|•Do digital technology firms from emerging/developing markets have greater opportunities than firms from developed/advanced markets in the next decade? An essay requires the systematic investigation of a topic and the development of a written argument.|
|Instruction:||This is an Essay Assignment (2000 words)This essay REQUIRES the systematic investigation of a topic and development of a written argument. Need to choose a topic on Digital technology firms.First, read the following article. (will upload the article)Do digital technology firms from emerging/developing markets have greater opportunities than firms from developed/advanced markets in the next decade?An essay requires the systematic investigation of a topic and the development of a written argument. Essays assess cognitive and research skills. Essays are expected to develop coherent arguments, be founded on thorough research, and provide insight into the topic area.In undertaking this assignment students’ need to:|
• Research the topic in an in-depth manner
• Provide a critical perspective of the literature on a topic
• Construct a sustained argument in response to the question/statement using concepts, theories and models relevant to BUS202And i will also provide some theories relevant.Please do not write on article only.GLOBAL STRATEGY 60 Countries’ Digital Competitiveness, Indexed by Bhaskar Chakravorti, Ajay Bhalla, and Ravi Shankar Chaturvedi JULY 12, 2017 Neasden Control Centre for HBR It is barely 20 years since Sergey Brin and Larry Page registered the domain name google.com, and only 10 years since Steve Jobs walked onto a stage in San Francisco and introduced the iPhone. Yet in this short period, digital technologies have upended our world. We introduced the Digital Evolution Index in HBR in 2015 to trace the emergence of a “digital planet,” how physical interactions — in communications, social and political exchange, commerce, media and entertainment — are being displaced by digitally mediated ones. We identified many hotspots INSIGHT CENTER Crossing the Digital Divide SPONSORED BY DXC TECHNOLOGY How the best companies get up to speed. around the world where these changes are happening rapidly and other spots where momentum has slowed. Two years on, depending on where we live, we continue to move at different speeds toward the digital planet. Today’s Digital Landscape While much has changed even since 2015, there are roadblocks on the journey that have remained surprisingly resilient. Consider the five most salient features of today’s digital landscape. Digital technology is widespread and spreading fast. There are more mobile connections than people on the planet, and more people have access to a mobile phone than to a toilet. Crossborder flows of digitally transmitted data have grown manifold, accounting for more than onethird of the increase in global GDP in 2014, even as the free-flow of goods and services and crossborder capital have ebbed in the aftermath of the 2008 recession. While more people can benefit from access to information and communication, the potential for bad actors to create widespread havoc increases; with every year, the incidents of cyberattacks get bigger and have wider impact. Digital players wield outsize market power. Based on their stock prices on July 6, 2017, Apple, Alphabet, Microsoft, Amazon, and Facebook were the five most valuable companies in the world. The most valuable nonAmerican company, 7th overall, was China’s ecommerce giant, Alibaba Group. With products that rely on network effects, these players enjoy economies of scale and dominant market share. They have deep resources for innovation with the ability to accelerate the penetration and adoption of digital products. Digital technologies are poised to change the future of work. Automation, big data, and artificial intelligence enabled by the application of digital technologies could affect 50% of the world economy. There is both anticipation and apprehension about what lies on the other side of the threshold of the “second machine age.” More than 1 billion jobs and $14.6 trillion in wages are automatable by today’s technology, which could open the door to new ways to harness human energy as well as to displacing routine jobs and increasing social inequities. Methodology Digital markets are uneven. Politics, regulations, and levels of economic development play a major role in shaping the digital industry and its market attractiveness. With the world’s largest internet user population – 721 million – China has a parallel digital market because so many of the major global players have no presence there. India, with its 462 million internet users, has a digital economy representing arguably the greatest market potential for global players; however, it operates in multiple languages and multiple infrastructure challenges, despite the government having taken sweeping actions that affect the digital market. The European Union has 412 million internet users, but its market is fragmented; it is still in the process of creating a “digital single market.” In many countries, several websites or digital companies are blocked. Around the world, digital access itself is far from uniform: Barely 50% of the world’s population has access to the internet today. Digital commerce must still contend with cash. Retail e-commerce sales worldwide are expected to hit $4 trillion by 2020, about double of where it is now. A major hurdle is the continuing stickiness of cash, which has not been displaced by digital alternatives despite myriad options. In 2013 85% of the world’s transactions were in cash. While the Netherlands, France, Sweden, and Switzerland are among the least cash-reliant countries in the world, even in the Eurozone, 75% of point-of-sale payments are in cash. Most of the developing world is overwhelmingly cashdependent; in Malaysia, Peru, and Egypt, only 1% of transactions are cashless. Even India’s demonetization experiment has not broken the country’s heavy cash dependence. Five months after the country demonetized 86% of its currency, cash withdrawals were actually 0.6% higher than a year earlier. Each of these five features contains both upsides and challenges. Moreover, how strongly each of them is felt varies depending on where you are in the world. For global technology players and policy makers, it is essential to understand how the progress toward a digital planet is proceeding in different parts of the world. Mapping Digital Momentum Around the World As part of a collaboration between the Fletcher School at Tufts University and Mastercard, we created the Digital Evolution Index and analyzed the state and rate of digital evolution across 60 countries. This evolution is the outcome of an interplay among four drivers, with about 170 indicators across them (see sidebar). Our inquiry started with the following questions: The drivers and key components we analyzed are as follows: 1. Supply conditions. This category includes three types infrastructure: access infrastructure (communications sophistication and coverage, as well as security); transaction infrastructure (access to ?nancial institutions and electronic payment options); and ful?llment infrastructure (quality and performance of logistics and transportation infrastructure). 2. Demand conditions. This category measures how digitally engaged consumers are. Are they willing and able to spend online? Do they use the digital payment options available to them? How much do they actually use the digital devices, mobile connections, and so on that are available to them? Is there a digital gender gap, and if so, how large is it? 3. Institutional environment. With this category, we assessed the legal environment (including IP and investor protections) as well as how much the government used digital technology. We also measured broader concerns such as transparency, rule of law, and regulatory quality. 4. Innovation and change. In this category, we primarily looked at three subcategories: inputs (?nancing options, talent retention, startup capacity), process (how sophisticated are ?rms’ business processes, and what’s the level of R&D?), and outputs (what’s the degree and richness of connectivity across networks including mobile devices, digital entertainment, social media, etc. that 1. What are the patterns of digital evolution around the world? What factors explain these patterns, and how do they vary across regions? 2. Which countries are the most digitally competitive? Which actors are the prime drivers of competitiveness: public or private sector? 3. How do countries accelerate their digital momentum? By measuring each country’s current state of digital evolution and its pace of digital evolution over time, we created the following chart, a map of our digital planet (see chart below). Countries on this chart fall into four zones: Stand Out, Stall Out, Break Out, Watch Out. Some countries are at the border of multiple zones. Stand Out countries are highly digitally advanced and exhibit high momentum. They are leaders in driving innovation, building on their existing advantages in efficient and effective ways. However, sustaining consistently high momentum over time is challenging, as innovation-led expansions are often lumpy phenomena. To stay ahead, these countries need to keep their innovation engines in top gear and generate new demand, failing which they risk stalling out. Stall Out countries enjoy a high state of digital advancement while exhibiting slowing momentum. The five top scoring countries in the DEI 2017 ranking — Norway, Sweden, Switzerland, Denmark, and Finland — are all in help propagate new products, ideas and business models?). We also examined the competitiveness of a country’s digital economy along two dimensions: its current state of digital evolution, as determined by the interplay of the four drivers mentioned above, and its pace of digital evolution over time, as measured by the growth rate of a country’s digital evolution score over the period 2008 – 2015. This growth rate, which we refer to as momentum, is a lead indicator of a country’s future digital potential and prospects. the Stall Out zone, reflecting the challenges of sustaining growth. Moving past these “digital plateaus” will require a conscious effort by these countries to reinvent themselves, to bet on a rising digital technology in which it has leadership, and to eliminate impediments to innovation. Stall Out countries may look to Stand Out countries for lessons in sustaining innovation-led growth. Countries in the Stall Out zone can put their maturity, scale, and network effects to use to reinvent themselves and grow. Break Out countries are low-scoring in their current states of digitalization but are evolving rapidly. The high momentum of Break Out countries and their significant headroom for growth would make them highly attractive to investors. Often held back by relatively weak infrastructure and poor institutional quality, Break Out countries would do well to foster better institutions that can help nurture and sustain innovation. Break Out countries have the potential to become the Stand Out countries of the future, with China, Malaysia, Bolivia, Kenya, and Russia leading the pack. Watch Out countries face significant challenges with their low state of digitalization and low momentum; in some cases, these countries are moving backward in their pace of digitalization. Some of these countries demonstrate remarkable creativity in the face of severe infrastructural gaps, institutional constraints, and low sophistication of consumer demand. The surest way for these countries to move the needle on momentum would be to improve internet access by closing the mobile internet gap — that is, the difference between the number of mobile phones and the number of mobile phones with internet access. Notably, two of the world’s most significant economies, the U.S. and Germany, are at the border of Stand Out and Stall Out, with a third, Japan, in the neighborhood. It is essential for them to recognize the risks of plateauing and look to the smaller, higher-momentum countries to explore how policy interventions could be effective in pushing a country into a zone of greater competitiveness. In the meantime, the UK’s digital momentum is stronger than its EU peers. Clearly, the most exciting region in the world, digitally speaking, is Asia, with China and Malaysia as exemplars. We can expect to see plenty of investor and entrepreneurial interest in this region; it is critical that the political institutions are stable and supportive. India, with many policy-led pushes for digitalization, including a Digital India campaign and initiatives to give a boost to digital payments, ought to pay attention to the overall low level of evolution in the country. This can act as a drag on any initiative. Broader, more systemic changes are needed to boost digital evolution in this type of environment. In Africa, while the two largest economies, Nigeria and South Africa, remain in Break Out and Watch Out zones, respectively, digitally savvy Kenya has picked up an impressive level of momentum by assembling a thriving ecosystem. In parallel, countries in Latin America can learn some lessons from smaller, faster-moving countries, such as Colombia and Bolivia. Toward a Digital Planet Our analysis of digital evolutions yields several implications for both public- and private-sector leaders as they explore ways to enhance the state of the digital economies across the world. First, more digital innovators should recognize that public policy is essential to the success of the digital economy. Countries with high-performing digital sectors, such as those in the EU, typically have had strong government/policy involvement in shaping the digital economies. So do high-momentum countries (such as Singapore, New Zealand, and the UAE) as well as many Break Out countries (including China, Malaysia, and Saudi Arabia). As for the U.S., it is at risk of falling into the Stall Out zone. One of us (Bhaskar) has made the point that there is a “missing political debate” in the U.S. over the digital economy, despite that fact that American digital companies and innovations are pre-dominant worldwide. To avoid stalling out and rebuilding momentum, policies need to be adopted for: public-private partnerships on digital innovations; better integration of automation, data, and new technologies into the legacy economy; investments in reskilling workers and teaching students in schools the skills and thinking to thrive in a digital world; improving access to capital and digital infrastructure and reducing the many inequities; sensible regulations that keep pace with the transforming rules of competition and have a dynamic view of protecting consumers’ interests without stifling innovation; and reimagining U.S. competitiveness in terms of its digital economy and international data flows and thinking beyond traditional manufacturing and trade of physical goods and services. Within the digital entrepreneurship sector, IPOs and exits have not been keeping pace with the record sums of capital being pumped in. More sensible and value-creating investments are needed, rather than a herd mentality that has resulted in a stampede of unicorns, while starving more complex, less fad-driven venture ideas that take on deeper problems. Second, those working to accelerate their country’s digital momentum should focus on specifics: identifying and amplifying the country’s unique drivers of digital momentum. Depending on a country’s level of digital evolution and economic advancement, there are different drivers that are primarily responsible for digital momentum. This has different implications for what advanced economies and developing economies ought to prioritize: innovation for the former and institutions for the latter. The least digitally advanced countries must allocate limited resources wisely. Enabling internet access on the mobile phone provides the biggest bang for the buck. Country size is also a factor. Smaller countries with strong institutions can create high value as early adopters and create a demonstration effect for the world by assembling the right ecosystem. Traditional trading hubs (such as Hong Kong, Singapore, and the UK) and emerging digital hubs (such as New Zealand and Estonia) can take the lead in creating such “smart” digitally enabled ecosystems. In conclusion, the world’s digital economy stands at a threshold where opportunity and risk stand in balance. Even in the short period since we published the previous edition of the Digital Evolution Index, much has changed in the journey to the digital planet, and just as surprising, there are many speed bumps scattered along the way. Clearly, much of this has to do with the digital momentum being experienced in countries around the world, as well as with the systemic nature of the forces that govern digital evolution. Without question, the Stand Out and Break Out countries are benefiting from a combination of the strong rates of digitalization and the involvement of governments in orchestrating digital economies. Will the world order as portrayed in this year’s Digital Evolution Index get overturned as transformational technologies, such as artificial intelligence, cause widespread changes or regulatory and political considerations add to the unevenness of digital markets? The picture that summarizes the state of the digital planet will evolve when it does. Authors’ note: We are deeply grateful to Michaela Beck, Desmond Choong, Christina Filipovic, Yuwa Hedrick-Wong, Cassandra Pagan, Caroline Troein, Paul Trueman, and Christopher “Rusty” Tunnard, whose expertise, analyses, and insights have been essential for this research. Editor’s note: Every ranking or index is just one way to analyze and compare companies or places, based on a specific methodology and data set. At HBR, we believe that a well-designed index can provide useful insights, even though by definition it is a snapshot of a bier picture. We always urge you to read the methodology carefully. Bhaskar Chakravorti is the Senior Associate Dean of International Business & Finance at The Fletcher School at Tufts University and founding Executive Director of Fletcher’s Institute for Business in the Global Context. He is the author of The Slow Pace of Fast Change. Ajay Bhalla is President, Global Enterprise Risk and Security, responsible for ensuring the safety and security of the Mastercard global network. He also serves on the company’s Management Committee and is a Senior Fellow at The Fletcher School’s Council on Emerging Market Enterprises. Ravi Shankar Chaturvedi Ravi Shankar Chaturvedi is Associate Director for research and Doctoral Research Fellow for Innovation and Change at Fletcher’s Institute for Business in the Global Context at Tufts University. Related Topics: INTERNET | ECONOMY This article is about GLOBAL STRATEGY ? FOLLOW THIS TOPIC Comments Leave a Comment POS T REPLY 0 ? 0 ? 5 COMMENTS Anjan Bhattacharjee a day ago Good article. But four quadrant placement and the overlaps of transition zones seem to be subjective. Methodologies of research data collection and weightages of point value allocation is not clear for readers to agree to the ?ndings. POSTING GUIDELINES We hope the conversations that take place on HBR.org will be energetic, constructive, and thought-provoking. To comment, readers must sign in or register. And to ensure the quality of the discussion, our moderating team will review all comments and may edit them for clarity, length, and relevance. Comments that are overly promotional, mean-spirited, or off-topic may be deleted per the moderators’ judgment. All postings become the property of Harvard Business Publishing. ? JOIN THE CONVERSATIONIndividual assignment – EssayFirst, read the following articleChakravorti, B., Bhalla, A., and Chaturvedi, R. (2017) ‘60 Countries Digital Competitiveness, Indexed’, Harvard Business Review, JulyStudents will then be required to write a 2000-word essay that provides an analysis of the following statement/question:Do digital technology firms from emerging/developing markets have greater opportunities than firms from developed/advanced markets in the next decade?An essay requires the systematic investigation of a topic and the development of a written argument. Essays assess cognitive and research skills. Essays are expected to develop coherent arguments, be founded on thorough research, and provide insight into the topic area.In undertaking this assignment students’ need to:Research the topic in an in-depth mannerProvide a critical perspective of the literature on a topicConstruct a sustained argument in response to the question/statement using concepts, theories and models relevant to BUS202Your essay should incorporate at least 15 different references. These should be sourced from the following:Academic articlesRelevant books (but not including your allocated textbook)Periodicals (e.g. The Economist etc)Students are expected to maintain an appropriate standard in presenting their essay Remember to acknowledge your sources throughout the paper using the Harvard referencing system. The report is to be typed and 1.5 spaced (a standard 12 point font should be used). Students are expected to maintain an appropriate standard in presenting their essay. It should be checked for spelling, consistency and clarity of expression. The marking rubric for the essay will be available.