As you’re reading this, a revolutionary shift is happening in the way the world works, with economies across the planet going digital fast.
So, what were the major digital transformation trends in 2015? The main investment target of all nations was broadband, both speed and coverage, and as a result overall connectivity levels are 5 percent higher than in 2015.
Developed economies concentrated on accelerating downloads and cutting latency. They also made headway in deploying cloud services, big data analytics, and the Internet of Things (IoT) – but not to the extent that can prevent economic stagnancy right now. Data is simply not creating the value it could.
Emerging economies are focusing on broadband coverage, but they’re weak in cloud, big data, and IoT. This is hindering the productivity and scaling benefits of digitization. Individually, some countries like the UK, Malaysia, and Indonesia played a great game over the past year, making gains and jumping in rank. Not all countries are reaping the benefits of the digital whirlwind, though – the rate of increase is uneven, and some countries are falling behind.
But there’s a way out.
Balancing four economic pillars can form the necessary foundation for ICT to thrive. These pillars are supply, demand, experience, and potential. Technology needs to be available or governments, industry, and people can’t use it; it needs to deliver a good experience or people won’t use it; it needs to sow the seeds for a better future or its potential is wasted.
While everyone instinctively knows that technology is good, investment in ICT is invisible – it isn’t as obvious as police on the streets, a new school, or more nurses. However, here’s what we’ve found: a one-point increase in your national GCI rating correlates with the following:
- A 2.1 percent increase in competitiveness
- A 2.2 percent rise in innovation
- A 2.3 percent jump in productivity
And it can help drive up your GDP per capita – the pulse of economic health.
How much your GCI score ramps up GDP depends on which stage your country is in when it comes to innovation. We’ve identified four stages of digital maturity: Foundation, Internet, Data, and the stage no country has reached yet – Augmented – where we will see machine-enhanced innovation based on big data analytics and IoT.
Let’s get back to ICT. It encompasses many things, but in this white paper we talk about five key technologies that enable economic digitization: broadband, data centers, cloud services, big data, and IoT.
Investing in these five ICT tech enablers – especially broadband – lays a muscular infrastructure for digital transformation and long-term economic health, competiveness, innovation, and productivity. Nations in the early stages of economic digitization should develop long-term technology plans that include broadband and data centers to reap the benefits of enhanced growth. Developed economies wanting to capitalize on their frontrunner status in ICT should invest more in cloud, big data, and IoT technologies and solutions to experience the full benefits of a digital economy.
There are no shortcuts on the journey to digital transformation. Find out where you are and where you can go by connecting where it counts.
Read the full report at huawei.com/gci
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