Successful digital transformation can transform your business model 180 degrees and keep your organization agile and competitive to secure a better future. The advantages of DX are enormous, and all businesses are rushing to implement the best digital strategy. Still not convinced? check out these digital transformation statistics to get inspired.
Let’s face it: digital transformation is challenging to implement and certainly not a one-day task. It necessitates serious commitment from upper management all the way down to all employees, change management, training, financial investments, monitor KPIs, and, most importantly, a clearly defined strategy.
The COVID-19 pandemic has demonstrated that organizations that have not recognized the need to digitally transform their business operations will cease to exist in the near future. In this digital age, businesses cannot afford to operate using outdated methods. As a result, both during and after the pandemic, there was a lot of pressure on all organizations to aggressively invest in digital technologies and get their employees on board.
Let’s get started reviewing the top 13 digital transformation statistics.
What are the top digital transformation statistics?
Organizations must always stay up to date on the latest digital transformation statistics and trends in order to get a clear picture of where the market is headed and pivot their investments into more appropriate technologies to achieve faster results.
Here are 13 surprising statistics about digital transformation that illustrate the impact it has on the business world
1- Market size
The global digital transformation market size was valued at USD 594.6 billion in 2021. The market is projected to grow from USD 594.6 billion in 2021 to USD 2038.9 billion by 2028, exhibiting a CAGR of 22.80% during the forecast period.source: globenewswire.com
One of the major reasons why the market is expected to experience such rapid growth in the upcoming years is the need for organizations to digitally transform their business operations in order to become highly effective and give their employees the ability to access information from any location and complete task-related tasks.
Investing in digital technologies and providing training to quickly adopt and master the ability to get the most out of these solutions now takes up a significant portion of the annual budgets prepared by businesses around the world.
A survey by Deloitte found that 85% of business leaders believe that digital transformation is critical to the success of their organization.
2- Percentage of failing digital transformation initiatives
The failure rate for digital transformation initiatives ranges from 70% to 90%. That can be attributed to a variety of factors, such as unclear objectives or strategies, a lack of funding, a lack of leadership backing, a lack of change management, a complex infrastructure and architectural design, inadequate training, and implementation that isn’t complete.
According to our experience, a lack of change management is the most important factor that organizations need to carefully plan for because if you don’t have the support of all important stakeholders right away, you’ll most likely experience delayed implementations and, in some cases, cancelled projects.
In order to increase your success rate, you should carefully plan each course of action you intend to take and involve all important stakeholders right away.
3- Profitability improvement
A study by McKinsey found that organizations that have embraced digital transformation are 26% more profitable than their peers
Genuine to say, when digital transformation was fully implemented in organizations, we expected more than 26% profitability, but that is still a significant percentage. The productivity of your employees will increase, manual labor will decrease, decision-making will improve, and your business processes will be streamlined when you become a digital enterprise.
4- Increase company market share
55% of businesses believe they have less than a year before they start losing market share if they don’t undergo a digital transformation.
A survey by the Economist Intelligence Unit found that companies that have undergone digital transformation are twice as likely to report increased market share
Your business can respond to market changes more quickly thanks to digital transformation, which also makes it possible to test new ideas and make adjustments based on very early user feedback.
Tools such as low code platforms are increasingly assisting businesses in rapidly deploying digital products to test how the market will respond.
5- Adoption rate
Only 7% of companies have fully implemented digital transformation and are now in the maintenance phase.
Only 7% of the businesses that started the process of digital transformation report having succeeded in their goals. This is as a result of numerous challenges that were previously discussed, and which hampered or postponed their implementation strategy throughout the company.
97% of executives claim that the COVID-19 pandemic accelerated efforts to implement digital transformation.
Even though the COVID19 pandemic had a negative impact on us from all angles, one of its few upsides was that businesses had to learn the value of digital transformation the hard way.
This is one of the most critical digital transformation statistics as over the course of a single night, businesses came to the realization that their current method of conducting work would not serve them well in the future. What’s worse, some businesses have already completely folded because of a lack of logistics.
7- Strategy adoption
70% of organizations have a digital transformation strategy or are working on one
Having a strategy that complements the infrastructure and work ethics of your organization is the most important aspect of DX.
8- Cost of implementation
28% of businesses consider digital transformation to be expensive.
Yes, they are largely correct in terms of the upfront costs involved in getting your business off the ground. But this is one of the digital transformation statistics that you shouldn’t let worry you. Instead, every dollar spent on moving your company entirely online is an investment that was made wisely.
By the time you started using digital technologies more frequently, you would have cut many operational costs and begun tracking your ROI.
9- Departments to start with
IT, customer care, and marketing departments have been excelling in technology adoption
These are the best departments to start with for your implementation, according to Futurum. As they are most prepared to work with digital technologies, we advise starting with the IT department.
10- AI adoption
“By 2025, we predict AI-powered enterprises will be able to respond to market conditions in half the time of their peers,” Gens said. “This wide and deep infusion of AI is going to impact every IT organization.”source: IDC
In the digital age, AI is a dominant force in every sector, and according to IDC, organizations will be able to respond to market change with AI while saving up to 50% of their current response time.
11- The importance of digital transformation as per statistics
At least 40% of all businesses will die in the next 10 years if they don’t figure out how to change their entire company to accommodate new technologies. John Chambers emphasizes the importance for businesses across all industries to digitally transform as soon as possible to future proof their existence.
We recommend checking this article to get inspired by the top digital transformation quotes.
What is the success rate of digital transformation?
The success rate of digital transformation is between 5% and 30%. There are many reasons why the percentage is low including exceed budget, fail to meet basic business goals, resistance to change within the organization, lack of understanding or expertise in the necessary technologies, and lack of effective leadership.