MasterCard, in collaboration with the Fletcher School of Tufts University - the first graduate school of International Relations in the US - created an Index, the "Digital Evolution Index", with the stated purpose of "helping businesses and governments understand the evolving global digital landscape, identify recurring behaviors, and provide insights into existing and future Internet users."
By analyzing data from government sources such as the World Bank and private sources such as EMPEA and Dow Jones VentureSource, the research team created an analytical framework to identify common elements in order to understand the electronic environment, observing each country's trends and assessing their strengths and weaknesses.
The Digital Evolution Index compares countries’ current ability to respond to consumer demand and business capabilities, combined with government policy and innovation – the four pillars that define “digital readiness.” In addition to the current state, the study took into account each country’s progress across the four pillars from 2008 to 2013.
According to the Digital Evolution Index and the 2013 measurements, Greece is in 41st place, after Russia and before countries such as India or Hungary. According to the authors of the report, Greece is characterized by “great potential to evolve into a country with high digital development (creation of start-ups), with a score of 32, mainly thanks to its propensity for innovation and a good score in the demand index, thanks to the increase in internet use (with a score of 30).”
- Incidentally, in the three-year period 2010-2012, 52.31% of Greek enterprises appear innovative in at least one area of innovation. The majority of enterprises are innovative in marketing (36.79%) and in the organization of the enterprise (30.24%). Process innovations are developed by 25.58% of enterprises, while 19.51% develop product innovations, either in goods or in services. These data were obtained from the “Community Innovation Survey”, the official pan-European survey for the collection of data on innovations and innovative activities of enterprises in the European Union, which was carried out by the National Documentation Centre (EKT) in collaboration with the Hellenic Statistical Authority (ELSTAT).
Singapore , Sweden and Hong Kong occupy the top three spots on the list of countries poised to welcome the next billion internet users, thanks to their advanced and ever-growing digital economies. The United Kingdom and Switzerland round out the top five, while the United States ranks sixth among the 50 countries surveyed. China , Malaysia and Thailand rank as the top three fastest-moving digital economies, as a result of their populations ’ rapid growth in internet and smartphone usage.
“The way people engage digitally is changing rapidly. We need to be vigilant in understanding the opportunities that exist and making them meaningful to people everywhere,” said Ann Cairns, President, Global Markets, MasterCard. “It’s clear that innovation moves at different speeds around the world, but the shared opportunity before us is how we control the consumer’s relationship with the online and traditional environments, and how we build trust between the user, the service and the payment mechanism.”.
Statistical evaluation points of the countries
The research identified four interdependent factors – Supply, Demand, Institutions and Innovation – that define each country's digital evolution and can be used as strategic benchmarks for future development.
While developed markets dominate the top spots, a different picture emerges when comparing the pace of digital adoption. The research analyzed the evolution of each market from 2008 to 2013, to capture each country’s milestones, track progress and identify areas for improvement. The countries were grouped into four country zones:
- Countries that currently havelow readiness scores are evolving rapidly. India, China, Brazil, Vietnam, and the Philippines are some examples. If their rates of evolution are maintained, these countries will emerge as strong digital economies, but the Index suggests that the next phase of development may be more difficult to achieve.
- While they have a long history of strong growth, these countries (most of Western and Northern Europe, Australia and Japan) have matured. However, innovation and finding markets beyond local borders will be critical factors for their continued growth.
- Countries like Singapore, Hong Kong, and the US, which have and continue to maintain high levels of digital transactions, supported by sophisticated infrastructure and sophisticated consumers, will need to continue their rapid innovation trajectory to remain as standouts.
- Countries facing challenges but with a population of 2.5 billion represent significant investment opportunities. Indonesia, Russia, Nigeria, Egypt and Kenya are some examples.
For more information, visit the Digital Evolution Index website and the Digital Planet report, which highlight the drivers and impacts for each zone.
Source: tech.in.gr
