UK:         Analysis:
                        Impacts on Business

Analysis: Impacts on the Business

When considering the impacts of IT on businesses, especially non-IT businesses, technology factors play an important role.  It is strongly recommended that a business open a sales office in the UK.  The strong IT environment in the UK coupled with governmental policies that foster business, the chances of success for a business which opens a sales office are great.  Expansion of business within the UK, given the IT environment is also a very viable option.  This would be very easy in an environment with the IT infrastructure the UK has.

 Setting up a regional office not only within the UK, but using the UK as a regional base of operations is another excellent opportunity.  Rather than looking at the UK in isolation, it is quite realistic to look at the UK as part of the European Union as a whole.  A base in England represents a hub for countries wishing to do business in and out of Europe.  In this manner, the UK becomes a regional gateway to Europe.

 Although IT manufacturing in the UK is technically easy, when one considers the competitive advantages of the country, it becomes a waste of resources.  This is due to the high cost of labor which makes manufacturing impractical and infeasible.  However, the support for the IT infrastructure in the UK is strong, especially when considering the high rate of use of LAN and WAN.  This support is very good, and better than most countries, although the UK lags somewhat behind the US in internet development.  This is attributed to the emphasis placed on WAP, which is not fully developed at this point.
 This infrastructure is readily available in the UK, but can be costly to connect to the internet due to the high VAT.

 Additionally, there is ready availability to IS professionals who are highly trained, but very expensive.
 The cases of success and failure seem to mirror those in the United States.  Due to the similarity of culture and the same language between the US and the UK, it is very easy for US firms to expand into the UK.  Like the high tech companies in the United States, companies like Boxman, who were rated as one of Europe’s hottest tech firms, has filed for liquidation in the last few weeks.  Success stories in the UK include companies like Amazon, whose business model works well across country borders
 
 
 
 
 
 
 
 
 
 


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UK Home Executive Summary Telecommunication infrastructure  Liberalization and deregulation Internet diffusion Electronic Commerce Hardware manufacturing Software Development Who uses IT? IT Labor Market
IT Geographics IT Financing Government policies Legal environment Transborder Data Flows Analysis: IT strengths and weaknesses Analysis: impacts on the business. Sources and links About the authors

This report was completed in December 2000 for the class Impacts of National Information Technology Environments on Business given by Prof. Carmel  in the program of Management Of Global Information Technology at the Kogod School of Business at American University in Washington D.C.