Digital transformation ‘driven by competitive threats’
The majority of ‘digital transformation’ projects globally are being driven by competitive pressure rather than from a desire to innovate.
That is according to new research commissioned by eCommerce software firm Sana Commerce.
A survey of 300 global B2B organisations found that competitive pressures are coming from all sides: 38 per cent believe the threat is from existing companies; 35 per cent see pressure from new online market entrants; and 34 per cent from cheaper overseas suppliers.
“It’s do or die when it comes to digital transformation projects for B2B organisations,” Sana Commerce chief executive Michiel Schipperus said.
“We know that companies are feeling the pressure from increasingly online businesses competing in new territories. The research found that 72 per cent of organisations believe they will sell 100% of their products online in the future, making markets wide open to further online competition.”
The research found that 73 per cent of companies believe that e-commerce plays an important or vital role in digital transformation because it’s responsible for the customer experience.
Two thirds of respondents said they have a digital transformation strategy in place and 28 per cent are “acting fast” and rolling it out as quickly as possible.
However, only 4 per cent have actually completed the projects.
The survey found that legacy technology was the biggest challenge that threatens the success of digital transformation project with 41 per cent naming it as an issue.
However, more than a third of businesses believe that it is internal resistance to change that could stand in the way of success.