Intelligent CIO Africa Issue 03 | Page 24

COUNTRY FOCUS Government may be biggest laggard The Global Information Technology Report 2016 data suggests that business usage and adoption is stagnating or moving only slowly across regions. This suggests that a large number of existing firms are not getting in the game fast enough. particularly in industries with high digital content, at the same time that innovation is accelerating. Several reasons for this slowdown are put forward: one driver is the shortening of product cycles, which is especially evident in industries, such as audio-visual technologies and telecommunications, that are most affected by digital disruption. In addition, patent pendency times have been rising. These two developments combined often make it unprofitable for firms to patent their innovations. In addition, the pressure to innovate has increased to such an extent that many firms are focusing their resources entirely on cost-saving efficiency innovation rather than attempting moonshots. Thus, although digital innovation is accelerating, the expectation is that these trends will be captured less and less well by traditional innovation measures in the future. What makes top countries stand out Although innovation is clearly on executive minds, seven countries truly stand out in terms of their digital innovation performance. A closer look at their characteristics reveals very high rates of business ICT adoption and an innovation environment. The seven countries include: Finland, Switzerland, Sweden, Israel, Singapore, Netherlands, and United States. The data reveal some striking patterns: top ranks in business usage of digital technologies. More particularly, this means these countries perform especially well on 24 INTELLIGENTCIO the combination of technology absorption by firms, innovation capacity, patenting, and business-to-business and business-to- consumer Internet use as well as ICT staff training. In addition to having very high levels of business ICT use, the top seven rank highly in terms of business and innovation environment as well as in individual technology usage. To the extent that digitisation allows for faster processes, speed in bringing new innovations to market is the most crucial factor in becoming a top firm in the digital age. Because digital technologies are driving winner-takes-all dynamics for an increasing number of industries, getting there first matters. A crucial ingredient for innovation will continue to be talent competitiveness. A widening and worrying gap is also emerging between growth in individual ICT usage and public-sector engagement in the digital economy, as government usage is increasingly falling short of expectations. Governments can do more to invest in digital solutions to drive social impact. Furthermore, an expectations gap has opened up with respect to public-sector performance in using and promoting digital technologies. The upward trend in government usage observed up to 2013 is slowly being reversed in all regions of the world. Governments are seen to be falling behind in terms of using digital technologies efficiently for social impact. Yet it does not have to be the government alone that is driving social outcomes. ICT can be used in many innovative ways to achieve social impact—in facilitating access to basic services. Even in cases where the government remains firmly in charge of the system, access to the system can be facilitated by digital technologies and private initiative. Workers in the digital economy Digital technologies are unleashing new economic and social dynamics that will need to be managed if the digital Networked Readiness Index represents a tool in assessing country preparedness to reap the benefits of emerging technologies and capitalise on opportunities presented by digital transformation. www.intelligentcio.com