£111bn! That’s how much a new report has claimed the UK economy has missed out on from not exploiting digitalisation.
Virgin Media O2 Business and Cebr have today published a new 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 £111bn boost in turnover by 2023.
Across all British-based firms, three in four have not significantly increased their digital usage since 2021, yet they still identify as having a ‘strong digital culture’.
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.
Increased tech adoption between 2021 and 2023 could have created 676,000 new jobs, including over 313,000 new roles in small and medium-sized companies.
Bestselling author and technology commentator Bruce Daisley said: “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.
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“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 (pictured), managing director at Virgin Media O2 Business, said: “There’s a £111bn boost to the UK economy to be unlocked for those organisations who build strong digital cultures, where technology underpins the way people connect and collaborate with colleagues and customers to drive business outcomes.”
Nina Skero, CEO at Cebr, added: “Our findings clearly illustrate how digital leadership is directly linked to higher turnover, increased productivity and better performance across every economic metric.
The findings are based on a survey Cebr conducted with 1,000 individuals in senior management positions with responsibilities for IT and/or finance; and conducted a series of interviews with Chief Technology/Innovation Officers of six UK organisations across the public and private sectors.
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