General details
EDIHs involved
Challenges
The primary challenge was to secure funding aimed at advancing the digitalisation of 500 small and medium-sized enterprises (SMEs), with a focus on achieving a significant enhancement in their digital maturity, as measured by the DESI2019 (Digital Economy and Society Index) indicators. It was essential that the funding be tailored to the actual needs of these SMEs to ensure effective and impactful outcomes. A secondary challenge involved accurately identifying these digital needs, given the limited availability of IT experts in the region and nationally, who are trained to evaluate the digital maturity of SMEs. Additionally, many SMEs had a limited understanding of digitalisation and how to approach it, further complicating efforts to diagnose and address their specific requirements effectively.
Solutions
To address the challenges, a comprehensive approach combining outreach, assessment, and funding was implemented:
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Digitalisation Outreach Caravan: The European Digital Innovation Hub (EDIH-DIZ), in partnership with the Management Authority (MA) and the World Bank (WB), launched a regional caravan that toured all six districts. This initiative started in major cities and extended to rural areas, promoting the concept of digitalisation and demonstrating potential digital solutions that SMEs could adopt with the aid of public funding.
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Digital Feasibility Study Requirement: As a prerequisite for funding applications, SMEs were required to submit a Digital Feasibility Study. This study, which could be developed by either EDIH-DIZ or an accredited IT company, was a key component detailed in the Applicant’s Guide. It ensured that the proposed digitalisation efforts were grounded in a thorough understanding of each SME’s unique needs and opportunities.
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Expert Evaluation and Tailored Funding: Funding was allocated based on the genuine digital needs identified through these feasibility studies. EDIH-DIZ experts, along with IT specialists trained by EDIH-DIZ in collaboration with the Management Authority and the World Bank, evaluated each application. This process guaranteed that the funds were used effectively to address the specific digital requirements of the SMEs.
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Ongoing Impact Monitoring: The impact of the funding on the digital maturity of the SMEs was monitored and assessed annually. This was done using a standardized assessment tool provided by the World Bank, ensuring consistent and objective measurement of progress over time.
Results and Benefits
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Successful Funding and Project Implementation: Out of the 500 SMEs that applied, approximately 400 received funding. Each funded project could access up to 100,000 EUR, with a requirement for the SME to contribute a 10% co-funding. This high level of funding success indicates that the Digital Feasibility Studies were well-prepared and met the rigorous evaluation criteria, enabling these SMEs to secure the necessary resources for their digital transformation projects.
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Development of Evaluation Expertise: As part of the initiative, the region developed the essential expertise needed to assess the digital maturity of companies. This capacity-building effort was crucial for the evaluation process and will continue to benefit the regional market by providing a solid foundation for future digitalisation assessments and support.
Perceived social/economic impact
Out of the 500 SMEs selected, approximately 400 received funding, each eligible for a maximum amount of 100,000 EUR per project, with a 10% co-funding requirement from the SMEs. Notably, a higher number of SMEs in the North-East Region secured funding compared to other regions.
Enhanced Impact Insight:
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Economic Stimulus for SMEs: The significant funding allocation has empowered these 400 SMEs to undertake crucial digitalisation endeavors, driving economic growth and innovation within their respective sectors..
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Regional Development Dynamics: The disproportionate funding distribution favoring the North-East Region signifies a targeted effort to catalyze economic development in this area.
Measurable data
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Campaign Reach and Engagement:
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The information and awareness campaign successfully targeted over 5,000 companies.
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Pre-Selection for Funding:
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Following the campaign, 1,200 companies submitted self-assessment reports to qualify for pre-selection for funding.
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Selection Process:
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Through a randomized selection process, 519 SMEs were chosen for further consideration.
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Funding Application and Assistance:
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Out of the 519 selected SMEs, 400 applied for funding.
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Ultimately, 130 SMEs received assistance from EDIH-DIZ to develop their Digital Feasibility Studies.
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Lessons learned
Do's
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Raise awareness among potential beneficiaries about the digital solutions that might help them improve their digital maturity level and how digitalisation may impact their businesses.
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The Digital Feasibility Study is a very important instrument for analysing the needs of the applicants and it must be elaborated by trained experts in a standardise approach.
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Before lunching a call for digitalisation make sure there is the necessary expertise on the market or train the market.
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The collaboration between the Management Authority and the EDIH assured the succes of the action because EDIH not only elaborated good Digital Feasibility Studies but also delivered trainings for other IT experts. This way, the Management Authority made sure that all the 500 SMEs preselected for the funding were able to find the necessary expertise on the market.
Don'ts
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Launch a call before you evaluate the market and make sure you have experts able to evaluate the needs assessment of the SMEs (applicants).
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Assume that the applicants know their digital needs.
The Benefits of the collaboration
The EEN local contact point collaborated closely to orchestrate promotional activities and engage potential beneficiaries of the call, leveraging collective expertise and networks for broader outreach and enhanced support.
Lessons learned – do’s and don’ts of the collaboration
Do's
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Collaborate Strategically:
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Partnership Impact: The collaboration between the Management Authority, EEN, and EDIH-DIZ broadened the reach to SMEs effectively.
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Trusted Delivery: EDIH-DIZ, as a recognized and not-for-profit entity, delivered high-quality Digital Feasibility Studies tailored to SME needs.
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Align with Stakeholder Goals:
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Focus on Needs: EDIH-DIZ prioritized addressing the real needs of SMEs, ensuring the feasibility studies were valuable and practical.
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Ensure Quality: Choosing a reputable partner like EDIH-DIZ ensured the studies met high standards.
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Don'ts
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Avoid Bureaucratic Hurdles:
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Institutional Barriers: The lack of a direct collaboration framework between the Management Authority and EDIH-DIZ complicated the process.
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Quality Issues: Without direct collaboration, some IT companies produced substandard studies that didn't pass evaluation.
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Select Qualified Partners:
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Partner Vetting: Ensure all partners are thoroughly vetted and capable to maintain quality.
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Maintain Standards: Implement strong oversight to guarantee the integrity and quality of all feasibility studies.
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Other Information
This is a very relevant good practice experience of the collaboration between a Management Authority and an EDIH that helped SMEs reach the funding opportunity. Digitalisation funding opportunity are still hard to approach for the SMEs for their lack of understanding of the digitalisation.
There for, EDIH-DIZ had an important role in:
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Creating awareness on the digital solutions existing on the market and the way they can improve the performance of a company
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Delivering competences for the IT experts that wanted to elaborate feasibility studies
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Delivering digital feasibility studies
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