Template for IT Capability Sourcesheet Date: 4/12/2006

Team members: Steve Bean Country: Australia

Dimension / # / Category / High / Med. / Low / Comments/Notes/URL Sources
Political environment / 1 / Political stability / ü / http://www.investaustralia.gov.au/
2 / Extent of government promotion of IT / ü / http://www.dcita.gov.au/ie
3 / Open to IT diffusion
(few trade barriers to IT diffusion) / ü / International conferences, societies, information sharing groups help
http://www.apnic.net/docs/index.html
4 / Liberal policy of IT ownership (vs. Regulation/restriction of IT ownership) / ü / Few regulations/restrictions of IT
http://www.dfat.gov.au/cer_afta/index.html
5 / Legal protection for international software copyrights & trade secrets / ü / Ranked 7.7 on scale of 10
World Competitiveness Yearbook 2005, http://www.investaustralia.gov.au/media/PR_TenGoodReasons.ppt
Educational System / 6 / Literacy / ü / 100%, 1st Rank
http://www.cia.gov/cia/publications/factbook/geos/as.html
7 / IT literacy / ü / 66%
http://www.abs.gov.au/ausstats/abs@.nsf/e8ae5488b598839cca25682000131612/ae8e67619446db22ca2568a9001393f8!OpenDocument
Language/ Culture / 8 / Extent of knowledge of English / ü / English is the native language
English 79.1%, Chinese 2.1%, Italian 1.9%, other
11.1%, unspecified 5.8% (2001 Census)
http://www.cia.gov/cia/publications/factbook/geos/as.html
9 / Extent of set of written symbols in native language / ü / English alphabet used
10 / Hofstede MAS (Target Country / U.S) / ü / 61Masculinity
35th Rank
http://www.geert-hofstede.com/
11 / Hofstede UAI (Target Country / U.S) / ü / 51 Uncertainty Avoidance
17th Rank
http://www.geert-hofstede.com/
12 / Hofstede PDI (Target Country / U.S) / ü / 36 Power Distance
13th Rank
http://www.geert-hofstede.com/
13 / Hofstede (IND) (Target Country / U.S) / ü / 90 Individualism
49th Rank
http://www.geert-hofstede.com/
IT Diffusion / 14 / Extent of phones per capita (ratio) / ü / 57% main telephone lines, mobile phone use rapidly increasing
http://www.worldstats.org/world/australia.shtml
15 / Extent of computers per capita (ratio) / ü / 66% in 2003
http://www.itu.int/ITU-D/ict/cs/australia/material/AUS_CS.pdf
16 / Extent of TV per capita (ratio) / ü / Average 2 sets per household,
99% have access to TV services
http://www.dfat.gov.au/facts/media.html
17 / Extent of IT usage (ratio) / ü / 58 % in 2002
http://www.itu.int/ITU-D/ict/cs/australia/material/AUS_CS.pdf
Telecommun-ications / 18 / Extent of Internet connections (ratio) / ü / 14.2 million users
http://www.worldstats.org/world/australia.shtml
653 internet users per 1000 people, 1st Rank
World Competitiveness Yearbook 2005
http://www.investaustralia.gov.au/media/PR_HighlySkilled.ppt
Infrastruct. / 19 / Support for EDI / ü / Primary UN/EDIFACT and ANSI/X12 support
http://www.theedizone.com/edi_resources/edi_standards.html
20 / Availability of digital networks / ü / $2.5 Billion invested in telecommunications infrastructure
http://www.accc.gov.au/content/index.phtml/itemId/690299
21 / Availability of ISDN/fiber / ü / ISDN services are available to 96 per cent of the Australian population under the current universal service arrangements.
http://www.acma.gov.au/acmainter:STANDARD::pp=DIR2_10,pc=PC_1730
Dimension / # / Category / High / Med. / Low / Comments/Notes/URL Sources
Computer Industry / 22 / Extent of native software industry / ü / 94 Software & Services companies listed on ASX
http://www.asx.com.au/
23 / Extent of native hardware industry (new manufacture, copy, assemble) / ü / 44 Technology Hardware & Equipment companies listed on ASX
http://www.asx.com.au/
Economy / 24 / Quality of physical infrastructure / ü / “Australia boasts world-class infrastructure.”
http://www.investaustralia.gov.au/index.cfm?menuid=9880D518-508B-A0EB-68815C5E986BD15E&setLanguage=AU
25 / Extent of privatization / ü / Recent widespread efforts to privatize airports, banking services, energy services
http://unpan1.un.org/intradoc/groups/public/documents/EROPA/UNPAN001420.pdf
26 / GDP per capita / ü / $30,700, 17th Rank
$692 Billion
http://www.indexmundi.com/g/r.aspx?c=as&v=67
27 / Extent of joint ventures with international firms / ü /

“Loyalty the key in Asia”, strong relationships with other companies help endure crisis situations

http://www.austrade.gov.au/corporate/layout/0,,0_S1-1_CORPXID0029-2_-3_PWB1182270-4_-5_-6_-7_,00.html
28 / Extent of foreign direct investment / ü / $813.5 Billion (2001)
http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/C2C79CD9B2063EA3CA256B36001BFB42
http://www.firb.gov.au/content/default.asp
29 / Existence/strength of its stock market with respect to world marketplace / ü / http://www.investaustralia.gov.au/media/IR_FS_BenchmarkReportAug05.pdf
Few would argue that the Australian market has had an impressive run over the last 3 years culminating in last week’s break through the 'magic' 5000.
http://www.asx.com.au/

Other Pertinent Information:

Economy has performed well and continued GDP growth is expected; however, some concerns that high consumer debt and slow recovery from a trade deficit could increase inflation rates and slow down economic expansion. Since England has joined the EU, Australia has formed closer ties with Asia and the US. The government is encouraging foreign partnerships between corporations by offering tax incentives and continues privatizing industry such as telecommunications by selling shares of Telstra.

Overall Assessment of IT Capability of Country (2 sentences maximum):

Advanced telecommunications infrastructure with strong government promotion, and highly skilled workers, but limited availability of a small population. Australia continues to be an early adopter of IT and its diffusion has been wide spread.

Attractiveness of the Country from an IT Strategic Perspective (2 sentences maximum):

Good location and cross-cultural population provides ideal bridge between Eastern and Western economies. Continued private and public investments in Australia’s IT industry promise to expand an already significant market competitor in the Asia-Pacific region.