Methodology
The GCI was created to analyze a broad spectrum of indicators for Smart Infrastructure and digital transformation to provide a comprehensive map of the global digital economy. The annual index was launched in 2014.

The index benchmark 50 countries according to their performance in 40 indicators that track the impact of ICT on a nation’s economy, digital competitiveness and future growth. Combined, these countries account for 90 percent of global GDP.

The GCI is a unique quantitative assessment that comprehensively and objectively evaluates connectivity from both a national and industrial perspective. The research framework covers a combination of advanced and fundamental technologies, enabling analysis of how yesterday, today and tomorrow intersect to help map the global digital economy.

The Four Pillars: SDEP
There are four pillars of the GCI Index: Supply, Demand, Experience and Potential. These encompass the entire chain of ICT development and Digital Transformation to provide a 360-degree view of the digital economy.
The Five Technology Enablers
The GCI analyzes digital transformation from basic levels of connectivity to supplementary, advanced technologies. These advanced technologies - Broadband, Data Centers, Cloud Services, Big Data, and IoT - are key enablers that will drive the next wave of economic benefits resulting from ICT investment.
The 40 Indicators
The 40 indicators can be analyzed both vertically (Supply, Demand, Experience, Potential) and horizontally (Broadband, Data Centers, Cloud Services, Big Data and IoT).
4 Pillars
FUNDAMENTALS:
  • ICT Investment
  • Telecom Investment
  • ICT Laws
  • International Internet Bandwidtht
BROADBAND:
  • Fiber Optic
  • 4G Coverage
DATA CENTERS:
  • Data Center Investment
CLOUD SERVICES:
  • Cloud Investment
BIG DATA:
  • Big Data Investment
IoT:
  • IoT Investment
FUNDAMENTALS:
  • App Downloads
  • Smartphone Penetration
  • eCommerce Transactions
  • Computer Households
BROADBAND:
  • Fixed Broadband Subscriptions
  • Mobile Broadband Subscriptions
DATA CENTERS:
  • Data Center Equipments
CLOUD SERVICES:
  • Cloud Migration
BIG DATA:
  • Analytics Data Creation
IoT:
  • IoT Installed Base
FUNDAMENTALS:
  • E-Government Service
  • Telecom Customer Service
  • Internet Participation
  • Broadband Download Speed
BROADBAND:
  • Fixed Broadband Affordability
  • Mobile Broadband Affordability
DATA CENTERS:
  • Data Center Experience
CLOUD SERVICES:
  • Cloud Experience
BIG DATA:
  • Big Data Experience
IoT:
  • IoT Experience
FUNDAMENTALS:
  • R&D Expenditure
  • ICT Patents
  • IT Workforce
  • Software Developers
BROADBAND:
  • Broadband Potential
  • Mobile Potential
DATA CENTERS:
  • Data Center Potential
CLOUD SERVICES:
  • Cloud Potential
BIG DATA:
  • Big Data Potential
IoT:
  • IoT Potential
Measurement and Normalization
Variables are measured against factors such as GDP PPP, number of households, and total population.

These factors assess the full picture of connectivity for each country, including measurements like app downloads per person or fiber optic penetration against total households.

 

The index benchmarks nations according to their overall rate of ICT adaptation across the economy and entire population.

In all cases, the data inputs are first measured against a normalizing variable like population size, so the index can benchmark countries according to relative levels of connectivity rather than absolute market sizes, which would be more reflective of economy size.

Scoring and Aggregation
Nations receive a rating of 1 (low) to 10 (high) for each of the 40 indicators based on a target value for 2020. These indicator scores are then aggregated to form a total score for each of the four GCI pillars.

These target values are extrapolated from market penetration projections based on the highest- ranked countries, historical market performance, and expert opinions.

Each country’s score is then determined by its normalized raw data value in relation to this scale. In most baseline cases, a rating that is less than 10 % of the target value receives a score of 1. A value of between 10% and 20% receives a score of 2, and so on. This is shown in the table below:

Where the average values are significantly lower than the median, the formula is adjusted to include meaningful differentiation at the lower end of the scale and avoid excessive clustering of countries with equal (low) GCI scores.

The final index score is then calculated by aggregating the four segments: GCI Total = (Supply + Demand + Experience + Potential) / 4

Harnessing the Power of Connectivity
The GCI 2017 offers critical insights for policy makers of ICT Infrastructure investment - offering expert advice on the best way to energize industries and economies for sustainable growth and success.
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