Report: Economy missed £111bn from digital tech adoption
November 13, 2024
Virgin Media O2 Business and Cebr have published a report, The economic and social benefits of digitalisation, revealing the significant growth potential UK businesses have left untapped. The report highlights that if all British-based firms had increased their digital technology usage in 2021, the economy could have seen a huge £111 billion (€133.2bn) boost in turnover by 2023.
Analysing the benefits of digitalisation, the findings expose a key challenge to unlocking digital growth: a perception gap between businesses’ confidence in their digital readiness and the reality of their digital progress. Across all British-based firms, 75 per cent have not significantly increased their digital usage since 2021, yet they still identify as having a “strong digital culture”.
The report reveals over four in five (81 per cent) organisations with a strong digital culture feel their workforce is well-prepared for the future, compared to just over two in five (43 per cent) of those with weaker digital cultures. A strong digital culture embraces tools to boost performance and financial results, enhance customer and employee satisfaction, and create a positive societal impact.Digital leaders—organisations actively investing in digital solutions—experienced 12 per cent turnover growth, compared to only 5 per cent for their counterparts. On average, they also more than doubled the productivity growth of those lagging in digital adoption. Additionally, Gross Value Added (GVA) grew by 8 per cent for digital leaders, while their peers saw no growth at all. This illustrates digital culture is not just a competitive advantage, but a crucial component of business success.
Looking to the future
“UK organisations are sitting on a huge opportunity that’s waiting to be seized. The data shows that many businesses have already made significant investments in digital technology, but now they just need to put it to work by focusing on building a stronger digital culture,” commented Bruce Daisley, a leading authority on workplace culture. “This isn’t just about buying tools—it’s about integrating them effectively into everyday practices. Businesses have dazzling new opportunities to maximise their tech, but we’re seeing that many firms have been slow to implement permanent changes. Now is the moment.”
Jo Bertram, Managing Director at Virgin Media O2 Business, said: “Digital innovation has the power to spark economic and social progress. By building a strong digital culture and embracing new tools, businesses can unlock an £111 billion boost to the UK economy, creating new jobs and growth for companies across a range of sectors. From hybrid working solutions to cutting-edge connectivity, Virgin Media O2 Business helps organisations of all sizes unlock their digital potential, finding the right solutions to connect their people and their customers.”