Kazakhstan’s Digitization Generates $578 Million for Economy in 2018
Jul 1, 2019
The International Data Corporation’s (IDC) Chief Information Officer (CIO) Summit was held in Nur-Sultan, Kazakhstan from June 12-14, which is the head worldwide supplier of market insight, warning administrations, data innovation, broadcast communications, and buyer innovation markets. The IDC annually gathers CIOs, business officials, and tech providers to discuss how to extricate the most from innovation and imagine procedures for advanced development, client experience, mechanized plans of action, and computerized stages. During the summit, Kazakh Vice Minister of Digital Development, Defense, and Aerospace Industries Ablaikhan Ospanov claimed that Kazakhstan’s digitization efforts generated $578 million for its economy in 2018, which is evident of Kazakhstan’s determination to build a digital state. Global Digitization Trend During the Nur-Sultan summit, IDC predicted that 20 percent of global businesses will allocate at least 10 percent of their income to digital transformation by 2020 — considering it as a long-term investment. Global technology and services expenditure that will allow this business transformation is set to achieve $1.97 trillion in 2022. The prediction is not unfounded. Although digital transformation is predominantly used in a business context, it also impacts entities such as governments, public sector agencies, and organizations engaged in addressing societal challenges (such as pollution and aging populations) by leveraging one or more of these existing and emerging technologies. Many countries have realized the importance of digitization and incorporated it into national strategies. For example, China initiated a “Digital Silk Road” project, aiming at strengthening internet infrastructure, deepening space cooperation, developing common technology standards, and improving the efficiency of policing systems among the Belt and Road countries. Countries like Australia, Austria, Canada, Germany, and Switzerland are leading the Industry 4.0, an idea of smart factories where machines are augmented with web connectivity and connected to a system that can visualize the entire production chain and make decisions on its own. In Japan, digital transformation even aims at impacting all aspects of life with the country’s Society 5.0 initiative — reaching far beyond other nations. Kazakhstan also caught up with the digitization train and proposed the program of “Digital Kazakhstan” in 2017. Digital Kazakhstan State Program The Digital Kazakhstan state program is a national program that aims to improve the standard of living of every Kazakh citizen through the use of digital technologies. The plan is to implement the program within five years (2018-2022) in five key areas: digitization of the economy, transition to digital government, implementation of the Digital Silk Road, human capital development, and creating an innovation ecosystem. Within these five areas, there are 17 specific goals and 120 projects. For digital economy, the goal is to increase productivity in all aspects by using groundbreaking technologies and possibilities. One significant project is Digital Mine, in which the information system collects data through sensors installed on the equipment, provides optimal production processes, monitors reagent consumption, reduces equipment downtime and quickly identifies, and eliminates emergency situations. One of Kazakhstan’s examples is Sergek (Vigilant), a system used to monitor the observance of traffic rules. The implementation of a Digital Silk Way focuses on the development of a high speed and security infrastructure of the transfer, storage, and processing of data. To create an innovative ecosystem, the Kazakh government has established the Astana International Start-up Hub, which is expected to provide domestic IT specialists and start-ups with an opportunity to begin developing their projects. “Digital Kazakhstan” is a broad project with a detailed agenda. Although the Kazakh government emphasizes the importance of technology, it is tasked with juggling the legitimization process: managing implementation, cultivating CIOs, and making the program a long-term investment. The national project is open-ended, and provided Kazakhstan with plenty of opportunities to succeed, as well as fall short.