A System Dynamics Approach for Digital Sustainability Assessment

The Network Readiness Index, as explained in the Global Information Technology Report 2015: ICTs for inclusive growth, prepared by World Economic Forum along with INSEAD, Business School and Johnson Cornell University, is the capacity of countries to exploit & leverage ICTs for increased competitiveness and wellbeing. The report assesses the Network Readiness Index of 143 economies of the world.

The current paper will analyze and develop a Model through System Dynamics Approach. The model is based on five major principles, on which the different economies are assessed in the report.

(1) A high-quality regulatory and business environment is critical in order to fully leverage ICTs and generate impact;

(2) ICT readiness—as measured by ICT affordability, skills, and infrastructure—is a pre-condition for generating impact;

(3) Fully leveraging ICTs requires a society-wide effort: the government, the business sector, and the population at large each have a critical role to play;

(4) ICT use should not be an end in itself. The impact that ICTs actually have on the economy and society is what ultimately matters;

(5) The set of drivers— the environment, readiness, and usage—interact, co-evolve, and reinforce each other to form a virtuous cycle; (as per the report)

Based on these principles a Stock-Flow Model is developed and finally the data from Indian economy is taken into consideration to run the simulation to understand the impact of the Network Readiness Index and how quantitatively it can be utilized by any economy to increase competitiveness and well –being.