Thriving digital systems that drive relevant local content, services and businesses, as well as the rapid adoption of innovation from elsewhere, are key to including and benefiting the 2.9 billion people who remain offline. The performance enhancements offered by each new generation of technology drastically impacts and often improves societies. They can also provide new economic opportunities and have the potential to overcome the historic barriers (e.g. access, geographic location) that have prevented people, mostly in developing countries, from participating and contributing to their economies.

New services spur growth as technologies reach into practically all aspects of everyday life. As aspects of daily life turn more digital, so too should the appropriate information, products and services. Now is the time to accelerate the digital transformation of societies through an inclusive whole-of-ecosystem approach[90] that nurtures entrepreneurship, innovation, start-ups, SMEs, trade, and job creation, through collaborative policy and regulation practices supported by data. This is an approach that also values and pivots around ICT and networks at its core. Yet, technology alone cannot realize the transition to a fully digital economy and society.

A digital economy and society include all activities that are reliant on, or significantly enhanced by, the use of digital inputs including:

  • Technologies: smartphones, robotics and automation – the tools and products that support day-to-day work
  • Infrastructure: connectivity to be online
  • Services: the processes and business models that enable end-to-end service such as digital platforms, applications and software
  • Data: the basic element that can be processed including facts, statistics, instructions, and concepts
  • Regulatory frameworks: the standards that underpin the operation of digital technologies and infrastructure and oversee the efficient, safe and reliable functioning of the digital economy
  • Capabilities and skills: the application of skills and knowledge that ensures people are able to use digital technologies and participate in society

All businesses, consumers and governments that use and are responsible for these inputs are part of a digital economy and society.

Today’s world is characterized by rapidly changing technological developments and digital transformations that are resulting in driving great evolution.  Across an increasing number of services, there is a proliferation of new concepts, such as ‘digital identity’, and innovations being made to principles like consumer rights, confidentiality and data protection. All stakeholders in the ecosystem, especially regulators and policy-makers, now deal with profound changes that have far-reaching consequences.

People’s access to, adoption of, and engagement with digital technologies throughout the economy are the key determinants of success in the digital age. The availability of fast and affordable Internet access combined with the digital skills of the population drive both labour-market participation and consumer activity. In turn, as the participation of workers and consumers increases, so too does the demand for fast and affordable connectivity and the skills necessary to share in this growth.

The digital ecosystem can be thought of as being based on three key areas:

  • Fundamentals to support the ecosystem – consumers; businesses; digital products, applications and services; digital banking and finance; and laws, regulations and policies
  • Capability to adopt emerging technologies
  • Digital growth priorities:
    • Boosting the digital capabilities of small to medium enterprises (SMEs)
    • Building a dynamic technology sector
    • Delivering simple and secure digital government services

Developing countries – especially LDCs, LLDCs and SIDS – can still advance their digital ecosystems further. To foster the growth of these ecosystems, countries need to have key enablers in place. The map in Figure 20 shows countries’ digital readiness based on seven components: basic needs, business and government investment, ease of doing business, human capital, the start-up environment, technology adoption, and technology infrastructure.

Through the digital ecosystem, all sectors and aspects of people’s lives are impacted by digital technology. E-commerce allows everyone to buy things online. E-health, e-agriculture and e-education are among several other sectors where innovation has created opportunities for value creation.

Figure 20: Global Digital Readiness Index [91]

Disclaimer: The designations employed and the presentation of material on this [map/infographic] do not imply the expression of any opinion whatsoever on the part of ITU and of the Secretariat of the ITU concerning the legal status of the country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries

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Footnotes

[90] OECD. (2021). Development Co-operation Report 2021.
[91] CISCO. (2020). Digital Readiness Index.