This report focuses on the relationship between the management of new technology and productivity, in particular, the extent of education and training in the West Midlands that might support managers in the region to better lever the potential productivity gains of this new technology.

Productivity in the UK is a concern because it is generally lower than its main international competitors and the gap has widened. New technology is generally seen as a mechanism for improving productivity but anticipated outcomes have not been fully realised. The report assesses high education institutions (HEIs), further education (FE) colleges and independent training providers (ITPs) provision of education and training and presents findings from a series of employer interviews.

Key findings

• Successfully investing in new technology requires the integration– primarily by management– of the technical and social aspects within any organisation
• New technology, productivity and management skills are interrelated. New technology has not achieved the anticipated productivity gains because there has been a focus on new technology itself rather than how it is selected and implemented within the context of the organisation
• Some management training and business support is available to inculcate these skills, but there is generally low take-up (especially amongst SMEs where the productivity gap is greatest)
• West Midland service sector SMEs in particular do not seem to be well served with support for the development of
  management skills necessary to ensure successful adoption of new technology
• Small firms in the West Midlands struggle to develop strategic approaches to the implementation of new technology and the requisite management skills
• A strategic approach to both new technology investments and management skills development resulted in more straightforward implementation and better outcomes

Recommendations

1. More and better provision of new technology implementation management skills
2. Delivery of such management skills needs to be demand responsive and tailored to the firm’s needs
3. Consider WMCA’s adult skills investments as a source of funding to develop provision
4. Encourage firms to adopt a 'business, not technology' approach, centering the business' goals and context
5. Make available, and encourage, business support programmes to disseminate findings on the benefits of training to manage technologies
6. Consider developing a regional ecosystem approach to the management skills for implementing new technology