Accessability Links
Cookies on our website
By continuing to use this website we will assume you are happy to receive cookies as outlined in our cookie policy
Accept Policy

Deloitte reveals businesses' digital investment plans

Dec 13
Tags: Deloitte
Share this story:
Deloitte reveals businesses' digital investment...

Deloitte has provided an insight into where management consultants can expect businesses to focus their technology investments over the coming years.

In the first edition of the Digital Disruption Index, a new regular report, Deloitte surveyed 51 organisations with a combined market value of £229 billion. It found that more than half of respondents anticipate that, by 2020, they will invest more than £10 million in digital technologies and ways of working, such as artificial intelligence (AI), cloud, robotics, the Internet of Things (IoT) and virtual reality.

A substantial majority (85 per cent) of executives were planning to invest in AI and the IoT in particular, while 73 per cent were set to get behind robotics. Other leading investment targets include augmented and virtual reality (63 per cent), wearables (62 per cent) and biometric technologies such as voice and fingerprint recognition (54 per cent).

Of the various technologies included in the study, AI was singled out as the one most likely to have an impact on businesses in the future.

Despite this expectation, less than a quarter (22 per cent) of businesses said they had already invested in AI. Of those that had made a financial commitment in this area, only a third expected to spend more than £1 million this year.

This suggests that most AI projects are still at the pilot stage and have not yet reached large-scale deployment.

Focusing on trends in 2017 alone, the report found that nearly a third (30 per cent) of UK organisations will have invested more than £10 million in new digital tech and innovations this year.

While this sounds like a substantial figure, Deloitte noted that, in the context of typical corporate IT budgets, it is a relatively modest investment. Most IT functions have annual budgets of more than £20 million, while a quarter of corporate IT departments spend more than £75 million every year, according to the firm's November 2016 CIO survey.

Paul Thompson, UK digital transformation leader at Deloitte, said there is a lot of scope for British businesses to expand and improve in the technology space.

"The first edition of the index shows that few UK businesses are successfully exploiting digital technologies and ways of working," he commented. "Strategies are not coherent, investment levels are modest and the relevant skills are in short supply. As a result, the UK isn't living up to its digital potential."

The digital skills challenge

Skills shortages have become a significant problem for many UK businesses, particularly where technological growth and digital innovation are concerned.

The Deloitte research provided further evidence of this, with only one in five executives (20 per cent) feeling confident that there are enough school leavers and graduates entering the labour market with the digital skills and experience companies need.

Three-quarters of respondents said they face challenges in acquiring the right digital capabilities.

Data scientists and analysts were identified as the most important roles for a successful digital strategy, but also the most difficult positions to fill.

These findings chime with a recent survey by PwC, which found that two out of three UK workers admit to lacking confidence in their science, technology, engineering and mathematics skills.

Search for the latest management consultancy jobs and consulting recruitment opportunities or contact us on +44(0)207 089 9017.

Image: spainter_vfx via iStock

Share this story:
Add new comment
Jobs Related to this Post
5 result(s) found 
Page 1 of 1 

$80k-$110k base plus bonus, benefits
Nairobi (Kenya) or Lagos (Nigeria)
Our client's mission is to unlock the power of capital to make a strong return and a lasting difference in frontier markets. They provide investment advisory services in frontier markets
£50k-£70k plus bonus, benefi...
Central London, occasional work from h...
Senior Analyst - Client & Brand Insights - Central London and work from home occasionally Our client is a growing specialist research firm which focusses on providing research and insight on
£70k-£150k plus bonus, benef...
Are you the kind of person that loves to problem solve?  Do you thrive on coaching people?  How do you feel about seeing the direct impact of your work?  Our client is a global
£35K-£40K (dependent on expe...
My client is a Global Communications Network with ambitious growth aspirations and is currently moving through its own transformational journey. They have a vision to innovate the way brands are built
£80K- £150K
My client is an independent, medium sized consulting firm with a focus on transformational change. With a flat structure and work centred around values, this firm work side-by-side with their clients