, mentors and business advisors, etc. It will become a digital market place for ideas, skills, talents, business knowledge and funding. It will also link up the online community with the physical communities in co-working spaces, Cyberport, HKSTP, and universities. Eventually the successful startups will emerge as successful enterprises. 2. Facilitate startups to foster entrepreneurial culture and encourage cross- fertilisation of ideas Non-local startups should be facilitated to set up their businesses to Hong Kong in order to broaden the horizon of the local technology startup scene. It is envisaged that interactions between local and overseas elements would further boost Hong Kong's entrepreneurial culture.
8.4.2. Growing top talent in ICT and business technology application Current position in Hong Kong Hong Kong has a mature education system that can nurture talents for ICT industry development. Our universities are the major source of young talents for the industry. In the last decade, the Government has invested substantially in ICT education and talent development. Currently, six local universities are funded by the University Grants Committee to provide degree programme education in ICT-related disciplines. The number of students admitted to bachelor, master and doctoral degree programmes in local universities have increased significantly over the past decade. 67 Students in these programmes are provided with high-quality education. Many of the local lecturers are renowned ICT experts, with increasing numbers of Institute of Electrical and Electronics Engineers (IEEE) fellows and international award-winning academics. Students also have access to cutting-edge R&D facilities, including the outstanding laboratories funded by the Research Grants Council. Hong Kongs education system on ICT could be considered top of its class in the region. Despite the effort and progress made in ICT education, enterprises still find a gap between the demand and supply of ICT talent. On the one hand, the competition of talent is happening as early as at the university level, where students may pursue
67 The 2012 ICT Manpower Survey conducted by Vocational Training Council revealed that 87.3% of fresh IT first- degree graduates were in full-time employment. The successful participation in IT related jobs was 77.1%. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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studies in finance, law or medicine rather than information and computer science, or engineering because of the public image of the ICT profession and the career prospect. On the other hand, the skills possessed by the ICT graduates may not fully match the requirements in the industries (e.g. strategic thinking, business analysis, project management, stakeholder management) to cope with the rapidly changing IT landscape and technologies.
Figure 27 IT manpower supply-demand analysis
Reference: The Vocational Training Council, Manpower Survey of the IT Sector of 2006, 2008, 2010, and 2012.
The 2012 ICT Manpower Survey revealed that 38.9% of employers had difficulties in attracting suitable candidates with the relevant experience during their recruitment exercises. The difficulty of ICT employers in recruiting candidates with the relevant experience suggest that the problem may lie in the quality of the ICT workforce, though it may also be due to the rapid change in technologies. The consultation with Hong Kongs major ICT industry bodies, local and multinational ICT vendors and service providers, and Chief Information Officers indicates that the younger generation of ICT professionals may not be skilled enough to match market demand. The skills gaps include technical competence (such as programming skills) and business knowledge (such as business analysis and project management). Qualification framework on ICT now exists (the Specification of Competency Standards on Software Products and Software Services and Communication and Information Services), but many stakeholders view that it does not fully reflect market needs (such as skills in data analytics, business process analysis and cloud-based services) and it is not widely adopted and recognised. These challenges certainly pose threats to the future development of the ICT industry, as well as the broader implications to industries that heavily rely on strong ICT capabilities. 4390 3035 4741 4434 3742 3359 5694 4736 78685 73378 64473 66697 2000 3000 4000 5000 6000 7000 8000 2006 2008 2010 2012 N u m b e r
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K o n g Local supply of IT graduates* Additional demand for IT telents Total number of IT employees in HK * The supply data do not include IT or computing graduates returning from overseas and non-IT / computing graduates having received in-depth conversion IT training. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential or new possibilities Experience from leading ICT companies suggests that innovation and value creation usually take place at the interaction between business and technology. As a leading business hub, Hong Kong has advantages in bringing in market insights into education curriculum. Experience from leading institutes, such as MIT, has proven that universities and the industry will have mutual benefits through educational collaboration. In particular, we will address the needs on different types of ICT knowledge. ICT literacy is the foundational level which will benefit everyone in society. ICT technical knowledge (such as programming skills) is a key requirement for ICT companies and ICT departments in corporates. Understanding of technology application for business is a key requirement for most business professionals. ICT related programmes in universities can incorporate more industry elements in the education process to ensure success in building our ICT human capital. Despite the investment in education and progress made in the past, Hong Kong still faces the challenge of having shortage in ICT talents who can meet the skills demand of the industry. Hong Kong should enrich its ICT talent pool and further improve ICT education to bridge the gap.
Recommendations The Government is recommended to continue fostering partnerships among academia, training organisations, professional bodies, employers and employees for the sustainable development of ICT manpower for Hong Kong. It is recommended to develop an ICT professional recognition framework, which can accommodate different professional qualifications and various existing framework. The ICT professional recognition framework would comprise of a combination of assessment criteria such as examination, experience, and skills competency. The framework would also make reference to internationally recognised benchmarks/standards which are important to the development of ICT profession. In addition, ICT will be promoted as an attractive career. The professional image will be enhanced. The benefits are: International experience and benefits Singapore has established the National Infocomm Competency Framework (NICF). The framework states the competency requirements for ICT professionals. It aims at widening and deepening the capabilities of Singapores ICT workforce and guiding their career development and progression. The framework covers a large range of job roles related to ICT security, data centre management, channels management, quality assurance and portfolio management. The framework would also be continually updated to cover emerging technologies including cloud computing and green ICT. In addition, Continuing Education Training (CET) centres are established in Singapore. They provide courses that cover the framework capabilities. It would train up to 10,000 ICT professionals in 5 years. Singapores initiatives help it attract and grow ICT talents for high-quality jobs. They form a strong workforce to develop innovative ICT businesses. Recently, Singapore is ranked 7 th in the world in Bloomberg's Global Innovation Index. Its researcher concentration is ranked 4 th in the world. This suggests that its talent policy is moving in the right direction. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Employers, including ICT vendors/ service providers and the ICT divisions of corporates, will easily source talents locally to grow their business. The enhancement of professional image and establishment / adoption of professional recognition framework will benefit not only local talents, but also talents from the Mainland and other parts of the world. This will place Hong Kong at an advantaged position to source and attract Mainland and international talents. Hong Kong will therefore become an ICT talent hub, which will strongly favour our ICT industry development. Some of the talents will become entrepreneurs. They will establish ICT-based startups in Hong Kong. This will contribute to the development of Hong Kong as an innovation hub and its digital economy.
Potential areas of action 1. Develop ICT professional recognition framework The required skills and capabilities for various levels and types of ICT professionals will be clearly described in a new professional recognition framework. This framework will become an industry standard for the practitioners. Based on the professional recognition framework, Based on the framework, a new professional recognition and registration scheme (based on the initiative under the Task Force on ICT Professional Development and Recognition) will further enhance the professionalism of the industry. 2. Enhance training with industry collaboration ICT education programmes will be co-designed and co-delivered by leading ICT companies and the academia. The numbers of internship and placement opportunities for ICT students will be increased. 3. Enhance ICT professional image The Government and industry should enhance the public image of ICT professionals and showcase successful ICT role- International experience and benefits MIT is a world leading educational and research institute. In the ICT sector, it has nurtured thousands of top talents who succeed in innovation and business development. As a core of its advanced education, it developed Industry Alliance with leading corporates. For example, it formed partnership with Microsoft for the Project I-Campus education programme. It also formed partnership with Hewlett- Packard for collaborative study into architectures, devices, and user interfaces in information-rich environments. These efforts put MIT at a leading position to drive innovation for the industry, and help it grows the best talents who are fit for ICT businesses. International experience and benefits In the US, the IEEE Computer Society established the Certified Software Development Professional (CSDP) examination for mid-level software engineers. It also established the Certified Software Development Associate (CSDA) for entry-level software engineers. These examinations and mechanisms for software engineering credentials contribute to building a strong software technology talent pools in the US. The schemes allow employers to more easily assess the quality of candidates, and allow young talents to develop their skills along a clear path of career progression. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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model to the younger generation. This will increase the proportion of top-rated students admitted to ICT-related programmes in universities.
8.4.3. Establishing Hong Kong as a Centre of Excellence for Multi- Platform Apps Current position in Hong Kong Mobile business in Hong Kong is active. The mobile penetration rate is reaching 230%. Hong Kong consumers are at the forefront of global smartphone usage.
Figure 28 Number of 3G/4G customers in Hong Kong
Reference: Office of Communications Authority, Key Statistics for Telecommunications in Hong Kong http://www.ofca.gov.hk/filemanager/ofca/en/content_108/wireless_en.pdf
Success cases in Internet and mobile business have been recently observed in Hong Kong. For example, 9GAG.com was founded by five young local entrepreneurs in 2008. It became highly popular on iOS and Android mobile device platforms, attracting over 100 million page-reads per month. Its success has attracted over 20 million dollars of investment from Internet business investors. Another example is the success of Hong Kong businesses in The Asia Pacific ICT Awards (APICTA). In recent years, innovators from Hong Kong have won APICTA awards in each competition. This shows an increasing momentum of local innovators making ICT innovation achievement. With these characteristics and emerging successes, the Hong Kong ICT industry can further develop and expand. The ICT industry constitutes 6.1% of Hong Kongs GDP in 2011 (Reference figures from some developed countries: Singapore 3.6% 68 , Canada 4.9 69 , USA 7.1% 70 and South Korea 11.2% 71 ). This suggests Hong Kong can further
68 Reference: Department of Statistics, Singapore, http://www.singstat.gov.sg/statistics/browse_by_theme/national_accounts.html 69 Reference: Industry Canada, http://www.ic.gc.ca/eic/site/ict-tic.nsf/eng/h_it05864.html 9,380,230 7,416,909 5,254,513 3,819,186 2,812,002 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2008 2009 2010 2011 2012 Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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capture the growth opportunities in ICT, such as fostering mobile apps development to propel the ICT industry to grow to a higher level of importance to our economy.
Potential or new possibilities In recent years, Hong Kongs enterprises have begun to invest in a variety of multi-platform business solutions (e.g. online banking, movie ticket purchase). This creates a strong momentum that the ICT industry can further expand. Combining this with the high mobile penetration rate in Hong Kong, and its culture of being receptive to new technologies, Hong Kong is well positioned to develop as a centre of excellence for multi-platform apps.
Recommendations The Government is recommended to establish Hong Kong as a centre of excellence for multi-platform apps. The benefits are: Multi-platform app business development will drive ICT industry growth, and contribute to the overall strength of Hong Kongs digital economy. Multi-platform business innovators will place Hong Kong at top priority for establishing their business base. This will enhance Hong Kongs reputation in attracting ICT talents and investments.
70 Reference: US Department of Commerce, http://www.bea.gov/industry/gdpbyind_data.htm. The figure is calculated from the cumulative total of "Computer and electronic products", "Information" and "Computer systems design and related services". 71 Reference: Switzerland Global Enterprise, http://www.switzerland-ge.com/fr/filefield- private/files/41328/field_blog_public_files/8025 International experience and benefits The City of New York has launched multiple initiates to drive mobile business development. It launched the NYC BigApps contest. It is a software competition that challenges developers to create online and mobile applications using NYC Open Data. It launched an App Hub, featuring the Citys ten official apps and demonstrating how the apps create value to citizens and businesses. It also launched the NYC Generation Tech programme in summer 2012, which included opportunities for students to build mobile apps, learn about the fundamentals of entrepreneurship, participate in a business plan competition and receive mentorship from NYC technology firms. This created a strong foundation for NYC to develop mobile business. It is expected that the growing mobile business can significantly contribute to the vibrancy of its knowledge-based economy Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential areas of action 1. Provide incentives to drive multi-platform solution development for the underprivileged groups For the underprivileged groups, since they are often not the preferred customer segments, some of their needs may well be underserved. In order to further ensure the even larger population of Hong Kong could enjoy the convenience provided by mobile solutions and address the needs for social and digital inclusion, a funding scheme supported by the Government is suggested to support the development of specific applications for the underprivileged groups. 2. Facilitate experience sharing and publicise success cases The Government could collaborate with the ICT industry to organise conferences, seminar and promotional events to help ICT businesses share experience and information, and provide more networking opportunities. More competitions and awards could be set up to showcase successful multi-platform business applications. 3. Explore and facilitate multi-platform business solutions for transactions and payments Hong Kong has a large and mature retail industry and there is potential to further enhance the payment ecosystem. Specifically, SMEs could potentially benefit from a secure multi-platform micropayment solutions to lower their operational and transactional costs.
8.4.4. Continuing to develop a Cloud Computing and Data Centre Hub Current position in Hong Kong Another area that the Hong Kong ICT industry is focusing on is the development of data centres with cloud computing services. Hong Kong is a leading business hub in the Asia Pacific region. A large number of multinational companies in the financial, trading and logistics sectors have established regional offices in Hong Kong. This generates great demand for top tier data centre facilities and cloud computing services for their businesses. Since the establishment of the Data Centre Facilitation Unit under OGCIO, over 240 enquires or requests for support have been received. Approximately 10% of the enquiries and requests are from overseas companies. 72
Hong Kong possesses a number of strengths in data centre development. Currently a number of international and Mainland enterprises have selected Hong Kong to set up their high-tier data centres. Hong Kong was ranked the safest place in Asia for setting up data centres by the Data Centre Risk Index for two consecutive years in 2011 and 2012 73 . Our telecommunication infrastructure is one of the worlds most advanced. The cost of Internet access is relatively low. We also have a highly reliable electricity power supply. In addition, there is free flow of information in Hong Kong with no censorship on content and adequate protection of data privacy. These factors enable Hong Kong to develop vibrant data centre and cloud computing business.
72 Source: OGCIO 73 Reference: Data Centre Risk Index published by Cushman & Wakefield Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential and new possibilities The recent development of major data centres Hong Kong has introduced opportunities to accelerate the growth and adoption of cloud computing services. In addition, in some of these cases, the reuse of industrial buildings for high-tier data centres has brought economic benefits beyond the ICT industry. As such, Hong Kong is well positioned to develop itself as a regional hub for data centres with cloud computing services in the years to come.
Recommendations The Government is recommended to continue to develop Hong Kong as a cloud computing and data centre hub, making Hong Kong to be recognised as one of the most business-friendly city for data centre with cloud computing businesses
Potential areas of action 1. Promote Hong Kong as a prime location for data centres with cloud computing services Hong Kong could make use of various possible channels to present its advantages for data centre establishment. International conferences, trade shows and other events are potential platforms to promote and strengthen Hong Kongs status as a prime location for data centres with cloud computing services. Specific cost-conscious industries with high data centre demand (such as financial services) could be the main target for cloud computing services. 2. Develop and promote cloud computing standards, best practices and guidelines for service consumers and providers To facilitate and drive cloud computing adoption and deployment, Hong Kong could develop and promote adoption and development of common services, standards and best practices on cloud services definition, interoperability, standardisation, information security, data privacy, services provision and management, contracting practices, service level agreement, and any other issues and concerns for necessary attention by cloud services consumers and providers in Hong Kong. 3. Lead by example in adopting cloud services across the Government The Government should implement cloud services across departments to drive industry development and showcase successes.
8.4.5. Exploiting convergence to combine Hong Kongs strengths in the media, creative and technology industries to make the city a Centre of Excellence in Digital Media Current position in Hong Kong Creative and media industries drive the innovation capacity and economic growth of a city. Hong Kongs creative and media industries include film, television, music, design, architecture, comics and animation, games and digital entertainment, etc. and has around 34,000 creative industry-related establishments, with more than 189,000 Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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practitioners engaged. The industries contribute more than $77.6 billion annually to Hong Kongs GDP, representing around 4.6% of the latter. 74
As an example, Hong Kong is one of the world's largest film and television content exporters. In 2011, 56 locally produced films worth US 37 million (HKD 287 million) were exported in the form of videotapes, DVDs and other compact discs 75 . During the start of the Internet era, the media industry and content providers scrambled to get their content digitised and re-used in new digital channels. The industry referred this stage as Media 2.0. However, with the explosion of mobile devices and the advent of social media, the connected consumer era represents the end of merely repurposing digital content. Empowered consumers demand instant access to personalised media content, wherever they are. This is the world of Media 3.0.
Potential and new possibilities Todays media industry must move beyond digital to delivering experiences tailored to the digital consumers personalities anytime, anywhere. 76
The connected consumer era is expecting experiences that are: Seamless and integrated across devices Smart personal, insightful, relevant and contextual Collaborative products and services are co-created by developers and users Social ideas are generated, developed and shared among social groups on digital platforms (e.g. social networking sites). Technology has the capability to create these differentiated customer experiences. Hong Kongs media and creative industries need a platform to leverage technology to create the digital media consumption experience that consumers need from content providers in order to maintain its leading status in the world.
74 Reference: Create HK, Hong Kong: The Facts (October 2012) 75 Reference: HKTDC, http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry- Profiles/Film-Entertainment-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X0018PN.htm 76 Reference: IBM Institute for Business Value (IBV) International experience and benefits Comcast Corporation is a leading media, entertainment and communications company. Comcast piloted Xcalibur, its next generation cloud-based TV platform that aims to revolutionise the way people watch TV. Xcalibur moves beyond set top boxes to leveraging cloud architecture to deliver live TV service to any Internet- connected device. Customers can watch live video feeds that serve mobile and other connected devices, when and where they want. Xcalibur meets customer demand for easier access to TV and other Internet-enabled content and delivers content to a broader range of devices. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Recommendations The Government should develop Hong Kong into a Centre of Excellence in Digital Media by uniting the media, creative and technology industries. The benefits are: Strengthen Hong Kong media and creative industry; and Provide more business opportunities through promoting and marketing our ICT and media products and services to other parts of the world.
Potential areas of action 1. Enable connections and collaboration between media content providers with ICT companies to create a cluster of digital media companies The Government could host events to bring together communities in the digital media delivery value chain or encourage the media industry to invest in the necessary digital tool (e.g. digital media studio) for new digital media companies. The goal is to accelerate the creation of successful new digital media businesses. 2. Facilitate experience sharing and publicise success cases The Government could collaborate with the media, creative and ICT industries to organise conferences, seminar and promotional events to help the digital media businesses share experience and information, and provide more networking opportunities.
8.4.6. Continuing to leverage Hong Kongs unique position by enabling ICT businesses to access Mainland opportunities Current position Hong Kongs economic ties with the Mainland have grown closer and more interdependent in the last decade. Today business collaborations exist across the border in almost every industry. Hong Kong has become the Mainlands largest external investor, accounting for USD 71.289 billion in 2012 (over half of the Mainlands foreign investment) 77 . The Mainlands vast market potential, economic growth and active adoption of technologies introduce numerous business opportunities for Hong Kongs ICT industry.
77 Ministry of Commerce, Peoples Republic of China, http://english.mofcom.gov.cn/article/statistic/foreigninvestment/201301/20130100012618.shtml Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 29 China ICT market size Historical data and future forecast
Reference: IDC, "China ICT Spending 2012 2016 Forecast and Analysis".
The ICT opportunity in Mainland China is now growing rapidly. Several emerging technologies, including IoT, Big Data analytics, cloud computing and social business are under rapid development. Chinas IoT market exceeded RMB 200 billion in 2010, mainly covering home safety, electric power safety, public security, health monitoring, and environmental protection. It is expected that in 2020, the market size could reach RMB 5-10 trillion. 78 As RFID is one of the key technologies for IoT, Hong Kongs industry talents in RFID (e.g. experts in RFID application in our supply chain and logistic industry) could assist the Mainland in IoT development. The market size for big data analytics is expected to grow significantly in the years ahead. It is expected to reach approximately RMB 4 billion in 2016. Currently big data analytics is at an early stage of development in China. Telecommunication, banking and healthcare sectors would likely be the fast-movers in adopting big data analytics solutions. The cloud computing market in China has undergone significant developments in recent years. Telecommunications and Internet companies have led the investment in cloud computing. Companies in the finance, manufacturing, and energy industries have also begun adopting private cloud computing. The market size of cloud computing services is expected to reach over RMB 11 billion in 2013, with an approximately 50% year-to-year growth. In the Mainland, corporate-level users are now trying to utilise the social network model to assist and transform their internal operations, employee collaboration, process and workflow, and knowledge management. With the world largest Internet population (over 500 million users 79 ), social business technologies and solutions would face an optimistic future in the Mainland. The Chinese workforce, particularly the younger generation, would become increasingly tech savvy users who could make better use of social business tools to operate, manage and drive the growth of their businesses.
78 Reference: FINPRO, Internet of Things China, 2011. 79 Source: International Data Base, U.S. Census Bureau - 50,000 100,000 150,000 200,000 250,000 2011 2012 2013 2014 2015 2016 (in million USD) Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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To benefit from the vast business opportunities mentioned above, ICT businesses in Hong Kong are now expanding into the Mainland market under The Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA). Hong Kong service suppliers (HKSS) are allowed to apply for qualification certification of computer information system integration (SI Certification) and set up wholly-owned enterprises in the Mainland to provide software implementation services and data processing services. HKSS can also establish joint venture enterprises to provide database services, and online data processing and transaction processing services. Four local universities have established their industry, academic and research bases in the High-Tech Zone of Nanshan District in Shenzhen over the past two years to conduct R&D and collaborate with their Mainland counterparts. Over 40 joint projects with a total funding of over $250 million have been approved for supporting R&D collaboration between universities, research institutes and technology companies in the two places. Their initiatives in the Mainland are likely to expand in the near future.
Potential or new possibilities Under the 12th Five-Year Plan (2011-2015) submitted to the National People's Congress, China would be actively developing innovation and ICT. It was planned that the expenditure on R&D would account for 2.2% of GDP, and 3.3 patents would be generated per 10,000 people 80 . Accordingly the plan from the Ministry of Science and Technology, technology exchange and collaboration between the Mainland and Hong Kong would be strengthened. Technology professionals and organisations would participate in national technology development projects. J oint laboratories and research centres would be established. Collaborative R&D platforms would be developed. Large-scale facilities would be opened and shared. More science parks, incubation programmes and industry zones would be introduced. The planned technology initiatives are making significant progress in the Mainland. Hong Kong ICT businesses could leverage this strong momentum and capture the market opportunities.
Recommendations Hong Kong should continue to leverage its unique position by enabling ICT businesses to access Mainland opportunities. The benefits are: The export of ICT products and services to the Mainland market will become an economic growth engine for Hong Kong. Hong Kongs ICT industry will also be recognised as a key contributor to the rise in technology and economic power of China
80 Reference: Ministry of Science and Technology of the People's Republic of China, "", http://www.most.gov.cn/kjgh/ Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential areas of action 1. Continue to facilitate industry collaboration across the boundary In addition to CEPA measures, Hong Kong should strengthen Mainland collaboration in three key areas: cross-boundary e-commerce facilitation (e.g. mutual recognition of electronic signature certificates), technology collaboration / joint research projects (e.g. cloud computing services standards), and technology transfer and exchange (e.g. co-organising conferences, forums, exhibitions). 2. Facilitate more concerted effort in marketing and promotion of Hong Kongs ICT industry The efforts by various public bodies (e.g. Hong Kong Trade Development Council, Science Park, Cyberport, etc.) will become more concerted and better coordinated.
8.5 Transforming and integrating public services through technology Over the last decade, e-Government services have evolved from providing online static historical public information to a more citizen-centric interactive multi-media two-way customer experience, for both citizens and businesses. New and emerging technologies like mobile and other platforms, in particular, offer a transformational channel for more targeted services, anytime, anywhere. At the same time, the Smarter City provides an explosion in volumes of real-time data through intelligent sensors which offer valuable real-time location-sensitive information that can be instantly communicated to citizens through their mobile devices. As emerging technologies offer opportunities to improve and transform public services, capacity building in public sector agencies to deploy ICT effectively to support business needs will become increasingly important. Within the programme supporting this strategic thrust, the key initiatives that offer new and exciting opportunities include: Delivering mobile government to citizens and businesses at their fingertips easy access anywhere, anytime Integrating and targeting services based on tailoring to individual needs Establishing a Smarter City infrastructure (Internet of Things) and utilise Big Data and other technologies to manage the thriving, growing city
8.5.1. Delivering mobile government to citizens and businesses at their fingertips easy access anywhere, anyti me Current position in Hong Kong The Government has made great progress in providing online public services to address the needs of its citizens. The one-stop portal of Government information and e-Services, GovHK, was originally launched in 2007. In 2010, MyGovHK was introduced, providing single-access to a personalised layer of e-Government services, ranging from e-Tax, eRVD Bill to Registration of Outbound Travel Information. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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With the advance in mobile technology and Hong Kongs mobile penetration at 228.4%, in which over 64% 81 are smartphones, citizens behaviours have evolved and their expectations have increased for consuming information and accessing services through their mobile devices. Providing services through mobile channels are starting to become de rigueur for providers in both public and private sectors. To address this trend, the Government has been developing services with mobile as one of the optional channels (as mentioned in Chapter 3.4). United Nations Department of Economic and Social Affairs (DESA) identified five stages of a connected government and its provision of e-Government services: (1) emerging, (2) enhanced, (3) interactive, (4) transactional, and (5) connected. Using the definition of the five stages, the Governments strong foundation in e-Services and its deployment of mobile e-Services positions Hong Kong near the end of stage 3, moving into stage 4. Additional deployment and more prevalent usage of mobile e-Services will move Hong Kongs e-Government squarely into stage 4 Transactional.
Figure 30 Five stages of a connected government
Reference: United Nations DESA, e-Government Survey 2010, 2010.
81 Figures as of February 2013 provided by Office of the Communications Authority Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential and new possibilities In the past, multi-platform channels are usually developed after traditional channels have been successfully implemented. Going forward, multi- platform e-Services should be positioned not merely as an optional mode of access but one of the mandatory channels for all online e-Government services. This omni-channel approach provides an integrated, seamless experience for citizens whether they are accessing the e-Service online or through their mobile devices.
Recommendations Government should design and develop all online public services to be multi-platform by default, in parallel with other non-electronic channels. This ensures citizens can access Government services through channels that are most convenient to them. This will move Hong Kong Governments e-Services from United Nations DESAs connected government model from stage 3 into stage 4. The benefits are: Citizens will be able to be informed and receive services with immediacy and convenience. No longer are citizens restricted by time or location when they need to access public services; Transaction cost for citizens will be lowered as they do not need to be physically present at government premises to receive required services; Government benefits by having the ability to disseminate time-sensitive information as quickly as possible; and Digital divide could be addressed as the high mobile penetration rate reflects that citizens are relatively more comfortable in using mobile devices than traditional electronic access.
Potential areas of action 1. Create multi-platform solutions for existing public services across all Government departments, where possible The Government should review existing public services across all Government departments and develop a multi- platform strategy for ones that are applicable. The development of multi-platform solutions (including mobile apps, mobile web pages, mobile transaction, etc.) should be encouraged in all Government departments, with a set of guidelines or International experience and benefits South Korea provides frequently used civil application services through smartphones. Citizens can now view the status of their application anytime, anywhere, saving time as they no longer need to physically visit Government offices. Advancements in mobile security that encrypt data and communication and prohibit the storage of information address the security and privacy concerns that citizens may have with mobile applications. International experience and benefits Victoria, Australias The Better Health Channel mobile app locates health services such as doctors, dentists and pharmacies, creates personalised health alerts and notifications of UV, heat, smog and pollen, and accesses to a full range of health-related articles on the go. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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standards advised by the OGCIO. A reference example from the private sector is the development and adoption of mobile apps for e-banking. Many leading banks in Hong Kong have developed mobile apps for their customers. As a result, a wide range of mobile banking services (information enquiry, financial transactions, marketing / promotion, etc.) have become increasingly popular in Hong Kong. This trend in the private sector could potentially be extended to the public sector for mobile public e-services. 2. Make multi-platform by default for future e-Government services across all Government departments The Government should continue the effort to create multi-platform solutions for all new e-Government services going forward. Advanced multi-platform features like location-based services and Near Field Communication (NFC) can be considered, where appropriate, in the e-service. For launching future e-services, the multi-platform by default approach can be considered, which means to design for multi-platform from the start. This also implies that Government departments will need to consider how best to reach different segments of the community as there could be divergences in the technologies that are being used by different groups.
8.5.2. Integrating and targeting services tailoring to individual needs Current position in Hong Kong Organisation for Economic Co-operation and Development (OECD) defines integrated services as joined-up social services for the benefit of service users or providers. 82
The diagram below represents a one-stop service where citizens can secure the support they need, across all government departments, at one place. The ability to define exactly what the Service User outcomes for individual citizens determines the Government departments that need to be joined up.
82 Reference: OECD, Integrated Services and Housing Consultation. November 2012. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Figure 31 A basic model for integrated services delivery
Reference: OECD, Integrated Services and Housing Consultation. November 2012
The emergence of mobile, social, cloud, big data, and analytics have fundamentally changed how citizens live, work and interact. These technologies reset citizens expectations, requiring the Government to rethink how best to deliver its services. The ability to view a citizen holistically by synthesising all the engagement points with the Government will help formulate the types of integrated services that meet the citizens needs. The Government has established the Interoperability Framework (IF) to allow for easier data exchange between departments and related organisations, as well as the development of integrated e-Government services. Shared services between departments, e.g. human resources, financial management and procurement, have already taken advantage of IF and were deployed for public use. The Government has also embarked on a few major integrated services that serve this purpose. Electronic Information Management (EIM) A framework for all departments to effectively create, store, use, disseminate, retrieve and archive information so that it can be readily available for operational use, knowledge sharing and decision support. e-Procurement - A procurement system that enables the electronic transactions between the Government and the suppliers for purchases of goods and non- construction-related services. Government Human Resources Management Services (GovHRMS) A suite of shared ICT services on the cloud platform that supports HRM processes common to agencies.
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Potential and new possibilities While the Government has embarked on a few initiatives that allow it to better serve the citizens, there are still areas of improvement to deliver citizen-centric services. A framework, or blueprint, and tool that enable information sharing across Government departments, enhance the ability to deliver effective and timely services, and improve operational efficiencies will be needed.
Figure 32 Benefits from IT-enabled connected government
Reference: United Nations, Enterprise Architecture as Platform for connected government, 2010.
The Government has embarked on a few major integrated service initiatives with a focus on citizen-centricity. Going forward, the Government should accelerate its development of more joined-up, integrated services by further enhancing the interoperability and efficiency between Government departments.
Recommendations The Government should continue developing integrated citizen-centric services by enabling a common framework and platform so that an encompassing view of the citizens individual needs can be realised. The benefits are: Cross Government departments e-Services can easily take advantage of data that crosses different departments and bureaux with minimal technical barrier. The synthesisation of cross-department data ensures the development of public e- Services is more targeted toward citizens needs. Departments within the Government will operate with coherence, better business agility and operational efficiency. With common framework and infrastructure defined across departments, it will be less of a challenge to develop and offer cross-departmental e-services. An optimal balance between cost, efficiency, quality and security will be achieved by adopting the most suitable common delivery platform (e.g. cloud computing) for public e-services. This could also be recognised as a flagship showcase for Hong Kongs development into a leading hub for cloud computing and data centre. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Potential areas of action 1. Develop and promote more integrated solutions for e-Government services The need to continue developing joined-up public services requires a standard methodology for conducting architecture planning and implementation. A well- defined approach for integrated solutions will provides a holistic view of the entire Government with a common language that facilitates the creation of linkages and improves interoperability in the delivery of cross-departmental services. A reference example could be the provision of one-stop licensing services. It is possible that the licensing services of most Government departments, if not all, are consolidated and provided by a single body. It would be the single focus point to serve citizens for all licensing-related matters. Since it would be a cross- departmental initiative that requires a high-degree of cross- departmental cooperation and communication, a backend technology platform based on an Enterprise Architecture Framework (EAF) would be indispensible. With an EAF, the Government will be able to provide more electronic integrated and targeted services such as GovHK, MyGovHK, the one-stop company registration service, and the licensing portal for SMEs 83 , etc.) 2. Encourage the use of the Government Cloud Platform (GovCloud) and shared services by all Government departments GovCloud is already planned for hosting common e-Government services (e.g. EIM) due to the platforms agile and cost-effective service delivery model. All Government departments should continue to leverage this computing platform, where possible, to implement future unique IT or joined-up public service initiatives.
8.5.3. Establishing a Smarter City infrastructure through further digitisation and Internet of Things and utilise Big Data to manage the thri ving and growing city Current position in Hong Kong Hong Kong is a populous modern city and has a need to manage its resources effectively in order to improve the citizens quality of life. The emergence of connected sensors embedded into everyday objects provides the intelligence to make better informed decisions to address this need. The Government foresaw the importance of these intelligent sensors, or Internet of Things (IoT), and established the Hong Kong RFID Centre back in October 2008 with Hong Kong Science and Technology Parks Corporation and GS1 Hong Kong. Over the years, the technology was implemented in warehouse management, luggage handling, trade and logistics and livestock control, among others. Since 2012, Hong Kong International Airport (HKIA) uses RFID baggage tags on 70,000 baggages from more
83 https://www.success.tid.gov.hk/tid/eng/blics/index.jsp Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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than 60 airlines a day. HKIA uses more than 26 million RFID tags each year, making it the airport that applies RFID baggage handling system with the largest scale. 84
Hong Kong has also started the deployment of these advanced sensors in government operations. For example, the Transport Department (TD), through deployment of Intelligent Transport System (ITS) for better traffic management, has installed sensors to collect real time traffic data in selected areas. These data are processed to provide real-time traffic information to commuters through ITS applications such as Hong Kong eRouting, Speed Map Panels, J ourney Time Indication System, etc. Much of the information can also be downloaded through the Data.One portal for free, for development of applications by private sector. If there is increase in deployment of advanced sensors around the city combined with location-based or other value-added services, commuters can further benefit from having access to real-time traffic information to better plan their journey around the city. Through increased digitisation of Government operations through either the normal progression of e-Government or the deployment of sensors, the volume of data generated increases exponentially every year. It will be highly beneficial for the Government to find ways to harness the interrelationships within the data across the Government and turn them into insights that can be acted upon.
Potential and new possibilities Interconnected sensors, along with Big Data, will have an enormous impact on how the Government operates, makes decisions and delivers services to its citizens. The superior value of synthesising and analysing the volume of data generated by these sensors can only be realised once Government departments have adopted the deployment of sensors with a defined set of standards and guidelines on how the data should be captured and processed. For example, the Government could explore optimising traffic flow based on the weather and traffic data collected from Hong Kong Observatory and Transport Department respectively. The Government already has significant experience in the usage of RFIDs and has started to explore the use of more advanced sensors. The ability to capture and synthesise all the data to gain valuable insight and tackle city-wide problems will bring tremendous value to Hong Kongs citizens and businesses.
84 Reference: Logistics and Supply Chain Management (LSCM) website, http://www.lscm.hk/eng/channel.php?channel=press-release, 3 April 2012. International experience and benefits To prevent sums as large as 285 billion Euros, or 18% of its GDP, in tax evasion, Italys Revenue Agency has started using data analytics to compare taxpayers income declarations with their expenditures to determine if an initial enquiry and investigation are warranted. Citizens will be given a chance to explain any discrepancies. Statistics from five geographically defined areas of Italy and seven categories of expenditures are used in this solution. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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In addition, the Government should continue to explore other innovative ways to use ICT to drive operational efficiency, environmental sustainability, and cost savings. For example, the Government could continue to identify areas where digitisation of documents (i.e. paperless solutions) or building information modelling will realise additional efficiency and savings.
Recommendations We propose the Government to establish a Smarter City infrastructure (Internet of Things) and explore the use of Big Data and other productive technologies to manage this thriving, growing city. The benefits include: Both citizens and the Government can make better informed decisions with fact- based reasoning Government will be able to anticipate problems across all Government departments and coordinate resources effectively Government will be able to showcase how IoT can be implemented effectively and how the technology can enable efficient government operations to encourage further participation by other Government departments and the private sector Government can derive data insights to identity future trends and citizens needs to formulate citizen-centric policies and services Government will be able to reduce the volume of manual tasks and paper-based transactions, leading to a decrease in potential errors More convenience to citizens including the optimisation of traffic in Hong Kong More environmentally friendly and sustainable city.
Potential areas of action 1. Promote the deployment of sensing or IoT devices In order to gain meaningful insight into all aspects of the Citys activities, the collection of data from sensing devices across all Government departments will be needed. Every Government department should be encouraged to deploy sensors where possible in order to capture the data required for further analysis. To accelerate the adoption and deployment of IoT devices, the Government could consider deploying IoT devices with Government departments that have an immediate need first. For example, IoT can be used to optimise traffic in Hong Kong. It is also noted that the large-scale implementation of IoT in the near future will require substantial investment from the Government. Therefore Government departments will be International experience and benefits The Rio de Janeiro Intelligent Operation Centre (IOC) monitors multiple data feeds for weather, traffic, police, and medical services on a real-time basis and anticipates any looming problems. It then puts defences in place to diminish the impact from the approaching problems. Besides emergencies, it coordinates the activities of more than 30 municipal and state departments plus private utility and transportation companies to integrate all of the functions of a city in a single, holistic digital command-and-control system. Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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encouraged to study, deploy and pilot-test IoT solutions with more cost-effective approaches. Small-scale deployment or trial solutions which are less costly can be experimented and implemented in the early / interim stages. As eventually the solutions become more mature with lower average cost, large-scale IoT implementation will take place. 2. Encourage data sharing between Government departments Through the proliferation of sensing devices installed by various Government departments, a great deal of data will be generated. Therefore, it is important for the data to be readily available across the Government so that it can be synthesised to address different issues and challenges facing the City. The Government can consider exploring the possibility of adopting big data analytics on a few focus areas, such as transport and weather related data. It should also be noted that the sets of data to be shared among Government departments need to be qualified to exclude sensitive or personal data, which is protected under the Personal Data (Privacy) Ordinance. 3. Explore and encourage further productive use of ICT The use of ICT and digitisation technologies are pervasive and can be further exploited in many different areas. Government departments should continue to be encouraged to explore other innovative uses of ICT to realise the benefits from operational efficiency, cost savings and other social-economic benefits. For example, further usage of paperless solutions in paper-intensive departments or functions or building information modelling (BIM) across all Government departments would help minimise errors that stem from manual administrative tasks, improve operational efficiency and promote environmental sustainability. 4. Promulgate standards, approach and guidelines for Big Data across Government departments In order to gain the insight and value promised by Big Data, the Government needs to understand and decide on the standards, approach and guidelines to adopt. The Open Data Foundation, National Institute of Standards and Technology (NIST), The Cloud Security Alliance, Apache Software Foundation, and OASIS are organisations who are driving the Big Data standardisation process while TechAmerica Foundations Demystifying Big Data (http://www-304.ibm.com/industries/publicsector/fileserve?contentid=239170) outlines the technology, policies and roadmaps that will need to be considered to exploit the use of Big Data. The Government can consider evaluating and adopting these standards in its use of Big Data and analytics.
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9. Summary Vision Mission Strategic Thrusts Initiatives Areas of Action
1. Digital ID (a) Make Digital ID freely available and more convenient to use for all citizens (b) Continue the growth in development of e-Government using Digital ID (e.g. e-Citizen account) (c) Work with banks to launch e-cheque
2. Access to technology and (a) Encourage and facilitate ICT adoption for persons with disabilities broadband (b) Further promote web accessibility to the community I Empowering everyone through technology (c) Encourage more leverage of mobile technology in digital inclusion programmes (d) Facilitate internet access through Wi-Fi
3. Broadband for schools (a) High bandwidth broadband access to all schools and all classrooms (b) Equip every classroom with the required technology for teachers and students to access and participate in interactive on-line learning (c) Support and training for teachers to enable themto make most effective use of this radically different learning and teaching environment
4. Programming in schools (a) Promote the benefits of programming education (b) Strengthen programming learning for children (c) Support teachers in teaching programming (d) Encourage high-quality online education for students To leverage ICT to benefit the community
To unleash the power of innovation for business success
To develop a sustainable and vibrant ICT Industry
To enhance public services leveraging technology
5. Information for tourists and citizens (a) Facilitate more mobile applications for visitors and citizens leveraging Wi-Fi services
1. Innovative and collaboration (a) Strengthen technology transfer from universities II Igniting business innovation through exploitation of technology platform (b) Drive business excellence with a broader definition of innovation
2. SME cloud platform (a) Promote SME cloud platform (b) Encourage collaborative information sharing on business and technology innovation for SMEs
Smarter Hong Kong, Smarter Living 3. Make available PSI (a) Make PSI electronically available in machine readable formats for easy re-use as default (b) Encourage other public organisations to release PSI (c) Prioritise the provision of PSI for high value-added services
1. Startup eco-system (a) Build a digital platformfor technology startups (b) Facilitate startups to foster entrepreneurial culture and encourage cross-fertilisations of ideas
2. ICT talent development (a) Develop ICT professional recognition framework (b) Enhance training with industry collaboration (c) Enhance ICT professional image
III Supporting a thriving Hong Kong ICT Industry and R&D 3. Centre of Excellence for multi-platformapps (a) Provide incentives to drive multi-platformsolution development for the underprivileged groups (b) Facilitate experience sharing and publicise success cases (c) Explore and facilitate multi-platformbusiness solutions for transactions and payments
4. Data centre and cloud computing (a) Promote Hong Kong as a prime location for data centres development (b) Develop and promote cloud computing standards, best practices and guidelines for service consumers and providers (c) Lead by example in adopting cloud services across the Government
5. Digital Media Centre of Excellence (a) Enable connections and collaboration between media content providers with ICT companies to create a cluster of digital media companies (b) Facilitate experience sharing and publicise success cases
6. ICT Industries to access Mainland (a) Continue to facilitate industry collaboration across the boundary (b) Facilitate more concerted effort in marketing and promotion of Hong Kongs ICT industry
1. Mobile Government services (a) Create multi-platformsolutions for existing public services across all Government departments, where possible IV Transforming and integrating public services through technology (b) Make multi-platform by default for future e-Government services across all Government departments
2. Integrated and targeted services (a) Develop and promote more integrated solutions and services (b) Encourage the use of the Government Cloud Platform(GovCloud) and shared services by all Government departments
3. Smarter city Infrastructure (a) Promote the deployment of sensing or IoT devices (b) Encourage data sharing between Government departments (c) Explore and encourage further productive use of ICT (d) Promulgate standards, approach and guidelines for Big Data across Government departments Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Appendix A Acronyms
APICTA Asia Pacific Information and Communications Technology Awards ASTRI Hong Kong Applied Science and Technology Research Institute CaaS Cooperation as a service Caltech California Institute of Technology CCMF Cyberport Creative Micro Fund CEPA Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) CET Continuing Education Training CIO Chief Information Officer CITG Composite IT Grant CSDA Certified Software Development Associate CSDP Certified Software Development Professional CUHK The Chinese University of Hong Kong D21SAC Digital 21 Strategy Advisory Committee DESA United Nations Department of Economic and Social Affairs EA Enterprise architecture EGIS e-Government Infrastructure Service eHR Electronic Health Record EIM Electronic Information Management GDP Gross Domestic Product GovCloud Government Cloud Platform GovHRMS Government Human Resources Management Services GovWiFi Government Wi-Fi Programme HIV Human Immunodeficiency Virus HKD Hong Kong dollar HKDSE Hong Kong Diploma of Secondary Education HKEAA Hong Kong Examinations and Assessment Authority HKIA Hong Kong International Airport HKMA Hong Kong Monetary Authority HKPC Hong Kong Productivity Council HKSAR The Hong Kong Special Administrative Region HKSS Hong Kong service suppliers HKSTP Hong Kong Science & Technology Parks HKTB Hong Kong Tourism Board HKTDC Hong Kong Trade Development Council HKU The University of Hong Kong IaaS Infrastructure as a service ICT Information and communications technology ID Identity IF Interoperability Framework IMD The International Institute for Management Development IOC Intelligent Operation Centre IoT Internet of Things IP Intellectual property ITC Innovation and Technology Commission ITF Innovation and Technology Fund ITMU Information Technology Management Unit ITS Intelligent Transport System Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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ITTP IT Training Programme MEC Mobility Experience Centre MIT Massachusetts Institute of Technology MOOC Massive open online course NFC Near field communication NGO Non-government organisation NICF National Infocomm Competency Framework NIST National Institute of Standards and Technology NYC New York City OECD Organisation for Economic Co-operation and Development OFCA Office of the Communications Authority OGCIO The Office of the Government Chief Information Office OSS Open Source Software P2P Peer-to-Peer PaaS Platform as a service PIN Personal identification number PLE Personal Learning Environment POI Point of Interest POS Point-of-sale PSI Public sector information PSKL Partner State Key Laboratory PWGSC Public Works and Government Services Canada R&D Research and development RFID Radio-Frequency Identification SaaS Software as a service SBS Small Business Services SETDA The State Educational Technology Directors Association SI System integration SMBA Small and Medium Business Administration SME Small and medium enterprise SSP Sector-specific Programme STEM Science, Technology, Engineering and Mathematics SWOT Strengths, weaknesses, opportunities and threats SyNAPSE Systems of Neuromorphic Adaptive Plastic Scalable Electronics TCFS Guangdong/Hong Kong Technology Cooperation Funding Scheme TD Transport Department The Government Government of the Hong Kong Special Administrative Region UGC The University Grants Committee UK United Kingdom of Great Britain and Northern Ireland US United States of America W3C The World Wide Web Consortium WCAG Web Content Accessibility Guidelines WEF World Economic Forum Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Appendix B Secondary source documents reviewed
Office of the Communications Authority, Key Communications Statistics (http://www.ofca.gov.hk/en/media_focus/data_statistics/key_stat/index.html), Akamai, State of the Internet, 4th Quarter, 2012 Report OGCIO official website Facts & Figures, Government IT Expenditure The International Institute for Management Development (IMD), World Competitiveness Yearbook 2013 INSEAD and World Economic Forum (WEF), Global Information Technology Report 2013 Census and Statistics Department, Hong Kong Innovation Activities Statistics 2011 Panel on Information Technology and Broadcasting (Papers), http://www.legco.gov.hk/yr11- 12/english/panels/itb/papers/itb_eb.htm Reference: http://www.legco.gov.hk/yr12-13/english/panels/itb/papers/itb0610cb4-711-4-e.pdf OGCIO, Study on Digital Inclusiveness in Hong Kong Gartner, Top 10 Strategic Technology Trends for Smart Government 2013 IDC, Worldwide Smart Connected Devices Market Forecast Unit Shipments (Millions), 4Q 2012 IDC, Android Rises, Symbian^3 and Windows Phone 7 Launch as Worldwide Smartphone Shipments Increase 87.2% Year Over Year. 7 February 2011. IDC, PC Market Records Modest Gains during Fourth Quarter of 2010. 12 J anuary 2011. IDC, Worldwide Smart Connected Device Market Crossed 1 Billion Shipments in 2012, Apple Pulls near Samsung in Fourth Quarter 26 March 2013. Mark van Harmelen, Personal Learning Environment, IEEE Computer Society. 2006. Forrester Research, Sizing the cloud Gartner, Forecast Overview: Public Cloud Services, Worldwide, 2011-2017, 1Q13 Update Rackspace, Economic Impact of Cloud Blog Cisco, The Internet of Things How the Next Evolution of the Internet Is Changing Everything Cisco, The Internet of Things How the Next Evolution of the Internet Is Changing Everything Gartner, Worldwide Wireless E-Mail Users to Reach 1 Billion by Year-End 2014 Gartner, World of Work Will Witness 10 Changes During the Next 10 Years ComScore Media Metrix, Its a Social World: Top 10 Need-to-knows about Social Networking and where its headed. Burson-Marsteller. Global Social Media Checkup 2012 International Telecommunication Union (ITU), Measuring the Information Society 2011 InvestHK, Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong China Intellectual Property, "Hong Kong IP development: fast in speed and subtle in quality" Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Census and Statistics Department Report on 2012 Annual Survey of Companies in Hong Kong Representing Parent Companies Located outside Hong Kong Forbes, The world's top 4 tech capitals to watch (after Silicon Valley and New York) http://www.forbes.com/sites/karstenstrauss/2013/03/20/the-worlds-top-4-tech-capitals-to-watch-after-silicon-valley-and- new-york/2/ OGCIO, IT Manpower Workshop report Trade and Industry Department, Fact Sheets Trade and Industry 2012 Economist Intelligent Unit, Chinas retail market: Double dragon Bauhinia Foundation Research Centre, Guangdongs Economic Transformation in the 12th Five-Year Plan and Hong Kongs Opportunities The Economist, Alibaba The worlds greatest bazaar CNN, China looks to lead the Internet of Things Ageing Research Review, Next-generation sequencing in aging research: emerging applications, problems, pitfalls and possible solutions Hong Kong Population Projections 2007-2036 released by the HKSAR Government, http://www.info.gov.hk/gia/general/200707/16/P200707160137.htm International Monetary Fund, April 2013 World Economic Outlook (WEO) IDC, China ICT Spending 2012 2016 Forecast and Analysis HKSAR Government, Hong Kong Population Projections 2007-2036, http://www.info.gov.hk/gia/general/200707/16/P200707160137.htm The Chartered Institute of Taxation (UK), Digital Exclusion South China Morning Post, Alibaba celebrates 1.2 million users on Taobao in Hong Kong Hong Kong Monetary Authority A New Era for Retail Payment: Building a Diversified Platform for Mobile, Internet- based and Electronic Payments Education Bureau IT in Education Section reference document. 2012 Hong Kong Examinations and Assessment Authority (HKEAA), 2012 HKDSE Entry Statistics OFCA, Guidance Note for Submission of Application for Installing Micro-cell Base Station on Highway Facilities or on Unleased and Unallocated Government Land OECD, Innovation and Growth Rationale for an Innovation Strategy Trade and Industry Department, http://www.success.tid.gov.hk/english/lin_sup_org/gov_dep/service_detail_6863.html Hong Kong Productivity Council Hong Kong Cloud End-User Survey EuroGeographics (http://www.eurogeographics.org/products-and-services/euroglobalmap) Census and Statistics Department, Hong Kong as an Information Society (2013 edition) 2012 VTC Manpower Survey Report HKSAR Government, Hong Kong: The Facts Employment, http://www.gov.hk/en/about/abouthk/factsheets/docs/employment.pdf OECD, Innovation and Growth - Rationale for and Innovation Strategy Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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Department for Business, Innovation and Skills of the UK Government Innovation and Research Strategy for Growth Information and Technology Commission, Innovation and Technology Fund Statistics of Approved Projects INNO-Grips, Global Review of Innovation Policy Studies Korea: Shifting SME policies towards competitiveness and growth Office of Communications Authority, Key Statistics for Telecommunications in Hong Kong http://www.ofca.gov.hk/filemanager/ofca/en/content_108/wireless_en.pdf Department of Statistics, Singapore, http://www.singstat.gov.sg/statistics/browse_by_theme/national_accounts.html Industry Canada, http://www.ic.gc.ca/eic/site/ict-tic.nsf/eng/h_it05864.html US Department of Commerce, http://www.bea.gov/industry/gdpbyind_data.htm" Switzerland Global Enterprise, http://www.switzerland-ge.com/fr/filefield-private/files/41328/field_blog_public_files/8025 Cushman & Wakefield, Data Centre Risk Index Create HK, Hong Kong: The Facts (October 2012) HKTDC, http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Film- Entertainment-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X0018PN.htm Ministry of Commerce, Peoples Republic of China, http://english.mofcom.gov.cn/article/statistic/foreigninvestment/201301/20130100012618.shtml FINPRO, Internet of Things China, 2011 International Data Base, the US. Census Bureau Ministry of Science and Technology of the People's Republic of China, , http://www.most.gov.cn/kjgh/ United Nations DESA, e-Government Survey 2010, 2010 OECD, Integrated Services and Housing Consultation United Nations, Enterprise Architecture as Platform for connected government Logistics and Supply Chain Management (LSCM) website, http://www.lscm.hk/eng/channel.php?channel=press-release
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Appendix C Acknowledgement
We would like to express its gratitude to all those who helped and shared their views in the course of this study: 1 Digital 21 Strategy Advisory Committee and its Task Forces 2 Expert Group on Cloud Computing Services and Standards and its Working Groups 3 Accenture Company Limited 4 Arcotect Limited 5 Certizen Ltd. 6 CITIC Telecom International CPC Limited 7 CSL Ltd 8 Digi-Sign Certification Services Ltd. 9 DMX Technologies (Hong Kong) Limited 10 e-Business Coordinators & Heads of ITMU of Government Departments 11 Hewlett-Packard HK SAR Limited 12 HKU SPACE 13 Hong Kong Applied Science and Technology Research Institute Company Ltd. 14 Hong Kong Computer Society 15 Hong Kong Computer Society CIO Board 16 Hong Kong Cyberport Management Company Ltd. 17 Hong Kong Information Technology Federation (HKITF) Ltd 18 Hong Kong Information Technology Joint Council 19 Hong Kong Institution of Engineers - IT Division 20 Hong Kong Internet Registration Corporation Ltd. 21 Hong Kong Internet Service Providers Association (HKISPA) 22 Hong Kong Linux Industry Association 23 Hong Kong Next Generation Internet Society 24 Hong Kong Productivity Council 25 Hong Kong Science and Technology Parks Corporation 26 IBM China/Hong Kong Limited 27 Information and Software Industry Association (ISIA) 28 Information Systems Audit and Control Association China Hong Kong Chapter Consultancy Services for the Digital 21 Strategy Review for the Office of the Government Chief Information Officer Strategy Report
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29 Integrated Enterprise Solutions Limited 30 Internet Society Hong Kong 31 Microsoft Hong Kong Ltd 32 NCSI (HK) Limited 33 Professional Information Security Association 34 Security Consulting Services Ltd 35 The British Computer Society (Hong Kong Section) 36 The Chinese University of Hong Kong 37 The Hong Kong Electronic Industries Association (HKEIA) 38 The Hong Kong Internet Exchange 39 The Hong Kong Polytechnic University 40 The Hong Kong University of Science and Technology 41 The Institute of Electrical and Electronics Engineers, Inc., Hong Kong Section 42 The University of Hong Kong 43 Vocational Training Council
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Appendix D ICT-related measures under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) CEPA offers specific opportunities for Hong Kongs ICT industry in seeking to explore further economic collaboration with the Mainland, which include: Hong Kong service suppliers can apply for the computer information system integration (SI) qualification certification in accordance with the provisions of the relevant regulations and rules promulgated by the Mainland. (Under CEPA). Hong Kong residents are allowed to take examinations for proficiency in computer technology and software. An examination centre has been established in Hong Kong to facilitate Hong Kong IT professionals to take the China Qualification Certificate of Computer and Software Technology Proficiency. (Under Supplement II to CEPA). Hong Kong permanent residents with Chinese citizenship are allowed to set up individually owned stores in the Mainland to provide computer repair services. (Under Supplement III to CEPA). Hong Kong service suppliers are allowed to set up wholly-owned enterprises in the Mainland to provide data processing and software implementation services. (Under Supplement IV to CEPA). Mutual recognition of electronic signature certificates issued by Guangdong and Hong Kong. (Under Supplement V to CEPA). Hong Kong service suppliers are allowed to provide cross-boundary database services in Qianhai and Hengqin on a pilot basis. Hong Kong service suppliers are also allowed to set up joint venture enterprises in the Mainland to provide database services (confined to internet data centre services, store and forward services, and content services only), with shareholding not exceeding 50%. (Under Supplement IX to CEPA). Hong Kong service suppliers (HKSS) are allowed to set up joint venture enterprises in Guangdong to provide online data processing and transaction processing services (confined to e-commerce business websites only). Their shareholding should not exceed 55%. HKSS are allowed to employ contractual service providers to provide such services in the mode of movement of natural persons. (Under Supplement X to CEPA). Under certification, accreditation and standardisation management, Guangdong and Hong Kong will promote efficiency of the supply chain of the commodity trade between the two places by opening up the commodity information platform to members of the commodity bar code system of the Hong Kong Special Administrative Region to enjoy the same services as those system members in the Mainland. Both sides will also strengthen the sharing of commodity information resources with a view to achieving bilateral verification and inspection of commodity information circulated between the two places by employing the global uniqueness of commodity barcoding and to jointly combat counterfeit commodities so to optimise the business environment. (Under Supplement X to CEPA).
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Appendix E Location of Wi-Fi hotspots in Hong Kong GovWiFi premises Other registered Wi-Fi premises