11 Stats to Highlight the Importance of Digital Transformation

11 Stats to Highlight the Importance of Digital Transformation

Digital transformation in all industries is accelerating like never before. With the emergence of COVID-19, spending on digital transformation is predicted to grow by 10.4% in 2020 in order to deal with the changing circumstances. Given the rate at which companies are accelerating their spending on digital strategies, it is important to highlight why digital transformation is necessary regardless of the current world situation.

Digital Transformation is Disruptive

New technology is constantly disrupting the way we live and how businesses are operated. Just like how email completely changed how we communicate, and the personal computer revolutionized the efficiency and quality of our work, digital transformation is revolutionizing efficiency, precision, and safety in the workplace. It is a disruptive force that will soon be as commonplace as email and computers are today.

  • Due to digital disruption, 52% of companies in the Fortune 500 have gone bankrupt, been acquired, or shut down due since 2000 – Source
  • 87% of companies believe that digital will disrupt their industry, but only 44% are prepared for it – Source
  • 59% of companies fear they are too late in their digital transformation efforts and will fall behind competitively as a result – Source

Tangible Benefits

As with any new technology, there needs to be some sort of benefit that is attractive enough for companies to adopt it. The term “digital transformation” encompasses a wide variety of technology, such as artificial intelligence and IoT. Developing an effective strategy to deploy these technologies can open up a world of benefits for a company.

  • Digitally mature companies are 26% more profitable, they generate 9% more revenue, and achieve a 12% higher market valuation – Source
  • Start-ups can increase revenue by 34% when relying on digital first strategies rather than traditional approaches – Source
  • 87% of CIOs believe providing employees with digital technology will drive at least 5% more revenue over 3 years – Source
  • 56% of CEOs say that their digital improvements have already increased profits – Source

It is a Competitive Necessity 

When disruptive forces that produce benefits as large as digital transformation enter the market, companies in all industries will jump on the opportunity. A company operating 26% more profitably will put a massive strain on its competition, and eventually the competition will die off unless they implement their own digital strategy.

  • 87% of companies believe that digital transformation provides a competitive opportunity – Source
  • 27% of executives perceive digital transformation as a “matter of survival” – Source

Not everyone is there yet

Despite the necessity of digital transformation, not everyone has started down their transformation path. Luckily, digital transformation is still in its early stages and there is still time for companies to initiate theirs. The sooner a company begins strategizing its digital approach, the better off it will be competing in the near future.

  • 70% of companies either have a digital strategy in place or are currently working on one – Source
  • Only 7% of companies believe they have implemented a full digital transformation – Source

Conclusion

The main takeaways from this article are that digital transformation is real and it is a highly disruptive force that shouldn’t be ignored. At the end of the day it provides significant increases to revenue / profitability and allows a company to compete more effectively in the future.

Get in touch with a digital transformation specialist from A4 Systems and start planning your transformation today: sales@A4.Systems