Government encourages use of IT to enhance productivity
16 - 10 - 2003

The Government is encouraging the use of information technology to enhance productivity by establishing secure IT infrastructure and developing more electronic applications, the Director of Information Technology Services, Mr Alan Wong Chi-kong, said today (October 16).

Speaking to business executives at the CEOs' Congress this afternoon, Mr Wong said the Government was committed to using IT to support the development of industry and commerce.

Following the launch of the Digital 21 Strategy in 1998 and the encouraging progress in building IT infrastructure, business and public confidence in e-transactions has increased.

To inspire the adoption of IT by local businesses, the Government has invested significantly in making more application systems available.

"Among them, the Electronic Tendering System launched in April 2000 has brought efficiency and convenience to both the Government and our suppliers," Mr Wong said. "We aim to conduct 83% of government tenders electronically by the end of this year."

He also introduced the Digital Trade and Transportation Network. The network is in the pipeline and will provide an open and neutral electronic platform for data exchanges among logistics players in the supply chain.

Turning to financial support for the industry, he said the Government had launched the SME Funding Schemes to help local firms rise to new challenges and seize the opportunities created by the signing of the Closer Economic Partnership Arrangement. Companies can apply for funds to finance their IT-related projects.

A subsidy has also been given to the Hong Kong Article Numbering Association to launch the SME Ambassador Program, which aims to help local enterprises build fundamental e-business facilities.

Other examples include granting funds to optical and jewellery manufacturers to use the Internet and advanced graphics processing technology to promote their products overseas.

Through various departments and supporting organisations, the Government also provides a range of support services to enable local enterprises to utilise innovation and technology.

According to government statistics in 2002, about 40% of manufacturers used personal computers, and 31% of them had Internet connections. Mr Wong noted that there was still room for the industry to employ IT to increase competitiveness.

The use of IT not only improves product development and design, production technology and market promotion, but also shortens the product development cycle and reduces "time to market".

With the advent of IT, companies can choose from a wide range of computer solutions, like Enterprise Resources Planning and Supply Chain Management, to best suit their business needs.

These solutions will enable them to conduct more effectively the bill of materials, job scheduling, cost and inventory control, capacity planning and delivery tracking.

Companies can use computer systems to source business partners in the supply chain. Advances in communication technologies help to strengthen internal and external communication, as well as streamline the production cycle.

"To survive in the competitive market, companies must draw on IT to improve their productivity, management and service quality," Mr Wong concluded.

- END -