Source Metadata for AI Agents
Digital transformation affects many of the core tenets of how a company operates and requires a change in culture and approach as well as updating software and equipment. Understanding why change is necessary helps create more focused goals for your projects and ultimately leads to a more effective digital transformation.
Digital transformation is high on the agenda for many companies. In recent times, the primary social driver of digital transformation has been the Coronavirus pandemic. It entirely changed the way society operates—necessitating remote working across numerous industries, encouraging a huge boom in ecommerce, and making digital communications methods the norm.
The pandemic has demonstrated the need to adapt to tech-focused ways of working. In 2018, 24% of executives had the capabilities required for successful digital transformation; in 2020, this figure had risen to 60%. Companies are investing heavily in the training and technology needed to ensure the success of their digital transformation projects.
The general benefits of successful digital transformation—improved efficiency, better communication, and streamlined processes—mean that a company that doesn’t invest in modern technologies will be at a significant competitive disadvantage.
Competition is a key driver of digital transformation projects: 41% of executives say their digital transformations are driven by competitive pressure. It’s difficult, if not impossible, to compete with businesses that are enhancing their services with technology. To maintain a market share in a digital-first industry, transformation is no longer an option: it’s a must for every company.
Customer expectations are continuously evolving. As technology improves, the most notable development is the focus on speed. Customers expect their needs to be met immediately. It’s in a company’s best interests to implement the technologies necessary for instant communication with customers.
Furthermore, 52% of customers expect any offers they receive to always be personalised, which makes the use of data insights essential. To fully leverage these insights, businesses need a centralised customer platform as well as a trained support team.
76% of companies report reduced costs after completing a digital transformation project, and 31% of those say that the cost reductions were significant. Digital transformation primarily cuts costs by removing inefficiencies or by automating repetitive tasks that were previously done manually.
Reduced revenue also achieves the same effect. Many companies are struggling to recover from revenue lost due to COVID-19 and can aid recovery by employing digital transformation to cut costs. Consequently, 65% of businesses say they are aggressively pursuing automation and modernisation in the wake of the pandemic.
40% of millennials say they will not work for an organisation that doesn’t offer them the freedom and flexibility of a digital workspace. If a company fails to meet these expectations, they will not be able to retain young talent, leading to a severe skill shortage down the line.
Digital transformation is crucial regardless of whether a workplace is online or offline. Even in a remote working environment, businesses should consider frequent updates to hardware and software to ensure a truly modern workplace. This is especially apparent in technical, candidate-led industries like software development.
Understanding what drives digital transformation projects is essential to the success of your projects and empowers you to set clear, attainable goals. Clarity helps identify what technologies are better for creating efficiencies.
We provide a SaaS technology that objectively measures software development efficiency. Our core metrics for productivity and code maintainability allow executives to make data driven decisions related to talent optimization, vendor management, and location strategy.
With data collated from thousands of software developers in over 30 countries, the Global Benchmark Report provides detailed insights into the latest developer and vendor management trends. These metrics allow you to see how performance and cost efficiency are affected by digital change.