Dutch boardrooms are the most tech-savvy in Europe

According to a new report published by Accenture, businesses and organizations in the Netherlands have the most tech-savvy boardrooms across Europe.

The study showed that in Europe, only 14% of board members at large European businesses and organizations have the expertise to drive technological and digital business strategies compared to 22% in North America and 19.1% in the Netherlands. The study does not clarify why this is the case, i.e., why Dutch board members are more tech-savvy than their European peers.

A recent study by Netherlands Statistics (CBS) and Eurostat did show that the Netherlands tops the European ranking for countries with the largest share of inhabitants proficient in digital skills. Already in 2021, approximately 80% of the Dutch population aged between 16-74 years had basic or above basic overall digital skills compared to the European 54% average.

The Digital Economy and Society Index (DESI) ranks the Netherlands 3^rd out of 27 EU Member States in its 2022 edition, with the European Commission’s report describing the country as a consistent top performer in various categories, including integration of digital technologies, connectivity, basic and above basic digital skills. The country is also a heavy investor in digital transition through its National Growth Fund, which will invest EUR 20 billion over the next few years in innovation, research, and knowledge development. In 2021, it invested EUR 960 million in digital transition-oriented projects covering quantum computing, artificial intelligence (AI), and data usage in healthcare.

There are significant benefits for large businesses and organizations’ digital transformation initiatives when dealing with boardroom members that understand the impact of technology and digital solutions. This can, for example, enable a smoother journey in harnessing the potential of technology but also drive continuous innovation with support from the top, sending a strong message to the rest of the organization. Without top management support, it becomes much harder to drive technological and digital business strategies successfully and without resistance.

Despite the Netherlands leading in tech-savvy board members, the country struggles with IT challenges such as the shortage of skilled IT professionals.

Statistics Netherlands showed that in 2022 there were over 90,000 IT vacancies, an increase over the 88,000 vacancies in 2021. This shortage leads to increased IT provider competition, team grabs, and IT project and RFP delays, with IT providers being at capacity or lacking the right skills. For businesses, this also means continuous pressure on IT operations, delays in cost reduction through technology or process efficiencies projects.

PAC’s upcoming 2023 CxO Investment Priorities Report for the Netherlands confirms that the IT shortage is a significant bottleneck, with 36% of CxOs surveyed stating it as a major IT challenge. However, when asked about the lack of support from top management in, e.g., data analytics projects, 50% stated it to be a minor challenge, while only 20% cited it as a major challenge. Compared to a couple of other European countries, 30% of UK CxOs stated it as a major challenge, with 40% in France also categorizing it as a major challenge.

Stay tuned to find out more Dutch CxO Investment Priorities insights.