*New York, USA, 4 April 2012* – Despite efforts over the past decade to
develop information and communications technologies (ICT) infrastructure in
developing economies, a new digital divide in terms of ICT impacts
persists, according to the latest rankings of *The Global Information
Technology Report 2012: Living in a Hyperconnected World*, released today
by the World Economic Forum.
Sweden (1st) and Singapore (2nd) top the rankings in this year’s report in
leveraging information and communications technologies to boost country
competitiveness. Switzerland (5th), the Netherlands (6th), the United
States (8th), Canada (9th) and the United Kingdom (10th) also show strong
performances in the top 10.
However, ICT readiness in sub-Saharan Africa is still low, with most
countries showing significant lags in connectivity due to insufficient
development of ICT infrastructure, which remains too costly, and displaying
poor skill levels that do not allow for an efficient use of the available
technology. Even in those countries where ICT infrastructure has been
improved, ICT-driven impacts on competitiveness and well-being trail
behind, resulting in a new digital divide.
Despite improvements in many drivers of competitiveness, the BRICS
countries – led by China (51st) – still face important challenges to more
fully adopt and leverage ICT. An insufficient skills base and institutional
weaknesses, especially in the business environment, present a number of
shortcomings that stifle entrepreneurship and innovation.
With a record coverage of 142 economies worldwide, the report remains the
most comprehensive and authoritative international assessment of the impact
of ICT on competitiveness and the well-being of nations. After a two-year
review process, the Networked Readiness Index (NRI) featured in the report
has evolved to ensure that it captures the main drivers of a rapidly
changing ICT industry and remains relevant for public- and private-sector
decision-makers.
The NRI has increased its focus on the impacts of ICT to better align with
areas of public policy. It has added new, relevant indicators such as
mobile broadband subscriptions, and dropped other outdated indicators.
“The Networked Readiness Index (NRI) has been adopted by several
governments as a valuable tool for assessing and leveraging technology for
competitiveness and development. The success of the NRI emphasizes the
importance of continuing to evolve its framework with the changing
landscape of technology and the new opportunities it creates,” said *Soumitra
Dutta*, Roland Berger Professor of Business and Technology at INSEAD, a
co-editor of the report. “To measure this impact effectively, we have
introduced a new set of impact-oriented metrics this year that assess not
just the availability of technology, but also the ways in which economies
put that technology to greater use. Considering how ICT has become
omnipresent, the focus has moved from access to making the best use of ICT
in order to improve business innovation, governance, citizens’ political
participation and social cohesion,” added Dutta.
Under the theme *Living in a Hyperconnected World*, the report explores the
causes and consequences of living in an environment where the Internet is
accessible and immediate; people and businesses can communicate instantly;
and machines are interconnected. The exponential growth of mobile devices,
big data and social media is a driver of this process of hyperconnectivity
and, consequently, fundamental transformations in all areas of society are
being witnessed. This year’s report tracks how societies leverage ICT to
derive important competitive advantages and increase social well-being.
“Hyperconnectivity is redefining relationships between individuals,
consumers and enterprises, citizens and state, and we are beginning to see
fundamental transformations in all areas of the economy and society,”
said *Robert
Greenhill*, Chief Business Officer, World Economic Forum. “Traditional
organizations and industry infrastructures are facing challenges as
industries converge. This will inevitably have consequences for policy and
regulation as regulators will have to mediate the blurring lines between
sectors and industries and will be obligated to oversee more facets in a
pervasive way,” he added.
“We believe that in an emerging era of hyperconnectivity, ICT will enable a
bold new chapter that is entwined with the sustained growth of the global
economy,” said *Sun Yafang*, Chairwoman of the Board, Huawei Technologies.
”The importance of ICT goes beyond its role as a driver of future economic
growth as smart devices and cloud services continue to become a greater
part of our daily lives. By strategically integrating ICT as part of
overall economic growth plans, countries are in a better position to
capitalize on the hyperconnected global economy and increase
competitiveness on a global scale.”
“Digital applications offer unprecedented potential for economic, social
and political development,” said *Karim Sabbagh*, Senior Partner and Global
Head of Communication, Media and Technology Practice at Booz & Company.
“Policy-makers need to be aware of both growth and transformational
opportunities, and how they can craft policies that promote ubiquitous
digitization in a timely manner. They must facilitate the creation of new
models enabled by digitization at a faster pace than the old models are
breaking down,” he added.
The report is the result of a long-standing partnership between the World
Economic Forum and INSEAD, a leading international business school, within
the framework of the Forum’s Industry Partnership Programme – particularly
its Information Technologies & Telecommunications Industry Team – and the
Centre for Global Competitiveness and Performance.
The Networked Readiness Index uses a combination of data from publicly
available sources and the results of the Executive Opinion Survey, a
comprehensive annual survey conducted by the Forum in collaboration with
partner institutes, a network of over 150 leading research institutes and
business organizations. This survey of over 15,000 executives provides
insight into areas critical for networked readiness.
The presentation of the NRI rankings is followed by contributions by
academics and industry experts, exploring the drivers and consequences for
individuals, businesses and governments of living in a hyperconnected
world, including:
1. Convergence of ICT
2. Issues in a hyperconnected world, with a focus on the role of
regulation
3. Network neutrality
4. Increasing importance of mobile broadband to empower individuals
5. Cost of broadband
6. Role of in-memory technology and analytics to harness the power of
big data
7. Role of real-time analytics to make sense of big data
8. Value of digital traces for commercial strategy and public policy
9. The promise and perils of hyperconnectivity for organizations and
societies
10. Maximizing the impact of digitization
11. Effect of technology in education
In addition, two policy case studies highlighting efforts to develop and
spread the positive effects of ICT in Azerbaijan and Mauritius are covered.
The report contains detailed country profiles for the 142 economies
featured in the study, providing a snapshot of each economy’s level of ICT
uptake and economic and social impacts. Also included is an extensive
section of data tables for the 53 indicators used in the computation of the
index.
The editors of the report are Soumitra Dutta, Roland Berger Professor of
Business and Technology, INSEAD, and Beñat Bilbao, Associate Director and
Economist, Centre for Global Competitiveness and Performance, World
Economic Forum.