Applying the Decision Tree Method in Identifying Key Indicators of the Digital Economy and Society Index (DESI)

The fourth industrial revolution is affecting the way people live, work and communicate. Driven by rapidly changing technology, it reflects on a new paradigm - digital transformation (DT). DT seeks to strike a balance between improving business operations and new opportunities that the revolution brings. Essentially, DT brings changes in the business model making it fully end-user oriented. Well prepared are those organizations that accept transformation at all levels and incorporate DT into strategic plans. Because organizations approach the transformation process in different ways, so is the impact of DT on their competitiveness level also different. There are various methods for measuring the success of the transformation process, and Digital Economy and Society Index (DESI) is one of them. It measures the digital competitiveness of EU Member States through defined dimensions and sub-dimensions, and ranks the observed countries accordingly. This paper is aimed to identify key dimensions and sub-dimension that affect the rank, using the method of the decision tree for this research.