Digital Divide: Social Profit Organisations Lag in Digital Transformation

The digital age has brought about significant advancements in various sectors, but one area that seems to be lagging behind is the social profit organisations (SPOs). A recent survey conducted by Hong Kong Broadband Network Group (HKBN) and The Social Investment Consultancy (TSIC) has revealed that 80% of SPOs rate their digitalisation at only 60% or below, indicating slow progress in digital transformation.

The survey, which focused on the digital transformation journey of ten large SPOs, identified key challenges and future needs in this sector. One of the major concerns is the severe imbalance in IT support, with an average ratio of nearly one IT personnel for every 200 general staff. Additionally, 60% of the SPOs cited insufficient technological skills among general staff, highlighting a critical shortage of IT talent and challenges in driving digital transformation.

Another significant barrier to digital transformation is insufficient funding, with 80% of the SPOs reporting a lack of additional financial resources for digital initiatives. On the other hand, SPOs are eager to digitise administrative processes, such as financial workflows, approvals, and report preparation, to enhance efficiency and attract younger talent. They also highlighted the need for upgrades to accounting and human resource management systems, including real-time dashboards, analytics, system integration, and e-rostering.

Sally Pang, Assistant Director of Hong Kong Christian Family Service Centre, stated, "SPOs need to manage vast amounts of data on members, volunteers, and event participants, as well as metrics such as service utilisation and event participation rates. Many SPOs aspire to leverage digital technology to optimise resource allocation, reduce administrative costs, and redirect their focus toward serving target audiences. Given that most donations are restricted for specific purposes, we urge the Government or charitable funds to provide more resources and support to help us keep pace with the business sector and achieve digital transformation."

Jackal Chau, Senior Vice President – Solutions and Service Delivery, HKBN Enterprise Solutions, said, "HKBN Enterprise Solutions is dedicated to supporting SPOs to achieve comprehensive digital transformation through our enterprise resources and technological capabilities. We recognise that SPOs face challenges with staffing and resource constraints, which is why we recommend a phased approach to digitalisation. A practical starting point is financial systems, as most organisational data is ultimately tied to finance. Additionally, in this era of rapid development in artificial intelligence (AI), HKBN can provide a range of best-fit solutions to make AI accessible and affordable for the social welfare sector. By integrating these technologies into their operations, SPOs can significantly enhance efficiency, and streamline data management, allowing them to focus on expanding and improving their services for the communities."

To promote digital inclusivity, HKBN established the HKBN SPO IT Club in 2023, offering voluntary services such as cybersecurity and IT training. Interested SPOs can email [email protected] to register for free consultation services and trial digital solutions. They can also conduct a free online assessment to evaluate their digital readiness at .

Insert a bar chart showing the percentage of SPOs rating their digitalisation at 60% or below

In conclusion, the digital transformation of SPOs is a critical challenge that needs to be addressed to ensure their long-term sustainability and effectiveness. By overcoming the barriers of IT support, skill gaps, and funding constraints, SPOs can harness the power of digital technology to enhance operational efficiency, elevate service quality, and remain resilient and responsive in an increasingly digital world.