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• DTI 2003 International Benchmarking Study

DTI 2003 International Benchmarking Study

The DTI recently published their 2003 International Benchmarking Study (IBS). The IBS is the principle means through which the UK Government assesses the degree to which business have embraced the full range of information and communications technologies available to them, and how this compares to our international neighbours.

The IBS for 2003 is based on results and analysis from a survey of over 8000 businesses, 3000 of which are UK-based, and approximately 5000 from other nations.

In his summary statement, Stephen Timms, the Minister of State for Energy, e-Commerce and Postal Services, noted that the UK is progressing well in a number of key areas relative to benchmarked nations. For example, the UK has the highest proportion of documented IT strategies, business confidence in IT skills is growing, and the take-up of broadband is progressing rapidly. On the other hand, there is widening gap between small and large businesses with regard to the deployment of Information and Communication Technology (ICT) and the degree of sophistication with which this is approached and implemented.

The report states that the responses received by businesses in the survey indicate that participants are now more realistic about the potential for business benefits to be achieved through ICT, although among smaller business there is a degree of caution and this has become a more significant factor since the report published in 2002. In fact it is noted that smaller businesses face several hurdles in the progression from e-commerce to e-business and part of this is attributable to the fact that major suppliers focus their efforts on organizations with more than 50 employees.

According to the study, approximately 90% of businesses in the UK now have access to the Internet and for those with more than 50 employees, the number is approaching 100%. Indeed, the key measure of ICT adoption in the UK no longer revolves around connectivity and access, but rather the degree to which ICT is adopted in ways that can deliver real value for businesses. In order to realise this value, the majority of businesses are looking to use ICT to help them to reduce operating costs, with a focus on more integrated supply-side systems both internally and with partners.

In general, online trading continues to grow but this is mainly due to advancements made by larger companies. However, of note is the fact that the ability to make and process orders, within the context of online trading, has stabilised in the UK while there have been increases identified in other nations.

Businesses that have pursued the implementation of ICT processes and systems have identified numerous benefits, which have ranged from the intangible, such as improved staff communications, to tangible bottom-line cost savings. Consequently, 60% of businesses consider that online technologies are ‘definitely the way forward’. In fact, as the percentage of people purchasing online grows year on year, the more that businesses recognise the impact of their competitors utilising such online technologies. This clearly demonstrates how ICT, and online trading in particular, is having a direct, tangible impact in the marketplace.

Further Information.