The UK economy could receive a boost of more than £90 billion if companies fully develop their digital potential, a new report claims.
Research from Oxford Economics and Virgin Media Business suggests that continuing to increase the use of digital capabilities such as online collaboration and improving technology infrastructures could give an economic boost of £92 billion – equivalent to 2.5% of GDP.
The study claims that in the last year, UK companies have increased their revenues by 4.4%, and reduced costs by 4.3%, as a result of adopting more technology.
This has added up to £123 billion in extra revenue. The research also claims that up to a million new jobs will be created over the next two years because of enhanced digital capabilities.
It now calls on companies to continue this growth. The report, The UK’s £92 billion Digital Opportunity, is being formally launched at the Broadband World Forum in London.
Digital economy minister Ed Vaizey said of the findings: “The significant digital opportunity for businesses of all types and the economy as a whole is one that we can’t ignore.
“Government will continue working alongside companies like Virgin Media to transform the UK’s digital capabilities and laying the foundations for a thriving, digitally-led future.”
Interviews with senior executives at more than 1,000 UK-based companies were carried out to compile the research.
Peter Kelly, managing director of Virgin Media Business, said: “Digital technologies are transforming the face of business and the wider UK economy, and it’s clear that all UK companies see the huge potential that digital has for growth.
“However, the incredible pace of change means there is no place to hide, or room to stand still. Any business with ambitions to grow through digital needs to invest in the right technology and skills, while the government and industry have to deliver the infrastructure and support to help them.”