From plan to ecosystem: the role of digital skills as a driver of the digital economy

By Subrah Krishnan-Harihara - Deputy Director of Research, Greater Manchester Chamber of Commerce. October 2023.

The adoption and utilisation of digital technologies contributes significantly to business efficiency, reducing operational costs and facilitating the development of new digitally enabled business models.

Technology, particularly, digital technology can also help organisations innovate and adopt a data-driven approach to decision making. As the use of technology within organisations matures, the resulting productivity enhancement could allow the business to start new services, expand operations and attract investment. This process, often referred to as digital transformation, tends to have a multiplier effect: as more businesses adopt digital transformation, they contribute to economic growth in their geography[1].Realising these benefits, however, is predicated on the availability of talent and skills.

Greater Manchester Chamber of Commerce has been developing the Local Skills Improvement Plan for Greater Manchester (GM LSIP). In developing the LSIP, we investigated the requirement and availability of digital skills. The message that came back from the businesses we engaged with (over 3,000) was clear: businesses in every sector require digital skills and many saw the future of their sectors as being heavily digitalised. In other words, the availability of talent plays a crucial role in developing a thriving digital ecosystem in the city region. This digital ecosystem comprises business representative organisations, learning providers, and of course, the businesses themselves.

Greater Manchester is home to start-ups, established technology companies and recent movers such as GCHQ. It is also home to four universities, ten colleges and numerous other training providers, who are, through collaboration with the Chamber and other stakeholders, contributing to sustaining the digital ecosystem by providing workforce development, upskilling, and nurturing the talent pipeline.

Through the GM LSIP, we have made numerous recommendations to further developing digital skills across the workforce. The prevalence of digital skills is closely related to the utilisation of digital technologies within organisations. Workers who possess the requisite digital skills play a successful role in adoption and implementation of digital technologies. And here, the network of skilled professionals gives our city region a significant advantage. The talent pipeline is thus not only an enabler of digital transformation in Greater Manchester, but it is also a driver of economic growth and a vital attribute that helps the city region attract investment.

To find out more about the GM LSIP, visit: www.gmlsip.co.uk. More information about Greater Manchester Chamber of Commerce can be found at: www.gmchamber.co.uk.

[1] Mićić,L., 2017. Digital transformation and its influence on GDP. ECONOMICS-INNOVATIVEAND ECONOMICS RESEARCH JOURNAL, 5(2), pp.135-147.