Study shows Digital Transformation is the top priority for 75% of the businesses
‘Digital transformation’ is a term commonly used to label the changes associated with the application and present development of digital technologies in the current workplace, and for just reasons. More than 60 percent of the Senior Executives believe that they will achieve their annual goals, despite the need for significant organizational changes owing to the advent of digital transformation.
According to a Pegasystems sponsored survey conducted by the Economist Intelligence Unit (EIU), Digital Transformation is the key priority for most companies in 2016 (77%), however, poor financial performance still proves itself to be the main culprit for not attaining those digital transformation goals.
“This strategic importance reflects the rate of alteration that Executives are witnessing in their industries. Over six in ten (62%) executives surveyed, report that the pace of change related to digital transformation is “accelerating significantly” in their industry.”
Almost everyone (96%) believed that the impact of this advancement was noticed mainly in large companies because of their inability to quickly adjust to the fast-paced, developing environment. In accordance to this study, 74% of companies with over 5 billion dollars in annual revenue noticed remarkably expeditious changes in their industry, compared to only 50% of the smaller firms.
Nevertheless, Executives consider Digital Disruption as an opportunity to leverage and boost their competitive position. About half of the people surveyed, recognized “areas where we can seize competitive advantage” as factors that will influence the most of their digital transformation concerns in 2016.
When asked about their digital transformation focal points, 48% of the respondants admitted to being driven by the intent to achieve a competitive edge. Nonetheless, on the other hand, the report also shows that most organizations expect digital transformation to be a difficult objective to attain. The reason for this conclusion constitutes in the statement below:
“Respondents identified a lack of Executive sponsorship as a critical impediment to reaching their goals. Forty percent of respondents claimed that senior leaders need to increase their oversight of digital transformation initiatives – meaning that change needs to be actively driven from the top.”
According to 57% of the respondants, the primary purpose of digital transformation is to enhance consumer service, while from an internal perspective, process optimization ranks as the most common goal, cited by 38% of the respondents. This far outweighs focus on employee experience, with just 14 percent of the business leaders concentrating on improved employee engagement.
Within the technological level, the main sections of the investment based on research are:
- Big data and analytics technologies (58%)
- Mobile computing (36%)
- Software as a service (29%)
Big data and analytics, the report says, are steady throughout the verticals by which respondents are active. Pegasystems’ CTO and Vice President of product marketing, Don Schuerman said: “The future of many companies now depends on their ability to translate digital potential into a competitive advantage. This is an all-encompassing effort that requires top executives to champion the deployment of flexible, digital technologies that change the way they engage with their customers.”