Posted by David Monk almost 2 years ago
Business investment in digital innovation and transformation is set to increase in the coming 12 months. According to a new global survey by the Economist Intelligence Unit (EIU) and DXC Technology, 83% of business executives expect their organisations to increase digital investment in the coming year.
The study, 2019: The Year of Digital Decisions, surveyed 621 senior executives to discover how companies define digital transformation, the barriers to its success, and the business outcomes of their efforts.
In terms of digital technology’s impact on increased expenditure, 83% said they expected their companies to up their digital investments in 2019. In addition, 40% of those questioned estimated that their organisations would boost their digital transformation investment by at least 11%.
Any digital transformation programme requires initial expenditure, but the effort is often financially rewarded. According to 68% of the companies questioned, their digital strategy has led to an increase in annual profitability.
The report highlighted the link between digital transformation and greater agility. 75% of those polled agreed that digital technology helps create a more flexible, adaptable business – a particularly significant benefit in today’s uncertain economic climate.
The report highlighted the importance of selecting the right digital products and ensuring employees are engaged with the digital transformation initiative. Looking forward, 74% of respondents said they were optimistic that profitability would increase over the coming three years.
The successful implementation of digital technology can also play a part in reducing operating costs. 75% of polled companies expected the cost savings generated from new IT tools and services to be vital in helping fund future digital transformation investments.
However, there’s more to digital transformation than the technology alone; people need to understand the vision and be able to take it forward. This means having the right company culture – 72% of companies said that a change in workplace culture is crucial in realising a smooth, successful transformation.
In terms of barriers to digital transformation success, respondents cited security concerns (40%) and prohibitive costs or lack of funding (35%).
Speaking about the findings, senior vice president and chief technology officer at DXC Technology Dan Hushon stated: “Companies overwhelmingly recognize that digital innovation is now a requirement for them to compete and succeed.
“The survey findings point to perhaps the most rapid, dramatic and sophisticated effort at reinvention that major businesses have attempted in many decades, and those surveyed are committed to investing to make digital happen.”
If you’re investing in digital innovation this year and looking for the right talent to make your transformation efforts a success, speak to the team at Hunter Charles today.