It’s almost unfathomable, considering the seemingly infinite possibilities afforded to businesses through adopting emerging technologies, that the process of digital transformation could have stalled altogether in some UK firms in recent years.
But that is the suggestion of a recent report, which also found that if all British-based firms had increased their digital technology usage in 2021, the economy could have seen a boost in turnover in 2023 – to the tune of £111bn.
According to ‘The economic and social benefits of digitalisation’, published by Virgin Media O2 Business and Cebr, private-sector organisations that actively invested in digital solutions (‘digital leaders’) experienced 11.9% turnover growth between 2021 and 2023 – compared to only 5.6% for organisations that were not actively improving their digital capabilities (‘digital followers’).
On average, digital leaders in both the public and private sectors also experienced over twice the productivity growth of those lagging in digital adoption across 2021 to 2023.
Additionally, Gross Value Added (GVA) grew by 7.8% for those organisations, while their peers saw no growth at all on average which, as indicated in the report, illustrates digital adoption is not just a competitive advantage, but a crucial component of business success.
These findings also expose what the researchers call a “perception gap” between businesses’ confidence in their digital readiness and the reality of their digital progress.
Across all British-based firms surveyed, three in four (75%) of those that have not significantly increased their digital usage since 2021 nonetheless identify as having a “strong digital culture”.
The report reveals that more than four in five (81%) organisations that report having a strong digital culture feel their workforce is digitally well-prepared for the future, compared to just over two in five (43%) of those that report having weaker digital cultures. The report indicates that a strong digital culture “embraces” the tools needed to boost performance and financial results, and enhance customer and employee satisfaction.
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