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Over-regulation, insufficient funding, and lack of digital literacy are main barriers to digital transformation in Ukraine, – EBA survey

25/ 05/ 2021
  This year, for the first time, the European Business Association conducted an expert study of the current state of digital transformation deployment in both public and private sectors - the Digital Transformation Index - in partnership with Huawei Ukraine and SAP Ukraine. The integrated index amounted to 2.81 points out of a 5-point scale and, thus, appeared to be in the negative plane. View the presentation The general level of digitalization of the companies received the highest score among the components of the index. Thus, 47% of CEOs rated the level of digital development of their business as average, 39% believe that it is high and the other 5% - very high. Only 9% of respondents believe that the level of digital transformation of their companies is low. In addition, a digital transformation strategy is aligned with the corporate strategy in 89% of the surveyed companies. According to business representatives, the industries of their specialization are undergoing digital transformation at a slightly slower pace. Thus, 55% of respondents believe that the level of digital transformation of their industries is average, 16% - high, and the other 6% - very high. At the same time, 23% consider it low or very low. In the context of barriers to the development of digital transformation in business, the company directors named over-regulation and ineffective legislation, insufficient funding, and lack of digital literacy as the top three. Thus, 41% of directors assess the level of digital literacy of their employees as moderate, and 13% consider it low. The other 46% rate their teams digital literacy at a high level. The business invests in the development of digital technologies. According to the survey, the priority investments in this area are customer services (CRM, e-commerce, marketing automation) - 75% of companies, data analysis - 55%, employee relations management (core HR, talent management, digital workplace) - 48%. The vast majority of respondents, namely 55%, satisfactorily assess the scope and quality of public e-services. At the same time, 38% believe that the level of such services is low or very low. The other 7% consider that the public electronic services are provided at a high level. Among the most common e-government services, the respondents rated the work of Diia - the single portal of public services - at the highest score. In comparison to other components of the index, the business rated the level of digital infrastructure the worst, as well as the level of digital inclusion in Ukraine. Thus, 47% of respondents rate the digital infrastructure as average, the other 42% - as low or very low. Meanwhile, the vast majority, namely 54%, rate the level of digital inclusion as low or very low, and 32% as average. Thus, the development of digital infrastructure, as well as improving access to the use of modern technologies should be priorities for the state in this context. Anna Derevyanko. EBA Executive Director. The last year has prompted businesses to make unprecedented changes and accelerate the digital processes, so we decided to measure the development of digitalization. We hope that the obtained data will be useful for removing barriers and finding growth points, and the study will further serve as an indicator of the pace of digital transformation of business and the public sector in Ukraine. Ma Qi. CEO Huawei Ukraine. An open dialogue today with the participation of all stakeholders is an example of how an effective ecosystem for experience-sharing and future planning can be built upon the results of the Digital Transformation Index. Maksym Matyash. Director of SAP Ukraine. We are observing a dynamic growth of the Ukrainian IT market. However, there are certain barriers that hamper the development of digitalization due to the rather complex regulation of the industry, emigration of educated workforce, weak infrastructural support for new projects, restrictions on the use of cloud technologies in the public sector, etc. This is also confirmed by the results of expert research. SAP has nearly 50 years of experience working with business, governments and the public sector, and we understand that digital transformation is an important challenge and a prerequisite for the development of the whole society, and this process can only be successful with government support and continuous dialogue of all parties. Also, important factors on the way to a digital society and the transformation of business into smart enterprises are the maturity of the perception of such a concept of development, the willingness to invest in business transformation and use global best practices. For our part, we will share our achievements to ensure the implementation of the necessary initiatives in Ukraine. View the presentation of research https://youtu.be/9Ke9kcLM2Iw   For reference: Digital Transformation Index has been сonducted by the European Business Association since 2021. The DTI was created to analyze the current state of digital transformation deployment in both public and private sectors to provide a 360-degree view of the digitalization processes and define the key driving factors and barriers to digital transformation.  The final index score is calculated by aggregating the 5 equal estimations:  General level of digital transformation of the companies; General level of digital transformation of the industries; General level of digital infrastructure development; General level of digital inclusion; Scope and quality of public e-services.  Altogether, 130 CEOs, COOs, and CTOs of EBA member companies participated in the survey which was carried out from March 29 to April 14, 2021. Main Partners             Analytical Partner About SAP SAP is one of the world leaders in the enterprise applications market, which helps organizations of all sizes and different specializations to manage their business more effectively. Whether it is ancillary services or a board of directors, a warehouse or a store, desktop or mobile applications - SAP solutions can increase the efficiency of interaction between individual employees and organizations as a whole, form a deep understanding of business and create a competitive advantage. SAP solutions and services are used by more than 400,000 customers (including SuccessFactors systems), the companys advanced technologies guarantee high profitability, contribute to continuous adaptation and sustainable development. SAP entered the Ukrainian market in 1995. In Ukraine, its clients are more than 250 state organizations, as well as enterprises of the oil and gas, energy and metallurgical sectors. SAP actively participates in the development of Ukraines national IT staff, cooperating with the countrys leading universities in the framework of the global program University Alliance. More detailed information is available on the website: www.sap.ua.   About Huawei Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services – we are committed to bringing digital to every person, home and organization for a fully connected, intelligent world. Huaweis end-to-end portfolio of products, solutions and services are both competitive and secure. Through open collaboration with ecosystem partners, we create lasting value for our customers, working to empower people, enrich home life, and inspire innovation in organizations of all shapes and sizes. Founded in 1987, Huawei is a private company fully owned by its employees. At Huawei, innovation focuses on customer needs. We invest heavily in basic research, concentrating on technological breakthroughs that drive the world forward. We have more than 197,000 employees, and we operate in more than 170 countries and regions. Huawei has been operating in Ukraine since 2000. The strategy of Huawei Ukraine social responsibility covers four spheres: education, health, environmental protection, and development. Contacts: Alina Sevastiuk, public relations manager of Huawei Ukraine (corporate PR), sevastiuk.alina@huawei.com, +380 95 462-82-82 Oleksandra Tereshchuk, public relations specialist of Huawei Ukraine, tereshchuk.oleksandra@huawei.com, +380 96 340-66-22  

This year, for the first time, the European Business Association conducted an expert study of the current state of digital transformation deployment in both public and private sectors – the Digital Transformation Index – in partnership with Huawei Ukraine and SAP Ukraine. The integrated index amounted to 2.81 points out of a 5-point scale and, thus, appeared to be in the negative plane.

View the presentation

The general level of digitalization of the companies received the highest score among the components of the index. Thus, 47% of CEOs rated the level of digital development of their business as average, 39% believe that it is high and the other 5% – very high. Only 9% of respondents believe that the level of digital transformation of their companies is low. In addition, a digital transformation strategy is aligned with the corporate strategy in 89% of the surveyed companies.

According to business representatives, the industries of their specialization are undergoing digital transformation at a slightly slower pace. Thus, 55% of respondents believe that the level of digital transformation of their industries is average, 16% – high, and the other 6% – very high. At the same time, 23% consider it low or very low.

In the context of barriers to the development of digital transformation in business, the company directors named over-regulation and ineffective legislation, insufficient funding, and lack of digital literacy as the top three. Thus, 41% of directors assess the level of digital literacy of their employees as moderate, and 13% consider it low. The other 46% rate their team’s digital literacy at a high level.

The business invests in the development of digital technologies. According to the survey, the priority investments in this area are customer services (CRM, e-commerce, marketing automation) – 75% of companies, data analysis – 55%, employee relations management (core HR, talent management, digital workplace) – 48%.

The vast majority of respondents, namely 55%, satisfactorily assess the scope and quality of public e-services. At the same time, 38% believe that the level of such services is low or very low. The other 7% consider that the public electronic services are provided at a high level. Among the most common e-government services, the respondents rated the work of Diia – the single portal of public services – at the highest score.

In comparison to other components of the index, the business rated the level of digital infrastructure the worst, as well as the level of digital inclusion in Ukraine. Thus, 47% of respondents rate the digital infrastructure as average, the other 42% – as low or very low. Meanwhile, the vast majority, namely 54%, rate the level of digital inclusion as low or very low, and 32% as average. Thus, the development of digital infrastructure, as well as improving access to the use of modern technologies should be priorities for the state in this context.

Anna Derevyanko EBA Executive Director
The last year has prompted businesses to make unprecedented changes and accelerate the digital processes, so we decided to measure the development of digitalization. We hope that the obtained data will be useful for removing barriers and finding growth points, and the study will further serve as an indicator of the pace of digital transformation of business and the public sector in Ukraine.
Ma Qi CEO Huawei Ukraine
An open dialogue today with the participation of all stakeholders is an example of how an effective ecosystem for experience-sharing and future planning can be built upon the results of the Digital Transformation Index.
Maksym Matyash Director of SAP Ukraine
We are observing a dynamic growth of the Ukrainian IT market. However, there are certain barriers that hamper the development of digitalization due to the rather complex regulation of the industry, emigration of educated workforce, weak infrastructural support for new projects, restrictions on the use of cloud technologies in the public sector, etc. This is also confirmed by the results of expert research. SAP has nearly 50 years of experience working with business, governments and the public sector, and we understand that digital transformation is an important challenge and a prerequisite for the development of the whole society, and this process can only be successful with government support and continuous dialogue of all parties. Also, important factors on the way to a digital society and the transformation of business into "smart enterprises" are the maturity of the perception of such a concept of development, the willingness to invest in business transformation and use global best practices. For our part, we will share our achievements to ensure the implementation of the necessary initiatives in Ukraine.

View the presentation of research

 

For reference:

Digital Transformation Index has been сonducted by the European Business Association since 2021.

The DTI was created to analyze the current state of digital transformation deployment in both public and private sectors to provide a 360-degree view of the digitalization processes and define the key driving factors and barriers to digital transformation. 

The final index score is calculated by aggregating the 5 equal estimations: 

  • General level of digital transformation of the companies;
  • General level of digital transformation of the industries;
  • General level of digital infrastructure development;
  • General level of digital inclusion;
  • Scope and quality of public e-services. 

Altogether, 130 CEOs, COOs, and CTOs of EBA member companies participated in the survey which was carried out from March 29 to April 14, 2021.

Main Partners

         

 

Analytical Partner

About SAP

SAP is one of the world leaders in the enterprise applications market, which helps organizations of all sizes and different specializations to manage their business more effectively. Whether it is ancillary services or a board of directors, a warehouse or a store, desktop or mobile applications – SAP solutions can increase the efficiency of interaction between individual employees and organizations as a whole, form a deep understanding of business and create a competitive advantage. SAP solutions and services are used by more than 400,000 customers (including SuccessFactors systems), the company’s advanced technologies guarantee high profitability, contribute to continuous adaptation and sustainable development.

SAP entered the Ukrainian market in 1995. In Ukraine, its clients are more than 250 state organizations, as well as enterprises of the oil and gas, energy and metallurgical sectors. SAP actively participates in the development of Ukraine’s national IT staff, cooperating with the country’s leading universities in the framework of the global program “University Alliance”.

More detailed information is available on the website: www.sap.ua.

 

About Huawei

Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. With integrated solutions across four key domains – telecom networks, IT, smart devices, and cloud services – we are committed to bringing digital to every person, home and organization for a fully connected, intelligent world.

Huawei’s end-to-end portfolio of products, solutions and services are both competitive and secure. Through open collaboration with ecosystem partners, we create lasting value for our customers, working to empower people, enrich home life, and inspire innovation in organizations of all shapes and sizes.

Founded in 1987, Huawei is a private company fully owned by its employees.

At Huawei, innovation focuses on customer needs. We invest heavily in basic research, concentrating on technological breakthroughs that drive the world forward. We have more than 197,000 employees, and we operate in more than 170 countries and regions.

Huawei has been operating in Ukraine since 2000. The strategy of Huawei Ukraine social responsibility covers four spheres: education, health, environmental protection, and development.

Contacts:

Alina Sevastiuk, public relations manager of Huawei Ukraine (corporate PR), sevastiuk.alina@huawei.com, +380 95 462-82-82

Oleksandra Tereshchuk, public relations specialist of Huawei Ukraine, tereshchuk.oleksandra@huawei.com, +380 96 340-66-22

 

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