OECD World Forum onon Key Indicators OECD World Forum Key Indicators Statistics, Statistics,Knowledge Knowledgeand andPolicy Policy Palermo, 10-13 November 2004 Palermo, 10-13 November 2004 OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 1 Information Society: from Statistical Measurement to Policy Assessment Tony Clayton UK Office for National Statistics OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 2 Information Society The challenge of permanent change • Definitions of ICT products and services are still changing as applications progress • Attention has broadened from e-commerce (simple) to ebusiness (complex) • Real business models are changing, both within and between countries • New social patterns and work structures are evolving driving and enabled by technology • Can National Statistics Offices measure this changing world fast enough? OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 3 Information Society Shared economic questions • How does the growing importance of intellectual assets (technical, organisational,human, knowledge) change value creation; how can public policy make these assets work most effectively? • How do structural changes (more services and intangibles) affect economic and social behaviour and policy priorities? • How do global networks and value chains, within and between firms, affect behaviour, and governments’ ability to achieve policy objectives? OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 4 Information Society Macro-economic challenges • ICT impacts the measurement of outputs and inputs - hedonics - chain linking • How to deal with new outputs and assets? - extending the list: information, knowledge, capabilities • Changing relationships between inputs and outputs - ‘complementary’ assets and productivity - cross-border (or inter-regional) intangibles OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 5 Information Society Lessons from coping with change •Definitions - critical to be precise and avoid ambiguity - comparison, cross sectional and over time, essential •Learning - ‘not enough to learn from your own experience’ •Benchmarking outcomes and policy - where are examples of success? - which lessons from good practice are transferable? •Where is value really added? - pay off from looking at firm level data OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 6 Information Society Achieved so far …... • National accounts measures; - software, databases - chain linking and hedonics • Satellite accounts for information economy • OECD frameworks to measure enterprise and household ICT access and use • EU structural indicators, and eEurope 2005 metrics • Range of SINE initiatives, which spurred NSOs • Academic and business initiatives on ‘impacts’ • Moving towards international WSIS ‘core indicators’ OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 7 Information Society UK focus to support policy • Benchmarking not only ‘outcomes’ for the information society and economy, but also policies to promote innovation and good practice • Evaluating impacts of ICT adoption in the economy, to improve understanding of policy levers, and the way they can affect behaviour and performance …… a shared agenda across government OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 8 Information Society Benchmarking Framework The e-Economy Environment Environment Market iEm Educational Political iEp Level of political leadership Enabling nature of legal and regulatory environment for ecommerce infrastructure Level of IT skills Supporting industries Climate for innovation Cost of access Environment iRc iRb Citizen Citizen Readiness Readiness Readiness Measures Measures of of barriers barriers to to uptake uptake (awareness, (awareness, trust, trust, skills, cost) skills, cost) Penetration Penetration of of access access devices devices iUc Uptake and use Level Levelof of basic basic use use Ubiquity Ubiquity// fairness fairnessof of adoption adoption Sophistication Sophistication of of use use iIc Impact Citizen Citizen Use Use Citizen Citizen Impact Impact Impact Impact on on commerce/spending commerce/spending Impact Impact on on behaviour behaviour Infrastructural iEi Business Business Readiness Readiness Measures Measures of of barriers barriers to to uptake uptake (awareness, (awareness, trust, trust, skills, cost) skills, cost) Penetration Penetration of of access access devices devices iUb Business Business Use Use Infrastructure availability Infrastructure quality iRg Government Government Readiness Readiness Awareness, Awareness, leadership, leadership, published published strategies strategies Level of coordination Level of coordination Systems Systems readiness, readiness, back back office office integration, integration, standardisation iUg standardisation Government Government Use Use Level Level of of basic basic use use (including (including Level Level of of basic basic use use (including (including publication) publication) publication) publication) Ubiquity Ubiquity// fairness fairness of of Sophistication Sophistication of of use use adoption adoption Sophistication Sophistication of of use use iIb Business Business Impact Impact iIg Government Government Impact Impact Impact Impact on on Impact Impact on on commerce/spending commerce/spending commerce/spending commerce/spending Impact Impact on on service service offering: offering: Impact Impact on onworking working practices practices additional/enhanced additional/enhanced services services Impact Impact on on costs/efficiency costs/efficiency Impact Impact on onworking working practices practices Impact Impact on on costs/efficiency costs/efficiency OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 9 Information Society Approach to comparison and learning 0.0 0.1 0.2 0.3 0.4 0.5 0.6 Political/ Regulatory Readiness Ranking Citizen Readiness 0.56 Business Readiness 0.56 0.76 Citizen Uptake & Use i Impact Ranking 0.51 Business Uptake & Use Government Uptake & Use Citizen Impact Business Impact 1.0 0.49 Government Readiness Uptake and Use Ranking 0.9 0.83 Infrastructure iR 0.8 0.59 Market Environment Ranking 0.7 0.63 0.39 0.42 0.49 Government Impact 0.56 Position of worldleading countries OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 10 Information Society Benchmarking lessons • Relevant and comparable data still hard to come by in 2002 • Need to quality mark comparisons • Major gap area for comparable data in government use • Gap in comparable analysis for quantifying economic impact OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 11 Information Society Assessing Impact • Initial work mainly macro - but suffered from lack of comparability in national measurement • Advantage of firm level analysis is that it deals with units that are surveyed on similar basis • Helps to explain how competitive processes actually work • OECD project to share and repeat comparable analysis across countries - valuable pooled experience OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 12 Information Society Firm level data: 1) market dynamics e-sellers non e-sellers 108 106 104 Relative Price 102 100 98 96 94 11 00 00 09 20 00 07 20 05 20 03 00 20 00 01 20 00 99 11 20 09 19 07 99 19 99 05 19 99 03 99 19 19 01 11 99 19 98 09 19 98 98 07 19 05 19 03 98 19 98 01 19 98 97 11 19 09 19 07 97 19 05 97 19 97 03 19 97 19 19 97 01 92 Date OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 13 Information Society Firm level data: 2) productivity effects differ 50 45 40 V A /em p (£00's) 35 30 2001 25 2002 20 15 Successful e-business applications in manufacturing usually tackle upstream supply chain issues... 10 5 40 0 A ll firm s None A ny 4 p lus in c l. 4 p lu s in c l. 4 plu s in c l. 4 plu s in c l. 4 p lus in c l. 4 p lus in c l. 4 p lu s in c l. 4 plu s in c l. s up p lier s c us t o m e rs in vo ic e o p e rat io n lo g is t ic s m a rk et in g in t e rn a l e x t e rn al 35 30 VA/emp (£000's) …but e-business application success in service firms more often includes electronic links to customers 25 2001 20 2002 15 10 5 0 All firms OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 None Any 4 plus incl. suppliers 4 plus incl. customers 4 plus incl. invoice 4 plus incl. operation 4 plus incl. logistics 4 plus incl. marketing 4 plus incl. internal 4 plus incl. external 14 Information Society Development challenges • Speed of change - can Statistics Offices meet demands? • Build and agree the contribution of information and knowledge in National Accounts • Exploit micro-data to understand the role of knowledge at enterprise level • Better metrics for innovation, recognising the role of multinational enterprises in invention and diffusion • Comparability in human capital / skills measures • Assessing impact of digital access and literacy for households and labour markets. OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 15 Information Society tony.clayton@ons.gsi.gov.uk OECD World Forum “Statistics, Knowledge and Policy”, Palermo, 10-13 November 2004 16