Australia falls behind peers in global digital competitiveness
The index assesses factors including technological frameworks, IT integration and business agility.
Australia’s digital competitiveness has regressed this year and its cyber security is rated as one of the worst in the world, according to a closely watched index from Swiss business school IMD.
Australia placed 16th out of 64 countries in the World Digital Competitiveness Ranking (WDCR) 2023, down two spots from last year but above its five-year-low position of 20th in 2021.
Using data and survey responses, the IMD assessed nations’ digital competitiveness from three main factors – knowledge, technology and future readiness – further broken down into sub-factors such as talent, IT integration, technological framework, business agility and scientific concentration.
“The findings provide a glimpse at how different countries are approaching digital transformation in the age of artificial intelligence. In other words, what it takes for nations to be truly digital,” the IMD said in a statement.
“AI technology and national security concerns are at the core of another remarkable trend observed in the ranking: an increasing focus on cybersecurity.”
“Of the 4,000 senior executives around the world who responded to the WDCR survey, only 5 per cent said they hadn’t implemented any new cybersecurity measures in the past year.”
However, Australia’s cyber security came in at 53rd in the world while communications technology was 49th. This dragged its performance in the future readiness and technology categories down to 20th and 18th respectively.
Countries such as Botswana, Chile, Colombia, Lithuania and Jordan all outperformed Australia’s cyber security performance.
The IMD also found that Australian companies’ agility was 45th in the world, and the country was slow to respond to opportunities and threats (50th), resulting in an overall business agility ranking of 42.
Melissa Wilson, senior economist at the Committee for Economic Development of Australia, the IMD’s local partner, said this was a sign that Australia’s technological framework and business agility had fallen further behind.
“Australian businesses and governments must do more to embrace and invest in digital technologies, as we confront flagging productivity and persistent worker shortages across the economy,” she said.
Australia’s worst performing indicator, cyber security, could be attributed to the series of widespread and damaging attacks on companies like Optus and Medibank, she said.
“Our future readiness was also held back by companies’ agility and their ability to respond quickly to opportunities and threats.”
“Australia’s future readiness remains our weakest area, despite the COVID-19 pandemic reminding us that taking advantage of emerging technologies is critical for our nation’s current and future economic development.”
Meanwhile, the country’s knowledge rating improved by one spot, owing to strong human capital, placing second for the net flow of international students.
Australia’s country credit ranking was also the best in the world.
The US topped the IMD’s rankings this year, followed by the Netherlands in second place and Singapore in third. Denmark, Switzerland, Korea, Sweden, Finland, Taiwan and Hong Kong rounded out the top ten, while Colombia, Mongolia and Venezuela were the worst performers on the index.
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