Czech Republic Underutilizes Potential and Lags in Business Digitization

Despite 60 percent of Czechs possessing at least basic digital skills, which surpasses the European Union average of 54 percent, the country still lags in digitalization. This insight comes from a report published by the European Commission, emphasizing progress in digitalization.

In the case of the Czech Republic, the report highlights ambitions to become a key player in digital technologies while acknowledging the untapped potential. However, it notes that the country has recently been lagging in digitizing businesses.

According to the EC survey, 6 out of 10 Czechs possess basic digital skills, a slightly above-average within the Union. However, the report indicates that IT professionals constitute only 4.5 percent of the workforce.

The proportion of women in the Czech Republic is also low (10.9 percent) compared to the EU average of 18.9 percent. The shortage of specialists necessitates educational reforms within the Czech Republic.

Basic Digital Skills Outlined by the EU

Basic digital skills encompass information processing, communication, digital content creation, security, and problem-solving. The IT sector is expected to have 20 million specialists by now, with an equal gender ratio.

The development of digitalization is constrained by inadequate coverage of high-speed internet through optical connections. In contrast, 5G network coverage is above average within the EU.

According to the report, the Czech Republic lags in digitizing businesses, particularly in transitioning to data storage in cloud repositories and using artificial intelligence.

The EU targets its digital goals for 2030, aiming for at least 80 percent of the population to have basic skills. Online public services, including electronic access to health records and digital identification, should be a given.

Czech Republic Left Behind, Estonians Handle Nearly Everything Online, Says Ambassador

The EC report pointed out significant differences among countries. While the Netherlands and Finland approached the 79 percent mark of the digitally literate population in 2021, Romania, Poland, Bulgaria, and Italy had less than half of their adult population with digital skills.

In the Czech Republic, discussions about digitalization have long revolved around the inefficiency of public administration and bureaucratic excess. The Baltic states, where communication with authorities is primarily online, serve as inspiration.