A framework for measuring national e-readiness

Technology and societal changes are moving the global market rapidly towards a new economic order rooted in e-commerce. Hence, assessing and monitoring the e-readiness of a nation has become an increasing challenge. This paper proposes a framework to evaluate the e-readiness of a nation based on eight factors: digital infrastructure, macro economy, ability to invest, knowledgeable citizens, competitiveness, access to skilled workforce, culture, and cost of living and pricing. We identify 52 surrogate measures that can be used to quantify these factors and describe an algorithm to calculate an overall e-readiness index for a country. Using data published by different world organisations on these measures for ten East Asian, USA and G7 countries, we illustrate how the proposed framework can be used in providing e-readiness assessments and in making national strategic decisions on infrastructure that is conducive to the new economy.