ICT Measurement
The Canadian Experience
Geneva, October 18, 2004
Tim Davis
Agriculture, Technology and Transportation Branch
Statistics Canada
The Canadian Context
w Politicians, public servants and statisticians came
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together early to launch measurement programs
Canada assessed benefits and developed
supportive policies
Framework conditions, tax neutrality and security
rather than subsidies
Need for measurement and analysis recognised
Funding e-com and ICT data gaps was a priority
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Overview
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This Thing Called e-com
The International and Canadian Contexts
Some e-com Basics
Canadian data programs and outputs
Gaps and Issues………
What’s next?
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This Thing Called ICT
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What is e-commerce? Why is it important?
Transformative
Impacts on competitiveness and relative positions
Phenomenon or real change?
Impacts on business and consumer
Economy and society
On development too!
A social, cultural and economic phenomenon
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This Thing Called ICT
What do we need to measure…. And why?
Must reflect impact on economy and society
Many flows and activities that enable
Also inhibitors and barriers
Need understanding at all stages
Outputs and productivity; Costs and benefits
supply/demand sides
w Lots of hype and self-serving measures
w Measures not produced automatically
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But …..
Reflect state of evolution
•Establish benchmarks
•Basis for comparison
Policy issues,
indicators
outcomes,
impacts
•Reflect reality
•Ensure relevance
intensity
•Drop and add
measures over time
e-readiness
time
Source: Industry Canada 1999
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This Thing Called e-com
w What to measure? Is focus Macro or Micro?
w Not sufficient to measure a single activity
w Impacts many flows and aggregates for SNA
w There are many inputs that combine
Manufacturing – ICT equipment
n Infrastructure - Telecom services
n Facilitating - Software and ISPs
n Activities and outputs – Sales and services
w National macro data was first priority
n
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This Thing Called e-com
BUT
w Micro measures and analysis relevant too
w Impacts on innovation and competitiveness
w Need policies, measures and analysis together
w Are clusters only geographic?
w Virtual clustering and partnerships
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This Thing Called e-com
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Is international comparison required?
As never before
Potential to be an equaliser
But threat to be further exclude those excluded
Monitoring The Digital Divide….and Beyond
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This Thing Called e-com
w New and unique challenges for stat agencies
w Measurement is difficult. Response burden?
w Are traditional vehicles appropriate?
Expectations for speed relevance and
comprehensiveness are very high
w Many guesses or self-serving “estimates”
confound the objective survey taker
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The International Context
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Rapid change threatened information chaos
Good news! Order, it seems, prevails
Many understand need for objective data
OECD led the way with definitions & questions
Government & business had similar data needs
Encourage development & use for competitiveness
Not all countries follow same path
Caution: consider measurement needs and
abilities of less developed economies
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Measurements now common for
business activity …
Business e-commerce, 2001
100
Internet use
90
online sales
online purchases
70
60
50
40
30
20
10
Gr
ee
ce
Un
Sp
ite
ain
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ly
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No
rw
ay
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Ze
ala
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2/17/2005
Fin
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De
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ar
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% of enterprises
80
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Source: OECD
…and households too
People and e-commerce, 2001 (or latest year)
80
Using the Internet
ordering goods or services
70
50
40
30
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10
M
ex
ico
Tu
rk
ey
Ita
ly
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Fr
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St
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Ca
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Un
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2/17/2005
De
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Fin
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0
Sw
ed
en
% of individuals
60
Source: OECD
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e-commerce basics
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Common, accepted definitions are Key
In 2000 OECD set Broad and Narrow terms
Focus on order; not delivery or payment
Internet vs. “computer-mediated networks”
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e-commerce basics
2/17/2005
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e-commerce basics
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Common, accepted definitions are key
In 2000 OECD set Broad and Narrow terms
Focus on order; not delivery or payment
Internet vs. “computer-mediated networks”
w OECD model questionnaire modules
w Distinguish type of transaction: B2B, B2C, B2G
w Enterprise vs. establishment activity
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Canadian experience:
Data programs and results
Infrastructure:
w Telecommunications and cable surveys
w Software, ISP and related surveys
Applications:
w Electronic commerce and technology
w Household (Individual) Internet Use
w General Social Survey
Analysis:
w Industry Canada and Connectedness Series
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e-com : Canadian Measurements
Business e-commerce, Canada 2002
90
85
76
% of private-sector enterprises
80
70
60
50
40
32
32
30
20
8
10
0
computers
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Internet
Web site
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e-purchases
e-sales
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Canada: Value of Internet Sales
1999
2002
2002
Industry
(millions of CAN $)
Manufacturing
Wholesale trade
Retail trade
900
156
611
1,957
3,693
1,718
0.3
1.1
0.5
Transport and warehousing
164
1,924
2.4
Information and cultural
553
829
1.2
Finance and insurance
Professional, scientific and technical services
321
406
852
983
0.4
1.4
429
4,180
166
13,339
0.4
0.6
Accommodation and food services
All private sector
% of operating revenues
Source: Statistics Canada
Of which, in 2002:
B2B = 73%,
foreign = 22%
Both proportions declining
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e-com by business size - 2002
Computers
Internet
Web sites
e-purchases
e-sales
% of enterprises
small
84
73
27
29
7
medium
97
92
62
47
13
large
100
99
77
57
16
All
85
76
31
32
8
65
27
% of economic activity
All
98
97
83
Source: Statistics Canada
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e-commerce and people
Canada 2001
number of
households
% of
households
12,007
100
7,228
60
3,976
33
window shopper
1,731
14
e-commerce
2,244
19
1,778
15
All households
Internet use (any location)
Internet shopper
e-payment
Source: Statistics Canada
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e-commerce and people
People and e-commerce, Canada 2001
number of orders
total value
(millions)
(billions of CAN $)
13.4
2
average number
of orders
average value
per order
(CAN $)
6
148
of which, foreign transactions:
44% of orders
35% of expenditures
Source: Statistics Canada
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e-business processes
w Hierarchical structures and information
w transmission and processing
controls and inertia
Intra- and inter-firm integration
Linkages to innovation
n Product
n Process
Identification of differences
n by industry
n by firm size
Measurement implications
- generic or specific surveys
- practical difficulties and compromises
- out of the box approaches?
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Outstanding Issues-What’s next
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Data gaps
Linking ICT diffusion and performance
Comparability and continuity
Enterprise vs. establishment
Cross-economy vs.. Industry-Specific
Response burden and the use of EDR
Analytical outputs
Differential development – don’t be too
satisfied …… too soon
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And then ……..
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Take small steps in recognition of S Curve
Add questions; exploit existing vehicles
Progress is slow and difficult; it was for Canada too
In the end we are succeeding
Differential development – don’t be too satisfied
…… too soon
w ICTs can be liberating or discriminating
w Statistics Canada supports efforts to exploit ICTs as a
liberating technology and wishes to remain fully
engaged
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