The Global Information Technology Report 2010–2011 Transformations 2.0 10th Anniversary ...

435 Pages·2011·6.27 MB·English

The Global Information Soumitra Dutta
Irene Mia
Technology Report 2010–2011
Transformations 2.0
10th Anniversary Edition

Part 1_r2_PART 1 3/29/11 6:44 AM Page i
The Global Information
Technology Report 2010–2011
Transformations 2.0
10th Anniversary Edition
Soumitra Dutta,INSEAD
Irene Mia,World Economic Forum
Editors
The Global Information Technology Report 2010–2011 © 2011 World Economic Forum
Part 1_r2_PART 1 3/29/11 6:44 AM Page ii
The Global Information Technology Report 2010–2011 World Economic Forum
is a special project within the framework of World Geneva
Economic Forum’s Centre for Global Competitiveness
and Performance and the Industry Partnership Copyright © 2011
Programme for Information Technology and by the World Economic Forum and INSEAD.
Telecommunications Industries. It is the result of
a collaboration between the World Economic Forum All rights reserved. No part of this publication
and INSEAD. can be reproduced, stored in a retrieval sys-
tem, or transmitted, in any form or by any
means, electronic, mechanical, photocopying,
Professor Klaus Schwab, or otherwise without the prior permission of
Executive Chairman, World Economic Forum the World Economic Forum.
Robert Greenhill,
ISBN-10: 92-95044-95-9
Chief Business Officer, World Economic Forum
ISBN-13: 978-92-95044-95-1
This book is printed on paper suitable for
EDITORS recycling and made from fully managed and
Soumitra Dutta, Roland Berger Professor of Business
sustained forest sources.
and Technology, INSEAD
Irene Mia, Director, Senior Economist,
Printed and bound in Switzerland by
World Economic Forum
SRO-Kundig, Geneva.
CENTRE FOR GLOBAL COMPETITIVENESS AND PERFORMANCE
Jennifer Blanke, Head of the Centre for Global
Competitiveness and Performance, Lead Economist
The terms countryand nationas used in this
Ciara Browne,Associate Director
report do not in all cases refer to a territorial
Roberto Crotti, Junior Quantitative Economist
entity that is a state as understood by inter-
Margareta Drzeniek Hanouz, Director, Senior Economist
national law and practice. The terms cover
Thierry Geiger,Associate Director, Economist
well-defined, geographically self-contained
Satu Kauhanen,Team Coordinator
economic areas that may not be states but
Pearl Samandari,Community Manager
for which statistical data are maintained on a
separate and independent basis.
INFORMATION TECHNOLOGY AND
TELECOMMUNICATIONS INDUSTRIES TEAM
Alan Marcus,Head of Information Technology
and Telecommunications Industries Team,
Senior Director
Michelle Barrett,Senior Community Associate,
Information Technology Industry
Marc Boxser, Head of Partnerships,
Information Technology Industry,
Global Leadership Fellow
Joanna Gordon, Associate Director,
Head of Information Technology Industry,
Qin He, Partnership Development Manager,
Telecommunications Industry
William Hoffman, Associate Director,
Head of Telecommunications Industry
Jessica Lewis, Team Coordinator,
Telecommunications Industry
Derek O’Halloran, Community Manager,
Information Technology Industry,
Global Leadership Fellow
Justin Rico Oyola, Community Manager,
Telecommunications Industry,
Global Leadership Fellow
Alexandra Shaw, Team Coordinator,
Information Technology Industry
A special thank you to Hope Steele for her
superb editing work and Neil Weinberg for
his excellent graphic design and layout.
The Global Information Technology Report 2010–2011 © 2011 World Economic Forum
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Contents
Preface....................................................................................................v 1.10 The Emerging World’s Five Most Crucial Words:
Robert Greenhill (World Economic Forum) “To Move Money, Press Pound”.........................................109
Ram Menon (TIBCO Software Inc.)
Foreword..............................................................................................vii
Shumeet Banerji (Booz & Company)
Part 2: Best Practices in Networked Readiness:
Executive Summary............................................................................ix
Selected Case Studies
Soumitra Dutta (INSEAD) and Irene Mia (World Economic Forum)
2.1 Costa Rica(cid:0)s Efforts Toward an Innovation-
The Networked Readiness Index Rankings..............................xix
Driven Economy: The Role of the ICT Sector...................119
Vilma Villalobos (Microsoft) and Ricardo
Monge-González (Presidential Council on
Competitiveness and Innovation of Costa Rica)
Part 1: The Current Networked Readiness of the
World and ICT-Enabled Transformations 2.0
2.2 Growing Talent for the Knowledge Economy:
The Experience of Saudi Arabia.........................................127
1.1 The Networked Readiness Index 2010–2011:
Mark O. Badger and Mustafa M. Kahn (YESSER)
Celebrating 10 Years of Assessing Networked
and Bruno Lanvin (INSEAD, eLab)
Readiness......................................................................................3 iii
Soumitra Dutta (INSEAD) and Irene Mia and 2.3 A National Plan for Broadband in the
Thierry Geiger (World Economic Forum)
United States............................................................................137
Jonathan B. Baker and Paul de Sa
1.2 The Emerging Internet Economy: Looking a
(Federal Communications Commission)
Decade Ahead...........................................................................33
Enrique Rueda-Sabater and John Garrity 2.4 Broadband Developments in Europe:
(Cisco Systems, Inc.)
The Challenge of High Speed..............................................145
Lucilla Sioli (European Commission)
1.3 Building Communities around Digital Highways.............47
Karim Sabbagh, Roman Friedrich, Bahjat El-Darwiche,
and Milind Singh (Booz & Company)
Part 3: Country/Economy Profiles
1.4 The Promise of Technology....................................................61
How to Read the Country/Economy Profiles.............................159
César Alierta (Telefónica)
List of Countries/Economies......................................................161
Country/Economy Profiles..........................................................162
1.5 The Growing Possibilities of Information and
Communication Technologies for Reducing Poverty.......69
Torbjörn Fredriksson (UNCTAD)
Part 4: Data Presentation
1.6 Meeting the Decade’s Challenges:
How to Read the Data Tables....................................................303
Technology (Alone) Is Not the Answer................................79
Index of Data Tables...................................................................305
Vineet Nayar (HCL Technologies) Data Tables.................................................................................307
1.7 Localization 2.0..........................................................................85
Jeff Kelly and Neil Blakesley (BT plc) Technical Notes and Sources.......................................................393
1.8 Transformation 2.0 for an Effective Social Strategy.........91 About the Authors.............................................................................397
Mikael Hagström (SAS)
List of Partner Institutes..................................................................405
1.9 Creating a Fiber Future: The Regulatory Challenge.........99 Acknowledgment.............................................................................411
Scott Beardsley, Luis Enriquez, Mehmet Güvendi,
and Sergio Sandoval (McKinsey & Company, Inc.)
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The Global Information Technology Report 2010–2011 © 2011 World Economic Forum
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Preface ef
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ROBERT GREENHILL
Chief Business Officer, World Economic Forum
The last decade has seen information and communica- number of essays and case studies on transformations 2.0
tion technologies (ICT) dramatically transforming the and best practices in networked readiness are featured in
world, enabling innovation and productivity increases, the Report,together with a comprehensive data section—
connecting people and communities, and improving including detailed profiles for each economy covered
standards of living and opportunities across the globe. and data tables with global rankings for the NRI’s 71
While changing the way individuals live, interact, and indicators.
work, ICT has also proven to be a key precondition for We would like to convey our sincere gratitude
enhanced competitiveness and economic and societal to the industry experts who contributed outstanding
modernization, as well as an important instrument for chapters to this Report, exploring the next ICT-enabled
bridging economic and social divides and reducing transformations and highlighting best policies and
poverty. practices in ICT diffusion and usage. We especially
As we celebrate the 10th anniversary of the wish to thank the editors of the Report, Soumitra Dutta
Global Information Technology Report (GITR) series and at INSEAD and Irene Mia at the World Economic
the extraordinary achievements ICT has already made Forum, for their leadership and long-lasting dedication
possible over the past 10 years, we also want to take the to the project, together with the other members of the
opportunity to look forward and imagine the next GITR team: Roberto Crotti, Thierry Geiger, Joanna
transformations enabled by ICT—transformations 2.0. Gordon, and Derek O’Halloran. Appreciation also goes
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The pace of technological advance is accelerating and to Alan Marcus, Head of Information Technology and
ICT is increasingly becoming a ubiquitous and intrinsic Telecommunications Industries and Jennifer Blanke,
part of people’s behaviors and social networks as well as Head of the Centre for Global Competitiveness and
of business practices and government activities and serv- Performance, as well as her team: Ciara Browne,
ice provision. We expect transformations 2.0 to continue Margareta Drzeniek Hanouz, Pearl Samandari, and Satu
to move human progress forward by further leveraging Kauhanen. Last but not least, we would like to express
ICT’s positive social, political, and economic impact on our gratitude to our network of 150 Partner Institutes
governments, enterprise, and civil society alike. around the world and to all the business executives who
The GITR series has been published by the World participated in our Executive Opinion Survey. Without
Economic Forum in partnership with INSEAD since their valuable input, the production of this Report,
2001, accompanying and monitoring ICT advances would not have been possible.
over the last decade as well as raising awareness of the
importance of ICT diffusion and usage for long-term
competitiveness and societal well-being. Through the lens
of the Networked Readiness Index (NRI), the driving
factors of networked readiness and ICT leveraging
have been identified, highlighting the joint responsibility
of all social actors, namely individuals, businesses, and
governments, in this respect. The series has become
over time one of the most respected studies of its kind.
It has been extensively used by policymakers and rele-
vant stakeholders as a unique tool to identify strengths on
which to build and weaknesses that need to be addressed
in national strategies for enhanced networked readiness.
The Global Information Technology Report 2010–2011
features the latest results of the NRI, offering an overview
of the current state of ICT readiness in the world. This
year’s coverage includes a record number of 138
economies from both the developing and developed
world, accounting for over 98 percent of global GDP.A
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Foreword e
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SHUMEET BANERJI
Chief Executive Officer, Booz & Company
In the years that Booz & Company has been involved like-minded peers—and work together to clean up the
with the World Economic Forum and the Global planet. Talented entrepreneurs can launch their ideas in
Information Technology Report (GITR) series, we have a global marketplace and tap into capital from halfway
seen information and communication technologies around the world.
(ICT) offer the foundation for major leaps forward Some might say that this sense of optimism, about
in almost every area of human activity. Governments, the potential that can be created by an interconnected
businesses, and consumers have a fundamentally different world, is misplaced. The theme for the World Economic
understanding of technology and its potential than they Forum Annual Meeting 2011, “Shared Norms for the
did 10 years ago, when the GITR was first published. New Reality,” acknowledged the pervasive challenges
For each of these groups, the purpose of tech- facing leaders and institutions—the aftermath of several
nology and the way they interact with it has changed. demanding years in the global economy.
Governments, which once focused on the concrete issues We choose to be relentlessly positive in the face of
of building infrastructure and providing access to citi- these challenges. Around the world, technology can help
zens, are beginning to recognize that technology itself nations and individuals to level the playing field, to turn
is not as important as the socioeconomic achievements ideas into reality, to overcome generations of stagnant
it can engender—via e-health programs, e-government development. No nation and no region has a monopoly
services, and smart grids for utilities, for example. Busi- on innovation and new thinking. There is no area on
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nesses have recognized that ICT is not just an avenue the globe that has an inherent advantage in asking new
to cost-cutting and more efficient operations, but a crit- questions, or exploring new areas. Digital economies,
ical way to open a dialogue with consumers and other unlike the industrial economies of the past, do not rely
stakeholders via all kinds of digital communications: on natural resources but on smart, ambitious individuals.
mobile advertising, digital marketing, social networks, There are many places on earth that can aspire to be the
e-commerce. And consumers inhabit a new, always- next Silicon Valley, the next Nanjing-Beijing corridor,
connected digital world—particularly Generation C, the next Singapore.
those connected, communicating, content-centric, It is based on this assumption that Booz & Company
computerized, community-oriented, always-clicking creates our vision for a world with seamless connected-
consumers born after 1990. ness, always-on access to knowledge, and unrestricted
As digital economies steadily become the norm, openness to innovation. We are honored to contribute
our goal at Booz & Company is to continue exploring to The Global Information Technology Report 2010–2011
the economic and social benefits that ICT can bring— and to continue shaping this vision for the future.
and the ways in which they are increasingly intercon-
nected. An e-health system built upon electronic med-
ical records can improve bottom lines for hospitals, but
it also offers social benefits by allowing for better patient
care. Smart grids allow utilities to deliver a new range
of smart home services, many of which also offer a
greater environmental good.
More and more, various groups of stakeholders will
need to collaborate on ICT projects in order to ensure
that they are designed in ways that allow all of them to
reap the potential advantages.
Furthermore, ICT’s socioeconomic benefits are
not limited by national borders. Technology allows the
best and brightest minds in every nation to have access
to each other in a way that was never before possible.
Young people who may once have tried to clean up
their cities can now form global communities of
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The Global Information Technology Report 2010–2011 © 2011 World Economic Forum