A Survey of the Computer Industry in Israel

A Survey of the Computer larelUiiayy oe Tele la a f he be ¥ i State of Israel The Jerusalem Economic Conference Computer Committee co REPORTS : Presented to the 2 Third International Meeting d of the “4 Computer Committees - a ‘| i Ny Jerusalem 28-30 May 1973 PRODUCED BY . RUDER AND FINN PUBLIC RELATIONS LTD. 2 HASOREG STREET, JERUSALEM ‘TEL. : 231366 SET AND PRINTED BY HAMAKOR PRESS,- JERUSALEM CONTENTS Introduction by U. Galil, Chairman, Israel Computer Committee List of Members of Computer Committees Progress Report by A. Gertz, Coordinator of the Computer Committees Report on Education and Training, by D. Cohen, Chairman, subcom- mittee on Manpower and Education Forecast and Survey of the Computer and Informatics Industry List of Computer Manufacturers List of Computer-related Electronic Enterprises List of Software Houses List of Service Bureaus INTRODUCTION U. Galil, Chairman Israel Computer Committee It is my pleasure to welcome you all to the Third International meeting of the Computer Committee. The position of the Computer Committee in the Jerusalem Economic Conference is unique. Of all the committees, it alone is composed of representatives of both manufacturers and users of computers and computer-related goods anud services. This formula has proven quite successful; problems are dealt with as they arise, policy agreed upon, budgets worked out, and plans made and implemented. The respon- sibility of the Computer Committee is tremendous, because the compu- ter community and all its ramifications have a considerable influence on the economy. Industry, Government, private enterprises and public concerns, banking, medicine and health services, defense forces, police and fire services, communication and education — all these _and hundreds more: feel ths effect of aa sone as sennypoters serve everybody. The objective of: the Computer Committee is to determine the proper way in which computer manufacturing and usage here in Israel can help the Israel economy, and better serve its community. In many respects, computer science, like medical science, has devel- oped a mystique, an aura of magical quality, if you will. The man inthe street knows neither its limitations nor its potential. We are ‘ concerned with remedying this situation as it applies to our industry An intensive campaign of enlightenment is called for; people must be convinced that their lives are better because of computers, and that in the coming years the field will provide employment for millions, both directly and indirectly. Such education is one of the goals of the Computer Committee. Another is the advancement of the state of the art to the point where computers will be employed by all who can benefit from their. use.. And together with these two goals, a third must be realized: The refinement of manufacturing techniqites and 5 MEMBERS OF THE COMPUTER COMMITTEES" Chairmen of Regional Committees: W. L. Frank — North America H. F. Sherwood — Continental Europe Ing. S. F. Beltran — © Latin America’ U. Galil — Israel | Coordinator — A. Gertz Assistant — E. Wagner . MEMBERS: G. Akos, The Netherlands G. P. Altshuler, Germany | F. L. Bacon, U.K. E. Baron, Mexico H. W. Bomzer, U.S.A. T. H. Bonn, U.S.A. B. Bretholz, Belgium J. Chapiro, Argentina M. Chayen, U.K. D. Chevion, Israel F. Cohn, Sweden D. Cukierman, Uruguay Managing Board of the Israel Computer Committee: U. Galil, Chairman D. Cohen, Chairman of Subcom- mittee on Manpower and Edu- cation A. Gertz, Coordinator I. Meidan, Chairman of Intermin- isterial Council for Informatics in Government F. Moser, Chairman of Subcom- mittee on marketing Dr. A. Shani, Chairman of Sub- committee on Research and Development S. Tulchinsky, Chairman of Sub- committee on Efficiency in Computer Usage ‘ A. David, France M. Dawan, Italy P. H. Dorn, U.S.A. P. Dreyfus, France Prof. G. Estrin, U.S.A. D. Familiant, Belgium I. Feldman, U.S.A. L. Fine, South Africa Prof. A. Finerman, U.S.A. B. Friedman, U.S.A. D. Galinka, Israel Prof. B. Galler, U.S.A. the development of new products and services at costs low enough so that we can supply ourselves and the world with the means for modern living — so that we can place mankind’s electronic. benefactor within the reach of everyone. In your file you will find the fepdct on a survey which was carried out by Iltam under the instructions of the Ministry of Commerce and Industry, and with the. guidance of the Israel Computer Committee: * This report is intended to serve as background material for the’ dis- cussions of the Jerusalem Computer Conference. An important part has been dedicated to the development of the “Informatics Industry” in Israel in the next decade. The Ministry of Commerce and Industry felt, and we concurred, that the importance of the development of | this industry requires very careful planning. We expect that during the sessions we will have the chance to discuss this in depth. I would like to point out that this time we have put a major ern ohasls on the industrial side of the problem. We have not yet gone deep into planning a better usage of computers in the Israel economy. We shall , have to do this at some time in the future. In addition to thé above survey and plan you will find other iatenal that we would like to discuss during the conference. I-want to avail myself of this opportunity to thank’ ‘all ‘those who helped in preparing the background materials and particularly ‘Dr. | Shani and Messrs. Cohen, Moser, Tulchinsky and Gertz. I want also to thank Mr. Rom, “of the ‘Ministry of Commerce and Industry, who is in charge of the Computer Industry’s activities within the Ministry, and particularly Mr. Gertz the Coordinator of the Computer Committees, and last but not least, Mr. Wagner, for their great contribution. I want also to express my appreciation to Mr. Aldouby, who worked hard to prepare ‘the material on the forecast and survey of the com- puter and Information Industry with. very much understanding and a lot of zeal. : > : : . "Thank you all for being here with us. May our discussions be fruitful! SE Nee OO Ee See PROGRESS REPORT by A. Gertz Coordinator of the Computer Committees 1. This progress report covers the period between the Second Inter- national Meeting of the Computer Committees in August 1971 and the forthcoming Third Meeting to take place within the framework of the Jerusalem Economic Conference, May 28-30, 1973. In view of the fact that all the relevant information on the Israeli Informatics Industry has already been included in other chapters of this publica- tion, this progress report will concentrate mainly on the administrative aspects of the activities of the Computer Committees. An updated ver- sion of statistical information and other important material will be released to the members of the Computer Committees by means of a special issue of the ILTAM newsletter. 2. During the period covered by this report, various chapters of the Computer Committee held the meetings listed below: 1. U.S.A. and Canada: 17 May 1972, 30 October 1972. Continental Europe: 25 January 1972, 30 October 1972. United Kingdom: 11 December 1972. France (special consultation): 21 February 1973. Latin America: April 1972. 6. Israel: 28 October 1971, 10 April 1972, 28 December 1972. 3. The North American Computer Committee continues its activities under chairmanship of Mr. W. Frank, President of Equimatics, who is devoting a lot of time and energy to this activity. This committee, as well as those in the other parts of the world (excluding Israel) does not have a generally permanent membership; those invited to the meetings are senior computer professionals who share a special interest in this activity. This being the case, there is still a considerable group of members who participate regularly in the gatherings despite the difficulties caused by the long distances they have to travel. 4. -The European Committee which functioned efficiently for several years under the able chairmanship of Mr. A. Benjamin of London, Ce Sw 9 Prof. A. Ginzburg, Israel M. Goldman, France P. Gordon, France Prof. C. Gotlieb, Canada L. K. Grodman, U.S.A. R. Guzman, Israel C. Halber, France W. Hall, France P. Hassid, France Dr. B. Kessel, U.S.A. Dr. P. Kirstein, U.K. F. Lautenberg, U.S.A. Y. Lai, U.S.A. - P, Lebouch, France P. Lebouc, France D. Lewy, France O. Lewinter, U.S.A. J. Lipow, U.S.A. H. Luck, U.K. Dr. M. Mangad, U.S.A. V. Markovics, U.S.A. L. F. Meyer, Paraguay M. Mills, U.K. Prof. J. Minker, U.S.A. L. Mittwoch, Israel S. Musher, U.S.A. A. Naccache, France A. Piccioto, Belgium Prof. N. Prywes, U.S.A. Dr. J. Raiman, France’ N. Raz, Israel J. Roitman, Israel Prof. B. Rosin, U.S.A. Prof. S. Ruhman, Israel R. Ryde, U.K. A. Schacknow, U.S.A. M. H. Schwartz, U.S.A. A. Shafritz, U.S.A. Y. Shamir, Israel Prof. D. Shimshoni, Israel R. Sidier, France A. Shore, Israel Prof. T. Sterling, Canada S. L. Stulman, U.S.A. A. Thein, Mexico M. Wodnicky, France A. Zamir, Israel The Israel Computer Committee is recognized: by the Israel’ Govern- ment as the consulting body on all issues connected with computers in Israel, and its recommendations are given the appropriate attention and weight. The activities of the Computer Committee and its Sub- committees are coordinated by a Managing Board, consisting of the Committee Chairman, the four chairmen of the Subcommittees, the head of the Interministerial Council on ADP, and Coordinator of the Computer Committees. The ILTAM Corporation (see below) acts as the Computer Committee’s secretariat, as well as its executive body, and its Director General coordinate the activities of the Committees in Israel and abroad on behalf of the Economic Conference. The Israel Computer Committee embraces all branches and sectors of computer activity in the country, i.e. manufacturers, users, representa- tives of foreign companies, software houses and service bureaus, as well as the Government, public, cooperative and private sectors, grant- ing balanced and fully representative status to all in its deliberations and recommendations. 7. At the Sésond Internationa! Mexting of the Computer Committees, which convened in Jerusalem on 15-16 August 1971, an elaborate discussion took place on the major issues confronting the Informatics industry in Israel. At. this gathering — which was attended by more than a hundred representatives from all over the world — a number of recommendations were adopted; the full text is attached to this report. It may be pointed out that constdaeiile progress has been made i in the implementation of the a/m meeting’s recommendations. Most of these have actually been carried out, or are in the process of implementation. The Israel Computer Committee, for instance, has been organized — in line with these. recommendations — to enable it to realize the sug- gestions relating to the establishment of a policy-making body and of an appropriate council dealing with professional manpower. The Managing Board of the Computer Committee is responsible for the formulation of policy, whereas the Manpower Subcommittee, for example, acts as the a/m Council’s specialized extension for formulat- ing the recommendations in the field of manpower requirements and development. The issue of consolidating the Israeli software industry is-under intensive and serious consideration, and a decision in princi- 11 has been divided into two separate committees for organizational reasons. One will serve Continental Europe, and the other the United Kingdom. Mr. Henry Sherwood, Vice President of Diebold Europe, has been appointed Chairman of the Continental Europe Computer Committee, but up to the time of writing this report no replacement has been found for Mr. Benjamin, who resigned his chairmanship of the U.K. Committee because of taking on an important assignment outside ‘the Informatics Industry. On this occasion we .would like to express ‘special appreciation, on behalf of those involved with the Economic Conference and the Computer Committees, for the work done by Mr. Benjamin during the years he served as chairman. 5.. In spring of 1972, the inauguration meeting of the Latin American chapter of the Computer Committee took place in Mexico City. Mr. A. Gertz, Coordinator of the Computer Committees, who was in Mexico at that time, initiated this meeting during which Ing. S. Beltran, Director General of Informatica y Procesos Mecanizados, was appoint- ed Chairman; regretfully, however, this chapter has not yet embarked on any. substantial work, although a number of promising programs were conceived at the first gathering. 6. The Israel Computer Committee was reorganized; Mr. A. Nach- shon, ‘who left this post after almost five years of fruitful guidance of the Committee, passed the chairmanship to Mr. U. Galil, Managing Director of Elbit, Computers. Membership in the Israel Committee is fixed, and members are appointed by the directorate of the Economic Conference in the consultation with the Ministry of Commerce and Industry. The Israel Pespater Committee includes four Subcom- mittees: : : : : aby Manpower Subcommittee, eben by: Mr. D. . Cohen, ‘Managing Director of I.B.M.-Israel. .. Research and Development Sufcommeittes, chaired by Dr. A. . Shani, Managing Director. of the ‘Alef’? Company. ee ' Mietere- Subcommittee, chaired by Dr. F. Moser, Managing Director of the “Natam” Company. Subcommittee on Efficiency in Computer Usage, chaired by . Mr. S. ph iprii Deputy Disecipe General of sini Len ; ~L’Israel.: oS & 10 from abroad and about 1,200 Israelis taking part in this event. The exhibition of computer equipment and of the Israeli software industry were quite impressive, and added to the general interest taken in the JCIT. The three volumes of the proceedings of the Conference were comprised of all the lectures and papers pres- ented, as well as the summaries of the 40 panel discussions. The first JCIT aroused considerable interest in the professional world, particularly among the developing countries whose Informatics problems were the overall topic of the event. The conference ' proceedings were disseminated among all national delegations of the United Nations. They were also used as background mater- ial for the discussions of the panel of experts which prepared the report of the UN Secretary General on “Application of Com- puter Technology for Development.” Professor G. Estrin of U.C.L.A. was the Chairman of the Interna- _ tional Program Committee of the first JCIT. He, together with .. the Chairman of the U.S.A. Program Committee, Professor J. “ Minker of Maryland U., did a most distinguished job in shaping the program and in its implementation. Also the valuable contribu- ‘+ tions of the members of the Program Committees in the U.S.A. and Europe should be mentioned in this connection — especially the assistance rendered by Mr. A. Benjamin of London. Encouraged by the success of the first JCIT, a proposal to organ- ize a second Jerusalem Coference on Information Technology was brought before the Computer Committees. The proposal for this conference, which should be patterned after the first one, was discussed by the Computer Committees and was enthusiastical- :. ly received. It was therefore decided to propose and recommend to the authorities of the Economic Conference to hold a second JCIT in 1974. The authorities decided in favor of the recommen- dation. The attached document contains the main directions which served as background material for the decisions of the Computer Committees. ‘In the meantime, the Program Committees for the Second JCIT ’ have already begun to function. Professor C. Gotlieb of Canada ‘was kind enough to accept the Chairmanship of the astomedione! . Program Committee. The Regional Chairmen are: 13 ple on the establishment of a national training fund has also been made; the fund will start operating in the near future. In general it may be said that the recommendations and suggestions of the Inter- national Meeting of the Computer Committees have served as guide- lines for the activities of the Committees in Israel as well as abroad, and — hopefully — this course of action will also be followed in the future. 8. During the interim period to which this report felates, the com- mittees in Israel and abroad dealt mainly with the following topics: 12 (1) Long-range planning for the Informatics Industry in Israel. (2) The Second Jerusalem Conference on Information Technol- ogy (JCIT). (3) The consolidation of the software industry. (4) The Informatics Program for Israel (IPI). (5) Problems relating to computer education and training, ad-: vanced training and consulting. : We will consider each of these topics separately and at some length: (1) ' Long-range planning for the Informatics Industry in Israel This subject has been dealt with so far by the Israel Computer Committee. In accordance with guidelines formulated by this body, ILTAM conducted a survey to assess the development of the computer equipment industry during the next ten years. This fore- cast was discussed in depth by the Committee, and its findings are presented herewith to the Third International Meeting of the Computer Committees. For technical reasons it had been imposi- ble to bring up this subject for discussion at meetings of the Cocputer Committees in the U.S.A. and Europe, but it was pres- _ented in the form of a general outline. This plan will be the major topic for the deliberations of the Computer Committees during the Third International Meeting in May 1973. (2) The Second: Jerusalem Rontenence on Information Technol- ogy (JCIT) | The first JCIT, held with the assistance of the Computer Commit- tee, was a considerable success. There were about.500 participants - Subcommittee, Mr. David Cohen, presents -a general overview of the situation in Israel with regard to this vital topic. The Com- mittees abroad and their members, collectively and individually, gave their opinions and guidance on this subject by proposing _ to teach courses, hold one-day seminars, exchange experts, promote : study tours abroad by Israeli trainees, etc. _ ‘a. The ILTAM Corporation for Planning and Research Ltd. ‘has expanded its activities and has ‘taken additional tasks - upon itself, in order to achieve better coordination and greater '. effectiveness in all areas of Informatics. Beginning Jennuary 1, 1973, the functions of the Computer Desk within the Ministry of Commerce and Industry has been. transferred to ILTAM, and all the tasks previously performed by this Desk will now be performed by ILTAM. ILTAM is now the plan- ning and implementing body acting on behalf of the Ministry in the field of Informatics. In line with this arrangement, ILTAM is also administering the activities of the Computer Committee. This new setup will certainly contribute to greater efficiency in dealing with computer problems, and thereby accelerate progress in the field. b. ILTAM is presently in the process of broadening its scope of activities; this necessitates a redefinition of its terms of ‘reference. In the framework of this report the activities of ILTAM relevant to the period covered by the report will be considered. . 1.. Seminars — Since the Conference in August 1971, six international seminars have geen organized by IL- TAM, in which about 400 students participated. The topics of the seminars and the names of the heads of ’ the lecturing teams follow: — Information Storage and Retrieval (9/71); Prof. J. '.” Minker. — Computers in Middicine (12/72): Dr. P. Hall. — Data Processing Projects yeeneeoe (10/72); Mr. D. Lovewirth. 45 Mr. David Cohen, General Manager, I.B.M.-Israel. Mr. Henry F. Sherwood, Vice-President, Diebold-Europe. Dr. Herbert Maisel, Georgetown University, U.S.A. Prof. I. Marin, University of Los Angeles (for Latin America). Preliminary information regarding the program of the Second JCIT and a “‘call for papers” are attached to this ae “. 3) Consolidation of the Software Industry in Israel “ On the basis of the recommendations of the Second International : 14 Meeting of the Computer Committees in 1971, the Israel Com- puter Committee decided to embark on certain actions for strength- ening the software industry. As a first step, a large software house was to be established by merging a number of the more prominent Israeli software houses and one from abroad. The proposal, the general outline of which is attached to this report, has already been brought up for discussion in all Computer Com- mittees and has aroused considerable interest. However, dif- ferences of opinion also exist. This subject is on the agenda of the present International Meeting, and will be discussed at length. (4) The Informatics Program for Israel (IPI) This subject has already been discussed by the Computer Commit- tees and has received their support and backing. The major as- pects of the IPI idea are contained in the attached document. It is anticipated that final approval of IPI will be forthcoming at the 1973 Conference, so that it will be possible to officially announce its establishment and activation. There is good reason to believe that the first gathering of IPI members will be convened during the Second JCIT in the summer of 1974. (5) Education and Training f At all the sessions of the Computer Committees, the subject of computer education and training was brought up for discussion, and has taken a prominent place in all the activities of the Com- mittees. The specie! report of the Chairman of the Manpower 4.. Surveys — During the period covered’ by this report, ILTAM conducted a number of important surveys. One project — carried out by the Israel Institute of Productiv- ity — dealt with efficiency of computer usage in various enterprises. This report was first attempt to define criteria for evaluating the level of efficiency not only from the _ technical point of view but also with regard to level of sophistication and standards of proficiency. Since this study was conceived as a pilot project, an actual assess- ment will only be possible after the second stage, which will include a much larger sample for comparative anal- ysis. Another survey dealt with the Israel economy’s total expenditure on Informatics for the calendar year 1971; yet a third study was a forecast of the development of Israel’s computer industry, both hardware and software, in the next decade (see special chapter on this item). _ 5. ILTAM conteinues to be the major source of infor- mation and the main point of professional contacts be- tween Israel’s Informatics industry and those abroad who are interested in reciprocal relations with Israel in the field of commercial, scientific, and other useful applica- tions of informatics. The ILTAM Newsletter has a circu- lation of-.1,000.copies and is read all over the world. Hundreds of individuals and companies apply to ILTAM for advice and. information. ‘- 6; ‘Special attention is paid by ILTAM to the software industry by assisting software houses to obtain R. & D. grants for the development of software packages, to promote export and marketing, and so forth. ILTAM takes an--active part in the work of ILOT, the Israel ae Association. of Software Houses, and extends them its support. 7. ‘Finally, as stated above, ILTAM serves as the ad- “ministrative coordinator of the Computer Committees in Israel and abroad. It is-also responsible to the Govern- ment for the organization of the Jerusalem Conference 17 16 — Design Automation of Digital Systems (12/72); Prof. M. Brewer. — Hospital Information Systems (3/73); Dr. A. Pratt. ILTAM is continuing to organize seminars in advanced Informatics topics, thereby protracting the tradition estab- lished by Professor B. Galler, who headed the first IL- TAM seminar in 1968. These seminars, held by promin- ent experts, are contributing very substantially to the ele- vation of professional standards in Israel. Credit must be given to the Computer Committee for the advice and guidance it has given on these seminars. 2. The IPASI Project — Recently ILTAM began to further broaden the whole scope of seminars by designing a special framework called IPASI — International Pro- gram for Advanced Studies in Informatics. The objective of the program is to draw a larger number of students from abroad into the seminars. For this reason ILTAM is cooperating with El Al Israel Airlines in the IPASI project. Further details are given in the special prospectus contained in this folder. 3. Joint Scholarship Project (JSP) — As an outcome of the first Jerusalem Conference on Information Tech- nology (JCIT), the central theme of which was the ap- plication of computers in the service of developing coun- | tries, ILTAM has initiated the establishment of a special _ fund to enable students from developing countries to participate in the ILTAM seminars. The fund will be a joint project of the Intergovernmental Bureau on Infor- matics (IBI-ICC) in Rome, and the Department for International Cooperation of the Israel Ministry for Foreign Affairs. The total amount of this fund for the current year will be approximately $15,000 ,and will allow the participation of forty or fifty students and trainees from developing countries. It is hoped that the total amount of this fund will grow over the coming years, since other international agencies are expected to join this project. b. The various associations of ADP professionals continued with their manifold activities, which proved to be of considerable value to their respective members. Among these organizations, the following may be mentioned: — ILOT, the Association of Software Houses. — The Association of Users of Computer Equipment: IBM, NCR and CDC. — The Association of Service Bureaus. — IPA — Information Processing Association of Israel. — IASA — Israel Association of System Analysts. c. In the field of professionals, the following were published during the period covered by this report: — Yedion ILTAM (Hebrew) and ILTAM Newsletter (English). — Mai’assei Choshev (Hebrew) by IPA. —. Netivei Irgun U’Minhal (Hebrew). — Proceedings of Annual IPA Companies. — Yedion of the Israel Association of System Analysts. 19 on Information Technology and, after its ultimate ap- proval, will administer the IPI program. 9. The Organization of Informatics in Government: During the period covered by this report, substantial development has taken place in the organizational setup of computer usage in the Government. An Interministerial Committee for Coordination and Guidance was estab- lished, and a special unit within the Department of the Budget is now acting as the executive body for this committee. Some results have already been achieved ‘in the areas of Governmental ADP policy and systems design for ministerial and multi-ministerial applications. In the long run, this development will have a considerable impact, not only on Government and public administration, but on the entire Informatics Industry in Israel. 10. Research and Development: The Ministry of Commerce and Industry allocates R. & D. grants for the development of new industrial products. On the advisory committee, chaired by the Chief Scientist of the Ministry, a representative of ILTAM participates in all delibera- tions on R. & D. applications in the field of Informatics. Grants for the development of software packages are awarded to the extent of 25% of the actual cost, and for hardware products up to 50%. In systems development which includes both hardware and software, 50% of the cost is granted from R. & D. funds. In 1971-72 R. & D. fund allocations in the computer field amounted to 1.5 million Israel Pounds. In 1972-73 they are expected to reach 2.5 million. The Re- search & Development Subcommittee has recommended formulation of a long range plan for appropriating R. & D. grants over the next ten years; the plan should be adapted to the development of the computer industry as anticipated by the forecast presented in special chapter of this report. 11. Miscellaneous: a. Mr. Werner Frank, chairman of the United States Computer Committee, volunteered to conduct a survey of ADP systems in Government administration. For this purpose he spent about a month in Israel during the summer of 1971. His report to the Minister of Finance was received with great appreciation, and the recommendations contained therein were given serious attention by the appropriate departments. b. There has been a movement of people from Program- ., ming to Systems Analysis as a result of advanced training and job tenure. Hopefully, the education and traning actiy- ities of the institutions engaged in Systems Analysis courses have contributed to this trend. C. Computer Science Education in Israel Introduction The purpose of this report is to provide a concise but canimihanalve picture of current educational activities in Israel which are aimed at training.computer specialists above the programmer level. The report divides the institutes engaged in such activity into four main groups, namely: 1. Academic Institutes 2. Semi-Academic Institutes 3. “Center of ADP and Management Information Systems” of the Israel Institute of Productivity. . 4. ILTAM’s International Program for Advanced Studies in Informatics. , Academic Institutes All seven of Israel’s universities have computer centers. Their size is usually commensurate with the size and enrollment of the university. All universities offer programming courses which are open to members of every department and are heavily attended: : Six ‘of the seven universities offer programs in Computer Science. At the Technion and at Weizmann Institute, Computer Science is a major subject; at the others, a minor one. Only Haifa University does not currently offer a- degree program in Computer Science because it specializes in Social Sciences and the Humanities. Even so, approx- imately 450 students out of the total enrollment of about 7,000 attend its progr amming courses. “ The following table summarizes the activities at the six universities offering degree programs in Computer Science. Only those students majoring or minoring in this subject are included. Those simply taking computer courses randomly are omitted. 21 REPORT ON EDUCATION AND TRAINING By D. Cohen Chairman, Subcommittee on Manpower and Education A. General The general situation of manpower availability and deficiencies de- scribed in our report of August 1971 to the Second International Meeting of the Computer Committees is still valid. The recommenda- tions included in that report also continue to be valid. B. Manpower Development Between the Second and Third International Meetings of tie Computer Committees, the Central Bureau of Statistics has published the results of their “Survey on Electronic Computers 1972,” which analyzes the development of the industry in 1971 compared to 1970. An excerpt from that survey relating to persons directly employed in EDP, broken down by economic branch, type of ownership and district (excluding Defense and mini-computer installations) follows this section. A number of interesting observations can be made in this connection: 1. The increase in personnel was much larger in the private sector than in the Government sector — 35% vs. 20%. This trend also holds true for the number of computers installed in the two sectors. 2. There has been a significant increase in the numbers of Systems Analysts and designers — close to 70% .The increase in programmers, on the other hand, has been relatively small — slightly over 10%. There are probably a number of reasons for this trend: a. There has been a reclassification of job titles from Programmers to Systems Analysts in order to raise salary scales. It is interesting to note, in this respect, that the namber of Programmers in the Government sector has not - changed, whereas the number of Systems Analysts has almost doubled. This is not true for the private sector. 20 The table shows a total of 821 students currently enrolled, with 600 graduates expected by 1975. This forecast includes all three degrees and, in fact, counts twice those students who will earn two degrees. It is based on figures received from the Department Chairman or Program Coordinator concerned. The level of studies is rather high and compares favorably with that of European and American universities. There is a tendency to stress the theoretical aspects of computer science. The courses offered include, therefore, subjects such as Numerical Analysis, Combinatorics, Graph Theory, Automata, Logic and Algorithm, Compilation, Data Structures, Information Retrieval, Operations Research, and other such courses. The more practically oriented schools are Bar-Ilan, Tel Aviv Univer- sity’s School of Business Administration (which offers an MBA in Data Processing and Information Systems) and the Technion. These three include courses in ADP Systems Analysis and Information Systems in their programs. The Technion’s Extension Service also offers Systems Analysis in Tel Aviv and Haifa for college graduates. These courses will graduate about 30 analysts in 1973, and their number is expected to increase by 10 each year. _ The Weizmann Institute’s program is also theoretically oriented with a certain emphasis on hardware design and orientation, in view of the Institute’s experience gained in constructing their Weizac and Golem Computers. Most professors lecture at more than one university; this fact con- tributes to a certain uniformity among the programs. The discrepancy between the current number of M.Sc. students and the forecast number (in some institutes) of those who will receive M.Sc. degrees is due to the large number of “part-time” students who progress slowly, with many dropping out along the way. The institutes concerned are revising their admission policies to try to prevent this from happening in the future. Semi-Academic Institutes Two such institutes, both in Jerusalem, offer programs leading to the degree of ‘“Handassai” (Applied Engineer) in Computer Science. Their activities are summarized below: N 23 *AYISIOATUL) AIAY [2], 3B POlJISSe[O JOU a1v SjUapNys IBAA AST 009 sTB}IOL, pussy (SL6EL 4Q papreMme aq 0} saaidaq) ‘ rag PLI b 26 7 SL PSI 6s bi 7 06 9 6h 9 Ww s6 T3301 ¥ 09 O6T 0€ s9 ST 9% 0g z OL 4 L gs SL6T ¥ oy Set 74 os ot 9T 0€ (4 or z L 02 PLET ¥ 8% Ss 02 ce 9 £ * 02 z er (4 L oT €L6T — (44 FT = 17 ¥ = ie = ot — 8 ot oL6L = 61 = = = v = = = € = ras — Jord ‘pue TL6T ‘aud SW SA WA ‘S'S OSH Van OSH ‘Aud SW “Aud SW OS'A ; (S}SBdaI0J BINjNJ pu ysed) SOPENPCIH JO"ON °F Tes 06 622 92 SFT 98 92 Te70L TZ = — — as 9 ST "aud 0LZ = = Se c8 08 08 ISA (uoluyoa, 72 ATUO S}s]xo) OT _ = = oT uy €TI SZ eP (yyeU CZ 02 pag S6T oe €L (UJBVUL) GE LS pug (sbaryissepoun +) ZZ sé eIt (e) $9 Tt sxeox Aq syuepNyS JO°ON ‘Z es tg (U98TT) CIOS “4UN) (PY SN) VAI pe193JO Sa 40 ee OSWaUd (MUIBGN) OSA ‘AUd ‘OS'W ‘C'Ud ISH OS ‘@ Se0130q “TL S'd AWOUN GH “AINN “AINnN “AINN “ESN CLTD TVLOL 40 °AINN NWT-UVaE MAU AIAV TaHL NNVWZIGM NOINHOGL SALLISUAAINN S:TAVUSI LV SALLIAILLOV JONAIOS YALNdWOD JO AUVWAWNS 22 The School of Applied Sciences requires three years because theolo- gical studies are required concomitant with computer courses. All of its seven 1972 graduates continued toward their B.Sc. degrees at Bar- Ilan University, and will receive the degrees in 1973. The two schools offer courses in Programming, Operating Systenr; Data Processing, Systems Analysis, Information Systems and Numer- ical iccimediaia The Israel Institute of Productivity This Institute, which is affiliated with the Ministry of Labor has been offering courses in ADP Systems Analysis since 1964. The courses are given mainly in Tel Aviv, but recently have also been held in Jerusalem. The number of graduates by year is as follows: 1964 22 1965 . 28. 1966 21 1967 20 1968 60 1969 | 64 1970 74 oe 1971 . 58 1972 | 85 = 1973 (forecast) 150 oh . TOTAL 582 The Institute also offers its graduates follow-up seminars on such subjects as Operations Research, Remote Data Processing, Decision Tables, File Management, and others. In addition, the Institute has offered executive seminars on. ADP and Information Systems to over 200 local business executives and Government officials, as .well as 20 executives from 10 Asian and African countries in cooperation with the Ministry for Foreign Affairs; ILTAM and IBI-ICC. . ty A In 1972, approval was. granted for establishment of the Institute’s “Israel Center of ADP and Management Information Systems” as a joint venture with the U.N. International Labor Organization, with 25 sit $6 ot 8s og 3° 62 92 : =. 8Z ce. 9° ce. 91 L bl oS oz 9 oo 9 a rr ae v Or A: Ce ee 1330.1 ; SIDIAIN§ - : sa0usIdg . ae “ uoneonpy so ppaddy yevasy jo jooyss yessepeyy mayesnio{ | BIOL SL6I bL6l - SL61 — CL6T “ (SB99I04 aanyny , gp ysed)- soyenpeig JO "ON TB0L _ PAg “pug 1S] avok fq sjuapnis JO "ON ae 24 Summary The teaching of theoretical Computer Science in Israel has reached an impressively high level, both in quality and quantity. However, some practical aspects of the subject, such as Systems Analysis, Systems Programming, Real Time, and Hybrid Computing and Applica- tions are being neglected by most universities, despite the ever-increas- ing demand for practically trained professionals. As far as Systems Analysis is concerned, this shortcoming is being partially remedied through the courses offered by the Israel Institute of Productivity, the Semi-Academic Institutes, the Technion Extension Service, and by those various Government agencies which offer in-house courses to their employees. In addition, ILTAM’s seminars cover important advanced applications not dealt with elsewhere. Nevertheless, the situation in this area is far from satisfactory. Unless all universities include these subjects in their programs, we may expect continuation and intensification of the current shortage of practically trained people. D. EDP Education Activities in the Government Sector The following chart, which was provided by the Government EDP Committee, is a summary of the major educational activities conducted in that sector: E. Summary During the last year there has been a radical increase in educational activity in many sectors of our industry — by the computer installa- tions themselves, by computer suppliers, by the universities, and by ‘ various other institutions. However, the present situation still leaves a lot to be desired. We feel that the most pronounced deficiency is in the level of sophistica- tion and knowledge of Senior Systems Analysts, Project Managers, and ‘Senior Systems Programmers. 27 a budget of about $2 million, of which the U.N. contributes $900,000. From 1973 on, most of the above activities will come under the aegis of the new Center. Aside from enhancing existing activities, the Center is planning a series of new activities in cooperation with local and foreign professionals. ILTAM ILTAM has been conducting high level Computer Science seminars since 1968. Henceforth, these will fall within the framework of its “International Program for Advanced Studies in Informatics” (IPASI). These 1-2 week seminars are conducted in English by international teams of experts, mostly American, and usually in cooperation with a local university. They are intended for both Israel and foreign participants, and cover the most recent advances in Computer Science, emphasizing computer applications. ‘ Thus far, the following seminars have been held: Partici- Subject Date pants 1. Advanced Programming Systems Aug. 1969 70 2.. Advanced Programming Systems July 1968 60 3. Advanced Programming Systems July-Aug. 1970 75 4. Information Storage and Retrieval Sep. 1971 80 5. Computers in Medicine - Dec. 1971 80 6. Remote Data Processing Aug. 1972 50 7. DP Projects Management Oct. 1972 30 8. Design Automation of Digital Systems Dec. 1972 40 TOTAL 280 The following IPASI seminars are planned for 1973: Hospital Information Systems Time Sharing Advanced Systems Analysis Techniques Computer Applications in Urban Planning Computer Application in Civil Engineering Computer Aided Instruction Aun PWN > OL 19 9ST 6Ee G8S eT SLT Shr 96¢'T 1804, s10pea] 80T Tr 9T TL 86 T@ 9T 18 91% s190usIsog PY sysk[suy siu94shkg ae r a Saal ‘y10dai ay} uy UMOYS aSOY} adJAz aq A[quqord pnoar sain3yJ 18707 Dy} ‘papnjouyl s10A aSOy) JI ‘siojnduiod-lUJUL SuIsn suoNueysuy puv asuajoq Jo Ars} Uy} Aq pafkodwa osoy} apnpour you op zodar ayy Ul pejonb saingyy eyL ‘ALON 69s £S% 906 rs | a st 4 $8 ra vr 5% €s 09 a4 oe 0s u ( gt 8 9 9 er SOT tte 6b Lel «GG ost eS. 619 c6 9LT 98. ozt It 6I oF a 09 cg 6 S &% t 19 81z 8% Te 68 Sel 69T T09 06 zel—sE9T sob «SBR ' gzors8—stiéiSSSCOG ay geo oP ORRE PE BY a Sez i) a e3 ohne aR 8 gh - es¥% Ba g on SHE ive gia | 1 be | oO 1 E Fs TL6T £0& ce bL st +6 12s $038190dQ [euTUI8L, Y azagndui0g AIAV 138L ye13UaD UJOYIION 3 BIH ; uzayynos waresniat ‘ 4913810 quawuUIaA0y pextut oqnd pues [wuoneN saryIoyyNe [v0] qNIpeysiH azyeAlId drysioumo jo odAy, T330L 20114SIp pus diysioumo Jo odAy ‘youviqg d1WO0Uu0dg (sxayndwoo-luru Aq pus wo3sfs asusjoq 9Y} &q pefojdwe osoy} Surpnyoxg) LOIILSIG GNV dIHSYANMO AO AdAL ‘HONVUG DINONOOT Ad ‘GAIAOTAWA ATLOAUIG SNOSUAd 29 *(sayouviqg AV 118 Ul A[[enuus UaATT 918) *d}a SaSINOd OOT UBY SIO . *19Y4}0Z0}[V SjuBdNOJIed QP YZ Sasinod asAtsuayaiduiod Eg MOU [1]UN ‘satpoq 1eyj}O YZAA UOI}eIadoood uy *AYWATONPOIg IOJ ayNPWYsuy ay} YRYA UOT}eJadood ul JO Aq sasinoD e (YON) . ° oy wh @ x: - +k ° = °° QON., — xX ee xX e. (98d). ° = ® (YON) « — Xx e X “Fo: = 3 e =(0d9), — xX e xX e. X ° =, ® (YON) . = K = Xx e X ° = e —- — x e X o- a e. —-— e wap, — xX e x ° x ae es ee ee ae -[00 ess SoA e — — -epeH), 1e@ —— e x — 7 ~ =~ se -— = »* hes ~~ ° x: sp ncn ‘quate $194}0 si9y10 asinos ae asinog fit asinod JO/pue osinod JO/pue s:sINOD sJ0}NR{ Teas UY doos PML ssdoog TeUZOUI Bec yeursjuy pod a jeussjuy 1019 uy uj . . s}sAyeu Sasino) sxeurais s10}813d0Q sioWUBIZ01g san nd oP rs — pare ad LNAWNUFAAOD NI SAILIAILOV TWNOILVONGY dda Me HN "9 Sunnduog 289010;] asuayaq] “IS] “Jsu] “SU] [eUCTEN ‘Udy JURJUNODDY “UNWIWUOD JO “UIA, asuajaq jo ‘ulyy uoneonpy jo Axstulyy SODTAIOS Y] BY} JO SuIssoo01g eye onewony sululely, “YooL “ysuy ‘NO "YS2W “JJO *WUWOD ‘AIOS [IAID uonNnyysuy [291330 JUSTITIIAOL) 28 FORECAST AND SURVEY OF THE COMPUTER AND INFORMATICS INDUSTRY Chapter A The Computer Branch in Israel Today Al. Development of Computer Utilization Israel entered the Computer Era in the early 1960’s. In 1962, there were only six computers in the country, but in 1968 there were 100, and by the end of 1972 their numbers had reached 293. In a 1971 survey of the population/computer ratio, Israel was graded 12th in the world. Even though the growth in quantity is impressive, the usage figure is brought out more clearly by the fact that the number of computers in Israel grew by 32% in one year — 1970 to 1971 — but the annual rental fees for the same period increased by 56%. Paralleling the world tendency toward increased use of large computers at one end of the scale and mini-computers at the other, Israel’s move in this direction is obvious, as this table shows: During these five years, the number of computers in Israel grew threefold. The number of medium-sized computers remained virtually the same, and the number of small computers increased by only 70%. On the other hand, the: number of large computers grew tenfold, and that of the mini-computers grew threefold. The use of terminals was pioneered in Israel by the Defense Systems and the institutes of higher education, at the beginning of the 1970's. Civilian usage of terminals is rather limited, but they are found in a :small number of big industrial enterprises, the banking network, and tthe public sector. : According to information issued by the Bureau of the Automation Adviser at the Ministry of Commerce and Industry, IL. 270 million were spent in Israel in 1971 on Automatic Data Processing. This sum constitutes more than 1% of the country’s Gross National Product. The expenditure was divided thus: 31 eae eee ae es ee ee, Le ee ee ee Le ee ee ST OT TE A ‘ PERSONS DIRECTLY EMPLOYED, BY ECONOMIC BRANCH, ~ TYPE OF OWNERSHIP AND DISTRICT (Excluding those employed by the Defense system and by mini-computers) 1971 1972 Economic branch, 3 g a 4 : type of ownership Shu . S5 a and district 223 6 #25 a $28 8 #26 9 Bs& by S28 ES Psi bp S23 ES paz 28 328 E32 ¢ ces £2 sea Ess 2 O80 WE Ade Fag & Se6 hE gee FES Total 521 506 363 233 1,623 443 453 216 184 1,296 Economic branch Manufacturing 26 34 16 11 87 55 44 19 16 134 Food, beverages, tobacco, textile 7 11 4 4 26 Electric and electronic Equipment 8 16 9 2 35 Electricity, water, constr., public works 45 41 18 12 116 Commerce, real est. 35 17 10 9 71 33 17 7 8 65 : Transport, storage, communication 23 36 13 16 88 35 59 9 24 127 Financial institutions 49 56 27 9 141 59 61 11 17 148 Insurance i 9 3 3 26 Business service bureaus 136 109 76 710 391 105, 96 53 47 301 Government admin. services 63 96 125 57 341 Police, nat. institutes, 11 112 78 44 305 nat. insurance inst. 22 29 11 5 67 Local authorities admin. services 34 27 8 13 82 22 21 7 10 60 Education services 39 24 41 16 120 . Scientific services 23 8 9 5 45 63 43 32 18 156 Health, welfare, community . & welfare services 15 20 6 7 48 a Computers and Auxiliary Equipment IL117 million Manpower (programming, operating, etc.) IL113. million Materials (tapes, cards, etc.) IL 40 million TOTAL ; IL270 million Most of the equipment was imported from abroad, and the expenditure in foreign currency — about 50% of the total expenditure for equip- ment — was $10 million that year. About 5,500 people were employed in data processing in 1971. This represents about 0.5% of Israel’s work force. The figure includes systems analysts, programmers, operators, maintenance technicians, punchers, administrators, service personnel and salespeople, but not Table 2 EXPENDITURE ON COMPUTER USAGE BY VARIOUS FIELDS 1971 (Millions of Israel Pounds) Expenditure Division of Commulative in millions Expenditure Expenditure of IL. % % Government & Local Authorities: - 80 ° 29.4 29.4 Education & : Research 68 25.2 54.6 Industry, Construction, Electricity & Water Banks 64 23.6 78.2 Insurance 24 9.0 87.2 Trade 14 5.3 92.5 Transport & Communication 12 4.5 97.0 Health & Welfare 8 3.0 100.0 Total 270 100.0 Source: Bureau of the Administrative Automation Adviser, Ministry of Commerce and Industry. . : ‘neaing Sonsieis TeryUaD :201n0g ‘sasodind [01}U0d JOJ pasn siayndwiod apnjoul jou saop a1Qu} SUL + 00£ ; Se, * 3 p81 ray) siajnduiog [e0L ¢ . Er ee uowidoyenaq uMO 82 81 . Sl wajskg asuajaq oor 001 29% ool sol oor =. 8 ssajnduio URITIAID [BIO], 009 19 ee 6. , is wf. 6g , IW OL oz #S IZ te: 7 OE OE Se aE: jews 0z Ul gz £1 Iz 82 Pe 8 ee wNIpoW O00r = * Ie 8 1. 2° 8 +81 afte] sie ell ee ate Gen” eee | aseazouy UOISIA! ISIAI IStAl placa % CLO © ; OL6I 8961" S & acL6l-8961 “AZIS OL : ONIGUODOV SYALNMWOD ONISSAOONd VLVG: AO NOISIAIG “by 2 LEICLAR 32 The foundation of the computer industry in Israel was the research and development begun by the institutes of the Defense Ministry in the early 1960’s. In 1966, the civilian computer industry began in Israel with the establishment of ELBET COMPUTERS Ltd.; it’s mini- computer ELBET-100, which appeared on the market in 1967, was the first civilian product of Israel’s computer industry. The develop- ment of Israel’s new computer industry was bidirectional: Actual production of mini-computers, and the development of computer systems, of which data processing was only a part of the overall system. ; The total sales of the computer industry, including equipment, soft- ware packages and electronic systems components based on computer technique, was in the neighborhood of IL50 million in 1972, while the number of employees was estimated at about 1,000. By comparison, the professional equipment branch of the electronics industry (as opposed to the popular products branch) sold about IL500 million business and employed about 9,000 people that same year. It should be borne in mind that the tremendous effort in the area of research and development currently being made will bear fruit only in the coming years. Military Usage In the Israel Defense Forces (IDF) the use of computers for military purposes, e.g. as part of weapons system, is increasing. A consider- able part of the IDF’s needs in this field is locally produced. Some systems (and parts of systems) are manufactured on the basis of rights acquired from the original manufacturers which, in many cases, are improved and adapted to the specific requirements of the IDF. Other systems are developed and produced in Israel. Computer production for the Defense System is constantly growing; it represents a major portion of the industry’s output, and its total value is tens of millions of Israel Pounds per year. Production for the military has been an important, if not decisive, factor in the devel- opment of Israel’s computer industry: ’ 1. The Defense System is willing to assure a market for a product of proved technological standards, which can be ’ produced at reasonable cost. 35 een OT en programmers in plants manufacturing data processing sets. Over 2,000 of those employed are professionals dealing with programming or operation; 1,600 of these work in civilian institutions which oper- ate computers. Israel’s main use of computers is service to Government and local authorities; education, research, industry, construction, electricity and water companies also contribute heavily to their use. A2. The Software Industry The 25 companies constituting today’s software industry employ some 350 professionals — about 16% of all the professionals employed in Automatic Data Processing. The output of the software industry is estimated at about IL15 million. ' The growth of the software industry, like that of the entire computer field, is quite rapid. In 1971 the number of professionals in software increased by about 25%. Among the software houses, two employ more than 30 professionals; three employ between 20 and 30; nine houses employ between 10 and 20 professionals, and the remainder employ less than 10 professionals each. Half of all the professionals in the branch are employed by the five largest software houses. Although service is the main activity of the software houses, a number of successes have been scored in the development of software packages. At present, software exports are small. But the houses are aware of export means and potential, and seek to develop export which in addition to profit will serve as a catalysts for the elevation of profes- sional standards. ; A3. Israel’s Computer Indusiry Today The first Israeli computer, the WEIZAC, was developed at the Weiz- mann Institute in the mid-1950’s for scientific use, and was operated at the Institute itself. It was followed by GOLEM “A” in 1964 and GOLEM “B” in 1971; again, both were scientific computers for home use. Although the computers developed at the Weizmann Institute were, technologically, among the finest and most sophisticated in the world, they never were produced commercially. 34 ' integral part of larger systems — are currently being produced here. remote control systems — which contain data processing units as an Great efforts are being made in the field of R. & D. Israel firms as well as Israel-based firms from abroad are diversifying their products and directing their energies to broadening their economic base. De- velopment of systems for specific purpuses is one of the newer fields of activity to which much thought is being devoted. la Chapter B Development Trends in the Computer Industry for the Coming Decade Bi. The Growing Use of Computers in the Coming Decade A basic assumption is that the number of clients of computer services will increase in the coming decade, as will the kinds of clients, to include most of the medium- and large-sized industrial enterprises, as well as the country’s agricultural sector (especially kibbutzim), commerce, insurance, transportation, construction, welfare, public services, etc. The use of the computer for decision-making, administra- tion, production, marketing, science and military purposes will increase because of a number of factors, including these: 1. The cost of computer services will gradually decrease as a result of technological improvements which will reduce pro- duction costs; new techniques will increase efficiency; pro- gramming processes will be simplified through the develop- ment of new programming languages; the use of software packages will increase, as will computer memory capacity. .2.. Expanded use of terminals and teleprocessing will increase the computer’s scope of applicability. 3.. -The development of new dedicated systems and the discovery : .of new applications will necessitate the use of computers as a cheaper alternative to similar purposes with conventional systems. ’ 4, -The lack of manpower and its constantly rising cost will necessitate an increase in automation in the areas of produc- tion, service and administration. 37 2. The decision to develop a military system means, also, the development of data processing units linked thereto. 3. Questions of prestige, marketing and supplier maintenance _ are secondary in military weapons systems. 4, The entrance of foreign companies into Israel production is greatly linked to their desire to acquire part of the growing Defense System market. Certainly the reputation of the IDF as a most sophisticated client will add to the recognition of these companies as houses of high standards. 5. Production and development of IDF systems serve as a basis for conversion of certain military applications to uses in the civilian market. 6. The Defense System is using more and more civilian prod- ucts, particularly in the field of teleprocessing. 7. The Defense System (especially the Air Force) has pioneered the use of microelectronics and has thus led to the aware- ness of advanced computer technologies. 8. Know-how acquired through the Defense System can be used in civilian applications, particularly by those who have gained familiarity and experience during years of work for the IDF. Civilian Usage Production supplied to the local civilian market by the Israel com- puter industry has been very limited. While (as previously stated) local usage is quite heavy, most of the equipment in use today is imported. Most of the products on sale in Israel by local industry have been developed either for export or for the Defense Forces. The major effort of the local industry is directed toward export. Presently in production in Israel are a mini-computer, data capture systems, teleprocessing equipment, terminals and disc memories. Fur- thermore, medical systems, measuring equipment, direct control and 36 c. Natural increase in output-per-employee, especially in view of the fact that the industry has absorbed a large number of people in a short period of time, and many of them have not yet reached (through experience) their optimum efficiency. d. As equipment grows increasingly less expensive and man- power continues to go up in cost, there will be a growing tendency to prefer computers to manpower. Table 3 ESTIMATE OF EXPENSES FOR AUTOMATIC DATA Total expenditure for computers Total expenditure for equipment Central Equipment Special Equipment and Teleprocessing* (Expenditure on equipment in $ million) Manpower and Related Costs Materials and Other Expenses PROCESSING 1971-1981 (IL. millions @ 1971 prices) 1971 40 1976 700 370 320 40 (75) 230 100 1981 300 (220) 550 250 * Not including military systems. Average Yearly Increase Rate % 1976 1981 1981 compared compared compared with with with 1971 1976 1971 21 22 22 25 25 25 23 20 22 63 55 60 (25) (25) (25) 15 15 15 20 20 20 The value of equipment in Israel in 1971 was about $100 million. The value of data processing equipment in 1976 is forecast at about $350 million, and in 1981 at about $1,000 million. 39 nan ten A LO LL - mene reece nee NN AYA AN pe aR TS EES 5. The more conservative administrators who have so far resisted the use of computers will be motivated to adopt their use because of the necessity to compete with more sent and progressive enterprises. With this assumption, then, the rapid develompent of computer usage is expected to continue at the rate of 20-25% per year. This estimate is significant; it means that computer use will triple by the end of 1976, and will grow by a factor of 9 or 10 by the end of the decade. These estimates are supported by predictions for European develop- ment, where the monetary scope of computer usage will have grown 1,000% in the decade from 1966 to 1975 inclusive. In 1965, European computers were valued at $5,000,000,000; their predicted value in 1976 will be about $50,000,000,000. This increased activity has not been fully translated into monetary terms in the present structure of the industry. More efficient use of existing computers is expected. The additional outlay of funds required to trade a.small computer for a large one is usually substantially less than the benefits obtained from the increased performance potential. Furthermore, prices of equipment on the world market are constantly decreasing. On the other hand, because of changes in activities in the next decade there will be a tremendous increase in peripherals such as terminals, P.O.S. and other special-purpose equipment. Because this relatively expensive gear has components of an electro-mechanical nature and no decrease in production costs is expected at the mechan- ical end, no drastic price drops are anticipated in the foreseeable future. During the coming years, manpower costs are expected to increase at a slower pace than that of the expansion of the industry. This may be anticipated for the following reasons: a. A relatively slow increase in: the number of programmers is” anticipated as a result of far-reaching improvements in pro- gramming systems — for example, the use of program pack- ages. b. The tendency to switch to large computers will reduce the number of operators needed, and computer operation will be more efficient. 38 The foreign airlines have approximately 80 branches in Israel, with about 30 counters at Lod Airport. These companies will probably operate more than 100 terminals. El Al has not yet formulated its final policy on terminals, but it looks as though there will be no choice but to install terminals in many travel agencies, large hotels, automobile rental agencies, and the offices of any large organization — government, national institutions, universities — whose staff travels frequently. This development will be brought about by competition among the airlines, since it is obvious that a travel agency with a terminal facility for booking flights will prefer this convenient procedure to the present arduous one. It will be worthwhile for the airlines to rent out terminals or even lend them, if they expect to increase sales. Large travel agencies and hotels will operate several terminals linking them to a number of airlines, while smaller ones will be linked to just one. Today there are about 250 travel agencies; many more are ex- pected to open by the end of the decade. It is estimated that the air passenger system should have about 800 terminals by 1980, and offices dealing with airlines about 500. The freight transport business will also make use of terminals. To begin with, terminals have been put into use at major Customs offices; all Customs offices will have terminals when the system is completed. Many customs brokers want to install terminals in their offices to shorten clearance procedures. At a later stage, the Port Authorities, transport. companies and bonded warehouses will rely on terminals for their activities. Finally, a complete computer system handling all sea and air transport will be set up. Plans to senbactne land registration and corporate registration, and the establishment of a system for the retrieval of legal information by. computer, will convince lawyers, legal organizations, auditors and mortgage companies to use terminals in order to maintain an econo- mical, rapid and permanent contact with data banks. The fact that terminals can be used for typewritten material needing repeated correc- tions and proofreadings — such as contracts, memoranda, correspon- dence, etc. — will boost the sale of terminals. 41 oer a EIEIO GE CROLL CATED ICO CCN NL COL ALLL A Aas eee aR EES TE EEO TEE In the coming decade a greater use of large computers and mini-com- puters is anticipated. Small- and medium-sized computers will be replaced by large ones or by terminals which will be connected to computer centers. The use of mini-computers will be stepped up, particularly for operations in limited fields such as production control and accounting. However, large computers will replace mini-computers for general use. The principal changes in data processing anticipated in the next ten years will be in teleprocessing and in the transition to On-Line Systems. Integration of the computer into the field of administration is inevit- able, and will be extensive. Also inevitable will be the greatr use of terminals as man depends more and more on the computer for ad- ministrative and decision-making applications. A revolution in teleprocessing is foreseen in the coming decade. All branches of the economy will make use of terminals. For example, banks and their branches will be connected to computers by means of terminals, thus easing the workload of the staff and con- tributing to improvements ranging from client services to top-level policy. Today there are about 820 bank branches; these should increase by 30% during the next ten years to about 1,100. Since management and larger branches will need several terminals (even though one may suffice a small branch), it may be safely assumed that banks will require at least 1,500 terminals. The field of civil aviation in Israel provides a good example of increas- ing dependence upon terminals. At present, airlines depend upon terminals for the entire system of booking and boarding-control. In Israel terminals will be introduced in 1973 when El Al completes construction of a control system for passengers boarding at Lod, using 42 terminals. El Al also plans to set up a system of 150 to 200 ter- minals for bookings. ; El Al’s terminal system forces foreign airlines to follow suit. The technical problems should not be difficult to overcome, since these companies already have terminal systems in other countries. Activating the Satellite Communication Station at Emek HaEla in Israel estab- lishes an efficient link with computer centers throughout the world. (As a start, El Al intends to use BOAC’s computer center in London.) 40 The wide use of terminals and dedicated equipment expected in the next ten years provides a firm basis for setting up production systems for Israel’s computer industry, which will supply part of the local demand and on this basis will also compete in the international market. B2. Trends in the Development of the Software Industry The software industry will continue its rapid development in the next ten years, with its main activity remaining the supplying of software services to Israel’s computer users. The industry is expected to enter the export field in the areas of software packages and service, as well as expanding local supply in these areas. The rate of increase in the number of workers employed in the soft- ware industry is greater than that in the EDP branch, primarily because the software houses have an advantage in the competition for professional manpower — manpower which is and will continue to be in short supply. The predicted growth rate of about 15% per year will result in effectively quadrupling the present work force over the next decade. Table 4 TRENDS IN THE DEVELOPMENT OF THE SOFTWARE INDUSTRY IN ISRAEL Average annual 1971 1976 1981 growth rate in % Production in the Software Industry (IL. millions, 1971 prices) 15 35 85 20 Number of professional workers in the Software Industry 350 850 2,100 . 20 Number of professional workers in the EDP branch 2,100 4,200 8,400 5 Professional workers in Software as a percentage of total professional workers in the branch 16. 20 25 seasricc ys In the insurance business, terminals could contribute to efficiency and toward the easing of workloads. Furthermore, they would provide management with a simple and direct method of supervising branches and agents more closely. Terminals will be used for acquiring new business, facilitating claims procedures, investigating, accounting, and many other activities. In the initial stages, terminals will probably be used for control and supervision, and particularly for inquiries. At this stage, about 100 terminals will be required by the insurance companies. The use of terminals in other fields, especially in sales, will increase to 400-500 by 1980. In the Government sector, 300-400 terminals will be in operation by the end of the decade, mainly in administration. This factor will bring about changes in administrative concepts, which in turn will result in the use of more terminals. It is reasonable to assume that eventually the Government will operate double this number of terminals in its offices. The Defense System operates a considerable number of terminals both for direct military use and for administration. It is installing many more terminals for these purposes. Haim Sheba Hospital (Tel Hashomer) has issued a tender for the in- Stallation of a terminal sytem; local authorities, civil engineers, architects, universities, and reasearch institutes will all need terminals. In light of the developments heretofore considered, there should be about 10,000 terminals in use by the end of the decade. The use of computers for special purposes will also increase quite rapidly. For example, many organizations now using mechanical punch- clocks will convert their operation to EDP systems which will transfer data to computers directly or will store them on tape for end-of-month use. Electronic cashiers — in reality “point-of-sale” terminals — will be used by commercial supply networks, wholesale and retail. Similar systems will be used in production, management, time and motion studies and quality control, and even supervision and remote control of production processes. Dedicated systems will be utilized in such additional fields as med- icine, communications, education and agriculture. 42 usage of those products which enjoy a rapidly growing demand, pro- viding, of course, that there is a reasonable industrial profitability involved. The world market for computer products is already huge, and is growing by leaps and bounds. Therefore, the possibility of acquiring a small slice of it — which can be of great significance for Israel industry — is increasing. It is the responsibility of the computer indus- try to ascertain the areas wherein the know-how and capacity exist to manufacture such products in Israel so that they will be economically viable and able to compete with the products of international manufac- turers. Marketing and service expenses are the bottleneck in Israel’s develop- ment of the foreign market. Such expenses abroad are a heavy burden for the small companies existing in Israel. However, technological developments are expected to reduce service expenses and, concomi- tantly, reduce the extent of foreign marketing problems. Chapter C The Future of Computers in Israel Cl. Future Production The computer industry in Israel is at present predominantly engaged in teleprocessing, data entry, mini-computers, dedicated systems for data processing, and data processing units as part of larger systems. It appears probable that these efforts will continue into the future, as it appears unlikely that large computers will be independently manufactured in Israel. In order to penetrate the large computer field, it is necessary to manufacture for a foreign company, which will either establish an assembly plant in Israel or buy sub-systems especially produced for it. The chances of one of the giant firms entering pro- duction in Israel are slim. Technological developments in the component field result in considerable savings in computer production manpower: this diminishes the chance of Israel computer production even more. In fact, international firms are cutting down the number of computer- assembly enterprises. The increased use of teleprocessing and of dedicated systems will characterize the development of computer usage in the coming decade. 45 All factors considered, the software industry is expected to grow over the coming ten years at a rate of about 20% per annum. Parallel to this development in the entire branch, there will be an increase in the dimensions of its active firms. If we assume that the present situation will obtain — i.e., the five largest houses will con- tinue to employ half the total workers in the software industry — then the average number of professional workers in these companies will reach about 100 in 1976 and about 200 in 1981. s Companies of such dimensions will be capable of expanding their activity to include development and export of software packages. There has recently been an upsurge in the development of software packages, and a number of companies have begun to deal successfully in this field. Several software packages have been developed, some of which have already been sold abroad. The Israel Government now participates in development costs for software packages to the extent of 25% through R. & D. grants. There seems to be a movement at present toward changing the form of Government support in the field of software package development. Thinking tends to center around a loan of 50% of development costs (rather than an outright grant of 25%), on very comfortable terms, with the stipulation that the Government would considerably ease conditions of repayment or even cancel them entirely should the pro- ject fail. ’ To summarize, then,-steady growth is anticipated in the software industry, particularly in its export sector. Expansion of software houses, the channeling of resources into development of software ‘ packages — whose foreign sales potential is greater than that of soft- ware services alone — as well as government support of the export of consultant services which began in 1972, will all be factors con- tributing to the probability of success in Software Industry exports. B3. Tendencies in the Production of Computer Systems Interesting production possibilities have been opened for Israel’s computer industry by recent developments in both technology and 44 Table 5 ACQUISITION AND USE OF TERMINALS 1976-1981 New Acquisitions Total Acquisitions Monetary Monetary Units Expenditure Units Expenditure IL. million IL. million Up to ; 1976 1,000 20 1,000 20 1977 600 12 1,600 32 1978 1,000 20 2,600 52 1979 1,400 28 4,000 80 1980 2,400 48 6,400 128 1981 3,600 72 10,000 200 Total sales might amount to IL250 million if one takes into considera- tion the exchange of obsolete equipment, depreciation, and the cost of dismantling. It is important to stress the fact that most acquisitions will take place toward the end of the decade, resulting in a sales volume which will justify local production of terminals. The manufacture of teleprocessing equipment stands a very good chance of commercial success. Even though it is presently exposed to competition from imported products, it is in considerable demand on the local market. It would be desirable for the government to create conditions favorable to Israel industry, so that the majority of terminals sold here would be of local manufacture. Most of the punch-card units in use will be replaced by key-to-tape and key-to-disk systems. The process has already begun. Today there are about 1,500 key punch units in Israel; assuming that their number will increase concomitantly with the growth of activity in the com- puter branch, 15,000 can be expected to be in use by the end of the decade. However, when one considers the much greater efficiency of ‘computerized key-to-disk systems, one might estimate the number of data-capture input units to be nine or ten thousand by the end of the decade. At an average price of IL10,000 per keyboard (including 47 C2. Potential Demand for the Israel Computer Industry The Israel Computer Industry has three main potential clients: 1) The Defense System; 2) local civilian demand; and 3) export. markets. 46 1. The Defense System In the coming decade, Defense System purchases will amount to many millions of Israel Pounds per year. Furthermore, there is a tendency to export a considerable part of the production of military systems, since products developed for the Israel Defense System are in great demand abroad, and their direct overseas sales amount to tens of millions of dollars annually. Exports of military communication equipment amount to more than $10 million per year. Military equipment produced in Israel enjoys an excellent reputation abroad, since the IDF is known to be an exacting client. Local computer production for military systems is in its infancy, and at this stage exports are negligible. Permis- sion to export recently developed weapons systems (or those currently under development) will considerably step up exports of militarily oriented computers. The Defense System will be an important customer for civilian hardware such as teleprocessing and data-capture input devices. Discussion of this side of Defense demand is included in the area of local civilian demand. -2. Local Civilian Demand This demand, currently not very large, will expand ccrncideeiily in the coming decade. Teleprocessing, data-capture input systems and dedicated systems will be the main targets of the increased requirements. According to one forecast, about 10,000 terminals of various kinds will be in operation in Israel by the end of the decade. Cash outlay for acquisition of these terminals and their auxiliary equipment — modems, multiplexers, etc. — is estimated at 1L20,000 per terminal (average price including auxiliary equip- ment), or a total of more than two hundred million Israeli Pounds. The following table demonstrates the possible development of local sales of terminals during the years 1976-1981: products. Local production has a considerable advantage in the field of special systems, since it is geared to the specific needs of the client under conditions which exist in Israel. The use of data processing units in electronic systems is constantly growing. By the end of the decade many electronic products will include data processing units. Presently manufactured here are medical and measuring electronic systems with ADP units included. Control and remote-control units with integrated data processing units are in various stages of development and production. The scope of the tremendous growth in the demand for computer equipment (particularly in Europe) creates a serious potential market -for Israel products. Europe has the potential to become Israel’s main export outlet, providing that Israel industry will expend the effort necessary to bring this about. Israel, as shown below, has a number of _ advantages over her competitors for the European market. 3. Export Markets 1. Our geographical proximity to Europe will facilitate com- petition with Japanese and American manufacturers in the field. . ‘ 2. The developments in the international monetary field increase "the relative advantages of Israel’s exports. The chronic sur- plus in the Japanese and German balances of payments will necessitate the continuation of the series of changes in ex- . change rates, changes which make Japanese (and most Euro- pean) exports dearer, and at the same time make Israel ex- ports relatively less expensive. Japanese exports became dear- er by some 25% in the 1971-1973 period due to changes in the currency rates. . 3. The effort to reduce the structural deficit in Israel’s balance of payments demands a policy to increase the revenue for Israel exports. Such a policy will make exports more prof- itable and increase their competitiveness. 4. Israel is advancing toward a free trade agreement with the European Market, including Customs protection against Jap- anese exports which the Europeans fear. It is not impossible that, should a free trade agreement be signed, Israel would 49 its share in the data processing unit, disk drive and magnetic tape units), the. expected sales in Israel might amount to IL100 million during the next ten years. Data-capture input systems are presently manufactured in Israel, and it may be assumed that local goods can satisfy a considerable part of Israel’s demand for such systems. A big demand is expected for cash registers (P.O.S.) and punch clocks to replace the mechanical ones presently in use. The advantage of electronic clocks is that they record the In and Out times directly onto a magnetic tape which is transferred to the payroll computer directly, thus eliminating expensive manual processing of personnel cards. Point-of-sale computers will be used not only by large marketing networks, but also by smaller ones, since optical-electronic reading of computerized price labels will save cashiers a tremendous amount of time; in addition, the machines will be much more efficient than cash registers on which each price must be punched by hand, the department punched on a separate key, and the whole registered separately for each item. These P.O.S. terminals will also be useful for inventory control and ordering; but even if the user doesn’t choose to control his stock by computer, the machines will pay for themselves by their efficiency as cash registers. In spite of the large increase expected in the use of commercial mini- computers, the local market is not sufficiently large to support the local industry. The wide array of computers and programs, which have to be changed for each task, and the expensive peripherals which are currently mainly mechanical (e.g., accounting machines), will curtail local demand for mini-computers. However, it has been con- clusively proved that when mini-computers are manufactured for export, they stand a good chance of selling on the local market as well. Special purpose computer systems also will be very much in demand, but much depends on the manufacturers’ perceptiveness in anticipating the needs of their potential clients, in various fields of the economy. There will be a growing demand for control systems for industrial production, quality control processes, traffic flow, power units, water allocation, etc. A combination with the advanced agricultural system which exists in Israel opens up a new field for development of original 48 ’ — Application-oriénted computer systems — Computer communications systems, including terminals — Peripherals C3. Production Forecast for the Coming Decade The forecast for computer industry production in the coming decade is based on a number of sources. A survey was conducted among computer companies; they were asked, inter alia, to estimate their output and exports for 1976. Hence, the data supplied by the firms are the bases for the forecast up to that year. These data were analyzed from the aspect of demand; it was found that they do not refute the expected local requirements. It may be fair to assume that exports in 1976 would amount to $22 million. Devlopments in Israel’s electronics industry in recent years show that the growth rate forecast for the computer branch is reasonable. Electronic industry output grew from 1966 to 1971 by 40% per year, amounting’ to IL440 million in 1971 compared with IL85 million in 1968. Exports of electronic products grew from a million dollars in 1967 to $25 million in 1972 — an average yearly growth rate of 85%. For the years 1976—1981, the important factors considered were those capable of limiting the growth of the industry: Money, markets and manpower. , The market does not constitute a significant limitation because we are talking about minute parts of a large market — from which only a small part will be taken by local industry — and a huge world market. The potential demand for computer-related products is tremendous; therefore the market does not represent a limitation. It is clear that difficulty in penetrating the market does exist, and that the price of entering the market will be high, but this is not a real deterrent. Assuming that the industry will be profitable, there will be few limitations on monetary resources, because money problems do not exceed those accepted as normal in other branches of the economy. : This subject will be dealt with later on in this report. What remains is manpower. Again assuming that the industry will 51 become an important center of production for American companies which will market in Europe. In Israel, these companies will enjoy skilled manpower on a high level, a number of benefits granted under the Law for the Encourage- ment of Capital Investments, and Government participation in research and deyelopment expenses (see Appendix). These developments will increase the chances of the Israel computer industry to penetrate foreign markets. Israel offers a few additional advantages which make it easier to achieve production under conditions of economic profitability: 1. Skilled manpower at a wage level relatively lower than those in Europe or America, particularly in the field of R. & D. This is significant because R. & D. expenditure constitutes about 10% of the turnover of a mature enterprise in the computer industry and even more in a newer enterprise. 2. Government participation in a considerable portion of R. & D. expenditure. 3. Semi-skilled manpower (technician level) at a relatively low wage level. 4. Benefits from the Law for the Encouragement of Capital Investments. The main benefits are: — Grants and low-cost loans for financing investments in buildings and equipment. The total of the loans and grants is between 50% and 70% of the total investment in permanent property. — Easements of direct and indirect taxation. — Recognition of accelerated depreciation. The lack of a large local market is one of th e main factors hindering development of Israel’s computer ndustry. According to a forecast, _ production for the local market will reach about half of the total output by the end of the decade. However, a great part of production for local consumption will be earmarked for Defense Systems and for the Israel Electronic Industry. The special fields best suited for Israeli exports are: 50 Local sales will rise from IL 40 million in 1972 to IL 140 million in 1976, with the main increase taking place in the sales to the civilian sector. Exports in 1976 are expected to reach $22 million, according to the information received from the companies surveyed. The output of the coinputer branch in 1981 is expected to approach IL 700 million, with output expected to rise by 22% p.a. between 1976 and 1981. During that period local sales will increase by 14% p.a., with the main increase taking place in the civilian sector, where purchases will rise by about 20% p.a. In 1981, exports will amount to about $85 million because of an expected rise in exports of 30% p.a. between 1976 and 1981. En- trance of Israel’s computer industry into the world market will open up a very high export potential because of the immense scope of the market and its tremendous growth rate, particularly in Europe. Demonstrated below is the development of the computer industry in terms of different export alternatives. Table 7 DEVELOPMENT OF THE COMPUTER INDUSTRY BETWEEN 1976 AND 1981 IN TERMS OF DIFFERENT EXPORT ALTERNATIVES (IL. million / percentages) Annual Local Market Exports Total Output G owth 1976 1981 1976 1981 1976 1981 Rate ANNUAL 25% 140 270 110 330 250 600 20% EXPORT 30% 140 270 110 410 250 680 22% INCREASE 35% 140 270 110 490 250 760 25% : 40% 140 270 110 390 250 860 28% 50% 140 270 110 830 250 1,100 35% An annual increase in exports of 35-40%, i.e. an export figure of 100 to 115 million dollars in 1981 seems to be the maximum pro- duction attainable by the computer industry. The main barrier to greater development is the manpower shortage; an increased pro- duction rate will lead to manpower shortages in the areas of adminis- tration, administrative technology, marketing, service, and R. & D. 53 be profitable, it seems that manpower will be the final deciding factor which determines the size of the industry. The main difficulty in the development of the computer industry will be the realization of the production forecast for 1976, a scope of production involving liberation from dependence on the military market, and breaking into the civilian market. Should the forecast indeed be realized, there is a high probability of achievement for the 1981 goals. The following table shows turnover until 1976, plus what seems achievable by 1981: Table 6 DEVELOPMENT OF PRODUCTION IN ISRAEL’S COMPUTER INDUSTRY 1972-1981 (at 1972 prices) Average Annual Growth Rate 1976 1981 1981 1972 1976 1981°- compared compared compared with with with 1972 1976 1972 Dutput : (IL. milion) 55 250 600 416% 20% 30% Thereof for local market (IL. million) 40 140 270 37% 14% 24% . For export : (IL. million 15 110 330 65% 30% 411% Share of export in output 27% 44% 55% Export : ; ( $ milion)* 7 «3 22 65 65% 30% .. 41% Employed persons 1,100 3,100 4,800 ‘ Output per employee -CIL, . thousand) 50 80 125... 12% 9% 10% * Calculated on the basis of IL.5.10 per export dollar as an effective rate of exchange. The production forecast for 1976 is based on estimates of firms pres- ently active in the computer industry. Whereas in 1972 output amounted to IL 55 million in 1976 it will amount to IL 250 million. This represents a 46% p.a. growth rate, which may be attributed mainly to the extensive R. & D. activities undertaken in the recent past. We shall witness the results of these activities in the near future: 52 The industry comes under the Law because most of its production is currently designated for the Defense System, and in future the major part of output will be exported. From total investments amounting to IL260 million during the decade, the industry will be given loans and grants at low interest for long periods of time. Production, as predicted, should not encounter financial difficulties other than those common to all branches of industry in Israel. In the coming decade, financing should follow these patterns: a. Physical investments will be financed mainly by Govern- ment agencies. b. Investments in Research & Development will be partly financed by the Defense Ministry (which commissions devel- opment and manufacturing of products), and partly from research funds at the disposal of the Ministry of Commerce and Industry. The participation budget for R. & D. amount- ed to IL9 million in 1972; in the planned 1975 budget, IL15 million is earmarked for this purpose. A considerable increase may be expected in the years to come. c. Existing electronic companies will invest part of their re- sources in the computer industry in order to establish a foothold in the field. d. Own capital sources: raising of funds in Israel and abroad, depreciation funds, and accumulation of profits. e. Credits for export financing within the framework of export funds. f. Regular bank credit. Despite the forecast’s being based on many assumptions, it stands a good chance of materializing. Its significance lies not so much in the supposition that the scope of production in the computer industry will indeed be IL700 million by 1981, but in the realization of the trends which the forecast tries to describe. The forecast of production volume seems to be reasonable from the aspect of Israel and foreign demand, as well as from the standpoint of limitations of production factors — labor and capital. 55 The rapid growth of the computer industry, particularly its expected growth up to 1976, is due to the great efforts that have gone (and will continue to go) into R. & D. Hence a high-level scientific and professional foundation has been laid which will guarantee a much higher production situation. In the years ahead, manufacturers in the computer industry will not need to engage many more senior scientists and professional people. Most firms do not anticipate difficulties in enlisting such manpower during the next few years. The big electronics companies in Israel attach great importance to their entrance into the computer field, and they will allocate their best resources — human and financial — to the development of production in this area. Regarding lower-echelon personnel, the industry will face the same difficulties as any other industry in times of over-employment. But the present relatively small dimensions of the industry and the firm decision of companies to establish a foothold in the field will help achieve the estimates predicted in the forecast. Physical investments in the computer industry during the coming decade have been estimated at IL260 million. The estimate was made on the basis of the capital/output ratio of the entire electronics industry; a number of manufacturers in the computer industry have been consulted and agree with the figure. Table 8 INVESTMENTS IN PHYSICAL ASSETS IN THE COMPUTER INDUSTRY 1972-1981 (IL. millions) 1972-1976 1976-1981 1972-1981 Additional output 195 450 , 645 Capital/output ratio 0.4 04 - 0.4 Gross investment in physical assets 80 180 260 The computer industry will be entitled to concessions granted in. accordance with the Law for Encouragement of Capital Investments. 54 COMPUTER-RELATED ELECTRONIC ENTERPRISES AEL Israel Ltd. ' Bnei Brak: 48 Mivtza Kadesh Street, Tel. (03)782141, Telex 033-553 General Manager: Z. Shalev Computer-related Activity: Digital and Control Circuitry. BETA Engineering and Development Ltd. Beersheba: Hashalom and Hacharoshet Roads, P.O.B. 98, Tel. (057)5108, Cable Address: BETA BEERSHEBA General Manager: Omri Talmon - Computer-related Activity: Digital Systems and Interfaces. BITCOM, Ltd. Rehovot: Kiryat Weizmann, Science-Based Industrial Park, P.O.B. 1299, Tel. (03)954340 Directors: M. Sayar, Y. Zisapell . Computer-related Activity: Electronic and Electro-optical Data Systems. ELSCINT, Ltd. Haifa: Science-Based Industries Center, P.O.B. 5258, Tel. or 522872, Telex 04-654 - ‘Managing Director: Dr. A. Suhami Computer-related Activity: Scientific be aia in conjunction with Computers, ELTA Electronic Tredusivies Ltd. Ashdod: P.O.B. 330, Tel. (055)31155, Telex 03-807 Managing Director: P. Makleff, Eng. Computer-related Activity: Printed Circuits, Modems, Intelligent Terminals. ELTEK Ltd. Haifa: P.O.B. 5390, Tel. (04)729018, Telex 04-774, Cable Address: ELTEK HAIFA 57 COMPUTER MANUFACTURERS (HARDWARE) ALEE Research and Development Ltd. ~ n”ya mn») apna ndx Kiryat-Chaim: 17 Anna Frank Street, P.O.B. 94, Tel. (04)- 729188/9, Cable Address: ALEF QIRYAT MOTZKIN Managing Director: Dr. A. Shani Main Activities: Development and production of special purpose computers; development of original instruments in medical electronics; switching networks in communications; com- puter based systems for check out, event recording and similar applications; scientific sania mainly in the field -of pattern recognition. Number of Employees: 60, of whom 15 are engineers and university graduates. ELBIT Computers Ltd. nya Dawn padK Haifa: Advanced Technological Center, P.O.B. 5390, Tel. (04)522211, Telex: 044- 224, Cable Address: ELBIT HAIFA Managing Director: Uzia Galil “ ce ’ Main Activities: Development, manufacturing and marketing of mini-computers, data preparation systems,- military and industrial computer systems and other digital products. Number of Employees: 550, of whom more than 120 are en- gineers and university graduates. Elbit Computers is a subisidiary of Control Data Corporation. SCIENTIFIC Data Systems Israel Ltd. Haifa: Tovim Street, P.O.B. 5101, Tel. (04)64589, 4241/5 Telex: 04-633, Cable Address: SCIDATA’ HAIFA : ee Managing Director: Dr. H. Weinstein ©. Ry Seep # Main Activities: Development, meneleetiing: and marketing; primarily for export, of computer ‘memory ‘systems’ and other electronic and electromechanical peripheral epee for computer systems. Number of Employees: 90, of whom 10 are engineers and. university graduates. Ws Se a 56 LIST OF SOFTWARE HOUSES ADVANCED TECHNOLOGY LTD. n’3 NoTPNa WrbI2D Tel Aviv: 8 Sderot Smuts, Tel. 442697, 225224 Director General: Meir Burstin Main Activities: Systems analysis, organization, analysis and , planning, management systems, operations research and Statistics, application programming and systems program- ming, command and control, information technology, com- puter aided design. Professional Employees: 25 COMBIT (Israel) LTD. nya (ORI) DADIP Ramat Gan: 26 Herut Street, P.O.B. 2577, Tel. 795538 Directors: Z. Ettinger, N. Gertner Main Activities: Systems analysis, operations research, consul- tancy, O. & M., design and programming for computer systems. Professional Employees: 7 COMPUTERS AND ORGNIZATION LTD. n7’y3 IAN) DAWN Tel Aviv: 38 Frishman, Tel. 244686 Directors: Y. Neeman, M. Livnat ' Main Activities: Feasibility studies, systems analysis, design and programming of information systems in the administrative and industrial fields, installation of ADP systems, including in-house training. Professional Employees: 10 COMSYS COMPUTER SYSTEMS AND SOFTWARE LTD. ”’Y3 7351N1) DAWN Nid yy Oo 1p Haifa: 10 Jerusalem Street, Tel. 667500 Director: P. Rogoway Main Activities: Consulting, systems analysis, design and devel- opment in the areas of remote computing, information systems, basic software, mathematical modeling, and mini- 59 a aa ’ General Manager: G. Kirschner Computer-related Activity: Printed Circuits. IAT — Israel Applied Technology, Ltd. Rehovot: 185 Herzl Street, Tel. (03)925025 General Manager: Eliezer Sheffer Computer-related Activity: Digital Electronic Systems, Computer Interfacing, Real-time Data Systems. ISRAEL AIRCRAFT INDUSTRIES Ltd. — Plant B Yahud: Industrial Zone, Tel. (03)753171-2-3-4, Telex 03-114 ISRAVIA, Cable Address: ISRAELAVIA General Manager: A. Eloni Computer-related Activity: Airborne Mini-computers. MOTOROLA Israel Ltd. Tel-Aviv: Kremenetski Street 16, P.O.B. 25016, Tel. (03)38973 General Manager: L. Katzir Computer-related Activity: Modems, Teleprinter Terminals. SCIENTIFIC TECHNOLOGY Ltd. Rehovot: Kiryat Weizman, P.O.B. 1028, Tel. (03)950321, Telex 033-933, Cable Address: SINTEK General Manager: E. Arazi Computer-related Activity: Computer-based Automation Systems’ for the Textile Industry. TADIRAN — Israel Electronics Industries Ltd. Tel Aviv: 3 Hashalom Rd., P.O.B. 648, Tel. 267272, Telex 033-537, Cable Address: TADIRAN Director General: E. Caspi Computer-related Activity: Microelectronic Modules. 58 GAMMA OF NEVE ILAN Tor ma dw ana Neve Ilan: Doar Na Harei Yehuda, Jerusalem. Tel. 522053 Director: S. Kimel Main Activities: Systems analysis, design and programming. Professional Employees: 9 IDAN COMPUTERS LTD. a’y. Dawn JPY Tel Aviv: 34 Yitzhak Sade Street, Tel. 39821, 39419, 30726. Directors: A. Sonnenfeld, A. S. Morag, Y. Rosner Main Activities: Engineering data center, planning and program- ming of engineering software, quantity surveying, planning and control systems, software packages for engineering and plotting. Professional Employees: 12 ].D.P. — ISRAEL DATA PROCESSING SYSTEMS AND PRODUCTS LTD. ya OaINI DVS TA Nw? MPORIW A AIAN OD OT OK Tel Aviv: 14 Carlebach Street, P.O.B. 20168, Tel. 261659 Director: D. Hadar Main Activities: Computer and hardware marketing, systems programming and software package development. Professional Employees: 11 INDUSTRIES DEVELOPMENT CORP. LTD. a o”y3a nvwyn mnp> AIAN Jerusalem: 4 Chopin Street, Tel. 36902 Haifa: 58 Moriah Blvd., Tel. 244411 Tel Aviv: 14 Carlebach Street, Tel. 262148 Directors: I. Hoffman, M. Rosner Main Activities: Consulting, planning, engineering, systems services. Professional Employees: 275, of whom 20 are ADP professionals. ISRAEL DATA PROCESSING INSTITUTE, LTD. yvys ona TIwyd Nw? 7190 .7.9.2.0 Tel Aviv: 8 Ben-Avigdor Street, Tel. 31282 Directors: S. Ditkovsky, Z. Refuah 61 ae computer-based systems. Professional Employees: 5 CONSULTING AND DATA ANALYSIS INSTITUTE (1969) LTD. mY. (1969) yT>md1 pry?d pin Ramat Gan: 95 Bialik Street, Tel. 735111, 722906 Directors: Prof. H. Ben-Shachar, Z. Keseh, Dr. K. Blum Main Activities: Economic research, economic and managerial consultancy, systems analysis, operations research. Professional Employees: 17 CONTAHAL LTD. n’ya dana Tel Aviv: 54 Ibn Gvirol Street, Tel. 263263, 268813 - Haifa: 53 Hamaginim Street, Tel. 537241° Director: Dr. M. Guterman Main Activities: Systems engineering, organization and manage- ment planning systems, organization of management infor- mation systems, operation research, commercial and scientific applications, time sharing and real-time systems, programming. Professional Employees: 27 EDDY LEVY SCIENTIFIC AND COMMERCIAL PROGRAMMING COMPANY LTD. nya mind ypPn yon man a TIN Tel Aviv: 42 Rothschild Blvd., Tel. 622292/3/4 General Manager: E. Levy Main Activities: Data processing for insurance; commercial, in- dustrial and engineering data processing design. Professional Employees: 25 ERANIR STATISTICAL DATA PROCESSING LTD. n’ya pawnn by p»porDDD DPTIay ~yIT Tel Aviv: 8 Ben-Avigdor Street, Tel. 31282 Director: R. Shay Main Activities: Design and fiuilenentatien of statistical applica- tions, development of statistical and economic mathematical models, software design for scientific applications. ’. Professional Employees: 4 60 NATAM SYSTEMS ANALYSIS AND OPERATIONS RESEARCH LTD. ma/y2 DIE WPM) NID IyM MN?3 a”"n3 Jerusalem: 9 Washington Street, P.O.B. 3521, Tel. 227055, 225796 Tel Aviv: Lincoln Street, P.O.B. 14223, Tel. 284268 Haifa: 2 Ayalon Street, Tel. 244425 Managing Directors: Dr. F. Moser, Dr. I. Amit Main Activities: Design of scientific, commercial and operative systems. Operations research and mathematical models. Commercial and scientific programming. Feasibility studies and hardware evaluation. General consulting on computer matters. Professional Employees: 38 R.S.A. — RESEARCH AND SYSTEMS ANALYSIS LTD. Tel Aviv: 133 Rothschild Blvd., Tel. 241205/6 Directors: B. A. Arad, D. Zamir Main Activities: Systems design, operations research, economics, urban planning and overall design. Professional Employees: 8 S.T.C. — SYSTEM TECHNOLOGY CORP., LTD. b’ya m>qyn 39nd WIN Tel Aviv: 40 Yehuda Hanassi Street, Ramat Aviv. Tel. 410216 Directors: Dr. D. Tiber, Prof. A. Ben-Israel, E. Sherizeli, P Singer Main Activities: Administrative systems analysis, design and programming. Professional Employees: 8 SYSTEMOLOGY INTEGRATED SYSTEMS ENGINEERING LTD. nya madiwny mid oy now “ad pod _ Tel Aviv: 28 Miviaw Kadesh Street, Tel. 775972 Directors: N. Y. Levi, D. Kenan, Z. Refuah Main Activities: Research and development, feasibility studies, operations research, systems design, implementation and installation of integrated systems. Professional Employees: 30 63 moor: ee ee Main Activities: Software development, ADP services, ADP training. Professional Employees: 15 ISRAEL INSTITUTE FOR SOFTWARE LTD. n’ya pond »oRIWw? yon Tel Aviv: 14 Carlebach Street, P.O.B. 20168, Tel. 264102/3/4 Directors: E. Shore, A. Shemesh, B. Srarf, D. Hadar Main Activities: Systems analysis programming, operations re- search, statistical research systems and processing, scientific and technical programming. Professional Employees: 10 M.H.D. COMPUTERS — SYSTEMS ANALYSIS AND SUPPORT GROUPS LTD. ny’ PIM Mw w PIN oO Ny «7.71.9 Tel Aviv: 65 Hovevei-Zion Street, P.O.B. 26068, Tel. 289710 Managing Director: B.J. Johananoff Main Activities: Operations research, consultancy, programming, marketing research, systems design and analysis, training. Professional Employees: 5 MEM-ALEF LTD. nya D-anDppoN DAWN ANON Ramat-Gan: 75 Herzl Street, P.O.B. 2300, Tel. 723272 Directors: J. Rosenne, A. Shadur, M. Rosenwald Main Activities: Data processing service bureau, consulting for data processing, linear programming. Professional Employees: 5 M.R.B. ENGINEERING SUPERVISION LTD. 62 ”/Y3 POTIT Mp .3.7.79 Haifa: 5 Derech Hayam, P.O.B. 44550, Tel. 86845/6/7 Tel Aviv: 76 Rothschild Blvd., Tel. 623282 Jerusalem: 23 Hillel Street (Rassco Bldg.), Tel. 22892 Director General: G. Messer Main Activities: Data processing for engineering, engineering + coordination and supervision. Professional Employees: 7 SERVICE BUREAUS BADEL, Computer and Administration Service Ltd. n’ya apm avn cniy — >13 Tel Aviv: 3 Carlebach Street, Tel. 285223 Director: Y. Ben-Shachar Main Activity: Computer Services. Employees: 15, of whom 10 are ADP professionals. Equipment: Burroughs 3500, 4700, NCR 315 CDC Service Bureau “nepy now> — ADR SDP Tel Aviv: 43 Brodetzky Street, Tel. 418141 Director: R. A. Brison Main Activity: Service Bureau. Employees: 50, of whom 10 are ADP professionals. Equipment: CDC 6600 at Tel Aviv University. Terminals at service bureau. * COMPUTER Administrative and Scientific Computer Data Processing Ltd. nya cyt oan oIns Ty — awnD Tel Aviv: 4 Klein Street, P.O.B. 3560, Tel. 35182, 37215 Directors General: M. Mokady, Z. Linchevsky Main Activities: Design of scientific and administrative systems, consulting on scientific programming, population registry: and census, medical applications, ADP service bureau. Employees: 50, of whom 14 are ADP professionals. Equipment: IBM 360/30 , DATA AUTOMATION LTD. 0”92 TDD ONT Tel Aviv: 60 Hamasger Street, Tel. 30531 Haifa: 32 Emile Zola Street, Tel. 533543 Directors: A. Hadari, E. Ephrat, D. Ferber Main Activities: Data processing service bureau, systems analysis, data processing applications, consultation, commercial and scientific programming, statistical research systems and 65 TELEM COMPUTERS LTD. * g’ya pawn pon Tel Aviv: 34 Yitzhak Sade Street, Tel. 32865, 39419 Directors: J. Harshoshanim, E. Gal Main Activities: Design, programming, consultancy,. training and implementation of commercial EDP. Professional Employees: 11 XI INFORMATION PROCESSING SYSTEMS LTD. : OO” PRAVNS|PR VAY NID IW 2p Savyon: 13 Habrosh Street, Tel. 753520 ; Tel Aviv: 26 Soutin Street, P.O.B. 758, Tel. 239470 © Director General: N. Y. Levi ° Main Activities: Design and programming of ‘integrated hard- ware/software systems for remote processing, graphic ADP software and hardware systems, automatic mapping, real estate ADP systems. Professional Employees: 7 YAEL MANAGEMENT AUTOMATION CO., LTD. p”’y3 bana MxnwINd AIAN by? Tel Aviv: 2 Hehalutzim Street, P.O.B. 2848, Tel. 828166, 823991 Director: B. Tzur Main Activities: Special emphasis on design and implementation of medical ADP systems, financial and accounting systems, Statistics, inventory control systems, and various other ad- ministrative systems. Professional Employees: 14 Directors: A. Shore, A. Shemesh, E. Drori Main Activities: ADP Service Bureau, systems engineering and programming, systems analysis and development. Employees: 350, of whom 40 are ADP professionals. Equipment: IBM 360/30, IBM 360/20, Philips 4000 M.S.M. Statistics and Office Equipment Ltd. ”¥2 Twn N11 AP wO"DvO? 71D ..0.19 Tel Aviv: Haneviim Street, Ort School alley, P.O.B. 2453, Tel. 227798, 221996 Jerusalem: 17 Hahavatzelet Street, Tel. 228897 Directors: M. Frishberg, A. Moav Main Activities: Computer service bureau specializing in ac- counting, statistical analysis, and survey processing applica- tions. met teens Employees: 60, of whom 7 are ADP professionals. Equipment: Conventional equipment and punching machines. NCR Service Bureau nivy now? — 9.0.3 Tel Aviv: 1 Balfour Street, Tel. 281151 Director: Y. Alster Main Activity: Service Bureau. Employees: 50, of whom 10 are ADP professionals Equipment: NCR 315, Century 200 NIKUV DY MRDWING 71D? AIAN 3Ip?3 Tel Aviv: 8 Ben-Avigdor Street, Tel. 31282/3/4 Directors: Z. Refuah, A. Ferber, S. Ditkovsky, S. Shohat Main Activities: ADP service bureau, systems design and pro- gramming, punching services. Employees: 80, of whom 35 are ADP professionals. Equipment: Burroughs B/3500, IBM 360/20 YAANA Efficiency and Data Processing Co., Ltd. D”YI CMMIIN O99NI 719°y? Fi? N.Y. . Tel Aviv: 98 Petah Tiqwa Rd., Tel. 30862 Jerusalem: 6 Yannay Street, Tel. 227968 Directors: R. Doran, A. Azrielant, E. Shabetay, Z. Shemesh, 67 processing, high-level training in systems analysis and pro- gramming. Employees: 70, of whom 9 are ADP professionals Equipment: Burroughs 1726 HISH Office Efficiency and Service Corp., Ltd. nya Tawar nw diy» A NAN — wen Tel Aviv: 25 Petah Tikwa Road, Tel. 614886, 615665 Director: E. Levi Main Activity: Service Bureau for Administrative ADP. Employees: 100, of whom 35 are ADP professionals. Equipment: IBM 360/25 IBM Service Bureau nrpw now .o.2.° Tel Aviv: 15-18 Lincoln Street, Tel. 286111 Haifa: 2 Habankim Street, Tel. 533171 Beersheba: Beit Rassco, Tel. 2765 Director: K. Elkad Main Activity: Service Bureau. Employees: 300, of whom 180 are ADP en Equipment: Haifa — IBM 360/30, IBM 360/20 Tel Aviv — IBM 370/145, IBM 370/40, System 3 Beersheba — IBM 360/25 KOPEL Electronic Company p”ya dprip .a a wpdx aiwend 14 Tel Aviv: 99 Hahashmonaim Street, Tel. 268202/3 Directors: B. Kopel, Z. Shapira Main Activity: Service Bureau for Commercial ADP. Employees: 40, of whom 7 are ADP professionals. Equipment: IBM 360/25, IBM 360/20 M.L.L. Statistics and Office Efficiency Ltd. p”ya Twn 19N>1 APyvoMHD> TDN .9.5.9 Tel Aviv: 12 Carlebach.Street, P.O.B. 20168, Tel. 264102/3/4, 266047 Haifa: 41 Hameginim Blvd., Tel. 528252/3 Jerusalem: 72 Jaffa Road, P.O.B. 2448, Tel. 233524 66 if jj “ Les 3 Ui a Stat See 68 D. Azaria, Y. Batat Main Activity: Data processing service bureau. Employees: 50, of whom 25 are ADP professionals. Equipment: IBM 360/30 The Prime Minister’s Third Economic Cornisccaes eWay ee: ~