The Global Connectivity Index (GCI) is a barometer of Information and communications technology developed by Huawei. It measures investment in ICT infrastructure and the intensity of its use to illustrate how nations and industries benefit from the resultant value - a useful reference for future investment. This is the industry's first quantitative assessment of connectivity in different countries and industries.
With findings from 25 developers and 10 industries, including finance, manufacturing, education, transportation and logistics, the report is the first quantitative assessment of connectivity and its value from both national and industrial perspectives. 25 countries, that account for 70% of global GDP, are gauged in terms of their Current Connectivity and Growth Momentum, providing an intuitive glimpse into their efforts to ubiquitize and benefit from broadband.
Enterprises from both developed and emerging countries were included in the study, providing data across ten industries including finance, manufacturing, education, transportation and logistics, while also assisting with analyzing the findings and identifying trends. Huawei surveyed over 1,000 executives from 10 industries as to their ICT investment plans the benefits they have seen from the same in terms of efficiency, innovation, and customer engagement, giving business decision-makers an overview of the business transformation process and how digital reformation can drive competitive advantage.
The GCI study found that country connectivity correlates with GDP, with Huawei's analysis of 16 indexes showing that for each GCI percentage point increase the GDP per capital increases 1.4–1.9 percent, relatively higher for emerging countries. Among the countries surveyed, Germany ranks first due to its strong commitment and ongoing investment in information and communications technology (ICT) development, resulting in a market with competitive vitality.
The study also found that developing countries have also started to accelerate growth by investing strategically in ICT capabilities. The GCI report showed developing countries such as Chile, Kenya and Egypt had the highest growth momentum. Through centralized planning, potential connectivity can be fully leveraged and ICT capabilities will support positive growth of national economies.
Huawei forecasts that by 2025, as many as 100 billion connections will be generated globally, 90 percent of which will come from intelligent sensors. This increase will be attributed to enterprises becoming enabled by the internet. By leveraging connectivity to streamline business processes, reduce costs and improve efficiency, enterprises will drive innovation and move the focus from a consumer driven internet to an industrial one.
The report looked at how different enterprises invest in and gain value from ICT to further identify why some industries are undergoing a digital transformation and some aren’t. In this process, the report was able to allocate each industry to one of four quadrants, Transformers, Strategists, Tacticians and Stragglers. It identified that Transformers regard ICT as a core driving force for business transformation and continuously invest and proactively reshape their ICT business models. Industries such as finance, education, oil and gas and manufacturing demonstrate ICT enabled transformation. With 71 percent of finance enterprises indicating their ICT investment will increase by more than five percent over the next two years, it is the highest ranking industry for development. The GCI reports that 65 percent of enterprises plan to increase their ICT investment over the next two years.
Mobile broadband, cloud computing, Big Data and the Internet of Things (IoT) are the four technological engines that most enterprises aim to focus on when completing ICT enabled transformation. Huawei forecasts that by 2020, global ICT spending will increase to approximately US$5 trillion. Today, ICT technologies based on connectivity remains significant as a support system, but this traditional role is giving way as ICT becomes increasingly integrated with production systems, driving value creation. Connectivity has become a new factor for production in addition to land, labor, capital, and technology.