Digital Transformation – Everyone Else Is Doing It, Are You?
In this era of digitalization, where consumers and companies alike are moving more and more towards online experiences and transactions, where does your company land in terms of your digital progress?
According to a recent survey by Gartner, it is apparent that companies across all industries either have the desire to or are in the midst of a digital transformation. Some have even managed to successfully scale their businesses digitally and are reaping the benefits while continuing to expand their online presence. This includes activities like:
- Bringing their businesses to the web
- Creating online customer experiences
- Developing new web and mobile revenue streams, etc.
Having said this, the progress of digital transformation differs from industry to industry, depending on a number of factors.
As digital initiatives become more and more widely adopted, companies now have more freedom to think outside the box, and break from tradition to drive growth through digital transformation.
Top Industries for Digital Progress
Based on Gartner’s CIO Survey 2018, the top 3 industries that have had the most success in scaling their businesses digitally are:
- Financial Services
On further assessment of these top performers, it’s apparent that their success is based not only on progress towards increasing their digital revenue, but also because they are optimizing their internal processes to support these technological initiatives.
One of the main reasons that these 3 industries are winning in digital progress may be simply due to the competitive climate of these industries. All 3 of these sectors are saturated with companies that are facing an increasing amount of competitive pressure from their peers to win over more customers, market share, exposure, and brand awareness.
Information-Intensive Vs. Asset-Intensive
One of the main traits that all of the top performers in digital progress seem to share, is that they come from information-rich industries that are able to provide more digital-only products. For Media, Telecom, and Financial organizations, whose focus is optimizing the customer experience and offerings, it’s much easier to bring that information online to provide an easy-to-access digital experience.
On the flip side, asset-intensive sectors like natural resources, manufacturing, and utilities seem to fall into the lower end of the digital business spectrum.
How to Measure the Success of Your Digital Transformation?
When considering where you sit in the digital business spectrum, especially in comparison to your competitors, it’s important to consider the following:
- What percentage of your processes have been optimized digitally to become more efficient?
- What percentage of your company’s current total revenue comes from digital sales?
As you consider these questions, it’s important to note that on average, only about 34% of processes across industries are optimized digitally, and digital revenue only accounts for an average of 18% of the total company revenue.
So, while companies across industries are all about going digital, not everyone is actively in the process, and of these, only a small percentage have seen success so far.
BUT, this means that there is room for growth.
This is good news if you are currently in the midst of a digital transformation, because it puts you ahead of others, including your competition.
Want to see exactly where you sit in the land of digital progress? Gartner’s digital assessment tool will show you exactly that.
Staying Ahead of the Curve – Common Traits for Top Digital Performers
The common ground for all top performers in digital transformation, is their team and their dedication to build and sustain an organizational structure that is focused on digital business. Below are the common factors that lead to a successful transformation: