The downturn and lags in usage take a heavy toll on countries in the Economist Intelligence Unit's 2009 e-readiness rankings

Seoul (Korea Newswire) June 17, 2009 03:05 PM -- A sharp deterioration in business environments owing to the economic crisis has taken a toll on countries' e-readiness their ability to harness ICT for social and economic development. The Economist Intelligence Unit maintains that a stable and transparent business environment is essential to fostering development and utilisation of digital technologies and services. Over the past year, however, the crisis has constricted availability of credit, led governments to entertain protectionist measures including in the technology sector and dampened foreign investment and support for private enterprise. All 70 countries in the e-readiness rankings have seen their business environment scores drop in 2009 an important reason why all but nine countries registered lower overall e-readiness scores this year compared with 2008.

Scores also fell, however, because this year’s rankings now cover ICT usage in addition to availability. The availability of technology is not enough to deliver the full socioeconomic benefit to countries that ICT can provide. For this, digital technologies must be used, and used effectively. Tracking actual ICT use is a tricky endeavour, but we have introduced several new indicators this year which compare countries on the extent to which their businesses and individuals use online channels. Since technology usage tends to lag availability, countries’ e-readiness scores have declined further.

These and other factors have also led to changes in the rankings table. Denmark has reclaimed global e-readiness leadership, a position it relinquished to the US last year. Other north European countries such as Sweden, the Netherlands and Norway having, among other attributes, high levels of ICT usage have reaffirmed their places among the top ten e-readiness countries or, in the case of Norway, advanced into this tier. Meanwhile, the US and UK, whose business environments have been hit particularly hard in the past year, have fallen a few rungs.

“The results of this year's research underscore the fact that digital development does not take place in a vacuum,” says Robin Bew, Editorial Director of the Economist Intelligence Unit. “Tough economic conditions can constrain the drivers of technology adoption and use. Policymakers can help maintain the momentum of digital advancement, but above all they should refrain from introducing protectionist measures, which will only make matters worse.”

Since 2000, the Economist Intelligence Unit has published an annual e-readiness ranking of the world’s largest economies, using a model developed in co-operation with the IBM Institute for Business Value. A country’s “e-readiness” is a measure of its e-business environment, a collection of factors that indicate how amenable a market is to Internet-based opportunities. Increasingly, it is also about how individuals and businesses consume digital goods and services.

Other major findings from this year's study are highlighted below:

• Emerging markets continue to rack up big advances in connectivity, or the extent to which people are connected to communications networks. Progress in the “connectivity and technology infrastructure” category of indicators is particularly notable in the Middle East and Africa, Eastern Europe and Latin America. But there remains a large gap between these and mature markets, which may have a negative knock-on effect on the usage scores of less well-connected countries.
  
  
• Government ICT strategy in emerging markets is bearing fruit. Most nations are making progress in implementing e-government programmes; a few developing countries keep pace and even outperform the e-readiness leaders in some areas. The governments of Mexico, Jordan and Vietnam, for example, have made substantial progress in recent years in making digital channels available to citizens for information provision and consultation (“e-participation”).
  
  
• ICT development may benefit from the recession. Many countries' economic stimulus packages designed to hasten recovery notably in rich-world countries hardest hit by recession, such as the US have big ICT infrastructure projects wrapped up in them. But generally, all new stimulus-driven infrastructure spending, including on railways, power plants and other projects incorporates a lot of ICT.
  
  
• Policy concerns exist on the near and longer horizons. Protectionism risks are growing in the global economy, and measures are afoot in some countries China, for example to increase protection of local ICT industries. Some stimulus programmes may also have a protectionist sting in their tail. Policymakers remain concerned that ICT providers are not doing enough to ensure the privacy and integrity of customer data. Finally, there is mounting concern about the environmental impact of digital devices and networks.

News Source: Economist Intelligence Unit

Cyberspies penetrate electrical grid: report

Reuters, Wed Apr 8, 2009 8:12am EDT

The sun sets behind power lines in Carlsbad, California July 24, 2006.
(REUTERS/Mike Blake)

WASHINGTON (Reuters) - Cyberspies have penetrated the U.S. electrical grid and left behind software programs that could be used to disrupt the system, the Wall Street Journal reported on Wednesday.

The spies came from China, Russia and other countries, and were believed to be on a mission to navigate the U.S. electrical system and its controls, the newspaper said, citing current and former U.S. national security officials.

The intruders have not sought to damage the power grid or other key infrastructure but officials said they could try during a crisis or war, the paper said in a report on its website.

"The Chinese have attempted to map our infrastructure, such as the electrical grid," a senior intelligence official told the Journal. "So have the Russians."

The espionage appeared pervasive across the United States and does not target a particular company or region, said a former Department of Homeland Security official.

"There are intrusions, and they are growing," the former official told the paper, referring to electrical systems. "There were a lot last year."

The administration of U.S. President Barack Obama was not immediately available for comment on the newspaper report.

Authorities investigating the intrusions have found software tools left behind that could be used to destroy infrastructure components, the senior intelligence official said. He added, "If we go to war with them, they will try to turn them on."

Officials said water, sewage and other infrastructure systems also were at risk.

Protecting the electrical grid and other infrastructure is a key part of the Obama administration's cybersecurity review, which is to be completed next week.

The sophistication of the U.S. intrusions, which extend beyond electric to other key infrastructure systems, suggests that China and Russia are mainly responsible, according to intelligence officials and cybersecurity specialists.

While terrorist groups could develop the ability to penetrate U.S. infrastructure, they do not appear to have yet mounted attacks, these officials say.

(Writing by Eric Beech; Editing by Jon Boyle)

Microsoft: Windows 7 Downgradeable to XP

Techtree News Staff, Apr 07, 2009 1532 hrs IST

Microsoft s beloved operating system Windows XP might just get another extension. With Windows 7, the software giant Microsoft and PC makers will offer Windows 7 downgrade options. Under the downgrade option, PC buyers would be able to downgrade Windows 7 to Vista or even Windows XP. Of course, there would be certain conditions applicable.

Microsoft s Windows 7 looks good enough to repair Windows Vista s woes. While the public beta is available and being used, Microsoft is rumored to be releasing Windows 7 s release candidate this summer. AppleInsider reported that HP got the green signal for extension of rights to sell Windows XP loaded systems till April 30, 2010. Also, HP would be offering volume-license users the option to downgrade to Windows XP.

Mary Jo Foley, who writes on All About Microsoft Blog, questioned Microsoft on the Windows XP downgrade rights. Foley stated that Microsoft will offer downgrade rights to users for downgrading Windows 7 to earlier Windows versions. So, basically, users can downgrade Windows 7 to Windows XP, Windows 2000, or even Windows 98.

Getting back to the HP-related downgrade arrangement, the Microsoft spokesperson warded off the possibility of HP-exclusive downgrade rights. Microsoft said that the downgrade policies will be applicable to all main OEM partners and not as a special arrangement. Microsoft s spokesperson stated, No dates have been announced for the end of Windows 7 downgrade right facilitation to Windows XP.

To be noted, Microsoft and its OEM partners offer downgrade rights on only two Windows Vista versions Business and Ultimate. Either of these versions could be downgraded to XP Professional. Not to be forgotten that the OEMs charge customers a price for the downgrade. Customers buying new machines with Windows XP downgrade from Windows Vista this summer would also be eligible for free Windows 7 upgrade.

It is interesting that people are actually concerned about downgrade options even before the release date of Windows 7 is announced. On the other hand, Apple offers upgrades to their Mac OS X operating systems, and a preview of the Snow Leopard is expected at the Worldwide Developers Conference 2009 starting June 8.

It would be unfair to compare these options since a majority of corporate customers are concerned about supporting their infrastructure, services, and products with multiple operating systems from the same company. Yet another wait and watch game for customers to check out what s in store with regards to Windows 7.

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Microsoft launches new servers for small companies

Reuters, Wed Apr 1, 2009 9:21am EDT

SEATTLE, April 1 (Reuters) - Microsoft Corp (MSFT.O) on Wednesday launched a new range of server systems for small companies, scaling down its existing offerings to attack one of the fastest-growing segments of the business computing market.

The world's largest software company is launching into the market for small companies as competitors introduce cheap, open-source alternatives to its relatively costly Windows-based servers, and the use of pirated Windows products proliferates.

Microsoft's new product line, called Windows Server 2008 Foundation, can accommodate up to 15 users and will cost less than $1,000 for the hardware and software combined, the company said.

A server is essentially a powerful computer that provides services to other computers. A doctor's office, for example, might use a server to allow staff to share files, access the same systems or maintain a website.

Analysts reckon the low-end server market for products costing less than $1,000 has grown four times faster than any other price range for comparable single processor servers.

Microsoft's new offering is a stripped down version of its Windows Server family of products, which tend to be beyond the price range of small businesses.

Microsoft said Windows Server 2008 Foundation software will be sold already installed on machines sold by computer makers such as Acer Inc (2353.TW), Dell Inc (DELL.O), Hewlett-Packard Co (HPQ.N) and IBM Corp (IBM.N).

The computer makers will set the prices for their products, which may vary by country. (Reporting by Bill Rigby, editing by Maureen Bavdek)

Could the Tesla Model S become the Google Car?

ComputerWorld, Seth H. Weintraub, March 28, 2009 - 11:31 P.M.

Tesla Motors introduced their $50,000 Model S Electric Sedan this week to lots of ooohs and ahhhs from the automobile and tech communities. The bad news is that this won't roll off the assembly line until 2011-2012, at the earliest. The car is a model of inspiration to a dying domestic car industry even though Tesla as a company has had its internal struggles.

Besides its great looks and incredible specs (and unfortunate leadership controversies), there is something else interesting about the Tesla. Google's founders Sergey Brin and Larry Page are big investors.

We learned this week that the Tesla would have an industry first 17-inch display that would include Google Maps for driving guidance and a 3G connection to use services like Pandora radio. You can also check the battery charge on mobile devices as well. For instance, you can check the charging while you are at work.

But that isn't all that the Google founders would probably like to get into this car.

If they had their way...

The car's web browser of choice will undoubtedly be Google Chrome. The OS that is running the system will likely be Android. Google Talk/Google Voice (Grand Central) could also be used for communications.

Going international? Use Google Translate to navigate your way to Cabo San Lucas...or Quebec.

Youtube could keep the kids occupied in the back while driving or be a distraction while waiting for a Big Mac in the drive thru line. Speaking of distraction, how about seeing your Google Reader feeds or Google News on that 17-inch display.

Mobile shopping is getting bigger and Google Checkout/Product Search could play a part of this. Need to exchange a battery for the Tesla? Pull up Google to find the closest/cheapest battery refilling station.

That's just the beginning. Google has their hands on what could be the most revolutionary vehicle of the millennium, if they put those big brains to work on what automobile consumers want, they'll likely come up with things that make other cars seem...so last century.

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Cyber spies break into govt computers

The Jakarta Post, Chairmaine Noronha, The Associated Press, Toronto | Sun, 03/29/2009 11:38 AM

A cyber spy network based mainly in China hacked into classified documents from government and private organization in 103 countries, including the computers of the Dalai Lama and Tibetan exiles, Canadian researchers said Saturday.

The work of the Information Warfare Monitor initially focused on allegations of Chinese cyber espionage against the Tibetan community in exile, and eventually led to a much wider network of ompromised machines, the Internet-based research group said.

"We uncovered real-time evidence of malware that had penetrated Tibetan computer systems, extracting sensitive documents from the private office of the Dalai Lama," investigator Greg Walton said.

The research group said that while it's analsis points to China as the main source of the network, it has not conclusively been able to detect the identity or motivation of the hackers.

The Chinese Embassy in Toronto did not immediately return calls for comment Saturday.

Students For a Free Tibet activist Bhutila Karpoche said her organization's computers have been hacked into numerous times over the past four or five years, and particularly in the past year. She said she often gets e-mails that contain viruses that crash the group's computers.

The IWM is composed of researchers from Ottawa-based think tank SecDev Group and the University of Toronto's Munk Centre for International Studies. The group's initial findings led to a 10-month investigation summarized in the report to be released online Sunday.

The researchers detected a cyber espionage network involving over 1,295 compromised computers from the ministries of foreign affairs of Iran, Bangladesh, Latvia, Indonesia, Philippines, Brunei, Barbados and Bhutan. They also discovered hacked systems in the embassies of India, South Korea, Indonesia, Romania, Cyprus, Malta, Thailand, Taiwan, Portugal, Germany and Pakistan.

Once the hackers infiltrated the systems, they gained control using malware - software they install on the compromised computers - and sent and received data from them, the researchers said.

Two researchers at Cambridge University in Britain who worked on the part of the investigation related to the Tibetans are also releasing their own report Sunday.

In an online abstract for "The Snooping Dragon: Social Malware Surveillance of the Tibetan Movement," Shishir Nagaraja and Ross Anderson write that while malware attacks are not new, these attacks should be noted for their ability to collect "actionable intelligence for use by the police and security services of a repressive state, with potentially fatal consequences for those exposed."

They say prevention against such attacks will be difficult since traditional defense against social malware in government agencies involves expensive and intrusive measures that range from mandatory access controls to tedious operational security procedures.

The Dalai Lama fled over the Himalaya mountains into exile 50 years ago when China quashed an uprising in Tibet, placing it under its direct rule for the first time. The spiritual leader and the Tibetan government in exile are based in Dharmsala, India.

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Facebook users wage condom campaign against Pope

By Faith Karimi, CNN , 28 March 2009

(CNN) -- Critics took to the social networking site Facebook to voice their fury over Pope Benedict's remark that condoms do not prevent HIV.

Thousands of Facebook supporters plan to send condoms to the Vatican.

Thousands have pledged to send the pontiff millions of condoms to protest the controversial comment he made to journalists as he flew to Cameroon last week.

"You can't resolve it with the distribution of condoms," the pope told reporters. "On the contrary, it increases the problem."

Pope Benedict XVI has made it clear he intends to uphold the traditional Catholic teaching on artificial contraception. The Vatican has long opposed the use of condoms and other forms of birth control and encourages sexual abstinence to fight the spread of the disease.

About a dozen Facebook groups have sprang up, mostly from European countries, criticizing the pontiff.

"The clergy aren't supposed to have sex at all, but they are free to tell people how to conduct themselves? That's like a girl who wears no make-up as the CEO of CoverGirl," one member posted on the page, "Condoms for Pope Benedict XVI."

"It frightens me that a man who has devoted his life to moral guidance ... and is undeniably a learned, intelligent man can be at the same time so narrow-minded, bigoted and irresponsible," posted another person on a different page.

The online campaign added another voice to a deluge of criticism, which includes the governments of France, Germany and Belgium. Aid agencies and other health organizations have also chimed in.

The Lancet, a British medical journal, urged the pope Saturday to issue a retraction for themore "outrageous and wildly inaccurate" statement to journalists aboard his plane.

"When any influential person, be it a religious or political leader, makes a false scientific statement that could be devastating to the health of millions of people, they should retract or correct the public record," The Lancet said in an editorial.

"Anything less from Pope Benedict would be an immense disservice to the public and health advocates, including many thousands of Catholics, who work tirelessly to try and prevent the spread of HIV/AIDS worldwide."

Some in the Catholic Church have rallied to the pontiff's support.

Cardinal Angelo Bagnasco, head of the Italian Bishops Conference, told Times Online in Britain that Benedict was simply pointing out that condoms "had not solved and could not solve the AIDS problem."

Despite the controversy, the pope's pilgrimage spurred excitement in Africa. An estimated 1 million people turned out to hear him preach a Mass in Angola on Sunday, the last major event of his trip. He spoke of the need for reconciliation in the country, which has endured a brutal civil war.

"Look to the future with hope, trust in God's promises and live in his truth. In this way you will build something that will stand and endure," he said.

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Singapore, China Shine in Global IT Index

The latest World Economic Forum rankings list Singapore as Asia's most "networked" economy. China is No. 46, up from 57th last year

BusinessWeek, By Vivian Yeo, Friday 27 March 2009

Singapore—the island-state is the most ICT-savvy economy in Asia, according to a new report released today.

The country was ranked No. 4 on the Networked-Readiness Index (NRI) of the Global Information Technology Report 2008-2009, the eighth produced by the World Economic Forum (WEF) in partnership with business school Insead. Last year, Singapore was fifth worldwide.

The index examines ICT effectiveness of economies based on three dimensions: business, regulatory and infrastructure environment for ICT; readiness of individuals, businesses and governments to benefit from ICT; and their actual usage of the latest technologies available. Through a combination of public data and executive perception surveys, a record 134 economies were reviewed this year.

In a repeat of last year, Denmark and Sweden were ranked first and second, respectively in the new index. The United States climbed up one spot to No. 3, while Switzerland fell two notches to fifth. Other Nordic countries—Finland, Iceland and Norway—also made it to the top 10, while the Netherlands and Canada took the last two spots.

ASIA: MORE MARKETS SLIP IN RANKINGS

In the case of Singapore, the strong focus on ICT, education and public-private partnership transformed the resource-lacking economy into a high-tech powerhouse within just a few decades, Irene Mia, senior economist and director at the World Economic Forum and co-editor of the Cisco-sponsored report, said in a briefing via Cisco's TelePresence technology.

"Singapore's prowess in the ICT readiness has much to do with its excellent market and regulatory environment, conducive to innovation and ICT advances, as well with the prominent and consistent role played by the government in setting a vision for ICT penetration and innovation-based development," she pointed out. "This is confirmed by the first and second positions Singapore got for the government readiness and usage, respectively.

Elsewhere across the region, several economies ascended the index. China made the most significant move up the index, occupying No. 46 compared to last year's No. 57.

At the same time, the world's most populous nation overtook India for the first time to lead the BRIC (Brazil, Russia, India and China) economies, said Mia. China, she told ZDNet Asia, improved "very much" over the last year in terms of ICT readiness of its stakeholders. The Chinese government, for instance, has increased its focus on ICT, which has also been worked into political agendas. "This translates into better services and efficiency," she said.

On the other hand, the country also faced some weaknesses, in terms of a low penetration rate for broadband connectivity, given its mass, she noted. There appears also to be improvement needed on the regulatory front, such as protection of intellectual property, as well as in its business environment in terms of availability of venture capital.

Nonetheless, it was clear that "China is a country that has been progressing consistently" on the index, said Mia.

Shaun Rein, managing director of China Market Research, said in an e-mail that in 2008, the number of Internet users in urban areas of China grew 35.6 percent over 2007, while the online population in rural areas increased 60.8 percent year-on-year to reach 84.6 million. Last year, the country's total Internet population hit 298 million.

"This trend is likely to continue as the government is investing to ensure that broadband coverage is increasingly comprehensive outside of major cities," Rein noted, adding that the authorities are likely to focus on the western and central regions where broadband penetration is currently significantly lower.

Taiwan and Japan, both in the top 20, also climbed up several notches. Vietnam, ranked No. 73 last year, rose by three places to No. 70.

However, a number of Asian economies also slid in this year's rankings. Cambodia was the worst hit at No. 126, down 11 places from No. 115 in the last edition. Indonesia and Thailand both fell seven spots to No. 83 and No. 47, respectively.

According to WEF's Mia, Indonesia seemed to lag as it did not progress as much as other countries in terms of absolute scores, while Thailand's recent political turmoil may have affected business sentiment.

India dropped four notches to No. 54, while the Philippines fell by the same margin to No. 85. Malaysia and Korea dropped two positions each, to No. 28 and No. 11, respectively.

Brunei made its entry into the index at No. 63.

Provided by ZDNet Asia—Where Technology Means Business

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The Networked Readiness Index 2008–2009 rankings (Pdf)

Earth Hour Participants to Turn Off PCs, Smartphones

eWeek.com, By Nathan Eddy, 2009-03-27

This year's Earth Hour event is expected to draw participants from all seven continents, who will turn off their smartphones, PCs and lights for an hour on Saturday. Major technology companies such as RIM, maker of the BlackBerry, are participating, but an Earth Hour spokesman wants businesses of any size to know they can participate.

At 8:30 p.m. on Saturday, people from all corners of the world will turn off their lights for one hour - Earth Hour, as 8:30 p.m. rolls across the world to their time zones.

This year, the event’s organizers, the Word Wildlife Fund has set a goal of 1 billion participants. Major landmarks around the world, including the Empire State Building, the Acropolis and the Eiffel Tower will go dark for an hour. While your business may not have so prominent a location, the event’s organizers are encouraging everyone to participate—as are major IT companies around the world.

BlackBerry manufacturer Research in Motion launched a special Website, accessible only through certain BlackBerry devices, supporting Earth Hour. Owners of the BlackBerry Bold, Storm, Curve, Curve 8900, 8800 and Pearl smartphones will be able to access the site, which allows users to access the latest news and videos about Earth Hour, which is being celebrated in 81 countries across the globe.

BlackBerry owners can also access Earth Hour profiles on YouTube and social networking sites such as Facebook, MySpace and Twitter. Electronics manufacturer Belkin International released a statement reminding businesses and individuals that turning off all your lights doesn’t mean you’re saving all the electricity you could be.

“Whether the lights are on or off, standby power is using more electricity than you realize and contributing to your personal greenhouse gas emissions,” the statement reads. “Standby power, also called vampire power, phantom load or leaking electricity, refers to the electric power consumed by appliances while turned off but still plugged into a power outlet.”

Belkin recommends unplugging the unused devices or switch off devices that are often used together and replacing battery-powered devices, such as cordless phones or rechargeable razors, with corded alternatives. This not only cuts down on the standby power required to charge the battery, but also reduces energy lost in battery charging and discharging inefficiencies.

In Doha, Qatar, HSBC said it would request all office employees to switch off all non-essential electrical appliances such as lights, televisions and computers for the hour. In South Africa, Vodacom, the country’s largest cellular network, will switch off its electronic billboards around Johannesburg and turn off the lights at fifteen of Vodacom’s offices throughout the country.

Suntech Power Holdings, the world’s largest photovoltaic (PV) module manufacturer, announced that it would turn off lights of its solar headquarters in Wuxi, China, and 500 employees, customers, partners and government officials would hold an event themed "What do we do if the Earth has no electricity?" in front of the company headquarters.

Closer to home, Con Edison, one of the largest energy companies in the United States, is also teaming up with the WWF to encourage New York City residents to power down for an hour on Saturday, and is taking the lead by announcing plans to dim the lights on the company’s headquarters in Manhattan. Earth Hour began in Sydney in 2007, when 2.2 million homes and businesses switched off their lights for one hour.

WWF spokesman Dan Forman wants small businesses to know they can participate as well, encouraging business owners to visit the Earth Hour Website and register their “Vote for Earth.” The companies will then be listed on the site as active participants. “Earth Hour is a movement anyone can participate in—from large corporations to small businesses,” he said. “Without a doubt there are small businesses from Alaska to the Florida Keys who are participating in Earth Hour.”

Forman says turning off decorative lighting, no matter how big or small, is something many small businesses can do to participate. Powering down non-essential electrical components will also help, though the symbolic nature of the event is best expressed by the absence of light more than the absence of power. “We don’t want businesses to turn all their lights off,” he explains. “We want your business to thrive during the hour, but do what you can as a symbolic gesture.”

Other ways small business owners can help the event is by spreading the word to employees and customers. “Put signs up in your windows, get the word out,” he says. “Your employees respect the fact that their employers care about the environment." Forman said “mom and pop” movie theatres are even running Earth Hour PSAs in their venues. “This is a great event for small businesses,” he says.

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Tourism Industry Missing the Big Attraction

The Jakarta Globe, Nanda Ivens, March 26, 2009

I can only hope I did not sound like I was from another planet when I spoke about the urgent need to listen to “word of mouth” and “engage social media” with top executives and entrepreneurs from the tourism industry at a seminar in Jakarta earlier this month.

To build awareness among the seminar participants about the power of Internet-based social media, I had to accept the fact that only a small number of participants raised their hands when asked whether they had corporate Web sites and almost none updated them regularly.

Have I been in Europe so long that I have lost touch with the developments of my own people? I doubt it. Just the other day there was an encouraging picture in a local paper of residents in a village near the West Nusa Tenggara provincial capital surfing the Internet through a program called “Digital Village.”

Consider these statistics: As of May 2008, there were 25 million Internet users in Indonesia, or 10 percent of the population. Friendster, a popular online social networking site, has eight million users in Indonesia, and WordPress and BlogSpot, free Internet blogsites, have 300,000 and 247,000 members from Indonesia. Bahasa Indonesia is the third most-used language on WordPress.com after English and Spanish, and Facebook, another Internet social media site, grew 645 percent in Indonesia in 2008. There are currently 831,000 Indonesians on Facebook. These are really amazing statistics for a country where about 15 percent of the population still survives on less than $1 a day.

The conclusion is clear: While most business executives in the tourism sector don’t seem convinced about the power of the Internet, the reality is that Indonesians have embraced it in full force. The 2009 Edelman Trust Barometer released this month in Jakarta makes it very clear that the future of communications in this country belongs to Internet-based social media.

According to the findings, 40 percent of young, informed respondents aged 25-34 said they consider information about a company on Internet search engines, particularly Google, extremely or very credible.

This is significantly higher than the 26 percent of respondents from the same age group who find information in newspaper articles extremely or very credible. For respondents aged 35-64, the information in Google has the same level of trustworthiness as articles in newspapers. Strong evidence that Indonesians are moving away from traditional media and looking for information on Internet-based sites.

Is the tourism industry aware of all the activity on social media? Or are we still limiting our interaction with customers to single-channel communications through advertising, when most of the informed public has migrated to the Internet for credible sources of information?

The current global financial and economic crisis may force the local tourism industry to shift its target from a foreign-arrival-oriented approach to one of cultivating and nurturing domestic tourist potential. Domestic tourism potential is huge, and local travelers share their experiences and seek information from social groups or their peers through social media. Pictures of tourist spots are shared on Facebook, and there is a significant amount of online chatter about tourist-related topics.

The Internet allows companies to be creative in the way they approach potential customers. Through interactive social media activities, companies are better able to focus potential customers on more detailed content about tourism hot spots, unique facets of the culture and rare cultural activities. This is all packaged in content-rich products that can easily be disseminated and linked to multiple digital platforms from social media to mobile. Travelers search the Internet for ideas and inspiration, and when they do they expect to get concise information on the destination of their choice, before interaction and engagement begins. Comments, feedback and customer ratings on the Internet are important to the traveler’s decision-making process. More importantly, a multichannel approach is necessary to enable, as well as empower, potential customers to make contact and ask questions without feeling intimidated.

Let’s start with the Web site. The Web site for a travel and tourism establishment is the sales agent on the Internet and the first point of entry for many potential tourists. The Web site needs to be easy to find on Google or Yahoo searches and present a professional and engaging image to build credibility with customers. This can be enhanced by linking to content sharing, social networks, travel advisory or micro-blogging sites; developing active blogs; and forging partnerships with travel aggregators and online travel agents overseas.

One of the most attractive aspects of Internet-based outreach for both companies and their audiences is the efficiency with which properly developed online communications can work. Not only is communicating online cost effective, a clear advantage given the current financial climate, but it is also accountable and measurable. It is accountable because it is measurable. The measurement metrics are not just about how many people see, click or engage, but include the sphere of influence of these visitors. It is cost effective because an effective digital campaign does not require more than 25 percent of a company’s overall marketing communications budget, but can reach a highly targeted audience with higher potential to purchase. This has become a strong driver in shifting tourism-related companies to online marketing on Internet portals and search engines.

Going beyond domestic tourism, we often wonder why more tourists visit Singapore and Hong Kong than our beautiful country. In 2008, a mere 6.23 million foreign tourists visited Indonesia, compared to the 10.1 million and 29.5 million tourists in Singapore and Hong Kong in the same year.

The fact is that these countries have managed to utilize the power of the Internet very effectively. Living outside Indonesia, it was much easier for me to find information online about traveling in these countries than for Indonesia. We have often used issues like political instability as the reason for our lackluster tourism, but we have a growing reputation for stability today and this excuse no longer holds water.

The future of tourism is in the Internet, and it is high time that we start by using this channel to market ourselves domestically first, then use that expertise to market ourselves abroad.

The writer is director of the digital division at IndoPacific Edelman.

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Saying No To A Bonus: Google's Kordestani Declines His Award

Forbes, Joseph Tartakoff , 03.25.09, 08:08 PM EDT

Wall Street may now be infamous for wealthy execs clinging to their bonuses even in the midst of a downturn, but that’s not always the way it plays out in big tech.

Google (nasdaq: GOOG - news - people ) sales chief Omid Kordestani, for example, turned down the $1.4 million bonus he was awarded in March. From the company’s proxy statement: “Omid Kordestani declined his 2008 bonus payment ... Omid also declined to receive any equity awards in 2009.”

True, every other senior Google exec kept his 2008 bonus. And Kordestani is worth $1.4 billion, according to Forbes, so he certainly doesn’t need the extra cash.

Alexander Cwirko-Godycki, a research manager at Equilar Inc., a Redwood Shores, Calif., company that specializes in executive compensation, said an increasing number of executives at big tech companies were forgoing bonuses as the economy weakens, even when those executives were achieving some of their performance goals.

A recent Equilar report found that technology companies accounted for the largest chunk—38%—of the 133 companies that have cut the base salaries of executives since June. Financial firms made up a comparatively small 12 %.

At Google, base salaries of top executives stayed flat last year and bonuses for top executives fell only slightly. Former chief financial officer George Reyes, senior vice-president for product management Jonathan Rosenberg, senior vice-president for engineering and research Alan Eustace and chief legal officer David Drummond each made $450,000 in base pay, the same as in 2007. Their base wages were all bumped up from $250,000 to $450,000 that year. Google didn’t respond to an e-mail seeking comment.

As usual, the Google triumvirate of Eric Schmidt, Larry Page and Sergey Brin (who are all paid $1 a year) declined to participate in the company’s executive bonus plan in 2008, according to the proxy statement, filed Tuesday.

Brin and Page are worth $12 billion, while Schmidt is worth $4.4 billion.

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