Heart of the South West Digital Strategy Heart of the South West Digital Strategy Heart of the South West Digital Strategy Based on initial report prepared by Hatch Regeneris in November 2019 for Heart of the South West Local Enterprise Partnership February 2021 1 Heart of the South West Digital Strategy Table of Contents Executive Summary ...................................................................................................... 4 Introduction ................................................................................................................. 4 Why Digital? ................................................................................................................. 5 Vision and Strategic Priorities ....................................................................................... 5 Thematic Review .......................................................................................................... 6 Strategic Framework ................................................................................................... 10 1. Introduction ..................................................................................................... 11 A New Heart of the South West Digital Strategy .......................................................... 11 Introducing Heart of the South West ........................................................................... 12 Heart of the SW Economic Headlines .......................................................................... 13 Heart of the SW – Continued Growth and Evolution .................................................... 14 2. Why Digital? .................................................................................................... 16 Heart of the SW’s Productivity Challenge .................................................................... 18 Demand for Digital Technology ................................................................................... 19 Our Vision and Strategic Priorities ............................................................................... 20 Why Digital? The Strategic Imperative ........................................................................ 21 Role of Digital Technology in the Heart of the SW ....................................................... 28 3. Making the Case: Digital People ....................................................................... 30 Digitally Driven: Skills ................................................................................................. 30 Digitally Driven: Social Inclusion ................................................................................. 41 People: Strategic Imperative ....................................................................................... 44 4. Making the Case: Digital Business .................................................................... 46 2 Heart of the South West Digital Strategy Sector Implications ..................................................................................................... 47 Focus Sector: High Tech Engineering & Manufacturing ................................................ 48 Focus Sector: Clean Energy ............................................................................................ 51 Broad Sector: Digital Futures ......................................................................................... 55 Embeddedness of Digital Enterprise ............................................................................ 60 Enterprise and Innovation........................................................................................... 65 Business: Strategic Imperative .................................................................................... 67 5. Making the Case: Digital Infrastructure ............................................................ 68 Fixed Broadband......................................................................................................... 68 Digital Connectivity: Mobile ........................................................................................ 78 Infrastructure: Strategic Imperative ............................................................................ 82 6. Making the Case: Digital Places ........................................................................ 83 Digitally Driven: Growth and Regeneration ................................................................. 83 Digitally Driven: Public Sector Services .......................................................................... 88 Digitally Driven: Natural Environment ........................................................................... 91 Digitally Driven: Transport ............................................................................................. 94 Places: Strategic Imperative ........................................................................................ 96 7. Making the Case – Digital Assets and Projects .................................................. 97 Assets and Projects: Strategic Imperative .................................................................. 101 8. Case for Action – Delivery Framework ............................................................ 103 Strategic Framework ................................................................................................. 103 Appendix A - Consultation ........................................................................................ A-1 Appendix B - Supporting Evidence ............................................................................. B-1 3 Heart of the South West Digital Strategy Executive Summary Introduction This document presents a new Digital Strategy for the Heart of the South West, covering the period 2021-25. It sets out the narrative and foundation for a digital future across the area – one which is founded upon the ingredients that are key to thriving, technology-driven and productive places. Collectively, these factors will underpin an economy that is evolving, competitive and primed for growth. Critically too, the document provides the basis for delivering strategic imperatives set out within the National Industrial Strategy and both the Heart of the South West Productivity Strategy and Local Industrial Strategy, accelerating the growth of key sectors and boosting productivity. In the context of economies, institutions and communities which are undergoing rapid digital transformation, it is vital that the Heart of the South West is prepared to embrace digital technologies with a full understanding of their implications. This has been particularly highlighted during the Covid-19 pandemic, which has progressed the rate of digital transformation and adoption in businesses, dropped barriers to practices like remote working and shown that digital can be used to help businesses rapidly change traditional business models. However, it has also highlighted the digital divide across the country and the need for more work to be done to increase the availability of reliable digital connections and ensure people are able to develop their digital skills. A strategic response, encompassing both the private and public sector, is therefore important to ensure the challenges most likely to hold back the Heart of the South West are addressed and the most prominent opportunities fully exploited. The rationale for the development of a Digital Strategy is predicated on: • The Heart of the SW’s ambition to be a digital leader: demonstrating exemplar digital application and adoption in an urban and rural context. • The background of national, regional and local policy: places considerable emphasis on digital transformation and the importance of technology. • The need to validate investments made in digital infrastructure: as the cornerstone to a flourishing and competitive economy. • The opportunity to build on strong existing digital characteristics: these are key to the Heart of the SW’s comparative advantages and distinctiveness. • The need to fully exploit a digitised economy: of growing importance in a local context, as technology drives new forms of economic value. • The value of understanding how locally important sectors interface with technology: knowing how this is applied in the present and firms’ future digital needs. • The chance to showcase wider digital technology importance: with respect to how it is influencing the prospects of people and shaping places. • The opportunity to crystallise digital strengths and weaknesses: setting out the rationale for intervention and prioritisation of the Heart of the SW resources. 4 Heart of the South West Digital Strategy Why Digital? The concept of digital has many connotations and means different things to different audiences. Regardless of the preferred definition, digital transformation is increasingly ubiquitous and touches on almost every aspect of daily life. Technology has, and continues to have, a transformational impact on society, with the pace of change ever-increasing. This has led to new applications, the ability to access information immediately, established truly global connections, driven new forms of economic value, and allowed transactions and services to be delivered in a virtual space. The opportunities from this are significant, such as improving public services, progressing environmental sustainability, enabling an efficient and sustainable transport system, and helping to increase the democratisation of societies. The digitised economy is making a growing contribution