UK's businesses are afraid of start-ups. Genuinely, thoroughly afraid. The worst part is – these fears are not without solid ground.
Digital transformation business Squiz has polled UK businesses and found that 80 per cent fear they could be replaced by a business focusing on technology, in the next five years.
Out of that 80 per cent, half fear an established business, while a third fear start-ups.
But the fears are well-founded: almost half (44 per cent) of respondents said their business hasn’t changed in the last ten years. There’s no strategy, do adaption to the digital world. The biggest obstacle is, as usual, the lack of appropriate skills. This lack of skills has an obvious consequence – slow innovation processes, leading to the business lagging behind the competition.
Many businesses don’t have a mobile app, and almost half don’t even think it’s important to have one in order to be reached by consumers.
On the other hand, it’s interesting to hear that businesses acknowledge the fact that innovation and digital transformation is key to their survival.
“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,” said Stephen Morgan, Co-Founder of Squiz.
“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.”