A White Paper by the Australian Information Industry Association
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Building Australia’s Digital
2020
Future in a Post-COVID World
A White Paper by the Australian Information Industry Association
Contents
Introduction & Steering Committee 1
Summary of Recommendations 4
How COVID-19 changed the way Australians live and work 9
Drivers
1. Harnessing technology and innovation to kick-start the economy 15
2. Supporting local skills development to secure the future 21
3. Meeting evolving customer and citizen needs 29
4. Securing our digital infrastructure 33
5. The role of government incentives to ensure Australian 39
competitiveness in the Australian ICT and SME sector
6. The role of government in supporting Australian SMEs, citizens 43
and business to reinvent themselves in a post COVID world
Appendices
A. About the Australian Tech sector 48
B. AIIA Survey – Digital State of the Nation Report 2020 49
USE OF THE AIIA WHITE PAPER
This publication is provided by the AIIA for general guidance only and does not constitute the
provision of tax, legal, investment or product advice. The information is provided “as is” with
no assurance or guarantee of completeness, accuracy or timeliness of the information, and,
to the extent permitted by law, without warranty of any kind, express or implied. No part of
this publication may be quoted, cited, excerpted, reproduced, stored in a retrieval system
or database, distributed or transmitted in any form or by any means without the prior written
permission of the AIIA. Requests should be submitted in writing to Simon Bush at simon@aiia.com.
au outlining which excerpts you wish to use and the context in which you wish to use it.
DISCLAIMER
This white paper does not necessarily reflect the views and recommendations of individual
members of the White Paper Steering Committee.
Building Australia’s Digital Future in a Post-COVID World
Introduction
Australia is the lucky country and through this period. This means parts of our
economy and workforce should transition to
we now have a unique window of
increase sovereign capabilities, seek resilience
opportunity to shape the future of in global and local supply chains and digitise
generations who follow. our economy.
Australia truly is the lucky country. By any The COVID-19 pandemic has driven innovation
measure, Australian institutions and society and overnight changes in how government
have proven themselves to be the envy of the and businesses operate – leveraging the power
world. Leading into the COVID-19 pandemic of modern digital technologies.
there were concerns over our political
leadership with six changes in Prime Ministers The new normal sees digital transformation
in a decade, the perceived demise of our accelerate, further opening Australian
institutions and our own perception of ourselves. businesses up to global competition, but
equally providing opportunities. Government
Today, Australia is leading the globe as part of will have a critical role in enabling the future,
the “first movers club” of nations dealing with not just through investment, but also lead
and responding successfully to the COVID-19 through new regulation, policy and legislation.
pandemic. We have flattened the curve, have
managed our economy well over the past Recent events have highlighted the need to
decade so that governments could direct compliment the existing IT ecosystem, which
billions of dollars into the economy to support includes a strong and valuable multi-national
workers and businesses and we have one of the presence, with additional sovereign capabilities
best health systems in the world. Our political in the digital supply chain. Australia must have
and other institutions have led in this time of the skills and innovation ecosystem to support
crisis, whereas many other countries have a globally competitive economy as this step
struggled. change into digital transformation occurs.
Sovereign capability includes the critical large
With this initial success, it is imperative that we investments that multi-national corporations
as a nation capitalise on this momentum and make in Australia and the corresponding IP
now focus on establishing the foundations for transfer and significant local employments that
a new generation of economic growth . The comes with these investments. Investments
opportunities the pandemic has presented into Australia need to be fostered and
for fast action and leadership are significant, encouraged to secure both local capability
but the opportunity has never been greater to and economic growth along with measures to
get it right. It is in this context - both in the short support domestic and SME growth; the two are
and long term – that the AIIA submits this white symbiotic.
paper as a contribution to the national debates
now occurring within all levels of Federal, State
and Territory Government.
Our future economic prosperity centres on our
emerging from the pandemic successfully and
in a way that responds to the opportunities and
weaknesses that have prevailed themselves
Building Australia’s Digital Future in a Post-COVID World 1
Successive Australian governments have systems should be seen as nation building
invested heavily in their ICT capability through infrastructure that aid rapid policy design and
both large scale transformation projects and be responsive to crises.
through more agile citizen focused digital
projects. These collective investments have Those countries, organisations and people
proved themselves during the pandemic and that recognise the capability of digital
enabled the Federal Government to quickly technology on how they can shape and
get the cashflow boost to businesses and assist organise themselves will be those that thrive
in wages through the JobKeeper scheme as in the 21st Century and beyond. We have
well as assist the unemployed through the a once in lifetime opportunity for major
Jobseeker payment. The ATO and Centrelink IT reform and restructure of our economy and
payment systems allowed for this rapid policy society. The AIIA White Paper will seek to give
response which other countries have not been recommendations for governments to consider
able to match. Continued digital government and adopt.
investment in IT capability and payments
AIIA White Paper Steering Committee
• Bridget Tracy – Chief Digital Officer, IBM
• Rupert Taylor-Price – CEO, Vault Cloud
• Mike Jones – Managing Partner, A/NZ Government & Public Sector, IBM GBS
• Kristina Kipper – Partner, KPMG Australia
• Andrea Culligan – Partner, Deloitte
• Chris Peck – Executive GM, Public Services, SAP Australia
• Byron Riessen – Principal, Deloitte Consulting
• Kate Healy – Principal Cyber Security Strategist, Telstra Enterprise, Telstra
• Jennifer Mulveny – Director, Government Relations and Public Policy, Asia-Pacific, Adobe
• Simon Bush – GM Policy and Advocacy, AIIA
About the AIIA We do this by delivering outstanding member
value by providing a strong voice of influence;
The Australian Information Industry Association building a sense of community through events
(AIIA) is Australia’s peak representative body and education; enabling a network for
and advocacy group for organisations in the collaboration and inspiration; and developing
digital ecosystem. Since 1978 AIIA has pursued compelling content and relevant and
activities to stimulate and grow the digital interesting information.
ecosystem, to create a favourable business
environment for members and to contribute to For more information please contact Simon
Australia’s economic prosperity. Bush, AIIA’s GM of Policy and Advocacy, via
email simon@aiia.com.au.
Building Australia’s Digital Future in a Post-COVID World 2
Summary of Recommendations
This section provides a summary of handle, manage, protect and use customer
recommendations made throughout and citizen data.
the paper. They have been broken into
immediate short-term options for governments That Government set-up a “digital standards
to consider as part of upcoming budget commission” that is responsible for creating
and policy deliberations that will assist and enforcing a set of national standards for
productivity, grow the economy and support digital infrastructure (“the digital backbone” as
job creation. Medium term opportunities are referenced in Driver 1) across the public and
for consideration over the next 12-18 months private sector – including setting thresholds
and longer term present structural and policy at which these standards would apply across
changes for consideration in 24 months. industry.
The recommendations in this paper fall broadly That the Department of Prime Minister and
into 4 key areas, these being: Cabinet and the Department of Home Affairs
• Building a National Digital Backbone engage with the AIIA when reviewing the
• Building a Digital Australia that is Secure and Critical Infrastructure List in determining whether
Resilient it supports both the immediate and long-term
• Building Digital Skills for the future development of the digital economy
• Tax, Incentive and Government
procurement reform Building a Digital Australia that is Secure and
Resilient
Short-term
That Australia’s 2020 Cyber Security strategy
Government continue to promote technology be extended to include business resiliency and
enabled services that support citizen health enhance support to Australian SMEs through
outcomes and convenience that were Cyber awareness and support programmes
accelerated during COVID. and continue to invest in Cyber Security skills, in
particular the area of Operational Technology
Building a National Digital Backbone security.
That the Prime Minister urgently appoint a That government continue the collaborative
senior Minister, supported by the Department learning structure created through the
of Prime Minister and Cabinet and reporting national Joint Cyber Security Centres network
directly to the Prime Minister. This Minister’s role to encourage knowledge transfer between
will be to advise Cabinet and have a whole of government and industry around both cyber
government and coordination role centred on resiliency and cyber incidents and extend this
the digital economy and policies. support to SMEs
That Government lead, in collaboration with That the Federal Government introduce a
industry, the development of a data sharing technology enablement tax incentive to assist
code of conduct (along the lines of other small business to become better technology
industry codes of conduct), that sits within enabled.
the current privacy legislation and provides
guidelines as to how government and industry
Building Australia’s Digital Future in a Post-COVID World 4
Building Digital Skills for the future Medium-term
That the up-skilling of industry trainers be Building a National Digital Backbone
accelerated by reducing the mandatory
Certificate IV in Training and Assessment course That the government and industry partner
duration to 6 weeks rather than the current to drive investment and policy to support
average of 11 months. regionalisation of government services and
industry.
That a nationally recognised lifelong learning
framework with skills passport be implemented That Government (state and federal) set the
to capture digital skills across VET, University and example by being a “first mover” investing
micro-credential certifications. in and embracing technology and the new
ways of working, and in doing so attracting
That the current JobKeeper payment scheme investment from other sources (public and
be updated with a portion of the current private), supporting competitiveness, enabling
funding allocated to training credits for scalability and empowering innovation for
employers to re-skill their workforce in critical entrepreneurs and Australian businesses.
technical skills
That Government to continue, expand on and
That the Australian Industry Skills Council update accelerate open data efforts, recognising the
the ICT Industry Training Package, so that ICT economic value unlocked to all companies.
training and qualifications in the VET sector
better reflect industry skills requirements. That Government commit to accelerating the
digital inclusion agenda, closing the divide by
Tax, Incentive and Government procurement providing all Australians equal access to the
reform benefits of digital transformation.
That AusIndustry consult with at least one That Government support investment in an
relevant industry expert before making a formal Australian data driven supply chain by:
finding against a company applicant.
• Improve the security and movement
That AusIndustry initiate and complete reviews of goods by expanding the scope of
within 90 days of receiving the R&D Registration the proposed National Freight Hub. The
application. proposed Federal Government National
Freight Hub platform has been scoped to
That a quarterly credits program be introduced provide more efficient reporting of freight
to enable companies to access the RDTI during statistics to Government to enable better
the income year. economic forecasting and infrastructure
planning. There is an opportunity to expand
That a new dedicated software development the scope to support a unified platform
tax incentive be created, separate to RDTI. for the industry to share freight visibility
data and ensure privacy for drivers, a
major concern across the industry[1] and
confidentiality of commercial information.
• Increase the availability of data for
government and industry by mandating
Building Australia’s Digital Future in a Post-COVID World 5
vehicle telemetry and a standardised Secure remote working, access to secure
minimum set of real-time data reporting on infrastructure and robust business continuity
trucks across light-rigid class and all heavier solutions are key to supporting Australian
class and expand acceptable telemetry businesses but investment in these areas will
technology to low cost options. also stimulate employment, particularly across
technology innovators and incubation hubs.
• Integrate existing individual State, Federal
and agency-level biosecurity digitisation Building Digital Skills for the future
initiatives into a single inbound biosecurity
automation program under the control of Issue government credit to employees to
the National Biosecurity Council, with a key promote lifelong learning and up-skilling in
focus on a framework to integrate existing critical technical skills
disparate platforms and sources of data
intelligence. Tax, Incentive and Government procurement
reform
• Partner with industry to develop smart
factories and increased employment. That the Federal Government introduce a
collaboration tax incentive to incentivise
Accelerate the evolution of Intelligent Transport business to collaborate with Australian research
system infrastructure by: institutions.
a) ensuring new physical transport That incentives be provided to support small
infrastructure includes future-proofing businesses to invest in cyber security upskilling.
investment in intelligence to optimise the That the Federal Government introduce an
safe flow of goods and people; innovation tax incentive to incentivise non-R&D
b) invest in uplift of intelligent management based innovation.
capability for existing freight transport
infrastructure; and That the Federal Government introduce a
c) leverage the Inland Rail program as knowledge box tax incentive to encourage
a hub for development and testing of business to keep intellectual property.
new systems, platforms, processes and
technology to be later diffused through the That the Federal Government introduce a
broader freight ecosystem in Australia. higher level of R&D tax benefit for projects of
strategic importance to Australia
Building a Digital Australia that is Secure and
Resilient Long-term
That Policy reform and investment be initiated Building a National Digital Backbone
to attract global cybersecurity talent to address
the immediate skills shortage. That Government to initiate a joint task
force with private sector, state and federal
Invest in technology innovators and continue representatives, to establish a digital backbone
to fund cyber security as one of the six Industry strategy and roadmap that can support
Growth Centres to promote the nascent business and citizen digital infrastructure needs
Australian cyber security ecosystem and to 2030 and beyond.
promote the adoption of better security
hygiene across other industry sectors. • This task force will complete a feasibility
study to build out the digital backbone,
Building Australia’s Digital Future in a Post-COVID World 6
establish the national vision, identify That Government partners with small business
the changes required to current digital industry associations and e-procurement
infrastructure and capabilities, what bodies platform providers to increase the number of
need to exist to build and run this backbone, SMEs adopting e-procurement and e-invoicing
and define the investment roadmap to platforms.
achieving the vision.
Government support a national best practice
• A task force should be established to for Smart Cities to support the Health safety and
identify and prioritise macro risk scenarios privacy of Australians and ensuring a framework
that Australia could face in the future. These for future investments.
scenarios should be published to enable
industry alignment. Building Digital Skills for the future
In building the digital backbone, Government Reform the Australian Curriculum to prioritise
needs to focus on combining international Digital Economy and Industry 4.0 capabilities for
best practice capabilities with domestic primary and secondary school students.
entrepreneurs and service providers, to create
the foundation of a “best of breed” digital That funding be allocated to schools for training
backbone. To achieve this, Government both students and teachers on digital skills,
needs to ensure that is has the right with a particular focus on underprivileged
sourcing and contracting policies to enable institutions.
international businesses to work effectively
in consortia with domestic organisations; this Tax, Incentive and Government procurement
approach also supports the stimulus for local reform
innovation. Underpinning this policy approach,
Government needs to provide the incentives Review Whole-of-Government agreements so
to retain platforms and capabilities onshore; that they can be applied for local companies
with an emphasis on fostering and protecting to streamline procurement and assist their
national IP. access to government procurements.
That the Federal Government establish a large, That a target be set that 25 per cent of
long-term and dedicated industry-focused Australian Government spend on IT comes from
program outside of normal research funding Australian industry including SMEs by 2030.
arrangements to:
That state and federal government
• support ongoing research; procurement arrangements (One Government
• stimulate investment in Quantum Buyer) be aligned, and prevent procurement
technologies and industry partnerships; and teams from discriminating against a
• support the retention of existing talent and procurement arrangement solely on the basis
seek to attract the world’s best researchers that it originated from another Australian
and engineers. government.
That Government partners with industry and That methods for procuring Australian
other manufacturing advisory groups to innovative unproven solutions should be
create a “digital business platform in a box developed to support and promote start-
for manufacturers” for start-ups and small to up and SME involvement with government
medium manufacturers. innovation.
Building Australia’s Digital Future in a Post-COVID World 7How COVID-19 changed the way
Australians live and work
The current global pandemic has accelerated In recognition of the adverse impact the
rapid digitisation and globalisation to transform COVID-19 pandemic has had both in
the future of work, workforce and workplace. Australia and internationally, there is growing
Australia needs to seize the current opportunity acceptance of the need to change aspects
to successfully transition and position our nation of our way of life to protect jobs and health.
as a global leader of high value businesses, Australians adapted well to the health
skilled citizens and collaborative ecosystems to restrictions that were enforced during the
support a strong economic outlook. response phase, and are broadly accepting
of the fact that testing, tracing, physical
The COVID-19 crisis has created a window into distancing and self-isolating will become routine
the future of life and work. It has brought into until a vaccine becomes available3.
sharp relief that this future will be underpinned
by technology. But there is a critical need As a result of its response to the COVID-19
to develop the skills required to realise this pandemic, Australia has developed a strong
technology-enabled future. international reputation. This Australian success
can be leveraged to attract further investment
Federal and State and Territory Governments and, at a later phase in the recovery process,
now have a unique opportunity to lead skilled migration while other parts of the world
the way when it comes to developing the are still in the response phase. It is anticipated
technology skills to sustain and grow the use that there will be broad support pursuing such
of technology across all industries in the post- an opportunity, as public opinion continues to
COVID era. This paper will examine the issue indicate that globalisation is generally good for
of skills requirements and recommendations in Australia4.
more detail under Driver 2.
A more resilient society 1 Hardship, distress, and resilience: The initial impacts of
COVID-19 in Australia, ANU Centre for Social Research and
Methods, 7 May 2020: https://csrm.cass.anu.edu.au/sites/
As a consequence of the pandemic we have default/files/docs/2020/5/The_initial_impacts_of_COVID-19_
in_Australia_2020_4.pdf
become more cohesive and more willing to
2 Ibid
trust public authorities, though it is not yet clear
whether this new state of affairs will only be 3 Hal Swerissen, The New Normal: how we’ll live with
COVID-19, Grattan Institute 13 May 2020 https://grattan.
temporary. Citizens have shown a willingness edu.au/news/the-new-normal-how-well-live-with-covid-19/
to sacrifice societal freedoms for a short period
4 COVIDpoll: Lowy Institute Polling On Australian
when it is conducive to securing the health Attitudes To The Coronavirus Pandemic, 14 May 2020
and safety of the wider population. Between https://www.lowyinstitute.org/publications/covidpoll-
lowy-institute-polling-australian-attitudes-coronavirus-
February and April 2020, confidence in the pandemic#sec42551
Federal Government, and State and Territory
Governments rose from 27.3% to 56.6%1. Social
cohesion improved between February and April
based on measures that Australians think most
people can be trusted, that people are fair and
that they are helpful2.
Building Australia’s Digital Future in a Post-COVID World 9Underlying anxieties The Australian Public Service and state and
territory public services rapidly developed new
Despite the positives, Australians are also more methods for supporting new public services,
anxious and less satisfied with life. There are provide citizens a range of new and expanded
concerns over burgeoning unemployment health, economic and social services, often
– over one-in-four employed Australians doing do so in innovative ways. Additionally,
determine the likelihood that they will be the Federal Government is engaging the
unemployed at some point in the next 12 private sector in new and different ways. In
months is greater than 50%5. Australians are an effort to ensure that Australian industries
also less satisfied with life, and more of us can contribute to the economic recovery,
are experiencing psychological distress – an the Office of the Prime Minister and Cabinet
increase from 8.4% in February 2017 to 10.6% in has established the National COVID-19
April 2020.6 Coordination Commission.
It is unclear how long this newfound social The sum of all these changes means that, in
cohesion will last, especially with potential future, all levels of Australian Government will
generational and socio-economic fault- need to become digital leaders. The broader
lines emerging. The economic impact of the public sector will need to rapidly invest in
COVID-19 pandemic has fallen disproportionally digital and technology capabilities to meet
on younger Australians, whereas the health emerging challenges in core areas such as
impact most threatens older Australians7. health, education and social services. The
Inequality is growing as certain professional digital and technological transformation of the
sectors – hospitality, the arts and recreation Australian public sector will ensure that it is more
services –have endured a heavier burden than productive, more proactive in responding to
the others8. In response to these impacts, from community need and in turn ease government
the earliest stages of the response strategy, resourcing issues.
governments have increased public spending
to stimulate the economy and strengthen the
social safety net. However, as governments 5 Hardship, distress, and resilience: The initial impacts of
begin to wind back spending, it is anticipated COVID-19 in Australia, ANU Centre for Social Research
and Methods, 7 May 2020, p.iv https://csrm.cass.anu.edu.
that economic and financial stresses will au/sites/default/files/docs/2020/5/The_initial_impacts_of_
continue to multiply. COVID-19_in_Australia_2020_3.pdf
6 Hardship, distress, and resilience: The initial impacts of
More agile government, delivering more COVID-19 in Australia, ANU Centre for Social Research and
Methods, 7 May 2020, p.v
7 Caitlin Fitzsimmons, The uneven pain of the coronavirus
The manner in which governments respond to downturn, Sydney Morning Herald, 17 May 2020 https://
crises, both in terms of what they do and how www.smh.com.au/business/the-economy/the-uneven-
pain-of-the-coronavirus-downturn-20200515-p54tf8.html
they do it is, is changing rapidly. Federal and
State Governments have assumed greater 8 David Rumbens, Deloitte Access Economics Weekly
Economic Briefing, 5 May 2020
responsibility in determining the COVID-19 https://www2.deloitte.com/au/en/blog/economics-
response, made faster, far-reaching decisions, blog/2020/sharing-the-burden.html
and developed new approaches to accelerate
service delivery. Governments have shown a
willingness for increased economic intervention
across a range of sectors, and selectively
stepping into those industries experiencing
market failure.
Building Australia’s Digital Future in a Post-COVID World 10Work of the future
RECOMMENDATION
Examine how government and industry can
It is anticipated that one of the consequences
partner to drive investment and policy to
of the COVID-19 pandemic will be attitudes
support regionalisation of government services
towards work. Work will increasingly become
and industry.
about outputs and value, rather than time
and activities. The onus will be on businesses
Connectivity and mobility patterns
to adapt new measures of success and new
methods of organisation to succeed in a world
These changes to work and life balance have
with a renewed focus on working remotely.
manifested in increased localisation. While this
trend is likely to ameliorate as we emerge from
Work will no longer be defined by a physical
the crisis response, it will still have some impact
location and workplace engagement will be
on how we connect and move in the future.
more than just physical presence9. NBN Co
70% of Australians say they are consciously
research indicates that a majority of people
support local businesses and 70% say they
expect to work more home after the crisis
would like to support more local businesses
has ended10. Organisations will challenge
but were restricted by their limited online
the idea that work should be performed in a
presence14.
specific physical location by exploring ways to
digitize some or all work through advances in
robotics, IoT, cloud and other technologies11. 9 Reinventing work after COVID-19, Deloitte’s COVID
Collaboration tools and platforms will conversations, https://www2.deloitte.com/au/en/pages/
covid-19/articles/workforce-covid-conversations.html
also support dynamic work locations and
asynchronous collaboration12. Additionally, 10 nbn Australian Covid-19 Behavioural Change Survey:
8 in 10 experiencing better work/life flexibility, 26 May
the recent experience of COVID-19 should 20 https://www.nbnco.com.au/corporate-information/
motivate organisations to fully embed wellbeing media-centre/media-statements/behavioural-change-
survey
into every aspect of the design and delivery
11 Increasing Organizational Resilience in the face of
of work itself13. Driver 1 will look deeper in the COVID-19, Future of Work – Deloitte US, March 2022, p.5
aspects of changes in the workplace due to 12 Ibid
COVID-19 and how digital technologies played 13 Returning to work in the future of work, Deloitte Insights,
a critical role in productivity during this time. 15 May 2020
14 nbn Australian Covid-19 Behavioural Change Survey:
With the clear support that technology has 8 in 10 experiencing better work/life flexibility, 26 May
20 https://www.nbnco.com.au/corporate-information/
provided to demonstrate the unessential media-centre/media-statements/behavioural-change-
survey
nature of physical co-location of the workforce,
government should focus policy on the
regionalisation of government services and
industry. This should also be supported by the
design and new business and government
service models that incorporate regionalisation
and regional economic development.
State government can especially play a lead
role in promoting links to centres of excellence
in regional areas leveraging future infrastructure
investments as well as tertiary and R&D linkages.
This would also take pressure off Australia’s main
capital cities.
Building Australia’s Digital Future in a Post-COVID World 11The NBN has performed well during COVID-19, Education diversification and innovation
largely coping with surging demand15;
congestion, network faults and outages The COVID-19 pandemic poses serious short –
remained at relatively low levels16. However, to – medium term challenges for the Australian
some trade-offs were required to reach this Higher Education Sector. At present, the sector
outcome. For example, the nbn requested is attempting to contend with reduced revenue
online streaming services to reduce bandwidth due to restrictions on international students
in order to ease network congestion17. With entering the country and increased demands
an increasing number of Australians working for online learning.
remotely – and potentially more broadly
distributed in the longer-term if there is greater Regardless, opportunities remain as Australia’s
population movement to regional and rural prompt response to the COVID-19 pandemic
Australia – further investment will be required to relative to those in other key international
ensure both bandwidth and network reach are student markets (i.e. United Kingdom, United
able to support community need18. States) could be leveraged to promote the
sector once international travel resumes. The
Australia’s mobile networks have coped similarly sector can use this downturn to pursue digital
well with the extra demand for capacity. and cloud transformation for legacy systems,
Some of the wider societal changes COVID-19 improve efficiency and flexibility, and diversify
has driven will see changes in network traffic revenue streams. However, due to current
and geographic demand. Business strategies revenue issues pursuing such a strategy may
predicated on rolling the network out in high not be feasible at present.
population density areas may need to be
re-visited if localisation trends gather pace19. EdTech presents an opportunity for growth in
Conversely, the COVID-19 crisis has reinforced a weakened market, as opportunities exist in
the need to build redundancy into supply areas such as AR/VR, AI, robotics, machine
chains and this changed risk tolerance may learning and blockchain. These technologies
carry over to critical infrastructure. 5G may have the ability to connect education with the
become a more attractive option within some learning needs of student and employees, and
industries, such as mining and logistics. Some these can be done so at speed and at scale.
providers may position 5G as a failsafe strategy
for any additional strain placed on the NBN.
15 Chanticleer, ‘NBN on time and passing the COVID test’,
Australian Financial Review, 14 May 2020 https://www.afr.
Privacy and security will become increasingly com/chanticleer/nbn-on-time-and-passing-the-covid-test-
important as more digital services become 20200514-p54sy9
embedded as part of our daily life. Use of online 16 nbn Australian Covid-19 Behavioural Change Survey: 8 in
services has grown rapidly during the COVID-19 10 experiencing better work/life flexibility, 26 May 20 https://
www.nbnco.com.au/corporate-information/media-centre/
pandemic, and whilst many services will return media-statements/behavioural-change-survey
to their physical operations it is expected that
17 Netflix to crunch streaming bandwidth to ease
a number will continue to operate online. Trust broadband congestion, Sydney Morning Herald, 24 March
in these new services will easily be eroded 2020 https://www.smh.com.au/business/companies/
netflix-to-crunch-streaming-bandwidth-to-ease-broadband-
if flaws are exposed, so it is in the long-term congestion-20200324-p54ded.html
interests of the Federal and State and Territory 18 AIIA Member Survey Response Summary, 14 April, p.6
Governments and industry to invest more in
19 Our New Reality: Predictions after COVID-19, KPMG
privacy and security. These issues are looked at Australia, May 2020
in more detail in Driver 3. https://home.kpmg/au/en/home/insights/2020/05/
predictions-after-covid-19.html
Building Australia’s Digital Future in a Post-COVID World 12Vocational education can be a key enabler community access to mental healthcare
of Australia’s post-COVID economic recovery, services, such as chatbots to determine some
as it will be essential to re-skill and upskill treatment pathways,. Ongoing government
workers in the hardest hit professional sectors. support and funding would encourage
Additionally, if governments seek to encourage healthcare providers to invest in and prototype
the development of certain industries to such technologies to address anticipated
resolve specific supply chain issues, such as future, in particular as Australians come to terms
niche manufacturing, vocational education with the effects of the COVID-19 pandemic.
opportunities will be essential. Governments
could consider providing incentives to those RECOMMENDATION
receiving JobKeeper to re-train and upskill by Government continue to promote technology
providing viable vocational education options. enabled services that support citizen health
These issues on education and training are outcomes and convenience that were
further explored in more detail in Driver 2. accelerated during COVID.
Health and technology
20 Hal Swerissen, The New Normal: how we’ll live with
The crisis is accelerating the trend towards COVID-19, Grattan Institute 13 May https://grattan.
edu.au/news/the-new-normal-how-well-live-with-
virtual care20, with the home more likely to covid-19/
become more of a hub for healthcare.
In order for this transition to be viable for a
longer-term basis, it will be necessary for
healthcare providers to leverage the full
capabilities of the IoT, data analytics and
connectivity. Additionally, it will be essential
that there is coordination and integration
across multiple data sources and to ensure
that healthcare professionals have the requisite
technological skills to fully utilise these systems.
Such a trend is most likely to be supported
by insurance companies, who will need to
consider their own digital transformation
strategies as a consequence of increased
demand in the wake of the pandemic. A
number of insurers are expected to experience
a cash windfall due to lower claims during the
response phase, and are expected to invest in
improved integration with healthcare providers.
Interim government funding for eHealth
with a specific focus on mental health
services has been vital during the pandemic,
and its long-term viability is contingent on
Federal Government and State and Territory
Government decisions on funding. There are
innovative opportunities to support wider
Building Australia’s Digital Future in a Post-COVID World 13DRIVER 1:
Harnessing technology and innovation to
kick-start the economy
Embracing a new working culture organisations to enable and promote frequent
communication both with employees and
The COVID-19 pandemic forced organisations customers. Virtual assistants can be set up
to rapidly change the manner in which they quickly, making them an attractive option for
operate; within a few weeks organisations many organisations during this time. In a recent
were forced to either close or decrease global executive survey, 97% of executives said
operations and to introduce new systems to that their organisation will deploy more AI tools
ensure that employees were able to transition in the next two years than they had prior to the
to working remotely for an indefinite period pandemic23.
of time. Significant disruptive events, whilst
not necessarily introducing new change, are In the post-COVID-19 world,
often the catalyst for accelerating the pace of
existing change and the COVID-19 pandemic is
organisations will need to further
one of those events. embrace technology and
innovation so as to improve the
Whilst the recent transition has been disruptive, productivity and efficiency of
many organisations have found remote working
also presented new opportunities. A recent
their workforce, both for office-
study commissioned by NBN co, indicates that based and remote staff.
81% of participants found working remotely
positively impacted their work/life balance, It is important to note that a healthy remote
and 67% expect to work remotely even after workforce extends beyond network-access
organisations return to normal operations21. It tools and meeting software. In parallel,
is anticipated that the COVID-19 pandemic organisations have been pressured to
will act as a catalyst for altering work practices develop ‘working- from-home models’ that
within a number of organisations. They will never empower and enable their employees to
go back to their previous ways of working and work productively and efficiently. Sustaining
remote working will become standard practice communication, collaboration, capabilities
within organisations moving forward. and culture in a virtual operating model is now
mandatory for organisations around the globe.
The COVID-19 pandemic has seen an
accelerated uptake of emerging and existing The challenge arises for organisations to
technologies to enable employees to work establish new cultural norms that come
remotely. The pace of change is illustrated by with remote working in our new normal. The
the usage numbers for video conferencing COVID-19 pandemic has helped to break
technologies, such as Zoom. In December down the perception that it is not possible to be
2019 there were an average of 10 million daily productive working remotely.
meeting participants on Zoom, COVID-19 saw
these numbers rise to over 300 million daily 21 NBN, Behavioural Change Survey: 8 in 10
meeting participants by April 202022. experiencing better work/life flexibility, April 2020
22 https://blog.zoom.us/wordpress/2020/04/22/90-
day-security-plan-progress-report-april-22/
Technology innovations, including virtual 23 IBM Institute for Business Value, Beyond the
assistants and chatbots, have emerged within Great Lockdown: Emerging Stronger to a different
normal, 10 April, p5
Building Australia’s Digital Future in a Post-COVID World 15Increased productivity through technology to nation’s exports, however only employs 2.4% of
support GDP recovery the total Australian workforce.
Per Capita GDP performance is an important If such high per capita sectors experience a
measure of the economy’s health, indicating downturn, other high employer sectors such
a nation’s productivity. Protecting productivity as health, construction, financial services,
is critical in uncertain times, and even more so education and travel will need to improve
in the face of new challenges such as remote their efficiency to be able to protect Australia’s
working and disrupted supply chains. overall productivity.
In Australia, both the resources and agricultural Analysis of countries that have higher per
sectors are major contributors to the nation’s capita GDP, but don’t rely on resources or
per capita GDP performance. As global agriculture, indicates that there is a potential
economic conditions deteriorate, or new trade relationship between productivity and domestic
situations occur, the demand for Australian innovation and technology maturity. This is
resources and agricultural products is expected evident in particular in economies that have
to come under increased pressure. grown their productivity significantly in the past
decade, such as Singapore, UK, France and
The impact of this pressure is also expected Germany.
to be felt across the economy, with other
industries such as financial services, retail, health If this relationship is causal, then the Australian
and education experiencing similar secondary economy needs to invest in technologies
effects. that improve worker productivity, such as
automation and artificial intelligence, removing
A decline in overall GDP outcome and per impediments to continuous improvement and
capita productivity, risks eroding many of innovation, and rethinking policies, regulations,
the benefits Australian’s enjoy, including a and business models to remove unproductive
world-class health system, universal access to practices.
education, and investment in infrastructure to
support the community. In particular, the sectors that are the
big employers of Australians - health,
To address this risk, the Australian economy
needs to focus on improving overall efficiency construction, financial services,
and individual outputs of the Australian worker, education and travel, require the
on average. To do this, the old adage of “work most effort, and therefore the most
smarter, not harder” applies - and to work
smarter in a 21st century economy means to
help from government, to rapidly
embrace the integration of technology and transform their businesses with a
continuous innovation into the workforce24. focus on productivity.
A comparative analysis of the G20 economies
shows that Australia’s GDP per capita is one of 24 https://www.rba.gov.au/speeches/2019/sp-
the highest in the world (see figure 1). However, so-2019-06-05.html#:~:text=The%20resource%20sector%20
makes%20a,other%20parts%20of%20the%20economy
when this is broken down, some industries
contribute higher productivity per capita than
others. For example, according to the RBA, the
resources sector makes up almost 20% of the
Building Australia’s Digital Future in a Post-COVID World 16Figure 1: Growth Domestic Product (Per Capita) Comparison, showing Australia as one of the highest in the
world25
Harnessing the accelerated digital within weeks. Twitter, the social network
transformation company, was amongst those organisations
who rapidly shifted their workforce to remote
The shift to what we anticipate will become working during the pandemic, the success of
“business as usual” for most organisations in this move prompted Jack Dorsey, the founder
the future, cannot be achieved without a of Twitter to state “The past few months have
comprehensive national digital and technology proven we can make remote working work.”26
infrastructure. So if our employees are in a role and situation
that enables them to work from home and they
In our new normal, it will be vital for want to continue to do so forever, we will make
organisations to make the most of digital that happen.”
technologies to create operational resilience
and flexibility; moving their workforce past Historically, governments have invested
crisis-neutral status toward becoming nationally primarily in physical infrastructure, such as
and globally resilient. Historically, organisations roads, railways, bridges and buildings.
have embraced new technology and digital
transformation in order to stave off competition.
The COVID-19 pandemic has forced many 25 https://www.sbs.com.au/news/twitter-employees-can-work-
from-home-forever-if-they-want-ceo-says
organisations to realise that such a strategy is 26 https://data.oecd.org/gdp/gross-domestic-product-gdp.htm
now essential to ensure their long-term viability.
We have seen implementation timeframes
reduced significantly, with changes that would
previously have taken years being introduced
Building Australia’s Digital Future in a Post-COVID World 17In the post-COVID-19 world, and insights can be drawn to give a better
governments will need to reconsider view and understanding of our citizens and
customers, enabling tailored and proactive
their approach to infrastructure,
permission-based engagement for services.
specifically facilitating a strategic
shift to ensure that digital technology This new technology infrastructure gives both
becomes essential infrastructure and governments and organisations the opportunity
re-purposing investment accordingly. to reassess their business models. In doing so
there are three key concepts that should be
In the same way that government partners with considered:
private entities to build physical infrastructure,
the same should be considered for our digital 1. A top-to-bottom connected organisation:
infrastructure, with a corresponding rethinking “Customer” Experience to the core
of the business and investment models for our The entire organisation is connected from
new digital capabilities. top to bottom, with an outside-in focus
on delivering customer and employee
To truly harness the power of technology, experience and value, through to dynamic
Australian industries and government will and AI-enabled business processes, down
need to embrace a more open business and to next-generation applications providing
technical platform approach that leverages core services and insight on secure cloud
new and emerging technologies, to meet the environments.
growing complexity of citizen demand, societal
change and regulatory needs. At the same 2. Business platforms are the building block of
time ensuring that our digital infrastructure is the organisation
secure and resilient. The future operating model is established
around the “business platform” which
These business and technology platforms will be is a set of services that can be owned,
built around key foundational elements: orchestrated or outsourced to achieve the
objectives of an organisation.
• Embrace Cloud computing - Organisations
must utilise the power of the cloud and 3. Business platforms combine data, workflows
cloud services as they have a foundational and expertise to drive citizen value
role in enabling AI and the next wave of Each business platform is designed around
technologies through scalability, and agility people, cognitive workflows, internal
with processing data. and external data, and technologies,
including exponential capabilities such as
• Modernise legacy systems - Legacy systems artificial intelligence, automation, IoT and
and IT architectures that organisations have blockchain.
assembled over decades can complicate
efforts to install advanced technologies. Treating technology as a “National
Organisations need to modernise their Asset”, working with private sector
backend processes, phase out legacy to support digital technology as
systems and keep pace with the customer
core infrastructure, Australia has the
and citizen facing channels.
opportunity to transform our country
• Optimise access to data and information – into a leading global digital player,
The access to data and information needs along with becoming a destination of
to be optimised, so that useful analytics choice for innovators.
Building Australia’s Digital Future in a Post-COVID World 18Digital infrastructure and data go hand in 80% sitting within organisations and behind
hand; once the digital infrastructure is in place, firewalls, the potential is incredible27. Unleashing
organisations and governments need to the power of new technology will enable
leverage and utilise data in a permission based, organisations to develop deeper insights, make
trusted, transparent and secure manner. With exponentially better decisions and engage
only 20% of the world’s data searchable and customers as never before.
RECOMMENDATIONS
1. Government to initiate a joint task force with private sector, state and federal
representatives, to establish a digital backbone strategy and roadmap that can
support business and citizen digital infrastructure needs to 2030 and beyond. This
task force will complete a feasibility study to build out the digital backbone, establish
the national vision, identify the changes required to current digital infrastructure and
capabilities, what bodies need to exist to build and run this backbone, and define the
investment roadmap to achieving the vision.
2. In building the digital backbone, Government needs to focus on combining
international best practice capabilities with domestic entrepreneurs and service
providers, to create the foundation of a “best of breed” digital backbone. To achieve
this, Government needs to ensure that is has the right sourcing and contracting
policies to enable international businesses to work effectively in consortia with
domestic organisations; this approach also supports the stimulus for local innovation.
Underpinning this policy approach, Government needs to provide the incentives to
retain platforms and capabilities onshore; with an emphasis on fostering and protecting
national IP.
3. Government (state and federal) needs to set the example by being a “first mover”
investing in and embracing technology and the new ways of working, and in
doing so attracting investment from other sources (public and private), supporting
competitiveness, enabling scalability and empowering innovation for entrepreneurs
and Australian businesses.
27 https://hbr.org/2017/07/dont-try-to-protect-the-past
Building Australia’s Digital Future in a Post-COVID World 19DRIVER 2:
Supporting local skills development to
secure the future
Future of work Department of Industry, Science, Energy and
Resources commissioned Australia’s Tech
The Future of Work provides Australia the Future to develop Australia’s Digital Economy
opportunity to transition into more profitable Strategy30, with a focus on 4 key areas:
domestic businesses, producing high demand
products and services by leveraging the global • developing Australia’s digital skills and
trends of Industry 4.0 and the Digital Economy. leaving no one behind
• how government can better deliver digital
Industry 4.0 connects the physical world with services
the digital world through technology such • building infrastructure and providing secure
as automation and robotics to enable smart access to high-quality data
factories and automated manufacturing. • maintaining our cyber security and
reviewing our regulatory systems
The Digital Economy leverages cloud
computing, AI, IoT and data to support The skilled workforce required to
new and disruptive business models that
respond to these future needs was
offer a major boost to Australia’s economic
competitiveness. The Digital Economy has lacking pre-COVID-19, and the
provided the platform for new businesses to effects of the pandemic has only
challenge incumbent business and transform served to exacerbate this gap.
industries globally.
Over the past decade, it has been necessary
In McKinsey’s 2019 report, Australia’s for ICT companies to source skilled professionals
Automation Opportunity: Reigniting opportunity from overseas relating address domestic
and inclusive income growth, the firm skills deficits in areas such as applications
highlighted the economic potential to add $1.1 development, coding and analytics –skills
trillion to $4 trillion to the economy over the next which will be even more in-demand as we
15 years, providing all Australian’s with $4,000 to emerge from the pandemic.
$15,000 in additional income per year by 203028.
McKinsey estimates that 25-46% of current work Cyber security skills were already in demand
activities in Australia could be automated by prior to the pandemic, and as a consequence
203029. of the prompt transition to online service
provision this deficit is expected to widen. In
The Australian government has assessed the 2019, AustCyber had estimated that nearly
need for Australia to embrace Industry 4.0 to 18,000 more roles would be required by 2026.
boost our nation’s economic competitiveness The impact of COVID-19 is likely to heighten
to “… be at the vanguard of this fourth skills demand as cyber security becomes more
industrial revolution and support its SMEs and important.
advanced manufacturing sector to increase its
competitiveness.”
28 https://www.mckinsey.com/
29 Ibid
In 2019, the Federal Government assessed 30 https://www.industry.gov.au/strategies-for-the-future/
participating-in-the-digital-economy
the need to embrace Industry 4.0 and the
Building Australia’s Digital Future in a Post-COVID World 21Critical national capabilities Key Needs
recommended for investment in
technology
Advanced manufacturing Capacity, agility, digitisation and workforce
development
Health Domestic capability, supply chain resilience,
digitisation, workforce development
Energy Clean electricity, accelerated transformation of the
electricity market, system and infrastructure, and
hydrogen generation and storage
Information & communication Capacity of the NBN, digital skills
technology
Agribusiness Biosecurity, cross-sectoral connectivity, traceability
A number of sectors that will be crucial Internationally, a number of countries are
to Australia’s recovery will rely heavily on developing strategies to incentivise and attract
technology skills. The Australian Academy of skilled technology professionals to the teaching
Technology and Engineering has identified profession, so as to support skills development
sectors with critical needs: for future generations. The challenge is
attracting ICT professionals, as industry salaries
Future of workforce are significantly higher than VET or University
staff. Combined with the individual’s wealth of
For Australia to position as a global leader in the industry experience and aptitude, candidates
Future of Work, we need embrace a national are unincentivized to certify their qualification
learning culture through investing in a cohort of via a lengthy and expensive course to teach at
skilled trainers to up-skill both new and existing an income lower than their industry salary.
workers with the digital skills required for the
Future of Workforce. Beyond traditional vocational and tertiary
models, there are advantages to models that
In the short to medium-term Australia will also incorporate on-the-job training in addition to
be unable to rely on the skilled migration, so or instead of class-based instruction31. Success
there is an urgent need to redeploy and reskill in this area could be bolstered by offering
within Australia. To meet these immediate ‘digital apprenticeships’, which would provide
demands requires short, industry-based a way to build skills in a work environment32.
training through the VET system or directly from Universities have piloted some approaches in
industry and platform providers. The Future of this area and should be encouraged to further
Workforce includes 5 key technical skill sets, grow this model.
namely Artificial Intelligence & Data, Cloud
Computing, Cyber Security, Automation and
31 The path to prosperity: Why the future of work is human,
Internet of Things. To produce a workforce Building the Lucky Country No.7, June 2019, p.iv
that can transform and disrupt industry, we 32 The path to prosperity: Why the future of work is human,
Building the Lucky Country No.7, June 2019, p.31
need employable industry competencies
that augment the technical skills sets with
soft skills such as leadership, teamwork and
communication as well as leveraging business
innovation and entrepreneurship.
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