HomeMy WebLinkAboutBroadband EconomyThe Broadband Economy
The rise of the Intelligent Community is a response to one of the greatest economic
transformations in history. "Globalization" is the commonly accepted term for it. At the
Intelligent Community Forum, we don't feel that the word does justice to the scop e of this
transformation, and to the way it is reshaping the economic lives of people around the
planet. Nor does it explain why this transformation is taking place. Instead, we call it the
Broadband Economy – an economy in which for all intents and purp oses the hard - working
people of Bangalore and Beijing live right next door to the hard - working people of Boston,
Brussels and Buenos Aires.
Origin and Impact
The Broadband Economy is the product of the build - out of
low - cost, high - speed communications and information
technology on both the global and local levels. It began in
the 1970s, when the carriers began linking the world's
economic centers with fiber optic networks. These made
possible collaboration and cooperation across time zones and
cultures t hat opened markets, boosted productivity, created
employment and improved living standards.
A simple set of numbers captures the power of this
transformation. During the hundred years from 1870 to
1970, the number of people living on more than US$1 per
day, adjusted for inflation, grew by 157 million. At the same
time, however, the number living on less than 1 dollar a day also grew by 45 million. That's
not bad: a net gain of over 100 million people who moved out of the most abject poverty.
But compa re that to the decade from 1990 to 2000. The number of people living on more
than 1 dollar a day grew by 890 million , while the number living on less shrank by 139
million . What made the difference? The explosive growth of global networks that reduced
c osts, boosted trade volumes and made us all more productive.
Global and Local Impact
Using the broadband infrastructure, companies began to look
for opportunities to locate their facilities where they could
gain the greatest advantage in terms of costs, skills and
access to markets. The deployment of global broadband also
made capital investment highly mobile. Trillions of US
dollars move around the globe weekly in pursuit of a
competitive return, and when trouble strikes a nation's
economy, that mobil e capital can also flee at devastating
speed.
For communities, local economic success has come to
depend on the global economy in ways never before imagined. But while global business
may be mobile, communities are not. Communities everywhere have the same goal: to be
a place where people can raise their children and give those young people enough economic
opportunity to allow them to stay and raise children of their own. In the Broadband
Economy, that task is more challenging than ever.
The Broadban d Paradox
Geographic location and natural resources were once the key determiners of a community's
economic potential. In one person's lifetime, they changed seldom if at all. But in the
Broadband Economy, it is increasingly the skills of the labor force , and the ability of
business and government to adapt and innovate, that power job creation. And these are
assets that must be continually replenished.
Why has this change occurred? As economic centers are
connected, it becomes possible to manage distan t facilities
as though they were across the street. That means, in the
Broadband Economy that every worker is exposed to wage
and skill competition from every other worker in similar
industries around the world. This has shifted demand for
low - skilled la bor – the kind used in extracting resources from
the Earth and basic manufacturing – to low - cost countries in
the developing world. When you visit those booming
countries, however, the business press is full of worry about
lack of skills and innovation. Even nations in the early stages of industrial growth are
feeling the same competitive pressures that have become acute in industrialized ones.
Employment insecurity has risen and will continue to increase worldwide as businesses face
global competition and go global in search of talent. The only jobs that are immune to the
pressures of the Broadband Economy – local retailing and services from plumbing and
heating to real estate – do not bring new money into a community; they merely move it
around from p ocket to pocket within the community. A sustainable community must have
inputs and outputs, which means external markets for the skills, services and products it
provides.
About Intelligent Communities
Intelligent Communities are those which have – wh ether through crisis or foresight – come to
understand the enormous challenges of the Broadband Economy, and have taken conscious steps to
create an economy capable of prospering in it. They are not necessarily big cities or famous technology
hubs. They are located in developing nations as well as industrialized ones, suburbs as well as cities, the
hinterland as well as the coast.
The good news is that, while the Broadband Economy presents an epic challenge to
communities, it also hands them a powerful ne w competitive tool. Beginning in the 1990s,
carriers deployed the local networks that most of us think of as "broadband" – DSL, cable,
satellite and wireless – within neighborhoods, towns and cities. At the same time, the costs
of computer software and h ardware – especially data storage – plummeted in obedience to
Gordon Moore's famous law that the storage capacity of microchips doubles every 18
months. Through local broadband, individuals, small businesses, institutions and local
governments have gained access to worldwide information resources and a broad range of
tools to connect both globally and locally.
Global Reach, Local Gain
Today, broadband offers every community the opportunity to move from the periphery to
the center in economic terms. It c reates new kinds of companies like Yahoo and Google,
even whole new industries. It enables small companies to be global exporters – including
the export of skills and knowledge which were never before transportable across time zones
or national borders.
It can ensure that schools in remote regions and inner cities have access to the latest
information tools and reference sources. It can link rural healthcare providers to leading
medical centers and local law enforcement to national information grids. I ndividuals and
businesses can go global in search of low - cost, quality vendors, and Web - based tools can
increase community involvement.
By boosting the economic and social well - being of communities, broadband can reduce the
incentives for their young peo ple to move away in search of opportunity and a better quality
of life. Paradoxically, it can play a key role in giving communities a sustainable future in our
ever - more - connected world.
Adapting to the Challenge
But broadband alone, technology alone, ar e not enough to create a prosperous and inclusive
economy, which is the foundation for everything else that makes a community healthy and
vital. Not in an environment in which broadband has put your community into direct
competition with every similar com munity on earth, as well as opening up new opportunities
for trade and collaboration. Intelligent Communities work long and hard to adapt to the
challenges of the Broadband Economy. Some are recovering from economic crisis and have
more plans and hopes t han tangible results to show. Others are well on the way toward
ambitious goals and have a record of achievement to display. Some far - sighted
communities never let crisis overtake them in the first place, but made the right choices and
investments in tim e to benefit from the emergence of the Broadband Economy.
Community Accelerator
Accelerate Your Community Into the Broadband Economy
The Community Accelerator program provides your community with a
set of development tools to improve competitiveness, deepen social
inclusion and enhance your ability to adapt in today's fast - moving
Broadband Economy. Based on years of research by the Forum, the
Community Accelerator:
Educates your community on the factors that will determine its
economic future
Helps e ngage and energize the key stakeholders in the
community development process
Provides metric analysis that identifies where you stand today and offer specific
guidance on where to focus efforts in the future
The Community Accelerator is not a consulting se rvice. It does not assess feasibility,
provide community organizing or develop requests for proposal. Instead, it empowers your
community to seize control of its destiny. It delivers education and analysis that you can
use to plan and execute your futur e as an Intelligent Community, and a global context for
action based on the actual practices of communities around the globe.
Accelerator Services
The Community Accelerator offers three different services to promote community
development:
Community Traini ng
A focused day - long workshop for the governmental, institutional and business leaders of
your community to prepare them for development of an Intelligent Community. The
workshop mixes a half - day tutorial and case studies with interactive discussion and initial
planning sessions. It is preceded by a social ice - breaker on the previous evening that
brings the participants into a comfortable relationship before the focused work of the
following day. Interviews with local press help leverage the value with the public. The goal
of the Training is to educate and solidify the team that will carry forward the changes your
community needs to make.
Community Mentoring
A customizable program of onsite meetings in your community led by an ICF executive,
which mi x presentations by ICF on community development with in - depth discussion of the
challenges and opportunities facing different sectors of your community. ICF prepares each
Mentoring engagement to focus on your specific issues, provides presentations and
tu torials, leads discussion sessions with leaders and constituents, participates in ice -
breaking social events to build community commitment and provides interviews with local
media. The goal of Mentoring is to introduce the Intelligent Community movement t o your
community, then build momentum for change and consensus about the challenges to
address. The Mentoring engagement may take the form of a single multi - day site visit or
repeat visits over 6 to 24 months.
Community Metrics
A qualitative and quantit ative analysis of your community’s current performance compared
with an average of ICF’s Top Seven Intelligent Communities of the past four years. Your
staff completes a detailed questionnaire employing the same methods used to select ICF’s
Intelligent Co mmunity of the Year. ICF researchers analyze the data and provide a written
report containing a quantitative ranking of your community on 12 factors against a
composite of Intelligent Communities around the world, and a qualitative interpretation of
the r esults that lets you see where to focus your efforts in the future.
Why Communities Choose an Accelerator Program
Local empowerment. The Community Accelerator provides facts, analysis and
best practices, not a consultant’s “cookie cutter” formula for development.
Creating a strategy, executing it and managing the challenges of change within
your local culture remain your responsibility and within your control.
Global perspective. The Community Accelerator is based on domestic and
international data. With your community in economic competition with
companies and workers around the globe, the ICF analysis measures your
performance against an international benchmark.
Proven methodology. ICF’s best practices and metric analysis are based on
methodol ogy developed over the past decade in the evaluation of Intelligent
Communities and selection of the Intelligent Community of the Year.
Convenience and fast turnaround. The Community Accelerator requires
weeks or months - not years - to develop and put i nto action for your community.
Pricing
For pricing and additional information, contact ICF by email or by telephone at +1 646 - 291 -
6166 x102.
Health in the Intelligent Community June 1 - 3, 2011 - New York City
♦
Building the Broadband Economy is an international summit attracting attendees from North
America, Latin America, Europe, Asia and Africa. Produced in partnership with the
Polytechni c Institute of New York University , it is a unique opportunity to learn from the
world’s most dynamic communities how to use information and communications technology
to build prosperous, inclusive and sustainable communities.
Who Will You Meet at BBE 2011?
The annual BBE summit attracts mayors, state and provincial leaders, city managers, the
CIOs of cities, counties and states from around the world, as well as their ICT partners in
the private sector. Recent summits have been honored by the presence of these public and
private - sector leaders.
What Will You Learn at BBE 2011?
BBE2011 will feature keynote speeches, interactive discussions and community case studies
through three intensive days. Social, networking and award events create an intimate
atmosphere where relationships are forged and new ideas arise.
Health in the Intelligent Community
In 2011, our theme is " Health in the Intelligent Community ." With health services
consuming an ever - larger percentage of public and private spending in m uch of the world,
nations are challenged to improve the delivery and management of healthcare using
information and communications technology. At the community level, ICT investment in
healthcare not only can reduce costs, it can play an important role in enhancing the health
of residents and create fast - growth business clusters and strong employment opportunities
for both low and high - skilled citizens. You will hear from Smart21 and Top Seven Intelligent
Communities that are innovating in both the public and private sectors in this critial area,
and how they have translated ideas into achievement. Click here to download a copy of our
white paper, " Healt h in the Intelligent Community ."