Digital fragmentation could threaten the growth of businesses and innovation as restrictions are put in place, but UK businesses are seemingly leading on the response.
That’s according to Accenture’s latest report which found that business leaders across the UK are much more alert to these risks, possibly as a result of new barriers to the cross-border flow of products services, people and data and the report finds the UK is at the forefront of responding to these barriers.
In total 90% of UK Chief Information Officers and Chief Technology Officers feel their existing IT strategies and systems are vulnerable to the increasing barriers.
The increase of obstructions led to 84% of UK respondents admitting they will be a likely cause of their businesses choosing to exit a market or delay market entry plans over the next three years. In comparison, on a global level, fewer respondents agreed with a total of 74% holding this response.
Just over half of global respondents admitted the risks fragmentation poses to digital growth will have a profound effect on the ability to use or provide data and analytics services across national markets, compared to almost three-quarters of UK businesses.
Armen Ovanessoff, Principal Director at Accenture Research, said: “Contrary to the rhetoric of many digital evangelists, national borders do matter. Business leaders are waking up to their responsibility in helping shape the rules for our digital future.
“When we consider the profound transformations ahead in areas like artificial intelligence, bio-technology and the Internet of Things, it is clear that this is just the beginning of a complex journey that demands cross-border and cross-sectoral cooperation.”
In order to offset labour restrictions, 76% of UK respondents say they are investing in automation to tackle this barrier, compared to 67% of global respondents.
Ovanessoff said: “UK business leaders seem acutely aware of these trends. Recent political upheavals may have made them more sensitive to the need to adapt business strategies and operations to the evolving global geopolitical and economic landscape.”