Must-Know Digital Transformation Statistics For 2020 And 2021
In this report, we will cover some of the most important digital transformation statistics for 2020 and 2021.
Most businesses know that digital transformation has become a popular topic in recent years, but as we will see, data shows that it will become even more imperative in the years ahead.
Here are a few digital transformation statistics that demonstrate just how crucial it is to invest in digitization, digital transformation, and digital adoption.
Digital-first companies are 64% more likely than their peers to have exceeded their 2018 goals.
According to a 2019 report by Adobe, companies that are digital-first are almost three times more likely to have exceeded their top business goals in 2018.
That same report found that companies focusing on the customer experience were three times more likely to have exceeded their business goals in that same year.
Digitally mature companies earn significantly more than their industry average.
A study by Deloitte found that digital maturity was strongly correlated with excellent financial performance.
For instance, 45% of higher maturity companies reported that their net revenue growth was significantly above their industry average. And 43% of highly digitally mature companies reported that their net profit margins were significantly above their industry average.
The same report also pointed out that more digitally mature companies tended to focus on the same areas in their digital transformation programs – 41% focused on boosting customer lifetime value and 29% focused on increased sales from new products and services.
While 52% of companies are making cuts during COVID-19, only 9% are making cuts in digital transformation.
Research from PwC highlighted the importance of digital transformation in 2020.
The top 5% of their companies shared a number of characteristics:
- They invest 33% more than other companies in techniques and tools that drive their “digital supremacy”
- They have a 17% higher profit margin growth over three years
- They have a clear direction for digital 96% of the time
- Leadership isn’t a roadblock for innovation at 94% of these leading companies
Data from this report also highlighted the importance not only of digital, but also of staying agile, innovating constantly, and adopting new methods of working.
More than half of companies plan to increase digital transformation spend, even during the pandemic.
Research from IFS showed that, despite the current economic uncertainty, many companies are increasing their investments in digital transformation.
In fact, those most concerned about digital disruption were 20% more likely to increase their digital transformation budgets.
The same report noted that spending plans differed across sectors, however.
- 75% of companies in construction planned to increase spending
- 58% of IT companies had the same plans
- 55% of manufacturing businesses also had plans to boost digital transformation budgets
On the other hand, other industries, such as retail, energy, and utilities, fell at bottom end of the spectrum and showed the least interest in digital transformation.
According to IFS, this disparity indicates that certain industries, such as construction, are attempting to catch up to other sectors that are more digitally advanced.
Digital transformation is seen as a business driver for recovery by 4 out of 5 companies.
According to Dell, 80% of organizations globally accelerated their digital transformation efforts in 2020.
Other findings include:
- 89% of companies recognized that, as a result of the pandemic, they needed more agile and scalable IT infrastructure
- The majority of companies envisioned using emerging technologies, such as artificial intelligence (85%) and augmented reality (82%)
- However, only a small number planned to invest in these technologies – 16% for virtual and augmented reality and 32% for artificial intelligence
Overall, the survey indicated that companies are generally becoming more digitally mature. The number of digital laggards, the least digitally mature group in their audience, shrank, while the other groups expanded.
The COVID-19 pandemic has fueled the growth of ecommerce and online services.
Ecommerce and e-services have seen major growth in 2020, while businesses that lack digital components, such as retail, have suffered significantly.
- Retail website visits went up from 16.07 billion visits in January 2020 to 22 billion in June 2020, according to Statista
- Ecommerce continues to grow year over year, and 99Firms expects that 95% of all purchases will be made online by 2040
- Almost half of all small businesses in the United States do not own a website, according to CNBC
This last point, suggested the CNBC article, suggests that digital trends are changing the shape of commerce and businesses that want to keep up will need to adapt in order to stay profitable.
Digital disruption and transformation are clearly fueling change in the modern economy, as these statistics suggest.
The data also demonstrates that companies who invest in digital transformation will have a better chance of succeeding, staying profitable, and even leading in their industries.
At the same time, it is clear that companies who fail to keep up with digital trends will have a much more difficult time in the years ahead.
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