Real solutions to the crisis: Madrid On Rails, a pioneering innovation centre to bring technology closer to SMEs

There is always light at the end of the tunnel. At a time of deep crisis like the present, in which we need to change a production model that no longer works, it is important to note that it is not all problems. We still have many paths to explore. There are innovative and perfectly achievable proposals that can lead us to a new economic and social model that is much more sustainable, based on knowledge, on intellectual capital. This is the case of centres of technological excellence, true drivers of innovation and entrepreneurial capacity. That is precisely what we are going to talk about in today’s post. About the innovative responses that, together, we are capable of giving to the crisis.

Madrid On Rails is born

The Madrid City Council – with the support of the Avanza Plan – has just inaugurated Madrid On Rails, a pioneering innovation centre that will be responsible for bringing technology closer to small and medium-sized enterprises, one of the pending issues of our current production model. Madrid On Rails will develop free management programmes so that SMEs can carry out their work more efficiently, and will train companies that wish to do so in new technologies, with special attention to free software. The aim is to reduce the digital divide, and to ensure that SMEs – Madrid and non-Madrid – have all the means to be more competitive. This initiative takes on a very special value for several reasons: firstly, because it attacks one of the weak points of Spanish SMEs, such as the low implementation of new technologies; secondly, because investment in training and technology is a sine qua non condition for building a new production model that is much more competitive and sustainable, which will help us to overcome the current economic crisis; and finally, because Madrid On Rails is going to explore some paths for the future, such as those that the development of free software is opening up, to weave a real network of innovation that will undoubtedly bear fruit in the not too distant future. In summary, these are the results that we can expect: – Dissemination and extension of the use of new technologies – Development of management programs demanded by SMEs – Promotion of technological development communities – Creation of a highly innovative fabric, and with a great culture and entrepreneurial capacity

Diagnosing the digital divide

But why are Spanish small and medium-sized companies still so far from technology? There are several reasons. Let’s try to analyse them: to begin with, because of the price. We are still used to proprietary software programs, in which you pay for a license, and in which you have to pay for a new version every year. The answer that free software gives to this problem is definitive: free. Another problem for the adoption of new technologies is the complexity of traditional software, which seems designed for the needs of large companies. Small and medium-sized companies do not need programs that do thousands of things, but programs that do very well those things that are essential for the operation of the business: generate invoices, keep expenses, control sales, manage tasks… It is precisely in this type of application, used by 99% of SMEs, that Madrid On Rails has concentrated. The complexity of traditional software is not only in the use, but also in the installation and, above all, the maintenance of the different programs. The self-employed and small entrepreneurs cannot afford their own systems team to solve all the complications. Each technical requirement translates into a greater expense for the company. To solve this problem, Madrid On Rails is committed to Google’s philosophy, known as Software as a Service. According to this model, the programs are no longer on the user’s computer, but on a server that can be accessed whenever they want and from anywhere with a connection. The main advantage of Software as a Service is that the company that provides the service – in this case Madrid On Rails – takes care of maintenance, updates, and any problem that arises. It is no longer necessary to buy servers. No installation is necessary either. The program is on the Internet.

A path to move towards a more sustainable production model

As I have mentioned, the economic and financial crisis has plunged the world into a state of profound uncertainty. Political leaders have understood that, in this scenario, the role of public institutions is fundamental, and they have responded to the crisis with stimulus and reactivation measures. In Spain, the most important has been the injection of 8,000 million euros to municipalities to finance works of immediate execution. This is surely a very necessary measure, but limited to the short term and based, to a large extent, on recipes of the past: investment in bricks, asphalt and cement. This measure will have – and is already having – a positive effect on the economy, but on its own it will not manage to get us out of the crisis situation in which we find ourselves because it is not sustainable over time. Despite the urgency, we must be able to look a little further: it is on intellectual capital that we have to focus our actions. For this reason, initiatives such as Madrid On Rails can mark the most appropriate path.

Free software for public administrations

And perhaps we can go even further. If we dedicate part of this public investment to the creation of free software development centres, city councils could have real centres of innovation and knowledge. We would create a particularly dynamic intellectual fabric, which would immediately generate new business opportunities. The impact and scope of this proposal on the economy would be real and sustainable. It would allow us to escape from the brick and mortar economy to invest in the knowledge economy and intellectual capital. We would train and employ highly qualified personnel, we would place Spain in a position of advantage and relevance by betting on innovation, and we would contribute to the development of a free and open technological platform from which both SMEs and the public administrations themselves could immediately benefit. If these benefits are not convincing in themselves, we can consider another powerful effect on the economic system: the savings generated in software licences – especially within public administrations – and the generation of new markets and quality projects would allow this initiative to be financed. We are talking, therefore, about a real, economically sustainable, innovative and highly dynamic alternative.

A definitive boost to the knowledge society

If we decide to build a road, it is clear that we will be able to employ a significant number of workers. But the road is ending and, if we do not want these people to be unemployed again, we have no choice but to build another one. The problem is that not only the works are finished; so are the funds that we have allocated with so much effort to the construction of infrastructures. As we have already mentioned, the result is a one-off action in time and of limited scope. On the other hand, the commitment to knowledge endures, generates new opportunities that feed on themselves; it creates new markets, and builds the basis – intellectual and material – for subsequent innovations. We cannot forget that the essence of this new era is precisely the sharing of knowledge, and that in this field free software has extraordinary potential; it is the most genuine representative of the new paradigm we are living in. Thanks to the development of open software we can work and we can communicate on a free, efficient, secure, transparent, shared and independent platform. These are precisely the values that will define the new space full of opportunities that awaits us after the crisis. We cannot let problems cloud our vision. We may be closer to the solution than we think. We need to approach challenges with a new approach. By simply focusing our efforts properly, we can be at the forefront of knowledge. It is a great opportunity that we should not give up.