Adopting information technology can enhance business productivity, the Director of Information Technology Services says. That's why the Government is establishing secure IT infrastructure and developing more electronic applications.

Speaking to business executives at the CEOs' Congress this afternoon, Alan 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 Hong Kong's progress in building IT infrastructure, business and public confidence in conducting online transactions has increased.

More appplication systems come onstream

To inspire local businesses to adopt IT, 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, adding that the aim is to conduct 83% of government tenders electronically by the end of this year.

He also described the Digital Trade & Transportation Network that will provide an open and neutral electronic platform for exchanges among logistics players in the supply chain.

Small businesses have IT funding options

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.

The Hong Kong Article Numbering Association has received a subsidy 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, Mr Wong said.

Services aid in adopting IT

Through several departments and support organisations, the Government also provides services to enable local enterprises to take advantage of innovation and technology.

In 2002 about 40% of manufacturers used personal computers and 31% of them had Internet connections, Mr Wong said, noting that there was still room for the industry to employ IT to boost 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".

Solutions aim to make business more effective

Today companies can choose from a computer solutions such as enterprise resources planning and supply chain management, to best suit their business needs. Such solutions  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.