The UK economy could receive a £100bn boost if businesses were to more widely adopt proven technologies like the cloud, e-purchasing, and mobile technology.
That is according to a report released today by the Confederation of British Industry (CBI), which argues failure to do this is largely responsible for the country’s sluggish productivity in recent decades.
It highlights how 69% of UK firms are at the lower end of the productivity scale, compared with 65% in France and 60% in Germany, while nearly 30% fewer had adopted cloud computing than Europe’s top performers in 2015.
“Too many firms are missing out on what’s right under their nose,” CBI director-general, Carolyn Fairbairn, said. “Failing to adopt the nuts and bolts technology of today is leaving a yawning gap in productivity.”
The CBI report reveals “striking” productivity differences between firms, with just 5% of the workforce employed by the high-fliers of UK business, leading to vast variations in wages and living standards.
In addition to providing a boost to the economy, it was found that a higher take-up of readily available technologies, along with better management practices, could reduce income inequality by 5%.
However, the findings show the proportion of businesses with e-purchasing, customer relationship management, and enterprise resource planning systems in the UK are still below the levels seen in Demark almost a decade ago.
It was also found that Britain has larger differences in management quality between its top and bottom firms than any other G7 country, with the scores of the best performing companies 1.7 times higher than the worst ones.
In addition, the research shows that the UK’s top 100 exporters account for approximately half of Britain’s export value, while in Germany they account for just 38%.
“Ultimately, getting better at diffusion of key technologies and innovation is one of the missing links in solving the UK’s productivity puzzle and should be made a national priority,” Fairbairn continued.
“The new industrial strategy is the perfect opportunity to address this blind spot in public policy. It must allocate funds to support businesses to adopt these readily available practices and technologies.”
An increasing reliance on data and IT systems has seen cyber incidents shoot to the top of the most pressing risks facing businesses worldwide, research by Allianz has uncovered.
17 January 2020
The majority of risk managers worldwide cannot adequately assess the threats posed by new technologies, research by Accenture has found.
10 December 2019
Financial institutions will save $7bn (£5.43bn) by 2024 thanks to blockchain technology and the automation of customer checks, a market research firm has predicted.
05 November 2019
Why InsurTech? A Pressured Insurance Value Chain
By Andrew Sagon, Andrew Johnston and Matthew Wong
InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.
Nimbleness and agility will unlock potential
By Elinor Friedman, Andrew Harley and Klayton Southwood
Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.
Driven by technology, toolkits and talent
By Claudine Modlin and Graham Wright
Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.
Risk transfer is part of a comprehensive solution
By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood
Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.