Digital divide holding back UK economy

Concern has been raised that a digital divide is opening up across the British economy.

Research by the Confederation of British Industry and consulting firm IBM found 55% of pioneering firms are adopting digital technologies and processes, while the other 45% are falling behind.

Despite the UK taking top place globally for e-commerce it is 14th for company-level adoption of digital technology.

Many companies are struggling to digitise their businesses at the rate of peers in other countries. They are mainly hindered by lack of appropriate skills inside their business and an unclear return on investment.

CBI director-general Carolyn Fairbairn said: “It’s vital that businesses in all sectors truly understand digital technology’s potential, from the boardroom to the shop or factory floor.”

She recommended firms appoint chief technology officers to build long-term digital strategies she considers critical to their future.