1. Making the digital transformation work for economies and societies
CREATIVE INDUSTRIES IN THE DIGITAL CONVERGENCE ERA
11 October 2017
Eiffel Tower
Paris, France
Making the digital transformation work for economies and societies
Vincenzo Spiezia
Senior Economist

2. Digitalisation is not new…
IBM 360 (1964) – the first commercial mainframe

3. … but the advent of ubiquitous computing is …
Quarterly shipping trends of smartphones,
2005
2013
Sources: and OECD Broadband Portal

4. … and the ICT sector as a driver of innovation …
Specialisation in ICT-related patents,
Patents in ICT as a percentage of total IP5 patent families

5. … gains new momentum with IT services and software ...
Growth of employment in the ICT sector and its sub-sectors
OECD area, USD current prices (2008 = 100)

6. … with artificial intelligence creating promising opportunities …

7. … as part of a bigger ecosystem that is driving digital transformation.

8. To seize the benefits of the digital transformation, we need to set the right foundations

9. The foundations for digital transformation
Connectivity
Effective use
Enhanced security
Policy co-ordination

10. Connectivity keeps improving with falling average prices and fast growth in mobile data usage

11. Fixed broadband subscriptions are growing …
Fixed broadband subscriptions, December 2016
By technology per 100 inhabitants

12. … but fibre is still low in many countries.
Fixed broadband subscriptions, December 2016
Fibre connections per 100 inhabitants

13. Mobile broadband subscriptions are at a new high …
Subscriptions per 100 inhabitants

14. Prices for fixed and mobile broadband keep falling …
OECD trends in fixed and mobile broadband prices,

15. Top five countries in mobile data usage
… mobile data usage is growing fast with a few countries pressing ahead…
Top five countries in mobile data usage
Gigabytes per mobile broadband subscription per month

16. Mobile data usage per mobile broadband subscription, 2016
… but not everywhere.
Mobile data usage per mobile broadband subscription, 2016
Gigabytes per month

17. Infrastructure and connectivity are not enough: governments must foster more effective use of advanced digital technologies

18. The young and educated are leading on Internet usage …
Internet users by age and educational attainment, 2016
As a percentage of the population aged 16-24
High
All
Low

19. … while elderly and less educated individuals lag behind …
Internet users by age and educational attainment, 2016
As a percentage of the population aged 55-74
High
All
Low

20. … and much potential remains for more sophisticated usage.
Diffusion of selected online activities among Internet users, 2016
As a percentage of Internet users performing each activity

21. Governments must step up efforts to empower people with the skills needed to succeed in a digital world and broaden access to digital opportunities for all actors

22. Generic ICT skills are already much in use, but often insufficient …
Workers using office productivity software at work every day
As a percentage of total population

23. … and digital transformation raises demand for ICT specialists …
Top ten jobs that employers have difficulty filling, 2016
Rank
Job 1
Skilled trade workers 2
IT staff 3
Sales representatives 4
Engineers 5
Technicians 6
Drivers 7
Accounting and finance staff 8
Management/executives 9
Production/machine operations 10
Office support staff

24. … who are still rare in many countries and mostly male …
ICT specialists by gender, 2016
As a percentage of all male and female workers

25. In particular firms could make better use of advanced ICT tools to boost productivity

26. Almost all firms are connected …
Enterprises’ broadband connectivity, by firm size, 2016
As a percentage of enterprises in each employment size class

27. … but firms could make greater use of advanced ICT tools.
Diffusion of selected ICT tools and activities in enterprises, 2016
As a percentage of enterprises with ten or more employees

28. Governments have a lot to gain with digital, but need to make greater efforts.

29. Governments need to move on from e-government services …
Use of e-government services by individuals and businesses
As a percentage of individuals and businesses interacting with public authorities online

30. … towards digital government.
Open government data availability and accessibility, 2017
Index

31. Growing digital security, privacy and consumer risks hamper digital opportunities: governments need to address digital risk strategically to achieve economic and social goals

32. Numerous individuals experience digital security incidents …
Digital security incidents experienced by individuals, 2015 or later
As a percentage of all individuals and by level of educational attainment

33. … as well as privacy violations.
Individuals having experienced privacy violations in the last three months
As a percentage of all individuals

34. Many businesses are ramping up security measures …
Deployment of encryption by businesses worldwide

35. … and are putting policies in place to manage digital privacy risks.
Enterprises having a formal policy to manage digital privacy risks, 2015
As a percentage of all enterprises in each employment size class

36. For the digital transformation to spur growth and social prosperity, countries need governance model that achieves coherence and effective co-ordination

37. Governments face many challenges…
Governments’ main challenges to achieve digital policy objectives
Main challenges in 2017
Main challenges next 3-5 years
Awareness, implementation, enforcement 1
Co-ordination
Skills, training, education 2 3
Public investment or funding
Policy design and measures 4
Technical, including standards and interoperability
Laws or regulation 5
Trust, including privacy, security, consumer protection 6
Laws and regulation
ICT adoption, business digitalisation, innovation 7 8
Private investment or access to finance 9 10

38. …but need need an effective model for co-ordination
National digital strategy governance
Number of countries that have allocated respective responsibilities
Lead the development
Contribute input
Co-ordinate
Government, e.g. Prime Minister, Presidency, Chancellery, etc. 4 5
Digital affairs ministry or body or ministerial position 8 1 10
Ministry or body not dedicated to digital affairs 15 2 13
Several ministries, bodies or institutions 6 14
Multiple public and private stakeholders 17

39. Policy messages
Digital opportunities abound, but they must be equally harnessed by all
Infrastructure and connectivity are essential but not enough: effective use of advanced digital technologies is key
Legacy frameworks to be revised to embrace the potential of digital innovation while mitigating its social cost
Digital security, privacy and consumer risks to be addressed strategically to achieve economic and social goals
A whole-of-government approach and more cooperation across countries are needed
The promises of technologies, e.g. AI and blockchain, hinge on grappling with technical hurdles and policy challenges

40. Making the Transformation Work for Growth and Well-being
What’s NEXT?
Going Digital
Making the Transformation Work for Growth and Well-being
Understand the digital transformation and its impacts on the economy and society
Provide policymakers with the tools needed to develop a forward-looking, whole-of-government policy response
Help overcome the gap between technology and policy development