On Friday 24 February, the boards of both AIIA and the Australian Electrical and Electronic Manufacturers’ Association (AEEMA) announced that, rather than proceed with a formal merger, the associations would work together on common interests in close collaboration.

In April 2005, the associations announced the possibility of merging to create a new organisation to represent the diverse technology-based and wealth-creating industry sectors which underpin Australia’s economy.

A joint steering committee was established to oversee the investigation and assessment of this proposal, which included joint member surveys, market research and comprehensive membership consultations. The boards, the two chief executive officers and their management teams collaborated to find ways of leveraging synergies and working together on common objectives.

It was quickly recognised that both organisations also provided unique offerings to their members which were highly valued by them, but not necessarily across the entire industry – electrical safety compliance, lighting standards, software partnerships, meeting government CIOs to understand strategy and state-based branches are a few examples.

The conclusion of this investigation was that the merger was unlikely to provide the same level of support for members as that which currently exists.

Moreover, significant structural challenges were identified during the formal due diligence component of the investigation, and the boards have therefore decided that the best interests of both associations are not served by a formal merger.

While synergies exist between the two membership bases, the core elements of both organisations proved too complex to merge effectively into a structure representing the diverse membership covered by both AEEMA and AIIA.

Although the merger of the two associations will no longer proceed, the assessment process has been very positive for both organisations.

Both AIIA and AEEMA have learnt a great deal about each other. The differences in operating arrangements are now clearly understood and areas where collaboration is both feasible and desirable have now been identified. Both organisations remain committed to delivering better industry representation and working together for the benefit of the industry sectors they represent. The two associations will therefore work in closer collaboration on matters of mutual advantage, such as lobbying government and preparing submissions on policy issues.

AIIA and AEEMA will also pursue some specific joint opportunities in areas such as export promotion, e-health, standards, and industry events.

AIIA has also gained a deeper understanding of its own association and the needs of members, and as a result will be able to deliver a new suite of services based on information gained from feedback and surveys undertaken during the merger exploration process, said AIIA’s Chief Executive Officer, Rob Durie.

“The lessons we’ve learned will enable AIIA to better represent an industry which contributes 5.9 per cent of Australia’s GDP and is the driving force behind the economy’s productivity growth.

“Part of our strategy is to demonstrate to key government, media and industry stakeholders that the ICT industry is not just an important sector in its own right, but is a driver of productivity, job growth, social advancement and economic prosperity for all Australians,” Mr Durie said.

In 2006, AIIA will continue to focus on delivering programs and products that improve the business climate for all members.

One of AIIA’s new initiatives in 2006 is the development of collaborative networks, or clusters, which will work together to source new markets and increase sales. The program, called CollabIT, already has the support of the Victorian Government, and AIIA is working with both federal and state governments to promote its broader adoption.

AIIA will continue to build on its procurement successes in the areas of capping liability and supplier retention of intellectual property, and will work with government, business and consumers to ensure that ICT is successfully deployed and utilised.

“The merger exploration process has strengthened AIIA, allowing us to focus on the issues and services truly valued by our members, and at the same time enabling the Association to highlight the value of the Australian ICT industry to key decision makers,” Mr Durie concluded.

For more information on AIIA’s commitment to the Australian ICT industry, visit www.aiia.com.au.

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