Companies that undergo a digital transformation are 26% more profitable
Long-standing companies and newcomers alike pose the very same question: why to transform? As change is often arduous and costly, it doesn't come as a surprise that both managing executives and IT analysts express doubts about the need for digital transformation.
However, a quick look on the results obtained by those organizations that already dared their own digital transformation offers solace to even the hardest of the hardliner skepticals.
According to research results, companies that apply digital technologies to their core businesses are 26% more profitable than those that don't. Moreover, more than 30% of those operating in the insurance, retail banking and travel industries have already gone digital. An increase in profits is not only reassuring, but also a clear indicator of the necessity for digital transformation across all industries in the current marketplace.
By using IT in management, companies expand their reach, improve performance and efficiency. They also tap on a new generation of potential customers and employees: the early adopters of Generation Y and the always connected Millenials.
Did you know that in the last decade, the number of internet users multiplied? In 2013, more than 30% of the world's population has access to a computer connected to the internet. That makes for around 2.5 billion customers waiting to be wooed online. Newcomers quickly learn how to share content on the web and are avid users of social media. From them, a little over 500 million are sitting in Europe and around 1 million are sitting in Asia. Another 90 million are located in the Middle East.
These new generations of employees and customers are demanding, always-connected, social geeks. Their purchase decisions are informed by extensive online research and friends consultation. They are also quick in sharing their opinions about services, products and brands on social networks as Facebook and Twitter or on online forums. By making sure Generation Y and Millenials have access to up-to-date and accurate information, a company significantly improves its chances of building a positive image and being profitable in the digital marketplace.
Market surveys show that between up to 60% of consumers looking for electronics, games, DVDs and books complete their purchases online. E-commerce also answers for 20% to 40% of the transactions when desired items are furniture, office supplies, clothing and health and beauty products. Even grocery shopping is moving online, with 10% of consumers favoring web shops over brick-and-mortar markets. The numbers don't lie: the digitization trend is unstoppable.
Those dwelling in high-tech industries as well as insurance, retail banking and travel must rush their digital transformation or
risk being surpassed by their competitors.
Even if companies in areas such as
pharma and manufacture enjoy a more forgiving deadline, the faster an organization adapts to the digital world, the higher its chances to remain relevant, competitive and profitable.
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