The increased use of digital technologies has the potential to increase India’s total economic output by $101 billion in 2020.
According to Accenture’s Digital Density Index report, a 10 point increase in digital density has the potential to lift the country’s GDP growth rate by 0.5 percent.
Digital Density is determined by a scorecard comprising over 50 indicators such as the volume of transactions conducted online, use of cloud technologies to streamline processes, etc.
Accenture’s case study looks at the impact of increased technology among the world’s top 10 economies, which could add US$1.36 trillion to the GDP of the world’s top 10 economies in 2020.
India ranks 17th in the list of Digital Density scores for top global economies.
“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.
While businesses and governments will have to collaborate at various levels to improve the effectiveness of technology use, Accenture has found four consistent factors:
Making digital markets: Governments need to rethink how they view disruptive new business models beyond outdated industry boundaries. For their part, businesses need to engage with governments in new ways.
Running enterprises digitally: Companies and governments should increase their use of digital technologies to transform key business processes to create greater leaps in efficiency and productivity.
Sourcing inputs: To keep growing and innovating, economies and businesses must use land, talent, capital, ideas, and other resources ever more effectively.
Fostering enablers: Digital requires a much broader range of enabling factors beyond technology infrastructure.
- Making it easier for entrepreneurs to launch digital businesses
- Streamlining and simplifying market rules to reflect the degree of commerce
- Initiatives to develop digital skills
- Trust in businesses and governments that personal data will be handled responsibly
For more details follow the link (PDF).