It’s been hailed as the ‘new industrial revolution’, a driving force that has the potential to enhance the way we work and how we live.
It’s a grand claim and yet the most refreshing thing about the advent of the digital age has been how its achievements already outmatch any hyperbole.
In particular, the opportunities to improve business performance through digital solutions have been enormous.
Public and private enterprises are increasingly connected to a digital fabric that can enhance all aspects of business: productivity, efficiency, innovation, growth and customer relationships.
Even in a country the size of Scotland, companies now routinely handle hundreds of business processes, deal with thousands of employees and potentially serve millions of consumers.
In fact, it’s estimated if Scotland becomes a digital world leader – with only incremental improvements to be made – its GDP would increase from £4 billion to £13 billion by the year 2030.
So what’s stopping even more Scottish companies from joining this business revolution?
After all, the availability of Next Generation Broadband in Scotland has grown significantly since 2011 – from 41 per cent of premises to 85 per cent last year. That figure is still growing, with further investment announced for digital infrastructure in the draft Scottish Budget 2016-17.
Based on current plans, around 95 per cent of premises across Scotland will benefit from access to fibre broadband by the end of March 2018.
While this network roll-out is welcome, more can be done to encourage take-up of the opportunities it offers.
This is a hard fact recognised in ‘Digital Solutions to the Productivity Puzzle’, a new report that aims to demonstrate how digital technologies and digitally-enabled business models can break down a major barrier to growth in the Scottish economy: weak productivity.
Produced as a collaboration between the Scottish Council for Development and Industry (SCDI), ScotlandIS, The Royal Society of Edinburgh and BT Scotland, with direct input from industry leaders, it says the Scottish Government and all sectors must now focus on utilising the new digital infrastructure.
Such a focus, it claims, would enhance productivity, boost economic growth and improve public services over the next five years.
One of its primary proposals in considering how to progress digital development is the appointment of a first Chief Digital Officer for Scotland.
This high-profile role would have responsibility for providing expert knowledge and leadership on digital transformation across public and private sectors.
Member of the SCDI’s Digital and Productivity Forum Mark Dames, who is also Head of Policy and Public Affairs for BT Scotland, believes such recommendations come at a landmark moment for Scotland.
“We are now at a critical point in the development of Scotland as a digital nation,” he says. “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.”
BT’s Mark Dames says we are at a critical point as a digital nation
Dames points out: “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 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.”
Dames’ reference to school leavers points to another important driver in the report’s strategy: education. With a strong focus on developing digital skills in the classroom, it is urging 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.
It emphasises that the attractiveness of teaching careers, suitable resources and the profile of computer science itself should all be raised. This, it suggests, would mean the curriculum can be fully delivered, resulting in more young people studying the subject.
TOURISM: DREAM DESTINATIONS GET REAL
Got a ticket to ride?
The impact of the digital revolution has been felt strongly in Scotland’s tourism sector. As the world becomes accustomed to living online – even on the move with smartphones – increasingly we source days away, winter weekends and summer staycations on the web.
This research isn’t only via company websites but through a variety of social media channels. It means those whose business is tourism must be alert and keep pace, continually finding new and engaging ways of providing information and of selling services. It all points to the fact that digital connectivity will be key to the future success of tourism in Scotland.
Craigatin House, a B&B, has successfully employed digital marketing
Wish you were here?
VisitScotland reported last year that of 8000 accommodation businesses listed on its website (www.visitscotland.com) only one third carried out transactions online.
Of the site’s 9000 listed businesses, 70 per cent do not offer the ability to book online.
As more organisations adopt online sales and internet-based marketing techniques, there are game changers coming to the fore.
These are the pioneers, demonstrating how to maximise use of digital solutions to gain positive exposure and generate sales.
What are the benefits?
Going digital offers greater usability and faster results. Those looking to holiday in Scotland can explore options from the comfort of their armchairs – wherever they are in the world.
Simultaneously, use of tablets, smartphones and social media offers those in tourism fresh opportunities to connect with clients, collect valuable data and manage their public persona.
Where can I find inspiration?
For a prognosis on the future health of Scotland’s tourism, where better to look than a former doctor’s house? The early Victorian Craigatin House has not only been transformed into an award-winning B&B, but won plaudits for its mix of marketing channels: a website, www.craigatinhouse.co.uk, social media and direct mailing.
So good is the online management of its profile, it enjoys a number one ranking for UK B&Bs on TripAdvisor. It also contributes to www.pitlochry.org, driving traffic to local businesses.
Another digital champion is the Fort William Accommodation Marketing Group. Led by Torlinnhe Guest House, www.torlinnhe.com, it has gathered local availability into one location, where visitors can check out accommodation and availability and book online: www.fortwilliam-guesthouse.com
As well as being easy to use, the business benefits are notable. Without the need to pay commission for bookings, members have seen improved profitability.
AGRICULTURE: TRACKING LIVESTOCK
What’s it all about?
You could say farming is as old as the hills. In fact, the earliest agricultural development began 11,500 years ago with the cultivation of wild barley, wheat and lentils.
The truth is agriculture has been evolving ever since, with farmers often early adopters of cutting-edge technologies.
This appreciation of science includes the harnessing of digital solutions. Consider, for example, the innovative ScotEID (Electronic Identification).
A web-enabled data system, this allows farmers to trace their livestock in real time – from birth and rearing, right through to the market and ultimately the abattoir.
This means any single animal moving through the supply chain can be found easily and quickly: if the animal had a suspected ailment, this would allow for rapid eradication of infectious diseases.
ScotEID removes red tape by recording the movements of livestock
So how does it work?
The ScotEID system is operated by the Scottish Agricultural Organisation Society (SAOS) Ltd, a federal co-op providing development services to Scotland’s farmers.
Its development followed the last major outbreak of Foot and Mouth disease in cattle, a disaster that highlighted the fact traceability of animals was too slow and inaccurate.
The ScotEID partnership between the supply chain and the Scottish Government now allows core data on animals to be consistently refined in real time. This means the information is as accurate and up to date as possible.
Who benefits?
Having greater accuracy and control of core and shared data allows for flexible, rapid responses to industry needs and consumer concerns.
ScotEID removes miles of red tape by automatically recording livestock’s movements using electronic identification.
It also provides farmers with the data tools to effectively eradicate diseases such as Bovine Viral Diarrhoea.
This has implications not only for livestock health but also on food security as movement of Scottish livestock can now be traced in detail.
So next time you see the label ‘Scotch Beef’ at your supermarket, thanks to ScotEID you can rest assured the animal was born, reared and butchered in Scotland.
Such assurance provides consumers at home, as well as vital export markets, with confidence the meat has the highest provenance and quality.
With farming businesses in Scotland worth a £2.3 billion, on an economic level ScotEID has allowed for projects such as the new Beef Efficiency Scheme, developed to provide farmers with data analysis and research to increase beef production efficiency – in particular to help reduce greenhouse gas emissions.
Who benefits? Everyone, including the planet.
DRIVING SCOTLAND'S DIGITAL AMBITIONS
THE recommendations made in Digital Solutions to the Productivity Puzzle were developed following research commissioned from economist John McLaren and discussions by representatives from the public and private sectors at a Digital and Productivity Forum.
Productivity research was commissioned from John McLaren
These are the report’s primary aims:
● Digital should become integral to overall strategy and delivery in government, business and public services to capture productivity gains
● The first Chief Digital Officer for Scotland should be appointed to progress Digital Scotland development, with Officers also appointed in all public bodies
● The Scottish Government’s Digital Transformation Service should work with all public bodies
● Scotland should have clear targets for 2017 and 2020 to develop businesses towards the upper end of the Digital Economy Maturity Index
● Digital Scotland Business Excellence Partnership should be enhanced or a new group created to identify and drive smart utilisation of digital technology
● Digital Champions should be appointed to Scottish Enterprise’s Industry Leadership Groups and businesses encouraged to appoint Chief Digital Officers
● A Scottish Productivity Commission should provide independent research, advice and performance monitoring under the direction of the Council of Economic Advisers.
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