About 78per cent of businesses around the world feel threatened by digital startups, a new study by Dell Technologies Research has revealed.
The study also shows looming digital crisis as nearly 1 in 2 business leaders fear digital startups will make their business obsolete within 3-5 years, 48% of global businesses don’t know what their industry will look like in 3 years.
Also, the report states that around six in ten businesses are unable to meet customers’ top demands while only 5per cent can be classed as ‘Digital Leaders’
73 per cent confessed that digital transformation could be more widespread making 78per cent of businesses believe digital start-ups will pose a threat to their organization, either now or in the future.
This phenomenon is propelling innovative companies forward and accelerating the demise of others. Almost half (45%) of global businesses surveyed fear they may become obsolete in the next three to five years due to competition from digital-born start-ups.
Some companies are feeling badly bruised by the pace of change. More than half (52%) of business leaders have experienced significant disruption in their industries over the past three years as a result of digital technologies and the Internet of Everything, and 48% of global businesses don’t know what their industry will look like in three years’ time.
The findings result from an independent survey by Vanson Bourne of 4,000 business leaders — from mid-size to large enterprises — across 16 countries and12 industries.
Chief Marketing Officer for Dell Technologies, Jeremy Burton said, “So far the fourth industrial revolution has proved as ruthless as its predecessors. If companies cannot keep up, they will fall behind … or worse. The ‘delay until another day’ approach simply won’t work.
“These are imperatives for success in a digital age. Failing to deliver in such a highly contested marketplace could trigger the beginning of a digital crisis,” added Burton.
Principal Analyst, Futurum Research, Daniel Newman said, “Digital Transformation is the result of blending the power of technology with a rapidly adaptable culture that understands not only what technology can do for its business, but why it is so important in creating the future of the enterprise. Every C-Suite leader looking to up their investment in digital transformation needs to understand the threats to their industry and how technology can take their business to the next level to stay competitive.”
Dell Technologies’ Digital Transformation Index supplements the research and rates companies based on respondents’ perceived performance about their firms digital transformation.
According to the benchmark, only 5% of businesses have catapulted themselves into the Digital Leaders group; almost half are lagging behind.
Given the acute threat of disruption, businesses are starting to escalate a remedy to advance their digital transformation.
Based on the concerns, 73per cent agree they need to prioritize a centralized technology strategy for their business, 66per cent are planning to invest in IT infrastructure and digital skills leadership while 72per cent are expanding their software development capabilities
In order of priority according to respondents, the top planned IT investments over the next three years are: Converged infrastructure, Ultra-high performance technologies (Example: Flash), Analytics, big data and data processing (Example: Data Lakes) and Internet of Things technologies.
Additionally, between a quarter to a third of businesses have created a full digital P&L (36%); are partnering with start-ups to adopt an open innovation model (35%); have spun-off a separate part of the organization or intend to acquire the skills and innovation they need through M&A (28%). Just 17% measure success according to the number of patents they file and nearly half (46%) are integrating digital goals into all department and staff objectives.
“In the near future, almost every business will have software development expertise at its core. Many of these companies will be brand new, others – having not written a line of code in 20 years – will have been on a momentous journey. New digital products and services will drive the transformation of IT infrastructure as businesses struggle to manage 1000x more users and 1000x more data, said Burton.”
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