Given that digital is an area where the UK enjoys a significant advantage over our G7 peers, with the UK’s online retail surplus of £720 million, for example, greater than that of the US and Germany combined, promoting a digital growth must be a priority for the next Government.
Admittedly, in many respects the UK’s major political parties do recognise the important role that digital plays in driving efficiency gains across both the private and public sectors. The flexible working reforms introduced by the Coalition Government, for example, were forward-thinking and will go a long way towards raising awareness of the benefits of flexible working among large and small businesses and their employees. More recently, Labour’s Number One in Digital report outlined a comprehensive range of digitally-focused public and private sector reforms, demonstrating that the party’s thinking is heading in the right direction.
However, the scale of the digital opportunity facing Britain means that there is still more that can be done. Recent figures from the ONS show that UK productivity languishes nearly 27% below its G7 peers and 5% lower than pre-recession levels. Tackling latent inefficiencies, therefore, could have a huge impact on UK competitiveness.
Recent research we conducted with the CEBR shows that making better use of connected technology in particular could solve these disadvantages, potentially boosting our economy by £30 billion per year in the process. From giving staff the tools that allow them to work as they would at a desk, no matter where they are; to cutting overheads by downsizing the office in favour of remote working; there are ample opportunities for companies to work smarter.
At O2, we’re now offering the insights we have learned from our smarter working policies to public sector organisations too; as investment in technology can drive productivity gains and improve efficiency in any organisation. For example, last year we launched the Local Government Digital Fund, giving local authorities across the UK the opportunity to win O2 funding, technology and technical support to develop innovative technology solutions to local problems.
Given that 74 per cent of UK citizens own a smartphone, 50 per cent own a tablet, and 98% of the population will have access to 4G by 2017, businesses and government alike must recognise the opportunities digital presents. By outlining policies that emphasise this fact, politicians can create an environment in which digital truly becomes default across the economy. With the Autumn Statement fast approaching it’s essential that companies capitalise on the cost and productivity benefits that can be attributed to connected technology. Even small improvements, such as using smartphones, mobile apps, and cloud computing services, will help drive business and public sector productivity gains, restoring the UK’s competitiveness in Europe and beyond.
Image: Technology via Shutterstock
