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UK businesses urged to rethink productivity amid AI shift

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UK businesses are being urged to rethink how they define and measure productivity during the country’s third annual National Productivity Week. Senior technology leaders warn that a narrow focus on doing “more with less” risks overlooking deeper structural issues that limit performance.

The government-backed awareness week has prompted commentary from industry executives who argue that traditional productivity levers no longer match the pressures companies face. They point to artificial intelligence, modern business applications and growing operational volatility as forces demanding a broader, more adaptive approach.

Many reject the idea of productivity as a simple output metric. Instead, they advocate continuous review of workflows, data use and skills, alongside careful deployment of automation. Several also stress the need for stronger partnerships with specialist providers as organisations confront complex technology choices and integration challenges.

Mark Wilson, Technology & Innovation Director at cloud and digital services provider Node4, said leaders first need a clear view of the constraints within their own operations.

“For businesses, improving productivity starts with understanding what’s holding them back. Everyone is trying to work harder or ‘do more with less’, but what does this really mean? The reality is that it looks different for every organisation. That’s why businesses need to take a step back, look across the entire company and identify where efficiencies can be unlocked. Crucially, this is not a one-off exercise. Productivity strategies need to evolve alongside the business and keep pace with technological advancements that enable businesses to automate simple tasks, enhance connectivity and unify systems,” Wilson said.

His comments reflect a broader shift in thinking that treats productivity as an ongoing programme rather than a single initiative. Organisations are reviewing their use of data, collaboration tools and back-office systems with a view to simplifying processes as well as increasing output.

Wilson linked that shift directly to the use of AI and other software platforms.

“By implementing tools such as AI, and modern business applications such as ERP and CRM, businesses can begin to streamline operations, strengthen collaboration and create a more connected ecosystem. While the integrations can be overwhelming and appear costly at first, the long-term benefits will soon outweigh any concerns. Giving people the right tools can reduce overall business costs, save time on tedious tasks and ease workloads, increasing motivation across the workforce,” he said.

He also argued that many organisations will need outside support as they modernise their environments and connect disparate systems.

“However, for many businesses this is a lot to take on, often in a short space of time. This is where choosing the right partner is key. Managed Service Providers can provide the technical expertise organisations need to introduce the tools and technologies that drive productivity gains, without the stress and complications they would face doing it alone. The key takeaway is this: when it comes to enhancing efficiency, productivity isn’t one solution – it’s an ecosystem,” Wilson said.

Manufacturing leaders are framing the challenge in similarly broad terms, but with a sharper focus on operational resilience and downtime. Factory operators face rising supply chain turbulence, skills gaps and pressure on margins, placing new demands on maintenance and information flows.

“For too long, manufacturing productivity has been framed as a maths equation: more output, lower cost, fewer people. Early AI reinforced that mindset. But that’s no longer where the biggest losses – or gains – are coming from.

“Today, productivity is defined by how well operations hold up under pressure. The real enemy isn’t throughput; it’s variability: unplanned downtime, supply chain disruption, inconsistent maintenance execution, hard-to-find information, and critical expertise walking out the door.

“The mistake isn’t moving too slowly on automation – it’s trying to automate everything at once. When technicians spend more time searching than solving, productivity breaks long before capacity does. AI should remove friction, turn asset data into instant answers, manuals into actionable guidance, and frontline input into repeatable execution.”

“This isn’t about doing more with less. In high-stakes environments, productivity comes from enabling skilled people to perform consistently on every shift, at every plant, every day,” said Paraic O’Lochlainn, VP, eMaint, a Fluke Corporation brand.

His comments highlight how manufacturers are starting to evaluate AI not only on cost savings but also on its effect on maintenance quality, knowledge retention and the consistency of decisions made on the shop floor. The focus is shifting from blanket automation to targeted interventions that reduce variability and cut the time technicians spend searching for information.

Across the wider UK business landscape, executives also see scope for AI to change the nature of work by reducing repetitive administrative tasks. This, in turn, raises questions about training, oversight and performance metrics.

“Productivity in UK businesses is often limited by how much time is spent on repetitive admin tasks, rather than finding solutions to more complex issues. AI is starting to change this by speeding up how quickly teams can move from a problem to a workable solution, whether in planning, analysis or day-to-day operations. In effect, it gives employees an additional layer of support, shortening workflows and enabling faster progress from intent to outcome,” said Josef Al-Sibaie, COO, Syspro.

He argued that the greatest value comes when staff use AI to expand the scope of their roles rather than simply complete existing tasks more quickly.

“The real opportunity here goes beyond efficiency. As routine work is automated, employees have more space to focus on critical thinking and more creative problem-solving. Unlocking that potential depends on leadership giving employees the freedom to experiment with AI, explore use cases relevant to their roles and build confidence through hands-on use. Curiosity and shared learning across teams sits at the heart of this, helping organisations move beyond seeing AI as just a tool for answering questions and instead view it as something that can actively carry out meaningful work, a means to automate manual workflows,” Al-Sibaie said.

Al-Sibaie also pointed to skills and governance as constraints that will determine whether early experiments with AI translate into sustainable gains. Organisations need clearer measures of success and stronger analytical literacy across staff groups, he said.

“However, there are still barriers to address. Alongside ensuring that employees across the business have the technical skills to use AI to its full potential, knowing when to trust, challenge or refine outputs is also critical. Given that knowledge now sits at everyone’s fingertips, it is the ability to synthesise actionable insights from this knowledge that will truly differentiate. Without those capabilities, productivity gains will be limited.

“Companies must define clear business objectives and measure the impact that AI has on achieving them, whether through reduced hours spent on a task, fewer human interventions in a process or lower error rates. These quantifiable proof points will serve as clear reminders of why AI is so powerful and drive continued excitement throughout organisations,” he said.



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Flexera warns AI cloud costs strain technology budgets

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SOFIAH NICHOLE SALIVIO

News Editor

Flexera has published research showing that every organisation surveyed uses generative AI public cloud services. It also found that 85% now see managing cloud costs as their main cloud challenge.

The findings point to growing pressure on technology budgets as companies juggle hybrid cloud estates, AI spending and limited visibility over usage. Some 17% of organisations exceeded their public cloud budgets in the past year, while estimated wasted cloud spend rose to 29%, reversing a five-year decline.

Hybrid cloud has become the dominant operating model in the survey. Flexera found that 69% of organisations now use a hybrid cloud approach, rising to 78% among those with more than 5,000 employees.

Spending patterns also point to larger, more complex estates. Among organisations spending more than USD $500,000 a month on cloud, 79% operate hybrid environments.

The report suggests AI is adding a new source of cost volatility. While all respondents said they use generative AI public cloud services in some form, 45% described that use as extensive and 30% said cost unpredictability was one of the biggest challenges in scaling AI workloads.

Chris Andersen, Chief Financial Officer at Flexera, linked those pressures to broader changes in how finance teams track technology spending.

“The conversation around cloud costs has shifted significantly. It has moved from spending more on technology to solve problems to managing increasingly complex environments that have often evolved organically over time.

“Many organisations have not intentionally designed hybrid or multi-cloud strategies. Instead, these environments emerge through acquisitions, new business requirements or teams independently adopting different platforms. As a result, finance leaders are being asked to manage technology estates that are much harder to monitor and optimise.

“The challenge is that complexity itself creates inefficiencies. The more environments organisations operate across, the harder it becomes to maintain visibility into what resources are being used, whether they are delivering value and where opportunities exist to reduce unnecessary spend,” Andersen said.

The survey also points to a more formal approach to cloud oversight. Flexera found that 71% of organisations now have a Cloud Centre of Excellence, while 63% have established dedicated FinOps teams.

Governance spread

Responsibility for cloud governance is also moving beyond specialist infrastructure teams. According to the research, business units and software asset management teams are taking a larger role in overseeing cloud usage and costs.

Managed service providers are adjusting their offerings in response to AI-related demand. Nearly half plan to offer AI consulting and SaaS management services, while two-thirds are adopting AI for cybersecurity use cases.

The data also shows a divide between larger and smaller organisations in the use of outside providers. Enterprise use of managed service providers rose by three percentage points from a year earlier, while use among small and medium-sized businesses fell from 48% to 39%.

Andersen said the shift in AI spending could change the balance of costs on company profit and loss statements.

“There is enormous pressure on organisations to invest in AI quickly enough to remain competitive, but AI costs behave very differently from traditional technology spending. Usage can scale rapidly across cloud environments, making costs far harder to predict and control.

“People costs have traditionally been the largest line item on the profit and loss statement for technology companies. If AI develops as many expect, technology spend could eventually overtake that. Yet most organisations are nowhere near as disciplined in managing technology costs as they are people costs.

“Companies know exactly who works for them and what those people cost. Far fewer can say the same about every cloud workload, SaaS agreement or AI tool operating across the business. That becomes a serious financial challenge once AI usage starts scaling.

“The organisations best positioned to succeed will be those that simplify where they can, improve visibility across increasingly hybrid environments and establish clear accountability for technology spending. Without that discipline, complexity itself becomes a driver of unnecessary cost,” Andersen said.

The research was based on a survey of 753 technical professionals and executive leaders worldwide, including cloud decision-makers and users across industries, organisation sizes and functional roles.



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UK shoppers favour faster delivery in retail choices

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JOSEPH GABRIEL LAGONSIN

News Editor

Zippd has published consumer research on delivery speed in retail purchasing decisions, finding that faster fulfilment is influencing where shoppers choose to buy.

The survey of 2,050 UK adults found that 19% of consumers would switch to another retailer if it could deliver significantly faster. Among those aged 25 to 44, 42% said they were more likely to buy from a retailer offering same-day delivery.

The data suggests delivery speed is moving beyond a back-end logistics issue and becoming a more visible part of the sales proposition. According to Zippd, fulfilment is starting to affect retailer choice, purchase intent and conversion, rather than only the post-purchase experience.

Fast delivery may also influence impulse buying. More than one in four consumers, or 27%, said faster delivery made them more likely to make last-minute purchases.

Price pressure

The research also examined what shoppers would pay for quicker service. Around four in 10 consumers said they would pay more than £2 for faster delivery, whether buying from a traditional retailer or a marketplace.

That willingness dropped once the price rose above £5. The figures suggest retailers may face a narrow pricing window if they want to offer faster fulfilment without deterring demand.

Zippd said this suggests rapid delivery may be more viable as a widely available convenience than as a premium add-on. That could matter for retailers balancing customer expectations with the cost of offering quicker delivery options.

The shift appears to be particularly visible in online marketplaces, where speed and convenience are promoted alongside product range and price. In that model, fulfilment becomes part of customer acquisition as well as a factor in conversion.

Changing journey

The research forms part of Zippd’s Instant Commerce Index, which examines how the gap between product discovery, purchase and delivery is narrowing. Zippd argues that fulfilment now has greater influence across more stages of the shopping journey.

Gemma Taylor, Co-founder of Zippd, described the company’s view of the change in consumer behaviour: “The most significant finding isn’t that customers want faster delivery – retailers have known that for years. What’s changing is the role fulfilment plays within the customer journey. We’re beginning to see this shift as more brands and marketplaces are making fulfilment speed a visible part of the customer proposition, enabling brands to differentiate beyond product and price alone.”

The figures add to wider pressure on retailers to compete on convenience as well as assortment and pricing. As delivery windows shorten, speed appears to be becoming part of how consumers discover, assess and buy products across a broader range of categories.

Zippd provides fulfilment technology for eCommerce brands and marketplaces managing delivery across seller networks. Its systems connect with eCommerce and delivery platforms to help businesses manage fulfilment through a single network.

The research was conducted online among UK adults.



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Omada launches Fusion Gateway for installers & MSPs

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JOSEPH GABRIEL LAGONSIN

News Editor

Omada by TP-Link has launched its Fusion Gateway range, with the first products aimed at installers and managed service providers serving small and medium-sized businesses.

The launch centres on Fusion 2.5G, the first product in the new family, alongside Fusion G+ and Fusion 2.5G PoE.

The new gateways are designed to reduce deployment complexity and lower ownership costs for channel partners managing multi-site networks. A built-in controller provides cloud-based management through the Omada Cloud portal and Omada app, without the need for a separate device licence.

The approach targets a common pressure point for installers and MSPs, which must balance tighter customer budgets with the growing complexity of distributed networks. The range supports remote monitoring, configuration and troubleshooting across multiple locations from a central management interface.

Product features

Fusion 2.5G includes five 2.5G ports and supports up to 4-WAN load balancing with auto failover. It also offers advanced IDS/IPS, multiple VPN protocols, optimised ACL, QoS and full-mesh SD-WAN for distributed network environments.

Omada has also added Bluetooth setup through the app, allowing installers to automatically discover and batch-adopt other Omada networking devices to speed up installation.

Installation options include desktop, wall-mounted and rack-mounted deployments, giving partners more flexibility when fitting equipment into different customer sites, from small offices to structured network cabinets.

A 2.51-inch touchscreen is one of the more visible hardware additions. It provides real-time visibility into device status, traffic and diagnostics without requiring a laptop on site, which could help engineers identify faults more quickly and reduce repeat visits.

Remote access

Another feature in the range is Omada LightLink VPN, which enables one-click remote access through an invite link. Remote users and branch locations can connect through an app or web interface.

The focus on remote access and central oversight reflects broader changes in the small and mid-sized business networking market. Businesses with multiple branches, hybrid workers and lean internal IT teams are relying more heavily on service providers to monitor and maintain connectivity across separate sites.

That has increased demand for tools that reduce manual setup and simplify support after installation. Omada is positioning Fusion Gateway as a range built around that need, particularly where ongoing licence fees can affect margins over time.

Ben Allcock, Vice President of B2B at TP-Link UK&I, commented on the pressures facing the market.

“Customers are dealing with increasingly complex networking environments, and they’re turning to channel partners for help in keeping everything running smoothly,” said Ben Allcock, Vice President of B2B at TP-Link UK&I.

“Our new Omada Fusion Gateway range enables partners to meet these demands by streamlining installation and setup, while delivering powerful remote cloud management capabilities that reduce IT workload. The result is higher customer satisfaction and stronger profitability for partners,” said Allcock.

Wider portfolio

The new gateway range sits within Omada’s broader business networking portfolio, which includes gateways, access points and switches. The ecosystem is also expanding into cameras and network video recorders, with the aim of bringing networking and surveillance products into a more unified management framework.

Omada said Fusion Gateway sits at the centre of its ecosystem by enabling unified management of connected devices across multiple locations. In practice, that gives the product family a key role for customers and service providers that want to standardise infrastructure on a single vendor platform.

The company also referred to a forthcoming Fusion Pro series, but did not provide detailed specifications in the launch announcement. The Pro line will support integrated management of networking and surveillance devices, including Omada and VIGI products, for more advanced multi-site environments.

For now, the immediate commercial focus is on the first Fusion 2.5G models and their appeal to installers and MSPs looking to reduce setup time, centralise support and avoid additional licensing charges. The range launches as service providers face growing demand to manage larger numbers of distributed small business sites with limited technical resources on the customer side.



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