SCDI - The first Chief Digital Officer for Scotland should
be appointed with responsibility to offer high-profile, expert leadership and
challenge across the Scottish Government and the public and private sectors on
how digital transformation can meet Scotland's key economic challenge of
increasing productivity, according to a new report.
SCDI (Scottish Council for Development & Industry), Scotland
IS , The Royal Society of Edinburgh and BT
Scotland have joined forces to produce 'Digital
Solutions to the Productivity Puzzle'. With input from a cross-section of
industry leaders, it says that the Scottish Government and all sectors need to
focus on utilising the new, world-class digital infrastructure in Scotland for
higher economic growth and public service improvements over the next 5
years.
It calls for similar senior appointments across the public
and private sectors to provide stronger leadership on digitalisation and action
to recruit, train and continually develop more specialist Computer Science
teachers. The report also makes recommendations on business transformation,
data, skills and infrastructure and joint work to drive up digital adoption,
usage, benefits and skills across the Scottish business base.
Availability of Next Generation Broadband in Scotland has
increased significantly since 2011, from 41% of premises to 85% in 2015.
Further investment has been announced in digital infrastructure in the draft
Scottish Budget 2016-17. Around 95% of premises across Scotland will be able to
access fibre broadband by the end of March 2018.
The recommendations were developed following research
commissioned from the economist John McLaren and discussions by senior
representatives of the industry and the public and private sectors in Scotland
at a Digital & Productivity Forum. The research identified that
developments in Information and Communications Technology have been, and are
likely to continue to be, a key driver of productivity, but that the impact in
the UK has fallen behind the US and other European countries [1]. It
also found that while there is a crucial role to be played by invention and
innovation as sources of productivity growth, there is an even greater role
played by assimilation and ‘catching up’ by companies who are not at the
forefront of technological progress.
It has been estimated that if Scotland became a digital
world leader GDP would increase £13bn by 2030, compared to £4bn with only
incremental improvements [2]. However, at the recent National
Economic Forum, Deputy First Minister John Swinney MSP commented on the slow
speed of digitalisation in Scotland’s public sector, while a survey of Scottish
businesses has found that over two-thirds are currently classed as basic
browsers or tentative techies for digital adoption, usage, benefits and skills [3].
The report highlights evidence that countries in which
digital is contributing most to productivity growth, such as the US, combine
ICT investment with new management structures and high skill levels, and that
organisational redesigns will be required for Scotland to catch-up with them
and realise the full potential from digital investments .
PwC reported last month that more of the world’s leading
companies are appointing dedicated digital leaders with responsibility to
transform them into a fully digital enterprise, but most are not embracing the
Chief Digital Officer role quickly enough.
The recommendations in the report to drive business
transformation are:
- Digital
should become integral to overall strategy and delivery in government,
business and public services to capture the productivity gains (such as
deeper understanding and engagement with customers) which can only happen
if business models change, services are redesigned and if there is an
understanding of the technology and leadership at the most senior levels
- The
first Chief Digital Officer for Scotland should be appointed to progress
Digital Scotland development from infrastructure to economic growth and
public service improvements
- Chief
Digital Officers should be appointed in all public bodies
- The
Scottish Government’s Digital Transformation Service should be mandated to
work with all public bodies and not just central government
- Scotland
should have clear targets (measured in 2017 and 2020) to develop
businesses towards the upper end of the Digital Economy Maturity Index.
The aiming point should be for all businesses in Scotland to be at
'Enthusiastic Explorer' level or above
- The
role of the Digital Scotland Business Excellence Partnership should be
enhanced (or a new Digital Scotland group created) to identify and drive
where smart utilisation of digital technology can increase productivity
across all sectors and sizes of business (whether private or public
sector)
- Digital
Champions should be appointed to all of Scottish Enterprise’s Industry Leadership
Groups and more businesses should be encouraged to consider appointing
Chief Digital Officers
- A
Scottish Productivity Commission, modelled on the international best
practice such as those in Australia and New Zealand, should provide
independent research, advice and performance monitoring to government and
all sectors, under the direction of the Council of Economic Advisers
Ross Martin, SCDI of Chief Executive, commented:
“Poor
productivity performance compared to our pre-financial crash record and to many
other economies has bedevilled the Scottish economy in recent years, holding
back growth and prosperity. Substantial leaps in productivity are difficult for
a developed economy to make, so it will be key to seize this opportunity to
work smarter, innovate and internationalise by transforming Scotland into a
fully digital nation.
“This report proposes how the Scottish Government and all sectors can bring the same focus to realising the potential economic growth and public service improvements of digitalisation in the next five years as there is on digital infrastructure. We recommend the appointment of the first Chief Digital Officer for Scotland to provide leadership, advice and challenge at the most senior levels of government on the frontier of technological progress and similar appointments across the public and private sectors.
“There is a range of positive work in progress on digitalisation and some great examples of businesses using digital technologies to better meet the needs of their customers. However, with economic headwinds strengthening, becoming a digital world-leader is essential if Scotland is to transition from a fragile to an agile economy.”
“This report proposes how the Scottish Government and all sectors can bring the same focus to realising the potential economic growth and public service improvements of digitalisation in the next five years as there is on digital infrastructure. We recommend the appointment of the first Chief Digital Officer for Scotland to provide leadership, advice and challenge at the most senior levels of government on the frontier of technological progress and similar appointments across the public and private sectors.
“There is a range of positive work in progress on digitalisation and some great examples of businesses using digital technologies to better meet the needs of their customers. However, with economic headwinds strengthening, becoming a digital world-leader is essential if Scotland is to transition from a fragile to an agile economy.”
Member of the SCDI’s Digital & Productivity Forum,
Mark Dames, Head of Policy & Public Affairs for BT Scotland, commented:
“We
are now at a critical point in the development of Scotland as a digital nation.
Access to high-speed internet has greatly increased in recent years thanks to
commercial and publicly funded investment in fibre broadband. However, the
success of exploiting digital technologies will be a decisive factor in whether
Scotland achieves its economic growth objectives.
“Digital leadership is required to drive innovation in the private and public sectors; leadership to shift the agenda beyond infrastructure to focus on economic growth and improved public sector delivery; and leadership to ensure that the next generation of school leavers have the digital skills necessary to contribute to the future success of the nation and prosper in the global economy.”
“Digital leadership is required to drive innovation in the private and public sectors; leadership to shift the agenda beyond infrastructure to focus on economic growth and improved public sector delivery; and leadership to ensure that the next generation of school leavers have the digital skills necessary to contribute to the future success of the nation and prosper in the global economy.”
In addition to the recommendations on business
transformation, the report makes recommendations on future-proofing infrastructure,
big data and skills development.
Infrastructure
- Everyone
should have access to a minimum broadband speed of 10Mbit/s and 4G mobile
coverage, and, after the current programmes, ultrafast broadband at
500Mbit/s and 5G mobile should be rolled out by 2025. Should there be
market demand, this ambition should be raised to 1Gbit/s for key economic
locations
Data
- Government,
following widespread consultation, should develop a long-term framework
which allays public concerns about data sharing and encourages an open,
joined-up and industry-friendly approach by public bodies
- A
lead partner should be appointed to make recommendations on access and
utilisation across data streams to drive productivity and innovation
- More
open innovation forums should be established where anonymised data on
challenges can be analysed by industry and solutions developed
Skills
- The
national shortage of Computer Science teachers should be addressed with
action to recruit, train and continually develop specialist teachers. The
attractiveness of teaching careers, resources and profile of computer
science should be raised so that the curriculum can be fully delivered,
more young people study the subject and the gap in performance with
leading countries closed [6]
- Digital
should be infused into teacher training and in-service CPD for every
teacher to pass skills to the next generation as developing a digital
literacy for all should be integral throughout the Curriculum for
Excellence
- Work-based
skills development should be strengthened to capture the potential
productivity gains from digital technologies by ensuring that staff have
the range of coinciding digital, analytical and ‘soft’ skills, for example
through ‘super users’ in SMEs and the wider use of the Scottish Union
Learning course on basic digital skills
The participants in the Digital & Productivity
Forum were from the following organisations:
Bank of Scotland; BT Scotland; CGI; City of Edinburgh Council; CodeBase; Comhairle nan Eilean Siar; FSB Scotland; Grayling Public Affairs; Heriot Watt University; Interface; KTN UK; National Library of Scotland; NHS Health Scotland; Ofcom; Oracle Scotland; Royal Society of Edinburgh; Scottish Agricultural Organisation Society; SCDI; ScotlandIS; Scottish Cities Alliance; Scottish Courts and Tribunals Service; Scottish Enterprise; Scottish Environment Protection Agency; Scottish Government; Scottish Social Services Council; Skills Development Scotland; Smarter Grid Solutions; Virgin Media; and VisitScotland.
Bank of Scotland; BT Scotland; CGI; City of Edinburgh Council; CodeBase; Comhairle nan Eilean Siar; FSB Scotland; Grayling Public Affairs; Heriot Watt University; Interface; KTN UK; National Library of Scotland; NHS Health Scotland; Ofcom; Oracle Scotland; Royal Society of Edinburgh; Scottish Agricultural Organisation Society; SCDI; ScotlandIS; Scottish Cities Alliance; Scottish Courts and Tribunals Service; Scottish Enterprise; Scottish Environment Protection Agency; Scottish Government; Scottish Social Services Council; Skills Development Scotland; Smarter Grid Solutions; Virgin Media; and VisitScotland.
[1] OECD: The Future of Productivity, http://www.oecd.org/economy/the-future-of-productivity.htm 2015
[2] http://www.scottishfuturestrust.org.uk/files/publications/Impact_of_digitalisation_in_Scotland.pdf
[3] http://www.gov.scot/Topics/Economy/digital/digitaleconomy/DEMI and
Notes to Editors
[5] PwC Strategy, 2015 Chief Digital Officer Survey
[6] Computing at School Scotland, Briefing on Computer
Science Education in Scotland, February 2015
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