If all British-based firms had increased their digital technology usage in 2021, the economy could have seen a staggering £111 billion boost in turnover by 2023, according to a report from Virgin Media O2 Business and Cebr.
The report’s findings, ‘The economic and social benefits of digitalisation’, exposed 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% have not significantly increased their digital usage since 2021, yet they still identify as having a ‘strong digital culture.’
The report reveals 81% of organisations with a strong digital culture feel their workforce is well-prepared for the future, compared to just 43% 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% turnover growth, compared to only 5% for their counterparts. On average, they also more than doubled the productivity growth of those lagging in digital adoption. Additionally, gross value added grew by 8% 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.
The shift to digital technology is not just an economic imperative, it has a broader societal impact. Increased tech adoption between 2021 and 2023 could have created 676,000 new jobs, including more than 313,000 new roles in small and medium-sized companies. This demonstrates the potential of digital culture to drive significant societal benefits through job creation and economic growth on a larger scale.
“There’s a £111 billion 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,” said Jo Bertram, managing director at Virgin Media O2 Business.
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. We encourage UK leaders to use this report as a guide to navigate the challenges and opportunities of a digital workplace. By prioritising cultivating a strong digital culture, organisations can unlock their full potential and drive sustained growth for the UK economy and wider society.”
