Presentation to 2016 INCA Conference

1. Connect where it counts
Mapping your transformation into a digital economy
with Global Connectivity Index 2016

2. 3
Content
Why GCI
GCI Methodology
Call to Action
GCI 2016 Key Findings
National analysis
Industry analysis

3. 4
Why GCI

4. 5
A revolutionary shift is happening in the way the world works,
with economies across the planet going digital fast
The Global GDP forecast 2016
0-2%
2-4%
>4%
WORLD
TOTAL
2.7
Source：Economist Intelligence Unit
Western Europe
1.8
North America
2.3
Eastern Europe
1.2
Middle East/
North Africa
3.0
Latin America
0.6
Sub-Saharan Africa
3.5 Australasia
2.6
Japan
1.7
Asia
5.4
140 countries have developed national broadband plan strategy or policy - ITU
Industry 4.0 Internet PlusAdvanced Manufacturing 2.0
Singapore Smart Nation Digital Canada 150 Smart Digital Malaysia
Nigeria National
Broadband Strategy
Colombia Live Digital Connected Argentina
Countries are setting policies to encourage ICT investment

5. 6
GCI：Benchmarking digital economy transformation
Traditional Economy Digital Economy
The GCI provides a comprehensive and objective assessment of a country’s
connectivity from both a national and business perspective, and assesses the
current status, future trends, and challenges associated with digital transformation.
It quantifies the value that connectivity generates for a country’s transformation into
a digital economy, and serves as a reference for regional and national policy
makers.

6. 7
GCI: Focusing on economic digitization since 2014
Scope
Research theme
White paper
2014 1st release
New economic
barometer
2015 2nd release
Full national
assessment
2016 3rd release
Digital economy
model
25 nations
16 indicators
50 nations
38 indicators
50 nations
40 indicators
10 verticals

7. 8
GCI Methodology

8. 9
GCI methodology matrix: 4 economic pillars by 5 technology
enablers
SUPPLY DEMAND EXPERIENCE POTENTIAL
Fundamental :
e.g ICT laws, application, e-Government, R&D …
GCI Scoring Model
IOT
BIG DATA
CLOUD
DATA CENTERS
BROADBAND
5TechEnablers

9. 10
SDEP: 4 pillars encompass the entire chain of ICT development
to provide a 360-degree view of the digital economy
SUPPLY
Measures current level of supply for ICT products
and services.
DEMAND
Gauges demand for connectivity in the context of
users and activity.
EXPERIENCE:
Analyzes the experience of connectivity for end
users and organizations
POTENTIAL
Comprises a forward-looking set of indicators that
point towards the future development of the digital
economy
Potential
Driving Digital
Future Momentum

10. 11
Realizing economic transformation with 5 technology enablers
Communication and computing network
forms the foundation of connectivity
Cloud Services enables the
distribution, adoption and access to
the communications and computing
foundation
Big data analytics runs on top to
convert data into information and
information into solutions and
innovation
IoT turns most things into
autonomous computing
systems that collect data,
provide solutions, and drive
innovation
Future
technologies riding
on smart IoT drive
augmented
innovation
Broadband
Data Centers
Cloud
Big Data
Internet
of Things
Communication foundation for
collecting and sending data to
users and machines.
Availability and affordability are
demand drivers.
Security and responsiveness are
experience drivers.
Computing and storage facilities for
providing computing power and
warehousing data.
Access and scalability are demand
drivers.
Responsiveness and computing power
are experience drivers.
Distribution model for mass market
access to computing and storage
capabilities.
Access and affordability are
demand drivers.
Security and responsiveness are
experience drivers.
Applications and analytics convert
data into information and insights.
Data abundance and computing
capabilities are demand drivers.
Data quality and real-time are
experience drivers.
Sensor and actuator networks for
data collection and response.
Availability of network and
application areas are demand
drivers.
Quality analytics and applicability
are experience drivers.

11. 12
GCI 2016 research scope
Industry view
analysis
Nation view
analysis
50countries
90%GDP
78%population
3000firms
10Vertical
10nation

12. 13
Country evaluation done based on 40 indicators
Supply Demand Experience Potential
Fundamentals
Broadband
Data Centers
Cloud
Big Data
IoT
ICT Investment
Telecom Investment
ICT Laws
International Internet Bandwidth
Fiber Optic
4G Coverage
Data Center Investment
Cloud Investment
Big Data Investment
IoT Investment
App Downloads
Smartphone Penetration
eCommerce Transactions
Computer Households
Fixed
Broadband Subscriptions
Mobile
Broadband Subscriptions
Data Center Equipment
Cloud Migration
Analytics Data Creation
IoT Installed Base
E-Government Service
Telecom Customer Service
Internet Participation
Broadband
Download Speed
Fixed
Broadband Affordability
Mobile Broadband
Affordability
Data Center Experience
Cloud Experience
Big Data Experience
IoT experience IoT Potential
Big Data Potential
Cloud Potential
DC Potential
Mobile Potential
Broadband Potential
Software Developers
IT Workforce
ICT Patents
R&D Expenditure

13. 14
GCI 2016 Key Findings:
National analysis

14. 15
GCI 2016 key findings
Economic digitization is accelerating as strong digital
infrastructure improves the quality of economic growth.
GROW
Not all countries are fully reaping the benefits of the digital
economy.
GAP
Some countries show fewer gains than others, but there are clear
ways for them to improve.
IMPROVE
Five technology enablers pave the way for national-level
transformation into a digital economy.
ENABLER
GROW GAP IMPROVE ENABLER

15. 16
Transformation into a digital economy is accelerating
51%
6.45
18%
61%
65%
GCI
2016
GrowthGCI
2015
Smartphone Penetration
4G Coverage
Analytics Data Creation
44%
13%
3.91
21%GCI score
From43.4
To45.5
Global connectivity
5%
GROW GAP IMPROVE ENABLER

16. 17
Digital infrastructure drives the quality of economic growth
A one-point increase in GCI does the following for your nation:
Inclusive development
Improving productivity as it
brings rural and
disadvantaged communities
into the digital economy.
Innovation-driven
development
Disrupting and reconstructing
traditional industries, boosting
efficiency and specialization
Sustainable
development
Driving long term
competitiveness in the face
of emerging environmental
concerns and regulations
1pt
Increase
in GCI
2.1%
Increase in
competitiveness
2.2%
Increase in
Innovation
2.3%
Increase in
productivity
GROW GAP IMPROVE ENABLER

17. 18
Most countries have embarked on the road to a digital
economy, but they are at different stages
Developing countries
GROW GAP IMPROVE ENABLER
ICT investment
per GDP
IT workforce IoT install base
per capita
App downloads
per capita
Mobile broadband
subscriptions per
capita
2% 0.4%
1
19 43%
5%
2.8% 6
35
99%
Developed countries

18. 19
Country ranking and performance
GROW GAP IMPROVE ENABLER
Frontrunners SCORE
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
United States
Singapore
Sweden
Switzerland
United Kingdom
Denmark
South Korea
Netherlands
Japan
Norway
Australia
Germany
France
New Zealand
Canada
Belgium
74
72
70
68
65
64
63
63
62
61
59
59
58
58
57
57
Adopters SCORE
17
18
19
20
21
22
23
24
25
26
Spain
Portugal
UAE
Czech Republic
Qatar
Italy
China
Chile
Malaysia
Russia
51
50
50
48
47
46
44
44
44
43
Adopters SCORE
27
28
29
30
31
32
33
34
35
36
37
Poland
Saudi Arabia
Romania
Brazil
South Africa
Mexico
Colombia
Thailand
Turkey
Argentina
Peru
43
43
42
39
39
38
37
37
37
36
35
Starters SCORE
38
39
40
41
42
43
44
45
46
47
48
49
50
Philippines
Egypt
Venezuela
Indonesia
Morocco
Vietnam
India
Algeria
Kenya
Ghana
Nigeria
Bangladesh
Pakistan
33
32
32
32
30
30
30
28
27
27
26
23
21

19. 20
Country ranking comparison
Drop in
GCI Ranking and
Score
Rise in
GCI Ranking and
score
-2
2
6
-6
5 20 40
Note: For comparison, scores and ranks for 2015 have been recalculated using GCI 2016 methodology
GROW GAP IMPROVE ENABLER
10 15 25 30 35 45 50
4
-4

20. 21
The GCI metric reliably indicates where a nation is located
on the road to a digital economy
GROW GAP IMPROVE ENABLER
85K
55K
25K
GCI 2016 SCORE
NOMINALGDPPERCAPITA
35 55 85
Pakistan Bangladesh
Algeria
Kenya
Nigeria
Vietnam
India
Philippines
Egypt
Venezuela
Morocco
Ghana
Indonesia
Peru
Turkey
Mexico
Thailand
Colombia
South Africa
Brazil
Romania
Russia
Saudi Arabia
Argentina
China
Malaysia
Chile
Poland
Czech Republic
Portugal
Italy
Spain
United Arab Emirates
South Korea
Japan
New Zealand
Belgium
Canada
Germany
France
Netherlands
United Kingdom
Australia
Denmark
Sweden
Singapore
United States
Qatar
Norway
Switzerland
Strongest Multiplier effect*
Starters
Average US $ 3,000 GDP
Adopters
Average US $ 15,000 GDP
Frontrunners
Average US $ 50,000 GDP

21. 22
Countries with different levels of connectivity should have
different development focuses
0
10
20
30
40
50
60
70
80
Supply Demand Experience Potential
starters Adopters Frontrunners
Starters:
Focus on increasing ICT supply to give more people
access to the digital world
Adopters:
Focus on increasing ICT demand for industry digitization
Frontrunners:
Focus on improving the experience of ICT users for
efficient and smart socioeconomic development
GROW GAP IMPROVE ENABLER

22. 23
Indonesia: Increasing ICT supply to give more people access
to the digital world, 90% of investment is on ICT hardware
Policy
is making its
difference
Indonesia Broadband Plan
(IBP)
On a national scale, the IBP
aims to provide fixed
connectivity through fiber
alongside mobile voice and
data services, and through its
usage to formulate a 5G
service plan by 2020.
Getting the nation healthy with
Indonesia Sehat (Healthy
Indonesia)
ICT was introduced into the
healthcare system in 2014, a
central feature of which was a
smart health card for each citizen,
which has in large part driven the
Indonesian Broadband Plan (IBP)
alongside the faster rollout plan for
rural Indonesia by 2019.
Data center networks:
an international approach
The government is starting many
partnerships with foreign tech
vendors such as Japan’s NTT on
the processes and core
infrastructure for upgrading DC
services.
Big gains with big ICT investment
Industry levelCountry level
8.3 %
US$33 billion in ICT investment in 2016
8.3 percent growth compared with 2015
US$33
billion
2015
2016
Media and
communicatio
n
BFSI
US$4
billion
US$1.2
billion
GROW GAP IMPROVE ENABLER

23. 24
China: Increasing ICT demand for industry digitization and
high-quality economic growth
Tapping on
its potential
Going digital by increasing ICT demand
E-commerce is on the rise –
between 2006 and 2014,shipping
leapt tenfold from 1 billion to 10
billion packages delivered.
video is becoming the new star of
the show – a total of 46.6 million
homes were enjoying IPTV in China
in 2015, a 13-million jump from
2014.
China is eyeing cloud services, big
data analytics, and IoT with slew of
initiatives concentrated in selected
sectors of the economy.
As the fourth largest country in the
world in physical size, the
government faces a Herculean task
to push coverage and impressive
initiatives like 4G and FTTH, to a
wider base. There’s also much to
be done to encourage enterprises
to harness the power of the cloud
by solving security, latency, and
broadband issues.
Next step: a truly digital
China will take shape
Facilitating high-quality economic growth
ICT spending:
China spent
US$415
billion in 2015.
GROW GAP IMPROVE ENABLER
IPTV

24. 25
The UK: Boosting user experience and using big data analytics
and IoT to develop a smarter, more efficient society
Driving change from
the top with IoT
Today, the UK government is
on a mission that it’s
passionate about: enhancing
the island nation’s
connectivity over the next
five years by boosting
access to superfast
broadband and 4G
95% of
properties will
have superfast
broadband
By 2017
Boosting user experience
Big spending on big data
The government has stepped up spending on big data.
In February 2014, it allocated ￡73 million to big data
research, including ￡50 million on bioinformatics, ￡4
million on 21 open data projects, ￡14 million on 4
new research centers, and ￡4.6 million on 24 projects
centering on environmental data.
Great importance to the IoT’s future
In addition to investing in big data, the UK government
committed ￡40 million to the IoT UK program in
September 2015.
As part of the government’s digital economy strategy,
the UK has also pledged ￡30 million a year between
2015 and 2019 to support
IoT innovation.
It’s not just the government manning the helm; movers
in the private sector, notably telcos and IT service
vendors, are pushing
IoT growth by launching new services.
GROW GAP IMPROVE ENABLER

25. 26
Countries need to move up the technology stack to drive further
GDP gains and enter the Augmented Innovation stage
Foundation Innovation Internet Innovation Data Innovation Augmented Innovation
IoT-centric
Big Data-centric
Cloud -centric
Datacenter-centric
Broadband-centric
NominalGDPpecCapita
15 10035 55 85
80K
0K
Countries in this stage are still
building their foundation.
Countries in this stage have
already invested in connectivity
technology and are looking to drive
cloud adoption.
These nations represent the current
GCI leadership. Focus continues to
be on big data and the drive towards
IoT adoption.
GROW GAP IMPROVE ENABLER
No country has yet reached this
stage. big data maturity
incorporated into smart IoT

26. 27
Countries need to develop ICT technology based on their
specific situations
0
10
20
30
40
50
60
70
80
Broadband Data centers Cloud Big Data IoT
starters Adopters Frontrunners
Starters:
Focus continues to be broadband and data centers
investment
Adopters:
Cloud migration and driving adoption continue to be
a focus
Frontrunners:
Focus continues to be on big data and the drive
towards IoT adoption
GROW GAP IMPROVE ENABLER

27. 28
Case: SMART TRANSPORTATION
Smart Transportation
THE FIVE TECH ENABLERS
IN ACTION: SMART CITIES
Cameras
Shows congestion
and detects accident areas
IoT Sensors & Devices
Sensors embedded in roads
record traffic density and speed
Data Center
Stores the high volume of data
Provides high-powered computing resources
Cloud Services
Cloud services are a
good way to deploy
compute capabilities
across different regions
departments
and technology
platforms
Big Data Analytics
Processes data in real-time, considers other
roads and weather conditions, compares
historical road usage patterns, consider school
locations and office work hours to avoid rush hours.
High speed
broadband network
provides the
connectivity
Smart Devices
Traffic signals divert
drivers to alternate routes
Smart cars change
alternative routes
More trains & busses
are deployed
People are instructed to
leave earlier or later or use
alternative transport
GROW GAP IMPROVE ENABLER

28. 29
GCI 2016 Key Findings:
Industry analysis

29. 30
Industry digitization and national GCI scores positively correlate
80
60
40
20
0
GCISCORE
INDONESIA
MEXICO
SOUTHAFRICA
BRAZIL
MALAYSIA
CHINA
UAE
GERMANY
UK
USA
DXSCORE
100
75
50
25
0
16 20
15
25 23
31 28
54 54 54
32
38 39 39
44 44
50
59
65
74
DX: Industry digital transformation

30. 31
Industry digitization: the BFSI sector leads
BFSI ICT Logistics Resources Retail Education Government Manufacturing AgricultureHealthcare
Industry digital transformation
BFSI = Banking, Financial services and Insurance

31. 32
Broadband investment is a key requirement identified by
industries to build a digital economy
Technologies that companies believe will impact their business the mostPriorities for investing in technologies in 2016
Starters Adopters Frontrunners
Broadband Data center Cloud Big data IoT
Broadband Data center Cloud Big data IoT
Starters Adopters Frontrunners

32. 33
Call to Action

33. 34
Considerations:
Policies institutions and
incentives：
Policies set the direction of digital
transformation, and form the legal
basis for a nation to act.
Incentives set the speed and depth
of change and institutions drive
change, provide governance, and
monitor progress.
Manpower and skills：
Skilled manpower is at the heart
of digital transformation.
Technical, management, policy,
and planning skills are all needed.
IT literacy is crucial as it affects
how digital content is consumed
and adopted by people at large.
Digital ecosystem:
Governments need to take the
lead in digitally transforming
themselves, driving cross-
industry collaboration, and
building long-term partnerships
with the private sector and the
financial world to create a
robust ICT ecosystem.

34. 35
Recommendations for Starters:
Policy
Markers
Industry
Leaders
Increase ICT investment as a percentage of GDP to
expand mobile broadband nationwide.
Reduce tariffs and subsidize smartphone adoption to
get smart devices into homes.
Promote investment in DCs by third parties to meet
national computing needs.
Open up the market to telcos to widen coverage and
make broadband affordable through competition.
Plan high-speed broadband through 4G and FTTH
rollout.
Act now to plan digital transformation initiatives, even
if it’s only high-speed broadband for e-commerce. The
majority of enterprises in the Foundation Innovation
stage are in Phase 1 of digital transformation – now is
the time to get ahead.
Lobby the government to define a national standard
for high-speed broadband bandwidth, coverage, and
speed over the next one to two years to support
industry digitization.
Step up cloud services to support digital
transformation.

35. 36
Recommendations for Adopters
Policy
Markers
Industry
Leaders
Prioritize government digitization so governments can
serve as leaders in digital transformation.
Encourage enterprises, the government, and
consumers to adopt cloud services.
Encourage enterprise to use Software-as- a-Service
to promote efficiency and lower costs.
Encourage technology startups to use Platform-as-a-
Service to encourage innovation and lower the bar for
market entry.
Develop plans for rolling out big data analytics to
support industry digitization.
Assess the overall digitization status of enterprises
and industry, and develop a clear mandate for
adopting the five technology enablers to transform
verticals and enterprises.
Use the affordable and scalable architecture of cloud
services to enable digital transformation initiatives and
deploy ICT solutions.
Integrate big data analytics solutions to shift national
digital transformation from Adopter to Frontrunner and
industry digitization from Phase 2 or 3 to Phase 4.

36. 37
Recommendations for Frontrunners
Policy
Markers
Industry
Leaders
Develop industry ecosystems that enable cross-industry
collaboration to produce new IoT ideas, products, and
services that can change how business is conducted.
Upgrade to ultrafast, low-latency, next-gen networks.
Accelerate cloud services in all verticals so the cloud can
become the platform for ubiquitous computing.
Promote government and enterprise investment in big data
analytics by making anonymized public data available;
incentivize the use of analytics and provide training in its use
for all enterprises.
Develop strong data policies to make more data available for
sharing to enrich the value it provides; build a robust data
market framework for sharing anonymous data for analytics;
make the government database library available.
Assess industry and enterprise digitization levels to
develop a clear mandate for adopting the five
technology enablers for transforming verticals and
enterprises.
Invest in big data analytics and use public data,
operating data, and customer data to raise
productivity and innovation.
Join industry innovation clusters to create new
products and services that can disrupt competition
and create new markets.

37. 38
A snapshot of GCI 2016
Supply
10 indicators like
4G, broadband, and
investment analyze
AVAILABILITY
Demand
10 indicators
such as e-commerce
and app downloads
analyze national tech
ADOPTION
Experience
10 indicators
including
download speeds
and broadband
affordability analyze
QUALITY
Potential
10 indicators like
patents and R&D
analyze future
CAPABILITIES
IoT
Big Data
Cloud Services
Data Centers
Broadband
Foundation
Innovation
Internet
Innovation
Data
Innovation
Augmented
Innovation
Starters
Adopters
Frontrunners
economic pillars
that underpin
clusters emerged in 2016
Where are you?
50
40
4
5
4
3
countries
indicators
measure
tech enablers
which determine
stages of
innovation
and
For
The GCI is a rich and deep dataset that
serves as a blueprint for individuals and
organizations to analyze a wide range of
factors relating to digital transformation,
ICT development, and the economic
benefits of connectivity. The overall index
rankings provide a snapshot of the current
state of connectivity across the global
digital economy, forming a leading
indicator for the next decade of ICT
expansion and evolution.
To further explore the Index and download
the entire whitepaper visit:
www.huawei.com/gci

38. Copyright©2016 Huawei Technologies Co., Ltd. All Rights Reserved.
The information in this document may contain predictive statements including, without limitation, statements regarding the future financial
and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and
developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for
reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.
Thank you