Despite all the talk of digital transformation, only 3 per cent of global companies have actually completed company-wide transformation efforts, according to a study from SAP SE and Oxford Economics.
The survey canvassed 3000 senior executives across 17 countries and regions, with the results identifying the Top 100 companies – Digital Leaders – which are best at connecting people, things and businesses.
Already, a lag in adoption of digital technologies is having an impact on competitive standing: those that have embraced mass digital changes report significantly higher levels of market share (85 per cent versus 41 per cent) and profitability (80 per cent versus 53 per cent).
Companies leading in the survey expect to see around 23 per cent more revenue growth over the next two years, compared with other organisations, and digital transformation was cited as a top three driver of future revenue across all industries and company size.
For companies looking to accelerate their process, the survey identified four key traits amongst Digital Leaders:
- They see digital transformation as truly transformational: 96 per cent of leaders say digital transformation is a core business goal, compared to 61 per cent of all others. The transformation extends through their company, to how they interact with customers, suppliers and partners.
- They focus on customer-facing functions first: 70 per cent of Leaders say digital transformation is already delivering increased customer satisfaction versus 22 per cent of all others. The customer experience is the gateway to a successful digital transformation.
- They prioritise talent: 71 per cent of Leaders say that digital transformation efforts make it easier to attract and retain talent versus 54 per cent of all others. They also spend more on retraining the existing workforce than their peers.
- They invest in next-generation technologies: 50 per cent of Leaders are already working with artificial intelligence and machine learning, compared to 7 per cent of all others. They are also investing more heavily in big data and analytics (94 per cent versus 60 per cent) and the Internet of Things (76 per cent versus 52 per cent). Using a bimodal IT architecture lets them run legacy systems efficiently while rapidly integrating new technologies.
“Digital transformation is no longer a choice, it’s an essential driver of revenue, profit and growth,” said Vivek Bapat, senior vice president, global head of marketing strategy and thought leadership, SAP SE.
“Executives need to move from simply understanding the high stakes to activating complete end-to-end execution across their business. This requires innovative breakthrough technologies, investing in digital skills, and retraining the existing workforce. The next two years will be a key inflection point, which will separate the digital winners from those left behind.”
To learn more about the study, visit www.sap.com/execstudy.
