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Lack of Innovation Puts UK Businesses at Risk

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British business leaders are failing to innovate and it’s jeopardising their companies, a new global study has found.

“Innovate or Perish,” sponsored by Atomic and conducted by Vanson Bourne, found that 42 per cent of UK executives believe that the largest negative impact on their companies in the next five years will be from a failure to innovate and keep up with changing customer needs. That figure is higher than among business leaders in the United States, France and Germany.

The study surveyed 100 business decision-makers and 1,000 customers in each of the four countries and across four sectors: energy and utilities, financial services, retail, and telecommunications.

It also found that UK business leaders are often overwhelmed by regulatory compliance and at risk of losing ground in the global marketplace due to lack of investment.

UK business leaders are also concerned their corporations aren’t adapting to technological change and will suffer for it as quickly as within the next year. That includes the 86 per cent who anticipate a decline in customer numbers if they fail to innovate, the 84 per cent who expect a drop in revenue and the 73 per cent who expect international operations will contract.

Just eight per cent of decision-makers believe their company is on the cutting edge of technology. Only nine per cent think their firm has fully responded to evolving customer needs.

Automic, software providers, warned that companies which fail to innovate and adopt new technologies risk alienating customers and cutting off revenue streams.

Chris Boorman, chief marketing officer at Automic, said: “This survey highlights the growing importance of utilising technology—especially business automation—as a key instrument in delivering enterprise innovation and change.

“Those companies that don’t embrace new technologies risk permanently damaging customer relationships and revenue streams as they fail to meet market needs.”

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