A Statistical Case for Digital Transformation

Blog Statistical Case For Digital Transformation

Digital transformation (DT) is here to help your business extract more value for your customers, employees, and stakeholders. The integration of digital technologies such as enterprise resource planning (ERP) software, cloud-based security, IoT devices, artificial intelligence (AI), and machine learning (ML) into business operations is a hallmark of market leaders. Digital transformation results in increased business agility, productivity, and profits, and decision-makers are making major investments moving forward into 2022 and beyond.

Likely, you’re already evangelizing to your company leaders about digital transformation and winning converts to the technological improvements that can help your company evolve. Yet, other brands' success stories or your marketing project miracles have not convinced some in your organization. These executives, managers, and influencers need to hear the statistical case for digital transformation.

A bird’s eye view of digital transformation

100% Between 2020 and 2024, the global investment in digital transformation will almost double. Statista

50%. By 2023, digitally transformed organizations are forecast to contribute more than half of global GDP. Statista

63% of leaders state that the COVID-19 pandemic prompted them to embrace digital transformation sooner than originally planned. Celerity

67% of manufacturing decision-makers say their adoption of digital technologies accelerated due to the COVID-19 pandemic. IBM

92%. Manufacturing decision-makers say their most significant business imperatives driving DT are improving operational efficiency (92%), customer growth (87%), customer retention (85%), supply chain integrity (81%), and operational resilience (81%). IBM

By 2030, analysts expect automation to eliminate 29% of jobs while contributing 13% to job creation. Forrester

$767 billion. Manufacturing market digital transformation valued at $263 billion in 2020 and expects to reach $767 billion by 2026, with a growth rate of 19.48% over 2021-2026. Mordor Intelligence

Who is stalling digital transformation initiatives?

  • 37% CEO or board of directors
  • 32% no one
  • 32% senior executive team
  • 26% department heads
  • 18% middle managers Finances Online

Digital transformation results

The top benefits of adopting DT are:

  • 40% Improving operational efficiency
  • 36% Faster time to market
  • 35% Meet changing customer expectations PTC

Data-driven organizations are

  • 23X more likely to acquire customers
  • 6X as likely to retain customers
  • 19X more likely to be profitable as a result McKinsey & Company
  • 84% of business executives say that new business opportunities have emerged as their companies make digital transformations HBR
  • 43% of highly digital mature companies report significantly higher net profit margins than industry averages. Deloitte
  • 3X. Digital-first companies are 3X more likely to exceed top business goals. Adobe
  • 23%. Data-driven businesses outperform their peers in customer acquisition at a rate of 23 times more than their competitors (Forbes)

Consumer expectations

75% of consumers say they are more likely to buy from a company that:

  • Recognizes them by their name,
  • Knows their purchase history, and
  • Recommends products based on their past purchases. Accenture

Corporate planning

3 out of every 4 business leaders will leverage digital platforms by 2025 to adapt to new markets and industries. IDC

30% of organizations will increase innovation and reinvent their business models to future-proof their companies. IDC

The highest growth of digital transformation will be from devices (14%) and enterprise software (10.8%), largely due to organizations looking to provide innovative workplace solutions. Gartner

Insurance underwriting, warehouse and manufacturing, and customer service are among the jobs predicted to automate in the next 5 to 10 years. Forbes

Investments in digital transformation are rising at more than 3X the rate of overall IT spending. Forrester

96% of organizations see digital transformation as critical or important. Progress

86% of CEOs believe it is crucial to champion digital technologies. PWC Research

85% of decision-makers believe they have just two years to make significant inroads on their digital transformation before suffering financially. Progress

76% of decision-makers have a defined strategy for pursuing transformation. Progress

75% of these decision-makers are in the process of taking incremental steps. Progress

45% of executives believe their companies lack the necessary technologies to conduct a digital transformation strategy. PWC Research

Do any of these statistics surprise you or anyone in your organization? After sharing, have any of these statistics been particularly influential or persuasive? Share your thoughts with us on Facebook!

ECI Staff Contributors

About the Author

ECI Staff Contributors love to share their insights and expertise on a variety of topics including sales, marketing, cloud, ERP, and SMB development as well as on product specific education. With offices throughout the United States, Mexico, England, the Netherlands, Australia, and New Zealand, more than 40 employees contribute to blog on a regular basis.