The success of Estonia’s digital strategy
Life in the Digital Society
Estonia’s success as a digital society has caused increased global reputation and engendered significant positive feedback. But what are the features of the information strategy that provide the small 1.3 million-country with considerable recognition and a competitive advantage?
Today’s world does not allow establishing a business strategy without technology, even from a country perspective. Countries need to adapt to and embrace this rapidly changing and evolving environment where reduction of administrative burden or elimination of red tape become key issues that governments need to tackle.
In this context, former Soviet republic Estonia emerges as a leader in digital strategy and transformation. In times where millennials increasingly foster work-life balance, the country has proven to be able to facilitate the life of its citizens, for instance by enabling them to vote from home. Moreover, a so-called “E-ID” allows citizens to access the state portal, which functions like one-stop-shop enabling users to access services ranging from public health duties to automobile or university procedures. Further, everything is linked by software called X-Road, making information collection and exchange possible with a handful of clicks.
However, I-voting and E-ID are not the only features of “E-estonia” that underline its digital strategy. Electricity providers have taken a ubiquitous big data approach, using advanced smart meters that allow them to verify customer consumption on an hour-by-hour basis. Then, by logging into a user-friendly online platform, customers can in turn see their detailed metering results and adjust their usage accordingly. They can even tell how much of their electricity is coming from renewable sources, and decide about how much green energy they would like to use.
Consequently, one can consider life of Estonian citizens to be almost entirely integrated by technology. Although I believe that other countries may have implemented a strategic digital positioning in some fields – I would for instance think of the healthcare sector in Great Britain – no other country appears to be as fully digitalized as Estonia.
Another example is the country’s cyber security infrastructure. As trust and security prevail to be tremendously important in a digitalized world, Estonia has heavily invested in cyber security infrastructure and therefore put in place state-of-the-art framework for cyber protection. Even more, the country is home of the NATO Cooperative Cyber Defence Center of Excellence. And there is a plethora of other examples including healthcare, education or online government services that do only reinforce why Estonia’s information strategy has provided a competitive advantage.
Estonia’s information strategy has aimed to ensure a reduction of administrative burden, but also to increase work-life balance and living standards of its inhabitants. Both features are critical for the millennials generation, a generation that values flexibility, efficient procedures and leisure time more than ever. As a result, I would like to emphasize that reduction of red tape should be a part of every country’s strategy. In this vein, Information technology is a highly valuable solution and needs to be taken into account.
However, there is another reason why “E-estonia” has turned into such a successful strategy. In a world where powers like the US or Russia demonstrate their wealth and influence, other nations have to find their niches in order to become competitive. Especially for small countries like Estonia, it remains critical to thoroughly investigate how they can differentiate themselves. Therefore, by aiming to establish a strategy of a digitally driven and transparent society, the Baltic state has found a way to prosper and to thrive, proving that implementing a niche strategy can become an excellent solution not only for a company, but also for a country.
Author: Hugo Krier