Government urged to lend more backing to digital economy

By Nicola Riches | 25 November 2014
 

The government has come under fire for hindering Australia’s progress in the digital economy.

In a far-reaching report issued by Ernst and Young today, the coalition government is seen as being complicit in stemming digital growth by failing to get behind issues of data privacy and speeding up the NBN roll-out.

40% of consumers and 67% of digital ‘thought leaders’ interviewed for the report say that Australia runs the risk of being left behind in the digital economy because of government policy, or lack thereof. Only 14% believe that Australia’s digital economy is more advanced than other leading countries.

Australia is ranked 18th in developed nations for “network readiness” by the World Economic Forum. However, when it comes to affordability for digital access, Australia’s ranking plummets to 49th in the world.

“Australians want their government to get involved in issues of data privacy, and to continue building infrastructure such as the NBN. But having the right infrastructure is a foundation step in securing Australia’s digital future and should not be seen as the panacea,” said Ernst and Young customer leader Jenny Young.

Young added: “We need to fast-track work already being done to improve online cost, speed and access…Government has a critical role to play in driving new policy and investment, and creating a national culture of innovation. But the onus is also on industry to drive competition and innovation - while elevating customer experience in digital.”

The report states that high-profile global security breaches and the ongoing public debate around the use of customer data have pushed privacy and security to the front of consumers’ minds.

In fact, the vast majority of Australians – some 80% - believe government should force organisations to be more transparent about the data they use. 61% of Australians are concerned about organisations accessing details about their behaviour online and 65% are worried about what personal information organisations can access.

The report also drilled down into online usage, both across smartphones and via home computers. Among the lengthy and detailed findings, it claimed that Australians believe that the best online experiences come from TV, film, media and music websites, while the worst performing sites are in the government, utility and gambling sectors.

Ernst and Young is quick to point out that the top-performing sectors were quick to embrace digital and this therefore explains their success with consumers.

Finally, today’s research shows what many already knew, or suspected, that Australians have what could be seen as a love-hate relationship with their smartphones.

A fifth of Australians admit they spend more time on their smartphone or tablet than they do talking with their partner or friends. This rises to almost one in three for males aged between 25 and 34.

“Australians have a love-hate relationship with their smartphone. They appreciate the convenience and control it brings to their lives both personally and at work as they can be connected ‘anywhere-anytime’. But this can create a ‘paradox of connection’ that can actually make them feel disconnected to the real world,” Young said.

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