1 September 2016

We need to call time on leaders who are unwilling to adapt to digital transformation, argues Dr Jim Hamill, Director of Future Digital Leadership.

While it is understandable that discussions about Brexit are dominating the UK agenda, there is an even more important challenge facing our economies – digital disruption.

The negative economic impact of Brexit will pale into insignificance if we do not rise to this ever growing challenge. As argued strongly in our end of 2015 report for the Federation of Small Businesses, the changes brought about by the Internet over the last twenty years are nothing compared to what’s yet to come. No industry or organisation is immune. With 40 per cent of jobs possibly on the line from automation, each and every one of us could be affected.

We have a new generation of constantly connected customers and employees, and a number of technologies that keep accelerating the pace of change: from mobile connectivity to social media, including the internet of things, the cloud, artificial intelligence, robots, automation and blockchain. These are just a few examples; yet it’s easy to see how quickly they are re-shaping markets.

So let’s refocus and tackle a really urgent debate on digital transformation. Our number one micro-economic challenge is to enhance our international competitiveness. Being at the forefront of technology is a key part of that challenge.

There is plenty of evidence arguing that the UK either steps up its game, or risks becoming a digital dinosaur. The World Economic Forum 2016 Network Readiness Index (NRI) shows that seven countries lead on digital investment: Singapore, Finland, Sweden, the Netherlands, Norway, Switzerland and the United States. These seven ‘enthusiastic adopters’ are the strong forces, positioned to capitalise on the Fourth Industrial Revolution, brought on by digital disruption.

In contrast, the UK is falling behind many of our overseas competitors across a range of measures. And whilst we are currently sitting in 8th place, just behind the seven ‘enthusiastic adopters’, we are progressing at a slower rate than those leading nations. The Scottish Government’s vision of becoming a World Class Digital Nation by 2020 appears to be a distant dream.

A new breed of senior executive is urgently required. We need Digital Business Leaders; leaders who can combine high levels of business knowledge with the ability to affect digital transformation that are in line with agreed business goals and objectives. Leaders who possess both the confidence and personal skills to drive digital-led organisational change.

In an era of rapid change and disruption, no one can claim to lead without understanding the impact technology has on their organisation.

We need to call time on leaders who are unwilling to adapt.

Dr Jim Hamill will be leading the Digital Leadership Masterclass in association with the University of Edinburgh Business School on 13–14 October 2016.