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Article
Publication date: 7 January 2014

Raul Katz, Pantelis Koutroumpis and Fernando Martin Callorda

The purpose of this paper is to measure the cumulative, holistic impact of discrete information and communication technologies. It also provides a glimpse of applications

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Abstract

Purpose

The purpose of this paper is to measure the cumulative, holistic impact of discrete information and communication technologies. It also provides a glimpse of applications and service adoption, which complements more traditional perspectives such as technology penetration. This approach is utilized to measure achievements in implementing a policy such as Europe's Digital Agenda.

Design/methodology/approach

Measuring digitization should cover the transition to digitally intensive societies across multiple sets of metrics, capturing not only technology penetration, but also its use in order to understand the full impact of digitization. For this purpose, a composite index was developed based on six overarching components: affordability, infrastructure investment, network access, capacity, usage, and human capital.

Findings

These concepts were utilized to assess Europe's performance in terms of its digitization. Significant gaps were highlighted both in terms of its uneven development, but also in terms of lags in the areas of infrastructure investment and digital technology usage. The economic payback to be generated by pro-actively addressing these gaps promises to be significant.

Practical implications

From a policy standpoint, the paper raises an interesting hypothesis to be explored in the European context: while the implementation of the Digital Agenda could be tackled in an overarching continental manner, particularities in each member country digitalization might raise the need for a more differentiated approach. In particular, European countries at the transitional stage should emphasize the creation of necessary incentives to accelerate investment in telecommunications networks. Additionally, demand promotion strategies focused on digital literacy and content development appear to be a critical lever to enhancing digitization. On the other hand, the policy challenges for the advanced countries appear to cluster around investment in infrastructure and the development of human capital.

Originality/value

Previous attempts to measure the impact of ICT have focused primarily on measuring and assessing the economic effects of widespread access to either wireless or broadband technology. This approach puts additional emphasis on two dimensions: cumulative impact of information and communication technologies and usage.

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Article
Publication date: 3 May 2013

Raul L. Katz, Pantelis Koutroumpis and Fernando Callorda

Digitization is defined as the social transformation triggered by the massive adoption of digital technologies to generate, process, share and transact information. This

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Abstract

Purpose

Digitization is defined as the social transformation triggered by the massive adoption of digital technologies to generate, process, share and transact information. This paper seeks to present a methodology followed to calculate the Digitization Index, a concept originally developed by Booz & Company, the global management consulting firm, with the support of the authors.

Design/methodology/approach

This index consists of six elements capturing Ubiquity, Affordability, Reliability, Speed, Usability and Skill and 24 sub‐indicators measuring tangible parameters of perceived digitization metrics.

Findings

The index indicates that countries are clustered as Digitally Constrained, Emerging, Transitional or Advanced, with varying degrees of contribution of digitization to economic growth. The Index is used to assess the situation of Latin American countries in terms of their progression to digitally advanced societies. In this context, the areas to focus on in the formulation of Latin America digital agenda are outlined.

Originality/value

Until now, most indices that measure progress towards this new era have focused primarily on metrics such as wireless telephony penetration, access to the internet and broadband adoption. The paper argues that these indices, even those that are more comprehensive in scope (Network Readiness Index by the World Economic Forum, or the Digital Opportunity Index by the International Telecommunication Union) capture only a portion of the ongoing transformations.

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Article
Publication date: 7 January 2014

Luciano Morganti and Karen Donders

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388

Abstract

Details

info, vol. 16 no. 1
Type: Research Article
ISSN: 1463-6697

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