Mapping your transformation into a digital economy with GCI 2016

94 Pages·2016·7.95 MB·English

Connect
where
it counts
Mapping your transformation
into a digital economy
with GCI 2016
Table of
Contents
04 Executive Summary
06 A global digital economy worth trillions
08 What you can expect from GCI 2016
10 The pillars of a digital economy: Supply, Demand, Experience, and Potential
18 GCI 2016: How did you do?
29 GCI 2016: Dramatic changes for some countries
32 Technology innovation trends
36 The future: Augmented Innovation
38 Realizing economic transformation with the fve tech enablers
44 The fve tech enablers in action: Smart Cities
47 Digitizing industry to build a digital economy
54 Call to action: Recommendations for Starters, Adopters, and Frontrunners
59 Seven countries in focus
59 China
62 India
65 Indonesia
68 Malaysia
71 Morocco
73 The UK
76 The USA
79 Methodology
86 GCI defnitions
91 FAQ
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5
E X E C U T I V E S U M M A R Y
Huawei’s Global Connectivity Index (GCI) 2016 measures how
50 nations are progressing with digital transformation using
Information and Communications Technology (ICT).
As you’re reading this, a revolutionary a better future or its potential is wasted.
shift is happening in the way the world
works, with economies across the planet While everyone instinctively knows that
going digital fast. technology is good, investment in ICT is
invisible – it isn’t as obvious as police on
So, what were the major digital the streets, a new school, or more nurses.
transformation trends in 2015? The main However, here’s what we’ve found: a one-
investment target of all nations was point increase in your national GCI rating
broadband – both speed and coverage. correlates with the following:
Developed economies concentrated on • A 2.1 percent increase in
accelerating downloads and cutting competitiveness.
latency. They also made headway in • A 2.2 percent rise in innovation.
deploying cloud services, big data • A 2.3 percent jump in productivity.
analytics, and the Internet of Things
(IoT) – but not to the extent that can And it can help drive up your GDP per
prevent economic stagnancy right now. capita – the pulse of economic health.
Data is simply not creating the value it
could. How much your GCI score ramps up GDP
depends on which stage your country
Emerging economies are focusing on is in when it comes to innovation. We’ve
broadband coverage, but they’re weak in identified four stages of digital
cloud, big data, and IoT. This is hindering maturity: Foundation, Internet, Data,
the productivity and scaling benefts of and the stage no country has reached
digitization. yet – Augmented. But more on that later.
Individually, some countries like the UK, Let’s get back to ICT. It encompasses
Malaysia, and Indonesia played a great many things, but in this white paper
game over the past year, making gains we talk about fve key technologies that
and jumping in rank. Not all countries enable economic digitization: broadband,
are reaping the benefts of the digital data centers, cloud services, big data,
whirlwind, though – the rate of increase and IoT.
is uneven, and some countries are falling
behind. Investing in these fve ICT tech enablers
– especially broadband – lays a
But there’s a way out. muscular infrastructure for digital
transformation and long-term economic
Balancing four economic pillars can health, competitiveness, innovation, and
form the necessary foundation for ICT to productivity.
thrive. These pillars are supply, demand,
experience, and potential. Technology There are no shortcuts on the journey to
needs to be available or governments, digital transformation.
industry, and people can’t use it; it needs
to deliver a good experience or people Find out where you are and where you
won’t use it; it needs to sow the seeds for can go by connecting where it counts.
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A G L O B A L D I G I T A L E C O N O M Y W O R T H T R I L L I O N S
Big business in the global digital economy
In today’s world, the digital economy has
emerged as an unstoppable giant that’s
growing at 10 percent a year – more than
triple the rate of overall global economic
growth.
Only 2%
The worldwide digital economy generated of enterprises in the
US$24 trillion in e-commerce in 2015
and accounted for 30 percent of all global EU truly exploit
transactions. Much of this was completed
digital
on 2.5 billion smart devices spread
somewhat unevenly among the world’s opportunities
7.4 billion people.
2015 saw governments worldwide
announce digital plans, marking
a decisive step towards digitizing
traditional industries like commodities
and manufacturing. Examples in
In January 2016, the IMF cut growth
emerging economies include Digital
forecasts by 0.2 percent, citing China’s
India and Kenya’s Vision 2030, while the
“weaker investment and manufacturing
UK unleashed its Digital Transformation
activity” for the unexpectedly quick
Plan to pack some muscle onto its digital
slowdown in imports and exports. The
frame.
China effect continues to ripple outwards
to other economies, with the IMF warning
On a wider scale, the European
of “increasing volatility in fnancial
Commission unveiled its measurement
growth”ii.
tool, the Digital Economy and Society
Index (DESI), to chart digital progress
While the IMF global growth forecasts
across the EU based on fve factors:
for 2016 are still 0.3 percent higher
connectivity, human capital, Internet
than 2015, prospects look bleak and
use, integration of digital technology, and
unemployment looms in key sectors
digital public services.
like oil and gas, commodities, fnancial
An uneven digital shift services, and manufacturingiii.
However, the digital shift isn’t universal.
With this in mind, now is the time to
For example, 41 percent of enterprises
digitize; now is the time to improve the
within EU borders are non-digital,
quality of economic growth to ensure a
and only 2 percent fully exploit digital
sustainable tomorrow.
opportunities. The lowest performer on
the DESI scale of zero to one, Romania, The digital
scored 0.3 in 2015, less than half the FPO economy has
highest performer, Denmark, which
achieved 0.68.i emerged as an
unstoppable
While the digital economy made an giant that’s
impressive global showing in 2015, 2016
growing at 10
still limped into play under the dark skies
of economic pessimism. percent a year –
more than triple
the rate of
overall global
economic
growth.
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9
W H A T Y O U C A N E X P E C T F R O M G C I 2 0 1 6
Introducing GCI 2016
We’ve based GCI 2016 on fndings from 50 countries that, in total, account for 90 percent
of global GDP and 78 percent of the global population.
The 40 indicators can be analyzed both horizontally (broadband, data centers, cloud ser-
vices, big data, and IoT) and vertically (supply, demand, experience, and potential).
GCI 2016 also includes survey results from 3,000 frms across 10 verticals in 10 nations
to assess their progress in digital transformation against the GCI performance of their
nation. We also give a series of best practices and case studies for nations to fnd the best
path to digital transformation through the use of ICT technologies, and assess in which
stage of innovation each country is in.
A snapshot of GCI 2016
For
50
countries
Supply Demand Experience Potential
10 indicators like 10 indicators 10 indicators including 10 indicators like
4G, broadband, and such as e-commerce download speds patents and R&D 40
inve
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ADOPTION QUALITY
IoT 4
economic pillars
Big Data that underpin
Cloud Services
Data Centers
5
Broadband tech enablers
which determine
Foundation Internet Data Augmented
Innovation Innovation Innovation Innovation
4
stages of
Frontrunners innovation
Adopters and
Starters
3
clusters emerged in 2016
Where are you?
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