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The role of digitalization in business development during a crisis

Euler Hermes
Digital-enabling countries proved more resilient to the Covid-19 economic shock , shows a study conducted by Euler Hermes.
The US, Germany and Denmark once again make the top three of our 2020 Enabling Digitalization Index.
 
The EDI1 measures the ability – and agility – of countries to help digital companies thrive and traditional businesses harness the digital dividend.
 
It scores 115 countries based on five components: regulation, knowledge, connectivity, infrastructure and size.
 
For 2020, the US leads by far due to its best-in-class knowledge ecosystem, competitive market size and favorable regulation. In fact, its connectivity score has increased by +1.8 points after a +5.1 point increase in 2018 

Germany boasts the best knowledge ecosystem and infrastructure for trad, but its connectivity quality has dropped relative to the rest of the world despite the continuing upwards trend in the number of secure servers.

It is interesting what is happening with China. The country is experiencing growth in all indicators, but is facing problems in improving the digital skills of its population.

The study concludes that digitalization can absorb the shock caused by COVID-19. From an economic point of view, countries whose environment is more conducive to business digitalization (good connectivity, market size, regulations, logistics and knowledge) have managed to respond to the crisis and have increased digitalization in many sectors.

Those countries likely enabled digitalization in administrative bureaucratic processes (state schemes to help companies and citizens in rapidly receiving financial help or sanitary assistance (testing, tracing, isolating, distributing vaccines), on the demand side (consumption with the help of web platforms) and on the supply side in terms of companies’ ways of working (remote working, data storing and sharing etc.).

The countries in the study are divided into four groups, in descending order of variables.

Bulgaria falls into the second "median" group. All indicators adhere to the average levels. This group includes some Western European and Latin American countries.


 

You can see more details here.

 

 

1 Enabling Digitalization Index