Report calls for more digital champions across all sectors

A new report has suggested the appointment of a chief digital officer for Scotland as soon as possible and called for similar senior appointments across the public and private sectors to provide stronger leadership on digitalisation.
‘Digital Solutions to the Productivity Puzzle’, which has been produced by the Scottish Council for Development and Industry (SCDI), ScotlandIS, The Royal Society of Edinburgh and BT Scotland, says the Scottish Government and all business sectors need to focus on using Scotland’s new, world-class digital infrastructure for higher economic growth and public service improvements over the next five years.
It says the first chief digital officer for Scotland should be appointed to offer high-profile, expert leadership on how digital transformation can meet the country’s key economic challenge of increasing productivity.
The report calls for similar appointments to help recruit, train and continually develop more specialist computer science teachers.
It also makes recommendations on business transformation, data, skills and infrastructure, as well as joint work to drive up digital adoption, usage, benefits and skills across the Scottish business base.
These recommendations were developed based on research commissioned from economist John McLaren and after discussions with senior industry representatives at SCDI’s Digital & Productivity Forum.
The research confirmed that developments in ICT (Information & Communications Technology) have been – and are likely to continue to be – a key driver of productivity, but that the UK has fallen behind the US and other European countries.
It also found that, while invention and innovation play crucial roles 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.
The report highlights evidence that countries such as the US, in which digital is contributing most to productivity growth, combine ICT investment with new management structures and high skill levels.
It says that organisational redesigns will be required for Scotland to catch up with them and realise its full potential from digital investment.
PwC reported last month, for example, 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 chief executive, said: “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.”
Mark Dames, head of Policy & Public Affairs for BT Scotland and a member of the SCDI’s Digital & Productivity Forum, added: “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.”
As well as the recommendations on business transformation, the report makes recommendations on future-proofing infrastructure, big data and skills development.
  • 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
  • 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
  • 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.
  • 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
Those who took part in the Digital & Productivity Forum were: 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.

Digital provision in Scotland

The 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.
It has been estimated that if Scotland became a digital world leader GDP (gross domestic product) would increase by £13 billion by 2030, compared to £4 billion with only incremental improvements. 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.

Scottish Business Digital Maturity Index

Scottish Business Digital Maturity Index
Adoption, Usage, Benefits & Skills
Disconnected doubters
Basic browsers
Tentative techies
Enthusiastic explorers
Digital champions
Digital pioneers

Case Studies

The Scottish Agricultural Organisation Society (SAOS) Ltd is a federal co-op providing development services to Scotland’s farmers’ co-ops including the largest dairy, meat, grain and vegetable businesses in Scotland worth a total of £2.3 billion. It develops and operates the ScotEID system that delivers tracing of individual livestock from birth to slaughter. It was set-up following the disastrous Foot and Mouth outbreak which led to pyres of livestock due to traceability at that time being slow, cumbersome and inaccurate.
ScotEID web enabled data systems provide real time access for farmers, livestock markets and abattoirs to record, check and refine information concerning livestock movement.
Using ScotEID any animal moving through the supply chain with a suspected ailment can be found along with its cohorts, allowing for efficient eradication of infectious diseases. This has implications not only for livestock health but also on food security as movement of Scottish livestock is traced from farm to farm, through markets and eventually to meat processors.
As an example, ScotEID verifies ‘Scotch Beef’ as having been born, reared and butchered in Scotland, providing consumers and export markets with confidence that Scottish meat has the highest integrity and quality. There are quite remarkable underlying systems to achieve this and it is believed to be unique, giving Scotland significant advantage concerning brand integrity, quality assurance, disease control and underlying research.
The system is a private-public partnership between the entire livestock supply chain and Scottish Government; this allows the core data to be consistently refined in real time to be as accurate as possible, providing for a wide range of industry, government and research purposes governed by ‘data control in common’ agreements.
Accurate core data and common data control allows for flexibility and rapid response to industry needs and consumer concerns. ScotEID is providing Scottish farmers with the data tools to eradicate diseases such as Bovine Viral Diarrhoea and currently the new Beef Efficiency Scheme is being developed to provide farmers with data analysis and research to increase beef production efficiency, in particular to reduce greenhouse gas emissions.
The industry and government partnership, managed by SAOS, is providing accurate live data for a fraction of the cost of public data systems, whilst also reducing red tape for farmers e.g. by automatically recording livestock movements using electronic identification. Now the Scottish Government is using the system to allow farmers to submit statistical returns online and is using ScotEID data for other statutory purposes.
The international travel industry was an early adopter of online sales and marketing over 20 years ago, but in the last five years digital has become even more key to potential visitors. However, of the 8000 accommodation businesses listed on, only one third can transact online, while only two-thirds have what VisitScotland term an optimised listing.
The growth in smartphones and social media is increasing opportunities such as to build a rapport with customers wherever they are in the world, collect data on their preferences and sell higher value products; while also increasing the attraction of local authenticity, the need to manage online reputations and the expectation of digital connectivity at all points of travel.
Digital is now the primary source of travel inspiration – 65% of people are generally beginning to research online before deciding where or how they want to travel, most notably through social and video sites and search engines – and the strong growth of online research and purchases is expected to continue. Chinese tourists, forecast to be the world’s top outbound travel market by 2020, have a very high level of engagement with technology and brands.
Digital connectivity, platforms and skills are key to the success of the Scottish tourism industry, however, of the 9000 businesses listed on, 70% do not offer online bookings. Improving connectivity and use is needed, following examples of innovation and collaboration by SMEs to increase their profile and better meet the needs of customers, wherever they are.
Craigatin House is an extensive user of a variety of marketing channels including social media and direct mail, actively managing its business reputation online to rank No.1 on TripAdvisor under UK B&B’s for several years. It collaborates digitally, contributing to and leading the local Pitlochry partnership website, which is rich in content and a significant driver of traffic to individual businesses on the website.
The Fort William Accommodation Marketing Group, which is led by the Torlinnhe Guest House, has brought local availability together in one location allowing potential guests to research accommodation, check availability and book online, and members to share potential guest enquiries if they cannot accommodate them.
Many members no longer use international online booking services and they have seen no decline in occupancy while improving profitability as they no longer have to pay commission for bookings, retaining an extra 10 to 20% of each booking in the local economy.
A search “widget” is being incorporated into other local attraction websites allowing their customers to search and book accommodation without leaving the attraction website. The Group’s approach supports joint local marketing, take-up of online book-up by SMEs and higher conversion rates as bookings generally stay among group members.

Further reading

Digital Solutions to the Productivity Puzzle Report 
OECD: The Future of Productivity
The Impact of Digitalisation in Scotland 
Raising European Productivity Growth Through ICT 


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