Human Needs in a Digital WorldDigital Society Index 20192 Digital Society Index 2019ContentsForewordSpeed read: The report in 5 minutes1. Whats digital ever done for us?2. A new model of digital needs3. The impact on consumer behaviour4. Recommendations for brands, businesses and governmentsMethodology34-89-1516-3031-3534-3839Digital Society Index 20193Foreword by Tim AndreeExecutive Chairman and CEO, Dentsu Aegis NetworkThe digital economy is the defining trend of our time. Thirty years on from the establishment of the world wide web, the legacy of that breakthrough is extraordinary. The proliferation of digital technologies has powered economic growth, created jobs, lifted millions out of poverty, put information into the hands of people the world over and grown access to cheaper products and services. Its hard to imagine a facet of everyday life that has not in some way been touched by digital. For people, businesses and society as a whole, it has been a massive source of growth. However, with growth comes change. And change is not always easy. With that thought in mind, two years ago we established the Digital Society Index program of research. The analysis recognizes that the digital economy has been a hugely positive source of change around the world. It also recognizes that securing these benefits in the future requires a longer view on how technological innovation can best serve peoples needs. Our findings this year show that progress is mixed. People in many countriesparticularly those in high-growth emerging economiesare hugely positive about their futures in the digital economy. But at the same time, many people do not feel as if their digital needs are being met. Whether thats the impact of digital technologies on health and well-being, or the skills that are needed to thrive in a rapidly changing labor market, many people do not feel as optimistic or well-prepared as we would want. Today, we also see the emergence of new digital consumers. They are digital natives and use digital products and services across a range of activities. But theyre also digitally savvy and have learned to manage the online world on their own terms: limiting the amount of data shared and time spent online; installing ad blockers; deactivating social media accounts. The web has grown upand so has its users. Adapting to their behavior is a huge opportunity for brands to build better, more trusted relationships.We need to develop a digital economy that works for all in society. Thats a guiding principle at Dentsu Aegis Network, both commercially and as a good corporate citizen. We create long-term business value for clients by helping them build trusted relationships with their consumers and audiences, putting people at the heart of their digital transformation. Through our Social Impact strategy, we take a leadership role in developing the digital skills of future generations and supporting a new wave of female entrepreneurs.Its a common soundbite that whats good for society is good for business. But it happens to be true. The digital economy gives us the power to be better versions of ourselves. Capitalizing on this means harnessing digital in the right waywith human needs placed squarely at the center. By doing so, we can build better brands, better businesses and a better society. Lets make it real.Tim AndreeDigital Society Index 20194Speed read:The report in 5 minutesInnovation will always fail unless it meets peoples needs and wants. Brands must ensure that digital products and services address those needs. By doing so, not only can brands build better relationships with their consumers and audiencesthey can also help safeguard the long-term benefits of a digital economy that works for all. Thats one of the central messages that emerges from the Digital Society Index 2019. Developed in collaboration with Oxford Economics, it combines a primary survey of more than 43,000 people across 24 countries with economic and statistical analysis. The year since our survey first started in 2018 has seen a collapse in trust in the use of digital technologies. Trust in big tech is falling, with misuse of personal data the number one cause of distrust, according to our survey. Stronger regulation of technologies like artificial intelligence is being mooted. And social media has been blamed for both political polarisation and misinformation. Thirty years on from the birth of the world wide web and against a longer-term trajectory of growth and prosperity brought about by the digital economy, 2018 has been a tough year.Within that context, the Digital Society Index puts people at the heart of the digital economy to examine how trust can be rebuilt to deliver sustainable growth.A new needs model for the digital age To that end, weve also developed a new needs-based framework. Taking inspiration from the seminal model of Abraham Maslow, weve updated his original “hierarchy of needs” concept for a digital age. However, the research shows that in most of the 24 countries we analysed, these needs are far from being adequately addressed. Basic needs: Access to digital infrastructure has always been a necessary condition to engage with the digital economy. But now, in addition, trust in data use is part of the foundation on which digital products and services must be built. Only 49% of people globally believe their basic needs are being met, although Western economies tend to perform strongly here. Digital Society Index 20195 Psychological needs: Digital technologies can help enhance users sense of good health and well-being. However, globally, just 38% of people believe this need is being met. Asian countries tend to perform poorly on this measureout of all the countries analysed, Singapore ranks lowest on psychological needs. Self-fulfilment needs: The extent to which people feel they have the right digital education, skills and opportunities for fulfilling work can offset concern about automation and the impact of artificial intelligence. However, only 45% of people globally score positively on this measure, with under-utilisation of digital skills by employers a challenge. For example, in Denmark, less than four out of ten people with average or above average digital skills agree that their employer makes it possible to use the full range and depth of their tech knowledge. Societal needs: This is about peoples broader optimism that digital technologies will be a force for good overall, helping to create jobs and solve societal challenges. Overall, less than half (49%) of people believe in digitals role here, although people in Asia tend to be much more positive about the potential of digital to enhance society.The demographics of these trends show clear anomalies. Women score lower than men across all aspects of the model except basic needs. In some countries, the gap is particularly stark. For example, in the Netherlands, 42% of men are optimistic about the societal impact of digital, but this falls to 30% for women. And in terms of age, it is younger people who score lowest on psychological needs, reflecting those studies that show how higher usage of digital technologies is negatively impacting young peoples mental health and well-being.We need to take people with us Furthermore, while technological development accelerates, many people around the world feel left behind by digital growth. This sentiment cuts across differences in economic development, tech maturity and culture. Its not just a first-world problem: its a whole-world problem, with three major elements: Skills are not keeping pace with needsdigital technologies are reshaping the jobs of tomorrow, but one in three people globally cant remember the last time they did any digital training (or never have done any). The pace of technological change causes anxiety. In countries such as China, India and Brazil, more than 80% of people feel the pace of tech change is too fast. The future is not evenly spread while many countries perform strongly on our index in terms of delivering a digital economy that works for allSingapore, the United States and China top our rankings in 2019many countries are pursuing an imbalanced digital growth strategy. Digital Society Index 20196Belief in digital drives the business case for action Why is this analysis important for businesses and brands? Because digital needs influence consumer behaviour. The more positive people are about the digital economys wider impact on society and their own digital skills, the more likely they are to engage with digital products and services. In other words, give people belief in digital and they will be more likely to use digital products and services. Theres not just an ethical case for delivering a digital economy that works for alltheres a strong business case too.The new digital consumer: Hardest to reach but most valuableThe research also introduces us to the new digital consumer. She is a digital native and fully engaged in terms of what the digital world can offer: shopping online, using apps to take a taxi and streaming music. But shes also taking actions that, for many businesses, might seem problematic. As our analysis shows, shes installing ad blockers, reducing data-sharing and deactivating social media accounts. This is creating significant implications for brands, businesses and governments in how they engage with consumers through digital products and services. The people who are hardest to reach are also the most commercially valuable. Increasingly, this means brands will need to find new ways to maximise the value of precious moments of interaction with consumers, moving beyond reach to creating more meaningful moments of engagement. How to respond to the new digital needs The changing needs and awareness of consumers calls for a more balanced and creative approach to engaging people in digital products and services. It is no longer enough for organisations to rely on increasing access and extending the user basethat effort must be matched by innovation in developing a meaningful relationship with consumers. Based on our analysis, we have three recommendations each for brands, businesses and governments: Digital Society Index 20197For brands Segment consumers and audiences by motivation and needs: Traditional demographic approaches to segmenting consumers are insufficient. Looking at customers through the lens of digital needs can help brands find ways to increase positive engagement with digital products and services, as well as help test new services with more sceptical user groups. Focus on engagement, not reach: The most valuable consumers are reducing the amount of data shared online, installing ad blockers and limiting their time online. That means working harder to maximise the value of interactions that will often be initiated by consumers themselves. Help people undertake their own digital detox: Enabling people to have a healthier relationship with digital may mean sacrificing access to data, but over the long-term it will lead to a better relationship based on trust. For businesses Compete on openness: Transparency around data usage can be a source of differentiation. With misuse of personal data the number one driver of distrust in the tech industry today, any business ignores it at their peril. Make better use of digital skills: Understand the digital skills that your employees have and constantly re-imagine work processes and organisational design around the full spectrum of their abilities. Showcase digitals societal potential: Promote the ways social impact programmes and commercial offerings can help meet peoples needs and wants. For governments Develop a balanced scorecard of digital development: Metrics should focus on inclusion and trust alongside growth of digital industries. Give people more control over digital innovation: By involving people in a more deliberative process of debate and discussion, governments can help shape a shared understanding of what is and what is not acceptable in terms of technology development. Harness technology to enable effective learning: Ongoing training and immersive learning experiences will help leverage skills and unlock the potential of digital technologies. Give people belief in digital and they will be more likely to use digital products and services Digital Society Index 201991. Whats digital ever done for us? Whats digital ever done for us? Fans of Monty Python will get the reference. But most people will recognise the sentiment. Thirty years on from the birth of the world wide web, the digital economy has been a hugely positive force in the world, helping to lift millions out of poverty, access essential services, find jobs, learn new skills and make new connections But despite these opportunities, our survey shows that many people today feel that digital is changing their lives for the worse. That paradox explains why its crucial to understand the drivers of positive engagement with digital technologies to ensure they meet peoples fundamental needs. The potential benefits of digital to people and society are huge. Yet these benefits risk being undermined by a lack of trust and the unaccountability of technological development. As brands continue to utilise digital products, services and channels, it is essential that they are attuned to changing sentiment to ensure meaningful engagement. Building the Digital Society IndexWe have been working with Oxford Economics since 2017 to understand those changing relationships more fully and to examine how well countries are developing a digital economy that works for all in society. For our latest report, weve combined a major primary survey covering more than 43,000 people across 24 countries with economic and statistical analysis. By measuring country-level performance across three dimensionsdynamism (the strength of the core digital sector), inclusion (the breadth of access people enjoy to the benefits created by the digital economy) and trust (the extent to which people have trust in data use as well as broader optimism about the future)we have created a unique people-centric view on the digital economy. Our research reveals a mixed picture of progress. A number of countries are striking a healthy balance between dynamism, inclusion and trust, helping to safeguard the long-term benefits of the digital economy. But at the same time, in many countries people do not feel that their digital needs are being met. This has implications for the sustainability of digital growth models in those parts of the world. But it also has implications for how people behave as consumers and how brands engage with them.Digital Society Index 201910A deficit of trustThe twelve months since our initial report have seen unprecedented levels of scrutiny of the business models of digital companies. This scrutiny and some of the issue