These days “digital transformation” is trending topic. Companies must move their traditional models and/or process towards a new solutions much more technical. For sure, this transformation started a few years ago and most companies and its areas are adapting as best as they are capable.
If we take a look to a macroeconomic point of view we notice that not only companies are accomplishing this change but also countries are adapting and digitally transforming. The most notorious issue is the appearance of “digital economy” in the measurement of the GDP of each country. Economies have been pushed to include it in their accounts.
This measurement turns out to be of utter importance. Experts say that increasing investments in Information Technologies areas by a 20% means an increase of 1% in the GDP. This is important because it helps governments to define the next-year budget. They need to know how much and where to invest, and overall calculate the expected results that their actions will have in their economy.
However, it is very difficult to take this measurements. In the traditional world the GDP was calculated using the monetary transactions. Nowadays, in the real world this is quite more complicated due to free services that appear in the digital world which size is enormous. We are talking about services like Google, YouTube, Wikipedia and a few others. How can you measure the impact of these ones? Nowadays, experts make a guess about the time end users spend using free services and they apply it to the GDP.
The importance of the digital economy in the GDP
These values might seem not to have any importance at all. However, having in mind that, in case of Chile, the 3% of the GDP is quite close to the rate of the food industry or even to the gas, light and water services, then you may realize that it is quite important.
Indeed, there is a big different with other industries in the GDP. Experts point out that digital economy will increase, year after year, and in 3 years more it will be around 4,5%, i.e. by 2020. No doubt, it is a very important indicator for investors, governments and companies to decide where and when to make the economic investments.
In the next days we will explain a little bit more about the digital economy in Chile and its evolution. Besides, we will explain why Ireland has got such high rate of the GDP.