Ultimate Compilation of Digital Transformation Statistics

June 14, 2020

The business landscape is transforming at a rapid pace, from trends and technology to models and strategies. Because its state is ever-changing and always evolving, it is difficult yet imperative for businesses to keep up-to-date with the latest digital transformation trends to stay ahead of the competition. 


Although, you can turn to a digital transformation consulting agency to help develop a strategy specific to your business, it is still vital to keep up with the constant developments in the industry. Finding the most relevant information and data to help inform and guide your business strategies can be laborious, but we’re here to help.


We have been keeping an eye on the latest digital transformation statistics for quite some time now—to make your research less daunting, we have compiled the essentials together and put them into perspective. This way, businesses like yours can stay ahead of the curve and constantly be updated on the state of digital transformation.


Amplify brand awareness, reach your customers, boost conversions, increase sales, and improve your business processes with this Ultimate Compilation of Digital Transformation Statistics. It is a must-read—whether you are focused on digital marketing, search engine optimization, IT systems, process automation, artificial intelligence (AI), or cloud computing. 


Adoption and Preparedness

  • 34% of businesses already have a transformation programme in place, which is an increase from the 30% who last year had a programme set up. (Smart Insights)
  • 31% are looking to launch a digital transformation programme imminently. (Smart Insights)
  • 55% of startups have already adopted a digital business strategy compared to 38% of traditional enterprises. (IDG)
  • 56% of CEOs said digital improvements have led to revenue growth. (Gartner)
  • An additional 34% of companies say they’ll fully adopt digital transformation in the next 12 months. (Seagate)
  • 89% of organizations have plans to adopt a digital-first business strategy, however only 44% have fully adopted this approach. (IDG)
  • 85% of enterprise decision makers feel they have a timeframe of two years to make significant inroads on their digital transformation before suffering financially an/or falling behind their competitors. (Progress)
  • Key digital drivers of digital transformation include: growth opportunities in new markets (51%), evolving customer behaviors and preferences (46%), increased competitive pressure (41%), evolving employee behaviors and preferences (26%), and proactive investment to fight disruption (26%). (Altimeter)
  • 70% of leaders said implementing such a multifunctional digital platforms is a current priority, and 76% plan to do so. (SAP)
  • 93% of the leaders say technology is critically important or very important to retain competitive advantage. (SAP)


Challenges and Failures

  • 60% of companies think they’re providing a good mobile experience, but only 22% of consumers feel the same. (Qualtrics)
  • 71% of consumers want a consistent experience across all channels, but only 29% say they actually get it. (Gladly)
  • The top 5 barriers to digital transformation are (Tech Republic):

          1. Budget Constraints (51%)

          2. Overly complex or rigid legacy IT infrastructure (45%)

          3. Lack of full visibility across the digital or end user experience (40%)

          4. Lack of available or appropriately-skilled personnel (39%)

          5. Lack of buy-in from leadership on prioritizing digital initiatives (37%)

  • IT issues are a major barrier for 62% of organizations when it comes to successfully adopting digital transformation initiatives. (Dimension Data)
  • When asked about the barriers preventing them from delivering more personalized digital customer experiences, 72% of respondents consider the lack of skilled digital marketers/analysts a pressing or routine challenge. (Adobe)
  • In delivering more personalized digital customer experiences, inadequate digital marketing tools was the second most pressing challenge for 71% of respondents. (Adobe)
  • A third (33%) of organizations have cancelled a digital transformation project in the past two years. (Fujitsu)
  • The average cost of a failed project is more than € 500,000. (Fujitsu)


Leadership

  • 87% of CIOs believe digitally empowering employees can drive at least 5% additional revenue growth over 3 years. (Dizzion)
  • Companies that engage their Chief Digital Officers (CDO) are 1.6 times more likely than others to report a successful digital transformation. (Mckinsey)
  • 54% of CIOs agreed that the ability for their workforce to more easily access business applications has reduced attrition rates. (Dizzion)
  • 84% of Chief Information Officers focus on the mobile customer experience. (IBM Institute for Business Value)
  • 47% of Chief Information Officers say they need new skills to implement Artificial Intelligence (AI). (Medium)
  • Digital transformation initiatives are currently led by different individuals: CMOs – 34%, CEOs – 27%, CIOs or CTOs – 19%, CDOs – 15%, CXOs – 5%. (Altimeter Prophet)
  • 44% of executives say that knowing the business and being able to conceptualize how new digital technologies can impact current processes and models is the biggest missing organizational skill. (Dev.to)
  • A successful digital transformation is an enterprise-wide effort that is best served by a leader with broad organizational purview. For the second year in a row, CIOs are reported as most often owning or sponsoring digital transformation initiatives (28%), with CEOs increasingly playing a leadership role (23%). Boards are also becoming more prominent sponsors of digital transformation (14%). (Altimeter Prophet)
  • Among small businesses (revenue less than $10 million), CDOs and CEOs lead an equal share of digital transformation efforts, at 33 percent each . The CIO leads 0 percent of digital transformation efforts among small businesses surveyed In larger businesses ($10 million to $500 million in revenue), CIOs are leading 60 percent of digital transformation efforts; CEOs lead 17 percent . Among these organizations, too, CDOs guide 3 percent of such efforts. (Constellation Research)
  • IT and business leaders report being more aligned than ever before: 72% of IT leaders report they are aligned with the business versus 57% in 2018. (Mulesoft)
  • Digital transformation is a core business goal for 96% of leaders of the leading 100 companies. (SAP)
  • 57% of leaders report dramatically higher product quality and cost reduction than laggards. (IBM)
  • Among those with a formal strategy, the leading industry is retail services, with 54% having a formal strategy. (Century Link)
  • Only 35% have the leadership capabilities required to achieve digital mastery. (Capgemini)
  • 70% of digital leaders believe networking capabilities underpin digital transformation initiatives. (Verizon)
  • 83% of digital leaders trust their Communications Service Provider to enable their digital transformation. (Verizon)


Workplace

  • 71% of digitally maturing companies say they attract new talent based on their digital vision. (Dev.to)
  • 95% of organizations agree that a digital workplace is important. (Dizzion)
  • 87% of businesses expect digital transformation to have a positive impact on employee experiences when working at the company as well as on employee productivity (Dev.to)
  • The top three challenges to creating a digital workplace are: Budget constraints (41%), Lack of cross-departmental collaboration (31%), and Limitations of current platforms (30%). (Dizzion)
  • Almost half (48%) claim to engage in fostering a digital work culture. (Sales Force)


Investment

  • 31% of businesses say they are investing more than 15% of revenue into technology investments that span all areas of the business, not just IT. (Dev.to)
  • 68% of technology spending is now coming from budgets outside of IT. (Dev.to)
  • When we asked executives about the types of investments in innovation their organizations were making, 47% responded that they were investing in building a culture of innovation, as mandated at the executive level. (Altimeter Prophet)
  • Up 80% from last year, 36% of companies surveyed have created corporate VC branches to invest in funds and startups or acquire companies that could help them further innovate. (Altimeter Prophet)
  • 77 percent of organizations surveyed are either investing in or evaluating investments in IoT technology. Constellation expects IoT investment to rise steadily over the next few years as 20 percent of respondents said their organization is evaluating IoT for implementation. (Constellation Research)
  • Despite the fact that IT project demands will increase by 32% this year, the majority (79%) of IT respondents will see a budget increase of less than 10%. (Mulesoft)


Security

  • 27% of organizations say that they have successfully completed the digital journey to data security/ protection strategy. (IDG)
  • Over three out of four IT leaders feel that the overall state of enterprise mobile security is improving. (Enterprise Mobility Exchange) 
  • Security is no longer viewed as the top enterprise mobility challenge. IT leaders pinpointed at least six other mobility challenges that were greater than security, including budgeting. The fact that security is only the 7th biggest mobility challenge is a sign of changing times. (Enterprise Mobility Exchange)
  • 65 percent of respondents say the inability to secure the digital transformation process and environment is a deterrent to achieving a successful digital transformation process. (IBM)
  • Only 41 percent of respondents say their organizations have a strategy to protect data assets and maintain customer trust  for achieving digital transformation. Of those companies that have a strategy, less than half (47 percent of respondents) say the strategy includes the protection of data assets and only 43 percent of respondents say the strategy involves maintaining customer and consumer trust. (IBM)
  • Only 29 percent of respondents believe their management understands how consumer and customer trust is affected by not securing digital assets. (IBM)
  • 49% of companies are building security and privacy into all devices, applications and algorithms. (Dell)
  • 58% of companies are planning on investing in cyber security in the next 1-3 years. (Dell)


Ethics

  • Only 48% of millennials believe that corporations behave ethically compared to 65% last year. (Deloitte)
  • Only 47% of millennials believe business leaders are committed to helping improve society versus 62% last year. (Deloitte)
  • 74 percent of respondents say it is likely their organization experienced a data breach in the past year because of a lack of security in the digital transformation process. (IBM)
  • Most of these data breaches involved the loss or theft of customer or consumer records (68 percent of respondents). (IBM)
  • Customer Experience
  • 44% of companies have already moved to a digital-first approach for customer experience. (IDG)
  • Two-thirds of global CEOs will start focusing on digital strategies to improve customer experience by the end of 2019. (Seagate)
  • 53% of consumers expect a response from customer service within an hour or less. (Edelman Digital)
  • By 2020, more than 40 percent of all data analytics projects will relate to an aspect of customer experience. (Gartner)
  • Email is the most commonly used customer service channel, with 54% of consumers using email to contact a company in 2018. (Forrester)
  • Only 22 percent of global customers acknowledge that the companies with which they do business tailor their experiences based on a deep understanding of their needs, preferences and past interactions. (Accenture)
  • 73 percent of CEOs acknowledge the need for products, services and experiences that are more meaningful to their customers. (Accenture)
  • 43% of millennials contact customer service from a mobile device. (Microsoft)
  • 96% of millennials say customer service is important in their choice of loyalty to a brand. (Microsoft)
  • 79% of millennial respondents have a more favourable view of brands that offer a mobile-responsive customer support portal. (Microsoft)
  • 90% of consumers expect companies to have an online self-service support portal for customer service. (Microsoft)
  • 66% of consumers have actively used three or more customer service channels to contact a brand. (Microsoft)


Manufacturing

  • In complex projects where numerous subcontractors often work in silos, digitizing the engineering phase enables centralized integration among projects and systems, thereby streamlining the work. As a result, digital transformation can drive significant savings in engineering costs and time optimization. Our analysis indeed indicates that our customers on average saved 35 percent in this area, and one customer saved 80 percent. (Schneider Electric)
  • Digitization extends equipment longevity by ensuring assets are optimally maintained throughout the life cycle. Digitizing also enables cloud analytic tools to make timely recommendations based on reams of historical and real-time data. Results from Schneider Electric customers indicate that these savings can be substantial — up to 50 percent reductions in investment costs, with an average savings of 23 percent. (Schneider Electric)
  • Due to digitalization in the installation process and commissioning of new equipment, deployment times shrank by 65 percent, while engineering costs dropped by 25 percent. (Schneider Electric)
  • With digitalization, companies consume less energy without sacrificing productivity or comfort, with energy consumption savings reaching up to 85%. (Schneider Electric)
  • Digital transformation led to productivity gains up to 50%. (Schneider Electric)


Healthcare

  • 55% of R&D executives confirm their companies are adopting digital. (Accenture Life Sciences)
  • 42% characterize their companies as exploring digital. (Accenture Life Sciences)
  • 3% are “waiting and seeing” how digital is deployed before ramping up internal capabilities. (Accenture Life Sciences)
  • Most consumers are open to the use of digital in healthcare, with the top three reasons that drive their preference being: Search for doctor ratings and reviews (79%); Pay my health-insurance bills (77%); Monitor my daily health metrics (75%). (Mckinsey)
  • Only 20 to 30 percent of patients have access to digital technologies like medical questions or electronic reminders. (Nielsen Strategic Health Perspectives)


Technology

  • By 2020, 25% of customer service operations will use virtual customer assistants like chatbots, up from 2% in 2017. (Gartner)
  • AI spending is expected to total $35.8 billion in 2019, a 44% jump from 2018. (IDC)
  • 70% of enterprises will use a multi-cloud strategy by 2019 compared with less than 10% in 2017. (Medium)
  • 63% of consumers are satisfied getting service from a chatbot, as long as they have the option to move the conversation to a human if needed. (Forrester)
  • 76% of companies are investing in emerging technology. (Accenture)
  • 15% of all customer service interactions will be handled solely by AI in 2021, a 400% increase from 2017. (Gartner)
  • 31% of companies have invested in AI in an effort to get ahead of the competition. (Accenture)
  • Top five digital technologies already implemented are: big data/analytics (59%), mobile technology (59%), private cloud (53%), public cloud (45%), and APIs/embeddables (40%). (IDG)
  • Top five technologies in the works in the next 12 months: artificial intelligence (56%), machine learning (55%), internet of things (50%), software defined networking (45%), and software defined storage (44%). (IDG)
  • 49% of IT decision-makers say that IoT plays a role in their digital business strategy. (IDG)
  • 61% of enterprise organizations say that IoT plays a role in their digital business strategy. (IDG)
  • 39% of SMBs say that IoT plays a role in their digital business strategy. (IDG)
  • Currently, IoT is primarily being used to manage IT assets on performance, risk management, compliance and security (57%), monitor equipment (53%) and collect customer or product data via sensors (41%), to name a few functions. (IDG)
  • Research shows more than two-thirds (68%) believe the future of business will involve people and AI working collaboratively. (PTC)
  • 88% of companies believe data science, AI and blockchain can create a whole new customer view. (Sparkwork)
  • 92% of businesses say that intelligent automation will be integrated during the next 12 months. (Sparkwork)
  • 94% of IT survey respondents reported significant benefits from adopting SaaS. (Better Cloud)
  • Forty-eight percent of organisations say they adopt cloud- based services because it’s a better cost model compared to traditional deployment methods, and nearly half of those (21%) say that is their topmost reason for moving to the cloud. (Dimension Data)


Use these digital disruption statistics to fortify any internal or external plans you want the rest of your company to support.

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Written by
Alexander Rauser
Alexander Rauser

CEO

Alexander Rauser is the author of Boardroom Guide to Digital Accountability and Digital Strategy: A Guide to Digital Business Transformation, and creator of the DSX Program, a digital strategy and transformation program for Enterprises.

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