The Internet contributed 100 billion pounds (155 billion dollars, 115 billion euros) to the British economy last year, about 7.2 percent of gross domestic product (GDP), a report showed Thursday.The sector is bigger than the construction, transport or utilities industries in Britain, according to the study by the Boston Consulting Group (BCG), which was commissioned by the British arm of Internet giant Google.
The research also predicted that by 2015, the British 'Internet economy' is likely to grow to 10 percent of GDP, eclipsing the financial sector.
"The Internet is pervasive in the UK economy today, more so than in most advanced countries," said Paul Zwillenberg, a partner with BCG in London.
"Whether they are driving international expansion, improving their interactions with customers or the efficiency of their supply chains, UK companies are increasingly embracing the Internet's potential."
Much of the growth is driven by consumption, the majority of it online spending but also what consumers spend on getting access to the Internet, while the rest comes from government spending, private investment and exports.
The study found that about 62 percent of adults, or 31 million people, have bought goods or services online so far this year and collectively they spent about 50 billion pounds last year on goods or travel.
More than 19 million out of a total of 26 million British households have an Internet connection and broadband access has doubled since 2005.
Overall, Britain was ranked sixth among major economies on the BCG "e-intensity index" which judges the reach and depth of the Internet, after Denmark, South Korea, Japan, Sweden and the Netherlands.
So in 5 years even larger than financial services! A marker for all of us to consider as we all have business plans.
Have you made the web the CENTRE of your operation?
I bet for many the answer is no. Yes you have a website. Yes maybe you do stuff there but have you made the web CENTRAL?
A good model of what I mean is knitting. 10 years ago, knitting was almost dead. Even a large city like Toronto could hardly support a shop. Now knitting is huge. Why? The web!
One of the best community sites in any sector is Ravelry.com - Here knitters have their own say, do business, share patterns and information, explore new things. This surely can be a model for any group - why not yours?
This is the splash page for members.
Here is the group page
Knitting has the same kind of "Star" system as the social web did in the good old days. The Scoble of Knitting is the Yarn Harlot. She is in the top 50 of all bloggers and has a global impact.
The Knitting Samurai is maybe the Chris Locke.
What is the lesson here?
Knitting put the community first and Knitters put their work and their person first - before the transactions. Mainly women - I am not surprised.
They use very a simple approach to technology. Ravelry is a sophisticated bulletin board. The Top bloggers use very simple platforms - it's all about the content and the person not the tool.
They have fun!!!!!
In a way Etsy is a bit like this too - but the Knitters have created their own space and their own community. Etsy is more like an artisanal department store. Another lesson maybe then to create your own sector's Ravelry?
