Recent research from e-skills UKhas
shown that making the most of technology could boost the UK economy
by £35bn over the next five to seven years, writes Karen Price,
CEO of e-skills UK. In England alone this equates to between
£1bn and £5bn per region, depending on the size and structure of
the regional economy. But it will only be achieved if we take
urgent action to improve our skills base and drive up the adoption
of technology by smaller firms.
Technology can
transform a small business. It has the power to improve
efficiency, enable new products and services, streamline supply
chains and enhance relationships with customers. It can help
smaller firms to reach out into global markets as easily as local
ones.
At e-skills UK, we quantified the potential impact on smaller
firms of introducing new technology. Our research found that for a
typical consultancy firm of 20 engineers, the introduction of
unified remote access to communications, documents and data could
boost productivity by 17% and turnove by 30%. In another example,
the introduction of online sales, ordering and payment processes to
a specialist manufacturing company could lift turnover by 40% and
global sales by 33%.
Yet many smaller firms find it difficult to know where to start
with IT. Our research found a number of significant barriers and
obstacles.
Barriers to adoption include a lack of awareness and
understanding of the potential benefits of technology among small
business managers and leaders. Often, they are unsure or
unconvinced about what is available and what it could do for them.
This problem can be exacerbated by limited access to suitably
qualified, local business advice.
A further obstacle is the lack of skills at all levels. IT
professionals, business leaders and the people who use the
technology in their everyday work all need the right skills to make
the most of IT. It can be challenging for smaller firms to identify
the skills that people need and to source appropriate training.
Lastly, with the escalating importance of the internet in
business, national and regional variations in digital connectivity
affect smaller firms. This could become a major disadvantage for
the UK as our international competitors move to introduce
ubiquitous high-speed broadband.
Overcoming these barriers is critical. We must ensure that
business decision makers have the skills and knowledge to introduce
new technology and support the company through IT-enabled change.
Tools such as e-skills UK's
Business IT Guide can help. Created by employers for employers,
the guide helps companies to understand what technology is relevant
to their organisation and supports them in taking any necessary
action. Already available in five English regions, with more to
follow, the online guide focuses on practical, user-friendly advice
that companies can easily implement.
Making the most of technology is the single most important step
the UK can take to improve productivity. For the UK's smaller firms
it can also make the difference between success and mere survival.
It is vital that we give them the support they need.
Karen Price is CEO of e-skills UK, the sector skills council
for IT and telecoms
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