Digital Transformation brings a wide range of benefits to companies in all industries and business sectors. But despite this, many business leaders and stakeholders pause when they are faced with the prospect of sinking a large sum of money into a Digital Transformation development project. ROI projections and cost-benefit analysis can only instill so much confidence.
The reality is that these emerging and cutting-edge technologies do hold the potential to be truly transformative, but multi-million dollar price tags are not at all uncommon. This means that even the best project proposals can be a hard sell and without approval, you can’t complete the development of a winning IT strategy.
Sometimes, what you need is a bit of extra data to compel company leadership to take the plunge with an investment in a Digital Transformation project. Enter: Digital Transformation stats to consider ahead of your IT strategy development efforts.
Digital Transformation Stats on Reasons for Adopting New Technology
Digital Transformation projects abound, the term has gained tremendous popularity in recent years, especially with the COVID-19 pandemic. The pandemic prompted companies to invest in new technologies in an attempt to bridge the gaps that were created by social distancing and work from home requirements. As a result, we saw a dramatic rise in the number of businesses investing in collaboration tools, cloud solutions and messaging app technology. In fact, 6 in 10 enterprise-level companies in the U.S. and Canada rely upon cloud technology that was implemented as part of a Digital Transformation project — that’s five times the number that we saw for this metric in 2018.
Before the COVID-19 pandemic, just 15% of the workforce worked from home. Today, 50% of the workforce works remotely. The COVID-19 pandemic has been credited with advancing technology by 5 to 10 years.
Consider these Digital Transformation stats on what motivated companies to pursue these innovative IT projects. Note that some of the businesses surveyed mentioned multiple motivators resulting in a total percentage exceeding 100%.
- 40% sought to improve operational efficiency.
- 35% sought to improve customer experience and meet customer expectations more effectively.
- 71% sought to develop new revenue streams, improve product quality and / or reduce production costs.
- 4 in 10 executives expect to see benefits from a Digital Transformation project over the span of 3 to 5 years.
- 67% of executives view Digital Transformation and other revenue-generating projects as one of their primary job responsibilities.
It’s estimated that worldwide, 40% of IT and technology spending goes toward Digital Transformation. Experts predict that spending on Digital Transformation will surpass $2.8 trillion dollars in 2025. That’s a trillion dollar gain over the $1.8 trillion that was spent on DX globally in 2022. Meanwhile, the World Economic Forum has predicted that the industrial and social value of Digital Transformation will surpass the $100 trillion dollar mark by 2025.
Digital Transformation Statistics on C-Suite Involvement and DX Evolution
The data shows that a Digital Transformation project is far more likely to succeed in cases where you have an engaged and involved C-Suite. CEOs are a key driving force in the most successful IT projects, with these executives found to be “driving the development of a workplace transformation roadmap in 45 percent of organizations and contributing to its development in 63 percent of companies.” Additionally, Forbes reported that 60 percent of companies transitioned to hybrid work models in 2022.
Consider these facts and figures surrounding the support and involvement of company leaders, stakeholders and other key members of leadership.
- Researchers have found that CEO and C-suite involvement is critical for a successful Digital Transformation.
- CEOs were involved in the DX development process in 63% of projects.
- CEOs were involved in developing a Digital Transformation strategy in 45% of IT projects.
- A project is 6 times more likely to avoid Digital Transformation failure if a Chief Technology Officer is involved in the strategy development, software development and deployment processes.
- According to Gartner, 87% of senior executives regard Digital Transformation as an “organizational priority.”
- The most successful Digital Transformations were achieved with heavy involvement of human resources leadership.
- IT decision-makers are involved in 97% of Digital Transformation development projects.
Stats on the Importance of Training for Digital Transformation Deployments
Developing a solid Digital Transformation implementation and rollout strategy is essential for success which is typically defined by the achievement of a good ROI. The stats and figures suggest that the most effective Digital Transformation efforts are supported by a change management program with comprehensive training efforts.
In a report by McKinsey, companies pursuing Digital Transformations with the help of a change management program saw 140% of their anticipated ROI. Conversely, companies without a change management program saw 35% of the expected ROI for these projects.
Other Key Digital Transformation Statistics
Digital Transformations have the ability to bring about tremendous results for a company and the evidence is in the numbers. Here are some additional stats surrounding DX projects.
- 27% of company leaders regard digitization as a “matter of business survival.”
7 in 10 companies pursue Digital Transformation to simplify and streamline processes and workflows. - Well-developed communication tools such as business messaging apps are critical, helping companies retain the best talent by as much as 450%.
- 85% of collaboration software users describe themselves as “happy.”
- Productivity rises an average of 30% in companies that leverage well-developed collaboration technology. That’s good news because collaboration tools increase sales by an average of 27%.
The numbers really do tell the story for Digital Transformation. But to ensure success, you need to take the time to carefully develop a comprehensive IT and Digital Transformation strategy. Then, you’ll need to choose the right partner to develop your technology. That’s where 7T can assist.
Achieving a Solid ROI With Digital Transformation Development Projects
The numbers really do tell the story for Digital Transformation. But to ensure success, you need to take the time to carefully develop a comprehensive IT and Digital Transformation strategy. Then, you’ll need to choose the right partner to develop your technology. That’s where 7T can assist.
A well-strategized IT strategy and Digital Transformation project can bring about great results, but you need the right development team with experience architecting innovative solutions for enterprise clients and startups alike. At 7T, we take a collaborative approach to enterprise development projects. We engage the client from the discovery phase to deployment. Our many Digital Transformation service offerings include process automation solutions, enterprise software development for ERP and CRM systems (among others), along with SaaS development for web apps and mobile apps, amongst others. We work extensively with cutting-edge technologies as we strive to help clients solve pain points, improve efficiency and achieve their business goals.
We’re guided by the approach of “Digital Transformation Driven by Business Strategy.” As such, the 7T development team works with company leaders who are seeking to solve problems and drive ROI through Digital Transformation and innovation. We then provide collaborative, multi-phased and impactful Digital Transformation solutions.
7T has offices in Dallas, Houston and Austin, but our clientele spans the globe. If you’re ready to learn more about Digital Transformation and what we can do for your business, contact 7T today.