Dutch businesses too vulnerable to internet, power outages: study

Dutch businesses are vulnerable to outages of services like power and the internet. The annual Dutch Innnovation Monitor shows that the majority of businesses can no longer function within half a day of being cut off of electricity, telecom, or other ICT services. After a week, only 6 percent of businesses can still operate without power, 10 percent without telephone and internet, and 18 percent without ICT services.

According to research leader Henk Volberda, a professor of strategy and innovation at the University of Amsterdam, this underscores “the high dependence” of businesses on these services.

Many companies have taken some precautionary measures, but the scope of these measures remains limited. When asked about their emergency package of precautions in place for the outage of vital services, one in five companies indicated that they have not yet taken any action. According to Volberda, organizations that take more measures are generally more resilient.

The Monitor also looked at how Dutch businesses experience geopolitical risks. 43 percent of the Dutch business experience geopolitical tensions as somewhat to very influential, while 38 percent indicate that they are limited or do not affect them. According to Volberda, the impact of geopolitical risks is “clearly greater” for companies that operate primarily internationally.

Companies also expect that increased spending on defense will result in further shortages and displacement in the labor market, but they also see opportunities. “Higher defense spending can stimulate demand in existing markets and provide access to new ones,” Voldberda said.

The Monitor also showed that Dutch businesses have caught up in the organizational and personnel capacities they needed to effectively apply artificial intelligence (AI). According to Volberda, young, internationally active companies in the ICT sector and business and financial services, in particular, have a “high AI maturity.”

Attention to the climate has further diminished. Only a third of companies still have ambitious climate goals, compared to almost two-thirds in 2022. Climate investments have also halved, from 4 to 2 percent of revenue. According to Volberda, it's worrying that "companies with the largest ecological footprint, in particular, have become less ambitious."