OECD webinar: Access to digital infrastructure and cloud computing for SMEs
On 3rd October, we’ve took part in the online discussion organized by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) invites you to the “Digital for SMEs” on the Access to digital infrastructure and cloud computing for SMEs.
The EU’s Digital Decade targets for cloud are clear. The goal is having more than 75% of EU companies adopt cloud computing, using big data or AI by 2030. According to DESI 2022, 34% of EU enterprises purchased sophisticated or intermediate cloud computing services in 2021, e.g. enterprise resource planning (ERP) software applications; customer relationship management (CRM), finance or accounting software applications or others.
European data also shows that in 2021, the cloud uptake of large companies reached 60%, almost doubling that of SMEs with 33%. Leaders in incorporated higher cloud services are again the Nordic countries - Sweden, Finland, Denmark and the Netherlands, since more than 60% of their enterprises bought such services. The gap between the leaders and the countries with the weakest performance in this dimension is extremely large, with Bulgaria and Romania scoring below 15%.
The challenge concerning cloud solutions is how to make sure we deploy the energy-efficient and reliable edge computing and cloud infrastructures, enabling us to innovate in a sustainable way. Cloud solutions also demand new qualifications and expertise, such as data science knowledge, cybersecurity skills, programming skills or specialised technical skills and it is necessary to think about all these areas comprehensively. The ability to deploy and use cloud solutions goes hand in hand with the knowledge of its benefits, but also of the possible challenges such as data leaks or breaches, the ability to control sensitive personal data, data loss or security. Users have to learn how to use these technologies better and smarter, such as audit personal files and folder shares, use two-factor identification, and more.
A spinoff project of the Slovak Alliance for Innovation Economy (SAPIE), the League for Digital Boost, which is a CEE initiative to support digitalisation of SMEs, conducted a survey mapping the level of digital transformation of Slovak SMEs in cooperation with Slovenská sporiteľňa in February 2023. According to our data, only 11% of SMEs declare they work in a complex digital ecosystem. An additional 19% of SMEs are currently in the process of implementing digital solutions. Half of the survey respondents also state that they are aware of the need to digitalise, but they lack funding or know-how.
Some of the concrete activities how to support implementation of cloud solutions in small businesses could be grouped into 4 categories:
Education and Awareness - organizing workshops, training programs, and seminars to educate SME owners and employees about the importance of digital transformation, its benefits, which helps SMEs understand the need for change and how to get started.
Networking Opportunities - facilitating networking and collaboration among SMEs. Connecting SMEs with each other, as well as with larger companies, tech experts, and potential investors, can help them learn from each other's experiences and find valuable partners.
Policy Advocacy - advocating for policies that support SMEs in their digital transformation journey. This can include regulatory changes, or government programs aimed at promoting digitalization in small businesses.
Research and Data Analysis - conducting research and gather data on digital transformation trends and best practices. Sharing this information with SMEs can help them make informed decisions about their own transformation strategies.
Addressing digital disparities in the adoption of cloud computing, especially in regions like Central and Eastern Europe (CEE) where SMEs may face greater challenges, often requires a combination of strategies and programs. These strategies should aim to promote awareness, improve accessibility, and provide support tailored to the specific needs of SMEs.
These strategies and programs should be tailored to the specific challenges and opportunities within the CEE region, taking into account the varying levels of digital maturity and resource availability among SMEs in different areas. Collaboration between governments, industry associations, tech companies, and educational institutions is key to successfully addressing digital disparities in cloud computing adoption.
