Digital Crisis Looms: Nearly 1 in 2 Business
Leaders Fear Digital Start-ups Will Make Their Business Obsolete
Within 3-5 Years
News highlights:
- 48% of global businesses don’t know
what their industry will look like in 3 years
- 78% of businesses consider digital
start-ups a threat, either now or in the future
- Around six in ten businesses are unable
to meet customers’ top demands
- Just 5% of businesses can be classed as
‘Digital Leaders’
- 73% confess digital transformation
could be more widespread
TWEET THIS: New Research by @Dell: 4/5 businesses feel
threatened by digital start-ups http://bit.ly/2dfPNg3
#DigitalTransformation
78% of businesses believe digital start-ups will pose a threat
to their organization, either now or in the future, according to
new research from Dell Technologies announced today. This
phenomenon is propelling innovative companies forward and
accelerating the demise of others. Almost half (45%) of global
businesses surveyed fear they may become obsolete in the next three
to five years due to competition from digital-born start-ups.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20161005005057/en/
Dell Technologies Launches the Digital
Transformation Index (Graphic: Business Wire)
Some companies are feeling badly bruised by the pace of change.
More than half (52%) of business leaders have experienced
significant disruption in their industries over the past three
years as a result of digital technologies and the Internet of
Everything, and 48% of global businesses don’t know what their
industry will look like in three years’ time.
The findings result from an independent survey by Vanson Bourne
of 4,000 business leaders -- from mid-size to large enterprises --
across 16 countries and 12 industries.
“So far the fourth industrial revolution has proved as ruthless
as its predecessors. If companies can’t keep up, they will fall
behind … or worse. The ‘delay until another day’ approach simply
won’t work,” explains Jeremy Burton, chief marketing officer for
Dell Technologies.
Patchy Progress or Digital Crisis looming?
Progress has been patchy to say the least. Some companies have
barely started their digital transformation. Many have taken a
piecemeal approach. Only a small minority have almost completed
their digital transformation. Just one in three businesses surveyed
are performing critical digital business attributes* well. While
only parts of many businesses are thinking and acting digitally,
the vast majority (73%) admits digital transformation could be more
widespread throughout their organization.
Around six in ten companies are unable to meet customers’ top
demands, such as better security and 24/7 faster access to services
and information. Nearly two-thirds (64%) confess to not acting on
intelligence in real-time.
“These are imperatives for success in a digital age. Failing to
deliver in such a highly contested marketplace could trigger the
beginning of a digital crisis,” added Burton.
Dell Technologies’ Digital Transformation Index supplements the
research and rates companies based on respondents’ perceived
performance about their firms’ digital transformation. According to
the benchmark, only 5% of businesses have catapulted themselves
into the Digital Leaders group; almost half are lagging behind.
1. Digital Leaders: 5% - digital
transformation, in its various forms, is ingrained in the DNA of
the business
2. Digital Adopters: 14% - have a
mature digital plan, investments and innovations in place
3. Digital Evaluators: 34% -
cautiously and gradually embracing digital transformation, planning
and investing for the future
4. Digital Followers: 32% - very
few digital investments; tentatively starting to plan for the
future
5. Digital Laggards: 15% - do not
have a digital plan, limited initiatives and investments in
place
Digital Rescue Plan
Given the acute threat of disruption, businesses are starting to
escalate a remedy. To advance their digital transformation:
- 73% agree they need to prioritize a
centralized technology strategy for their business
- 66% are planning to invest in IT
infrastructure and digital skills leadership
- 72% are expanding their software
development capabilities
In order of priority according to respondents, the top planned
IT investments over the next three years are:
1. Converged infrastructure
2. Ultra-high performance technologies (Example: Flash)
3. Analytics, big data and data processing (Example: Data
Lakes)
4. Internet of Things technologies
Additionally, between a quarter to a third of businesses have
created a full digital P&L (36%); are partnering with start-ups
to adopt an open innovation model (35%); have spun-off a separate
part of the organization or intend to acquire the skills and
innovation they need through M&A (28%). Just 17% measure
success according to the number of patents they file and nearly
half (46%) are integrating digital goals into all department and
staff objectives.
“In the near future, almost every business will have software
development expertise at its core. Many of these companies will be
brand new, others – having not written a line of code in 20 years –
will have been on a momentous journey. New digital products and
services will drive the transformation of IT infrastructure as
businesses struggle to manage 1000x more users and 1000x more
data,” says Burton.
“Digital Transformation is the result of blending the power of
technology with a rapidly adaptable culture that understands not
only what technology can do for its business, but why it is so
important in creating the future of the enterprise,” said Daniel
Newman, principal analyst, Futurum Research. “Every C-Suite leader
looking to up their investment in digital transformation needs to
understand the threats to their industry and how technology can
take their business to the next level to stay competitive.”
Notes to editor
*In 2015, business leaders agreed on a core set of digital
attributes businesses must embrace to succeed over the course of
the next decade. These are:
1. Innovate in agile ways
2. Predictively spot new opportunities
3. Demonstrate transparency and trust
4. Deliver unique and personalized experiences
5. Always on, operate in real time
According to last year’s research, only 4% of businesses
executed all key digital business attributes well and company-wide.
This year, the figure climbed to 7%.
The proportion of businesses performing any one of these
attributes well and company-wide is also higher this year.
Digital Business Attributes
2015
2016
Innovate in agile ways 9% 28%
Predictively spot new opportunities 12% 32%
Demonstrate transparency and trust 14%
31% Deliver unique and personalized experiences 11%
26% Always on, operate in real time 12%
31%
About Dell Technologies
Dell Technologies is a unique family of businesses that
provides the essential infrastructure for organizations to build
their digital future, transform IT and protect their most important
asset, information. The company services customers of all sizes
across 180 countries – ranging from 98% of the Fortune 500 to
individual consumers – with the industry’s most comprehensive and
innovative portfolio from the edge to the core to the cloud.
About Vanson Bourne
Vanson Bourne is an independent specialist in market research
for the technology sector. Its reputation for robust and credible
research-based analysis is founded upon rigorous research
principles and an ability to seek the opinions of senior decision
makers across technical and business functions, in all business
sectors and all major markets. For more information, visit
www.vansonbourne.com.
Dell EMC World
Join us Oct. 18-20 at Dell EMC World 2016, Dell
Technologies flagship event bringing together technology and
business professionals to network, share ideas and help co-create a
better future. Learn more at www.dellworld.com and
follow #DellWorld on Twitter.
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version on businesswire.com: http://www.businesswire.com/news/home/20161005005057/en/
Dell TechnologiesJen Sorenson,
508-249-6837jen.sorenson@dell.com
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