Lackluster technology investment among British enterprises has cost the economy billions, according to new research from Virgin Media O2 Business.
A study from the telecoms giant found that if UK-based firms had begun increasing their use of digital technology in 2021, they could’ve helped deliver a £111 billion increase in turnover by 2023.
Similarly, increased tech adoption between 2021 and 2023 could have created 676,000 new jobs, the study found, including over 313,000 new roles in small and medium-sized companies.
Nina Skero, CEO at Cebr, which carried out the survey on behalf of the firm, said the research findings underline the high stakes for both businesses and the broader UK economy.
"Our findings clearly illustrate how digital leadership is directly linked to higher turnover, increased productivity and better performance across every economic metric,” Skero said.
"By prioritizing cultivating a strong digital culture, organizations can unlock their full potential and drive sustained growth for the UK economy and wider society."
The report found that three-quarters of UK firms identify as having a “strong digital culture”, with enterprises using a wider array of technologies today than they were in 2021. Notably, 77% said they have increased technology spending across this period and virtually all identified operational benefits as a result.
However, fewer than half said they have implemented regular digital skills programs, only a third are increasing their use of collaboration tools and platforms, and only four-in-ten are implementing better data and cybersecurity measures.
Strong digital cultures deliver success
Workplace culture consultant Bruce Daisley said firms are “sitting on a huge opportunity” and must seize the initiative to capitalize on potential gains.
“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," said Daisley.
"This isn’t just about buying tools — it’s about integrating them effectively into everyday practices. Businesses have dazzling new opportunities to maximize their tech, but we’re seeing that many firms have been slow to implement permanent changes."
Companies with a strong digital culture typically embrace technologies and tools to boost performance and financial results at higher rates, helping to enhance customer and employee satisfaction, the study found.
Four-in-five organizations with a strong digital culture feel their workforce is well-prepared for the future, compared with only 43% of those with weaker digital cultures.
Organizations actively investing in digital solutions also saw turnover growth of 12%, compared with only 5% for the digital followers. Similarly, on average these firms more than doubled the productivity growth of those lagging in digital adoption.
Meanwhile, Gross Value Added (GVA) grew by 8% for digital leaders, while their peers saw no growth at all.
"Digital innovation has the power to spark economic and social progress," said Jo Bertram, managing director at Virgin Media O2 Business.
"By building a strong digital culture and embracing new tools, businesses can unlock an £111bn boost to the UK economy, creating new jobs and growth for companies across a range of sectors."
