After two superpowers such as the US and Germany, the Netherlands ranks 3rd on the recently released Euler Hermes Digitalization Index (EDI). Euler Hermes is a major player in the field of credit insurance and in the field of (bank) guarantees and debt collection.
Our country ousted Switzerland to 4th place. A total of 116 countries were surveyed. The EDI does not measure actual digital activity by country, but rather the conditions, facilities and expertise that countries provide for digital businesses to thrive. According to the survey by credit insurer Euler Hermes, the U.S. stands head and shoulders above the rest. Companies like Apple, Google, Facebook and Amazon are living proof of this.
In digitization, the U.S. benefits from its large market size, strong knowledge ecosystem and favorable business environment. Germany and the Netherlands follow at a distance. Johan Geeroms, Head of Risk Underwriting at Euler Hermes Netherlands: "Germany scores especially high because of their innovation capacity. The Netherlands has a strong digital infrastructure and advanced connectivity. Furthermore, both countries have strong trade and knowledge networks."
Platform Economy
Geeroms points to the increasing importance of digitization within the economy. "It creates value (data, new services), it changes our buying behavior (online shopping) and the way we produce (automation). It also affects the way we interact with each other (social networks)." According to Geeroms, the digital "platform economy" already represents almost a third of total global value creation.
Geeroms is positive about the new administration's focus on digitization. "State Secretary Mona Keijzer recognizes technology as the main driver of our economic prosperity. She called for large-scale investments in infrastructure and suitable workforce. Dutch industry has indicated the need for digital leadership and a national digitalization strategy. Hopefully the government will take the lead on this. Especially now that the economy is doing well, we must firmly anchor the opportunities of digitization."
e-Commerce is booming
The Euler Hermes Digitalization Index research report shows that e-commerce for retail sales in the U.S. increased by 16% in 2017, compared with 4.4% for traditional retail sales. In China, online retail increased 32% compared to 10% for traditional retail sales in 2017.
Geeroms: "So that's how fast it's going. Not just in retail, just as much in healthcare, agribusiness, everywhere. Investments in digitalization are important, but perhaps even more important is developing and strengthening the desired leadership skills. In the boardroom of companies and organizations, there must be sufficient knowledge of the Internet economy to make sweeping changes. Digitization requires completely new skills and ways of working. The culture of companies must be shaken up."
Competition
With 16 countries in the top 30, Western Europe scores well on Euler Hermes' digitization index. "The region is perfectly aligned for the further development of the digital age. From Brussels this needs to be strengthened especially further. Because the changes are going fast, also in other regions. Look at Asia Pacific, for example. On our index, Japan (7th), Singapore (8th), Hong Kong (9th), South Korea (10th) and China (17th) also score high marks."
Infographic Euler Hermes Digitalization Index (EDI).
