There is a shortage of experienced professionals to meet the demand for digitalisation

We are witnessing a profound paradigm shift in management models, in both the private and public sectors. The urgent need to digitise all areas of the economy calls for IT professionals with extensive knowledge and executive skills; Javier Alvarado is a prime example of this. With over 30 years’ experience implementing and developing projects internationally, he is well acquainted with the demanding world of interim management and has delivered projects using this service model, achieving excellent results both individually and through his leadership of multidisciplinary teams.

Madrid, 21 March 2023

You have recently provided an IT project management service for an international company through EPUNTO Interim Management. How was your experience as an interim manager?

The first thing that springs to mind is that it has been a very rewarding experience, working with top-class professionals and enjoying the opportunity to contribute alongside them. We have spent many years helping companies with their digital transformation. Large companies operate globally; they have specialists in different cities across different time zones and must find the best solution to a company-wide problem. That is why the services provided by an interim management firm – with experts in specific professional fields, namely interim managers – offer solutions and consistency to resolve any situation, however complex it may be. As interim managers, we have worked on many projects and know how challenging it is to undertake digital transformation of processes. Companies need professionals with knowledge and experience, and these must align with the company’s culture; if either party does not function correctly, the transition will face many problems.

What is your view on this model of transitional management services?

I believe that interim management is an extremely useful model of management services for resolving specific complex situations without overburdening a company’s structure. The agility and flexibility offered by this approach provide a rapid and highly effective response for the implementation of strategic projects.

What is your view on how the Spanish business community is tackling this accelerated process of digitalisation? Is it managing to pass this unique stress test?

A. Spanish companies are progressing at different speeds. On the one hand, there are the large multinationals that have been implementing digitalisation processes for many years and have reached a high level of maturity; however, technology is constantly changing and improving, and they must keep pace. This drives us to constantly strive for excellence. Then there are the medium-sized companies that find change very difficult, because technology is expensive and their level of development is intermediate; they operate somewhere between the analogue and digital worlds, and this must reflect the balance of their market. Finally, there are small businesses which, essentially, use a website; some have an online shop; and very few manage to provide adequate customer service, let alone integration with their suppliers.

As for the EU’s Next Generation Funds, are they being channelled effectively into the IT sector, and are they reaching businesses? Are they acting as the driving force behind ‘recovery and resilience’, which is what they were created for in July 2020 by the European Council in response to the effects of the Covid-19 pandemic?

It is a shame, but I believe these funds are not reaching the IT sector effectively, for several reasons. One of them is that the government does not have the appropriate channels to enable businesses to manage these funds swiftly and efficiently. For this reason, intermediary services and specialised firms have sprung up to act as a bridge between applicants and public authorities, solely to process the grants, which slows down and increases the cost of the process by which the funds reach businesses. The effectiveness of this aid is also affected by the fact that digital transformation requires experienced professionals, and there aren’t many of them. Experience is gained through years of work, and this clashes with two trends in today’s businesses: age discrimination and low wages. Furthermore, experienced professionals can work remotely for any country and choose the projects that best suit us. In short, there is a shortage of professionals to meet the demand for digitalisation services. Finally, for most companies – which are small and medium-sized – digital transformation is not simply about having a website and an online shop; it is much more than that. It means moving towards automating all their processes and ensuring integration between their suppliers, the company and its customers. However, they lack the qualified professionals to carry out these projects.

What is the view of an expert such as yourself on AI and other digital technology enablers? Are society, businesses and institutions prepared to adapt to them and harness their full potential?

For me, AI is a very powerful tool that can help us achieve objectives in much shorter timeframes, and I’ll give a few examples to illustrate this. A long time ago, accountants used to add up columns of numbers by hand, but then the calculator came along and transformed that way of working. Later on, university students and researchers had to go to libraries to find information; with the internet, everything is just a click away. Now, with AI, the knowledge of many people is already available; this can be shared and utilised to find new solutions.

I believe that society is not yet ready to harness the full potential of AI. This process requires time to mature and become part of our everyday lives; in fact, there are still people who do not use the internet, although, fortunately, as time goes on, their numbers are dwindling.

There is another aspect of AI I’d like to highlight, and that is that some jobs will disappear because they will no longer be useful or add value; but we mustn’t be afraid – it’s a fact of life in the professional and business world; it’s always been that way. When cars first appeared, horse-drawn carriages disappeared; online information is replacing physical books, newspapers and even television. On the other hand, new professions are emerging that are necessary, such as specialists in retrieving relevant information and specialists in processing unstructured data, etc. And new professions will continue to emerge – ones we do not yet know the nature of – which will be created as a result of these new technologies.