The majority of enterprises (60%) identify themselves as having a low and moderately low level of digitalization, while 40% identify themselves as having a moderately high (32%) and high level of digitalization (8%). Over 90% of jobs require specific types of digital skills. At the same time, only one-fifth of employees meet the required level of digital competency for their job.
These are some of the results of the analyses and surveys conducted within the project "Ready for Digital Transformation", implemented by the Bulgarian Industrial Association (BIA), in partnership with the Ministry of Labour and Social Policy (MLSP) and the Confederation of Independent Trade Unions in Bulgaria (CITUB). The project is funded by the Human Resources Development Operational Programme 2014-2020 and aims to increase the specific digital skills of the workforce in 16 economic activities/sub-activities under the 2008 Code of Economic Activities.
The survey was carried out through an online survey platform, with 1,460 respondents from 103 enterprises in 16 economic activities (sectors). The results were summarised by sector committees involving 150 managers, HR specialists, representatives of social partners and educational institutions.
What technologies are enterprises using or planning to deploy?
The majority of surveyed enterprises indicate that the digital technologies they use are sensors for recording information (77%), enterprise resource planning systems - ERP (70%) and customer relationship management systems - CRM (69%). The percentage of those using mobile applications (65%), cloud computing (59%) and digital connectivity and/or the Internet of Things (51%) is also relatively high. 42% of the respondents declared that they use software and systems for cyber security, and 36% - cyber-physical systems. 15% of the respondents use robots in their activities, and 3D printing is among the technology provided by only 7% of the companies.
Cyber security systems are of greatest interest to enterprises – 45% of respondents plan to invest in such equipment. Digital connectivity and/or the Internet of Things as well as cyber-physical systems are part of the future investments of 40% of survey participants. Next in terms of investment interest are cloud computing (38%), robots (37%) and mobile applications (30%). One in five plans to invest in ERP (21%), ERM (20%) or information registration sensors (19%), and 3D printing is the area of interest of only 11% of survey participants.
What hinders further adoption of new digital technologies in enterprises?
Insufficient funds for investing in digitalization (79%), lack of a long-term strategy (69%) and insufficient qualifications and skills of employees (68%) are the three leading barriers to the introduction of new digital technologies in enterprises, the BIA survey shows. Other barriers to future digitalisation include insufficient maturity of the technologies used (61%), psychological barriers in employees (55%) and the need to change business models and management systems (49%). For 42% of respondents, digitalization is not among the current priorities of the company they represent.
DEFICITS
The vast majority of enterprises in the 16 sectors, especially small and medium-sized enterprises (SMEs), are underprepared and lag behind in making the digital transition. Over 90% of jobs require specific types of digital skills. At the same time, there are significant gaps in the digital skills of the workforce. Only 19% of survey respondents meet the required level of digital competency for their key job. Around 15% of those surveyed have worsening digital skills problems, increasing the risk of job loss and limiting access to the labour market.
The analysis of actual digital skills shows that the levels of general and specific skills offered are one or two grades lower than those sought. This is mostly observed for general skills, while the differences are smaller for specific skills. Shortages of specific skills are observed in: working with e-tables and databases; working with specialised software and systems; working with cloud technologies; using anti-virus programs; installing software and drivers, working with diagnostic systems; remote access communication and problem solving applications and systems; setting digitisation strategies; exploring market potential through digital means; making sales electronically, etc.
BARRIERS
Motivation and attitudes to working with digital technologies are subject to a number of social and psychological barriers. Social barriers are related to age, gender, language, ethnicity, social status, income, education and residence. The psychological barriers are: anxiety about lack of knowledge, skills and experience (69%), lack of information about the benefits and effects of digitalisation (61%) and anxiety about ability to meet new demands (61%). Fear of the unknown was a barrier for 54% of BIA survey respondents, and 51% worried about the need to put in extra effort. Concern about job retention is present in 48% of survey respondents, and distrust of new technologies is experienced by 39%. A threat to personal interests and reputation was seen by 23% of respondents, and 15% cited a lack of vision for the future state of the enterprise.
STANDARDS, METHODOLOGIES AND RECOMMENDED PROGRAMMES
In order to support the transition to digitalisation and increase the digital skills of employees, BIA has developed 87 standards for digital skills and competences of key positions for enterprises in the 16 sectors of the economy covered by the "Ready for Digital Transformation" project. The competency profiles describe a total of 762 digital competences, 2994 knowledge units, 2998 skills units, 2992 behaviours and 2131 use cases. The total number of digital competences included in the profiles is 385 and the number of specific competences is 377.
In addition, the BIA has created sector-specific tools in the form of methodological guidelines for maintaining and upgrading the digital skills of workers, as well as recommended non-formal training programs for the development of specific digital skills.
The methodological guidelines are oriented to the management of enterprises and specialists dealing with training and human resources development. The aim of these documents is to serve as a methodological basis for the development of more effective policies and practices and to support the formation of a proprietary model and capacity of enterprises in the development of digital skills of their workforce.
The sectoral recommended programmes for non-formal learning aim to support the development of digital competences in people performing key functions in the implementation and improvement of business processes in enterprises. The programmes are an appropriate basis for self-assessment, training and validation of the skills of those working in the sectors, in line with current requirements and standards for digital competence. The programs were tested by 520 employees by undergoing a pilot e-learning on the developed learning content of 36 e-courses in the e-learning platform created for this purpose - www.bia.contipso.com. The platform will be free for public use after the end of June 2023 (after its test period).
The standards, methodologies, programmes and analytical materials are freely available on the project website - www.digital.bia-bg.com.
Quote:
"Unfortunately, there is not a sufficiently developed practice in enterprises to assess the level of current digital skills of staff. More attention is paid to technology, but not to people. In this context, the developed assessment tools are very useful." (Tomcho Tomov, head of the National Competence Assessment Center at the BIA)
