An Overview of IT, Communications and Electronics
by John Higgins

Intellect is the new association created to give a single powerful voice for the information technology, telecommunications and electronics industries in the UK and incorporates members of CSSA and FEI. Intellect represents more than 1, 000 organisations ranging from blue chip multinationals through to early stage technology enterprises.

Intellect is committed to improving the environment in which our members do business, promoting their interests and providing them with high value services.

Delivery.  The defining byword for the second term of this Labour Government.  Little over a year after his re-election, the first meaningful words the Prime Minister uttered on the steps of Downing Street and the underlying motivation behind the Chancellor's Budget and Comprehensive Spending Review (CSR), were designed to demonstrate to the wider electorate that the Government was committed to improving the quality of public service delivery and to wider economic reform.

Indeed, the Government's economic achievements in recent years have been commendable.  The lowest inflation and interest rates for 30 years, the lowest ever rate of Corporation Tax, a million more people in employment and less revenue going towards debt interest than in 1997.  Yet much remains to be achieved.  If was about proving that the Labour party could govern effectively, then the period , if the Prime Minister is to be believed, are about proving that a Labour government can deliver on its promises and fundamental to this is the role of information technology, electronics and communications (ITEC).

No one can doubt the importance of our industry for the UK and its socio-economic well being.  Whether in manufacturing, sales and marketing or services and intellectual property, ITEC industries generates the following contribution to the economy:

• around 10% of UK GDP;
• more than 1.1 million highly-skilled jobs;
• at least 15% of total UK trade; and 
• more than £34 billion per year in UK exports.

Equally importantly, our members provide the technologies, products, knowledge and services which drive the key processes of our national economy and our public services: namely productivity, innovation and competitiveness.

Every aspect of our national life, both personal and professional, relies on the effective exploitation of our products and services.  From financial services, the retail sector, digital TV, the NHS and our armed forces, all are dependent on the ITEC industries in one form or another.  To this end the transition to a knowledge economy will be underpinned by the companies which Intellect represents. 

There is little doubt that as an industry, we have faced a number of unprecedented difficulties and challenges over the past 18 months.  Whilst at the same time Government has begun operating more effectively at a number of different levels, whether international, European, national or local.

Yet our core objectives remain the same.  Intellect seeks to:

• develop, promote and support initiatives that measurably stimulate demand for our members' products and services;
• encourage support for the growth of our industries in the UK;
• represent our members in Europe through our leadership of the European Information and Communications Technology Industry Association (EICTA) and other bodies; and 
• avoid the inappropriate regulation of our industries.

In order to achieve these goals Intellect works closely with a number of high-level opinion formers across a range of Government departments, agencies and other organisations.

We are working with the DTI and the DCMS to ensure that the Communications Bill creates the appropriate regulatory environment to promote competitiveness, creativity and innovation in our industries and for our customers.  We also worked closely with HM Treasury on the recent introduction of a 25% R&D tax credit for larger companies.  Whilst we continue to work with the Home Office to co-ordinate the technical input during the Entitlement Card consultation process.  Moreover we continue to play a leading role, through the development of alliances and our participation in organisations such as the Broadband Stakeholders Group, the Alliance for Electronic Business and the Digital Content Forum.

Broadband Britain remains a key objective, not just for our members but for Government as a whole, given its role in improving public services, as well as enhancing business effectiveness and private lives.  Whilst the demise of ITV Digital, means there is now a greater need than ever for an effective role to be played in the promotion of digital television.

Moreover, there is much to do on environmental issues such as the WEEE directive; building greater public trust and confidence in eBusiness through programmes that promote information security and the use of authentication.  Strategies for improving the competitiveness of the UK's ITEC industries, such as focusing on design, the development of intellectual property capital, and other value-added activities that will broaden the base of our sector are challenges which have to be tackled.

Yet the public sector remains our greatest challenge.  The importance of eGovernment to the Modernisation agenda cannot be overstated.  However, for the Prime Minister to realise his target of delivering 100% of public services electronically by 2005, citizens must develop and maintain confidence in the Government's IT infrastructure and in its ability to retain and protect privileged information.  In this regard, the ITEC industries have a pivotal role to play.

Government and industry have a responsibility to deliver efficient and effective public services electronically.  In recent months a succession of reports have highlighted the digital divide; trust and confidence; low take-up of online services; and potential IT project failure as the primary barriers to the widespread implementation and adoption of eGovernment services.  But this is not surprising, according to the National Audit Office (NAO) even though over half the 524 services provided by Government were available electronically, most only provided information and lacked transactional capabilities.  Moreover, although central Government remained on course to achieve its 2005 targets the NAO discovered that 66 organisations within central Government lacked a website. 

Clearly these reports identify an on going disconnect between the availability of eGovernment solutions and the take-up of these services within agencies at both the central and local level.  Thus, from Intellect's point of view the success of the eGovernment agenda primarily depends on the development of a positive relationship between Government and the supplier community. 

Through its work with the Office of Government Commerce (OGC) on the Senior IT Forum, Intellect has championed the recognition that decisions about IT could not be separated from the overall success or otherwise of public organisations such as Government departments.  IT-related decisions are business decisions involving senior management.  Failure to accept this truth has a profound and damaging impact on electronic service delivery to citizens.

Through an extensive range of relevant business services including events, seminars, briefings, market awareness programmes, statistical services and sales and business development consultancy, Intellect seeks to help our members address the needs of their respective markets and assist the Government achieve its core objectives.

These are challenging times, the rewards are high but penalties are extreme.  ITEC has the potential to accelerate the transformation of the UK's socio-economic well being.  However for it to be successful all relevant stakeholders must be completely focused on delivering results.