The purpose of this research study consisted in contributing elements of analysis to identify the main challenges and opportunities that face the National Digital Strategy to fulfill its mains goals by 2018

1. Challenges and
Opportunities of the
Digital Strategy in
México
1
Armando Peralta Díaz
armandopdiaz@gmail.
com @armandopdiaz

2. DG.0 2014
15th Annual International Conference On
Digital Government Research
Centro de Investigación y Docencia
Económicas (CIDE)
Aguascalientes City, Aguascalientes, Mexico
June 18-21, 2014

3. Target.
Information Society and Knowledge.
The Digital Economy in México.
Challenges of National Strategy National.
Conclusions and recommendations.
Thematic
lines
2
3
1
2
3
4
5

4. TARGET
4

5. The purpose of this research
study consisted in contributing
elements of analysis to identify
the main challenges and
opportunities that face the
National Digital Strategy to
fulfill its mains goals by 2018
TARGET
5

6. 6
ISK. Digital
Paradigm (1)
Conversion of
information
into bits
made the
configuration
of the four
subsystems
that comprise
the ICT system. 6
ICT
System
Uptake
and
interoper
ation
Transmis
sion
Comput
ing
Storage

7. The main idea of representing
information using the binary
method and the convergence of
the four basic operations of the ICT
system, are the engine that drives
the digital paradigm.
Thus, information becomes the
main ingredient for the generation
of knowledge.
ISK. Digital Paradigm (2)
7

8. Societies with greater capacity to
generate knowledge, have an
invaluable tool to exploit the
opportunities arising from
technical progress to improve
their welfare.
The digital paradigm is changing
trends of global production,
working methods, business life
cycle of products and
ISK. Digital Paradigm (3)
8

9. 9
ISK. Digital
Paradigm (4)
ICT can
contribute to
the growth and
development of
economies
because their
dynamic to
meets three
important 9
IC
T
Transvers
lity
Compleme
ntarity
Internatio
nal
projection

10. 10
The Digital
Economy
in México

11. 11
The digital divide in Mexico with respect
to developed countries is explained by
many factors among which the
inequalities in terms of income and
education, which are an obstacle to the
dissemination and use of ICT.
The Digital Economy in Mexico (1)
The analysis of the digital economy in
Mexico is done from the perspective of
supply and demand.

12. The
production of
ICT goods
and services
shows the
growing
dynamism of
the
subsectors:
517, 3341,
3343
Average (%) AARG
Total GDP 10,673,492 100.00 2.53
ICT GDP / Total GDP 2.88
ICT Subsector GDP 307,184 100.00 6.73
3341
Manufacture of computers and peripheral
equipment 25,375 8.26 7.22
3342 Manufacture of communication equipment 18,543 6.04 -2.79
3343 Manufacture of audio and video 11,430 3.72 6.93
3344 Manufacture of electronic components 21,547 7.01 4.79
3345
Manufacture of measuring instruments, control,
navigation, and electronic medical equipment 11,980 3.90 2.95
3346
Manufacturing and reproducing magnetic and
optical media 2,085 0.68 4.17
511
Newspaper publishing, magazines, books,
software and other materials, and integrated
editing these publications printing 17,569 5.72 -1.14
512 Film and video industry, and sound industry 6,440 2.10 2.32
515 Radio and television 12,522 4.08 1.63
517 Other telecommunications 177,003 57.62 11.04
518
Electronic data processing, hosting and related
services 1,970 0.64 1.63
519 Other information services 720 0.23 1.21
Source: Own calculations based on INEGI, Banco de Información Económica.
Table 1. Gross Domestic Product
(Millions of pesos at 2008 prices)
Subsector /
Branch
Designation
1993-2013
The Digital Economy in Mexico (2)
12

13. 1993-2013
(84 quarters)
Total GDP: 2.5%
(aarg)
ICP GDP: 6.5%
(aarg)
ICP_GDP /
T_GDP:
1993: 1.9%
2013: 4.2%
The Digital Economy in México (3)
79
%
Telecomm
57.6%
Manufactu
re
of
computers
8.3%
Electronics
Manufactu
ring
7.0%
Communic
ation
Equipment
6.0%
13

14. 11.0
(aarg)
(1993-2013)
33.3%
(1993)
73.5%
(2013)
In summary,
throughout the
restructuring
period of the ICT
industry that
highlights the
growing
importance of
industry
Telecomucacione
s verified.
The Digital Economy in México (4)
14

15. Indicators 2010 2011 2012 2013
Variation
2013 / 2010
Households with computer 1
29.8 30.0 32.2 35.8 6.0
Households with Internet 1
22.2 23.3 26.0 30.7 8.5
Household with television
1
94.7 94.7 94.9 94.9 0.2
TV households pay
1
26.7 30.4 32.2 36.7 10.0
Households with telephone service 1
80.6 82.2 83.6 85.5 4.9
Computer users 2
40.1 41.9 43.4 46.7 6.6
Internet users
2
33.8 37.2 39.8 43.5 9.7
Computer users who use it
as a tool for school support 3
53.4 52.3 51.8 49.7 -3.7
Internet users who have
made transactions via Internet 4
5.0 5.1 5.4 5.8 0.8
Internet users that access
from outside the home
4
51.8 50.8 48.0 44.1 -7.7
Annual growth of employed persons in
the computer manufacturing industry 0.0 -0.3 ND ND NA
Notes:
1/
As a proportion of total households.
2/
As a proportion of the population aged six years or older.
3/
As a proportion of all computers users.
4/
As a proportion of total Internet users.
Source: INEGI. Module Availability and Use of Information Technologies in Households.
Table 2. Information Society. Selected Indicators
(Percentages)
Although
there is
progress in
the use and
diffusion of
ICT in
Mexican
society; there
are still
considerable
gaps digital
demand
The Digital Economy in México (5)
15

16. The Digital Economy in México (6)
Households with Internet 69.3
Households with computer 64.2
Internet Users 56.5
Computer Users 53.3
Digital Gaps 2013
(%)
16

17. 17
The country recorded a major
breakthrough in the production of goods
and services in the digital economy.
The Digital Economy in Mexico (7)
There is also a gradual progress
experienced in the adoption, use and
connectivity of information technology in
Mexican society.
However, there are crucial challenges
facing the National Digital Agenda goals
to advance in closing the digital divide.

18. 18
The country recorded a major
breakthrough in the production of goods
and services in the digital economy.
The Digital Economy in México (7)
There is also a gradual progress
experienced in the adoption, use and
connectivity of information technology in
Mexican society.
However, there are crucial challenges
facing the National Digital Agenda goals
to advance in closing the digital divide.

19. 19
Challenges of the
National Digital
Strategy

20. In the literature there are
several studies that recognize
the importance of ICT to reach
constitute an important factor
in increasing productivity and
economic growth, due to the
positive externalities derived
from its application in key
sectors of the economy,
institutional structure and
Challenges of the National
Digital Strategy (1)
20

21. Arguments for public policy:
development of
complementarities;
equity of access and use;
infrastructure
development;
regulatory framework;
diffusion of innovations.
Challenges of the National
Digital Strategy (2)
21

22. Objectives of the NDS:
Government
transformation.
Digital economy
Quality Education
Universal and effective
health
Public safety
Challenges of the National
Digital Strategy (3)
22

23. Goals for 2018:
Achieving a scanning rate
equivalent to the average
OECD
Achieving indicators
leading country in Latin
America for the same year
Challenges of the National
Digital Strategy (4)
23

24. Digital economy:
“developing an ecosystem
that contributes to a
prosperous Mexico,
through assimilation of ICT
in economic processes, to
stimulate productivity
growth, economic growth
and the creation of formal
jobs”.
Challenges of the National
Digital Strategy (5)
24

25. ITU, 2013: Numeralia
Between 2007-2011, the income generated by the
Telecommunications grew 12%.
Equivalent to 1.8 billion USD.
2.6% of world GDP.
In late 2013, 40% of the world population use the Internet.
2,000 million mobile broadband subscriptions.
Global penetration rate of 30%.
In late 2012, 80% ofTV households, compared with 41% of
households with a computer and 37% with Internet access.
Internet developed countries, penetration rate: 80% vs
Challenges of the National
Digital Strategy (6)
25

26. The objectives of the IDT-ITU are
measuring:
the level and time course of
development of ICT in the
country and in comparison with
other countries;
progress of ICT development in
developed and developing
countries;
the digital divide, is to say the
differences between countries
Challenges of the National
Digital Strategy (7)
26

27. Methodology
for
calculating
the IDT-ITU:
Infrastructur
e and access
Use and
intensity
Capacity
Challenges of the National
Digital Strategy (8)
Rank ICT Rank ICT
2012 2012 2011 2011
Rank ICT
World average* 4.35 4.15 0.20
Developed C. average 6.78 6.55 0.23
Developing C. average 3.44 3.25 0.19
OECD average 7.18 6.97 0.22
Average Latin America** 5.03 4.66 0.37
Mexico 83 3.95 82 3.78 -1 0.17
World* -0.40 -0.37 -0.03
Developed Countries -2.83 -2.77 -0.06
Developing Countries 0.51 0.53 -0.02
OECD Countries -3.23 -3.19 -0.05
Latin America** -1.08 -0.88 -0.20
Notes:
* Includes 157 countires.
**Selected countries: Barbados, Uruguay, Chile, Argentina, Costa Rica, Brasil, Panamá, Colombia, Venezuela y
Ecuador.
Source: Own calculations based on ITU, Masuring the Information Society, 2013 .
Table 3. Gaps: Index of ICT Development 2011-2012
Economy
Variations
2012 vs 2011
Gaps / ICT / With respect to:
27

28. Region
and
country
2012
+
Points
+
Ranking
México 3.95 82
OCDE 7.18 3
Israel 7.11 26 3 57 places
Latin America 5.03
Barbados 6.01 36 2 47
Uruguay 5.38 50 1.4 33
Chile 5.08 52 1.1 31
México
Challen
ges
for
2018
move
up
in rank
Challenges of the National
Digital Strategy (10)
28

29. Challenges of the National
Digital Strategy (11)
Prices of fixed broadband GDP p.c.
Economy Rank % of USD, 2011
GDP p.c. USD PPP$ (*)
OECD average 1.3 33.1 30.5 37,546
Average Latin America* 3.0 22.4 31.9 9,500
Mexico 62 2.3 17.6 26.7 9,240
OECD Countries 1.0 -15.5 -3.8 -28,306
Latin America** -0.7 -4.8 -5.2 -260
Notes:
(*) or latest available data.
**Selected countries: Uruguay, Venezuela, Brasil, Panamá, Costa Rica, Chile, Colombia,
Barbados, Argentina, Ecuador.
Source: Own calculations based on ITU, 2013.
Cuadro 4. Gaps: Prices Fixed Broadband (BFP), 2012
GAPS / BFP / With respect to:
29

30. Fixed Broadband Fixed Broadband
Economy Rank (Wired) Rank (Wired)
2011 suscript. per 2012 suscript. per Rank Suscrip.
100 inhabitants 100 inhabitants
World average* n.d. 9.1
OECD average 26.9 27.5 0.6
Average Latin America** 9.5 11.2 1.7
Mexico 59 10.6 64 10.9 -5 0.3
World* 1.8
OECD countries -16.3 -16.6 -0.3
Latin America** 1.10 -0.26 -1.4
*183 Countries in 2012.
**Selected countries: Barbados, Uruguay, Chile, Argentina, Costa Rica, Brasil, Colombia, Panamá, Venezuela y Ecuador.
Source: Own calculations based on ITU / UNESCO, 2012.
Cuadro 5. Gaps: Fixed Broadband (FBB), 2011, 2012
Variations
2012 / 2011
Gaps / FBB / With respect to:
Challenges of the National
Digital Strategy (12)
30

31. Challenges of the National
Digital Strategy (13)
Broadband Broadband
Economy Rank Mobile Rank Mobile
2011 suscript. per 2012 suscript. per Rank Suscrps
100 inhabitants 100 inhabitants
World average* n.d. 22.1 n.a.
OECD average 46.4 59.9 13.5
Average Latin America** 9.3 20.7 11.4
Mexico 84 4.6 92 9.7 -8 5.1
World* -12.4
OECD countries -41.8 -50.2 -8.4
Latin America** -4.70 -11.0 -6.3
Notes:
* Includes 170 countries.
**Selected countries: Brasil, Barbados, Uruguay, Chile, Ecuador, Panamá, Costa Rica, Argentina, Colombia y Venezuela.
Source: Own calculations based on ITU / UNESCO, 2012.
Table 6. Gaps: Mobile Broadband (MBB), 2011, 2012
Variations
2012 / 2011
Gaps / MBB / With respect to:
31

32. Challenges of the National
Digital Strategy (13)
Broadband Broadband
Economy Rank Mobile Rank Mobile
2011 suscript. per 2012 suscript. per Rank Suscrps
100 inhabitants 100 inhabitants
World average* n.d. 22.1 n.a.
OECD average 46.4 59.9 13.5
Average Latin America** 9.3 20.7 11.4
Mexico 84 4.6 92 9.7 -8 5.1
World* -12.4
OECD countries -41.8 -50.2 -8.4
Latin America** -4.70 -11.0 -6.3
Notes:
* Includes 170 countries.
**Selected countries: Brasil, Barbados, Uruguay, Chile, Ecuador, Panamá, Costa Rica, Argentina, Colombia y Venezuela.
Source: Own calculations based on ITU / UNESCO, 2012.
Table 6. Gaps: Mobile Broadband (MBB), 2011, 2012
Variations
2012 / 2011
Gaps / MBB / With respect to:
32

33. Challenges of the National
Digital Strategy (14)
Percentage of Percentage of
Economy Rank Households Rank Households
2011 with Internet 2012 with Internet Rank (%)
acces acces
World average* 20.5 24.0
Average Latin America** 31.9 39.8
Mexico 38 27.5 43 26.0 -5 -1.5
World* 7.0 2.0 -5.0
Latin America** -4.40 -13.8 -9.4
Notes:
* Includes 128 developing countries, 2012.
**Selected countries: Barbados, Uruguay, Argentina, Costa Rica, Brasil, Chile, Colombia, Panamá, Ecuador y Venezuela.
Source: Own calculations based on ITU / UNESCO, 2012.
Table 7. Percentage of Households with Internet acces
in Developing Countries (DCHI), 2011-2012
Variations
2012 / 2011
Gaps / DCHI / With respect to:
33

34. Challenges of the National
Digital Strategy (15)
Percentage of Percentage of
Economy Rank People with Rank People with
2011 Internet 2012 Internet Rank (%)
World average* 32.5 35.7 3.2
OECD average 75.0 77.8 2.8
Average Developing C. 24.4 27.5 3.1
Average Latin America 46.7 51.6 4.9
Mexico 84 36.2 97 38.4 -13 2.2
World* 3.7 2.7 -1.0
OECD Countries -38.8 -39.4 -0.6
Developing Countries** 11.8 10.9 -0.9
Latin America*** -10.5 -13.2 -2.7
Notes:
* Includes 177 countries.
** Includes 132 developing countries.
***Selected countries: Barbados, Chile, Argentina, Uruguay, Brasil, Colombia, Costa Rica, Panamá, Venezuela y Ecuador.
Source: Own calculations based on ITU / UNESCO, 2012.
Table 8. Percentage of People With Internet, 2011-2012
Variations
2012 / 2012
Gaps / People with Internet / With respect to:
34

35. 35
Conclusions and
Recommendations

36. 36
One lesson to consider is that meet
international standards of the most
advanced countries is a major challenge
due to the closure of the digital divide is a
"moving target“.
Conclusions and Recommendations (1)
At the same time, their full utilization
represents an opportunity as a catalyst
for socioeconomic development and
social welfare.

37. 37
In Mexico there are conditions to
promote the use and application of these
technologies in strategic areas such as
health, education, security, trade,
business, productive sectors and
government services.
Conclusions and Recommendations (2)
The role of government is essential to
face challenges in the near future.

38. 38
Conclusions and Recommendations (3)
Precautionary areas in the field of
public policies to advance the EDN
achieve the goals and objectives:
Legal framework
Financing and Investment
Access and connectivity
Use and exploitation
Cloud computing
Monitoring and evaluation

39. Thanks for
attention!
armandopdiaz@gm
ail.com