Denmark the most digitised country in the world

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1 Denmark the most digitised country in the world Visions for the Danish Government November 2015

2 Denmark the most digitised country in the world Visions to the Danish Government ISBN nr.:

3 Denmark the most digitised country in the world A considerable growth potential is hidden within a strengthened digitisation of Denmark. An increased digitisation of Danish companies alone can release value creation of up to DKK 50 billion until Additionally, the European Commission assessed that a digital internal market has the potential to strengthen the EU s GDP by EUR 415 billion. Therefore, a united Danish business community stands behind the vision of Denmark once again becoming the most digitised country in the world. Strengthened cooperation between the public sector and private business will make this a reality. This vision proposal centres on three main focus areas: digital infrastructure, digital security and digital framework conditions. Best regards COPENHAGEN FINTECH INNOVATION AND RESEARCH 3

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5 The best digital infrastructure in the world 5

6 1. The best digital infrastructure in the world Denmark should have the best digital infrastructure in the world. This concerns the hardware part, where optimal access to e.g. broadband and mobile coverage are essential, but it also concerns the software part, which is, to a greater extent, about the solutions and systems that are developed on top of and with the help of the hardware part. 1.1 Access to broadband and mobile coverage for everyone Broadband connections and mobile coverage are crucial for companies productivity. Additionally, 75% of Danes believe that good broadband coverage in their districts is important for settlements and business environments. citizens and companies have access to the best broadband and mobile connections in the world; there are no digital A and B teams, where access to broadband and mobile coverage is based on where companies are operated and run from. 1.2 Better public IT solutions for companies and citizens Despite good intentions many public IT solutions for Danish companies and citizens do not function at a satisfactory level. This issue needs to be tackled. public digital solutions live up to several well-defined requirements that accommodate citizens, companies and public authorities expectations towards user friendliness; central players in the business community are actively involved in setting the requirements for IT solutions; public IT solutions are supported by an accessible, flexible and effective service for companies and citizens. 6

7 1.3 Public data as a growth driver Denmark has some of the most accurate data in the world, as well as a vastly well-educated and effective public sector. Unfortunately, these advantages are not adequately converted to innovation, growth and jobs. collecting and utilising data takes place in cooperation between the public and private sectors so that the data that is collected can be used as a base for innovation and development in both sectors; the open and secure access to data for citizens and companies which attracts companies from all over the globe, who wish to develop new products and services based on this data, gains international recognition. 1.4 Big Data data-driven innovation On a global scale, better use of data is expected to lead to large value creation. Only 7% of the largest Danish companies prioritise Big Data and only 42% expect this to become a focus area in the future. In comparison, the expectation figures are high in France, Germany and Spain at 80% 1. Danish companies are thereby at risk of missing out on part of the expected value creation. public and private business communities collaborate on processing public Big Data and providing non-sensitive data at the disposal of companies and private persons; we focus on strengthening SME s use of Big Data; we can create the necessary research and educational environments that can secure future competencies in relation to working with Big Data. 1 Report on Denmark s Digital Growth 2015 (Redegørelse om Danmarks Digitale Vækst 2015), the Danish government, May

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9 Denmark is home to the most secure digital users in the world 9

10 2. Denmark is home to the most secure digital users in the world A crucial prerequisite for fulfilling Denmark s digitisation potential is digital security. Users of digital solutions need to be able to trust that their digital behaviour will not have any undesirable consequences for them e.g. in the form of misuse of the data they submit or by being cheated financially when using digital solutions. Simultaneously, it is also of key importance that this digital security also covers challenged groups in society, who must not be abandoned. All in all, we need to ensure that Denmark is home to the most secure digital users in the world. 2.1 Privacy a key issue! If the digital solutions that companies and the public sector provide are not able to live up to users expectations on protection and security there is a huge risk of users losing trust in the system, not making use of new digital solutions and instead turning against the increasing digitisation this must not happen. the development of new IT systems is based on privacy by design, security-by-design and traceability of possible misuse which also means privacy analyses must be conducted when developing all projects (PIA); research in anonymization and de-anonymization of data is expanded upon with results actively used when developing new IT systems; rights servers are developed, where users can gain insight into the data that is registered about users and where users can indicate rules for the use of all data files; companies can gain access to guidelines on the anonymization of data and securing data that cannot be made anonymous. 10

11 2.2 IT and cyber security A high level of IT and cyber security is a prerequisite for maintaining Denmark s change-over to digitisation and fulfilling the digital growth potential. The threat from IT criminals is larger than ever before and it constitutes a real threat towards the digitisation potential both in relation to the loss and costs of cyber-attacks for companies and public authorities, but also in relation to citizens loss of trust in IT services. Therefore, Denmark needs to strive to have the highest IT and cyber security in the world. cooperation between the public and private business communities is the most comprehensive and systematic in the world e.g. via the creation of an intrinsic national security council; the state, municipalities and regions use the same common standards for IT and cyber security; users of digital solutions are continually updated about IT and cyber security and developments in the threat status e.g. via awareness campaigns. 2.3 Digitisation for everyone Denmark has a tradition of being an inclusive society and we need to maintain this in terms of digitisation. We would therefore, together with the public sector, like to contribute to making digitisation available for everyone in Denmark. we have a strong inclusive approach to digitisation so that challenged groups in society also reap the rewards of new digital initiatives; both public and private digital solutions should incorporate the needs of challenged groups before forming solutions; digital solutions designed particularly towards challenged groups support the daily life of these groups. 11

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13 The best digital framework conditions in the world 13

14 3. The best digital framework conditions in the world If Denmark is to become the most digitised country in the world it must be as easy as possible to be a digital entrepreneur. Existing and future legislation should not involve complicated processes that are not adapted to the digital reality. At the same time, future governments must be willing to support innovative digital environments so that Denmark appears as an attractive and innovative country, which both domestic and foreign digital companies wish to invest in also because Denmark can offer employees the right IT competencies. All in all, Denmark needs to have the best digital framework conditions in the world. 3.1 Legislation that is ready for digitisation Danish and EU legislation needs to be ready for digitisation otherwise, it could be an expensive affair for Danish companies. This concerns the digital possibilities that companies can develop but that legislation prevents, and the administrative burdens triggered by a lack of readiness. digitisation readiness is an integrated part of the drafting of legislative proposals; legislators involve the business community when evaluating whether a law is ready for digitisation; the government ensures that the EU s digital regulations guarantee to the greatest possible extent a level playing field for European and Danish companies. 3.2 Fewer digital burdens for SMEs Administrative burdens affect the entire business community, but small and medium-sized enterprises (SMEs) are hit extra hard. Denmark is unfortunately sliding down international ranking lists when it comes to administrative burdens. Denmark fell from 2013 to 2014 from 12th to 19th place on the list of OECD countries with the fewest administrative burdens. This development must not be ignored. 14

15 digital administrative burdens are at a minimum and where there is a particular focus on minimising SME s burdens; public IT solutions targeted towards companies are developed in dialogue with the business community and take SME s particular needs into account; digitisation is strengthened across the business community and authorities by breaking down SME s digital barriers and focusing on the digital potential and usage possibilities. 3.3 The best framework conditions in the world for digital entrepreneurs If Denmark has the ability to create the best framework conditions in the world for digital entrepreneurs, via dedicated entrepreneurial environments amongst other things, we can attract both national and international entrepreneurs and thereby create a strong ecosystem for digital entrepreneurs, who in turn can create growth and jobs in Denmark. Therefore, Denmark needs to have the best conditions in the world for digital entrepreneurs. IT entrepreneurial companies have the best framework conditions; there is continual work both nationally, regionally and locally to create attractive entrepreneurial environments in areas where Denmark holds strong positions. 3.4 World class IT competencies Competencies are a crucial competitive parameter for Denmark in a global world. Never before has there been a higher intake to IT education programmes in Denmark, however Danish IT companies still have difficulties recruiting IT employees with the right IT competencies. Therefore, we need to jointly ensure that the Danish workforce possesses world class IT competencies. IT competencies are integrated in all educational pathways, from primary school to post-secondary education and further education; 15

16 IT education programmes have the right product mix so that IT workforces, to the greatest possible extent, have competencies that match the needs on the IT job market e.g. a national advisory board could monitor and support education programmes; public IT research is on top internationally in relation to the proportion of the total share of IT research and where research often involves companies as a starting point; we are international leaders within information and communication technology research and have particularly strong positions within big data, mobility and IT security. 3.5 Denmark the first cashless society in the world A vision of a cashless society is no longer a distant thought due to increasing digitisation and digital payment solutions. A cashless society would have a range of benefits for Denmark and Danish companies and business owners. A cashless society would, however, require thorough considerations about privacy, security and payment options for challenged groups. there is an ambition to gradually work towards a cashless society as the first country in the world; experiences about the consequences of a cashless society, including privacy aspects for citizens and companies, are collected via limited pilot schemes; initiatives that can accommodate citizens wishes about privacy are implemented and where there is also access to basic digital payment instruments for everyone, including i n particular challenged groups. 16

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