According to research from IDC, two-thirds of the CEO’s of Global 2,000 companies will shift their focus from traditional, offline strategies to more modern digital strategies to improve the customer experience before the end of the year – with 34% of companies believing they’ll fully adopt digital transformation within 12 months or less…
…which explains the increase in digital spending.
The net global spending on digital transformation in 2018 was approximately $1 trillion and is expected to increase to $2 trillion by 2022.
However, despite this forecast, we’re far from complete digital adoption.
In their State of Digital Business Report, Progress revealed that 47% of companies haven’t started their digital transformation yet – while 59% are worried that it might already be too late for them.
What is Digital Transformation?
Digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes in how a business operates and the value they deliver to their customers.
Put simply, it’s about changing the way a business interacts with its customers and how they provide their customers with a consistent experience whenever and wherever they need it.
The companies that do transform digitally are creating highly engaged customers.
- Six times more likely to try a new product or service from their preferred brand
- Four times more likely to have referred your brand to their friends, family and connections
- Two times more likely to make a purchase with their preferred brand, even when a competitor has a better product or price
A study at MIT found that companies that have embraced digital transformation are 26% more profitable than their peers!