Security concerns, skills issues and restricted broadband availability are threatening the increased adoption of technology by UK companies.
With government figures showing UK productivity running below the European Union average, a new British Chambers of Commerce (BCC) report has fuelled fears that UK firms will struggle to compete in the global market unless they exploit ebusiness to the full.
At first glance, the results paint a reasonably positive picture of attitudes towards technology.
Some 57 per cent of companies believe that ebusiness has had some impact on their operations, and 94 per cent believe it will have an impact in the future.
But over half of small firms have failed to see an increase in sales leads from their websites, despite significant investments in developing an online presence.
The report also revealed that a third of UK companies have not updated their website since it was set up.
The results reveal that fear of web-based crime remains a major obstacle to doing business electronically.
Just over 60 per cent of companies claimed to have experienced computer-related crimes in the past year, with 93 per cent of those firms suffering from virus attacks.
But only two-thirds have conducted a vulnerability assessment, and only 37 per cent have a policy of reporting computer-related crime to the police.
Sally Lowe, acting head of policy at the BCC, explained that the Government needed to do more to address complacency among UK businesses.
"Smaller companies recognise that IT investment saves time and money but, of the 42 per cent which are not planning any new investment in IT, 80 per cent believe that their current IT facilities are adequate," she said. "That's a concern."
Lowe added that broadband continues to be a major stumbling block. A BCC study conducted earlier this year found that significant numbers of businesses were being forced to relocate because of a lack of broadband availability.
The BCC is formulating a series of recommendations due to be presented later this year, which are expected to urge the Government to provide more support to help firms make the most of technology.
Mark Oliver, managing director of Buildonline.com, a provider of software to the construction industry, maintained that the Government needed to support innovation and entrepreneurship to boost the adoption of ebusiness technologies in the UK.
"Adoption of technology is much more about culture," he explained. "Many people look at the internet as a marketing tool, whereas they should look at it as an efficiency tool.
"The market will drive demand for ebusiness. If the internet really does add value, companies will do it because it makes their business more profitable."
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