The Digital Transformation and its Major Impacts on British Economy

Abstract

Digitalization, or moving the operations to virtual interfaces, can benefit organizations through improved speed and efficiency. This research examines how the digitalization of businesses and education in the UK impacts economic growth. Two key questions are addressed: 1.) Has digitalizing business operations positively affected the UK’s economic growth and 2.) Has digitally transforming workplaces facilitated economic growth. Literature reveals the UK as an early adopter of digital technologies, contributing 2.5% to the GDP through enhanced business performance. Virtual organizations expand the labor market by utilizing the online platforms and the remote workers. Since 2015, the increased workplace automation has reduced the basic roles but also expanded specialized positions, boosting the employment. However, smaller firms sometimes lack the expertise and resources to digitize, causing the shutdowns and unemployment. Studies show the small-medium enterprises (SMEs) benefiting from timely digital transitions through marketing, profitability, and also purchasing power improvements. Recommendations include governmental encouragement of the digital transitions and quantitative research comparing the traditional and digital organizations. In conclusion, significant relationships exist between the digitalizing business operations/workplaces and the Britain’s economic prosperity. Timely virtualization allows the organizations to improve the competitiveness.