How Estonia Transformed into a Digital-first Society

by Seven Peaks on Feb 4, 2025 12:47:05 PM

While Estonia might not immediately come to mind when you think of digital transformation, you might find it surprising to learn that it was the first country in the world to ever create an online political voting system and offer e-residency to its people.

Since gaining independence from the USSR in 1991, Estonia’s leaders have worked towards becoming future-proof and economically dependent. This set Estonia on a path of rapid technological advancement, driving towards becoming a digital-first society.

Growing opportunities in a Digital-First Society

The 1996 Tiger Leap Initiative (Tiigrihüpe in native Estonian) was the government’s initial push towards a fully digitalised country. The nation-wide IT development program aimed to match standards in Europe and America by updating the local IT infrastructure and prioritizing computer skills in schools. The impact of digital transformation is reflected in Estonians' advanced digital literacy and greater business opportunities in the free market economy.

Group of Estonian children learning computer skills during the Tiger Leap Programme

A picture from the Tiger Leap programme from 1996- Jaan Künnap- Wikipedia

Today, Estonia has the highest numbers of startups per capita in Europe, at 1,090 startups per 1 million inhabitants. The country is also currently home to some of the most well known start-ups in the world, including Bolt, Wise, Skype, Playtech and Gelato.

The Benefits of a Truly Digital Society

Digital transformation initiatives dramatically improved Estonians’ standard of living, transforming the way public services and bank transactions work, and making technology an essential part of the economy and life in Estonia.

In 2000, the Estonian government adopted a law that declared internet access a basic human right. Two years later, the government kickstarted its e-identity program with e-ID, a form of digital identification that helps identify Estonian residents when using online services. This technology-enabled administration made it easier for Estonian business owners and entrepreneurs to start their businesses.

Demonstration of how to use a Estonian E-id to seemlessly connect to services

Demonstration of how to connect an Estonian e-ID to a laptop. Nordic Startup News

Estonia also saw highly accessible and online bank transaction services. Venture capital invested in Estonia-based startups skyrocketed, amounting to €2.6 billion between 2015 and 2021 – the highest figure in the Central and Eastern European region.

Unlimited access to digital resources also allows the Estonian government to work day and night with increased performance and higher efficiency. According to research by CVcheck, lower investments in resources meant that E-Estonia could save over 844 years of working time for Estonians every year while increasing its GDP 2% annually. More digital signatures are used in Estonia than in the rest of the EU put together.

Lessons from Estonia

So, what lessons can businesses in the private sector learns from the Estonian government’s successful digital transformation for its population of 1.3 million?

Embrace Change for Growth

Estonia’s desire to change motivated it to become one of the world’s most advanced technological societies.

Invest in Digital Awareness

Tiger Leap brought into focus the process of increasing digital literacy within the general population. Similarly, successful implementation of any digital solution necessitates training and buy-in from your employees – and even your existing customers.

Strengthen Your Infrastructure

Estonia focused on establishing a solid IT framework, which played a vital role in its development. Updating a company’s IT infrastructure ensures stability and readiness to adopt tomorrow’s tools.

Use Creativity to Your Advantage

Estonia leveraged creativity and outside-the-box thinking when building a true digital society. Apply the same open mindset in your business, and you’ll find that innovation will follow.

Seven Peaks software team discussing about the long term impact of projects

As seen in Estonia’s case, digital transformation is an intricate process that does not happen overnight. It can take a lot of hard work, organization, and motivation to navigate the journey to successful digital transformation.

Seven Peaks is a digital transformation driver that helps businesses achieve sustainable long-term growth through innovative digital solutions. Contact us today for a free consultancy.

Janar Michelson. Digital Marketing Intern at Seven Peaks Software

Janar is a student and entrepreneur from Estonia. He is a student finishing his studies at NHL Stenden, focusing on the field of Creative Business. Since joining Seven Peaks in September, Janar has became a proactive member of the Product Growth department, contributing to many projects including blogs, social media posts and events.

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