Why Digital Transformation is Essential for Industry Survival

4 min readNov 6, 2023

Digital transformation, the integration of digital technology into all areas of a business, has become a necessary component of modern organizations. The ability to adapt and innovate using technology has become a critical factor in business success.

According to a study by Accenture, digital transformation is the process by which companies embed technologies across their businesses to drive fundamental change [1]. The benefits of digital transformation are numerous, including increased efficiency, enhanced customer value, risk management, and constant navigation of opportunities for revenue generation [11]. In this article, we will explore the importance of digital transformation in the industry and provide real statistics from companies that have implemented it.

One of the most significant statistics that highlights the importance of digital transformation is that 89% of large companies globally have a digital and AI transformation underway [14]. This statistic shows that digital transformation is no longer an option but a necessity for companies that want to remain competitive in the market. Digital transformation can make businesses more agile and adaptable, allowing them to respond quickly to changing market conditions and customer needs [7]. This can give them a competitive advantage over businesses that are slower to adapt.

Digital transformation can also help companies reduce the time it takes to get their products or services to market. For example, a technology company that’s planning on releasing a new mobile solution to its customers may have had difficulty deploying new solutions due to cumbersome, manual, and inefficient back-end processes and technology infrastructure gaps. Digital transformations can improve solution quality along the way with manageable, incremental product releases [5].

Digital transformation can also improve the end-user experience. This could be through offering improved on-demand training, migrating data to cloud services, leveraging artificial intelligence, and more. The right technology can greatly improve how your business functions and how customers engage with it. [9].

However, digital transformation is not without its challenges. For 28 percent of companies, digital transformation is seen as a cost center, and 29 percent say there’s an absence of data to prove ROI [4]. Upgrading or replacing existing systems can be expensive, but finding new opportunities that could be discovered after digital transformation can be worth it [7]. Companies also face various challenges that lead to pitfalls in their digital transformation journeys, such as lack of compliance from a workforce that in turn slows initiatives down, finding the right and best-fitting skillset across the company, resistance to change, or hassles in measuring the company’s ROI [8].

According to Microsoft, companies that have undergone digital transformation are 26% more profitable than their peers and have a 12% higher market valuation. Furthermore, digital leaders are twice as likely to have maintained or increased their market position during the COVID-19 pandemic. These statistics highlight the crucial role that digital transformation plays in business sustainability.

Case Studies

Many companies have already embraced digital transformation and are reaping the rewards. The following are a few examples of organizations that effectively implemented digital transformation strategies:

1. Domino’s Pizza

In 2009, Domino’s Pizza began its digital transformation journey, focusing on technology to improve the customer experience. The company developed its digital ordering platform, which allows customers to order pizza through various channels, including social media, mobile apps, smartwatches, and voice-enabled devices. As a result, Domino’s Pizza has seen a significant increase in sales and customer loyalty.

2. Coca-Cola

Coca-Cola is another organization that has undergone a digital transformation to remain competitive. The company invested in a global digital network that connects its bottling plants and allows for real-time monitoring of production, quality, and supply chain management. This has led to cost savings, increased efficiency, accuracy, and improved customer service.

3. Mercedes-Benz

Mercedes-Benz has been at the forefront of digital transformation, introducing numerous innovations, including voice-controlled infotainment systems and augmented reality maintenance manuals. The company has also implemented automated manufacturing processes, reducing production times and costs while improving quality.

Conclusion

Digital transformation is no longer a choice but a necessity for organizations to survive and thrive in today’s fast-paced digital world. Companies that adopt a digital-first approach can gain a competitive edge, drive revenue growth, and improve customer satisfaction. The above case studies demonstrate that digital transformation can lead to significant benefits, including improved production, reduced costs, and increased profitability. In conclusion, companies that prioritize digital transformation can build a resilient, agile, and adaptable organization capable of thriving in the digital age.

Citations:

[1] https://www.accenture.com/us-en/insights/digital-transformation-index

[2] https://www.statista.com/topics/6778/digital-transformation/

[3] https://www.virtru.com/blog/8-benefits-digital-transformation

[4] https://www.myhubintranet.com/digital-transformation-statistics/

[5] https://www.forbes.com/sites/forbesbusinesscouncil/2021/09/23/why-the-era-of-digital-transformation-is-important-for-companies-of-all-sizes/?sh=24a87c8e7a12

[6] https://www.zippia.com/advice/digital-transformation-statistics/

[7] https://www.forbes.com/sites/forbestechcouncil/2023/03/20/why-do-companies-need-digital-transformation/?sh=24abc4a12bab

[8] https://quixy.com/blog/top-digital-transformation-statistics-trends-forecasts/

[9] https://whatfix.com/digital-transformation/

[10] https://www.sourcedogg.com/insight/22-stats-on-digital-transformation-for-2022/

[11] https://nexusintegra.io/digital-transformation-industry/