Seventy-eight percent of businesses believe digital start-ups will pose a threat to their organization, either now or in the future, according to new research from Dell Technologies.
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.
Only a small minority of surveyed companies have almost completed their digital transformation. While parts of many businesses are thinking and acting digitally, the vast majority (73%) admits digital transformation could be more widespread throughout their organization. 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.
Given the acute threat of disruption, businesses are starting to escalate a remedy. To advance their digital transformation:
· 73% agree they need to prioritize a centralized technology strategy for their business
· 66% are planning to invest in IT infrastructure and digital skills leadership
· 72% are expanding their software development capabilities
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.
The above findings result from an independent survey by Vanson Bourne of 4,000 business leaders — from mid-size to large enterprises — across 16 countries and 12 industries, 300 from India.
“With a vibrant startup ecosystem, keen government focus on digitally transforming India, and a tech-enabled consumer base, it’s not surprising that Indian enterprises have sensed the urgency to transform digitally,” said Rajesh Janey, President & Managing Director, India Enterprise, Dell EMC.
“While investments in Digital Transformation are already underway – the study confirms that 63% large organizations in India are investing in IT infrastructure & digital skills to compete with start-ups – envisioning and measuring outcomes is a critical success factor to ensure continued relevance to global markets,” said Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research.