Capitol View

By Richard Borreca

Wednesday, January 6, 1999


Hawaii must join
the digital revolution

JUST in case you haven't figured out how much everything has changed, Business Week's latest edition, featuring its picks for the 25 top executives of the year, shows the way.

Eleven of the 25 are in information technology. Add the three in communications and the you have the majority of the top executives in businesses that didn't even exist a decade ago.

You won't find industrialists, developers, steel magnates or shipping czars.

The closest you come to a traditional executive is David Glass, Wal-Mart CEO, who is determined to make the discount centers a world brand. Sales this year are expected to rise to $137 billion.

The new corporate leaders are riding the crest of the digital wave.

They are the ones who are inventing the technology that is used to change business, education and ultimately society.

For Hawaii, there really isn't much of a choice of how to respond. The nation's corporate leaders aren't saying: "Dear Hawaii, we are having a digital revolution and we would like you to join in."

They are just doing it. Those who aren't will slip.

Last month, Connecticut picked Electronic Data Systems Corp. for a $1 billion computer privatization contract. The aim is to allow computers from many different state agencies to talk to each other, generally improve the way Connecticut does business and make life easier for its residents.

The privatization will affect some 600 state employees from about 65 agencies, boards and commissions. EDS expects to offer jobs to about 78 percent of these state employees.

This is an example of government starting to use the benefits of the information technology revolution to streamline government and cut costs, much like businesses have been doing for the last five years. Connecticut expects to save $400 million at the same time it expands and improves services.

Boston Globe columnist John Ellis pointed out recently how 1999 will see the rise of the "dot-com" companies.

Charles Schwab Corp., the discount brokerage firm, is now the second-highest-valued brokerage firm in the United States with a market capitalization of $25.5 billion.

The potential for these online firms, from Schwab to America Online and Amazon.com, is unstoppable. They offer low-price, frictionless shopping, low overhead and clear value.

"Companies that don't understand the dynamics of the new demographics and the new technology will find it ever more difficult to compete," Ellis warned.

The Progress and Freedom Foundation recently issued its authoritative report on how states are coping with and using the digital revolution.

Hawaii came in 41st -- a big jump from 1997, when it was listed as 50th out of 50.

THIS year's state Senate is aware of the report, understands its meaning and is disturbed. Sen. David Ige says reading it made him ill. He and others, such as Sen. Carol Fukunaga, are trying to get Hawaii's government on board, but there's a lot more that needs to happen.

Gov. Ben Cayetano is offering another high-technology park, this one in Kakaako, with reduced fees and taxes, but it is just a small effort given the dramatic changes happening around the globe.

It is all coming together for explosive growth, but Hawaii needs more inside government who understand how little time is left.



Richard Borreca reports on Hawaii's politics every Wednesday.
He can be reached by e-mail at rborreca@pixi.com




Text Site Directory:
[News] [Business] [Features] [Sports] [Editorial] [Do It Electric!]
[Classified Ads] [Search] [Subscribe] [Info] [Letter to Editor]
[Stylebook] [Feedback]



© 1999 Honolulu Star-Bulletin
https://archives.starbulletin.com