A Resilient Digital Australia

Digital readiness is a defining characteristic of successful 21st century societies, and where we choose to invest is key.

Digital readiness is defined as how well-positioned a country, state or territory is to benefit from the digital economy across seven components: basic needs, human capital, business and government investment, ease of doing business, startup environment, technology adoption and technology infrastructure.

Understanding our digital readiness supports decision-making in key areas where further investment or acceleration of capabilities may be required. 

Cisco released its second Australian Digital Readiness Index in 2020, providing a snapshot of Australia’s evolving digital capability at the state and territory level, and acting as a guide for where investments are needed. 

Australia remains among the forefront of digitally transformed nations, ranking 12th across the globe in terms of digital readiness (according to Cisco’s 2019 Global Digital Readiness Index). It follows Iceland and Luxembourg, and stands among Singapore, the US and European nations. 

Little did we know that two years later the value of those investments would be repaid many times over by providing Australia with a robust and comprehensive digital capability that has played a critical role in our response to the COVID-19 crisis. While the pandemic has exacted a high economic and social toll, its consequences would have been much greater had Australia not already made significant investments in digital readiness. 

For example, the deployment of high-speed national network infrastructure has meant many organisations can keep their staff both safe and productive by enabling them to work from home. That same infrastructure provides a vital connection for thousands of students who participate in remote learning and has become the backbone for remote health consultations, keeping many frontline responders safe. Likewise, investment in digital skills has allowed businesses and government agencies to accelerate their rollout of digital services, including bricks-and-mortar restaurants and retailers who have switched to e-commerce to continue trading. 

The investments will play a vital role in helping Australia navigate through the post-COVID-19 world, but further work is needed if we are to achieve the productivity uplifts necessary to bring Australia out of recession and ensure we remain competitive. Cisco’s global research has always shown a high correlation between digital readiness and economic prosperity, and other nations are stepping up their investments accordingly.

This infrastructure will deliver to its full potential only if we invest in building the skills of our people to use, create and defend digital services. In addition to the need for ongoing support of the higher education sector, Cisco has joined forces with TAFE Directors Australia and our partner Optus to call on the Australian Government to assess the growth in technology-intensive jobs requiring sub-degree-level qualifications in order to help the TAFE sector more rapidly prepare for, and respond to, anticipated demand. We have also called for funding of the development and delivery of micro-credential digital programs to help in the reskilling and upskilling of workers displaced by recent developments. 

Australian industry has a desperate and growing need for people equipped for a dynamic, digitised world, including having general digital skills that help businesses to move up the value chain as industries further automate.

Development of “blue tech” or digital trade skills will be vital to meeting those needs. 

Critically, we must also be sure not to lose sight of the need for the outcomes of these investments to be shared equitably across Australia. Equitable access to digital services and training represents the 21st century equivalent of the age-old Australian concept of giving everyone a “fair go”. The COVID-19 crisis has highlighted the importance of continued investment to ensure those communities that are least served digitally today do not experience additional hardship from future events. 

It is important that we don’t become complacent about Australia’s digital readiness. The index highlights the need for accelerating new investment with a focus on improving Australia’s global competitiveness and bridging the divide between states to build further societal resilience. Growing digital divides within and between states need to be addressed for Australia to unleash the totality of its digital potential. Government, industry and academia will have key roles to play in empowering our country to become a global digital leader and build resilience for our economy. The example of rapidly emerging countries such as Singapore, which ranked first in the global Index, should help Australia set its ambition for digital readiness. 

Digital readiness is the key to economic prosperity, but it is also critical to building societal resilience. Only by continuing to invest in our digital capabilities can we maximise the benefits in the good times and ensure we are best placed to manage the future crises that will inevitably come our way.