Towards a Western Cape Digital Economy Outlook 2030

Overview of the WC

Digital Opportunities Implementation Framework

Major areas of focus

Digital

Economy

Strategic Economic

Accelerators and

Development

Design and

Innovation

Green

Economy

Catalytic

Infrastructure

Research and Policy Development

World Bank,

2012

1.38% to GDP per annum

Internet Penetration

Economic Growth and Productivity

Impact of broadband

Digital disruption’s impact on economic growth is a result

of:

● Reduced transaction costs, allowing businesses to

enhance efficiencies and exploit economies of scale

(particularly if data-intensive transactions are

automated);

● Increased innovation

● Reduced information failures, search costs and the

costs to communicate

● Increased labour productivity

● Increased exports and development of new markets

● Greater business efficiencies

Source: World Bank (2016) World Development Report 2016: Digital Dividends Overview.

Why is the focus on the digital

economy?

WC failure to embrace Digital Disruption will mean:

● Digitally smart competitors entering into the market and eroding the customer base of local businesses

● Locally produced products and services becoming redundant or obsolete

● Local firms unable to meet an increasingly digitally savvy customer expectation of services

● Local firms unable to access export opportunities in foreign markets due to uncompetitive pricing and quality;

● Local firms unaware of new trends and developments in their sectors enabled by digital technology

● Competitors offering cheaper products and services

● Competitors’ products and services being more efficiently and affordably produced, make better margins; and

● Competitors’ utilisation of data intelligence allowing them to respond quicker, cheaper and more bespoke products and services to customers’ needs =

Do nothing?

Unemployment;

Quality of service to

government & citizens

Reliance on

international companies for solutions and price by government and citizens

Un-competitiveness of

local firms

Local innovation and

R&D

=

Role of DEDAT

1. Reduce Private Sector Uncertainty and Risk through

provision of limited free.

2. Stimulate digital disruption amongst WCG through

awareness and process/systems support

3. Grow the no of connected citizens to improve

attractiveness to business & improve productivity

Infrastructure

Usage

Readiness

(skills)Co-

ordinated &

Integrated

Action

Connected

Government

Connected

Citizens

Connected

Business

Western Cape Broadband Strategic

Framework

1964 WCGSites in total = approximately:

1286 Schools

298 Healthcare facilities

444 Other Govt. offices

WCG

Sites

Rural

Access

Network

WC Digital Economy Journey

Phase 1: Early Implementation focus

2011 - 2017

Phase 2: Digital Opportunities

Implementation Plan

2017 – 2025

Government

Access

Limited Citizen

Access

Government Usage(Digital Government by

CeI)Business usage

Citizen/workforce

access, skills and

usage

WC Broadband Strategic Framework 2011 - 2030

the coordinated efforts of a body of technologies

aimed at protecting hardware, software and data from unauthorized

access, attack and damage.

unique identifiers and embedded computing devices

with the ability to transfer data over a network without requiring human interaction

the ever-expanding service of storing & processing

data on a network, rather than on physical

infrastructure. Allows for ubiquitous, on-demand access is ensured across

the business

an all-encompassing term for a set of

technologies, skills, methods and

processes for gaining insight from collections

of data.

computing systems that

exhibit some form of human

intelligence. They are characterised by interacting in ways that seem

‘natural’ to humans, and learning from

those interactions.

Digital Disruption

Technology Informants

4th industry = “cyber-physical systems,”

Robotics

Internet of things

(IoT)

Big Data

MobileConnectivity

Cloud

Technology

Cyber

Security

Artificial

Intelligence

Software

Analytics

Vertical & HorizontalIntegration

Augmented Reality & Multi

Media

Additive

Manufacturing

Crypto-

currency

WC Outcomes and Goals for 2025

80% of its citizens have

internet penetration

Western Cape is a leading

global digital hub

R10 billion investment

into the Western

Cape

Best performing start-up ecosystem in

SSA

Source: Endeavor Insight. 2018Released Oct and July 2018 respectively

13

Johannesburg Tech start-up

ecosystem

CT/Stellenbosch Tech start-up

ecosystem

Principles for WCG Digital Growth Approach

①

③Inter-dependancies

Recognition of the inter-

dependencies between the technologies 1

Roles of Government

Government will play

whatever role is most effective or required

2Leadership

Western Cape Government

will lead by example3

Human-centredness

Human-centred design

principles will be adopted4Demand-led & Enabling

Government interventions

will be demand-led &

enabling

5Reduce digital divide

Focus on solving local

challenges and to reduce

digital divide6

Innovation

Digital Disruption is framed

within the WCG Innovation

Strategic Framework

7

DEDAT Digital Opportunities Implementation

Framework

Facilitating the Demand

Technology Incubation ● Tourism

● Agriculture/Agri-processing

● Transport● Health● Education● Film, Media &

Communications● Crime and

Security (incCyber-security)

Government Procurement

Positioning WC as Digital Hub

Local Demand Stimulation

Enabling the Environment

Eco-system● Internet of

Things ● Mobile

Connectivity ● Big Data ● Software

development ● Artificial

Intelligence and Robotics

● Cloud Technology

● Cyber Security

Skills

Development

Infrastructure

Access

Regulations

Enterprise

Development

Implementation Tools

Implementation Tools

Technology Sectors

Importance of Digital Economy Skills

90% of jobs

in

developed

world require

some form of

digital skills

Talent is the

No. 1 cited

constraint by

firms in the

ICT sector

2 key issues

© 2017. EY. All rights reserved.

Confidential

WC DEDAT | Digital Disruption Analysis17

Informant: EY Study on 10 WC sectors

TourismFinancial & Business ServicesRetail & WholesaleTransportAgricultureManufacturing Energy & Green EconomyConstructionGovernment (broadly+ Education & Health)SMMEs as a class of business

Digital Disruption Impact on sectors

Disruptive

Technologies

Internet of Things

Big Data

Mobile Connectivity

Software

Development

AI & Robotics

Additive

Manufacturing & 3D

printing

Cyber-security

Cloud Technology

New hardware

Virtual Reality,

Augmented Reality,

visualisation

Cryptocurrency

co

mm

on

Sk

ills

req

uire

d a

cro

ss

tec

hn

olo

gie

s

Engineering & Hardware

Electrical engineeringMechanical engineeringNetwork programming & managementSystems engineering

Software Programming & Coding

Java,

PHP,

Python,

Hadoop,

C+,

openJobs,

ruby on rails,

rust,

elixir,

Go, etc

Analytics

Data science, analytics, information managementBusiness Analysts

Digital Skills

social media marketing,

e-commerce, web-design,

online content: blogging,

web-design

UX, UI

Mobile

application

environment

Android,

iOs,

Windows

Basic Digital

Skills & Literacy

desktop

mobile

Soft Skills

Complex problem

solving

team work,

Creativity

adaptability,

agility

Cyber

Security

Application,

Data,

Server,

Network security,

Encryption

18

Mapping the common skills across

technologies

LEV 5+

Etc, etc

LEVEL 4

Tertiary/Highly specialised skills progs. E.g. data science

LEVEL 3

ICT/Digital Academy (virtual/physical network)

LEVEL 2

e.g.

Software/

Coding

Skills

(future

blue-

collar)

EPWP-type

LEVEL 1

Generic/Basic

Digital Skills training

I-CAN

Academy

CHEC

Pipeline approach (illustrative purposes only)

Includes:

Mapping all current MICT Seta and other digital training in the province

Development of the shared agenda

Accelerating the skills pipeline

19

Current Digital Economy Set of projects

Digital Co-ordination

(incpositioning)

Usage

ICAN Learn

ICAN Network

ICAN OMS

Skills Framework

ICAN learning content

ICAN PlaySafety-tech

JumpBus Toolkit

Innovative Game

ICAN Elsies River

Khayelitsha BWB

Public Wifi-hotspot

Last-mile pilot

Tel: Fax:

www.westerncape.gov.za

Contact Us

Jo-Ann Johnston

Dep. Director-General: SEAD

021 483 4165

Email: Jo-Ann.Johnston@westerncape.gov.za