London’s Digital Revolution Is Incomplete
London’s position as the centre of Europe’s digital revolution is assured -- at least for now.
The city’s home to a wave of dazzling start-ups, offers the best access to early stage capital in Europe and possesses a world-renown arts, media and design scene. It’s a global financial centre, which also hosts 20+ category-breakout tech companies including Funding Circle, JUST EAT, King, Mimecast, Transferwise, Swiftkey and Zoopla. Yet as exciting as it is, the impact of this Internet-inspired success story has yet to be felt fully across the rest of the capital and the wider business community.
A similar problem is in evidence writ large at a national level too. The British are world-class Internet consumers. According to research by the Boston Consulting Group, by 2016, products and services delivered online are predicted to account for 12.4% of UK GDP, making the Internet economy larger than almost any other single economic sector including financial services, construction and education.
Last year, the Office for National Statistics reported that 36 million people used the Internet every day, a figure that has more than doubled since 2006. 83% of UK households now have access to the internet. 73% of adults bought goods and services online in 2013 almost 20% more than in 2008.
This blizzard of positive data would certainly seem to suggest a bright future for Britain in the Internet age. But unfortunately they represent only one strand of the story. If we truly want to stay at the forefront of digital change, and the way the Internet is reshaping almost every aspect of the world around us, then simply being world-beating consumers isn’t enough.
“The Internet isn’t really a technology. It’s a belief system,” wrote Joichi Ito, director of MIT Media Lab. The digital state of mind is both empowering and intoxicating. It teaches you to spot opportunities, innovate around barriers and collaborate on ideas with others, whether in the same room, or on the other side of the world.
However in order to harness the Internet’s transformative powers, the UK and, of course, London face two urgent challenges. First, we must equip the next generation with the tools required to operate in a dynamic and highly competitive marketplace. Under 25s are digital natives, 93% of whom are on a social network. Yet, strikingly, only a small minority within this group has ever created a website themselves..
The introduction of coding to the national curriculum from September 2014 is a significant milestone, but it’s only a down-payment on the investment required, not least because 71% of adults don’t know the policy exists and 90% can’t code.
Second, we need to capture the imagination of people no longer in education, who are in effect Internet self-starters. Many of them think nothing of streaming movies, booking holidays or ordering the family shop online, but have little or no idea how to deploy software creatively to solve problems or acquire new skills and jobs. That needs to change.
The one thing we can predict with certainty is that the Internet will ignite further momentous change – and we are just at the start of this process. Think about how recently it would have seemed unimaginable to order dinner, book a taxi or adjust your home heating through a couple of swipes of your phone. My seven-year-old son doesn't understand that a phone was once just something you only used to make a call. Look around and ask yourself, which part of your daily routine will be obsolete in ten years time? Some will be, guaranteed.
London has a strong startup ecosystem. Companies like ASOS, Betfair, Lovefilm and Skype show how successfully we can produce significant companies. The government has bought into the belief system of the Internet, too, with the introduction of Government Digital Services (GDS). Old Street roundabout is a hub of initiatives nurturing this ecosystem and Google Campus feeds it with events, investments, and collaborative office-space.
Creativity cannot come from a computer. You can’t, for example, code the flair and brilliance seen in the Central Saint Martins graduate show. But what we can and must do, is empower people, and crucially all businesses, with the tools to use the Internet to its full effect and stay ahead of our rivals, not just as consumers, but as creators and innovators too.
This article first appeared in Informilo magazine.