Technology and adoption rate



How are the Faethm Technology adoption rates informed and applied?

Faethm’s data science team combines world-leading research and data sources with their own expertise established from careers spanning technology advisory at The Boston Consulting Group, Accenture and beyond, and PhD attainment in areas such as bioinformatics. 

Faethm’s country level technology adoption rates are informed by the Network Readiness Index co-developed by The World Economic Forum, Cornell and INSEAD informs. Faethm’s industry level rates are informed by The McKinsey Global Institute’s Industry Digitisation Index. Faethm's data scientists mathematically overlay these using proprietary weighting on technology adoption to aggregate the indices. 

Taking a combined view of country and industry level adoption, Faethm employs machine learning to attribute the plausible impact of technology adoption at a job and skill level across a specific economy or organisation. This enables users to understand how these technologies can impact the attributes and tasks that characterise human work and hence workforces. 

What methodology does Faethm use for country level adoption figures?

Faethm utilises the World Economic Forum Global Competitiveness report to measure the capacity of 143 different countries to adopt and leverage technologies. The Index is made up of twelve pillars (Institutions; Infrastructure; ICT adoption; Macroeconomic stability; Health; Skills; Product market; Labour market; Financial system; Market size; Business dynamism; and Innovation capability) which are built off approximately 114 individual indicators distributed across the different pillars.

The subindices are informed by a comprehensive set of data sources spanning The World Economic Forum, The World Bank/International Finance Corporation, OECD, International Labour Organisation, UNESCO, UNDESA, International Telecommunications Union, The Software Alliance, International Energy Agency, US Central Intelligence Agency, The World Factbook, World Intellectual Property Organisation, the United Nations and more.

What method does Faethm use for industry level adoption figures?

Source: The MGI Industry Digitisation Index from McKinsey Global Institute

Faethm scales country adoption rates to an industry level using both the aforementioned country Network Readiness Index and MGI Industry Digitisation Index. McKinsey introduced this in their report, 'Digital America: A Tale of the Haves and Have-Mores’, which evolved into the AI Index in 'Artificial Intelligence: The Next Frontier?'

The  Index is based on metrics to assess digitisation of assets (8 metrics), usage (11 metrics), and labor (8 metrics). It aggregates a variety of indicator metrics from various sources measuring ICT supply and innovation, business use, consumer use, and government use. Sources include BEA, BLS, US Census, IDC, Gartner, McKinsey social technology survey, McKinsey Payments Map, LiveChat customer satisfaction report, Appbrain, Bluewolf, Computer Economics and more.

What method does Faethm use for combined country and industry level adoption figures?

Source: Proprietary modelling approach from Faethm AI

To discern country adoption rates, Faethm utilises the Network Readiness Index rates of each of the 143 countries with a weighting of pillars within the Index; Political and regulatory environment, Business and innovation, Infrastructure, Affordability, Skills, Individual Usage, Business Usage and Government Usage. A system is used to calculate a weighted average score for each country based on estimated importance of each pillar to technology adoption.

The MGI Industry Digitisation Index was used to inform the adoption score for each industry. These scores are then utilised to apply further adjustments to the country index calculated above. The initial country adoption rate calculated represents the maximum potential for the country. This number is then scaled down based on the industry.