Initiative 2: Enterprise Development Fund

This initiative addresses industry development issues and supports companies engaging in collaborative projects. Several key building blocks to support future growth have been funded.

Cluster Development Projects: To take advantage of growing industry momentum to build business capacity through cluster development, a number of sub-sector cluster projects have been funded. Each of these projects has undergone capability audits along with market opportunity analysis. Actions to maximise business opportunities are now underway.

Software Sector Cluster: The cluster development process involved three stages: preparation, engagement and launch, all of which have now been completed.

A background paper on the Tasmanian Software Industry identified a number of opportunities for collaborative sales and marketing activities. These include development of management skills and communication and partnership development.

Three Software Cluster Workshops were held with significant progress made towards advancing the five initiatives for growth that were identified earlier in the project. These initiatives include management and staff skills development, improving distribution channels, developing niche areas, marketing and branding the sector nationally and overseas and collaboration on projects and market intelligence.

Funds have been allocated to support two initiatives from the Software Sector Cluster. These include the Virtual Board and an addition to the Tasmanian ICT Directory to include a portal for information sharing regarding distribution channels.

Virtual Board: This project is designed to help organisations achieve commercial objectives by identifying barriers to success and strategic opportunities through the provision of expert advice in sales, marketing, finance, law and business resources. Businesses without the capacity for their own Board governance structures are target businesses for this project, addressing periods of high risk for emerging technology businesses.

Marine ICT Cluster: Funded under the Intelligent Island Industry Development Small Grants Program, this project will work towards exploring opportunities for companies to undertake industry development and marketing activities.

e-Health Community Cluster: Assessment of eHealth market opportunities and local capabilities of Tasmanian companies and organisations has been completed and the Tasmanian eHealth Association established as a result of Intelligent Island support. MediConnect, HealthConnect and Pharmacy Guild of Australia development and test bed activities have been attracted to Tasmania and opened access to major national eHealth markets for Tasmanian ICT businesses. Further activities targeting increased access to national and international eHealth sector opportunities, supporting the formation of a network of eHealth companies in Tasmania, attracting key eHealth development projects to Tasmania and promoting Tasmania as a location of choice for eHealth development are being supported by Intelligent Island through to December 2005.

Creative New Media: This project will establish a Creative New Media Cluster to capitalise on the opportunities presented to Tasmanian industry to develop cross-platform digital products and content in web, tv and broadcasting, film, and music and audio.

Tasmanian ICT Directory: The Tasmanian ICT Industry Directory, intelligentisland.com.au is an online resource providing information on the capabilities of Tasmanian ICT businesses. This enables potential customers and commercial partners access to details on Tasmanian ICT companies and their areas of expertise.

The directory is supporting the endeavours of around 100 Tasmanian ICT companies in accessing national and international markets. The directory operates as an information distribution point for the industry to promote industry news and events. It also helps to encourage growth and investment within the state’s ICT sector by improving industry self-awareness.

Tasmanian ICT Survey: The Tasmanian ICT Industry Survey provides current and objective information on the Tasmanian ICT industry to enable the development of appropriate industry policies and strategies and to measure benchmarks by which the efficacy of policy implementation can be gauged. Two surveys have been funded covering the 2001-02 and 2002-03 financial years. Details of both the survey findings can be found at www.development.tas.gov.au/intelsurvey.html.

The latest key indicators for the Tasmanian ICT industry show growth in employment, revenue and research and development expenditure.

The surveys found that with over 2,800 employed, Tasmania’s ICT industry grew almost 5 per cent over the two year survey period. This growth rate outpaced the national rate of 1 per cent for the same reference period. The number of Tasmanians employed in the ICT industry per 1,000 people employed is 13.5. This concentration is higher than the ICT industry density rates for Queensland, Northern Territory, and Western Australia. Revenue generated by the Tasmanian ICT industry grew 7.4 per cent or 80 million over the two year survey period from $1.08 billion to $1.16 billion.

The surveys also showed that given the employment size of the Tasmanian ICT industry, relative to the other states in Australia, Tasmania has a relatively strong ICT Research and Development (R&D) base. In 2002/03 R&D Expenditure was $11.3 million, up 20.2 per cent from the previous survey period. This equates to an increase of $1.9 million in R&D expenditure.

Software Mark: The Intelligent Island Program has funded 11 companies to undertake the initial pilot program for S|E|A|’s SoftwareMark™ . This program is the ‘hallmark’ of competency for Australian software developing organisations. Based on a formal certification program, the program was designed to develop a core group of Tasmanian ICT SMEs who understand the value of major IT standards and have experience in developing the business processes required to implement such standards.

One company, Geometry, has undergone reassessment and has been awarded SoftwareMark™ Silver Status, the first company in Australia to do so. The other 10 companies will undergo reassessment during 2004.

Commercialisation Fund: Designed to accelerate the path to market timeframe for ICT projects demonstrating commercial potential and establish a more reliable early stage pipeline to potential investors and partners, creating greater economic value for Tasmania by increasing the number of start-ups and licences. This project is currently under development.