Spain plans a push for digital transformation

On 16 February 2018 the Council of Ministers approved the creation of an inter-ministerial working group to draw up the Plan to boost the digital transformation of the Spanish economy. The document is to set out measures and instruments based on digital technologies that improve competitiveness and economic growth.

The group will be chaired by the Secretary of State for the Information Society and Digital Agenda and made up of nine ministries, including Economy, Finance, Employment, Education, Agriculture, Health and Public Works, plus the Prime Minister’s Economic Office. Its measures will be integrated into the Digital Strategy for a Smart Spain, which the Ministry of Energy, Tourism and Digital Agenda is preparing. The announcement is part of a broader effort by the administrations to push the digitalisation of companies and public services, although its impact will depend on how it is fleshed out.

What it is, and is not

It is worth understanding what has been approved: an agreement to create a coordination group, not a law or an aid programme. The group is to draw up a plan in which each department specifies the actions it is responsible for, with a timetable and the instruments it will use. It is, therefore, the first step in a process, not its outcome.

Coordination between ministries is the most practical part of the agreement. Digitalisation touches the tax authority, training, health, agriculture and infrastructure, and isolated measures can overlap or contradict each other. A common group aims to capture synergies and prevent each department from moving at its own pace. An inter-ministerial group can speed up or slow projects depending on how it coordinates; its success will depend on the plan specifying responsibilities, deadlines and budget, and on its measures reaching companies in a simple way.

Why it matters to companies

Digitalisation affects how companies sell, produce and administer, and those that adopt it faster tend to gain productivity. A public plan can translate, over time, into aid calls, training programmes, regulatory changes or new obligations to deal electronically with the administration. A plan of this kind may also include measures for the administrations themselves: simplifying procedures, offering more services electronically and making it easier for companies to deal with them paperlessly, which would save time and costs on both sides.

For a small business or a family company, the point is not to wait for the plan to be published before starting, but to know where it stands. Public measures tend to work better when the company has already made its diagnosis and knows which digital projects suit it and which do not. Digital plans usually also include training in digital skills, a key aspect: without people able to use the tools, technology investments lose effectiveness.

What to review

A simple exercise is to take a digital inventory: which processes are automated and which still depend on paper or spreadsheets; what data the company collects and how it protects it; which online sales channels it uses. From there it is easier to prioritise investments.

It is also worth following official calls and consulting an adviser before committing investment, because aid usually has strict requirements and deadlines. And do not forget data protection, which will have a new European framework from May. This information is general. Before applying for any aid, it is advisable to define what specific objective the digital project pursues, what saving or revenue is expected and how it will be measured, so that the investment answers a real need.

Digital transformation starts with knowing where each company stands.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.