Nov 14, 2017

Businesses missing out on billions by not adopting new tech

The Confederation of British Industry (CBI) published a new report, entitled “From ostrich to magpie”, revealing that UK companies could make £100 billion “in extra economic growth” by investing in new technology.

 

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Tech affects productivity

The CBI’s report points out that there is a correlation between the low use of technology and productivity problems in UK businesses. The differences in business productivity have an impact on wages, opportunities and living standards. Furthermore, failure to invest in cloud, mobile, e-purchasing and cybersecurity leads to companies struggling to embrace new expertise, attempt exporting their products or allocate a budget solely towards innovation.

Ostriches and magpies

A major part of the report argues that UK businesses should behave like ‘magpies’ rather than ‘ostriches’.

Magpies, according to the report, have the skill and will to adopt new ideas and technologies, resulting in increased productivity and pay.

Ostriches, according to the report, stick to what they know. They are not interested in new methods and improvement and simply stick to their old ways.

In other words, if businesses want to be successful at improving productivity by adopting the latest technology and management practices, they have to have the skill and will to do so.

The UK is behind many nations

Although there are UK businesses that are competitive on a global scale, they only employ 5% of the British workforce. The CBI’s report reveals that the majority of UK companies are less productive than other countries. The majority of UK firms are located at the lower end of the productivity scale at 69%, with France at 65% and Germany at 60%.

A striking find is that the UK is almost a decade behind Denmark when it comes to the proportion of businesses utilising technology such as e-purchasing, Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP).

For more details, access the report from the CBI website.

 

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