White Paper The Digital Media Readiness Framework

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White PaperThe Digital MediaReadiness FrameworkGlobal Agenda Council on the Future of Media, Entertainment & InformationJune 2016

World Economic Forum91-93 route de la CapiteCH-1223 Cologny/GenevaSwitzerlandTel.: 41 (0)22 869 1212Fax: 41 (0)22 786 2744Email: contact@weforum.orgwww.weforum.orgWorld Economic Forum 2016 – All rights reserved.No part of this publication may be reproduced orTransmitted in any form or by any means, includingPhotocopying and recording, or by any informationStorage and retrieval system.REF 090616Case: 00014564

Contents4Introduction5A Proposed Framework of MeasurementCategories and Indicators75Environment5Capacity6UsageSummary of Framework Indicators7Environment8Capacity8Usage9Methodology for Identifying andDefining Indicators10Indicator Metrics and ducation15CultureCapacity16Digital lsUsage20Government21Private SectorIdentifying Gaps and Future Steps23Environment23Capacity23UsageThe Framework24Relative Weighting of Indicators withinthe Framework25Relationships and linkages within theframeworkBest Practices of Digital MediaReadiness26The Digital Textbook (Japan)26The City of Chattanooga, Tennessee(USA)27National Digital Strategy Coordination(Mexico)28M-Pesa (Kenya)29Xikang (China)30How the case studies demonstrateprogress towards enhanced digitalmedia readiness31Outlook for the Digital Media ReadinessFramework32Acknowledgements and Contributors32Global Agenda Council on the Futureof Media, Entertainment & Information32Research and Graphics Work32Additional ContributorsThe Digital Media Readiness Framework3

IntroductionAll communities should answer the key question of howdigital infrastructure can be put to use in improving theircitizens’ lives. Access to and use of digital platforms,services, products and content drive economic and socialwell-being. Thus, the concept of a country’s readiness indigital media, entertainment and information (MEI) requiresfurther investigation. This report serves as a living document,as MEI industries develop and change at unprecedentedspeed.Metrics to measure DMR include (but are not limited to):The World Economic Forum’s Global Information TechnologyReport, which assesses the preparedness of informationand communications technology (ICT) of more than 140countries annually, has consistently shown strong linksbetween a nation’s level of ICT readiness and its ability tobenefit from it both economically and socially. In particular,a wider discussion on digital readiness needs to includedigital infrastructure as an important building block. Theemerging fields of artificial intelligence, the Internet ofThings, blockchain and virtual reality, along with many othertechnological innovations, will undoubtedly change MEIas much as the internet browser and social media havedone so far, which only amplifies the need for digital mediareadiness.The World Economic Forum’s Global Agenda Council on theFuture of Media, Entertainment & Information has developedthe Digital Media Readiness (DMR) Framework, which willassist in measuring a community’s access to and use of MEIproducts, services and content, referred to simply as “digitalmedia”. Communities can include nations, cities or any othercollective of citizens that can benefit from digital readiness.An application of the framework can be used to help rankcountries or cities according to their readiness to participatein and embrace digital media, and to stimulate investmentin areas that increase readiness. However, actual rankingwould require further development of the metrics layout foreach indicator in the framework, including the measuring ofeach across a significant community base. The frameworkcan also help create clarity and consistency betweencommunities on the following:–Citizens’ access to and ability to afford broadbandinternet–Citizens’ literacy to engage with digital MEI–Capabilities of industry to distribute and communicateon MEI content and services, using audience-preferredplatforms–Sustainable monetization models to ensure a thrivingand healthy local MEI industry–Cultural openness, legal structures and policies toprovide citizen safety and industry prosperity4The Digital Media Readiness Framework–Broadband and mobile penetration–Freedom to publish–Availability of content licensing infrastructure–Level of content piracy–Freedom from censorship–Freedom to establish new enterprises–Open telecommunications platforms (level of regulation)–Availability of venture capital–Digital MEI literacyThe council’s DMR Framework consists of currentlydefined and measured indicators from existing, active andrelated indices (listed in the methodology section); newindicators that require design and application; informationon interdependencies between all indicators; and, finally,case studies of best practice for increasing indicator levelsfrom existing communities across different regions. Newindicators for the framework are proposed, with the goalof having them adopted (designed and measured) byeconomists across numerous communities. As such, theDMR Framework should act as an open-sourced tool foranyone to use. Ideally, it will serve as an aide to facilitateinvestment, incentives and programmes that lead to theMEI industry’s sustainable development at a global level. Byapplying the framework, various stakeholders in the globalMEI system could work together towards the shared globalagenda of enhancing digital MEI readiness wherever it islimited and challenged. A vibrant and growing digital MEIindustry helps to create a marketplace for ideas, knowledge,commerce and progress at a regional and national level.

A Proposed Framework of MeasurementCategories and IndicatorsThe first step in developing a working and useful frameworkis to identify and use indicators for measuring digital mediareadiness (DMR).The Digital Media Readiness Framework (DMR Framework)organizes relevant indicators into three main categories:1. Environment: Legal, business, education and culture2. Capacity: Infrastructure, accessibility, affordability andskills3. Usage: Government and the private sectorThe Education subcategory assesses whether substantialeducational programmes, as well as professional trainingprogrammes, are available that aim to increase knowledgeabout and usage of digital MEI. A good education systemthat focuses on mathematics and sciences serves as agood indicator of the environment’s readiness to adoptdigital media. This subcategory also assesses the use ofthe internet in school, as a proxy for the potential benefitsassociated with the use of ICTs in education.EnvironmentA community’s success in embracing and using digitalMEI depends in part on the quality of the overall operatingenvironment. The Environment category therefore assessesthe extent to which a community’s market conditions,regulatory framework and culture support entrepreneurship,innovation, the development of information andcommunications technology (ICT), and the use of digitalmedia in general.The Culture subcategory evaluates the overall publicknowledge, behaviour and attitude towards creating andusing digital media, the adoption of new technologies aswell as the entrepreneurial culture. It also takes into accountdemand conditions for innovative products (as representedby government procuring of advanced technologyproducts).CapacityThe Legal subcategory assesses the extent to which acommunity’s political and regulatory environments facilitatethe production and use of digital media. It does so bymeasuring the extent of protection of intellectual propertyrights, the prevalence of software and content piracy, theefficiency and independence of the judiciary environment,the efficiency of the law-making process, and the overallquality of regulations pertaining to digital media (includinghaving a legal environment committed to the cause, andallowing for fair involvement for businesses and individuals).The Business subcategory gauges the businessenvironment’s support of entrepreneurship by accounting forbureaucracy, the ease of starting a business, and taxation.It also measures the conditions that allow innovation toflourish, such as availability of technology, the intensity ofcompetition and the availability of venture capital for fundinginnovation-related projects.The Capacity category measures the extent to which acommunity has the infrastructure and other factors in placeto support the production and use of digital media. It alsoconsiders other factors such as affordability, accessibilityand the public’s overall skill set (including the digital medialiteracy rate).The Infrastructure subcategory captures the state ofa community’s digital MEI infrastructure, as well asinfrastructure that matters for developing ICT: mobilenetwork coverage, international internet bandwidth, secureinternet servers, and production of electricity are some ofthe factors considered.The Affordability subcategory assesses the ability to payfor digital MEI and new technologies (including ICTs) ina community by measuring the cost of mobile phoneusage and broadband internet subscriptions, as well ascompetition among service providers.The Digital Media Readiness Framework5

The Accessibility subcategory looks at whether people andbusinesses have easy access to uncensored, good-qualitydigital MEI, and relevant products and services.The Skills subcategory measures the population’s capacityto use digital media effectively by accounting for theenrolment rate in secondary education, the public’s strengthand knowledge in fields related to science and technology,and citizens’ overall digital acumen and digital media literacyrate.UsageThe Usage category assesses the extent to which asociety’s stakeholders (in government and the private sector)have adopted digital MEI, ICTs and new technologies.The Government subcategory assesses the government’sleadership and success in developing and implementingstrategies for the wide and effective use of digital media,for developing ICT and adopting new technologies (e.g.measuring the availability and quality of governmentonline services). In addition, it measures ICTs’ impact ongovernment efficiency and the usefulness of information andservices provided by a community to engage its citizens inpublic policy-making through e-government programmes.Finally, it assesses governments’ use of digital MEI, as wellas ICTs, in conducting and advancing their foreign policiesand communication with the global community.The Private Sector subcategory aims to measure ICTs’effect on the economy and on the development oftechnological and non-technological innovations in acommunity. Measurements include the number of copyrightapplications and the role that ICTs play in developing newproducts, processes and organizational models, as well asin developing projects (e.g. for public health). This can besplit into uses by business and citizens, as in measuringan economy’s overall shift towards more knowledgeintensive activities. It takes into account the effects ofdigital media and new technologies on the work of variousnon-governmental organizations (NGOs) and businessesto connect with their stakeholders and engage in publicrelations, as well as on individuals in their daily activities.6The Digital Media Readiness Framework

Summary of Framework IndicatorsAmong the subcategories, 23 indicators serve as therelevant measures of DMR (Figure 1):Figure 1: Digital Media Readiness Framework – Details of Relevant MeasuresSource: World Economic Forum, Digital Media Readiness FrameworkEnvironmenta. Legal1. Judiciary system: regulatory stance and policymaking, including efficiency, independence, roles andresponsibilities2. Fair involvement, including:– Enabling environment for independent media: havingopen and competitive digital media markets– Promoting, encouraging and supporting local initiativesin the field: removing barriers to innovation andencouraging local experimentation– Ensuring freedom, safety and security: looking at thelegal system’s efficiency in terms of web security andfreedom, and privacy issues3. Commitment: long-term policies to ensure a thriving andhealthy digital MEI industryb. Business4. Investment/Capital: the availability of capital forfunding innovation-related projects, financial marketdevelopment, risk assessment and evolution of resourcechannels5. Competition: its intensity in the digital realm6. Knowledge and adopting technology: an economy’soverall shift towards more knowledge-intensive activitiesand investment in the latest and best technologies7. Ethics, accountability and efficiencyThe Digital Media Readiness Framework7

c. Education8. Specialized MEI education: availability of an educationsystem that encourages creativity and the use of digitalmedia while training the workforce9. Quality of the education system: overall quality, withspecial focus on creative industries, education inmathematics and science, and use of the internet andICTsd. Culture10. Knowledge, attitude and behaviour: the public’swillingness to embrace digital media, and the level ofdigital tools’ diffusion among a community’s population11. Entrepreneurship cultureCapacitya. Digital Infrastructure12. Internet infrastructure: mobile and fixed internetinfrastructure13. Having a robust digital service sector: the requiredservices, including advanced data centre infrastructuremanagement (DCIM)14. Having a secured digital infrastructure: efficient andadvanced cyber- and web securityb. Accessibility15. Quantity and variety of digital media: availability of digitalMEI content, services and platforms16. Access to digital technology and hardwarec. Affordability17. Cost of digital MEId. Skills18. Digital acumen of citizens: including their digital medialiteracyUsagea. Government19. Successful e-governance and implementation ofpolicies: government’s success in implementing policiesthat grow and develop digital MEI20. Overall digital acumen: government’s efficient andadvanced use of digital platforms and media toolsb. Private Sector21. Innovation: technological innovations in the privatesector22. Digital MEI penetration in the private sector: efficient andadvanced use of digital media and related ICT for thevarious business/NGO services provided23. Citizen usage of digital MEI8The Digital Media Readiness Framework

Methodology for Identifying and DefiningIndicatorsThe initial research phase consisted of reviewing majorreports and indices related to more general “digitalreadiness”. The aggregated data from these sourceswas then coded to better identify recurring themes. Thefindings led to a proposed layout of the DMR Framework’sindicators.The information herein is based on aggregating andselecting the most relevant indicators for digital MEIreadiness from the various existing indices already publishedand regularly refreshed with updated data. Such indicesinclude:–Competition: its intensity in the digital realm–Knowledge, attitude and behaviour: the public’swillingness to embrace digital media, and the level ofdigital tools’ diffusion among a community’s population–General entrepreneurial culture–Having a robust digital service sector: the requiredservices, including advanced DCIM–Quantity and variety of digital media: availability of digitalMEI content, services and platforms–Digital acumen of citizens: including their digital medialiteracy–Networked Readiness Index (The Global InformationTechnology Report 2015, World Economic Forum)–Innovation: technological innovations in the privatesector–E-Intensity Index (World Economic Forum and TheBoston Consulting Group, 2013)––Delivering Digital Infrastructure: Advancing the InternetEconomy (World Economic Forum, 2014)Digital MEI penetration in the private sector: efficient andadvanced use of ICT and digital media for the variousbusiness/NGO services provided–Citizen usage of digital MEI–Expanding Participation and Boosting Growth: TheInfrastructure Needs of the Digital Economy (WorldEconomic Forum, 2015)–Measuring the Information Society Report 2014(International Telecommunication Union [ITU])–Offline and falling behind: Barriers to Internet adoption(McKinsey & Company, 2014)–Index on Informed Societies (Global Agenda Council onInformed Societies, World Economic Forum)*–State of Connectivity: 2014 – A Report on GlobalInternet Access (internet.org)–Digital Evolution Index (The Fletcher School, TuftsUniversity, 2013)–Sustainable Governance and Transformation Indices(Bertelsmann Stiftung)In some cases, the framework provides suggestions formetrics to better measure existing indicators or indicatorideas that are not currently applied and measured in theselisted sources. The new indicators, or new metrics forexisting ones, are subject to further analysis and review(likely by economists) and include:–Fundamental aspects of fair involvement–Enabling environment for independent media:having open and competitive digital media markets–Promoting, encouraging, and supporting localinitiatives in the field: removing barriers to innovationand encouraging local experimentation–Ensuring freedom, safety and security: looking atthe legal system’s efficiency regarding web securityand freedom, and privacy issues* This Index was partially developed but never completed nor published bythe World Economic ForumThe Digital Media Readiness Framework9

Indicator Metrics and SourcesThe following symbols are used to mark the metrics taken from previous World Economic Forum indices: content associated with the Networked Readiness Index content associated with the Global Competitiveness Index 2014-2015 content associated with the Index on Informed Societies*Indicators in purple are newly introduced and taken from other non-Forum sources/indices.* This Index was partially developed but never completed nor published by the World Economic ForumEnvironmentLegalJudiciary SystemRegulatory stance and policy-makingOVERVIEWEfficiency, independence, roles and responsibilitiesMETRICSA judiciary system can be evaluated based on the following:SOURCES101) Considerations (including adjudicating authority, sufficiency of application, evidentiary standards,format and court order, judicial oversight, investigatory proceedings and emergency procedures)2)Search process (scope, costs, requests, notifications, data governance, provider transparency, providerresponses and challenges)3)Appeals and remedies4) Independence5) Effectiveness of lawmaking bodies6) Well-developed laws relating to ICTs7) Number of procedures and days to enforce a contract8)International cooperation (choice of laws and procedures, authority of response, emergency procedures,safeguards and grounds for refusal)9) Transparency of government policy-making- Universal Implementation Guide for the International Principles on the Application of Human Rights to CommunicationsSurveillance 5f95db00e9 blm6ibrri.pdf)- Networked Readiness Index (The Global Information Technology Report 2015, World Economic Forum) hnology-report-2015/network-readiness-index/)- World Justice Project rld)- World Legal Information Institute (http://www.worldlii.org/)- World Bank Indicators Q)- Global Competitiveness Index 2014-2015 eness-index-2014-2015-dataplatform-2014)The Digital Media Readiness Framework

Fair InvolvementI. Enabling environment for independent mediaOVERVIEWOpen, competitive media marketsMETRICS1)Allowing media organizations to self-regulate2)Having policies that support innovation and investment across the entire ICT value chain3) Diversion of public fundsSOURCES- Huawei Global Connectivity Index (http://www.huawei.com/minisite/gci/en/)- Towards a Blueprint for Informed Societies (http://www3.weforum.org/docs/GAC13/WEF GAC InformedSocietiesTowardsBlueprintInformedSocieties Report 2013.pdf)- Delivering Digital Infrastructure: Advancing the Internet Economy (World Economic Forum, 2014) (http://www3.weforum.org/docs/WEF TC DeliveringDigitalInfrastructure InternetEconomy Report 2014.pdf)- World Legal Information Institute (http://www.worldlii.org/)- World Bank Indicators Q)- Global Competitiveness Index 2014-2015 eness-index-2014-2015-dataplatform-2014)II. Promoting, encouraging and supporting local initiatives in the fieldOVERVIEWMETRICSSOURCESRemoving barriers to innovation and encouraging local experimentation1)Targeted consolidation of digital infrastructure service providers to encourage service-level innovation inmarkets where fragmentation limits investments2) Favourable tax environment3)Level of freedom to establish new enterprise4)Regulations that encourage stakeholders to pursue cooperative business models to increase use ofinfrastructure and grow demand for digital services5)Ease of service-provider fragmentation in digital infrastructure, in regions where fragmentation increasescompetition- Digital Rights and Business: A Primer on Risks and Solutions for the ICT Sector (Access, 2015) (https://www.accessnow.org/page/-/docs/Digital Rights and Business Access 1.pdf)- TeliaSonera’s implementation of the Industry Dialogue’s Guiding Principles – 2015 eport/law-enfo-disc/idtable march2016 final.pdf)- Telco Action Plan – Respecting Human Rights: Ten Steps And Implementation Objectives For Telecommunications /1f9ab2891a86f3f081 uom6iil1w.pdf)- Networked Readiness Index (The Global Information Technology Report 2015, World Economic Forum) hnology-report-2015/network-readiness-index/)- Towards a Blueprint for Informed Societies (http://www3.weforum.org/docs/GAC13/WEF GAC InformedSocietiesTowardsBlueprintInformedSocieties Report 2013.pdf)- E-Intensity Index (World Economic Forum and The Boston Consulting Group) ve/telecommunications media entertainment bcg e intensity index/)- Offline and falling behind: Barriers to Internet adoption (McKinsey & Company, 2014) (http://www.mckinsey.com/insights/hightech telecoms internet/offline and falling behind barriers to internet adoption)- Delivering Digital Infrastructure: Advancing the Internet Economy (World Economic Forum, 2014) (http://www3.weforum.org/docs/WEF TC DeliveringDigitalInfrastructure InternetEconomy Report 2014.pdf)- Global Competitiveness Index 2014-2015 eness-index-2014-2015-dataplatform-2014)The Digital Media Readiness Framework11

III. Ensuring freedom, safety and securityOVERVIEWLooking at the legal system’s efficiency regarding web security and freedom, and privacy issuesMETRICS1)Regulations ensuring web neutrality2) Efficiency of intellectual property rights (licensing content/protecting rights)3)Level of content piracy4)Efficiency of online privacy rights (e.g. the right to be forgotten)5)Regulations to ensure data security6)Adherence to web neutrality rules7)Level of online freedom/freedom of expression and information8)Existence of guidelines enabling the efficient flow of data and services9) Software privacy rate, % of software installed10) Ranking according to the Freedom on the Net index11) Reliability of police services12) Quality of institutions13) Effectiveness of anti-monopoly policySOURCES- Access (Accessnow.org)- Networked Readiness Index (The Global Information Technology Report 2015, World Economic Forum) hnology-report-2015/network-readiness-index/)- Towards a Blueprint for Informed Societies (http://www3.weforum.org/docs/GAC13/WEF GAC InformedSocietiesTowardsBlueprintInformedSocieties Report 2013.pdf)- E-Intensity Index (World Economic Forum and The Boston Consulting Group) ve/telecommunications media entertainment bcg e intensity index/)- Offline and falling behind: Barriers to Internet adoption (McKinsey & Company, 2014) (http://www.mckinsey.com/insights/hightech telecoms internet/offline and falling behind barriers to internet adoption)- Global Competitiveness Index 2014-2015 OVERVIEWHaving long-term policies to ensure a thriving and healthy digital media, entertainment, and information (MEI)industryMETRICS1)Having policies that remove impediments to expanding digital infrastructure2)Having sustainable and modernized policies (creation and upgrades)3) Government spending on research and development (R&D)4) Importance of ICTs to government’s vision of the future5) Ranking in ITU’s ICT Development Index6) Ranking in ITU’s Digital Opportunity IndexSOURCE12- Delivering Digital Infrastructure: Advancing the Internet Economy (World Economic Forum, 2014) (http://www3.weforum.org/docs/WEF TC DeliveringDigitalInfrastructure InternetEconomy Report 2014.pdf)- Measuring the Information Society Report 2014 (ITU) ications/mis2014.aspx)- Digital Planet: Readying for the Rise of the e-Consumer (The Fletcher School, Tufts University) (http://fletcher.tufts.edu/eBiz/Index)- Global Competitiveness Index 2014-2015 eness-index-2014-2015-dataplatform-2014)The Digital Media Readiness Framework

BusinessInvestment/CapitalOVERVIEWThe availability of capital for funding innovation-related projects, financial market development, risk assessmentand evolution of resource channelsMETRICS1)Number of firms providing funding for tech start-ups or other digital media initiatives, as well as theamount of funds2)Advertising spend per person (increased ad spend per person equates to more investment in content,platforms and services)3)Amount of funds per person from institutional investments (private equity)4)Amount of funds per person from private investments (e.g. crowdfunding)5)Amount of funds per person from public-sector investments (e.g. government funding)6) Availability of venture capital7) Affordability of financial services8) Ease of access to loans9) Total tax rate, % profit10) Number of days to start a business11) Soundness of banksSOURCES- Delivering Digital Infrastructure: Advancing the Internet Economy (World Economic Forum, 2014) (http://www3.weforum.org/docs/WEF TC DeliveringDigitalInfrastructure InternetEconomy Report 2014.pdf)- Measuring the Information Society Report 2014 (ITU) publications/mis2014/MIS2014 without Annex 4.pdf)- Global Entertainment and Media Outlook 2015-2019 (PwC) -overview.html#segment)- Global Competitiveness Index 2014-2015 nOVERVIEWCompetition’s intensity in the digital realmMETRICS1) Intensity of local competition2)Proportion of money spent in digital MEI and advertising compared to traditional MEI, including advertising3)Total volume of MEI-related commercial transactions that flow through digital channels4)Total volume of non MEI-related commercial transactions that flow through digital channels5)Portion of digital vs non-digital advertising spend (see Group M’s worldwide media and marketing forecasts in its publication, This Year, Next Year)SOURCES- Networked Readiness Index (The Global Information Technology Report 2015, World Economic Forum) (http://www3.weforum.org/docs/WEF Global IT Report 2015.pdf)- E-Intensity Index (World Economic Forum and The Boston Consulting Group) ve/telecommunications media entertainment bcg e intensity index/)- Offline and falling behind: Barriers to Internet adoption (McKinsey & Company, 2014) (http://www.mckinsey.com/insights/hightech telecoms internet/offline and falling behind barriers to internet adoption)The Digital Media Readiness Framework13

Knowledge and Adopting TechnologyOVERVIEWAn economy’s overall shift towards more knowledge-intensive activities and investment in the latest and besttechnologiesMETRICS1) A measure of the investment in new technologies2)Corporate policies to expand ICT and use of digital MEI3) Absorbing technology at the firm level4) University/industry collaboration and investment in R&D5) Patent applications filed under the Patent Cooperation Treaty, per million people (population)SOURCES- Measuring the Information Society Report 2014 (ITU) publications/mis2014/MIS2014 without Annex 4.pdf)- Digital Planet: Readying for the Rise of the e-Consumer (http://fletcher.tufts.edu/eBiz/Index)- Global Competitiveness Index 2014-2015 eness-index-2014-2015-dataplatform-2014)Ethics, Accountability and EfficiencyOVERVIEWThe ethics, accountability and efficiency of private institutionsMETRICS1) Ethical behaviour2) Strength of auditing and reporting standards3) Strength of investor protection4) Efficient use of talent5) Availability of scientists and engineersSOURCE- Global Competitiveness Index 2014-2015 pecialized MEI EducationOVERVIEWAvailability of an education system that encourages creativity and the use of digital media while training theworkforceMETRICS1) Quality of the education system, with special focus on math

The Digital Media Readiness Framework 5 The first step in developing a working and useful framework is to identify and use indicators for measuring digital media readiness (DMR). The Digital Media Readiness Framework (DMR Framework) organizes relevant indicators into three main categories: 1. Environment: Legal, business, education and culture 2.

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