• News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
BW Businessworld

Boosting Productivity Digitally

According to a new study by Accenture, the use of digital technologies could boost productivity for the world’s top 10 economies and add $1.36 trillion to their total economic output in 2020.

The study reveals that an improvement of 10 points on a scale of 100 would see the annual GDP of the developed economies grow by 0.25 percentage points. A similar improvement will result in a spike of 0.50 percentage points for the emerging economies. This would give the US an uplift to GDP of $365 billion in 2020. Emerging economies, such as Brazil, India and China could see rises of between $97 billion and $418 billion.

Further, the politiical leaders can identify factors determining the digital strategy which would be best for their country. This can be used to channelise the investments accordingly. Accenture has identified 4 actions for the same.

Creating Digital Markets
This relates to the extent to which companies are using digital platforms to promote their products and engage the customers. As traditional industry boundaries continue to blur, governments need to focus on protecting consumers while collaborating with businesses to understand new business models and required skills.

Running Entrprises Digitally
This includes parts of a company's operations, R&D, supply chains, and the use of cloud, analytics and CRM technologies.

Sourcing Inputs
Tis includes key factors of production such as land, capital, talent, plant, and property accessible via digital technology. The use of IoT in technology will further accelrate the productivity.

Fostering Enablers
The degree to which the policy and regulatory environment fosters the adoption of digital business models while maintaining constituent trust. Although infrastructure, such as super-fast broadband and mobile broadband remain important to digital growth, governments should also focus on making it easier for entrepreneurs to use digital technologies to launch businesses.

As many companies strive to lift their growth and competitiveness, the Index can also be used to identify the “digital hotspots” around the world  that indicate where best a company should place different parts of its operations depending on that location’s comparative digital strengths. According to the analysis, the Netherlands ranks as having the highest digital density, followed by the USA, Sweden, South Korea, UK and Finland.

“As companies become more digitally enabled, so digital density should rank alongside access to natural resources, a good transportation system, and skilled people in their list of location criteria,” said Bruno Berthon, managing director, Digital Strategy, Accenture Strategy. “Being digitally competitive means applying new technologies to a range of performance areas, from sourcing labor and automating processes to creating new goods and services.  The Accenture Digital Density Index’s 50 indicators show that being digital cannot depend on a handful of well-intentioned but narrow initiatives. Improving digital competitiveness requires a broad, interrelated, programme of actions by governments and businesses.”

Tags assigned to this article:
economy gdp accenture othertop2 digital ajay gupta

Top themes and market attention on: