PICTURE THIS: It's 2012 and New Zealand has 100 IT companies each earning
more than $100 million a year; ICT export income is worth $16 billion a
year, or 10 percent of GDP; there are 125,000 ICT jobs.

Have we got the right stuff to be part of this quantum leap? Have you got
what it takes to lead a Top 100 ICT mover and shaker? Will the Government
do its bit to help make it all happen?

All these questions and more have leapt to prominence since the
Government's ICT Taskforce unveiled its vision last week. Its draft
report, downloadable at http://www.industrytaskforces.govt.nz (see below for
further links to articles on the report) sets out
some lofty goals for ensuring the sector plays a key role in achieving the
Government's aim of getting NZ back into the top half of OECD nations.

Canterbury Software is in on the ground floor, and Taskforce member Dennis
Chapman reckons the time is right to go for gold. "At last we appear to be
getting some traction at Government level," he told a CS forum on November
26 at the Canterbury Innovation Incubator. "The key now is to get enough
traction with the general public. All any Government is interested in is
getting votes."

Industry NZ's Taskforce group made Christchurch its first port of call in
a series of meetings around the country designed to get grassroots sector
feedback on the report. Crucially, it wants ideas for an action plan to
ensure no time is wasted by both Government and the private sector in fast-
tracking growth along the lines suggested in the report.

Those who attended the meeting, called at short notice, had plenty to say.
Hot issues included Government procurement policies failing to support
local players, R&F incentives, Government barriers to using mentors with a
stake in the companies concerned, education's failure to deliver
appropriate courses run by qualified teachers and many more.

Now Canterbury Software wants to continue the discussion on this email
forum (sign up at http://www.canterburysoftware.org.nz/forum.htm). You
don't need to be a CS member to post your thoughts, just sign on for the
forum and tell everyone what you think. Ideas will be packaged and sent to
the Taskforce by the January 31 deadline for submissions.

WHAT THEY SAID (paraphrased)

Just to get you started, here are some snippets from  straight-talking
Christchurch luminaries who attended the Taskforce report meeting:

KEITH COWAN, JADE: We're talking about quantum change here, but I believe
it's possible. To be part of this, the Canterbury Software cluster needs
to multiply by a factor of 10. That needs all sorts of things to happen �
a whole heap of shit needs to take place. It needs to happen quickly and
that means somebody ballsy needs to ensure it happens.

DENNIS CHAPMAN, TASKFORCE MEMBER: It's difficult to identify which
companies can do $100 million, and we don't propose to pick winners now.
The idea is to set up the structure so those companies can grow. There is
a problem with a lot of companies in the $2 million to $5 million range
that are not going to get any bigger because the CEO is the inventor and
he won't let it grow, and he won't bring in the right people.

ROB EARLE, ECO HOLDINGS: The trouble with NZ is that everyone wants to be
a CEO, to say they own their own company. The Kiwi mentality is that 'I
can do it all own my own'. We should be matching services needed to
markets. Those with expertise in obtaining funding or exporting should be
merging with technology-driven companies. We've got too many small
companies being spawned off and not enough people staying with mid-sized
companies and helping them to grow.

GRANT RYAN, REAL CONTACTS: I really like the report. The target of 100
companies at $100 million gives entrepreneurs something to aim for and
there is the potential in Canterbury for quite a few to reach that target.


DAVE LANE, EFFUSION: There are lots of disincentives for companies to
grow. There is the issue of compliance costs, and hiring people is
difficult. The industry needs a strong apprenticeship scheme so companies
hiring students can afford to take the risk, and work through the hit in
production that's needed to bring someone up to speed.

VICKI HYDE, SPIS: What applies to electronics - and exporting widgets -
doesn't necessarily apply to software. Encouraging large electronics
companies to develop may help to spawn lots of smaller ones - we've seen
plenty of examples of that - but that doesn't necessarily happen in the
software sector.

ROSS BROWN, UNIFY: The mentor-funding  rules need to be changed. We need
younger business people and they don't have time for altruism. A mentor
needs to have a shareholding in the company so they will benefit in the
long term, but the current funding rules don't allow them to be paid if
they have a commercial interest.

SUE STUBENVOLL, CREATIVE LOGIC: Banks have no method of evaluating the net
present value of software; they put it in the too-hard basket. We need to
get the banks themselves, working as a group, to set up a risk management
framework to evaluate software and IP.

TED WAGNER, TAIT: We need a VC industry in NZ. Banks are not set up to
take risks.



LINKS:

ICT Taskforce report for download ((PDF file, 737KB)
http://www.industrytaskforces.govt.nz


Have your say at the Canterbury Software Forum
http://www.canterburysoftware.org.nz/forum.htm.

Infotech  articles: ICT report deserves kudos
http://www.stuff.co.nz/stuff/0,2106,2120214a1983,00.html
&
ICT report hailed
http://www.stuff.co.nz/stuff/0,2106,2120226a28,00.html

ComputerWorld article: ICT Taskforce report polarises developers
http://www.idg.co.nz/webhome.nsf/UNID/55624F09D78CD684CC256C78007FC508!opend
ocument

Carol Webb
WebbWords
32 Lindsay St
St Albans
Christchurch
Tel: 03 377-6402
[EMAIL PROTECTED]










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