Mexico. While companies recognize the importance of digital transformation, organizations around the world struggle to balance the elements needed to go digital. This is one of the conclusions of Fujitsu's new report: PACT (People, Actions, Collaboration and Technology). This independent study aims to know the state of digital transformation (TD) in companies globally and its impact on the future.
Of 1,625 business leaders surveyed, one in three (33%) confess to having cancelled a project in the last two years at a cost of €423,000, while one in four (28%) has experienced a failure on a project with an involvement of €555,000. 84% of companies say their customers expect them to be more digital, while 71% believe they are behind their competitors. Ultimately, two in three (66%) believe they will lose customers relative to their competitors as a result of digital transformation.
Performing digital transformation is much more than just technology. Research commissioned by Fujitsu examines how companies are evolving in the face of the four strategic elements needed to digitally transform: People, Actions, Collaboration and Technology (PACT). Organizations recognize the importance of digital transformation as most companies (46%) have already implemented transformation projects, while 86% say they are planning for the impact of technology on their business beyond the next 12 months. However, companies continue to face challenges in the four pillars of PACT.
People
When considering their approach to the people involved in digital transformation, the vast majority of business leaders (90%) are taking steps to increase their access to the digital experience, with 70% admitting that there is a clear lack of digital skills within their organization. For example, 80% say that lack of skills is the biggest obstacle to addressing cybersecurity. Looking ahead, these will continue to be a key issue. 93% say their improvement will be vital to their organization's success over the next three years, while 83% believe AI will transform the capabilities needed by 2020.
Actions
When it comes to actions, i.e. the processes and behaviors needed for digital transformation to work, 9 in 10 business leaders (90%) say their organization has a clearly defined digital strategy, while 83% trust the rest of the business to know what it is. However, three-quarters (74%) say projects are often carried out that are not tied to the overall business strategy, while 72% say that shadow IT projects are the only way part of the organization can complete significant innovation. Crucially, two in three (66%) say the cost of failure has placed them out of future digital transformation.
Collaboration
Business leaders are taking positive steps in collaboration, with the majority of companies undertaking or planning to initiate co-creation projects (63%), with tech-savvy partners (64%) and existing customers (42%). Surprisingly, 79% would even be willing to share sensitive information as part of these co-creation projects; however, 73% say a lack of success within a quick time frame would end their strategic alliances.
Technology
When it comes to technology, business leaders plan to implement a wide range of systems; in the next 12 months, more than half are planning to introduce cybersecurity (52%) or Internet of Things (51%) solutions, closely followed by cloud computing (47%) and Artificial Intelligence (46%). Business leaders are aware of the disruptive impact of technological change, with 86% saying the ability to change will be crucial to their survival over the next five years. However, 71% are concerned about their organization's ability to adapt to technologies such as artificial intelligence.
The Report
To access the study, click here.
This quantitative research was conducted in July and August 2017 by the independent research company Censuswide. It surveyed 1,625 business decision makers in medium and large enterprises across the public sector, financial services, retail and manufacturing. All respondents had already submitted a digital transformation project or expressed interest in doing so in the future.
