This workstream discussed how best to unlock the potential of ICT to boost Scotland’s economic growth, and in particular to address Scotland’s underperformance in productivity levels.  Scotland spends as much on ICT per capita as most developed nations, but does not see the same returns on investment.  As a result, there is an estimated £2 billion balance of payment deficit per annum to pay for ICT. 50% of productivity growth is attributed to the skilled use of ICT. There is insufficient data about the situation in Scotland, and the ICT Forum is now addressing this with the objective of measuring ROI on ICT spend in Scotland.

Scotland ranks 2nd behind the South East in ICT adoption. The infrastructure is relatively good, as long as this is maintained in terms of next generation broadband. However compound slippage in productivity growth could amount to some 20% over the next few years.

The ICT Forum has been created to enable interested parties to share experience and to develop a shared understanding of how the skilled exploitation of ICT contributes to productivity. This should be part of a holistic approach to closing the productivity gap and involves:

• the development of high-value solutions to complex industrial and commercial problems;
• identifying the barriers that need to be overcome to maximise the skilled exploitation of ICT across Scotland’s economy;
• a new set of actions, building on existing intiatives, that both private and public sectors can take to raise productivity through ICT

Discussion centred on a range of issues:

• UK considered good at managing projects, but not at managing change (which US does well);
• In US it is the norm that the CIO is represented on the Board, with a recognition that investment in ICT exists to transform the business and produce a return on investment. In the UK, IT management is usually in a reporting chain to the Board rather than visible as a critical enabler of success;
• Concern about 50% drop in young people studying ICT subjects, and now down to a single figure percentage for young women;
• How do we reinvigorate young peope into IT again? – need to demonstrate its capacity for innovation, young people who want to change the world should be encouraged into IT;
• Scotland does not have one of the top-ranked e-shops which compel the visitor to purchase on-line – by population, we should have 9 or 10 of the top tier e-shops in the UK;
• Bad IT can be detrimental, and in some parts of public sector the alignment of people and processes has been difficult to deliver;
• SMEs are the base of Scotland’s economy, and often don’t have the same people resource. Importance of shared best practice;
• ICT can have a fast, and disproportionate, impact on helping us climb out of recession