An index needs a framework for converting indicators to a unitary value. Most indices also group related indicators into categories that can be useful for analyzing countries relative strengths and weaknesses.

The Digital Opportunity Index is a composite index that measures “digital opportunity” or the possibility for the citizens of a particular country to benefit from access to information that is “universal, ubiquitous, equitable and affordable” (WSIS Tunis Commitment, para 10). It uses a range of indicators, including data on service prices and the take-up of latest ICTs, to assess countries’ performance and prospects to measure progress in building the Information Society in 180 economies worldwide. The DOI can be used to enrich policy and inform policymakers of the latest trends and impact analysis of ICT policies to identify successful policies and replicate them elsewhere.

The DOI follows the same methodology as the Human Development Index of the United Nations Development Program. The indicators are normalized relative to desirable values or goalposts.

For example, a goalpost of 100 was established for mobile cellular subscribers per 100 inhabitants. Assuming a country had 60 mobile cellular subscribers per 100 inhabitants, then the index value would be 0.6 (60/100). Indicators are weighted within their groups and then the groups are averaged to arrive at the DAI value.

This is the same methodology used by the United Nations Development Program’s Human Development Index (HDI), arguably the benchmark for composite indices, as it is one of the longest-standing and most referenced of all.

Grouping the indicators and using goalposts to normalize the values offers a number of benefits:
 

• It is a straightforward and transparent methodology since the goalposts are identifiable and the calculations clear.

• The use of goalposts establishes targets that countries can aspire to and establishes a parameter for achievement. Establishing the goalposts sharpens thinking about the indicators themselves and their relevance to the information society.

• Grouping the indicators allows countries to see where they are relatively strong and weak, which can be useful for policy-making.

• The index can be tracked over time without the index values changing meaning. This is particularly useful for policy evaluation.

• World Information Society Report 2006, ITU, July 2006

• Revised Methodology Report: Measuring Digital Opportunity (pdf format), ITU, November 2005