Leapfrog Strategies for Thailand

1. Leapfrog Strategies for Thailand’s Digital Development • Bangkok August 24, 2017 • Randeep Sudan • Adviser Digital Strategy and Government Analytics • World Bank

2. Thailand’s Rank on International Rankings • 82 out of 175 countries on ITU’s ICT Development Index (IDI) 2016. • 62 out of 139 countries as per the World Economic Forum’s (WEF’s) Networked Readiness Index (NRI) 2016 • 77 out of 193 countries on the United Nations E-Government Survey 2016 • 21 out of 65 countries on Waseda University’s 2017 digital government rankings • 46 out of 190 countries on Ease of Doing Business 2017 • 34 out of 98 countries on the Global Competitiveness Index for 2016-17 • 6 our of 55 countries on AT Kearney’s Global Services Location Index (2016) • 17 out of 58 countries on Affordability of the Internet, Affordability Drivers Index 2017 • Broadly Thailand has performed better in terms of affordability and usage of mobile services, as well as financial attractiveness as an investment destination; but has not performed as well on skills and regulatory environment.

3. Gartner’s Top 10 Strategic Technology Trends for 2017 • Artificial Intelligence and Advanced Machine Learning • Intelligent Apps • Intelligent Things • Virtual Reality and Augmented Reality • Digital Twins • Blockchains and Distributed Ledgers • Conversational Systems • Mesh App and Service Architecture • Digital Technology Platforms • Adaptive Security Architecture

4. Source: Mary Meeker, Kleiner Perkins, Internet Trends 2017

5. Exponential growth of data • According to McKinsey estimates, the volume of data flows has multiplied by a factor of 45 since 2005. • Cisco (Visual Networking Index) estimates that annual global IP traffic reached 1.1 ZB per year by the end of 2016 and will grow at a compound annual growth rate (CAGR) of 22 percent till 2020. • A zettabyte is equal to one sextillion (1021) or 270 bytes. • In China, close to 20% of imports and exports now takes place on digital platforms. • By 2014 cross-border data flows accounted for $2.3 trillion in economic value (McKinsey) • Need for a National Policy/Strategy on Data

6. Cyber risk insurance • AIG reports that requests for cyber insurance policies jumped by 87 per cent in Asia year on year compared to the same period following WannaCry. Requests for the same policies globally were up 38 per cent: Financial Times, August 9, 2017 • WannaCry affected organizations in 150 countries, including Britain’s National Health Service, FedEx, Renault and Telefónica. • 2015 OECD Council Recommendation on Digital Security Risk Management for Economic and Social Prosperity: National strategies could include incentives for businesses to measure and manage their exposure to cyber risk. Source:Cyber insurance market expected to grow after WannaCry attack FT, May 16, 2017

7. Keystone Initiative on Cyber Risk Insurance • Encourage taking stock of data, assign value to data and secure data assets. • Market mechanism to ensure data security • Check high valuations of data as inflated valuations would result in inflated premiums. • Better information on data and data valuations would help creation of data markets, and better regulation of data flows. • Develop cyber-risk assessment skills in Thailand promoted largely by the private sector. • Thailand would emerge as one of the most secure data locations internationally. • Thailand could potentially become a test bed and learning platform for global insurance companies in cyber-risk insurance. • The initiative could provide opportunities for the development of blockchain based insurance models that track data assets thereby lowering costs of insurance and supporting innovations in Thailand.

8. Bandwidth • 8K TV: 300 Mbps • Pacific Light Cable Network (Google, Facebook, TE SubCom and Pacific Light Data Communication) • HK to Los Angeles: 120 Tbps • Marea (Facebook) • Virginia Beach to Bilbao: 160 Tbps • Akamai’s Q1 report for 2017 ranks Thailand at #8 internationally with peak data speeds of 106.6 Mbps (Singapore #1 184.5 Mbps). Thailand ranked 21 in terms of average data speeds (16 Mbps) as compared to South Korea at #1 (28.6 Mbps). • Thailand’s current international bandwidth is about 4 Tbps • Network slicing: European Union financing $8.9 million for 5G

9. Digital Twins • “A digital twin is a dynamic software model of a physical thing or system that relies on sensor data to understand the state of the think or system, respond to change, improve operations, and add value”. Gartner • Business Operating Systems • BIM • Augmented Reality, Virtual Reality, Mixed Reality • Alibaba’s investment in Magic Leap • Facebook (Oculus), Microsoft (Hololens), Apple (ARKit) • eCommerce platforms • 3D printing Source: Siemens

10. Blockchain • Internet of Data to Internet of Content to Internet of Value • By 2027 10% of global GDP will be stored on Blockchain (World Economic Forum) • Dubai • 100% government transactions by 2020 • 1000 companies • 27 countries: travel (ObjectTech)

11. Labor Market Analytics • Better understanding of demand • Job postings, Patent filings, venture capital investments, stock markets, journals, unstructured data Jobs posted by Motor Vehicle Manufacturers and Motor Vehicle Parts Manufacturers

12. Skills Development: Two Examples (University 42 and Flatiron School)

13. Strategic ForesightHow Singapore got a head start on Autonomous Vehicles in 2012 (Nutonomy)

14. Agile Policy in an age of blurring boundaries: ING Example

15. Thank you! • rsudan@worldbank.org • +65 65171241