Can Digital Transformation Make A Positive Impact? [Research]
in Insights - Last updated October 12th, 2022
Digital transformation is an inescapable focus across sectors, industries and nations.
Without doubt, the world around us is becoming increasingly technology driven. With business operations naturally being looked at through the lens of evolution.
“Global IT spending will total $4.4 trillion in 2022, an increase of 4% from 2021.”
Gartner
Recent global events have drastically accelerated plans to introduce technology.
The pandemic forced companies to find new and innovative ways of connecting employees and customers alike across increasingly large distances.
But some remain sceptical as to how positive an impact digital transformation can have.
To help distil the data, here at Anthill we’ve sifted through the facts to showcase precisely how digital transformation can help your enterprise improve both internally and externally.
What Is Digital Transformation?
Digital transformation encompasses a wide array of actions. But as a starting point, it can be easily understood as the adoption of digital technology to transform services or businesses.
“The leading drivers are market pressures.
51% of efforts arise out of growth opportunities and 41% out of increased competitive pressure.”
Prophet
It is often attained through replacing non-digital or manual processes with digital alternatives or replacing older technology with newer systems.
Think of a retailer allowing customers to use virtual reality apps to visualise its furniture from the comfort of their home.
Or staff across stores, regions and locations having one central hub for customer data, replacing paper files with live, accurate records.
Legacy tech remains a major hindrance to modernisation and ongoing success.
By contrast, thinking, planning, and building digitally sets you up for growth.
Context For Digital Transformation
Having defined the concept, it seems prudent to set the scene for change.
“89% of companies have implemented or adopted a digital first strategy.”
IDG
“Only 21% of companies believe they’ve completed their transformation.”
Forrester
As is apparent, many business are aware of the need for digital transformation.
There aren’t however many who can claim to have completed their journey.
This is in equal parts due to the constantly improving technology available and the acceptance that business processes require continuous improvement to stay at the cutting edge.
It is in the latter of these two factors, that the context for digital transformation can be showcased.
“27% of executives see digital transformation as a matter of survival.”
Lexology
Simply put, a lack of evolution could mean the end of your business as you know it.
• Operational Transformation: From Where You Are Now To Where You Want To Be
• Why A Legacy ERP Is Holding Your Business Back
• The Evolutionary Process Of Continuous Improvement
Benefits Of Digital Transformation
As such, the benefits of implementing an effective digital transformation are ginormous.
The statistics speak for themselves…
“80% of organisations report increased profits.”
“85% of companies say they have increased their market share.”
“On average, leaders expect 23% higher revenue growth than competitors.”
“Enhanced communication systems assist in retaining top talent by as much as 450%.”
“Improved collaboration and teamwork increase sales by 27%, product quality by 34%, and product development by 30%.”
“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%.”
“Digitally mature companies are 23% more profitable than their less mature peers.”
Savings on time. Savings on resources. Savings on expenditure.
Increases in efficiency. Increases in productivity. Increases in revenue.
Can you afford not to engage in your own digital transformation?
Risks Of Digital Transformation
That does not mean however, that this is a completely risk free undertaking.
“Only 30% of companies navigate a digital transformation successfully.”
BCG
Research shows many companies struggle to attain their desired outcomes.
Whilst several companies fall foul of over optimising, or failing to account for “real-world” impacts of introducing a new technology or process.
“Only 16% of employees believe their company’s digital reforms have enhanced productivity and are long-term sustainable.”
McKinsey
Change is essential. But can become harmful, if the appropriate measures are not taken to ensure it’s long term viability and success.
• 6 Benefits Of Digital Transformation
• How Technology Can Accelerate Sales And Drive Revenue
• 17 Reasons Why You Need Anthill
ROI Of Digital Transformation
Last of all, we chose to look into the ROI of digital transformation.
As with any new project, there are associated costs. And getting rid of outdated systems and introducing the latest iteration of the alternative can have significant financial and temporal costs.
So is it worth the effort?
The answer is yes.
“56% of CEOs say digital improvements have led to increased revenue.”
Gartner
“87% of businesses believe digital will disrupt their industry. However, just 44% are prepared for the disruption.
This is the time to get ahead.”
Deloitte
“143% of expected ROI is achieved by businesses with effective change management programs.”
McKinsey
If you’re still asking yourself, can digital transformation make a difference, simply imagine what any of these improvements would mean for your own successes.
When undertaken with the proper preparation and business specific research, it is a game changer for each and every organisation.
And there’s no time like the present to get your own journey underway.
Ready to explore how Anthill’s technology can help initiate your digital transformation? Schedule a demo today.
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- October 12th, 2022