The Impact of the Media on the Information Society

Opportunities for the Media in the implementation of the Information Society in Europe

 Prepared for:

Media & the Information Society Conference

University of Timisoara, Romania

October 1997

By Tony Fawl
Innovation Executive
Enterprise plc
England

tony@fawl.net

 

Introduction

There is considerable concern that the take-up of Information and Communication Technologies (ICTs) in society is moving the same way as multimedia in the 1980s, i.e. That advances are little and slow. This is not the case, in researching the subject over the last two years, I have found that there has been considerable development, and that institutions across all sectors are incorporating Information Society strategies into the very fabric of their operational activity. Unfortunately this is happening outside Europe in the United States and more recently, Japan.

Computers are becoming increasingly inexpensive. They inhabit every part of our lives. Now, many analysts believe that we stand on the brink of a second industrial revolution. Inexpensive communication and more readily accessible information is enabling computer systems to join together to form a globally interconnected network, the Internet.

Industry analysts and businessmen, such as Bill Gates of Microsoft, believe that there will be a day, not too far distant, when people will be able to conduct their business, explore the world and its cultures, call up any great entertainment, make friends, attend neighbourhood markets, show pictures to distant relatives etc. without leaving their armchair. This technology is already freely available.

Most human progress has come about because someone invented a better and more powerful tool. The plough, the wheel, canals; railways, etc formed a platform, an infrastructure for the industrial revolution. Innovations since have developed tools like cranes, bulldozers, the automobile etc. which amplify the physical abilities, in terms of strength or speed, of those using them. The second industrial revolution is heralding the implementation of `Information Tools’. Future innovations will increasingly require larger amounts of accurate information and people will find themselves relying more and more on information tools which amplify their intellect rather than their muscles.

The global information market will be huge - it will combine the various ways that goods, services and ideas are exchanged. At a practical level this will give broader choice, show where to invest, what to buy and how much to pay and where and how securely you and your family live. The workplace and our idea of what it means to be educated will also be changed, perhaps beyond recognition.

This change is considered by some as frightening and that the embrace of such technology in corporate and government institutions in Europe has been slow. Senior Executives in many European countries consider it a badge of honour to have a computer free personal office; contrast this with the United States of America where even chief executives carry laptop computers and where people can be seen using the internet on trains and in taxis.

The French aviator Antoine de Saint-Exupéry wrote in 1939 about how people react to new technology. He compared this to the introduction of the railway in the 19th Century and the way they were described as smoke-belching, loud iron monsters. Then more tracks were laid, towns built train stations, goods and services flowed. Interesting new jobs became available and a culture grew up around this novel new form of communication, then acceptance, then approval. What was once known as the Iron Monster became the bearer of life’s necessities and the safe transport of loved ones? This was reflected in the language used to describe the train. It changed, at least in the United States, to Iron Horse.

"What is it today", he said, "but a humble friend who calls at six to take me home".

The perception that this current technology is in the ‘Iron Monster’ phase of development is high, but it seems that in Europe at least, there is ignorance to the pervasiveness of telematics and its ability to touch each of us. Other cultures are already reaping the benefits because they have begun to take advantage of the opportunities presented and we as Europeans are already suffering job losses and a loss in economic prosperity as a result.

In my hometown of Preston there is a doctors surgery that uses a company in India to process its administrative activities because it is cheaper than the cost of employing local people. I personally know of local people who would be able to do this work at still lower cost. Mothers of young families for instance, can not afford long periods of time away from their children but could undertake working from home if they had access to the proper technology.

The information Society in Europe is not integrated into the whole community, but only available to the people who have had the benefit of telematics training and who can afford the computing and communications costs.

The town nearest Preston is called Blackpool. It is the largest tourist resort in Europe and has a seven-mile coastline with hundreds of hotels and guesthouses along its length. Yet, if I were to visit a travel agent (with the latest booking systems available), I would find it easier to book a hotel room in Spain than in Blackpool.

One can conclude that the information society is available only to the ‘haves’ and not the ‘have nots’. This is destructive and will, unless checked, widen the gaps between regions of economic prosperity and those, which are least, favoured. The European Union is attempting to address the problem with a number of Information Society projects such as the Inter Regional Information Society Initiative (IRISI) and the more recent Regional Information Society Initiative (RISI). These projects encourage all sectors of the community to look at Social Inclusion issues and the development of Regional Information Society Strategies.

A number of key indicators and opportunities have presented themselves because of the findings of these programmes and it is these that are discussed below. One such issue, for example, argues that commerce will not embrace telematics until its customers and suppliers insist that they do so.

This argument is widely held yet this paper will argue that the stimulation of the community to embrace telematics will come form small and medium sized companies. It is they who are best able to profitably exploit telematics and most importantly, it is they who will provide the motivation for their workforce to re-train in its effective use.

The use of the Internet for electronic commerce will drive down the cost of computer equipment and communications costs, improve software and create new jobs, but only with the full support of the community. Innovations in India have enabled them to exploit opportunities at the expense of the British community and until such threats are addressed, Europe will loose the Cyber War.

In the United States, a huge campaign was mounted to encourage all sectors of the community to embrace the new technologies. It used the phrase ‘The Information Superhighway’ (a term coined by the then Senator, Al Gore, whose father sponsored the US Federal Highway Act in 1956).

As a result, the United States leads the world in terms of software development (all major Internet software comes from the US) and content (it is estimated that two thirds of the worlds World Wide Web sites are based in the United States). This is not surprising when you consider that 25% of the households in America are connected to the Internet (50% in California) compared with 2% of households in Europe.

The benefits to the United States are numerous. Whole communities have re-trained and are succeeding in developing and expanding their business interests on the Internet. Michael Dell of Dell Computers claims that he sells two million dollars of computers a day through his World Wide Web site. Success stories are numerous yet only now are we, as Europeans, beginning to take notice. Andy Grove, founder of Intel says, "Europe has fallen into a technological deficit which will be transmitted for generations".

It is ironic that the internet had been around for a few years before Tim Bernars-Lee, an English researcher at the Cern particle physics laboratory in Switzerland developed a method of computer coding that would allow documents held on different computers to be linked seamlessly to one another. The Americans however developed the World Wide Web further and it is now by far, the most used part of the Internet today.

Europe is a technologically and culturally rich community and is certainly capable of successfully exploiting the Internet for its own purposes. This will not came about because of government intervention where technophobia is widespread. Christpohe Agnus, of the magazine L’Express says "For our governing class, the computer is a tool for engineers and secretaries. The archaism of a large part of our elite and of the state is a damper on the spirit of enterprise." When Jaques Chirac recently opened France’s new national library, he was baffled to encounter, apparently for the first time, a computer mouse.

It can be argued that the key to the development of the information society in Europe is the media. It is widely regarded that information is power, the media have more access to and more experience in the delivery of information than any other sector. This paper will conclude that it will be the media who will develop the ‘killer application’. They will be the main motivating factor that will encourage the rapid implementation of the Information Society. We will examine why this will happen and discuss some of the opportunities for media organisations that are currently available.

 

Background Information and Research

The factor that will influence the development of a regional economy most significantly over the next decade, will be its ability to exploit the opportunity of the emergence throughout the world of a knowledge-based economy and society in which information and communication will be the new currencies.

The area for which I have concentrated most of my research work is Lancashire in the North West of England. For Lancashire to benefit Information and Communications Technologies (ICTs) it should develop new skills, a better educated workforce, the potential to develop new products and services, the facilitation of increased export earnings potential and access to new markets and increased business efficiency. With these, new jobs will be created and wealth creation will, in turn, foster further economic prosperity.

In recognising this, the region of Lancashire has, for the last two years, been actively encouraging the development of the Information Society across all sectors. It has worked closely with other regional players and is supported by the European Union. An Information Society network has therefore developed during this time and plays its role in the developments of Lancashire regional activities.

The Sub Region of Lancashire - Demographic Information

Lancashire is situated in the North West Region of England, it has a population of 1.4 million people. Its economy is divers in that it has a number of major industrial (especially aerospace) and rural/agricultural areas and the largest tourist resort in Europe (Blackpool).

Lancashire - Economy

Strengths

 

Weaknesses

 

Lancashire - Gross Domestic Product and Household Income

In the five years to 1991 Lancashire had one of the fastest growing economies in the UK but with the impact of recession and a less impressive aerospace out-turn, the County’s growth has fallen back considerably. In spite of substantial contributions to national wealth creation, Lancashire remains a lower middle ranking region in terms of its general level of prosperity with GDP per head well below both the UK and European union averages. "Leakage’s" from the economy place the county in an even more unfavourable position in terms of household incomes per head.

Lancashire - Average Earnings and Hours of Work

Average weekly earnings of full-time workers in Lancashire remains some 10% below national levels and are the lowest in the North West region for both males and females (manual and non-manual combined). The rate of increase in earnings continues to slow in Great Britain, but remains above the inflation rate. Males and Females in Lancashire continue to work marginally longer average hours than in Great Britain and the North West generally.

Lancashire - Labour Productivity

Only a small number of local industries are achieving higher productivity levels than nationally and the underlying trend (excluding aerospace) points to a substantial and widening gap between Lancashire and Great Britain.

Lancashire - Economic Standing in Europe

Lancashire is a below middle-ranking region in the European Union in economic terms. The European Commission’s latest analysis of regional wealth or income generation per head of the population estimates a level of GDP per head for Lancashire of 91.1 (EU average = 100) (2) . This represents a fall of three percentage points from the previous estimate of three years earlier. The County ranks 83rd lowest out of the 179 regions of the Community (3), some 37% of EU population being in regions with lower levels of per capital incomes than Lancashire. These include all Objective 1 areas, the lagging or less developed areas, covering the whole of Greece, Ireland, and Portugal, southern Italy, most of Spain and the new Lander formerly in East Germany as well as the newly designated Merseyside and the Highlands and Islands of Scotland. If these areas are excluded and Lancashire is compared with the developed parts of the EU only, its position is much less favourable. Only 15% of the population of the "developed" Community are in regions with lower GDP per head levels than Lancashire, half of these being in other UK regions. Among Northern England sub-regions, Cheshire and Cumbria are exceptional in having levels of GDP per head above the EU average, 104.0 and 103.0 respectively. Greater Manchester’s figure is comparable to that of Lancashire.

The leading regions in economic terms in the European Union are mainly the large cities or city regions, Hamburg, Ile de France (Paris), Greater London and parts of southern Germany and northern Italy. The gap between the richest and poorest regions remains considerable: for example, in 1991 the top ten regions had an average income per head some 3.5 times greater than the bottom ten (4.5 times including the new German Lander).

The accession of Sweden and Finland to the European Union could improve the prospects for regions in Northern England, including Lancashire, which are geographically better placed than most to intensify their economic relationships with them. Overall, however, the likelihood of any major improvement in Lancashire’s economic standing, relative to EU averages, is small and the probable prospect is that the County’s present position will be broadly maintained.

Lancashire - Areas of Focus

Lancashire is an area with a genuine need for radical economic and social regeneration having:

Fundamental weaknesses of infrastructure.

 

Economic development initiatives should include not only new infrastructure, and new services but most importantly real economic growth - not merely rationalisation of existing resources.

Fr this and other reasons, a number of key organisations decided in 1995 that the opportunity for the region to become more competitive because of the implementation of the new Telecommunications and Information Technologies (Telematics) should be seriously considered. The IRISI programme presented a clear opportunity to do this.

The Inter Regional Information Society Initiative (IRISI)

The Inter-Regional Information Society Initiative grew out of the Delors White Paper which identified the large-scale adoption of applications of computers linked to telecommunications (telematics) as a key factor in the future global competitiveness of Europe. The pilot programme has been administered under contract between six regions and the EC, which expired on 31 March 1997. These regions are North West (England); Valencia (Spain), Nord-Pas de Calais (France), Saxony (Germany), Central Macedonia (Greece) and Piemonte (Italy).

A North West IRISI Steering Group was formed in 1995 to determine as fully as possible ways in which actors in the region were already deploying telematics and information infrastructures.

Key organisations in each of the sub regions in Lancashire were asked to assist in this process by staging workshops and demonstration events. In Lancashire, a working group was set up to stage such events and identify organisations in the region that could contribute. I was asked to take on the role of co-ordinator for these events and became the Convenor for the Lancashire IRISI Working Group. From its earliest beginnings a great deal of importance was placed on the development of a cross-sectoral network to support the collation of information for a North West Information Society Strategy.

This took two years to develop, through a concentrated effort of a number of sub-regional and thematic working groups. The completed strategy document highlighted the benefits of telecommunications and information technologies and stimulated demand to the point that Government offices are now receiving proposals for major telematics projects, both large and small, from organizations across the region.

The other IRISI regions all have regional government with some influence and resources. It makes a considerable difference and places the North West at a relative disadvantage since there is not a recognised representative political except via its five constituent county authorities (Cumbria, Lancashire, Cheshire, Merseyside and Manchester). However the North West IRISI has developed real partnerships and meaningful consensus in the implementation of telematics projects throughout the region.

Key organisations in the North West such as the North West Partnership (a partnership of business and institutional organisations) and The North West Regional Association (a body representing all North West local government authorities) have been encouraged to introduce priorities into their economic strategies. Such action has resulted in the establishment of ‘priorities’ in economic strategy documents used in the determination of European and National government budgets.

The North West IRISI Strategic Priorities

Cross-sector consultation over a two year period enabled North West IRISI to identify key Information Society issues and to develop priority areas and actions for organisations working in partnership to implement.

These priorities are:

  1. To Develop an advanced, region-wide telecommunications infrastructure, providing broadband access and services to the region’s citizens and businesses, and which is vital to the region’s economic growth and social well-being.
  2. The region’s businesses and communities must profit from access to information and to global markets and new opportunities for export earnings, inward investment, new ways of working and new types of enterprise.
  3. High quality and cost-effective education and training for the region’s population holds the key to economic prosperity and social cohesion in the next century and should maximise the benefits of the Information Society.
  4. High quality support for businesses, from each other and other agencies, through the creation of electronic learning and supply chain networks, is vital in increasing the region’s competitiveness.
  5. The potential of telematics in improving citizens’ and visitors’ services will be exploited as a means of improving the quality of life and the environment of the region, thus enhancing the region’s image.
  6. Widening awareness of and access to telematics is a pre-condition for truly realising an Information Society. Accordingly, the North West of England will seek to promote and develop a cross-sectoral range of services and applications to meet the needs and interests of its inhabitants.

The Information Society in the North West compared with other IRISI Regions

The introduction of Telematics in the other regions is moving quickly. Five other IRISI regions (Valencia, Nord-Pas de Calais, Saxony, Central Macedonia and Piemonte) are making significant progress in the implementation of the Information Society. The strengths of these regions can be summarised as follows:

 

Management Committee Representatives from Valencia, Nord-Pas de Calais, Saxony, and Central Macedonia are full time employees of IRISI in their respective regions.

The innovative aspect of the IRISI approach rests on the institutional mechanisms by which the strategy has been developed, i.e. a partnership between regional and local institutions and the business associations plus representatives from training and education institutions, trade unions, chambers of commerce, the co-operative movement and the voluntary sector.

The research into the requirements of organisations in the North West in terms of priorities and actions and the resultant development of major Telematics projects such as Telecities, GENESIS, North West Regional TechWeb project, Future for Change, and GEMESIS as well as programmes in the North West which have won Bangemann Awards, all demonstrate that IRISI has been successful to date and that there is a clear need for the initiative to continue.

The RISI project, with a budget of 6 million ECU’s, concerns 23 regions across Europe and is seen by many as having broadly the same objectives. This means that, overall, nearly 25% of all eligible regions under the Structural Funds are currently engaged in the process of strategy building and of its translation into an action plan. Moreover, the Commission is launching pluri-regional pilot applications under Art. 10 of the ERDF and Art.6 of the ESF, with a budget of 15 million ECU’s, for demonstrating best practice in the regional deployment of the information society (RISI).

It is necessary to encourage the implementation of telematics by the general public, which can have a catalytic effect for the region and trigger many private sector initiatives. The Commission is already co-financing some actions, e.g. for setting up tele-cottages in rural areas, under Objectives 1, 5(b) and 6, and local telematics projects under the Community Initiative LEADER II. There are many other Community actions related to the information society for example, WOLF, with a budget of 530 000 ECU’s financed under the Article 10 of the ERDF and IMPLACE initiative to stimulate the use of advanced ICTs by manufacturing SMEs in LFRs and the MARSOURCE initiative to favour the use of electronic trade systems for fishery products thereby contributing to overcome the disadvantages of remote areas.

Development of IRISI in the North West

The threat of globalisation and its effects on jobs and the development of a successful economy indicates that now more than ever, we must encourage the community as a whole to reach out to a wider audience, we must be aware and be wary of the threat of new entrants into our markets. This extends further than Europe, we must guard ourselves from the significant competitive advantages gained by advances in the development of the information society in Asia and the Americas.

The previous two years have concentrated on the development of the North West Information Society Strategy. This, through a concentrated effort of a number of sub-regional and thematic working groups, has highlighted the benefits of telecommunications and information technologies and stimulated demand to the point that Government offices are now receiving proposals for major telematics projects, both large and small, from organizations across the region. As yet however, there is no ‘Center of Excellence’ providing examples of best practice, case study material and examples of projects from other parts of the European Union. There is no central coordinated effort to assist organizations in the development and implementation of effective telematics initiatives and no liaison with the government departments responsible for instigating such activities.

Lancashire IRISI

In February 1995, a workshop was staged in Lancashire to promote awareness of the IRISI Initiative. There was wide representation (approximately 150 people), from all sectors including business groups, local authority departments, emergency services, airport authorities and representatives from educational establishments from Primary schools to Universities.

The workshop highlighted the importance of developing a telematics infrastructure in the region. It concluded that business will increasingly use telematics, and public organisations (administration, education and community bodies) will play a major part. In assisting these organisations with their telematics requirements the region will, in turn, develop a more rapid take-up from the business community helping them become more competitive and enabling them to market their products and services more effectively throughout the world. It concluded that the Lancashire community as a whole must be encouraged to embrace the new communications technologies if infrastructure is to improve. Businesses will not necessarily introduce telematics technology until their customers and suppliers require that they do so. The sooner it happens the more competitive businesses will become. They will steel a march on competition overseas and increase their chances of reaching new markets.

A community cross sector telematics network was set-up to facilitate the use of telematics by public, community and administrative bodies. Education establishments were focused on the development and training of Lancashire people in the benefits of the new technologies spurring their use in the purchase of goods and services, the maintenance of supplier/customers relations and up to the minute information on goods and services.

On the whole we found that the region was very interested (and concerned) about the developments of the new communications technologies. While making sure that the region benefited for the developments of new applications, there was also concern that the implementation of such technology would lead to a more marked differentiation between those able to afford the equipment and those who would not (‘haves’ and ‘have nots’). A demonstration day was organised in May 1995 so that the region could take a more detailed look at working examples of telematics applications and familiarise themselves with the technologists and suppliers in the region.

Following this activity a working group was set up to act as a focal point for people in the region interested in telematics and to provide information to the NW IRISI Steering Group in their development of a North West Information Society Strategy.

Initially, the group only met to organise small demonstrations (by British Telecom and the local cable companies for instance), but there were a large number of requests for attendance at these meetings, which were held every month. In June 1996 there were seventy-one members of the working group and the it was perceived that the group had unfortunately become a ‘talking shop’. A decision was made to change the Working Groups into an Advisory Group and that a number of ‘project specific’ Working Groups would be set up meeting only to discuss either the development of telematics applications, proposals or implementation issues. Each group represented a its own sector.

The Lancashire IRISI Advisory Group comprised of leading decision-makers in the communications field such as Telecom companies and the convenors of the sub-groups. The Advisory Groups main activity was to provide information, advice and resources to the sub-groups and to produce and deliver awareness events. The working groups and their activities are listed below.

The Lancashire IRISI Advisory Group

Convenor, Tony Fawl, Enterprise plc
Key Objectives
Encouragement of Telematics Applications
Awareness & Training Events
Development of Public Information Systems
Cross-sectoral Strategic Programme Development

Activities

Lancashire Telematics Awareness Programme, Enterprise plc

Delivered throughout the county to people and organisations identified by the Advisory Group, as those most likely to benefit. The events address telematic issues in general and include specific communications applications and demonstration days providing access to telematics applications and enabling the participants to experience the benefits of applications relative to their particular needs.

Lancashire World Wide Web Server, Enterprise plc & University of Central Lancashire

Lancashire is represented on the Information Superhighway by its own web Server `lancashire.com’. This is a computing facility located at the University of Central Lancashire. It gives access to information about Lancashire (gathered as part of the project) to the region and to the rest of the world.

Mobilisation of strategic organisations in the Region, Enterprise plc

Advisory group and Sub Groups. Key administrative, corporate and educational institutions are encouraged to develop telematics applications within the Initiative calling on the resources of IRISI and other telematics programmes. There are about 70 representatives on the Lancashire Advisory Group and Sub Groups.

Internet Providers Sub-Group
Current Projects

‘The Internet and You’ publication, the Cyber Cafes project (St Annes, Blackpool, Preston, Morecambe and Blackburn), Public Library Access Points programme (18 libraries in Lancashire)

Health Sub-Group

  • This group is convened by a General Practitioner. His practice has a reliance on computerised management information systems and he is a leading member of the national EMIS user group, which has its own World Wide Web site. Involved in a pilot project to set up a communications network throughout the National Health Service, he is also the computing representative for the North West Faculty of the Royal College of General Practitioners.
  •  
  • Projects include

    TIDE - ISIS project with Lancashire County Council, Social Services Department.

    Education Sub Group

    Community & Voluntary Sub Group
    Projects include

    What Works - a public information project aimed at young people. Tic Toc a project with Lancashire County Council and private industry to demonstrate the usage of Telematics in the classroom.

    Public Administration
    Current Projects

    Public Administration Awareness Programme

    Lancashire Server Development Group
    Activities

    A cultural World Wide Web server for the people of Lancashire.

    Lancashire Server Home Page

     

    Projects

    On-line Disability Information System
    The Lancashire Search Interface
    Lifeline drug-help project

    East Lancashire Telematics Group
    Projects

    Computer Integrated Telephony System

     

    Funding Lancashire IRISI Activities

    A modest sum of money to fund the administrative aspects of the programme was secured, but the vast majority of input was voluntary and dependent on goodwill and, although very encouraging at the start, it became clear that not only did the group require funds for the administration of their resources and time, but also for the projects they were working up.

    By the summer of 1996 the Lancashire IRISI Advisory Group had assisted 47 telematics projects. The value of these projects exceeded £14 million and each project varied widely in scope and resource requirements. Many of these project managers had been encouraged to develop applications after attending one or more Awareness, Demonstration or Training events staged in Lancashire by the Advisory Group.

    Despite this I became concerned that the IRISI project, on the whole, was ‘unseen’. It was an invisible organisation, which seemed to have an air authority but no ‘teeth’. There was no guidance for the activities of the Advisory Group in Lancashire from IRISI North West or from IRISI in Brussels. A number of capable people were involved with the Initiative at all levels, but not, it seems, in the development of telematics applications in any of the regions. Some of the Lancashire Advisory Group members were at a loss why we should have associated with IRISI at all.

    A number of needs were identified that had to be addressed if the progress made was to continue. As the activities of the group became more pervasive, more and more project managers in the region were dependent on other members of the group putting a strain on the resources and ‘good-will’. The Lancashire IRISI Advisory Group decided to submit a proposal to Government Office North West for a major programme to fund the needs of the Working Groups in Lancashire and the implementation of a range of baseline telematics applications which could clearly demonstrate the benefits (or otherwise) of telecommunications and Information technologies to the community.

    The challenge was to identify and introduce a range of applications which would provide a wide variety of services, enhance the efficiency of the region’s public organisations, improve the competitiveness of its businesses, and provide its citizens with greater opportunity for employment and better quality of life.

    The significance of the bid to the strategic objectives of the British Governments Single Regeneration Budget (SRB) was that it would support a number of initiatives across all sectors to achieve a balance of economic and social considerations. This was essential in order to ensure that benefits were spread throughout society, and did not lead to exclusion and further division.

    The Linking Lancashire proposal document was submitted to Government Office North West on September 9th 1996 with endorsement from twenty of the largest private and public institutions in the County. Towards the end of December however, we were notified that the proposal had been unsuccessful in its bid for funding.

    This was a severe blow to the 90 organisations that took part in its development. Motivation within the network became very low with poor attendance at Working Group meeting and Awareness events. In January 1997 a representative from Government Office North West delivered a presentation to the Advisory Group to explain the reasoning behind the decision to reject the bid. It seemed that the bid was too complicated and that there should have been more effective lobbying, in terms of awareness of features and benefits, to the relevant parties within the Government Office. I personally found the evaluation presentation to be subjective. Other members of the partnership were also dissatisfied with the Governments reasoning.

    The Lancashire Advisory Group is still endeavouring to implement as many of the projects in the Linking Lancashire Programme as possible. But the goodwill, relied upon previously, cannot be counted upon and working group members are finding it difficult to justify their activities in Lancashire IRISI to their companies and institutions.

    Government initiatives around Britain can be deemed to have failed in developing the country’s Information Society because the motivation required by organisations across all sectors is very high. It is not just the problems of computer equipment investment or training, but the European attitude to change. We still suffer a technophobia concerning computers and advances in the embrace of ICTs are slow and out of date almost immediately they are introduced.

    The development of Government funded projects to spur on implementation, if the Linking Lancashire model is anything to go by have only led to frustration and exasperation. Other means must be found to encourage society to reap the benefits of this technology. Before these are explored it would be useful to take stock of current attitudes to the Internet in the United States and in Europe regarding business activity.

      

    The Internet, Current Concerns and Opportunities

    The Internet can be considered to be the largest publication that the world has ever known. With more than 100 million web sites available and millions of contributions being added daily, it is seen as both an opportunity and a threat.

    The ability for anyone to publish material and to have that material viewed by anyone with a basic computer system and a telephone line from anywhere in the world, means that there is a seemingly limitless possibility for the production and distribution of all human knowledge, good or bad. It is possible to write a simple page of text, add pictures and graphics, provide an opportunity for the reader to contact you and publish this information on any main Internet host around the world for very little cost. Most important is the ability to update or change this information at will.

    The benefits of such facilities are numerous. The Intrenet contains pages on every topic. In fact the problem is not that there is not enough information, but that there may be too much. At a recent Public Administration Awareness event I demonstrated this to the assembled delegates by searching the Internet for information on ‘Local Government’ and the ‘Internet’. I received search results of more than 100,000 pages of available information. Unfortunately anyone can publish information on the Internet and this can make ‘surfing’ a time consuming and laborious process. Nevertheless, millions of pages of accurate and well presented information is published every month and the Internet is fast becoming a well respected resource for information and training from anyone with access.

    The content of the Internet is different from that of any other medium because it is fast, interactive and cheap. Information can be disseminated that is interesting and informative to look at, the user can interact with the information and rapidly access points of particular interest in the way that traditional forms such as print and video can not. Anyone with only a small amount of expertise in Web publishing has the ability to produce multimedia presentations that have simply not been available previously.

    Our attitudes to this are different depending on which side of the Atlantic we are. A recent highly publicised conference in Geneva was attended by senior telecom officials, government representatives and business people to look at the future of the Internet. The key speaker was Martin Bangemann, the European Unions Commissioner for Industry. The focus for the conference was not the benefits of the Internet, but on how the telecoms companies could be protected form the threat of Internet Telephony and the request for regulatory legislation.

    European companies and educational institutions too seem more concerned with regulating usage than the production of content to promote their activities. There are some exceptions, The automobile giant BMW, the Daily Telegraph newspaper and British Airways all have credible World Wide Web sites but the European Unions own site Europa is cumbersome, poorly designed and slow.

    Crucially there is the same opportunity for publication of material available to the average person in the street as is available to the large corporate or government institutions. The most developed World Wide Web applications so far come from the media. Media institutions are rapidly struggling to develop skills in this new medium, Time-Warner for instance have web sites for CNN, Time magazine, Sports Illustrated etc (all available at www.pathfinder.com) and Microsoft have joined with NBC to produce a very large news site at www.msnbc.com. Newspapers have struggled to embrace the new medium and none more so than those in Europe. The Wall Street Journal for instance offers the ability to search its huge news database and charges a nominal subscription. $49 buys the ability to search through more than 3500 publications such as journals, business items, newspapers and the Wall Street Journal itself.

    The Daily Telegraph is probably the best known European newspaper represented on the World Wide Web with a site that many believe is better presented that the print newspaper itself. Even this creditable attempt however, pails behind the features of the Washington Post (www.washingtonpost.com) which offers, among other things, opportunities for the reader to interact with selected journalists. The most recent innovations however come from Pointcast (www.pointcast.com) which uses ‘push’ technology to deliver specific items of information requested by the user. Much of the World Wide Web however is unfinished and some sites are simply embarrassing. In this respect there can be seen to be many opportunities for major content publishers in Europe to capitalise on this and produce technologically and culturally rich material that can be accessed by the rest of the world. Europe is not backward in the production of media and there is no reason why European media companies can not establish the worlds most popular World Wide Web sites.

    The future of the Web concerns the accessibility of digital video by the user. Few designers have yet attempted to capitalise on this medium with the possible exception of the Movie Database (www.imdb.com) which has an incomprehensibly large database of information available on all aspects of film making, the films themselves, actors and actresses. Possibly the next facility that will be offered is to download the films themselves.

    Selling on the World Wide Web is fast becoming of paramount importance. It is recognised by media analysts that there is still an absence of the ‘Killer application’, an application of the World Wide Web which will encourage commerce and the more widespread use of the Internet across the world. It can therefore still be considered in its infancy. Numerous opportunities still exist for the entrepreneur to discover or develop such an application and there is no reason why this should be left to the Americans.

    There is certainly room for growth. The International Data Corporation, (IDC), a telecoms constancy, claims that European Internet commerce will grow to $26 billion by the year 2001 and that the total investment in the Internet and its many forms will be more than $200 billion by the end of the century. Every 53 days the number of services available on the Internet doubles, yet most of the Web sites available are non-profit making.

    Even the large corporate players such as computer and software manufacturers are still looking for the ‘killer application’. This has seen a number of alliances developing in the hope that organisations can stake out a share of the information provision on the Internet. Rupert Murdock for instance is allying his company with British Telecom and the American telecoms company MCI. The best success stories however, come from the small, more focused providers of information. Travel Web, for instance, a US hotel booking agency claims to have booked 6 million dollars worth of hotel bookings over the Internet in 1996.

    John Wood, a senior Internet consultant with the British technology company Prince, likens the development of the World Wide Web to the pioneer towns of the American Wild West. "The ladies of disrepute were in on the first wave along with the gunslingers and the publicans. The bankers, businessmen and police followed five years later."

     

    The Effects of ICTs on the Community

    The introduction of ICTs have long been recognised as having a democratising effect in employment by helping to break down divisions of labour and encouraging the development of skills of the workforce. In the example of the local doctors surgery above however, it can be clearly demonstrated that the use of ICTs can have a destructive effect on the labour market. It can also be supposed that it would lead to a brutalising effect on the workplace where older skills may now count for little in a market place where workers rights are continually eroded.

    A study was recently carried out by Gilly McHugh and Murrey Saunders of CSET at Lancaster University to look at the incorporation of ICTs into the North West ‘s Human Resources Development Strategy. The report examined the regions economy and highlighted the need for collaborative actions to encourage the take-up of ICTs to help improve competitiveness. The work of Lancashire IRISI Advisory Group contributed to the findings of this report and helped to form the implementation model and the arguments below. It can be applied equally, in my opinion, to other regions within Europe.

    The research concluded that there is still a need to tackle the problem of basic numeracy and literacy within sections of the community before training in ICTs can take place. There is a lack of provision for publicly funded ICT courses at the higher skills level. Unemployed people will find it difficult to access the training that employed people enjoy (usually funded by the employer). Employed people are able to develop ICT skills through experiences at work though this depends on the utilisation of ICT resources in the workplace.

    When CSET questioned a small section of the business community in the North West of England they found that:

    As the size of the sample was only small (58 organisations), CSET suggest that the results are indicative rather than conclusive. However it is clear to see that the organisations interviewed would not consider themselves to be sophisticated users of ICTs.

    The findings of the Lancashire IRISI Advisory Group during the period 1995 - 1997 also indicated that these findings could be applied to other organisations outside commerce, public administration for instance and the health service.

    What was evident though was the use of ICTs as a learning tool within those organisations. The emergence of distance learning and distance working because of the introduction of ICTs can not be ignored and the trend is that this will continue. There are formal home-based distance workers, mobile technicians and multi-site workers and the most common of all, the informal home based worker.

    The informal home based worker probably provides his/her own equipment for working at home even though it may be used in an environment which is ergonomically unsuitable (eg. the kitchen table). He/she will not receive payment for the purchase of the equipment or the use of electricity, heat and light. This person is most likely to be a professional or student whose work involves the concentrated use of PCs from time to time.

    This type of user is highly motivated either because of pressures of work or because they realise the savings in time and energy resulting from the use of ICTs. Or it may be because that person recognise the need to develop new ICT skills in the future and feels that the most convenient method is for study at home.

    Individuals are more likely to adopt ICTs and therefore access telematic applications such as the Internet if they, or a member of their family, utilise ICTs in the working environment.

    According to the European Journal of Teleworking (Spring 1997), the factors that will most influence the small business to purchase ICTs are likely to be:

     

    These factors alone will not determine the take-up of ICTs in the business community. We must still look to the development of the ‘killer application’ for this to happen. We must also be careful to understand that ICTs are not prevalent in all sectors of the business community. Manufacturing companies for instance do not require their shop floor workers to use ICTs. In many cases, ICTs are only likely to be used by administrative and management staff. This is a significant section and the implementation of ICTs across all sectors can still happen. Taking this and the above considerations into account, the development of telematics activity in commerce indicates that:

     

    The problem (or opportunities) facing the European community in the adoption of ICTs in the community could therefore be:

     

    The Information Society and the Media

    The exploitation of the countries skills in a prosperous economic environment is usually dependent on the business community. Commerce will set wage levels and working conditions commensurate with the supply of skilled people to that organisation. It could therefore be argued that the responsibility for the development of an environment in which new technologies are to be implemented should lie with the business community. Employment is the responsibility of employers and since, by its very nature, employment is exploitative, it should be employers who determine the ICT skill requirement of the community.

    A community keen to see the implementation of ICTs for the benefit of all and not just the prosperous should therefore concentrate their efforts on encouraging the use of ICTs through telematics applications. These should be aimed in such a way as to provide practical, demonstrable benefits to a business and its aim should be to make that business more competitive.

    The introduction of ICTs into the business community will enable the workforce to take advantage of traditionally structured training which would be available through commercial training companies or education institutions and using the many distance learning packages that are already available. This will, in turn encourage informal home working and the participation of the family unit.

    You may consider this approach oversimplified and you should consider the other effects of ICT introduction in commerce:

    Bandwidth versus Applications

    The argument for bandwidth over application has been debated for some time. Many feel that the argument has now settled on the side of ‘applications’. However, I feel that it is important to briefly discuss the arguments for both in the context of ICT implementation.

    The development of a communications infrastructure should rely on the provision for electronic communications facilities that are capable of delivering information at a rate that is useful to those wishing to process that information. It would involve, for instance, the laying of wide band telecommunications cable across large sections of the community. The provision of this resource would spur the development of telematics applications. It would also promote the development of more advanced telematics applications since it is likely that the cable laid would be of very high bandwidth (so more data could be passed through it). This is the bandwidth argument.

    The development of telematics applications is, as with all software development, hit and miss. It is impossible to predict the success of an application and it is likely that most will fail. The successful applications will require higher bandwidth only when they achieve success and therefore bandwidth provision would not be required immediately and when it was, the customer would agree to contribute to the cost. If money were available to be spent therefore, it should be channelled to the development of applications through training, awareness and software development. This is the Applications argument.

    It is easy to side with the applications argument because it can be perceived that the initial investment may be small and build gradually as success is achieved. Cable infrastructure is very expensive. However, countries with a poor telecommunications infrastructure need to urgently address this problem as do all countries with a telecommunications monopoly. Most countries in Europe are capable of providing high bandwidth communications but the monopoly telecoms companies are not inclined to do this cheaply.

    In Germany, local telecoms costs for say, the Internet are prohibitive. In the United States local telephone calls, in many areas, are free. Analysts believe that the reason for this is that there are numerous telecoms companies in the United States and they all compete for business, this drives down costs to the end user. Telephone charges can inhibit the use of ICTs. This is a European issue and needs to be addressed urgently.

     

    ICT Implementation from SME Applications Development

    In considering the experiences of IRISI and of the research work carried out above as it applies to the community of Lancashire and the North West, the following simplified ICT implementation points should be considered.

    Activity Results
    Development of Business Telematics Applications

     

    1. Implementation of ICTs into the business community.

    2. Increase in informal home based work in some sectors.

    3. More competitive management workforce

    4. Less SME overhead.

     

    Stimulation of home:

      · Education resources

    • · Home entertainment resources

       

    Increase in off the job training.
    • Increased access to ICTs in the family environment.
    • Increase in home ICT education.
    • Demand for entertainment and education material delivered via ICTs
    Demand for employees with ICT usage and software development skills.

     

    1. Regional improvement of IT and ICT related skills.

    2. Regional competitiveness attracting outside investment.

    3. Skilled workforce attracts global telematics employment using ICTs.

    Collaboration between business and education institutions and the production of competitive on-line education & business resources Improved employment in the region Improved Gross Domestic Product
    Highly trained workforce
    SME prosperity

     

    Opportunities for the Media

    The recognition accross all sectors that the Information Society will play a major part in shaping the European economy within the next ten years. The requirements of the business sector to utilise business information to remain competetive has, in my opinion, stimulated a need for content rich business applications using ICTs.

    The media will play a fundamental role in such implementation. The reasons for this are numerous and can be summarised as follows:

      1. Interactive multimedia is superior to other single media in its effectiveness at delivering information
      2. Multimedia information is cheap to package and transport, especially electronically
      3. Multimedia is entertaining in that it motivates the user by displaying information in an interesting and informative manner.
      4. Rapidly changing employment environments mean that more people will require more and increasingly diverse skills
      5.  Eg. Word processing. In the last ten years I have personally received training in Wordstar, Word Perfect and Word for Windows. I also require supplementary training in html programming and Microsoft Front Page. Continuous on-the-job training will be commonplace.

      6. Media organisations are experienced in processing information and motivating people (eg. selling products, education and entertainment).
      7. Media companies are already experienced in the utilisation of ICTs.
      8. Recently Bill Gates of Microsoft visited France and rather undiplomatically pointed out to Jacques Chirac that the French Government did not seem to use many PCs. He decided to site his new research facility in Cambridge rather than at a new technology Village in Cannes.

      9. Schools are introducing ICTs at a faster rate than any other sector. School children have a natural affinity for multimedia and schools are a ready and willing resource in the development of telematics applications.
      10. Education establishments recognise the threat to traditional learning by developing its own distance learning projects. They are not as experienced in multimedia as commercial companies and there are now numerous opportunities for collaboration.
      11. The development of new, and the updating of old, skills will become increasingly important. When I left school my careers advisor told me that I would expect to have five or six jobs in my career. Graduates are now expected to have five or six careers in their lifetime.

    Media companies all over the world are positioning themselves to take advantage of the opportunities that are presenting themselves. It will be the media that develops the ‘killer application’ for business use of ICTs and it will be the media that will play an increasing role in the development of commercial training materials and the improvement of the regions community skill base.

    It is imperative that European media organisations embrace ICTs in the development of content rich materials if Europe is to compete in the worlds Information Society.

    Tony Fawl
    Convenor, Lancashire IRISI Advisory Group
    Innovation Executive
    Enterprise plc
    England

    tony@provider.co.uk

     

    Bibliography

     

    COM(96)73 of 13 March 1996 on "Universal service for telecommunications in the perspective of a fully liberalised environment".

    Lancashire County Council. County Planning Department, May 1996 "LANCASHIRE - Population, Income, Wage Levels",

    "Public access to information society services" of  COM(96)73 of 13 March 1996 on "Universal service for telecommunications in the perspective of a fully liberalised environment"

    The Road Ahead, Bill Gates, 1995

    Lost in Cyberspace, Victor Smart and Jonathan Miller, The European 11-17 September 1997.

    ELTEC Local Economic Review 1995/6

    McHugh, G & Saunders, M the Impact of Information & Communication Technologies on Work and Organisations in the North West of England. A report prepared for the European Union under the IRISI action 1997.

    "Linking Lancashire", The Lancashire Communications Partnership, Sept. 1996

    "The Information Society in Lancashire", Lancashire IRISI Advisory Group, May 1996

    First Report on Economic and Social Cohesion (CEC, November 1996)

    COM(96)73 of 13 March 1996 Green Paper "Living and working in the Information Society: people first", CEC July 1996.

    COM(96)332 final of 10 July 1996 on "Inventing tomorrow - Europe’s research at the service of its people"

    Competitiveness and Cohesion: Trends in the Regions - 5th periodic report on the social and economic situation of the regions in the Community.

    The European Journal of Teleworking, The official Journal of the ECTF (ISSN: 0966 7458) Vol 4 No. 4 Spring 1997.