These ten facts around digital transformation are enough to make the most sceptical of business leaders up their digital ante immediately.
There are different schools of thought on the implementation of digital systems and the approach to digital transformation in the business world. There are, however, a few indisputable points that are accepted universally, namely:
- That digital transformation increases efficiency in businesses of all sizes;
- That the use of effective digital technology tools is a powerful customer influencer; and
- That digital transformation has significant long-term benefits.
Here are some more facts around digital transformation, a process that has gone from being a buzz word hemmed in scepticism, to a course of action businesses cannot afford to forego:
- According to the International Data Corporation’s (IDC) 2020 Spending Guide, digital transformation in the business world continued to grow significantly, despite the disruptions and uncertainty COVID-19 brought.
- In fact, according to a recent PwC CFO Pulse Survey, only 9% of the 52% of companies that plan to cut investments because of COVID-19, will make those cuts in digital transformation.
- An IDC FutureScape in late 2019 forecasted digital transformation investment would grow at a compound annual growth rate (CAGR) of 18% from 2020 to 2023, when it’s expected to approach $7 trillion.
- A 2018 report by the World Economic Forum, in collaboration with Accenture, projects digital transformation will add $100 trillion to the world economy by 2025.
Counting the costs
Those are some staggering figures, all revealing that the future of digital transformation worldwide is bright, to say the least. But, predictably, there are always elements that kick against change. Unfortunately, for this element, the future does not look quite as bright:
- According to Forbes, 61% of consumers will never return to a mobile site if they had trouble accessing it.
- PwC’s “Experience is Everything” report says it only takes one bad experience for 32% of consumers to stop interacting with a brand altogether. And McKinsey echoes the advice of many business and digital experts, saying that companies need to prioritise digital customer experience (in this article, McKinsey focuses on service industries).
- Only 40% of potential customers will give a company’s website a go if they have trouble accessing its mobile site, according to Forbes.
- Research company HFS confirms what the business world is now knows very well, that customer experience is the great differentiator that can make or break a company’s success, and “Designing digital-first for employee and customer experiences is mission critical.”
Everybody’s doing it
So, although buckling to peer pressure is usually not advised – in this “everybody’s doing it” instance, companies cannot afford to resist it.
- Business spending on customer experience is expected to reach $641 billion in 2022. (BusinessWire)
- By 2018, 89% of all companies had already adopted a digital-first business strategy, or planned to do so. (IDG)
All this considered, it’s clear. You need all the help you can get to stay ahead of the competition today. Because it’s never been fiercer.
- IDC – New IDC spending guide shows continued growth for digital transformation in 2020, despite the challenges presented by the COVID-19 pandemic
- IDC – IDC FutureScape: Worldwide Digital Transformation 2020 Predictions
- PwC – COVID-19 CFO Pulse
- PwC – 2020 Global Digital IQ
- World Economic Forum in collaboration with Accenture – Digital Transformation Initiative
- Forbes – Mobile Marketing 101 for Service Businesses
- PwC – Experience is everything: Here’s how to get it right
- McKinsey – Service industries can fuel growth by making digital customer experiences a priority
- HFS – You must rewire your customer experience for the virtual economy
- BusinessWire – Spending on Customer Experience Technologies Will Reach $641 Billion in 2022, According to New IDC Spending Guide
- IDG – 2018 Digital business survey white paper