Digital transformation: 48% of French leaders are afraid of being relegated to the second division within 5 years

by bold-lichterman

More than 6 in 10 senior executives believe that new competitors have entered their market driven by digital technology, and 45% of them are worried about the possible obsolescence of their company within 5 years, according to the study “Embracing a Digital Future»Produced by Dell Technologies, in partnership with Vanson Bourne, a British market research firm. In France, 48% of respondents believe that their business could be overwhelmed within 5 years.

Conducted among 4,000 senior executives from different business sectors and from 16 countries around the world, the study is structured around two components: a survey on the perception that these leaders have of their own transformation digital, and the calculation of a “Digital Transformation Index” measuring their stage of progress on the subject.

France ranked 8th in terms of digital transformation

Calculated from the responses provided by senior executives to the questions asked, the index weighs the various items analyzed to produce an overall score, per respondent:

  • 60% of the score thus comes from the way in which the company manages the skills it will need as part of its digital transformation,

  • 14% of the score for the way the company has integrated the key success factors in digital,

  • 14% of the company’s IT strategy,

  • and 12% of the company’s medium-term plans to transform.

First surprise of the study, it is India which comes first among the most advanced countries on the subject of digital (with a score of 53/100), well ahead of France and its score of 42/100, and the United States rated 41/100.

1. India (53/100)

2. Brazil (50/100)

3. Mexico (47/100)

4. Australia (44/100)

5. Germany (43/100)

6. United Arab Emirates and Saudi Arabia (42/100)

7. Netherlands (42/100)

8. France (42/100)

9. Italy (41/100)

10. United States (41/100)

Another finding, the authors of the study estimate that two-thirds of the companies studied fall either in the category of “digital followers“(Who invest little in digital at the moment but plan to do so in the future) or in that of”digital evaluators”(Who are starting to integrate digital into their business). Barely 5% of companies fall into the category of “digital leaders”(For whom digital is an integral part of their DNA).

dell-vanson-digital-transformation-October2016

Finally in terms of business sectors, it is the telecommunications companies that come first (46/100), followed by technology companies (45/100), and the media and entertainment sector (44/100).

Companies are struggling to fully meet the new expectations of their customers

When asked about the issue, the vast majority of senior executives feel threatened by the arrival of digital start-ups in their market. To protect themselves, they rely above all on the engagement and satisfaction of their current customers (at 47%), as well as on technology (at 42%). A little more than a third (39%) of respondents also state that they have integrated digital into their entire organization.

This shift towards digital is therefore above all driven by customers (56%). They expect companies to have more security (66%), faster access to their services (65%) and information (61%). When asked about the question, companies are also struggling to fully meet the new expectations of their customers: barely more than a third are able to fully meet security expectations, and barely 40% are able to meet their expectations in terms of security. ease of access to services and information.

dell-vanson-digital-transformation-October2016-2

Note, beyond customers, IT services are another driver of digital transformation within companies (for 43% of respondents), as is the management committee (at 41%).

The lack of budget and expertise singled out

While they are convinced of the need to transform in order to survive, respondents are also aware of the limits of their current strategies: three quarters of them believe that their vision and their strategy could be improved. They are 73% to believe that digital could be more widespread in the organization.

Among the main projects identified by respondents in terms of digital, the main point of improvement cited relates to the ability to offer a unique and personalized experience (at 74%), followed by the ability to innovate in an agile manner (at 72 %). A third of respondents believe they lack the budget to progress in digital, and 31% deplore the lack of expertise and skills in-house.

** Methodology: study carried out among 4,000 senior executives, coming from 12 different business sectors, and coming from 16 different countries (including the United States, China, France, Germany and the United Kingdom ).

Photo credit: Fotolia, royalty-free stock images, vectors and videos