Is the digital crisis coming?
The digital crisis is approaching. Almost 1 in 2 business leaders are afraid that digital initiatives will take over their business within 3-5 years.
According to a new study by Dell Technologies, 78 percent of businesses believe digital initiatives will pose a threat to their organizations now or in the future. This pushes innovative companies forward, while non-innovators speed up the sink. Nearly half (45 percent) of businesses surveyed all over the world are afraid that their businesses will fall into fashionable footprint over the next three to five years due to the competition that digital-born new companies have brought.
Some companies even feel they can get badly injured from the pace of change. More than half of business world leaders (52 per cent) have experienced significant devastation in their industries over the past three years as a result of digital technologies and the Internet of Things, while 48 per cent of businesses around the world do not know how their industry will be shaped within three years.
The survey results came out at the end of a study by Vanson Bourne (VB) with 4 thousand leaders from medium and large-scale institutions across 16 countries and 12 sectors.
Jeremy Burton, Dell Technologies CMO, said, “So far, the fourth industrial revolution has clearly shown that it will be as ruthless as before. If companies can not keep up, they will be left behind or worse. ‘Postponing tomorrow’ approach, it will definitely not work. ”
Irregular Progress or Digital Crisis on the Road?
At least it can be said that progress has been erratic. Some companies barely started digital conversions. Most companies have adopted a disorganized approach. Only a small minority has completed digital transformations. Only one out of every three participating in the survey is doing well in critical digital business needs. Only a fraction of most of the business thinks and acts digitally, and the vast majority (73 percent) acknowledges that digital transformation can be more prevalent across the enterprise.
Approximately six out of ten companies are unable to meet customers’ major demands, such as better security, better service, and faster access to information. Approximately two-thirds (64 percent) admit they could not react timely to the intelligence received. Burton goes on to say: “The things that businesses can not do are essential to success in the digital age. Failing to do so in a market where it’s such a busy race could trigger the beginning of a digital crisis. ”
In 2015, business world leaders agreed on a set of essential digital qualities that businesses must embrace to be successful over the next decade. These:
- Attack innovation
- Identify new opportunities as a predictor
- Show transparency and trust
- Offer unique and personalized experiences
- Being always open, real-time activity
According to last year’s survey, only 4% of enterprises implemented all these key digital business qualities well and company-wide. This year, this figure climbed to 7%. The proportion of businesses that implement any of these qualities well and across the company is also higher this year.
Dell Technologies’ Digital Conversion Index completes the survey and rates companies based on their survey respondents’ views on digital conversion performance. By comparison, only 5% of businesses put themselves in the group of Digital Leaders, while almost half are behind.
- Digital Leaders: 5% – Digital conversion, manipulation of the operator’s DNA in various formats
- Digital Initiatives: 14% – Practical digital plans, investments and innovations
- Digital Evaluators: 34% – Adhere to careful and step-by-step digital transformation, planning and investing for the future
- Digital Audiences: 32% – They have very little digital investments, hesitantly planning for the future
- Digital Remnants: 15% – There is no digital plans in practice, there are limited undertakings and investments
Considering the risk of heavy destruction, businesses are starting to look for a cure. To advance digital conversions:
- 73% agree that they should prioritize a centralized technology strategy for their business
- 66% plan to invest in IT infrastructure and digital skill leadership
- 72% expand software development skills
According to the priority order of participants, the most planned IT investments in the next three years are as follows:
- Converged Infrastructures
- Ultra high performance technologies (eg Flash)
- Analytical, large data and data processing (for example, Data Lakes)
- Internet of things
In addition to this, he explained that between one fourth and one third of the participants achieved a full digital profit (36%). Thirty-five per cent of businesses said they partnered with new ventures to adopt an open innovation model. In addition, 28 percent of businesses have either set up a new company by separating a part of the organization, or intend to acquire the skills and innovation they need through mergers or acquisitions. Only 17% measure success according to the number of patents they apply to, and almost half (46%) integrate digital targets into all departments and staff targets.
Burton concluded his words: “In the near future, almost every business will have software development expertise. Most of these companies will be completely new, others who have not written a single line of code for 20 years, will miss the train. As businesses struggle to manage 1000+ more users and 1000 times more data, new digital products and services will transform the IT infrastructure. “