Make the most of change in this truly digital world
ONCE upon a time, the digital technology being created today seemed about as realistic as that enjoyed by George Jetson and his family in Orbit City.
Now, driverless cars are a reality, our homes can “smart” operate themselves and you can print food to eat and even materials with which to build on the moon. None of this would have been possible without the digital revolution that has swept through society and the economy, bringing opportunities and challenges in equal measure.
Obviously, business across the globe has not been immune to these seismic changes, and Wales is in prime position to capitalise on them – the UK is first in the world for e-Commerce, and fifth for the availability of technology.
Indeed, consumer facing businesses, such as those in the retail sector, have been quick to adapt to a new breed of digitally savvy consumer through effective use of innovative digital services, like click and collect and contactless payments.
However, not all companies are taking advantage of this digital opportunity. The World Economic Forum has the UK at only fourteenth for company-level adoption of technology, and new CBI research, conducted with IBM, shows that this is down to a growing digital divide opening up across the British economy.
Just over half of firms (55%) are pioneers in adopting and forging ahead with digital technologies and processes, reaping the benefits, whilst the other half (45%) have not even left the starting gate.
These pioneers tend to have longer term visions in place. They were responsible for more than half (51%) of investment in technology by business over the past year, and over a quarter of them (28%) have already invested in the next big thing, cognitive technology, compared to just 9% of firms on the other side of the divide.
It is clear, then, that digital is fundamental to the future success of a firm. 94% of businesses agree that digital technology spurs productivity, so it is vital they become more digitally savvy, and understand the strategic advantage of having a truly digital mind set.
Appointing a chief digital or technology Officer to inject some digital know-how at the top of a firm to drive change, and lead on strategy and execution, will ingrain an understanding of, and thirst for, digital at board level, and help to close the gap of the digital divide.
With shortages of digital skills across Wales, firms should also draw on the expertise of the generation at the very heart of the digital revolution. We would like to see businesses bringing in younger, digitally savvy advisers to boards or having reverse mentors, where older executives are paired with and mentored by younger employees.
And pioneer firms should find ways to work together with less digitally developed firms, through mentoring and coaching, advising and collaborating, whether that is informal, like coaching workshops or clinics, or formal Non-Executive Director appointments.
The CBI is well placed to facilitate this type of business collaboration and is planning ways to do this in the digital sphere.
Ultimately, we need to see an education and skills agenda that ensures a steady pipeline of relevant digital and technology skills for companies.
The right regulatory conditions and policy frameworks will of course need to be in place, but most important to business is having access to the innovative, boundary pushing skills of the bright minds in our schools and universities.
To make this vision a reality will require close cooperation between Westminster and Cardiff Bay and to begin this journey the next Welsh Government should make reviewing our national digital strategy an early priority.
Technological change is happening at a higher rate than was ever imagined possible. Ensuring Wales is in pole position to take advantage of this change will see all sectors of the economy flourish, for the benefit of all, in a truly digital world.