Human Needs in a Digital World

Human Needs in a Digital World

Digital Society Index 2019 Contents

Foreword 3

Speed read: The report in 5 minutes 4-8

1. What’s digital ever done for us? 9-15

2. A new model of digital needs 16-30

3. The impact on consumer behaviour 31-35

4. Recommendations for brands, 34-38 businesses and governments

Methodology 39

2 Digital Society Index 2019 Foreword by Tim Andree Executive Chairman and CEO, Dentsu Aegis Network

The digital economy is the defining Today, we also see the emergence of new trend of our time. Thirty years on from digital consumers. They are digital natives the establishment of the world wide and use digital products and services web, the legacy of that breakthrough is across a range of activities. But they’re extraordinary. The proliferation of digital also digitally savvy and have learned technologies has powered economic to manage the online world on their growth, created jobs, lifted millions own terms: limiting the amount of data out of poverty, put information into the shared and time spent online; installing hands of people the world over and ad blockers; deactivating social media grown access to cheaper products and accounts. The web has grown up—and so services. It’s hard to imagine a facet of has its users. Adapting to their behavior everyday life that has not in some way is a huge opportunity for brands to build been touched by digital. For people, better, more trusted relationships. businesses and society as a whole, it has been a massive source of growth. We need to develop a digital economy that works for all in society. That’s a guiding However, with growth comes change. principle at Dentsu Aegis Network, both And change is not always easy. With commercially and as a good corporate that thought in mind, two years ago citizen. We create long-term business we established the Digital Society value for clients by helping them build Index program of research. The trusted relationships with their consumers analysis recognizes that the digital and audiences, putting people at the heart economy has been a hugely positive of their digital transformation. Through source of change around the world. It our Social Impact strategy, we take a also recognizes that securing these leadership role in developing the digital benefits in the future requires a longer skills of future generations and supporting view on how technological innovation a new wave of female entrepreneurs. can best serve people’s needs. It’s a common soundbite that what’s good Our findings this year show that progress for society is good for business. But it is mixed. People in many countries— happens to be true. The digital economy particularly those in high-growth emerging gives us the power to be better versions economies—are hugely positive about of ourselves. Capitalizing on this means their futures in the digital economy. But harnessing digital in the right way—with at the same time, many people do not human needs placed squarely at the center. feel as if their digital needs are being By doing so, we can build better brands, met. Whether that’s the impact of digital better businesses and a better society. technologies on health and well-being, Let’s make it real. or the skills that are needed to thrive in a rapidly changing labor market, Tim Andree many people do not feel as optimistic or well-prepared as we would want.

3 Digital Society Index 2019 Speed read: The report in 5 minutes

Innovation will always fail unless it Within that context, the Digital Society meets people’s needs and wants. Index puts people at the heart of the digital economy to examine how trust can Brands must ensure that digital be rebuilt to deliver sustainable growth. products and services address those needs. By doing so, not only can brands A new needs model for the build better relationships with their digital age consumers and audiences—they can also help safeguard the long-term benefits To that end, we’ve also developed a of a digital economy that works for all. new needs-based framework. Taking inspiration from the seminal model of That’s one of the central messages Abraham Maslow, we’ve updated his that emerges from the Digital Society original “hierarchy of needs” concept Index 2019. Developed in collaboration for a digital age. However, the research with Oxford Economics, it combines a shows that in most of the 24 countries primary survey of more than 43,000 we analysed, these needs are far people across 24 countries with from being adequately addressed. economic and statistical analysis. • Basic needs: Access to digital The year since our survey first started infrastructure has always been in 2018 has seen a collapse in trust in a necessary condition to engage the use of digital technologies. Trust with the digital economy. But now, in big tech is falling, with misuse of in addition, trust in data use is part personal data the number one cause of the foundation on which digital of distrust, according to our survey. products and services must be Stronger regulation of technologies like built. Only 49% of people globally artificial intelligence is being mooted. believe their basic needs are being And social media has been blamed met, although Western economies for both political polarisation and tend to perform strongly here. misinformation. Thirty years on from the birth of the world wide web and against a longer-term trajectory of growth and prosperity brought about by the digital economy, 2018 has been a tough year.

4 Digital Society Index 2019 • Psychological needs: Digital the gap is particularly stark. For example, technologies can help enhance in the Netherlands, 42% of men are users’ sense of good health and optimistic about the societal impact of well-being. However, globally, digital, but this falls to 30% for women. just 38% of people believe this And in terms of age, it is younger people need is being met. Asian countries who score lowest on psychological tend to perform poorly on this needs, reflecting those studies that show measure—out of all the countries how higher usage of digital technologies analysed, India ranks lowest on is negatively impacting young people’s psychological needs. mental health and well-being.

• Self-fulfilment needs: The extent We need to take people with us to which people feel they have the right digital education, skills and Furthermore, while technological opportunities for fulfilling work can development accelerates, many people offset concern about automation around the world feel left behind by and the impact of artificial digital growth. This sentiment cuts across intelligence. However, only 45% of differences in economic development, people globally score positively on tech maturity and culture. It’s not just a this measure, with under-utilisation first-world problem: it’s a whole-world of digital skills by employers a problem, with three major elements: challenge. For example, in Denmark, less than four out of ten people with • Skills are not keeping pace with average or above average digital needs—digital technologies are skills agree that their employer reshaping the jobs of tomorrow, but makes it possible to use the full one in three people globally can’t range and depth of their tech remember the last time they did any knowledge. digital training (or never have done any).

• Societal needs: This is about • The pace of technological change people’s broader optimism that causes anxiety. In countries such as digital technologies will be a China, India and Brazil, more than force for good overall, helping 80% of people feel the pace of tech to create jobs and solve societal change is too fast. challenges. Overall, less than half (49%) of people believe • The future is not evenly spread— in digital’s role here, although while many countries perform strongly people in Asia tend to be much on our index in terms of delivering a more positive about the potential digital economy that works for all— of digital to enhance society. Singapore, the United States and China top our rankings in 2019—many The demographics of these trends show countries are pursuing an imbalanced clear anomalies. Women score lower digital growth strategy. than men across all aspects of the model except basic needs. In some countries,

5 Digital Society Index 2019 Belief in digital drives the This is creating significant implications business case for action for brands, businesses and governments in how they engage with consumers Why is this analysis important for through digital products and services. businesses and brands? Because digital The people who are hardest to reach are needs influence consumer behaviour. also the most commercially valuable. Increasingly, this means brands will The more positive people are about need to find new ways to maximise the digital economy’s wider impact on the value of precious moments of society and their own digital skills, the interaction with consumers, moving more likely they are to engage with beyond reach to creating more digital products and services. In other meaningful moments of engagement. words, give people belief in digital and they will be more likely to use digital How to respond to the products and services. There’s not new digital needs just an ethical case for delivering a digital economy that works for all— The changing needs and awareness of there’s a strong business case too. consumers calls for a more balanced and creative approach to engaging people The new digital consumer: in digital products and services. It is Hardest to reach but no longer enough for organisations to most valuable rely on increasing access and extending the user base—that effort must be The research also introduces us to the matched by innovation in developing a new digital consumer. She is a digital meaningful relationship with consumers. native and fully engaged in terms Based on our analysis, we have three of what the digital world can offer: recommendations each for brands, shopping online, using apps to take a businesses and governments: taxi and streaming music. But she’s also taking actions that, for many businesses, might seem problematic. As our analysis shows, she’s installing ad blockers, reducing data-sharing and deactivating social media accounts.

6 Digital Society Index 2019 For brands For businesses

• Segment consumers and audiences • Compete on openness: Transparency by motivation and needs: Traditional around data usage can be a source of demographic approaches to segmenting differentiation. With misuse of personal consumers are insufficient. Looking at data the number one driver of distrust customers through the lens of digital in the tech industry today, any business needs can help brands find ways to ignores it at their peril. increase positive engagement with digital products and services, as well • Make better use of digital skills: as help test new services with more Understand the digital skills that sceptical user groups. your employees have and constantly re-imagine work processes and • Focus on engagement, not reach: organisational design around the full The most valuable consumers are spectrum of their abilities. reducing the amount of data shared online, installing ad blockers and • Showcase digital’s societal potential: limiting their time online. That means Promote the ways social impact working harder to maximise the value programmes and commercial offerings of interactions that will often be can help meet people’s needs and wants. initiated by consumers themselves.

• Help people undertake their own For governments digital detox: Enabling people to have a healthier relationship with digital • Develop a balanced scorecard of may mean sacrificing access to data, digital development: Metrics should but over the long-term it will lead to a focus on inclusion and trust alongside better relationship based on trust. growth of digital industries.

• Give people more control over digital innovation: By involving people in a more deliberative process of debate and discussion, governments can help shape a shared understanding of what is and what is not acceptable in terms of technology development.

• Harness technology to enable effective learning: Ongoing training and immersive learning experiences will help leverage skills and unlock the potential of digital technologies.

7 Digital Society Index 2019 Give people belief in digital and they will be more likely to use digital products and services 1. What’s digital ever done for us?

What’s digital ever done for us? Fans covering more than 43,000 people of Monty Python will get the reference. across 24 countries with economic But most people will recognise the and statistical analysis. By measuring sentiment. Thirty years on from the country-level performance across three birth of the world wide web, the digital dimensions—dynamism (the strength economy has been a hugely positive of the core digital sector), inclusion force in the world, helping to lift millions (the breadth of access people enjoy out of poverty, access essential services, to the benefits created by the digital find jobs, learn new skills and make economy) and trust (the extent to which new connections… But despite these people have trust in data use as well as opportunities, our survey shows that broader optimism about the future)— many people today feel that digital is we have created a unique people- changing their lives for the worse. centric view on the digital economy.

That paradox explains why it’s crucial Our research reveals a mixed picture to understand the drivers of positive of progress. A number of countries are engagement with digital technologies to striking a healthy balance between ensure they meet peoples’ fundamental dynamism, inclusion and trust, helping to needs. The potential benefits of digital safeguard the long-term benefits of the to people and society are huge. Yet these digital economy. But at the same time, in benefits risk being undermined by a lack many countries people do not feel that of trust and the unaccountability of their digital needs are being met. This technological development. As brands has implications for the sustainability of continue to utilise digital products, digital growth models in those parts of services and channels, it is essential that the world. But it also has implications they are attuned to changing sentiment for how people behave as consumers to ensure meaningful engagement. and how brands engage with them.

Building the Digital Society Index

We have been working with Oxford Economics since 2017 to understand those changing relationships more fully and to examine how well countries are developing a digital economy that works for all in society. For our latest report, we’ve combined a major primary survey

9 Digital Society Index 2019 A deficit of trust

The twelve months since our initial As a result, in 2019 the research shows report have seen unprecedented levels of we are facing tough questions about scrutiny of the business models of digital whether digital technologies truly companies. This scrutiny and some of the serve people’s best interests. Figure 1 issues around data transparency that it shows that for the majority (64%) of has revealed has provoked fierce political people we surveyed, concerns around discussion. There are widespread calls the misuse of personal data are for the need for tighter regulation of undermining trust in the tech industry the technology sector, amid growing as a whole, followed by anxieties about anxiety about the development and automation and the pursuit of innovation use of artificial intelligence. Trust in for its own sake. These concerns are technology is in steep decline among unlikely to stop at the door of the the informed public around the world, tech industry itself—all businesses according to Edelman’s Trust Barometer. deploying digital products and services Social media in particular has been find themselves under similar scrutiny. cited as a cause of political polarisation and the spread of misinformation.

Figure 1: Misuse of personal data is the #1 driver of distrust in the tech industry globally

What do you believe are the main causes of distrust in the tech industry as a whole? (% agreeing)

Misusing personal data 64%

Automation and not creating enough jobs 26%

Pursuing innovation for its own sake 26%

Creating excessive wealth 20%

Poor working conditions 17%

Lack of diversity in the workforce 16%

Not paying enough tax 16%

Source: Dentsu Aegis Network Digital Society Index Survey 2018

10 Digital Society Index 2019 Six out of ten (second behind Germany at 62%). The lowest response is seen in Russia, people in our survey where just a quarter of people believe believe that not social media is having this effect. enough is being We need to take people with us

done to ensure It is not just the direction of technological development that is digital technologies unsettling people. It is also the pace of benefit everyone change. Take India, Brazil and China. In these countries, more than 80% in society of people believe that the pace of technology change is too fast today. Beyond the misuse of personal data, Across the 24 countries in our analysis, there are also some hot-button issues in more than half (57%) of people believe specific countries. People in the United this to be the case (see Figure 2). Even in Kingdom are the most likely to cite tech Singapore, one of the most competitive companies not paying enough tax (36%) economies in the world that ranks top and creating excessive wealth (28%) of our index (see ‘Spotlight: Delivering a as drivers of distrust. While people in balanced approach to digital growth’), India are the most likely to identify nearly two-thirds of people believe automation and not creating enough the pace of tech change is too fast. jobs (36%) as well as a lack of diversity in the workforce (34%) as reasons for Of course, there have probably been a loss of faith in the tech industry. few moments in history when people haven’t been worried about the pace A challenge to democracy? of tech change. There is plenty of research to show that human nature The last year has opened up a lot tends to over-estimate the short- of debate about the influence of term impact of change, while under- social media on political discourse. estimating its long-term impact. But, It has been argued that social media given what we know about the scale is instrumental in creating an echo and pace of change brought about by chamber of entrenched positions, leading digital in many walks of life, this finding to more polarised views and vitriol. articulates a sense of helplessness Awareness has grown of ‘fake news’ in the face of relentless disruption. and the potential risks of public debate being poisoned by misinformation, One corollary of this statement is leading some commentators to suggest that six out of ten people in our survey that digital technologies pose an believe that not enough is being done existential threat to democracy. Six to ensure digital technologies benefit out of ten people in the United States everyone in society—and based on that we surveyed believe that social the original ten countries in our 2018 media is having a negative impact on analysis, that proportion is increasing. political discourse in their country

11 Digital Society Index 2019 Figure 2: People feel the pace of tech change is too fast

To what extent do you agree or disagree that the pace of technology change is too fast today? (% agreeing)

85% 81% 80% 78% 72% 70% 64% 62% 61% 56% 57% 54% 52% 48% 48% 48% 48% 47% 44% 44% 44% 44% 43% 42% 40% US UK Italy India Spain Brazil China Japan Russia France Ireland Poland Mexico Finland Estonia Canada Norway Hungary Thailand Australia Denmark Germany Singapore Netherlands

Source: Dentsu Aegis Network Digital Society Index Survey 2018

Breaking the innovation cycle Understanding precisely how well digital growth is addressing people’s needs is Much of the recent debate can be the focus of the next section, in which we understood in the context of the introduce our own model of ‘Maslow for innovation cycle. If technological a digital age’ that offers a new way of change gets too far ahead of consumers’ looking at people’s relationship with the needs it risks a backlash. It’s then that digital economy. In section 3, we examine policymakers may seek to step in and how those digital needs are driving protect consumer interests through consumer behaviour. And, last, in section common standards and regulation. 4 we offer some recommendations for We’ve already seen that unfold in brands, businesses and governments to the context of personal data. We are help address the digital needs of their also seeing debates about potential audiences, consumers and citizens. regulation of artificial intelligence. The race to deliver greater digital capability has not always taken full account of fundamental human needs.

12 Digital Society Index 2019 Spotlight: Delivering a balanced approach to digital growth

The Digital Society Index measures access to digital infrastructure as well how successfully countries are as the quality of tech-related education. developing a digital economy that works for all. It examines performance • Trust : a measure of the extent to which across three key dimensions. people have confidence in data use as well as broader optimism about • Dynamism: the strength of the core the future. ‘Trust’ takes account of digital sector, which involves indicators indicators such as cybercrime readiness, including size and growth of the data protection legislation and Information and Communications transparency of data use by businesses Technology (ICT) sector, spending and governments. (For a more detailed on research & development and overview of the research methodology, the availability of top quality tech please see page 39). universities and talent. The 2019 results are set out in the table • Inclusion: the breadth of access below. By aggregate score, Singapore people have to the benefits created ranks first overall, followed by the by the digital economy. This dimension United States and China (see Figure 3). encompasses indicators that include

Figure 3: Countries demonstrate different strengths across the three dimensions of the Digital Society Index

DSI scores

Dynamism Inclusion Trust 0.6

0.5

0.4

0.3

0.2

0.1

0.0 US UK Italy India Spain Brazil China Japan Russia France Ireland Poland Mexico Finland Estonia Canada Norway Hungary Thailand Australia Denmark Germany Singapore Netherlands Global Average

Source: Dentsu Aegis Network Digital Society Index Survey 2018

13 Digital Society Index 2019 Figure 4: 2018 vs 2019 top ten rankings

2018 2019* 1. United Kingdom 1. Singapore 2. United States 2. United States 3. China 3. China 4. Germany 4. Denmark 5. France 5. United Kingdom 6. Australia 6. Netherlands 7. Spain 7. Finland 8. Italy 8. Norway 9. Japan 9. Estonia Source: Dentsu Aegis Network Digital Society Index 2018 10. Russia 10. Germany

The United Kingdom falls to 5th after which there have been well-publicised ranking in top spot in 2018, while the and damaging congressional testimonies Nordic economies dominate the top by the leaders of both Google and ten, following the expansion of the Facebook. This imbalance signals a wider index from 10 to 24 countries (see trend that sees other Western markets Figure 4). The reason for the UK’s such as Australia, France, Germany and decline is not only because of a more the United Kingdom in the bottom half of competitive peer set in 2019. Declining the sample for trust, fuelled by a lack of consumer sentiment around the future optimism about the future of the digital impact of digital technologies on economy and its impact on peoples’ lives. society and falling trust in data use largely account for its lower ranking. By contrast, China appears to be still relatively under-powered as far as Beyond these aggregate scores, the dynamism is concerned, but performs relative performance across the three well in terms of the breadth of access dimensions provides telling insight. and opportunity that the digital This analysis reveals imbalances in economy provides, reflecting a trend the way countries ensure that the seen among other emerging economies. benefits of digital growth can be enjoyed widely, underpinned by trust. A third trend sees the Nordic economies do well on inclusion and trust, but For example, the United States performs perform less well as far as the dynamism strongly on dynamism but less so on of their digital industries is concerned. trust, a finding that reflects a year in

14 Digital Society Index 2019 The race to deliver greater digital capability has not always taken full account of fundamental human needs 2. A new model of digital needs

Safeguarding the long-term benefits Abraham Maslow’s seminal work on the of the digital economy—across hierarchy of needs, but it’s important employment, education, healthcare and to point out that our framework is not the environment, for example—demands a hierarchy, but a series of building laser focus on meeting people’s needs. blocks. Except for basic needs, which We have developed a framework that are the necessary foundation on which can examine people’s needs in the digital the others are constructed, different economy through four perspectives: needs will be emphasised in different basic needs, psychological needs, contexts (see Figure 5). The following self-fulfilment needs and societal paragraphs describe each need, how needs. We’ve taken inspiration from we’ve measured it and why it’s important.

Figure 5: Our digital needs framework

Maslow’s Hierarchy of Needs

Self- Self-fulfilment needs actualization: Achieving one’s full potential

Esteem needs: Prestige and feeling of accomplishment Psychological needs

Belongingness and love needs: Intimate relationships, friends

Safety needs: Security, safety Basic needs

Physiological needs: Food, water, warmth, rest

Digital Needs

Basic needs: Psychological needs: Access to digital and Improved health & well-being and trust in data quality of life through digital

Self-fulfilment needs: Societal needs: Digital skills empowerment Belief that digital will and utilisation improve society

Source: Maslow, A Theory of Human Motivation, 1943; Dentsu Aegis Network analysis

16 Digital Society Index 2019 Less than half Basic needs

(49%) currently Basic needs are the necessary pre- condition for people to engage with believe their basic digital products and services. We define digital needs and measure basic needs in terms of access to quality digital infrastructure are being met (fixed internet and mobile networks specifically) as well as the trust that people express in businesses and governments to use their data responsibly in terms of privacy and security. Lack of trust is destabilising digital’s success. Without trust, the full potential of digital will never be realised.

Based on our survey of more than 43,000 people around the world, less than half (49%) currently believe their basic digital needs are being met (see Figure 6). In countries such as Brazil, where that figure is only 35%, infrastructure is a key source of concern. While in Japan, where just 29% of people report that their basic needs are being met (the lowest out of the countries we analysed), trust in data use is the overriding anxiety. People in emerging markets such as China (69%) and India (67%) are much more content as far as their basic needs are concerned, reflecting the speed with which digital infrastructure has been deployed in those markets as well as greater trust in businesses and governments to use personal data responsibly.

17 Digital Society Index 2019 Figure 6: In many countries, people’s digital needs are not being fully met

Psychological Self-fulfilment Basic needs needs needs Societal needs China 69% 27% 62% 76% India 67% 27% 69% 74% Hungary 64% 52% 40% 43% Netherlands 63% 34% 36% 36% Thailand 59% 27% 63% 75% Denmark 59% 38% 40% 42% Singapore 58% 25% 53% 56% Norway 56% 37% 39% 41% Finland 56% 48% 41% 43% Estonia 53% 52% 41% 43% UK 48% 40% 37% 40% Canada 47% 34% 44% 44% Poland 46% 54% 42% 52% Spain 46% 36% 41% 46% Mexico 44% 39% 66% 64% Germany 44% 42% 38% 34% Ireland 43% 39% 42% 39% US 43% 41% 46% 44% France 41% 36% 38% 43% Australia 41% 37% 37% 38% Italy 41% 41% 40% 50% Russia 37% 58% 48% 48% Brazil 35% 44% 53% 62% Japan 29% 26% 21% 32% Global avg 49% 38% 45% 49%

Source: Dentsu Aegis Network Digital Society Index Survey 2018

Many businesses are already playing With the goal of turning 400 acres of a role to meet people’s basic needs empty land into a smart city by 2026, in digital. For example, electronics Panasonic has not only installed free company Panasonic is putting basic Wi-Fi but also LED street lights, a solar- needs at the heart of its ambitious powered microgrid, pollution sensors and CityNow initiative by building a “smart security cameras and is even preparing city” infrastructure in Colorado, US. the area for autonomous vehicles.

18 Digital Society Index 2019 Psychological needs

While digital technologies can help As part of our survey, we asked people connect people and foster a sense of about the impact of digital technologies community, the ‘always-on’ nature of on their health and well-being, as well social media and smartphones can as on their overall quality of life. A clear have a negative impact on personal trend in the results is the extent to well-being. which Asian countries tend to perform poorly on this measure. Singapore, which Achieving a healthy balance of personal tops this year’s Digital Society Index technology use is becoming a key need rankings, ranks lowest with just 25% of the digital economy, with a number of people surveyed believing that their of businesses now helping consumers psychological needs are being met. The actively manage their screen time. In next bottom five scores are all registered June 2018, for example, Apple launched from people in Asian economies. a range of new digital wellbeing tools to reduce the time people spend online. This finding, and particularly the low The new Screen Time app provides a score of India and China on this measure, dashboard for iPhone and iPad users belies the stereotype that digital health to understand their activity, from how is an issue only in developed economies. much time they spend on which apps As emerging markets embrace digital to how often they pick up their device, technologies rapidly, often leapfrogging as well as to set daily time limits for developed markets and their legacy individual apps. It will enable parents infrastructure, they are perhaps more to access their children’s activity and aware of the sudden impact digital understand their browsing habits. can have on their well-being.

19 Digital Society Index 2019 Our research shows that people in Though these populations embrace emerging economies are also much more digital rapidly, the usage appears to likely to engage with digital products have sharper impact on their sense of and services than those in developed well-being. countries (see Figure 7).

Figure 7: Emerging markets are driving the adoption of digital products and services Compared to last year, are you more or less likely to do the following? (% likely)

Emerging Developed

83% Do my shopping online 72%

79% Listen to music via a streaming service (e.g. Spotify, YouTube etc.) 64%

79% Use an app to do my banking or manage my money 63%

67% Watch TV via a streaming service (e.g. Netflix, Amazon Prime, Hulu etc.) 56%

66% Use an app to take a taxi (e.g. Uber, Grab, Lyft etc.) 32%

57% Read a book using a digital device (e.g. Amazon Kindle, Audible etc.) 36%

40% Use an app to consult a doctor rather than going in person 22%

Source: Dentsu Aegis Network Digital Society Index Survey 2018 Note: Emerging and developed markets are defined as per International Monetary Fund classification

20 Digital Society Index 2019 Self-fulfilment needs

Achieving individual potential and Only 45% of people globally score fulfilment in the context of the digital positively on this measure. Learning economy means having the skills, remains an area of significant weakness: education and opportunities to find globally, one in three people can’t rewarding work. With much uncertainty remember the last time they did any around the potential impact of digital training (or never have)—see digital technologies (such as artificial Figure 8. Perhaps counter-intuitively, intelligence) on jobs, having confidence people in the developed markets of in your ability to manage future change Japan, Germany and France are most is a critical determinant of optimism likely to say they do not remember and individual happiness. Our measure when they last had any digital training, of this need factors in the extent to or never have. People in the emerging which people feel their education has markets of China, India and Mexico are prepared them for a tech future, their least likely to agree with this statement. self-assessed level of digital skills and the extent to which employers enable them to utilise fully their digital skills.

Figure 8: Globally, one in three people can’t remember the last time they did any digital training (or never have)

When was the last time you undertook any digital training? (% responding either can’t remember or never have)

61%

49% 47% 46% 45% 40% 39% 38% 38% 37% 37% 34% 33% 33% 32% 31% 29% 26% 25% 25% 24% 22% 20%

15% 11% US UK Italy India Spain Brazil China Japan Russia France Ireland Poland Mexico Finland Estonia Canada Norway Hungary Thailand Australia Denmark Germany Singapore Netherlands

Source: Dentsu Aegis Network Digital Society Index Survey 2018

21 Digital Society Index 2019 Skills utilisation is also an area where Some corporations are responding people’s needs are not being met. directly to this need. Lloyds Banking Surprisingly, it’s in the Nordic economies Group is addressing people’s self- where this appears to be a particular fulfilment needs by tackling the skills challenge. Denmark, Finland and gap head on. As part of its Helping Norway make up the bottom three Britain Prosper plan, the UK bank has countries when people were asked committed to providing digital skills if their employer utilises their digital training, including training on internet skills (see Figure 9), with around four banking, for 2.5 million individuals, out of ten people in those countries SMEs and charities to build people’s believing this to be the case. digital skills and employability.

Figure 9: Employers are failing to utilise digital skills

To what extent do you agree or disagree that your employer makes it possible for you to use the full range and depth of your digital technology skills as part of your job? (average % of consumers with strong or very strong skills agreeing)

80%

73% 72% 70% 66% 62% 61% 58% 57% 57% 56% 55% 55% 53% 53% 53% 51% 51% 50% 47% 47% 43% 41% 40% 39% US UK Italy India Spain Brazil China Japan Russia France Ireland Poland Mexico Finland Estonia Canada Norway Hungary Thailand Australia Denmark Germany Singapore Netherlands

Source: Dentsu Aegis Network Digital Society Index Survey 2018

22 Digital Society Index 2019 Societal needs

In an age of complex societal challenges and create new jobs. In 2019, just less and a growing divide between the haves than half (49%) of people believe and the have nots, there is enormous this need is being met, with emerging potential for digital technologies to markets markedly more positive than play a critical enabling role in closing developed. China tops this measure with the gap. Across a range of challenges, 76% while Japan is bottom with 32%. from eradicating poverty to improving access to healthcare and education, Reflecting this overall trend, people we’re seeing the impact that digital are especially pessimistic about the can have in closing inequalities potential of digital technologies to and delivering a fairer society. create jobs—apart from in a handful of emerging markets (see Figure 10). This Ensuring that digital is able to fulfil is likely informed by the many scare this potential relies in part on people stories about the potential impact of sharing this optimism and trusting that AI and robotics on jobs, which have digital can be a force for positive change. generally varied between the uncertain Hence we measure societal needs (which and the unpalatable. These fears we called ‘digital engagement’ in our are likely to be felt in more mature 2018 report) in terms of how optimistic markets, while emerging markets remain people feel about the ability of digital optimistic, despite the potential impact technologies to enhance society overall on manufacturing jobs in particular. as well as solve key global challenges

23 Digital Society Index 2019 Figure 10: Only one third of people globally believe digital technologies will create jobs

To what extent do you agree or disagree that emerging digital technologies, such as artificial intelligence and robotics, will create career opportunities for you in the next 5-10 years? (% agreeing)

67% 66% 63% 61%

48% 42% 37% 36% 35% 33% 33% 32% 31% 31% 30% 28% 28% 26% 25% 24% 24% 24% 24% 23% 18% US UK Italy India Spain Brazil China Japan Russia France Ireland Poland Mexico Finland Estonia Canada Norway Hungary Thailand Australia Denmark Germany Singapore Netherlands

Source: Dentsu Aegis Network Digital Society Index Survey 2018

At 36%, the overall proportion of 10 to 24 countries. Based on a like- people believing digital will create jobs for-like comparison, 32% of people has increased from 2018, when just in our original 10 countries believe 29% of people believed this. However, digital will create jobs, signalling a this increase is partly explained by slight improvement in optimism. the increase in geographic scope from

24 Digital Society Index 2019 The inequalities of need

Our research highlights the extent Looked at in terms of age, it is significant to which people believe their digital that younger people score lowest on needs are not being addressed—but the measures for psychological needs. also that there is significant variation across the countries we’ve analysed. This trend appears to reflect how higher usage of digital technologies People in emerging markets tend to is seen to be taking its toll on young feel more satisfied that their needs people’s mental health and well-being. are largely being met, but have greater Brands, businesses and policymakers concerns about the psychological alike should be hugely concerned by impact of digital technologies. People in this growing crisis. Many governments developed markets are generally positive around the world are taking measures as far as their basic and psychological to address this—for example, by needs are concerned, but much less so setting up digital detox camps of the in respect of the capacity of digital to type seen in China. But are brands meet self-fulfilment and societal needs. stepping up to the plate too?

The framework also reveals differences Overall, a more balanced view of how by gender and age. While globally women well people’s digital needs are being are more positive than men in terms met can help improve our understanding of digital meeting basic needs, across of how to engage them as users and the other three building blocks there consumers. The personas on the is a significant gap. For example, in the following pages bring some of these Netherlands, the perception of the digital considerations to life, which we then economy positively impacting societal explore further in the next section. needs scores 42% among men but that falls to 30% for women. Most likely, much of this reflects educational gaps whereby STEM subjects are generally Younger people under-represented by girls and women from school through to higher education. score lowest on

Furthermore, the tech industry is the measures for notoriously male-dominated (see psychological needs ‘Spotlight: Women in Tech’) which may further compound negative perceptions among women about the wider potential of digital technologies in society.

25 Digital Society Index 2019 Spotlight: Women in Tech

The tech industry doesn’t have a great concerned. Women in IT have high self- reputation for gender diversity. Our fulfilment need scores (86%)—higher own survey shows that of the c. 3000 than their male counterparts (see Figure people working in IT, the gender split is 11) and way above the industry average broadly 35:65 in favour of men. The lack of 63%. 81% of women in IT believe their of gender parity within technology— education gave them the right digital and STEM jobs, in general—has brought skills for the workplace, but at 72% men women in tech into the spotlight and in IT are less convinced. And in terms of onto government and business agendas. societal needs, again women (81%) are Universities the world over have more positive than men (75%) about the bursaries and programmes for women potential impact of digital. While it’s hard interested in technology, like Adobe to provide a definitive interpretation of India’s Women in Technology scholarship these numbers, perhaps they represent programme, and charities which the impact of programmes designed encourage girls to learn digital skills are to increase female participation in the abundant, like Girls Who Code which sector by companies such as Google. has an alumni of over 90,000 students. However, women in IT have one of the lowest psychological need scores at just However, according to our framework, 19%, the only dimension on which they the gender gap is going in the other score lower than their male co-workers. direction as far as women in tech is

Figure 11: How women and men in the IT sector believe their digital needs are being met

Psychological Self-fulfilment Societal needs Basic needs needs needs

Women 74% 19% 86% 81% Men 62% 26% 81% 75%

Source: Dentsu Aegis Network Digital Society Index Survey 2018

26 Digital Society Index 2019 Raj

Basic Psychological 67% 27%

Societal Self-fulfilment 69% 74%

Age: 28 What does this mean for brands?

Occupation: Operations Technician Improving digital infrastructure is fast increasing Raj’s use of digital goods and Location: New Delhi, India services. Some developing countries are leapfrogging more mature markets in Archetype: Mindful Optimist terms of technology and user friendliness, unencumbered by legacy systems. This Raj is confident that technology can change enables brands to engage consumers like society in India for the better and solve global Raj by utilising the latest technologies to problems—or at least get him a job one day! offer engaging, personalised and innovative The operations technician is ahead of the consumer experiences to differentiate game and able to make full use at work of themselves. Furniture store Ikea, which the tech skills that he learnt at school. opened its first store in India in 2018, created immersive showrooms using virtual Happy with his new Samsung and its reality technology where products can connectivity, Raj now has more apps on his be viewed in 3D. As part of the store’s phone than he knows what to do with. Need opening to drive interest, customers were a taxi? A doctor? He’s got it all. And with all also provided with VR glasses to give a the data regs out there these days, he trusts virtual tour of the store and Ikea plans that businesses know what they’re doing. to open more stores in India in 2019.

However, Raj is a bit concerned that a lot has However, now that Raj is limiting his time changed very quickly. He worries that, deep online due to digital’s negative effect on down, the impact of digital isn’t making him his well-being, brands have an opportunity happy—in fact, quite the opposite. Taking to address this need through the way they time for himself offline to hang out with engage with consumers like him. For example, family or play with his local cricket team in as part of Google’s Digital Wellbeing south Delhi seem to be better for him. He’s Initiative, YouTube has introduced a feature to even got rid of Facebook and Snapchat—he remind users to take a break from watching figures his real friends have his number. videos and enables its users to track the time they have spent on YouTube over the last week with the aim of helping users to track their digital habits and curb device addiction.

27 Digital Society Index 2019 Jan

Basic Psychological 63% 34%

Societal Self-fulfilment 36% 36%

Age: 43 What does this mean for brands?

Occupation: HR Manager Having access to a high-quality infrastructure means that Jan engages Location: Maastricht, Netherlands with brands mostly online, but views them dispassionately as selling a product and Archetype: Experienced Cynic nothing more. Brands which fail to create a meaningful connection with consumers like Jan can barely remember a world without Jan run the risk of being abandoned when a technology. He makes the most out of his cheaper or quicker competitor comes on the quick Wi-Fi with his nightly Netflix binges and scene. Educating or upskilling consumers can uses apps for everything from reading to his build customer trust and engagement. Brands weekly food shop. Thankfully, 4G makes it that can bridge the digital skills gap felt so easy and Jan trusts (just about!) that his by people like Jan may greatly strengthen data is safe and secure. Besides, it’s not like their relationship with their customers. Jan has a choice. He’s become dependent on doing things with one click of the button. Why Jan’s doubts that technology can solve the fight the crowds when he can do it all online? world’s most pressing challenges would enable a brand to set themselves apart by Despite this dependency, Jan thinks that he’s showcasing the societal impact digital can been around technology long enough to know have. Outdoor clothing company Patagonia that it actually does more harm than good. has an impressive record of amplifying He can’t see tech fixing world problems like its social initiatives through social media. climate change—he can’t even see it getting In February 2018, it launched Patagonia him a promotion! Jan keeps hearing about Action Works, a digital recruiting platform all these exciting innovations, but he’s never which informs people of local environmental been offered any digital training at work. activism opportunities. Through its strong sense of purpose, Patagonia’s customers are And what’s more, Jan knows that technology engaged by not just its products, but with isn’t good for him personally. Constantly the brand itself; as of 2018, Patagonia is now looking at his phone was becoming a approaching $1 billion in sales annually. nasty habit, so his New Year’s resolution this year was to spend much less time online—and more time having fun!

28 Digital Society Index 2019 Lucia

Basic Psychological 35% 44%

Societal Self-fulfilment 62% 53%

Age: 21 What does this mean for brands?

Occupation: Student Lucia’s digital needs indicate that she is expectant but frustrated. As well as ensuring Location: Curitiba, Brazil the brand experience in-store is as compelling and personable as it is online, brands should Archetype: Frustrated Newbie pay attention to customers who experience low connectivity or are in remote locations. Lucia is fairly hopeful for the future that Brazilian retail company Magazine Luiza has technology could create. About to graduate seen rapid growth in its e-commerce service, from the Federal University of Paraná, but has been careful to cater to the needs the 21-year-old student feels more or less of Brazilians who are still acclimatising to prepared for the modern workplace and the digital economy. In many rural areas, believes that new technologies may open Magazine Luiza is the only department store the door to future career opportunities or, available and has repurposed many of these at least, make the world a better place. stores to include distribution centres to increase efficiency. It realises that having Lucia is nervous about how quickly her a physical store nearby (for picking up and country is changing though and wonders returning products) is critical for a population a little bit whether all this technology new to e-commerce. Its methods have kept is good for her self-esteem. She never competitors like Amazon at bay and the cared what others thought of her before company reported a net income in Q1 2018 she got Instagram. Although some of $41.5 million, up 152% from a year earlier. things can’t change quick enough—her Wi-Fi has dropped five times in the last To avoid losing customers like Lucia, brands month and her download speeds are so must also prioritise their customers’ trust slow, she can’t even stream music. in data security and privacy. By being transparent about how customer data Moreover, Lucia doubts whether businesses is being used and handled, brands can in Brazil—or even the government— reassure customers. In October 2018, Apple are keeping up with all the change. She launched a portal that enables customers recently switched banks because her last to see exactly what data the company bank suffered a data breach; it’s put her holds on them. This step follows on from off sharing too much online and she still its Privacy Icon launched earlier in the year, prefers to shop in-store, just in case. allowing its users to see what information the company gathers using applications. 29 Digital Society Index 2019 3. The impact on consumer behaviour

The digital needs framework can help For example, in the United States, just businesses better understand their 23% of people with below-average audiences and consumers. Having a more digital skills are more likely to use digital nuanced view of individuals and their products and services in the following attitudes towards the digital economy year. That proportion increases to 62% can help craft communications and among people with above average digital marketing strategies and shape the skills. A similar picture is seen in France, testing and roll-out of digital products where the population (52%) with above and services. For example, by prototyping average digital skills is more than twice new services across populations that as likely to use digital products and score both high and low across each services than people with below average level of the needs model, businesses can skills. A similar difference emerges develop stronger insights on adoption. between people whose societal needs But how else can this framework help are being met and those who are not. shine a light on consumer behaviour? A number of insights emerge. This means that brands, businesses and governments cannot just look Belief in digital drives the at consumers in isolation from the business case for action wider digital context shaping their future. Give people belief in digital It is clear that the more positive people and they will be more likely to use are about digital’s wider impact on digital products and services. Ensure society and on their own skills, the they have the skills to chart their own more likely they are to engage with destiny and they will engage more digital products and services. We with online commerce. This means examined a range of digital consumer that there’s not just an ethical case for activities—from online shopping and meeting digital needs and delivering banking to using an app to order a a digital economy that works for all— taxi—and correlated these against there’s a strong business case too. the building blocks of digital needs. The strongest correlations existed for self-fulfilment and societal needs, while the relationship with basic and psychological needs is markedly weaker.

30 Digital Society Index 2019 The new digital consumer: Paradoxically however, as our analysis Hardest to reach but shows, this digital consumer is also most valuable the most likely to shop online, use an app to take a taxi or stream music. In Our research also introduces us to a other words, today’s digital consumer new breed of digital consumer. She is is doing things that businesses might a digital native and is taking actions to perceive to be negative, but are in limit or control her online footprint that fact the most positive as far as their may appear problematic in commercial propensity to buy digital products and terms for businesses. For example, services is concerned. In fact, across she’s installing ad blockers that make seven online activities (shopping online, it harder to ensure digital ads are using an app to order a taxi, banking being seen by target audiences. She’s online, streaming music, watching TV, also reducing the amount of data she downloading a book and consulting a shares and time spent online, making virtual doctor), people are more likely it more difficult for businesses to to do these over the next 12 months if personalise products and services. As they have installed an ad blocker versus Figure 12 shows, these are all actions those who have not (see Figure 13). that people in our survey took in the 12 months leading up to it (i.e. from July/ August 2018 to twelve months before).

Figure 12: People around the world are taking actions to limit their online footprint

Have you taken any of the following actions over the last 12 months? (% choosing each option)

Taken steps to reduce the amount of data you share online (e.g. clearing search history, opting out of geo-location services etc.) 44%

Chosen to buy a product in-store rather than online 36%

Installed ad blocking software 27%

None of these 23%

Actively limited the amount of time you’re spending online or looking at your smartphone 21%

Deactivated a social media account 14%

Source: Dentsu Aegis Network Digital Society Index Survey 2018

31 Digital Society Index 2019 Figure 13: People are more likely to use digital products and services if they have installed an adblocker

Compared to last year, are you more or less likely to do the following? (% who did/did not install adblockers over the last year)

Installed adblocker Did not install adblocker

84% 77% 78% 77% 71% 70% 69% 62% 60% 57% 50% 47% 40% 33%

Do shopping Listen to Use an app Watch Use an app Read a Use an app online music via a to do their TV via a to book book using to consult streaming banking streaming a taxi a digital a doctor service service device

Source: Dentsu Aegis Network Digital Society Index Survey 2018

In some instances, these gaps are common among young people. Across particularly stark. For example, less all the measures we have explored that than half (47%) of people who did not relate to taking back control, it is people limit the amount of time they spent in the 18-24 or 25-34 age brackets online are likely to download an e-book. that are most likely to employ them. For people who have limited their time For example, 61% of 25-35-year-olds online, this proportion increases to 60%. in Estonia have taken steps to reduce Similarly, while two-thirds of people who the amount of data shared online, have not reduced the amount of data while in Canada nearly half (47%) of they share online are likely to use an 18-24-year-olds have installed ad online banking service, this proportion blocking software over the last year. increases to 77% for those who have taken steps to limit their data footprint. Overall, this trend is creating significant implications for brands, businesses The research indicates that people are and governments in terms of how they learning to manage the digital economy engage with consumers through digital on their own terms, taking back control channels. Increasingly, they will need and reducing their online footprint. to work harder to earn consumers’ But they’re doing so in a positive way— attention and find new ways to maximise selecting and maintaining the online the value of consumer interactions services they want. This is particularly that may be increasingly fleeting.

32 Digital Society Index 2019 Consumers have ‘red lines’ that begin to impact the consumer businesses must not cross decision-making process—the extent to which companies are While just a couple of years ago, automating their workforce? A lack consumer understanding of how digital of transparency around AI-generated businesses used personal data was algorithms?—businesses must respond generally poor, today there are fewer to people’s needs in the process hot topics. Misuse of personal data is of service and product design. the number one driver of distrust in the tech industry, according to our research, Based on our analysis, two problematic and as Figure 14 shows consumers will truths emerge. First, people’s digital not do business with brands they don’t needs are not being met. And second, trust with their data. Data use has this has a significant bearing on their become a red line for consumers that behaviour as consumers. The steps that businesses transgress at their peril. organisations can take to address the gaps in digital needs and strengthen These trends should inform how digital their relationship with consumers innovation is managed by businesses and is the focus of the next section. organisations. As other issues relating to corporate use of digital technologies

Figure 14: Eight out of ten people globally would stop doing business with an organisation that misused their data

To what extent would you be likely to stop doing business with an organisation that lost some of your data or used it irresponsibly? (% either likely or very likely)

86% 86% 84% 84% 83% 82% 82% 81% 80% 79% 78% 77% 77% 76% 76% 76% 78% 75% 75% 74% 73% 73% 73% 71% 69% US UK Italy India Spain Brazil China Japan Russia France Ireland Poland Mexico Finland Estonia Canada Norway Hungary Thailand Australia Denmark Germany Singapore Netherlands Source: Dentsu Aegis Network Digital Society Index Survey 2018

33 Digital Society Index 2019 4. Recommendations for brands, businesses and governments

The Digital Society Index provides In response to the many challenges a nuanced view of how effectively identified in our analysis, we’ve proposed countries are delivering a digital a separate set of recommendations economy that works for all. It also helps for brands, for businesses and for to reveal the extent to which people feel governments. These all have the aim of that these efforts are working. While meeting digital needs more effectively, there has been much debate recently ensuring better relationships between about the negative impacts of digital, brands and consumers as well as the long-run trend is one of huge benefit healthier digital societies overall. Given to people and the wider economy. the complexity of the challenge, these It is clear that making the process recommendations are not exhaustive. sustainable will rely on addressing They are intended to kick-start a people’s needs in digital, rather than discussion around practical action. pursuing innovation for innovation’s sake.

34 Digital Society Index 2019 For brands

Segment consumers and audiences to celebrate its thirty-year partnership by motivation and needs: Traditional with the Boston Athletic Association approaches to segmenting consumers and the release of a new running shoe by demographic characteristics are edition, Adidas created a personalised insufficient. By using a model like the video for each of the 30,000 runners digital needs framework to understand who took part in the Boston Marathon motivations for engaging with products in April 2018. Each video was created and services, brands can tailor their using high-tech chips attached to race strategies with far greater precision. bibs, street mats that transmitted radio The approach a brand might take to signals and a 20-person camera crew engage a consumer with a very low and was emailed to runners mere hours score on psychological needs might after the marathon was over. Capitalising be very different to the approach they on a popular event, Adidas’ media would take for someone whose self- campaign proved very effective; from fulfilment needs are largely being met. the brand’s year-to-date baseline, its Similarly, when it comes to prototyping email open-rate for the campaign was new digital products and services, it up 113% and its actual product sales might make sense to target a cohort garnered per email increased by 1,189%. with low levels of digital literacy or limited belief in the societal impact of Help people undertake their own digital. By recognising and engaging digital detox: With many consumers with these potentially marginalised taking steps to reduce the amount of groups, brands can ensure they are data they share and time spent online, developing more inclusive products and there is a loyalty premium in helping services that can more effectively be them interact with digital products and deployed across multiple markets. services on their own terms. If brands can put consumers’ needs first by supporting Focus on engagement, not reach: The their healthy engagement with the consumers most likely to use digital digital world, they will strengthen their products and services are also reducing customer relationships. Apple and the amount of data they share, installing Google have both unveiled features to ad blockers and overall managing their encourage their users to “digitally detox” digital footprint on their terms. This and even the dating app Bumble now places a premium on brands’ ability to offers its 40 million customers a snooze maximise the value of the interactions mode for them to take a one-day, one- they earn from consumers. For example, week or indefinite break from the app.

35 Digital Society Index 2019 For businesses

Compete on openness: which charts employees’ personalised Make transparency around data usage road map, taking employees’ career a positive source of differentiation. With journeys from where they currently use of personal data the number one are to where they want to be. The driver of distrust in the tech industry, portal enables employees to map the any business ignores it at their peril. jobs in demand within the company Australasian bank ANZ, in partnership and the long-term skills required. with digital agency Isobar, has set It then creates a curriculum for itself apart from the competition by employees to acquire these skills. transforming its loan application process The initiative aims to have retrained to be seamless and transparent for the 100,000 of its employees by 2020. customer through its Banker Desktop, a unified shared screen experience Showcase digital’s societal potential: enabling customers to take charge of Find meaningful ways to reinforce their financial health. Simplifying the understanding of the power of digital process for customers and bankers alike, technologies to improve society and the Banker Desktop only asks for the meet people’s needs and wants. In late most necessary data from the customer 2017 in partnership with digital agency and by focusing on transparency within 360i, National Geographic released the the customer experience, ANZ has been first-ever voice-powered meditation able to reduce its application time by app, the Bravo Tango Training App, 83%, giving the company back around for veterans to address mental health 1,660 hours daily across Australia. problems in their community. Meditation exercises range from breathing and focus Make better use of digital skills: to visualisation and muscle relaxation. Understand the digital skills that your The app recognises over 40 moods— employees have and constantly re- including anger, loneliness, fatigue, imagine work processes and organisation sadness and fear—to pair users to an design around the full spectrum of their appropriate exercise based on their abilities. One company keen to determine feelings. Since its launch, the app has its employees’ skills is multinational gained over 10,000 new users and the conglomerate AT&T. As part of its Future average time spent on the app in the first Ready initiative to reskill its employees month of its launch was 10 minutes. in technology skills, AT&T has created an AI-powered Career Intelligence portal

36 Digital Society Index 2019 For governments

Develop a balanced scorecard of It is currently working with Barcelona digital development: Metrics that City Council and its civic technology measure digital transformation should platform Decidim.org to enable citizens incorporate measures of inclusion to have their say while simultaneously and trust alongside growth of digital having control over their personal data. industries. In 2018 Denmark came Decidim will integrate with DECODE first in the biennial UN E-Government to provide citizens with a dashboard Survey, a ranking of the world’s best- view of their personal data— from performing digital governments, as a healthcare data to administrative open result of its digital-first strategy, which data—where they can control its use, mandates that all citizens must use such as in informing policy proposals. public services online and receive email, rather than physical post, from the Harness technology to enable more government. The system highlights the effective learning: Make it easier for importance of safeguarding public trust people to update their skills over the in this environment by a transparent course of their lifetime, leveraging commitment to making these services the potential of digital technologies safe and secure for citizens and to create more immersive learning businesses alike. Denmark’s digital experiences. In Singapore, the strategy includes efforts to support new government has utilised Virtual and business opportunities for the private Augmented Realities to create engaging sector and to encourage businesses’ learning modules and training for first- digital transition through improved and second-year medical students at framework conditions. New public- the National University of Singapore. Its private partnerships and efforts to VR system—Virtual Interactive Human make more public-sector data available Anatomy—enables its users to explore to businesses also drives innovation. the anatomy and manipulate different parts and structures using a VR headset Give people more control over digital and hand-held controllers, as well as innovation: Governments can take a take part in situational exercises that lead by involving people in the process would be difficult to replicate in real of deciding what is ethical and in their life. As of 2018, the system accounts interests, particularly as it relates to for 15% of the curriculum and the the ethics around use of personal data. University is looking to expand the In Spain, the DECODE project aims to system to nursing and postgraduate build a trustworthy digital society by students and to create more complex creating tools harnessing blockchain interactive virtual training scenarios. and cryptography technologies to give people back ownership of their data.

37 Digital Society Index 2019 Final word

Despite some of the scare stories, the future. For societal and economic digital technologies can enable us to reasons, we must ensure these needs be more connected, more creative and become the guiding principles for more human. But much of this potential future technological development. remains untapped. In the rush to grow a digital economy, we have neglected to Thirty years on from the birth of the design it around our fundamental needs. world wide web, we are at a critical Our digital needs model provides a point in the development of the digital framework around which new strategies economy. We still have the capacity can be built. The need to be connected to re-orient it more closely around through trusted networks; the need those human needs. But do we have to enjoy a balanced sense of personal the will? Our research indicates that well-being; the need to be fulfilled in the future of the digital economy our work; the need to look positively to depends on the answer being yes.

38 Digital Society Index 2019 Methodology

Dentsu Aegis Network believes in Data collection and analysis the importance of developing a digital economy that works for all. Fieldwork was conducted in July- That’s why we embarked on this August 2018 using proprietary Dentsu programme of research back in Aegis survey capabilities. We surveyed 2017, in collaboration with Oxford more than 43,000 people across 24 Economics, in order to understand countries: Australia, Brazil, Canada, how well countries are shaping that China, Denmark, Estonia, Finland, aspect of their development. France, Germany, Hungary, India, Ireland, This is the second edition of the Italy, Japan, Mexico, Netherlands, Digital Society Index research and our Norway, Poland, Russia, Singapore, approach to building the index rests Spain, Thailand, United Kingdom and on the same three key dimensions: the United States. Sample sizes were adjusted according to population size the extent to which Dynamism: to ensure they were representative. economies are driving growth through a dynamic Information and Secondary data has been sourced for Communications Technology (ICT) the most recent year available and sector (i.e. in terms of gross value added) from the most credible data providers Inclusion: how well economies to ensure robustness and international are sharing prosperity by gaining comparability. In constructing the index, access to the digital economy (i.e. equal weightings have been applied in terms of access to infrastructure, across all indicators. A detailed overview digital skills and jobs) of the index structure, data indicators and sources is included on pages 40-42. Trust: the extent to which the right enablers are in place to drive growth (i.e. in terms of appropriate privacy and security regimes, as well as the broader belief in the future of the digital economy).

This model captures the speed of growth (dynamism), the breadth of growth (inclusion) and the enabling environment that supports growth (trust).

39 Digital Society Index 2019 Index Structure

Pillar Dimensions Detailed title Source Year

Value added by ICT hardware and services sector Oxford Economics 2017

GVA Growth of ICT hardware and services Strong ICT sector Oxford Economics 2007- sector between 20067-2017 period 2017

R&D Expenditure as a share of GDP World Bank 2015

Number of world-class STEM universities QS Ranking 2018

OECD/China national Elite cadre of STEM graduates as percentage of total graduates Stats/Singapore 2015 digital specialists National Stats

Dynamism Prominence of ICT-related job listings in overall job listings (last 12 months) Google Trends 2018

Open Data Barometer score Open data barometer 2016 Focus on WEF - Network frontier Quality of laws relating to ICT Readiness Index 2016 technologies

Computer Science journals H-Index Scientific Journal Rankings 2017

World Input-Output Consumption of digital assets and services Database/Singapore 2014/ by non-ICT sectors as a share of GVA National Stats/OECD 2011

Share of ICT capital compensation in GDP Total Economy Database 2016 Widespread digitalisation Share of people who feel their personal Dentsu Aegis Network use of technology has not had a Index Survey 2018 negative impact on their wellbeing

Online advertising expenditure as Dentsu Aegis Network share of total advertising spend Ad Spend forecasts 2018

Quality of teacher training in ICT to The Web Index produce an educational outcome 2014

Government expenditure on UNESCO/National education as a share of GDP Stats China 2014 Inclusion Share of people who have received Dentsu Aegis Network training within the last three months Index Survey 2018

Opportunities Share of people with above average Dentsu Aegis Network for digital work levels of digital skills Index Survey 2018

Share of people with ICT skills who make Dentsu Aegis Network effective use of them in their job Index Survey 2018

Share of people whose education has provided Dentsu Aegis Network the digital skills required for digital jobs Index Survey 2018

Impact of ICT on the ability of women and The Web Index girls to claim and demand their rights 2014

40 Digital Society Index 2019 Index Structure

Pillar Dimensions Detailed title Source Year

Fixed Broadband Subscription per 100 people ITU 2016

Mobile Broadband Subscription per 100 people ITU 2016

Share of internet connections above 15 Mbps Akamai 2017

E-Participation Index score United Nations 2018

Number of connected devices per person Google Barometer 2018

Ratio of Fixed-line monthly broadband 2014 cost to GDP per capita ITU/OE

Availability of policies that promote 2014 free and low cost internet access The Web Index

Share of people with good and Dentsu Aegis Network 2018 excellent fixed internet speed Index Survey

Share of people with good and Dentsu Aegis Network 2018 excellent mobile internet speed Access to digital Index Survey services Share of people with good and

Inclusion Dentsu Aegis Network 2018 excellent fixed internet coverage Index Survey

Share of people with good and Dentsu Aegis Network 2018 excellent mobile internet coverage Index Survey

Share of people who think that fixed internet Dentsu Aegis Network 2018 affordability is good and excellent Index Survey

Share of people who think that mobile Dentsu Aegis Network 2018 internet affordability is good and excellent Index Survey

Absolute distance from equality (difference between the percentage of daily internet Google Barometer 2018 usage by milennials and older cohorts)

Absolute distance from equality (difference between the percentage of Google Barometer 2018 internet usage by male and female)

Share of individuals using the internet ITU 2016

41 Digital Society Index 2019 Index Structure

Pillar Dimensions Detailed title Source Year

Number of secure Internet Servers per 1 million people World Bank 2016

Global Cyber security Index Score ITU 2017

Effective legal protection from cybercrime The Web Index 2014 Security Share of people who believe they can trust Dentsu Aegis Network businesses to keep their personal data secure Index Survey 2018

Share of people who believe they can trust Dentsu Aegis Network governments to keep their personal data secure Index Survey 2018

Strength of data protection laws DLA Piper 2018

Quality of legal or regulatory framework for protection of personal data in countries The Web Index 2014

Share of people who trust businesses to Dentsu Aegis Network protect the privacy of their personal data Index Survey 2018 Privacy Share of people who trust government agencies Dentsu Aegis Network to protect the privacy of their personal data Index Survey 2018

Trust Share of people who believe that businesses are Dentsu Aegis Network transparent in the use of their personal data Index Survey 2018

Share of people who believe that governments Dentsu Aegis Network are transparent in the use of their personal data Index Survey 2018

Price to Earnings ratios for technology stocks Bloomberg 2018

Forecasted investment by ICT sector 2028 as a share of the sector's GVA Oxford Economics 2028

Index score relating to innovation capabilities INSEAD,WIPO,Cornell 2018

Share of people believing that the positive Dentsu Aegis Network Future Outlook impact of technology will outweigh the 2018 negative impact over next 5-10 years Index Survey

Share of people who agree that emerging Dentsu Aegis Network digital technologies will create job 2018 opportunities over the next 5-10 years Index Survey

Share of people who agree that technology will Dentsu Aegis Network help solve the world's most pressing problems Index Survey 2018

42 Digital Society Index 2019 About Dentsu Aegis Network

Part of Dentsu Inc., Dentsu Aegis Network is made up of ten global network brands—Carat, Dentsu, dentsu X, iProspect, Isobar, mcgarrybowen, Merkle, MKTG, Posterscope and Vizeum and supported by its specialist/multi-market brands. Dentsu Aegis Network is Innovating the Way Brands Are Built for its clients through its best-in-class expertise and capabilities in media, digital and creative communications services. Offering a distinctive and innovative range of products and services, Dentsu Aegis Network is headquartered in London and operates in 145 countries worldwide with more than 47,000 dedicated specialists.

For further information please contact

Global head of thought leadership [email protected]

43 Digital Society Index 2019