Digital divide is holding back the UK economy
New research by business organization the CBI in conjunction with IBM shows that a digital divide is opening up across the British economy, with just over half (55 percent) of 'pioneer' firms adopting digital technologies and processes, while the remaining 45 percent are falling behind.
Despite the UK taking top place globally for e-commerce and fifth place for the availability of technology, it ranks only fourteenth in the world for company-level adoption of digital technology, with many companies struggling to digitize their businesses at the rate of peers in other countries.
Reasons for this are given as a lack of appropriate skills inside their business (42 percent of firms) and an unclear return on investment (33 percent). A huge 94 percent of companies believe digital technology can revolutionize the business landscape, driving productivity, growth and job creation, and almost three quarters (73 percent) see improved customer satisfaction and experience as its biggest benefit.
"Unlike previous technology shifts, digital is impacting the way we work, play and go about our daily lives. It also presents both a challenge and opportunity for every business - across all sizes and sectors," says David Stokes, chief executive of IBM UK and Ireland. "Digital offers not only the opportunity for much needed productivity gains alongside a new canvas upon which organizations can innovate to drive new levels of growth".
To take advantage of digital technology across the economy, the CBI recommends that companies should appoint a chief digital or technology officer to the senior executive team to drive digital strategy and execution. They should also increase the age and skills diversity of boards and board advisers, drawing on the expertise of a new generation of 'digital natives'.
Stokes adds, "As one of the leading digital economies in the world, the UK finds itself with a tremendous opportunity and responsibility for business leaders to sustain and grow our leadership in the world. This is an opportunity that we in the business community should be hugely excited to face together".
You can find out more about the development of the UK's digital economy on the CBI's website.
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