The Digital Economy Now Affects A Quarter Of The Global Economy: Study

The Digital Economy Now Affects A Quarter Of The Global Economy: Study
SHARE
THIS



Economic activity involving digital skills or capital – the digital economy – now represents 22.5 per cent of the total world economy according to an analysis by Accenture Strategy and Oxford Economics.

That analysis suggests that “…the smarter use of digital skills, technologies and other assets could boost productivity and generate US$2 trillion of additional economic output by 2020.”

Indeed digital investments act as a growth multiplier, says Mark Knickrehm, Bruno Berthon and Paul Daugherty, the authors of “Digital disruption: The growth multiplier.”

“Take the United States where adjustments in investments in digital skills, digital technologies and digital accelerators in line with our calculations could see the nation increase its gross domestic product by 2.1 percent—which equates to US$421 billion in 2020.”

The GDP impact of digital density optimisation: Accenture
The GDP impact of digital density optimisation: Accenture

The digital economy s described as “The share of total economic output derived from a number of broad “digital” inputs. These digital inputs include digital skills, digital equipment (hardware, software and communications equipment) and the intermediate digital goods and services used in production.”

In the study, Accenture says the digital appraofch of 11 national economies was evaluated across 12 industries.

“Typically, measures of the digital or Internet economy have focused largely on technology infrastructure, IT and communications sector investment, eCommerce, and broadband penetration rates. But this does not account for the whole scope of digital. Using a groundbreaking model that assesses how digital is adding value throughout the entire economy — by tracing the use of digital skills, equipment and intermediate goods and services in the production of all goods and services — we have been able to derive a more comprehensive and rounded view of what constitutes a digital economy”

Across those economies studies digital has the potential to increase its share of activity by three per cent by 2020 in most cases. “Today, the United States leads the ranking, with a digital economy valued at around US$5.9 trillion, which equates to 33 percent of gross domestic product. Forty-three percent of employment in the United States’ workforce is digital. If we measure the accumulated investment in software, hardware and communications equipment, digital capital stock represents 28 percent of total stock.”

Accenture digi econ Study

Australia sits towards the top of the field when it comes to both the digital potential of the economy by 2020 and also and the optimised CAGR.

A little knowledge

Knowing is not the same as acting, according to the report’s authors. “Even when organisations understand the size of their digital economy and the opportunities from their digital efforts, they often lack the ability to influence or change their digital outcomes on the global stage.”

Instead, Accenture identifies three levels is says can be deployed  to enhance overall digital intensity and act as a growth multiplier;

  • Digital Skills
  • Digital technologies
  • Digital Accelerators

“Although adjusting these levers is challenging, it could be highly rewarding.”

In Australia for instance, digital optimisation could add $US34 billion to the economy by2020. At the top end, China is potentially the biggest winner with over half a trillion in extra value possible.

This article originally appeared on B&T’s sister site www.which-50.com

Please login with linkedin to comment

Latest News

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine
AnalogFolk Opens In Shanghai
  • Advertising

AnalogFolk Opens In Shanghai

AnalogFolk has opened in Shanghai and, as B&T's trusty Funk & Wagnalls atlas tell us, is somewhere near Wollongong.

Social TV – Will You Be At The Party?
  • Advertising
  • Marketing
  • Media
  • Opinion

Social TV – Will You Be At The Party?

Can't keep-up with the goings-on in the Aussie TV industry? Well, hit the couch, pull on the trakkie daks & peruse this.

Opinion

by Rochelle Burbury

Rochelle Burbury
JWT Melbourne Hooks John West’s Creative
  • Advertising

JWT Melbourne Hooks John West’s Creative

You'd only need snog a B&T staffer to know of our affection for the John West oysters in aspic & smoked mackerel ranges.

by B&T Magazine

B&T Magazine
Sydney-Based Tech Marketing Firm, Law Of The Jungle, Scoops Top International Gong
  • Marketing

Sydney-Based Tech Marketing Firm, Law Of The Jungle, Scoops Top International Gong

Sydney-based online cloud solution for marketing compliance, Law of the Jungle, has beaten the world’s best firms to win a prestigious RegTech Markets 2017 Spotlight Award. RegTech Markets, a global community for regulatory technology, inaugurated these awards to “shine a light on the world’s best and brightest RegTech companies”.  A panel of 30 industry experts […]

Is This The Bleakest Christmas Ad Ever?
  • Campaigns

Is This The Bleakest Christmas Ad Ever?

Tired of pretty people pulling bon-bons in your Christmas campaigns? Well, here's one to slash the wrists to instead.

by B&T Magazine

B&T Magazine
The Truth About Native Advertising!
  • Opinion

The Truth About Native Advertising!

Do you stammer about the office, railing against native advertising's great untruths? Read this and stop scaring people.

Opinion

by B&T Magazine

B&T Magazine
Why Are We Only Just Starting To Use VR To Train Staff?
  • Opinion
  • Technology

Why Are We Only Just Starting To Use VR To Train Staff?

In this opinion piece, PHD’s news business and marketing manager, Chloe Hooper (pictured below), argues why all agencies should be embracing VR to change the way they operate internally. Virtual reality (VR) is something most of us have had exposure to, but how many of us are really exploiting its potential to grow our people […]

Opinion

by B&T Magazine

B&T Magazine
PRIA Announces Winners Of 41st National Golden Target Awards
  • Marketing

PRIA Announces Winners Of 41st National Golden Target Awards

The Public Relations Institute of Australia (PRIA) last night announced the winners of the 41st National Golden Target Awards at a glittering ceremony hosted by Aussie actor and TV host Shane Jacobson at the Sydney Opera House. A sold-out crowd of more than 160 PR and communication professionals from around the country came together to […]

Personalisation At Scale: Targeting Audiences With People-based Marketing
  • Marketing
  • Opinion

Personalisation At Scale: Targeting Audiences With People-based Marketing

In this opinion piece, Indy Khabra (pictured below), national managing director at Amnet ANZ, explains power of the the people-based marketing equation, and also reminds marketers that they cannot afford to take data for granted. We are all talking about it. We all want it. We are all trying to get it. It’s that one-to-one […]

Opinion

by B&T Magazine

B&T Magazine