UK businesses increasingly linked to e-commerce

E-commerce Minister Mike O'Brien has today announced that an international study shows UK businesses are at the forefront of the use of Information and Communication Technology (ICT).

Comparing favourably with the G7, Australia, Ireland, South Korea and Sweden, the study produced independently by Booz Allen Hamilton for the DTI, placed the UK third according to an index of sophisticated use of ICT - a leap of four places from seventh in the previous study conducted in 2003.

The report showed that 69% of UK businesses are now using broadband, and xDSL connections increased by 11% last year alone.

Mr O'Brien said: "It is great to see that UK businesses are sprinting forward in the deployment of ICT. The increase in the proportion of business connected by broadband shows that UK companies are embracing the opportunities that ICT can bring. It is particularly encouraging to see that small businesses are beginning to narrow the digital divide that appeared to have opened up in recent years.”

Though many challenges remain, he said government would play its part. “The report's clear message is that effective use of ICT can bring real improvements in business performance for all businesses, including the smallest,” he added.

Key findings for the UK compared with the 2003 survey included:

• The proportion of micro and small businesses with a website increased by 16 percentage points
• 30% of micro businesses are now trading online, up from 17%
• 31% of small businesses are trading online, up from 22%
• 73% of businesses provide information about products and services for customers online
• The proportion of businesses using ICT that measures the benefits of technology rose significantly form 38% to 53%

In the overall index of “sophisticated use” used in the study, UK businesses ranked third, behind Sweden and Ireland, but the report found the UK was in the top tier for the business use of ICT in the countries polled.

The report noted that UK companies are increasingly exploiting broadband; bringing ICT into their business plans; adopting new technologies such as Voice over IP and desktop video conferencing; and, interacting more fully online with both customers and suppliers.

The study was based on nearly 8,000 telephone interviews with businesses, over 2,700 of which were in the UK.

(SP/MB)