Measuring Digital Transformation

2019/SOM1/EC/WKSP2/004Measuring Digital TransformationSubmitted by: OECDWorkshop on the Digital Economy:Measurement, Regulation and InclusionSantiago, Chile6 March 2019

MEASURING DIGITALTRANSFORMATIONWorkshop on “The Digital Economy:Measurement, Regulation and Inclusion”6 March 2019, Santiago, ChileMr. Nikolai Malyshev, OECD

A wide-ranging digital transformation ofeconomies and societies is underwayDigital and other newproduction technologies havebecome pervasiveAutomation is becomingwidely deployedArtificial Intelligenceemerges as a newtechnological paradigm

This is creating a digital transformationmeasurement challenge The need forcomprehensive evidenceacross multiple policydomains .while facing gaps inindicator coverage,domestic coverage,timeliness, differences inmethodologies Source: OECD (forthcoming), Going Digital:Shaping Policies, Improving Lives.

including at the macroeconomic level GDP is an adequate concept to measure marketproduction, but in light of digital transformation, concernshave arisen over a number of areas – Prices and volumes– New forms of intermediation services– Free and subsidised consumer products– Consumers as producers– Certain assets not being measured– Cross border flows

G20 Toolkit for Measuring the Digital Economy 2017 G20 Roadmap for Digitalisation 2018 Argentina Presidency and the OECD, working with 6other International Organisations G20 MDE Toolkit: 35 indicators covering 4 dimensions of the digitaleconomy: a) infrastructure; b) society; c) innovation andtechnology adoption; d) jobs and growth Identification of gaps, challenges, availablemethodologies 15 measurement case studies from G20 members and 9initiatives from International Organisations Actions for improvement and measurement agendaSource: G20 Toolkit for Measuring the Digital Economy (2018)

35 indicatorsInfrastructure3.1 Investing in Broadband3.2 The rise of Mobile Broadband3.3 Toward higher Internet speed3.4 Prices for connectivity3.5 Infrastructure for the Internet of Things3.6 Secure servers infrastructure3.7 Household access to computers3.8 Household access to the InternetInnovation and technology adoption3.16 Research in machine learning3.17 AI-related technologies3.18 Robotisation in manufacturing3.19 R&D in information industries3.20 Supporting business R&D3.21 ICT-related innovations3.22 ICT Use by businesses3.23 Cloud computing servicesEmpowering society3.9 Digital natives3.10 Narrowing the digital divide3.11 People’s use of the Internet3.12 E-consumers3.13 Mobile Money3.14 Citizens interacting withgovernment3.15 Education in the digital eraJobs and growth3.24 Jobs in the Information Industries3.25 Jobs in ICT occupations3.26 ICT workers by gender3.27 E-Commerce3.28 Value added in information industries3.29 The extended ICT footprint3.30 ICT Investment3.31 ICT and productivity growth3.32 ICT and Global Value Chains3.33 Trade and ICT Jobs3.34 ICT goods as a percentage ofmerchandise trade3.35 Telecommunications, computer, andinformation services as a percentage ofservices trade

Source: OECD calculations based on ICT Access and Usage by Households and IndividualsDatabase, http://oe.cd/hhind; Eurostat; ITU, World Telecommunication/ICT Indicators Databaseand economy sources, June 2018

Top robot-intensive G20 economies,manufacturing, 2005 and 2015Industrial robot stock over manufacturing value added, millions USD, current values2015Robot intensity0.352005Robot .000.010.00Source: OECD calculations based on International Federation of Robotics data, and World Bank,World Development Indicators Database, 2017

Possible G20 actions going forward identified inthe toolkit Invest in comprehensive, high-quality, granular datainfrastructure (e.g. on individuals and firms by theirsocio-economic characteristics) Improve measurement of the digital economy inGDP (digital satellite accounts) Foster cooperation and countries’ adoption ofinternational methodological standards and bestpractices (e.g. definitions, classifications, statisticalsurvey tools) Promote partnerships with businesses and otherorganisations to improve collection of timelystatistics (including frameworks to facilitate accessto and sharing of data)

OECD Going Digital: report on Measuring theDigital TransformationProject Aims: Understand the digital transformation and itsimpacts on the economy and society. Provide policymakers with the tools needed todevelopaforward-looking,whole-ofgovernment policy response. Reduce the gap between technology and policydevelopment. Advance the Measurement Agenda

Insights into accessAverage monthly mobile datausage per mobile broadbandsubscription, GB, 2017 Network capacity will need to continue to expandin order to meet the rapidly increasing demand fordata.Source: OECD (2019), Measuring the Digital Transformation, based on Broadband -statistics, September 2018.

Insights into effective use of digital techEnterprises performing big data analysis, by size, 2018As a percentage of enterprises in each employment size class Most people and organisations use digital tools, butoften far from their potential. It is essential to addressbarriers – such as skills – to stronger uptake of moresophisticated online activities and wider diffusion of digitaltools.Source: OECD (2019), Measuring the Digital Transformation, based on OECD, ICT Access andUsage by Businesses Database, http://oe.cd/bus, December 2018.

Insights into trustIndividuals who did not buyonline for payment security orprivacy concerns, as a share ofInternet users, 2009, 2017 People, firms and governments must trust thatengaging in digital environments will bring morebenefits than downsides.Source: OECD (2019), Going Digital: Shaping Policies, Improving Lives.

The work also identified a measurementagenda for the futureStrengthen the evidence base now to better design policiesfor digital transformation in the future - 9 ACTIONS1. Make the digital transformation more visible in economic statistics2. Get the narrative on impacts right3. Measure wellbeing in the digital age4. Design new approaches to data collection5. Monitor transformative technologies (e.g. artificial intelligence)6. Improve the measurement of data and data flows7. Define and measure the skills needed in the digital era8. Measure trust in online environments9. Assess governments’ digital strengths

Thank youGoing Digital website:www.oecd.org/going-digitalComing soon (11 March):OECD (2019), Going Digital: Shaping Policies, Improving LivesOECD (2019), Measuring the Digital Transformation – A Roadmap forthe Future

Identification of gaps, challenges, available methodologies 15 measurement case studies from G20 members and 9 initiatives from International Organisations Actions for improvement and measurement agenda Source: G20 Toolkit for Measuring the Digital Economy (2018)