Innovation in ICT sector

The rise of information communication technology (ICT) has allowed businesses to move away from traditional means of the conducting their operations to bolder, more innovative approaches.

Increased use of technologies such mobile phones, email and broadband means firms are no longer committed to delivering face-to-face customer service from physical locations and can adopt an approach using more online and virtual features.

Recent years have seen a more companies offer their products and deal with their customers through portals such as websites and virtual offices, as firms adopt the concept of becoming an 'e-business'.

UK’s thriving ICT sector

Although the term 'e-business' may conjure up images of companies simply selling their wares through the internet, it encompasses much more, promising organisations innovative ways to communicate with their customers, clients and suppliers.

Firms will need to prepare their entire organisations to manage a much more responsive, customer-focused business

Robin Bew

Editorial Director

Economist Intelligence Unit

The UK is in a prime position to embrace the e-business revolution, providing businesses and customers with an increased access to ICT and broadband, with investment keeping the country up to speed with the latest developments.

According to the Economist Intelligence Unit, the changes ICT has made to the way firms operate in recent years will extend into the future, as customers become more technology-savvy.

The organisation estimates that by 2013, mobile, web-based and other ICT developments will mean consumers expect a greater deal of interaction with businesses.

Robin Bew, Editorial Director of the unit, commented: "Firms will need to prepare their entire organisations to manage a much more responsive, customer-focused business.

However, due to investment in the country's ICT infrastructure, particularly the broadband network, the UK is taking steps to embrace the new internet-focused business environment.

Economist Intelligence Unit

In the Economist Intelligence Unit's e-readiness rankings for 2008, it was revealed that Britain is the eighth most prepared nation for the future of ICT, thanks to investment from the government and industry in technology and telecommunications infrastructure.

Mr Bew hailed the success of countries such as the UK which have improved their ICT capability, saying: "The world's most developed digital economies continue to record impressive gains in broadening access to ICT and making digital services available to the population.

One promising feature of this development is the number of customers companies can reach through the internet.

Firms looking to operate in the UK may be interested to hear that more than half of the country's households have access to broadband internet, with research from analyst Gartner revealing 58 per cent of homes incorporate the technology.

The world's most developed digital economies continue to record impressive gains in broadening access to ICT and making digital services available to the population

Robin Bew

In addition, this trend looks set to continue. Gartner predicts that by 2012 broadband penetration will have reached 74 per cent of UK homes, with only consumers in the Netherlands having more access to the technology in Europe.

Amanda Sabia, principal research analyst at the firm, suggests e-businesses working in mature markets such as the UK will have easy access to customers, commenting that "consumers in heavily penetrated markets are already addicted to broadband".

However, the trend towards e-business has more benefits to firms than reaching an increased number of customers. The roll out of next-generation broadband across the UK was described as "absolutely key to this country" by information provider BroadbandChoices.co.uk.

Michael Phillips, Product Director of the organisation, said firms can count on the technology to change the way they do business, allowing activities such as remote conferencing and home working to become commonplace.

He also suggested specific sectors which deal with large amounts of information, such as the creative industries, will benefit in particular, as the technology will allow them to communicate and transfer data with greater ease.

The advancement of the broadband network accelerates on a daily basis. Access to broadband has spread across the UK, bringing access to the internet to almost every part of the country.

It was reported today (July 31st) that a community of 15 monks living on Caldey Island in west Wales have installed a broadband connection. The monks said the development would allow them to further their e-business, which sells local produce.

Father Daniel, the abbot, revealed: "We have many plans to develop our commercial activities now we have a modern, high-speed communications link.

On a larger scale, BT recently announced a £1.5-billion investment in fibre-based infrastructure to bring high-speed connections to up to ten million homes and businesses by 2012.

The company claims Britain has a "world-leading broadband availability" and explained the new investment will revolutionise the sector by delivering speeds of up to 1,000Mb/s to firms and homes.

Ian Livingston, BT Chief Executive, commented: "Broadband has boosted the UK economy and is now an essential part of our customers' lives.”

"This marks the beginning of a new chapter in Britain's broadband story" he continued.