80% of UK businesses fear displacement within 5 years
A staggering 80 per cent of UK businesses fear they could be displaced within the next five years, a report by Squiz has revealed.
According to the research, this fear stems from the rise of new tech-focused businesses.
This, combined with a lack of skills and expertise to innovate, means UK businesses are concerned they will be disrupted imminently.
Earlier this week, EY announced the number of profit warnings issued by UK listed companies reached the highest level recorded since Q2 2008, with ‘technological challenges’ cited as the main catalyst.
Other standout figures from the Squiz report include:
- Forty-nine per cent of UK businesses fear that an established competitor is most likely to disrupt them, with a more surprising 36 per cent concerned about a start-up taking custom.
- Thirty-eight per cent say they need more technologists in order to win over their sector, and as a result, have until now been too slow in adopting cutting-edge technologies.
- Only a quarter of UK businesses (24 per cent) are currently using AI and VR. However, for those that are planning on using VR, 46 per cent cited marketing and events as the key uses.
- Shockingly, over a third (36 per cent) of UK businesses still do not have a mobile app or mobile website.
Stephen Morgan, co-founder of Squiz, said: “It’s worrying to see that a staggering 44 per cent of businesses believe they are either the same business they were 10 years ago, or similar. With the rate of digital transformation accelerating more than ever, this cannot be the case if these businesses want to survive.
“However, I am glad to see that businesses have recognised that innovation will be the key to their survival, giving them time to change their approach. For the 40 per cent of businesses that said they are slow to innovate, it is vital that they find the point of vulnerability within their business and act to bridge the gap it presents, before another business swoops in to do it for them, offering a better alternative to customers."