Revealed: The UK’s Digital Transformation Capital

While we anticipate the working world is going to change markedly over the course of the next decade thanks to the growth in the numbers of millennials in the workforce, an ageing population, and changes in the physical environment such as remote employment, we fully expect the future will, in many aspects, be shaped by digital transformation – the introduction of digital technologies to all areas of a business.

In this article, we want to delve into digital transformation in the UK but first, take a look at how they’re changing the global landscape…

Around the world

Governments around the globe are witnessing the rapid overhaul of their technological systems, so much so that Seoul and Toronto are proposing an entire revamp of their systems from analogue to digital alternatives.

Interestingly, a report by Deloitte involving 12,000 government officials from 70 countries on digital transformation detailed that when asked “to what extent do you perceive digital technologies are disrupting the public sector” only 16 per cent suggested “not at all”. Furthermore, when asked “how much their domain area had been impacted by digital trends, 37 per cent responded, “to a great extent” with a further 39 responding “to a moderate extent.”

Perhaps most worryingly, when looking at things from a global perspective, is the fact that when asked whether they are confident about their organisation’s readiness to respond to digital trends only 4% strongly agreed.

If we rewind to June 2021, City AM reported that over 65% of UK companies planned to increase their spend on new technologies – with 54% of businesses suggesting that the adoption of said technologies helped them successfully overcome the challenges presented by the COVID-19 pandemic. For 62% of businesses, meanwhile, investment into new technologies was anticipated by June 2022 at the latest.

Experts predict that investment in digital technologies could increase the UK’s GDP by 7%, equating to an additional £232 billion boost to the economy by 2040. “Digital processes in the public sector will create efficiency gains and cost savings of £75 billion” notes a report by the Centre for Economic and Business Research & Virgin Media Business.

City
Number of Businesses
Number of Businesses Per 1,000
Average Searches Per City OCT/NOV/DEC
Average Searches Per 1,000 Businesses
Coventry
10,210
10.210
597
58.43943846
Newcastle
8,420
8.420
393
46.7141726
Bristol
18,725
18.725
767
40.9434802
Manchester
23,565
23.565
897
38.05078153
Nottingham
9,420
9.420
330
35.03184713
Belfast
10,700
10.700
370
34.57943925
Sheffield
16,345
16.345
547
33.44549811
Edinburgh
18,695
18.695
623
33.34224837
Liverpool
14,695
14.695
480
32.66417149
Glasgow
19,440
19.440
627
32.23593964
Derby
7,595
7.595
227
29.84419574
Southampton
8,875
8.875
247
27.79342723
Portsmouth
6,555
6.555
167
25.42588355
Leeds
30,390
30.390
753
24.78885598
Leicester
15,925
15.925
390
24.48979592
Birmingham
36,925
36.925
900
24.37373053
Cardiff
11,975
11.975
227
18.92832289
Stoke
6,430
6.430
97
15.03369622
London
534,590
534.590
7,813
14.61556208
Bradford
16,320
16.320
117
7.14869281

According to search results, averaging across October, November, and December 2021, London comes in 19th out of 20 cities in regard to interest in digital transformation, with Bradford the only city below, with 14.6 and 7.1 searches per 1,000 businesses per month, respectively.

At the top, meanwhile, Coventry leads the way in digital transformation with 58.4 searches per 1,000 businesses per month, closely followed by Newcastle and Bristol which average 46.7 and 40.9, respectively.

According to Coventry City Council’s ‘Digital Coventry’ report, “the Council’s role will be focussed on helping to identify the priorities that will lead to the biggest impacts on economic growth and public service reform including infrastructure to support digital innovation in the city, providing insight and delivering public service reform directly, including working in a more digital way as a Council and promoting work that will support every resident in the city to benefit from digital change.”

Newcastle, meanwhile, which plays home to software giants Sage, has invested heavily in its digital offering in recent years, with the recent announcement that Version 1, digital transformation and technology provider, is to bring 200 new jobs to the city further reiterating this.

Digital transformation notices and awards

In order to fully understand the situation in regard to digital transformation, we explored the number of notices published and contracts awarded in each of the 20 cities which mention the keyword ‘digital transformation’ in the title, description, and complete entry fields in 2021, using Supply2Gov data. These notices and awards include contracts published by local councils, government authorities, and private sector buyers.

By compiling this additional data, we can get a clearer picture of what digital transformation looks like across these cities in, detailing who’s searching for the term online, and who’s actively seeking it through the publication of tenders.

In order to give an accurate total score for ‘digital transformation’, we aligned the total number of searches per 1,000 businesses with the total number of notices and awards per 1,000 businesses.

Once tallied, these numbers were then given a percentage score of the value 1 relevant to their total numbers. The lowest and highest numbers for each variable were 0.047 and 0.952, respectively. These values were then consolidated to give a total digital transformation score.

City Weighted Search Score Weighted Notice/Award Score Total Digital Transformation Score
Bristol 0.857 0.857 0.857
Edinburgh 0.619 0.809 0.714
Glasgow 0.523 0.904 0.7135
Newcastle 0.904 0.476 0.69
Nottingham 0.761 0.619 0.69
Manchester 0.809 0.523 0.666
Belfast 0.714 0.571 0.6425
Liverpool 0.571 0.714 0.6425
Cardiff 0.19 0.952 0.571
Portsmouth 0.38 0.761 0.5705
Leeds 0.333 0.666 0.4995
Sheffield 0.666 0.333 0.4995
Coventry 0.952 0.047 0.4995
Southampton 0.428 0.428 0.428
Birmingham 0.238 0.38 0.309
Derby 0.476 0.047 0.2615
London 0.095 0.285 0.19
Leicester 0.285 0.047 0.166
Stoke 0.142 0.047 0.0945
Bradford 0.047 0.047 0.047

Find new opportunities

S2G can help you find new tenders in the public sector – and those who haven’t traditionally supplied to the sector will be encouraged to do so with such heavy investment from government.

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