Each cancelled digital project costing companies half a million pounds

UK businesses are taking huge losses on the chin for every digital project that ends up cancelled, according to new research, with each failure costing enterprises an average of just under £500,000.

According to an analysis of 150 UK businesses carried out by Fujitsu, 42 per cent of the country’s enterprises have dropped at least one project in the last two years. On average, the researcher found that they lost £483,690 was lost for every digital effort that was abandoned.

The statistics found by Fujitsu also find that although 41 per cent of companies had already completed digital projects, and 79 per cent say they are happy to modify how they do business to keep up with customer demand, 69 per cent say they are considering not undertaking any more digital transformation efforts.

The report also found that 71 per cent of UK organisations believe that they are lagging behind their peers – and competition – when it comes to digital renovations.

The reasons behind this are less simple: 73 per cent of respondents say that employees’ lack of digital skills as a key contributor, with 87 per cent saying that attracting more “digital natives” to the cause was crucial.

The study also suggests that artificial intelligence and associated technologies will become vital to the future of such businesses. More than half of all those surveyed report that AI will be a necessary driver of their financial (56 per cent) and operational (53 per cent) successes in the future, though 67 per cent say they are unsure of their company’s ability to adopt such new technologies.

Ravi Krishnamoorthi, head of business consulting, digital and application services at Fujitsu, says that it is clear that UK businesses understand how crucial technology is to both deliver results for customers and ensure their longevity.

He added: “digital transformation is about much more than the technology alone. We’re living in a time when digital disruption can change the business landscape virtually overnight, so UK organisations must ensure that they can transform successfully and secure their place in the global landscape.”