Global Info Tech Report Overview Prof. Timothy Shea p. IX

The Digital Economy Definition  business transactions on the Internet: the marketplace that exists on the Internet  Ecommerce is a big part of the Digital Economy  B2B  B2C  C2C  G2C

Ecommerce Today With  nearly ubiquitous high speed (broadband) networks  the evolution of Internet applications back-office, such as ERP, CRM, SCM easy to use Internet sales sites (e.g., Amazon, etc.) Ecommerce is flourishing, a multi-trillion dollar phenomena

Estimated World-Wide E-Commerce Activity 2004 a Region2004 B2C2004 B2BTotal $ BillionsPercent of world-wide B2C activity $ BillionsPercent of world-wide B2B activity $ BillionsPercent of total that is B2B/B2C activity North America $ %$ 1,60158 %$ 1,79989% 11% Europe $ % $ % $ 98081% 19% Asia/Pacific Rim $ 389 % $ % $ 33989% 11% Latin America $ 8 2 % $ 58 2 % $ 6688% 12% Africa / Middle East $ 2 < 1% $ 18 < 1% $ 1995% 5% World $ 428 2,775 $ 3,203 87% 13% a Iyer et al., 2002

Ecommerce today (cont.) Combined with the pressures of global population explosion  Todayapproximately 6 billion people  2025approximately 8 billion people the success of countries, many believe, will depend on  their adeptness in formulating intelligent policies modernizing the institutional framework which forms the basis of modern societies  cooperation among governments, businesses, and civil society adapted from the executive summary of The Golbal Information Technology Report , by Soumitra Dutta of Insead and Augusto Lopez-Claros and Irene Mia of the World Economic Forum, ©2006.

Main Points Future prosperity seems increasingly to be about investment in  human capital  ICT that enhances productivity

Forward John Chambers, President and CEO, Cisco Systems, Inc. p. VII

Main Points Companies are using more horizontal approaches to business  not building vertically (e.g., early Ford) relationships  instead, building relationships (e.g., through outsourcing and partnerships)

Main Points The Future – “a more productive and interactive economy”  “Capital projects will aim to enhance and optimize human skills instead of substituting for them  “Innovative communication technologies will extend the reach, capacity, and quality of human interactions  “Virtual databases will... [provide] access to the right information at the right time”  “Networked applications will aid complex decision making”

Main Points The Future – different workforce preparation  “ability to problem solve and collaborate”, employing ICT  “a culture of lifelong learning in order to develop and maintain the necessary adaptability and flexibility”  “incentive programs... designed to encourage teamwork as well an individual achievement”

Main Points The Future – “change is difficult... but change also brings opportunity”

Preface K laus Schwab Executive Chairman, World Economic Forum p. V

Glossary ICT  ICT  Information and Communication Technology

Main Points “ICT plays an increasingly central role in boosting productivity” “[ICT is] one of the fundamental drivers of economic growth and competitiveness

Main Points (continued) “The competitiveness of nations has come more and more to depend on  the presence of vibrant ICT sectors  the technological readiness of the three main stakeholders government business individuals Especially developing countries

Main Points (continued) Today  global economic outlook remains positive  both developing and developed economies seem to have entered a period of sustained growth

Main Points (continued) This book  provides country by country analysis of ICT readiness ICT usage / performance

Rest of the Book 5 th annual Networked Readiness Index (NRI)  Definition: the degree of preparedness of a nation or community to participate in and benefit from ICT developments  Goal: to help policy and decision makers understand the complex and diverse factors underlying national ICT development and hence, towardtheir development objectives  115 countries ranked, with a number of success stories India Ireland and Israel (software development) Singapore, Hong Kong, Taiwan (as part of business infrastructure)

Rest of the Book 5 th annual Networked Readiness Index (NRI) -- continued  3 Components Environment  market  political and regulatory  infrastructure Readiness  individual  business  government Usage  individual  business  government