Manitoba’s Best Opportunity
for New Media Job Expansion

TABLE OF CONTENTS
NEW MEDIA WEST CONSORTIA INITIATIVE Proposal *

1. Introduction

• It has held four meetings on innovation centres leading to new studies and new approaches;
• It is in the process of reconstructing industrial associations to better meet the networking needs of a global economy;
• It is working with the two senior levels of government, the NRC and private sector companies to create the mechanisms that will allow SMEs ready access to broadband test facilities;
• It has coordinated the Universities and Colleges in planning a conference to be held at the University of Winnipeg on the manner in which the academic community needs to react to the information economy;
• It is coordinating the agriculture community in the development of a strategic framework to adjust farm management to the opportunities afforded by the new communication technologies;
• It has held two public forums, one of a macro nature given by the President of IBM and the other a technical dissertation given by Microsoft’s specialist on the Internet. Both played to capacity audiences.
• It is in the final stages of completing a multi-facetted web site that will: (a) portray Manitoba’s ability to compete; (b) contain a newsletter uniting the province in terms of what is happening and being planned in the information economy and (b) provide for advertisements and an employment market.

ManCET believes that the solutions we seek in enhancing our competitive abilities in the information economy must be systemic. "One-offs" are wasteful of money, human resources and, most important, time. There are many components such as training, academic and business partnering and the role of the government that need to come together in creating a viable new-media industry. We need to educate local business and government as to the potential of local entrepreneurs and our academic institutions need to develop new relations with business and new courses for skill-set development. We need to create national and global markets for our products and, most important, we need to develop a viable and dynamic private sector to generate the wealth upon which all else depends.

While ManCET is working on all of these fronts, this specific proposal is directed towards creating a new media industry in Manitoba that is comprised of a critical mass of networked SMEs that form the value chains linking skills and ideas with financing and markets. The objective is to forge new market linkages between industry users and New Media developers and suppliers and in so doing to introduce creative solutions to the employment and learning needs of industry.

 

 

2. Situation Analysis

The Coming of the Information Age

Technology and its Potential for Change Continue to Accelerate.

• There is an impending million-fold rise in the cost-effectiveness of computers and their networks. Early in the next decade, the central processing units of 16 Cray YMP supercomputers, now costing collectively some $320m, will be manufacturable for under $100 on a single microchip. Such a silicon sliver will contain approximately one billion transistors, compared with 20m in currently leading-edge devices;
• Meanwhile, the 4k Hz telephone lines to America’s homes and offices will explode into some 25 trillion possible hertz of fibre optics. At the same time, the once supposedly scarce realms of the radio-frequency spectrum will open up to a series of innovation that make communication power (bandwidth) cheap and abundant in the air;
• Microcells using a protocol called Code Division Multiple Access can use the entire radio-frequency spectrum every few miles even hundreds of yards. Billions of hertz of little-used spectrum are available in the microwave domain and can be used for television broadcasts or computer networks;
• At the "superhighway level there is no shortage of capacity, with high bandwidth fiber-optic cables being laid as fast as they are needed. The entire volume of Internet traffic across Canada amounts to less than a single 45-megabit fiber channel---a small percentage of the total telephone-network volume. Where data reaches a choke point for most of us is in the last half-mile of the journey---from the local phone company central office to the home. However, many companies, and particularly the larger high employment ones, are being connected directly to high capacity pipes allowing them to take advantage of low-price, high-volume data transfer well before it reaches the residential consumer;
• The Internet is changing everything. The nature of publishing is undergoing a paradigm shift analogous to the shift from hand-copying to the printing press. Electronic commerce is emerging as a new and extraordinarily cost-effective way to do business. The Web is rapidly becoming the default means to distribute information both within a company (the Intranet) and externally to the world (Internet). But just as importantly, the Web is driving an increasing demand for new types of information and new ways to manage that information;
• Web technology is rapidly changing the way companies manage their business. It is well suited for internal corporate use because it is cheap and easy to use. It is being used as the integrating layer that sits on top of other layers of information saving organizations the need to abandon or struggle to integrate existing legacy databases or different platforms where their information resides. Because there is no need to retrofit, companies have the flexibility to do what they need to do internally as well as to outsource many here-to-fore functions that could only be done internally;
• Home Shopping’s computer store has 20,000 items. Others sell Moroccan rugs and cars. In Silicon Valley, a group of electronics manufacturers that includes Intel, Hewlett-Packard, IBM, and Apple Computer has built CommerceNet, an Internet marketplace for doing business electronically for all types of goods and services. Plans are well entrain to just about eliminate all paper work between participating companies---everything from simple purchase orders and invoices to resumes and product specifications;
• Thousands of new applications, influencing the work environment, are being created to make use of the ever-decreasing cost of computers. For example: it is now technically possible to locate a kiosk in a local car dealership right next to the new cars. The kiosk has a screen and a small keyboard and carries the logo of a large bank. From this one kiosk you can complete all the paperwork needed to get an auto loan or lease approved, and get the funds disbursed to the dealership. You can even arrange insurance coverage and take care of title and registration formalities. If you have not decided on financing alternatives, the kiosk can give you current rates and help you figure out whether a loan or a lease would be most beneficial. In addition, if you are uncomfortable using the kiosk. it is easy to establish a video call to the bank’s customer service agent. In sum, it is now possible to be able to decide on a car model and leave the dealership with all the formalities handled.

MANY OF OUR TRADITIONAL INDUSTRIES WILL DECLINE
 

Broadly speaking, the financial community consists of banks, trust companies, brokerage houses and insurance firms. The core activity of these organizations is the procurement and investment of funds. These can be easily translated into digital bits and moved about within the confines of a relatively small number of options, shapes and forms. In addition to the routine (and hence readily computerized) handling of these funds, many of the functions of these four financial entities are duplicative or interrelated. The resultant conclusion is that there are substantial productivity and competitive gains that can be made by using the power of the new technologies to mechanize the "financial labour" and by combining the respective organizations. Already in the banking community more than 50% of us never go near a teller line, having left off the need to go to a bank because of the combination of electronic payroll deposits and the ATM machine.

In the meantime, other intruders are gathering on the outer reaches of cyberspace using software packages such as QUICKEN to do many of the functions usually performed by the financial consortia at a fraction of the cost.

 

 

The new industries will create many new jobs in novel industries.

• from high cost services, whose premium prices are justified by the value of benefits delivered, to budget price products designed for mass consumption;
• from services to the business community, which can be tailored to the needs of a specific customer, to standardized packages which will sell in high volumes at low prices;
• from services and applications which employ existing infrastructure, peripherals and equipment (telephone and cable TV networks, broadcasting systems, personal computers, CD players and ordinary TV sets) to those which will be carried via new technologies, such as integrated broadband, as these are installed;
• Industries will arise dedicated to providing low-cost individual service that are outcomes of these powerful new technologies for mapping and monitoring activities. The collection of a wide array of information concerning the activities of individuals allows the customization of all sorts of areas of everyday life, down to the individual level. Even now there are observable trends towards the individualization of various aspects of life: individual contracts of employment, targeted benefits, consumer profiling, personalized health care, individualized insurance planning and so on;
• Providing services that cater to human activities (work, leisure, contacts with administrations, banks, etc.) through the intermediary of telecommunication networks will provide new sources of employment. These activities are based on representations of reality (that is, abstract and virtual images of reality), rather than reality itself. There are significant advantages to this evolution such as, for example, (faster delivery of products and services, fewer accidents and, perhaps, lower physical stress).

New Job Opportunities

• Natural resource-based
• Agriculture
• Teleworking
• Distance learning and New Media Learning Materials*
• University and research networks
• Telematic services for SMEs
• Transportation Services
• Health care networks
• Integrated public administration network
• Community information highways*
• Cultural-based*

* Denotes industries in which new media plays a dominant part.
 

4. New Media as A Major Area of Job Creation

• The Information and Telecommunication Association of Canada (ITAC) projects that the Canada’s new media industry will soar from $250 million to $30 billion by the year 2000.
• Veronis, Suhuler & Associates, forecast that consumer spending on multimedia CD-ROM will grow to US$ 4 billion by 1999.
• Frost and Sullivan forecast that the global market for all multimedia applications would grow to US$ 24 billion by 1999.
• An April 1995 study completed for the Human Resources Development, Manitoba Region by Nordicity Group Ltd. indicated: The overall Multimedia/Interactive Media Materials market will grow from $3- $5B to $30-$50B by 1998 while the educational market will grow from $.5B to $1.4B in the same time frame.


The growth potential of the industry as outlined is significant. For a small province like Manitoba doing business in this market will be an enormous challenge. However, If Manitoba is to replace the thousands of jobs we are expected to lose, then we must participate in this new industry.

5. Manitoba’s New Media Industry: Challenge and Opportunities

The Bob Tarry Study
 

In 1996 Western Economic Diversification commissioned Tarry and Associates Ltd. of Manitoba to undertake a study on New Media Development in Manitoba.

The purpose of the study was to:

1. Develop an inventory and profile of active new media organisations

2. Complete a SWOT analysis to identify growth potential.

3. Recommend strategies and roles of stakeholders in implementing the strategies.

• The Manitoba industry is very small, fragmented and fragile.
• A majority of the companies are new, having a technology focus with new media being an adjunct to other mainstream business activities.
• The limited market size and modest project budgets have created an environment where many new media firms in today’s economic climate are struggling to survive.
• There is a general lack of awareness of Manitoba’s new media industry by government and business in the province, which is hindering growth.
• Despite its small size and relative youth, the industry has many strengths. These including talented people with strong technical capabilities, and a significant production cost advantage relative to major centres in Canada and the U.S. Cited is our depth and ability in the artistic, intellectual and cultural content development of new media titled products. The province’s cultural area is seen as an important building block and foundation from which the industry can grow.

• In Montreal they have the Center of Expertise in Applications of Multimedia (CESAM),
• In the Ottawa/Hull Region there is New Media North,
• In Edmonton the Edmonton New Media Initiative, and
• In Toronto, the Interactive Multimedia Arts and Technologies Association (IMAT) and SMART Toronto.
• In Newfoundland, Operation OnLine.

• Manitoba has strong industry sectors in health services and care, printing, publishing and graphical design, artistic and cultural content, film/sound recording and agriculture. All these sectors match with Canada’s international trade and information technology development focus.
• Learnware, courseware development and training programs are extremely compatible with strong publishing, printing, artistic / media critical mass. Having six strong academic institutions and the recent influx and increase in broadband development capabilities in the province provides a powerful tool for testing and perfecting technology product applications. Training and Learning needs around the world are consistent with those in Manitoba.
• Seven of the ten largest employers in the province are governments therefore they can offer strong support to improving local government purchasing, Consortia and joint venture development. They can also be helpful in areas such as: tax policy, R& D incentives, funding co-ordination and training as well as in fostering a more direct role in developing/ motivating leadership and providing a vision for the industry.
• The new media industry is new, fragmented and fragile domestically and internationally. Therefore Manitoba, though behind other jurisdictions in some areas, can still be a player if planning is strategic and supportive by the broader-based community.
• Development of a technology competent work force is becoming increasingly more difficult as global competition for highly skilled people grows. It can be assumed then that having proper lifestyle environments and economic supports in our cities and towns will be a key factor in keeping and attracting skilled people.
• Discussions with Industry Canada in the other Western provinces indicate that problems encountered in Manitoba are not unique. Given the power of the technologies it becomes possible to form consortia across Western Canada that would compensate for some of our individual weaknesses. Such an arrangement would allow the province to develop the necessary critical mass and range of specialised skills to compete in a broad section of new media demand.

6. New Media West: A Proposal

Proposal’s Background

The Proposal

General:

• Act as a coordinator for associations, agencies, individuals, and companies working to create new media; **
• Joint venture, alliance and partnerships, business networking in Manitoba, across Canada and internationally **
• Facilitate and accelerate the enabling effects of IT, through formation of strategic alliances, to enhance the competitive positioning of all economic and geographic sectors in Manitoba; **
• Become a major hub for the rural area Community Enterprise Development Centres and assist them with entrepreneurial training, skill development, business development and incubation opportunities; **
• Serve as a central "clearing house" on private and public IT initiatives; **
• Facilitate and support the initiatives of other agencies (e.g. Workforce 2000, aboriginal community, Municipalities) to attract business and/or develop new opportunities; **
• Enlarge the mandates of the Winnipeg and Manitoba Chambers of Commerce to recognize the importance of new media activity.
• Identify and pursue initiatives designed to tilt the playing field in favour of Manitoba; **
• Further the understanding, promotion and growth of new media to improve the economic performance of all sectors in Manitoba;
• Hold annual conferences (national, provincial, local) directed towards furthering an understanding of successful change processes required to adapt to the new and use the new media; **
• Behave as a business opportunities broker, and a source of timely strategic information and a single point of contact for matters pertaining to new media; **
• Improve market awareness as to what is available, bring together those who supply and buy new media products and encourage co-operative solutions to information issues; **
• Create new ways for organizations to work together in order to tackle challenges of the technological revolution; **
• Promote Manitoba for investment and ensure the Province is adequately profiled as one of Canada’s leading knowledge-based communities known globally for education, training and lifelong learning; **
• Educate and provide relevant information to journalists with a view to enlightened and positive media on the power of new media;
• Develop and implement a long-term public advocacy program to promote the advantages and opportunities offered by new media for all Manitobans,. Special attention to be given the aboriginal community. **

• Co-ordinate an Industry Bidding Board. **
• Establish an Export & trade consultation and advisory program. **
• Technology and industry content business development and product matching. This project to include Manitoba Association for Native Languages, Alis program and other cross-cultural community groups. **
• Integration of cultural and creative arts with business and commercial applications. **
• Network-based industry application development / test network access. ( see attachment) **
• Satellite conferencing **
• Virtual film festival for Western Canada. **
• Facilitate the introduction and integration of new media into all aspects of business, government, education and healthcare in Manitoba; **
• Make Manitoba New Media sectors the benchmark within selected niches in Canada;
• Target conditions which prevent businesses from adjusting to the power of new media or which serve as an impediment to the creation, relocation, or expansion of business in Manitoba; **
• Deliver a full range of services that will meet the needs of affiliated associations and their members in all parts of Manitoba, both rural and urban;
• Examine the possibility of having an New Media Centre which would be a showcase of Manitoba products providing hands-on insight and experience; **
• Hold educational and informative conferences, seminars and luncheons; **
• Establish a directory of all relevant New Media companies in the Province; **
• Undertake project management where several companies or sectors are involved in a unique contract; **
• Promote the evolution of call centres into technology/customer care/employee support centres, by bringing together the existing base of call centres with local multimedia and courseware developers;
• Launch collaborative ventures between federal, provincial, departments and industry, universities, labour, and business organizations; **
• Build information networks by: transferring knowledge and making data and analysis available to potential users; and providing relevant, timely information services through the Information Highway to encourage innovation, particularly at the community level; **
• Extend science and technology linkages internationally by: promoting international collaboration for Manitoba firms; and collecting and disseminating intelligence on international science and technology.

• Encourage leading edge IT research, education and training in Manitoba, to make and keep our sectors competitive; **
• Act as a screening body to assess and make recommendations to the Winnipeg Development Agreement Board on applications for technology funding. **
• Develop an Internet radio station.. Audio and video transmission development featuring Manitoba talent
• Research and development in 3D and virtual reality products using TRLabs and MRnet.
• New media showcases, seminars, workshops, and communication plan. **
• Initiate the development of innovation parks allowing companies to focus on applied research and commercialization of new media products and services;
• In conjunction with TRLabs establish Technology Transfer forums; **
• Working closely with MRnet to increase access to new information highway tools such as: CANARIE test network and ATM technology; **
• Increase interaction among people from educational institutions, government and industry to enhance the effectiveness of R&D in the region;
• Increase the resources available for R&D within the region; **

• Work to identify critical shortages of skill sets affecting companies and coordinate with colleges, universities and private training facilities to overcome; **
• Co-ordinate with industry to encourage universities to update their material as it relates to new media; **
• Collaborate with the Universities and colleges to establish innovation parks;
• Establish a joint industry-university graduate thesis program between universities/colleges and companies who will hire graduates;
• Determine if there is a demand to establish a program to provide new media training for teachers. **

• Represent the "industry" and its views to government through board membership and presentations; **
• Work to have Manitoba designated as a pilot province for National New Media initiatives; **
• Encourage departments/agencies to provide local vendors with the opportunity to contribute significantly to all model user initiatives, while respecting existing trade agreements; **
• Proactively intervene to support the private sector in ensuring that the regulatory environment is conducive. **
• Co-ordinate the New media production and distribution investment funds. ( see attachment) **
• Assist with the Manitoba business and government procurement management program.**

Advantages of the New Media Initiative

1. Manitoba is small in numbers and potentially lacks the critical mass for any particular group to fund and coordinate an effective enabling organization. Only by capturing members from all groups in the new media sector, will we be able to establish a viable organization. Only a multi-group umbrella will be able to effectively identify common needs, and implement solutions that maximize business opportunities and profits for individual companies, sectors, or even for the Province as a whole.
1. Manitoba lacks a dominant New Media player, such as Soft Image in Montreal, or a Bell Northern Research in Ontario - companies that tend to attract other smaller companies as well as highly skilled manpower and entrepreneurs. Without a single powerful player around which others might pivot, only the collectivity can perform the focalizing role in the form of a consortium.
1. Companies operating in specific segments of the new media industry have only cursory knowledge of their brother and sister companies in Manitoba. If we have detailed knowledge of each other, we can pool our resources and capabilities to optimize our local and export opportunities. This is particularly important in bidding on the larger local projects. The opportunity also exists to work together to develop products, services, and expertise that can make local industry more globally competitive as well as precipitate export opportunities. Collaborative opportunities exist in areas such as: lifetime learning, courseware development for aerospace and financial training, advertising and public relations to name a few.
2. By extending our reach into other Western Provinces we increase the pool of talent and the networking possibilities for our SMEs.

7. Finances
 

The overall concept of the finance plan is that the New Media Initiative requires 3 years to get on its feet. After his the projects that were started with the original matching funds will be sufficient to support the Executive Director in his/her on going activities.

The finance plan is built on the following principles:

1. ManCET Contribution

• The Executive Director of the New Media organization will reside on ManCET premises and will have his/her office space partially subsidised.
• The President of ManCET will work closely with the Executive Director to network him/her into the extensive organization that comprises ManCET.
• ManCET will provide a half-body to assist the New Media Consortia in organizing its activities.
• ManCET will also link the New Media organization into its server, T1 line and video conferencing facilities.

• Special events such as conferences and seminars will bring in $5 to $20K over the four-year period.
• Projects such as co-ordinating an internet radio station or developing an interactive data-base with the aboriginal community will bring in $10 to $50K.
• Membership fees of $250 per @ 50, 75, 100 and 125 members will bring in $12.5 to $30K over the four year period.
• In-kind, such as access to a members high tech equipment use will bring in $10 to $25K.

• Salary and Benefits to be covered.
• Office space to be partially paid for.
• Computer and software to be procured, with maintenance and upgrades at $3K per year.
• An operating budget to permit the start-up of a wide range of activities within the membership to be provided. These might range from bringing in a guest speaker, to buying equipment to be shared by the membership , sponsoring a Manitoba Trade booth at out of town conferences, etc.

• Special Events

seminars, training sessions, new media showcases, virtual film festival
• Projects

internet catalogue, procurement bidding board, internet radio, broadband multimedia testing
• Operating Budget

The budget will act as a fund to lever revenue sharing from the private sector. The intent is to have the fund act as loan mechanism…. Industry Micro Loans. If an investment fund is developed then there would be no need for the operating budget.

8. Conclusions