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| The rising stakes of digital leadership
FROM THE ECONOMIST INTELLIGENCE UNIT
Emerging countries led by Asia are catching up with the traditional leaders in the digital space, according to the latest EIU e-readiness rankings
The global digital gap – although still very real – is closing in. According to the 2007 EIU e-readiness rankings, which assess the IT environment in 69 countries globally, the distance between the lowest and highest scoring countries shrank again last year. And some countries, especially in Asia, have made major strides up the scale. Hong Kong and Singapore showed the highest rise to reach 4th and 6th place (from 10th and 13th respectively). South Korea, Taiwan and Japan also got higher scores and ranks.
At first glance, the 2007 world digital map put together by the EIU seems little unchanged from previous years: the top ten leaders are all the same as in 2006, with the exception of leaping in and Canada dropping from 9th place to 13th. Denmark and the US retain their first and second spots in the rankings, with Sweden tied for second. But upon closer examination, the rankings reveal a changing picture, with many surprises as well as encouraging signs.
Launched in 2000, the EIU e-readiness rankings use a model developed together with the IBM Institute for Business Value. The rankings evaluate a country's e-business environment and how amenable a market is to internet-based opportunities. Not all of these measures are market-led. The impressive performance of Asia countries this year, for example, has aided by the strong government role in promotion and adoption of ICT – a new factor measured in the e-readiness rankings this year.
Market-led forces, however, are helping to narrow the digital gap between rich and poor countries. Broadband in emerging markets is becoming increasingly affordable, according to the EIU. This has helped nascent broadband markets to increase their connectivity score – Pakistan, for instance, jumped four places on the overall scale.
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| If Wolfgang Amadeus Mozart and Elton John traded their places in history, would Mozart have become the biggest rock star of our day? Would Elton John have been the greatest composer of all time? Both men were blessed with perfect musical pitch, a prodigious work ethic, spectacular manual dexterity and a driving ambition. However, while one composed "Eine Kleine Nachtmusik" and charmed the royal courts of Europe in the late 1700's, the other wrote "Candle in the Wind" and played to sellout crowds in Madison Square Garden.
What about Jack F. Welch Jr., the legendary chairman of the General Electric Company, and Jeff Bezos, founder and chief executive officer of Amazon.com Inc.? Would they be as successful if they found themselves in each other's shoes? In both cases, our answer is "yes."
Musical experts agree that the inherent qualities that make artists great are as relevant today as they were in Mozart's time. So too would we argue that the fundamental characteristics that make for outstanding business leadership are as applicable for the New Economy as they were in the Industrial Age. However, just as Elton John enhances his music with digital effects and produces music videos for VH1, business leaders must adapt to today's realities. Digital leadership demands living by the enduring principles that make for success, and augmenting them with new qualities that enable speed, flexibility, risk-taking, an obsession with customers and new levels of communication inside the organization.
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