Digital life index


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The article discusses a recent Jupiter research that ranks the European countries based on their adotption proclivity of consumer digital technologies.

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Digital life index

  1. 1. TIM - Technion Institute of Management Page 1 of 3 Home | Site Map | Login Go | 11.06.06 Search: Newsletter News & Features Isreal's Digital Edge by Haim Oren* Events Current Program Websites We all have read during recent months, about the digital revolution that is FLP Calculator sweeping the world's leading economies. New digital technologies are being introduced in the US and the European markets, which are revolutionizing the ExecuTIM telecom, Internet, advertising, media and entertainment industries. News & Features We are witnessing an acceleration in in the rate of change in emerging consumer ExecuTIM event May 2006 digital technologies, technologies that did not exist 25 years ago, or even ten years Tomorrow's Crisis: The Dollar ago. We are seeing the emergence of digital consumer societies in Europe, the How to sell in China United States and the Far East. How to Do Business In India To assess the relative degree of digital penetration in each Western European country, Jupiter Research recently created a Digital Life Index (DLI). Jupiter Research scored 17 countries in Western Europe by 40 variables subdivided into the following key sophistication factors, with the European average equaling 100: TV adoption (digital TV) Wireless and mobile Online advertising and commerce Online activity (usage, e-commerce) Consumer Digital devices (PCs, DVD players, CD players, etc.) The following map demonstrates the emergence of digital lifestyle in Western Europe: NOTE: 100 equals European average. 11/06/2006
  2. 2. TIM - Technion Institute of Management Page 2 of 3 SOURCE: Jupiter Research Digital Life Index Model, 2/05 (Western Europe only) PUBLISHED: March 18, 2005 A clear geographic hierarchy of digital sophistication can be observed from the data, ranging from the most digitally developed Scandinavian markets (Sweden, Norway, and Denmark) to the least sophisticated southern European ones (Italy and Greece). Sweden has the highest European DLI score (124), followed closely by Denmark (118) and Norway (116). What are the implications of this study for Israel? The Scandinavian region, with countries that have captured the top places in this research, in terms of high DLI, has historically benefited from higher-than- average per capita gross domestic product (GDP), strong infrastructure development, and proactive state investment in information, communications, and technology. Their model holds key insights for decision makers in our government and academia. Israel was not included in the study, but I think it would have captured a mid-to- high position due to its: High penetration and usage of cellular telephones Very high Internet use/access One of the highest penetration rates of broadband in the world High household penetration of PCs, DVDs, digital cameras and video on demand (VOD) However, as I previously noted, the pace by which the global economy is moving requires the Israeli government to proactively invest in building its digital technologies sector, like the Scandinavian model. Strengthening the high-tech sector is an important parameter in our future economic development. It encourages the further growth of GDP, as we know that in years in which the high-tech sector showed high growth rates, it pulled the general economy to grow as well It helps to increase exports of the high-tech industry which account for 50% of Israel's industrial exports It generates jobs for the highly educated young employees who are coming out of the army and the universities The consumer digital revolution is a global mega-trend. Thus, the ability to leverage Israel's single most important national asset, which is our talented workforce and know-how, is a sine qua non in the race to become a member of the technologically advanced nations' club. Developing our digital edge seems to be one of our main keys to enter and remain in this club. The alternative is staying left behind with negative consequences to our global competitiveness, economic strength and standard of 11/06/2006
  3. 3. TIM - Technion Institute of Management Page 3 of 3 living. * Haim Oren is head of the Israeli office of Jupiter Research (NASDAQ MCGC), an international analyst firm that helps companies develop business strategies across online and emerging consumer digital technologies. Created by Consist © All rights reserved to TIM Terms & Conditions 11/06/2006