Ready-to-assemble digital strategy: why Europe should look to Scandinavia for digitisation inspiration

Ready-to-assemble digital strategy: why Europe should look to Scandinavia for digitisation inspiration

By James Keating, Chief Marketing Officer at Pleo

If you’re currently in an office, take a look over your shoulder and see if you can locate the oldest of office technologies – the fax machine. Despite being an office stalwart, chances are you’ll have no idea how to use it, and it’ll be older than most of your colleagues.

Yet this is emblematic of the digitisation conundrum (say that three times fast) that pervades most workplaces across the UK and Europe. While the pandemic ushered in a fresh approach to digitising existing systems, the old ways stubbornly remain. And now that people are able to leave their homes once more, there is the risk that people and businesses alike fall back into paper-based habits.

When it comes to Europe and digitisation in general, the bloc’s digital competitiveness has a way to go, with France, Germany and the UK all sitting outside of the top 10. That’s not to say the appetite isn’t there of course. Research from Amazon Web Services (AWS) and Gallup shows that 67% of digital workers in the UK want to gain more digital skills, rising to 70% in France and an above-average 78% in Germany. Yet, overall 92% of those interested in developing these skills say there are obstacles, including a lack of time and resources, in their way.

To remedy this and accelerate its digitisation efforts, countries shouldn’t look to the US or Asaia but their Scandinavian neighbours – Finland, Denmark and Sweden – who sit atop The Digital Economy and Society Index 2022 as the most digitised countries.

A digitised Scandinavia

Outside of the DES Index, the digital credentials of all three Scandinavian countries are well-known. For instance, Finland and Sweden are well on their way to becoming cashless societies. While The Netherlands and the UK aren’t far behind, in Germany banknotes and coins made up a total of 58% of purchases in 2021, while in France 91% of the population still frequently use cash.

The Nordics are similarly leading the pack when it comes to the percentage of households that have broadband access. While they are also giving the US and China a run for their money when it comes to the AI race and robotics.

One of the reasons why Northern Europe is a step ahead of the rest of Europe is that the political and economic framework has been, and continues to be, stable for the most part. While there is correspondingly strong and enthusiastic support from the population, and also from the business community, with this trust building up over decades.

For example, in ‘90s Sweden, there was a major “home PC reform” where one million Swedes were given their first computer. 850,000 computers were distributed to the tune of our billion SEK in taxpayer money, yet this was seen as an investment, with 71% of people feeling their computer knowledge increased as a result. Not a bad investment considering that in 2019, Sweden had by far the highest research and development spending in the entire EU.

This is one example of how a country’s government identified the long-term opportunity getting its citizens hands-on with technology could deliver and poured its efforts into something that can make all the difference – education.

Levelling up digital education

So, how did Sweden and its Nordic neighbours get to this stage? One way is through education. As the “home PC reform” shows, education can have a profound impact on the rate of digitisation. At the beginning of their time at school, there is an opportunity to naturally introduce children to technology and software tools, encouraging the need for schools to be equipped with state-of-the-art technology to teach skills such as programming and coding.

Not every country’s education sector will have the budget for this, but this is an opportunity for the tech sector to step in and take on more responsibility in educating its younger generations. They should think of it as an investment – planting the seeds of digital competence to sit in the shade of individuals’ innovation later on.

In Denmark, for example, tech companies go directly into schools, where experts from the field answer student questions, share their experiences, and provide insights into their daily work. While in Sweden, there are numerous private-sector initiatives, such as the SPACE Academy, which provide children and young people with targeted digital training.

This is not just about the youngest generations though. More support is needed for upskilling workers already at the beginning, midpoint, or even the end of their careers. Amidst a growing digital skills shortage, Europe is making very slow progress towards its goal of having 80% of adult citizens with basic digital skills and 20 million employed ICT specialists by 2030.

In a climate where 65% of over 55s in the UK say they have never received any digital upskilling, businesses must work harder to elevate the skillsets of everyone and to create an understanding of the steps needed to develop their skills. Not just in digital-facing teams either, but in everything from finance to production to human resources. This can prove a decisive factor in international competition in the medium-to-long term and something that is even more manageable in an era of user-friendly platforms.

Cooperation instead of digital islands

Sweden’s motto is “Together we are innovative”. And it shows too, as instead of focussing their efforts on national digital competitiveness, Swedish companies have instead cultivated a culture of broad-based cooperation. The advantage is that a collaborative mentality, flat organisational structures and an informal business culture are now the tradition.

In dozens of Nordic incubators and so-called science parks, global corporations such as Ericsson or Volvo meet startups and small companies, and together they tackle challenging topics like AI, sharing their expertise.

To catch up with their Scandi neighbours, countries across the EU need to have an increased degree of pragmatism when it comes to digitisation. This starts with decision-makers from the smallest companies up to the government, and must be formed of small but bold steps where progress is constantly reassessed and responsibility is shared.

If we can achieve this, then they are setting themselves up for success. And, with any luck, you won’t be reading this on a fax.