The Digital Divide: UK Businesses Struggle with Digital Health in 2025
February 18, 2025, 10:42 pm
In the fast-paced world of business, digital health is the lifeblood. Yet, a recent study reveals that only 28% of UK businesses are starting 2025 with robust digital health. This figure is a wake-up call. It signals a digital divide that could widen if not addressed.
The study, conducted by Zoho, paints a stark picture. It shows that a significant portion of UK businesses—36%—are stuck in the average zone, while another 36% are grappling with poor digital health. This is not just a statistic; it’s a warning.
Larger businesses are faring better. Nearly 40% of them boast good digital health. In contrast, only 27% of medium-sized businesses and a mere 18% of small businesses can say the same. This disparity is troubling. It suggests that smaller firms are falling behind in the digital race.
When we look across Europe, the UK’s performance is underwhelming. Germany leads the pack, with 33% of businesses rated as having good digital health. Spain is on par with the UK at 27%, while France and the Netherlands lag behind. The Netherlands, in particular, struggles, with 45% of businesses rated as having poor digital health.
Despite these challenges, there is a glimmer of hope. The study indicates some progress in digital health indicators across all markets. UK businesses with good digital health are more likely to view artificial intelligence (AI) as critical. A striking 46% of these businesses are already reaping the benefits of AI. In contrast, only 24% of those with average digital health and a mere 6% with poor health share this sentiment.
AI is not just a buzzword; it’s a game-changer. Over half of UK businesses—54%—recognize its potential and plan to invest heavily in it. This is a significant increase from the previous year.
Yet, the journey toward digital transformation is fraught with obstacles. About one-third of UK businesses claim to run at least half of their operations using digital tools. This figure has remained relatively stable. However, those running the majority of their business digitally have increased by 8% year-on-year, now standing at 25%.
Interestingly, many businesses are still at the starting line of their digital journey. Twelve percent of respondents admit they are just beginning, while only 6% claim to be fully digital. This gap illustrates the varying levels of digital maturity among businesses.
Cloud platforms are becoming more prevalent. Over half of the surveyed businesses use two to three cloud platforms. Nearly half utilize one to five applications. Only a tiny fraction—2%—report not using any cloud platforms. This is an improvement from the previous year, particularly among businesses with poor digital health.
However, the road to digital transformation is not without its bumps. A staggering 87% of UK businesses have encountered problems during their digital journey. The most common issues include excessive effort spent on implementation, the need for external help, and complicated infrastructure management.
Despite these challenges, the benefits of digital transformation are clear. Improved customer experience, efficiency, and employee satisfaction are top priorities. In 2024, 51% of leaders cited enhanced customer experience as a key benefit, up from 43% the previous year. Efficiency and employee experience also saw increases in importance.
When evaluating potential cloud software, UK businesses prioritize customer service enhancement, employee experience, and integration with existing applications. These factors are crucial for making informed decisions in a crowded marketplace.
The findings highlight a pressing need for education and training. Businesses must invest in their digital health to realize the full potential of their investments. Good digital health is not just a luxury; it’s a necessity for survival in today’s competitive landscape.
As we move into 2025, the message is clear: UK businesses must prioritize digital transformation. The stakes are high. The digital divide is real, and it threatens to widen if action is not taken.
In conclusion, the landscape of digital health in the UK is a mixed bag. While some businesses are thriving, many are struggling to keep pace. The road ahead is challenging, but with commitment and investment, UK businesses can bridge the digital divide. The future is digital, and those who embrace it will thrive. Those who don’t risk being left behind. The choice is clear. The time to act is now.
The study, conducted by Zoho, paints a stark picture. It shows that a significant portion of UK businesses—36%—are stuck in the average zone, while another 36% are grappling with poor digital health. This is not just a statistic; it’s a warning.
Larger businesses are faring better. Nearly 40% of them boast good digital health. In contrast, only 27% of medium-sized businesses and a mere 18% of small businesses can say the same. This disparity is troubling. It suggests that smaller firms are falling behind in the digital race.
When we look across Europe, the UK’s performance is underwhelming. Germany leads the pack, with 33% of businesses rated as having good digital health. Spain is on par with the UK at 27%, while France and the Netherlands lag behind. The Netherlands, in particular, struggles, with 45% of businesses rated as having poor digital health.
Despite these challenges, there is a glimmer of hope. The study indicates some progress in digital health indicators across all markets. UK businesses with good digital health are more likely to view artificial intelligence (AI) as critical. A striking 46% of these businesses are already reaping the benefits of AI. In contrast, only 24% of those with average digital health and a mere 6% with poor health share this sentiment.
AI is not just a buzzword; it’s a game-changer. Over half of UK businesses—54%—recognize its potential and plan to invest heavily in it. This is a significant increase from the previous year.
Yet, the journey toward digital transformation is fraught with obstacles. About one-third of UK businesses claim to run at least half of their operations using digital tools. This figure has remained relatively stable. However, those running the majority of their business digitally have increased by 8% year-on-year, now standing at 25%.
Interestingly, many businesses are still at the starting line of their digital journey. Twelve percent of respondents admit they are just beginning, while only 6% claim to be fully digital. This gap illustrates the varying levels of digital maturity among businesses.
Cloud platforms are becoming more prevalent. Over half of the surveyed businesses use two to three cloud platforms. Nearly half utilize one to five applications. Only a tiny fraction—2%—report not using any cloud platforms. This is an improvement from the previous year, particularly among businesses with poor digital health.
However, the road to digital transformation is not without its bumps. A staggering 87% of UK businesses have encountered problems during their digital journey. The most common issues include excessive effort spent on implementation, the need for external help, and complicated infrastructure management.
Despite these challenges, the benefits of digital transformation are clear. Improved customer experience, efficiency, and employee satisfaction are top priorities. In 2024, 51% of leaders cited enhanced customer experience as a key benefit, up from 43% the previous year. Efficiency and employee experience also saw increases in importance.
When evaluating potential cloud software, UK businesses prioritize customer service enhancement, employee experience, and integration with existing applications. These factors are crucial for making informed decisions in a crowded marketplace.
The findings highlight a pressing need for education and training. Businesses must invest in their digital health to realize the full potential of their investments. Good digital health is not just a luxury; it’s a necessity for survival in today’s competitive landscape.
As we move into 2025, the message is clear: UK businesses must prioritize digital transformation. The stakes are high. The digital divide is real, and it threatens to widen if action is not taken.
In conclusion, the landscape of digital health in the UK is a mixed bag. While some businesses are thriving, many are struggling to keep pace. The road ahead is challenging, but with commitment and investment, UK businesses can bridge the digital divide. The future is digital, and those who embrace it will thrive. Those who don’t risk being left behind. The choice is clear. The time to act is now.