Proposed action: European SME Digital Capability Framework Objectives: o Deliver a competency-based assessment system that enables companies to measure and improve their digital capability on an enterprise-wide basis o Help companies to align the talent, processes and technologies they need in order to meet the challenges of the digital economy. o Enable companies to make informed decisions about the level of digital transformation that is appropriate for their business o Provide a pan-European assessment service that improves the collective digital competency of European companies and improves their competitiveness Collaborators: o European Commission, business groups, SME’s and large enterprises, digital services specialists, employees (digital talent) and other stakeholders in what is intended to evolve into a European digital ecosystem

o 70% of European business and citizens are now online and changes brought about by digital technologies are becoming inevitable across all business functions, not just in marketing. o Businesses are having difficulty measuring their digital capability and analyzing the opportunities and challenges created by the Internet. o Many European organisations are therefore getting less value from their digital investments than they should be. o Low digital capability is affecting the competiveness of European businesses thus affecting the objectives of the Digital Agenda for Europe o For example, statistics from some European countries show that fewer than 25% of companies that have broadband are actively doing business online. o There are no European standards for helping businesses to improve their digital capability and do more business online The Need for Increased Digital Capability

Results of the Digital Capability Assessment o Respondents are committed to using digital technologies at work but this is not being supported with either training or infrastructure. o Over 30% say they are learning digital skills on an ad-hoc basis with 25% stating that they are learning social media as they go. o Over 40% of respondents are using their digital skills over 70% of the time so one assumes a lot of these are self-taught. o 50% of respondents cite communicating and sharing knowledge as the most effective way that digital technology improves productivity. o Only 7% chose building customer relationships and doing business online. o 28% think their IT systems need upgrading, while 26% of those who use smart phones and other digital devices in their work are using their own.

Conclusions of the breakout group The group discussed three related faced by SMEs in relation to increasing their digital competitiveness 1. Whether to do it If the SME is not motivated or not in a position to make an immediate informed, sources that might influence the situation include: – Appropriateness – Current digital capability – Incentive schemes – Trusted source – Peer network – Client pressure – Employee pressure – Trade associations 2. How to do it – Get Advice – Assessment – Peer learning 3. How to measure value from it – Effective use – Metrics/measurement – Business strategy integration Recommendation European Commission should undertake an industry consultation process regarding a digital capability ecosystem involving appropriate players from those listed above