bcg.perspectives - Greasing the Wheels of the Internet Economy
We define e-friction as the factors that can inhibit consumers, businesses, and others from fully participating in the national—and the international—Internet economy.
The BCG e-Friction Index assesses 55 indicators of friction that inhibit Internet use. We have grouped them into four components: infrastructure-related friction that limits basic access; industry sources and individual sources that affect the ability of companies and consumers to engage in online transactions; and information-related friction that involves the availability of, and access to, online content. (See Exhibit 1.)
No economy is entirely frictionless, of course, and sources of friction evolve over time, but a hypothetical country that comes out on top on all 55 friction indicators in our index today would score 0; one that ranks last across the board would score 100. We scored actual countries against these baselines. With an e-friction score of 14, Sweden’s Internet economy has less e-friction than any other country; Nigeria, at 82, has the most of the 65 countries covered. (See Exhibit 2.)