Bridging the Digital Transformation Divide Paradox in UK Business Communities

Abstract

This chapter explores digital transformation (DT) in UK businesses, highlighting its significance for economic growth. Defined as integrating digital technologies into all business areas, DT drives profound operational, cultural, and customer engagement changes. Despite the UK's leadership in digital innovation, a digital divide persists between large enterprises and SMEs, and between urban and rural regions, due to limited resources, digital skills, and infrastructure. Key sectors driving DT include healthcare and financial services, while barriers encompass financial constraints, outdated IT systems, cybersecurity concerns, skill shortages, and organizational resistance. Bridging this divide requires targeted support, policies, and technologies like AI, cloud computing, IoT, and 5G. The chapter also discusses emerging technologies and offers recommendations for inclusive growth, emphasizing the need for public-private partnerships to sustain the UK's digital leadership.