• A large number of organizations realize that Digital Transformation can have a great impact on their business processes, and it is imperative for them to survive.
• The Digital Transformation leaders are quite less in number.
As per a new report – SAP Digital Transformation Executive Study, from SAP Center for Business Insight and Oxford Economics, released recently, majority of organizations realize that to survive, they need to digitally transform themselves. But, only leading 100 companies (only 3%) have completed their digital transformation projects.
As a result, only these have stronger revenue growth and profitability and the rest of them have to catch up in various areas.
To determine the factors which are driving the digital transformation projects, SAP surveyed 3100 global business companies. It was found that more than one-third of these companies believe in talent management and development for digital growth.
More than 64% of employees in leading companies feel more engaged, and this figure is supposed to increase by over 80% in the next two years.
CIOs with dedication and commitment towards the digital transformation are three times more likely to get value out of it than the others. These leaders also focus on the customer empowerment and technology change.
“Today’s leading businesses are putting their employees at the heart of their digital transformation strategies. This research shows successful digitalization depends on people, with the most innovative and forward looking companies committed to investing in their workforce to ensure they are properly equipped to meet the challenges of tomorrow.” –Greg Tomb, President, SAP SuccessFactors
There are 4 key characteristics that set the leaders apart from the rest:
1. Accepting and emphasizing on true Digital Transformation (DT)
The Digital Transformation is changing the way businesses operate. The businesses are at different points in their transformation journey. 96% leaders believe that Digital Transformation is central to their business goal, as compared to 61% others.
93% leaders believe technology to be crucially important as compared to 72% others. Due to DT, five times more leaders have experienced change in their organization structure as compared to 10% others, without it.
2. Retaining right DT skilled talent
Retaining employees is an essential part of both workforce optimization and business productivity. With skilled workforce that can usher in digital transformation in high demand, key decision makers are heavily making investments for recruiting and training the right talent so that they are better prepared for future challenges.
And 48% of them said that making investment in digital skills would be an important factor for driving revenue within next two years, as compared to only 30% of the other respondents.
3. Transforming customer -facing operations foremost for better customer experience
The best way for organizations to attract and keep customers is to empower and help them. And leaders perceive customer experience important for digital transformation. The successful CIOs have successfully driven customer facing DT efforts to their business processes and extended them to their suppliers and partners as well. 39% of leaders mentioned customer empowerment as a key global trend, versus 23% others.
And 92% of leaders have mature digital transformation strategies to improve the customer experience, versus just 22% for all others.
4. Investing in next-gen technologies in a bimodal architecture
Successful leaders have been found to make good investment in advanced technologies like IoT, Machine Learning, and big data and analytics. This help their organizations be digitally transformed and work to improve productivity and as an extension of workforce without adding high cost for additional employees. They use bimodal architecture for this, so that they can they can keep investing in next generation technologies while making their core infrastructure efficient and cost effective at the same time. This helps them lead and adapt to changing business conditions.
About 94% of successful leaders are investing in big data and analytics compared to 60% others, 50% in machine learning compared to 7% others, and 76% in IoT compared to 52% others.
Thus, success comes to the leaders who are committed to their digital transformation efforts.
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