Italy has been making significant strides towards achieving the Digital Decade targets and embracing digital transformation. While progress has been made in certain areas, there are still challenges that need to be addressed. In this blog post, we will explore Italy’s advancements in digital infrastructure, the digitalization of businesses, and the need for further efforts in updating advanced digital technologies and digitalizing public services.
Digital Infrastructure
Italy has shown progress in digital infrastructure, with a significant boost in investment through its Recovery and Resilience Plan (RRP). However, when it comes to fixed very high-capacity network (VHCN), Italy still lags behind the EU average, with only 54% of households having access compared to 73% in the EU. Despite a 10 percentage point increase between 2021 and 2022, there is still room for improvement in this area.
Digitalization of Businesses
Italian SMEs have demonstrated a commendable level of digital intensity, in line with the EU average. Around 70% of Italian SMEs have embraced digitalization, which is on par with the EU average of 69% in 2022. Notably, Italy outperforms the EU average in electronic invoicing, with 95% adoption in 2020. Additionally, there has been an 8 percentage point growth in SME turnover from e-commerce, reaching 36% in 2020. These figures indicate a positive trend in the digitalization of businesses in Italy.
Advanced Digital Technologies
While Italy has made significant progress in cloud computing, with 52% of enterprises using it in 2021 (well above the EU average of 34%), there is still work to be done in other advanced digital technologies. In 2020, only 9% of enterprises used big data, and in 2021, only 6% utilized AI. To stay competitive, Italy should focus on updating its advanced digital technologies and encourage greater adoption of big data and AI. Measures taken in the semiconductors technologies and quantum computing sectors are commendable and should continue to strengthen Italy’s position as a market player in these areas.
Digital Measures Already Achieved
Italy has already implemented several digital measures to support its digital transformation. These include the reform of ICT procurement, the adoption of a National Plan for New Skills, and the streamlining and acceleration of ICT procurement. Additionally, Italy has embraced the ‘Cloud First and Interoperability’ reform and has called for expressions of interest to select projects under the ‘Important Projects of Common European Interest.’ These initiatives showcase Italy’s commitment to digitalization.
Challenges in Digitalizing Public Services
While progress has been made in various digital areas, Italy needs to step up its efforts in digitalizing public services. There is a need for faster implementation of existing and planned measures to ensure that public services are efficiently and effectively digitized. By doing so, Italy can enhance citizen experience, improve government operations, and contribute to the overall digital transformation of the country.
Conclusion
Italy has made commendable progress in various aspects of digital transformation, including digital infrastructure and the digitalization of businesses. However, there are still challenges to overcome, particularly in updating advanced digital technologies and digitalizing public services. By addressing these challenges, Italy can further propel its digital transformation journey, ensuring a more connected and digitally empowered future for its citizens and businesses.