As we step into 2022, it’s a great opportunity to reconsider resolutions, goals and objectives for the coming year.
One strategy we’re unsurprisingly involved in is that of digital transformation. Much more than simply moving your email to Office 365, chatting on Teams or using excel instead of paper and a calculator (is anyone still doing this?!) digital transformation is more expansive and cultural for organisations. It can change not only the way processes and people operate but the overall direction and culture within the business.
So, if you think by having flexible remote working, laptops and shared drives is your job done and you’re running at 100% effectiveness, perhaps it’s time to reconsider…
Where are we at?
Here are some interesting stats about the state of digital transformation and where companies are at in their journey.
- 70% of companies either have a digital transformation strategy in place or are working on one.
- 21% of companies think they’ve already completed digital transformation.
- Only 7% of companies have fully implemented their digital transformations.
- Of companies that haven’t started a digital transformation, 59%fear it might be too late.
What kickstarts a digital transformation?
What drives, motivates or influences companies to look to technology solutions to their greatest challenges?
- Most digital transformations are driven by growth opportunities, followed by increased competitive pressure and new regulatory standards.
- 27% of companies say digital transformation is a matter of survival.
- 55% of companies without a digital transformation believe they have less than a year before they start to lose market share
- Nearly half of all companies say improving customer experience and customer satisfaction were the leading influences to start a digital transformation.
What are the benefits of digital transformation?
- Executives say the top benefits of digital transformation are improved operational efficiency (40%), faster time to market (36%) and the ability to meet customer expectations (35%).
- Digital transformation and a focus on customer experience can generate a 20-30% increase in customer satisfaction and economic gains of 20-50%.
- 56% of CEOs say digital improvements have led to increased revenue.
- Digitally mature companies are 23% more profitable than their less mature peers.
Why do digital transformations fail? (and how to make it work!)
- 45% of executives don’t think their company has the right technology to implement a digital transformation.
- 70% of digital transformations fail, most often due to resistance from employees – so it’s time to embed people and process in with all that data and technology. Look for simpler, adoptable evolutions and not radical and disruptive revolutions – assuming that’s not too much of a compromise!
- Employees at companies with less than 100 employees are nearly three times more likely to say their digital transformation was a success than employees at companies with more than 50,000 employees.
- A survey of employees found the most common obstacle for digital transformation was the CEO at 35%.
- 80% of companies say their digital transformation efforts involve multiple business units or the entire company.
Head in the Clouds
Where are companies investing in technology?
- 93% of companies consider innovative technologies as necessary to reaching their digital transformation goals.
- 70% of businesses are expected to be using a multi-cloud strategy in 2019, up from less than 10% in 2017.
- 76% of companies are investing in emerging technologies.
- 86% of companies believe cloud technology is critical to digital transformation.
In summary, digital transformation is becoming an ever-more-important strategy to achieve operational efficiency, profitability, success and competitive advantage and the stats above outline both the opportunity and pitfalls of the process.
As a bonus stat, as a supply chain management solution in the cloud, we’re always keen to prove that suppliers genuinely do prefer self-service portals – and this is a trend we see in the consumer sphere too. SourceDogg provides this self-service access for suppliers which then, in turn, creates an amazing knowledge base for your organisation. We believe this is a true demonstration of digital transformation in action.
- 60% of American consumers say they prefer digital self-service tools for customer support, such as an online knowledge base, app or chatbot.