Virgin Media O2 Business and Cebr have today published a new report, ‘The economic and social benefits of digitalisation’, revealing the significant growth potential UK businesses have left untapped. The report highlights that if all British-based firms had increased their digital technology usage in 2021, the economy could have seen a staggering £111 billion boost in turnover by 2023.
Analysing the benefits of digitalisation, the findings expose a key challenge to unlocking digital growth: a perception gap between businesses’ confidence in their digital readiness and the reality of their digital progress. Across all British-based firms, three in four (75%) have not significantly increased their digital usage since 2021, yet they still identify as having a “strong digital culture.”
From culture to capital: Strong digital culture drives productivity
The report reveals over four in five (81%) organisations with a strong digital culture feel their workforce is well-prepared for the future, compared to just over two in five (43%) of those with weaker digital cultures. A strong digital culture embraces tools to boost performance and financial results, enhance customer and employee satisfaction, and create a positive societal impact.
Digital leaders—organisations actively investing in digital solutions—experienced 12% turnover growth, compared to only 5% for their counterparts. On average, they also more than doubled the productivity growth of those lagging in digital adoption. Additionally, Gross Value Added (GVA) grew by 8% for digital leaders, while their peers saw no growth at all. This illustrates digital culture is not just a competitive advantage, but a crucial component of business success.
Looking to the future
The shift to digital technology is not just an economic imperative—it has a broader societal impact. Increased tech adoption between 2021 and 2023 could have created 676,000 new jobs, including over 313,000 new roles in small and medium-sized companies. This demonstrates the potential of digital culturerive significant societal benefits through job creation and economic growth on a larger scale.
“UK organisations are sitting on a huge opportunity that’s waiting to be seized. The data shows that many businesses have already made significant investments in digital technology, but now they just need to put it to work by focusing on building a stronger digital culture,” said Bruce Daisley, named as one of the world’s top 10 voices on the future of work by LinkedIn and a leading authority on workplace culture. With a career running YouTube in the UK and serving as Twitter’s Vice President for Europe, the Middle East, and Africa, Bruce adds that: “This isn’t just about buying tools—it’s about integrating them effectively into everyday practices. Businesses have dazzling new opportunities to maximise their tech, but we’re seeing that many firms have been slow to implement permanent changes. Now is the moment!”
Jo Bertram, Managing Director at Virgin Media O2 Business, said: “Digital innovation has the power to spark economic and social progress. By building a strong digital culture and embracing new tools, businesses can unlock an £111bn boost to the UK economy, creating new jobs and growth for companies across a range of sectors. From hybrid working solutions to cutting-edge connectivity, Virgin Media O2 Business helps organisations of all sizes unlock their digital potential, finding the right solutions to connect their people and their customers.”
Nina Skero, CEO at Cebr comments: “We recognise the importance of our latest research in guiding UK organisations through the rapidly evolving digital landscape. Our findings clearly illustrate how digital leadership is directly linked to higher turnover, increased productivity and better performance across every economic metric. We encourage UK leaders to use this report as a guide to navigate the challenges and opportunities of a digital workplace. By prioritising cultivating a strong digital culture, organisations can unlock their full potential and drive sustained growth for the UK economy and wider society.”
To read the full report or learn more about how Virgin Media O2 Business can support digital change visit: https://www.virginmediao2business.co.uk/digital-culture/
ENDS
Notes to editors:
Cebr refer to those respondents who are actively increasing their use of digital technologies as ‘digital leaders’ and define organisations who are not actively improving their digital capabilities as ‘digital followers’.
About the report:
Cebr conducted a survey of 1,000 individuals in senior management positions with responsibilities for IT and/or finance; and conducted a series of interviews with Chief Technology/Innovation Officers of six UK organisations across the public and private sectors. In addition, select UK macroeconomic data was used in our economic analysis.