Tag: Australia

  • Cheap solar strands coal

    Cheap solar strands coal

    Last week Chilean power distributors signed a contract for solar generated power at the lowest rate ever, half the price of energy from coal powered generators.

    As  the cost of solar panels continues to fall, the need for coal and gas powered facilities continues to dwindle but given solar panels don’t need to be located in a central location, the nature of distribution networks is changing.

    With power generation becoming more localised, communities don’t need expensive connections to power grids. In disadvantaged regions and developing nations, villages that would have to wait decades to be connected, if at all, now have a pathway to dramatically improving their standards of living.

    Distribution companies that exploited their monopoly positions in providing power across wide networks are now having to reconsider the value of their expensive assets and lucrative business models.

    Those countries and companies who thought high coal prices would bolster their standard of living, such as Australia, must be rueing their focus on fossil fuels. The massive investments made by mining companies and compliant governments are now increasingly looking like stranded assets.

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  • Startups become a Sydney mayoral issue

    Startups become a Sydney mayoral issue

    There’s a mayoral election pending in Sydney and the talk of the city becoming a startup hub is becoming one of the issues.

    Over the next few days I’m hoping to interview each of the four major candidates on their policies regarding how they see Sydney competing against the likes of Singapore and Shanghai, let alone San Francisco or London.

    In 2009, I was working with the New South Wales state government on their Digital Sydney project which looked at how the state capital could become a global centre, one of the things we found was that the city had many of the attributes successful creative centres had – diversity, tolerance and access to talent.

    That project died in the face of bureaucratic ineptitude but the idea still kicks around with last week’s launch of the NSW Government’s Jobs For The Future report which, despite its opening thirty pages of buzzwords and waffle, contains some serious analysis of the state’s reliance on inward facing service industry jobs.

    Refreshingly, the NSW Government strategy looks beyond the current mania around tech startups based on the Silicon Valley venture capital model – something the Federal government’s Innovation Statement failed to do – and discusses how to encourage growth and investment in other emergent sectors both inside and outside the inner city startup communities.

    While Sydney can be an attractive place to live for the digital elite, it falls down in a number of areas with property being among the most expensive in the world, telecommunications being costly and unreliable coupled with a complacent corporate sector and a stingy investment community.

    Making the city more attractive is going to take a number of initiatives that including easing the cost of doing business, improving links between academia and industry along with tapping into Sydney’s diverse immigrant populations.

    Some of these factors are within the City of Sydney’s purview but most of them are state or Federal matters. By definition this limits what local politicians can do.

    Which doesn’t mean they shouldn’t try to do them and it’s good to see these topics have become issues in the local elections. For Sydney though, one suspects it’s going to business as usual until The Lucky Country’s luck runs out.

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  • The moment Australia’s innovation dreams died

    The moment Australia’s innovation dreams died

    It started so well but has ended in a whimper. I’ve just filed a story for Diginomica on how Australian’s Innovation Agenda died, strangled by the nation’s complacency.

    While writing it, I found the moment Prime Minister Malcolm Turnbull’s credibility evaporated. At a media stunt in suburban Sydney, Turnbull and his treasurer Scott Morrison visited the Mignacca family who own two speculative properties and had just bought another for their one year old daughter.

    That stunt illustrated everything that is wrong about modern Australia’s investment and taxation policies. The Mignacca’s could be improving their skills and education, they could be setting up a business to provide the jobs and growth that was the cornerstone of Turnbull’s re-election campaign or they could be developing innovative new products for their industries.

    Instead they are speculating on property – and borrowing heavily to do it.

    The Mignacca’s are doing nothing wrong and are responding rationally to the incentives in Australia’s tax system as well as doing exactly what their peer and parents did, speculating on property to secure their retirement.

    Not that this strategy is without risk, like 85% of the Australian workforce both of the Mignacca’s jobs are in domestically facing service industries and in the face of an economic downturn the young couple could find their properties falling in price at the very time they can’t afford to keep them.

    In ditching the Innovation Statement and adopting the comfortable rhetoric of his predecessors, Turnbull betrayed the Mignaccas, Australia’s economy and his own stated view about the nation’s property addiction.

    Moreover, he killed any credibility he had in being able to recast Australia’s economic future.

    One suspects history won’t be kind on Malcolm Turnbull and the day he travelled to the Mignacca’s home will go down as the moment he lost the future.

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  • A tale of managerial hubris

    A tale of managerial hubris

    Twenty-four hours after the 2016 Census website collapsed, the Australian Bureau of Statistics’ reputation is in tatters as the organisation blames hackers, denial of service attacks and failed routers for the debacle.

    While there’s many lessons to be learned from this tale, not least the importance of getting your social media team on board, the key takeaway from this embarrassing saga is to show some public humility and not dismiss informed critics.

    Technology was not the problem at the ABS, an arrogant management is what caused the Census collapse.

    Given the poor accountability of Australian management it’s unlikely anyone’s career is going to suffer as a consequence of this debacle but it’s a further dent to the reputations of both IBM and the ABS. Quite frankly they deserve it, if only for their failure to listen to the community.

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  • How Australia might miss the smartcities movement

    How Australia might miss the smartcities movement

    On Monday I attended the Australian Israel Chamber of Commerce KPMG Internet of Things (IoT) & Smart Cities Briefing in Sydney’s Darling Harbour. It was an event that left me worrying about how the nation’s governments are dealing with the connected society.

    The event was held under the Chatham House Rule so I’m unable to attribute quotes or identify the views of individual speakers however the conversation was mainly around the difficulties of getting Australia’s three levels of governments working together and their reluctance to share data.

    Probably the most worrying comment was how Australian public servants aren’t empowered to make decision that would take advantage of smart cities technologies.

    When politics eats everything

    If anything this view illustrates a deeper problem in Australia where public policy and decision making is subsumed by politics. Exacerbating this is the insistence of opportunistic ministers and their chronically unqualified party advisers to micromanage decisions that should be made by qualified professionals.

    A fear of delegating decision making quickly morphs into tendency to avoid accountability with decisions being made behind closed doors and contracts hidden from public view by the ‘Commercial In Confidence’ fiction that put contractors’ privileges over the public good.

    That reluctance to share information also feeds into implementing smartcity technologies. With data being jealously guarded by government agencies, city councils and often corrupt ministerial offices, the currency of the smartcity – data – is locked away rather than used for the public good.

    Accidental releases of data

    One of the participants pointed out how in Australia government data is often released by accident and the siloing of data between government agencies and private contractors makes access difficult.

    The real concern though was at during the question and answer session, in a response to a question from the writer asking if Australia’s business and government leaders are oblivious to the global changes, one of the panellists stated “boards are now convinced digital has a seat at the table.” That is hardly assuring.

    Probably the biggest concern though for this writer was after the lunch. One of the other attendees, the CEO of  a major supplier to Australian councils, mentioned how the equipment he supplies was ‘pretty dumb’ and he was closing down the overseas operations of his business as they were losing money.

    Inward business cultures

    That inward looking attitude of catering to a domestic market that’s oblivious to global shifts seems to be almost a parody of the management books that talk about Kodak’s demise earlier this century or the fate of buggy whip manufacturers a hundred years before. Yet that is the mindset of many Australian businesses.

    Exacerbating industry’s insular mindset, Australia’s planners seem to have a fantasy that the nation’s cities are like Barcelona rather than Chicago. The truth is Australia’s car dependent cities have more in common with their North American counterparts than European centres, something planners are reluctant to admit.

    Being car dependent doesn’t preclude effectively applying smartcity technologies, in fact there might be more benefits to sprawling communities as vehicles becomes connected and driverless automobiles start appearing. However applying what works in Amsterdam to Sydney, a city that is more like Los Angeles, is probably doomed to failure.

    “A smart city needs smart people to succeed” is a mantra I’ve heard a number of times. The question right now is whether Australia has enough smart people in positions of power to execute on the opportunities in the 21st Century. The roll out of smartcities may prove to be an early test.

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