Digital Divide Information Technology in Business and Society

Digital Divide Information Technology in Business and Society I

Digital Divide • Digital divide is the gap between • individuals, • households, • businesses and • geographic areas at different socio-economic levels • with regard both to their opportunities to access ICT and to their use of the Internet for a wide variety of activities.

Digital Divide - Measurement • This divide is found between: • Different income levels. • Education levels • Across regions • Based on gender differences • Age • Race, ethinicty etc

Digital Divide - Measurement • Internet usage in Turkey in 2019: • 75% of individuals between the age of 16 -74 • Males: 82 % vs Females 69 % • Using internet at home: 88% • Broadband Access Rate (fixed and mobile): 88% • Using e-commerce rate: 34 % (mostly by men, buying sports material and cloths).

Digital Divide - Measurement Source: Hanehalkı Bilişim Teknolojileri (BT) Kullanım Araştırması, 2019

Digital Divide - Measurement Internet Usage Across Genders 90. 0 80. 0 70. 0 60. 0 50. 0 40. 0 30. 0 20. 0 10. 0 2007 2008 2009 2010 2011 2012 Hanelerde Bilişim Teknolojileri Kullanımı ICT Usage in Households and Individuals Erkek - Male 2013 2014 2015 2016 2017 Hanelerde Bilişim Teknolojileri Kullanımı ICT Usage in Households and Individuals Kadın - Female 2018 2019

Digital Divide - Measurement Urban vs Rural Area Internet Usage 80. 0 70. 0 60. 0 50. 0 40. 0 30. 0 20. 0 10. 0 2011 2012 2013 İstanbul Istanbul 2014 Orta Anadolu Central Anatolia 2015 Doğu Karadeniz East Black Sea 2016 Güneydoğu Anadolu South East Anatolia 2017 2018

Digital Divide - Measurement

Digital Divide - Measurement • In Turkey, the most disadvantaged group is elder women living in rural areas. • Only better educated, well connected and more capable have received most of the benefits.

Digital Divide - Consequences • The digital technologies spread very rapidly in the World. • Its benefits are not spread with the same rate. (World Bank Digital Economy Report, 2016). • productivity, • improved service quality, • higher employment rates etc

Digital Divide - Consequences • Reasons of the uneven allocation of digital economy benefits around the world: • A big part of world is offline • Inequality of adopting skills.

Digital Divide - Consequences • In Turkey, 94. 9 % of all firms with at least 10 employees had internet access in 2019, • It was 95% in 2018 • but only 71 % used it for banking in 2012 (WB Report, 2016); • 66. 6 % had a website – including social media; and • 11. 2 % made orders or reservations online (TÜİK, Girişimlerde Bilişim Teknolojileri Kullanım Araştırması, 2019).

Digital Divide

Digital Divide - Consequences • Digital divide is also valid for firms. • Difficult to reach and obtain information • Affecting R&D activities • Absence of competitive business environment. • For digital technologies to benefit everyone everywhere close the digital divide. • Complements

Digital Divide - Consequences • First order effects of digital divide represent unequal access to ICTs. • The second order effects are about creating value out of a connection to ICTs.

Bridging the Gap • Why? • 1. Economic equality and social welfare: • 2. Social equality: • 3. Democracy • 4. Economic growth

The precautions against digital divide in the world • OECD and World Bank suggest: • liberalization in the telecommunication markets • increase the competition • infrastructure development • Regulatory changes to make internet free, safe and available to all • Training in schools • ICT support and training for SME • Increased public investments

The precautions against digital divide in the world • A “free internet” service in 2016 by the Ministry of Family and Social Policies in Turkey • Google and Facebook tried to use drones to provide internet in the Africa. • Close the Gap Initiation

References • World Bank Reports • OECD Reports • Laudon K. And J. Laudon, Management Information Systems Managing the Digital Firm, 12 th Ed. , Pearson Prentice Hall, 2012. • Baltzan, P. , Business Driven Information Systems, 4 th. Ed. , Mc. Graw Hill, 2014. • Valacich, J and C. Schneider, Information Systems Today Managing in the Digital World, 5 th Ed. , Prentice Hall, 2012. • TÜİK Reports