Can Norway become a digital developing country?

Is 1 euro saved on digitization 10 euros lost in lower value creation in 5 years? In that case, it is bad news for Norway.

The Norwegian economy is currently facing a period of uncertainty as evidenced by the lowest recorded level of financial confidence in the history of the Expectations Barometer, per Finans Norge. Consumers are becoming more cautious with their spending, leading to uncertainty for businesses that are now implementing cost-cutting measures to navigate the uncertain future.

One thing that is certain is the continuous progression of digitization in society. It is a certainty that companies should not overlook and investing in the development of new digital products and services in Norway is crucial for future success.

Why are not more companies investing in the development of new digital products and services in Norway to stay competitive and capitalize on the digital age?

Cause for concern

According to the Transformation Barometer released by Abelia in August 2022, Norway is falling behind in digitization and is at risk of losing its competitive edge and falling behind other industrialized countries.

The report shows a decline in the use of new technology and digitization in companies, resulting in a drop in ranking to 11th place, down from previous positions at the top. Furthermore, Norway is the worst in the Nordic region and 13th place internationally in terms of digitization of public services.

The current state of digitization in Norway is a cause for concern as it threatens the pace of innovation and competitiveness of Norwegian companies. Additionally, the lack of progress in digital transformation of the public sector, as evidenced by the elimination of the digitization minister position and the renaming of the Ministry responsible for digitizing public services, is a concerning indication of the government's priorities in this area.

The fourth industrial revolution

Leaders in both the public and private sectors must acknowledge that digital solutions and new technology are essential for future success. Investing in digitization across all industries is crucial for improving efficiency, maintaining competitiveness, and retaining customers.

The failure to recognize that we are in the midst of the fourth industrial revolution and the necessity to focus on new digital technology may lead to missed opportunities and long-term disadvantages.

Online shopping is a prime example of the changes brought on by digitization. According to Virke's forecast, November 2022 is expected to be the peak of online shopping ever. Retailers who invest in online platforms now will be better positioned to remain profitable and competitive, particularly against international competition.

Additionally, a new generation of "digital natives" is emerging as the primary consumer base in the near future, making it increasingly important for companies to adapt to digital commerce to avoid falling sales and the question of "why didn't we do more in online shopping?

Consumers are driving the push for digitization, demanding seamless, personalized, efficient, and secure digital experiences in all aspects of life, from shopping to studying, filing taxes, and applying for parental leave. They're in the forefront of disruptive innovation. Failure to keep up with the pace of digitalization could result in Norway falling behind other industrialized nations.

To answer the question posed earlier, every Euro saved on digitization may lead to a loss of 10 Euros in potential value creation within five years.