Contrary to popular opinion, your greatest digital threat comes not from “Unicorns” — private companies (mostly startups) valued a $1 billion and above — but from established competitors:
As reported in Business2Community:
- 57% of executives have experienced “moderate” or “severe” competitive pressure from established competitors’ digital products and services.
- 69% of executives anticipate threats from existing firms in the next three years, compared to 58% who expect challenges from startups.
Business leaders need only consider the following facts for a clear-headed perspective on digital disruption:
- According to WSJ, “the topple rate, a measure of how rapidly companies lose their leadership position, has increased by almost 40% since 1965. The tenure of companies on the S&P 500 was 61 years in 1958; it's now 18 years. If these trends continue, 75% of the S&P 500 companies will have changed over the next 15 years.”
- According to Digitalist Magazine, 50% of Fortune 500 companies have dropped off the list in the last 12 years and 96% of the companies on the FTSE 100 when it was created in 1984 are no longer there.
- Also reported in Digitalist, former Cisco CEO John Chambers predicts that 40% of companies will crumble when they fail to complete a successful digital transformation.
- Spending on digital transformation to soar.
As reported in Forbes, according to leading analyst firms, the amount of money, time and resources companies will allocate to digital transformation will increase dramatically in the years ahead:
- By 2017, over 50% of IT spending will be for new technologies (mobile, cloud, big data, etc.).
- By 2018, 67% of the CEOs of Global 2000 enterprises will have digital transformation at the center of their corporate strategy.
- By 2020, the percentage of enterprises creating advanced DX initiatives will more than double from today’s 22% to almost 50%.
- By 2020, almost 50% of IT budgets will be tied into digital transformation initiatives.
Why many businesses fail at digital transformation? (And how NTT DATA can help)
As reported in Forbes, 84% of companies fail at digital transformation.
With stakes so high, and spending so aggressive, why are so many companies failing with their digital transformation strategies?
Too often at NTT DATA we see companies fail in their digital transformation efforts because they either attempt to do too much — a complete business model change — all at once, or they do too little, paying what amounts to lip service to digital transformation by bolting digital technologies onto existing, rigid and inefficient business processes.
NTT DATA believes that the key to a successful digital business strategy is to focus on reimagining specific business processes to simplify and enhance customer interactions.
Equally vital, when embarking on a digital business initiative, we advise LOB execs and CIOs to combine their focus on re-thinking end-to-end business processes — from the customer all the way into core ERP systems.
Integrating on-premises applications with new software-as-a-service (SaaS) applications, the Internet of Things, and mobile devices is a key requirement for businesses that want to keep innovating, but only if integration extends all the way into core ERP systems — achieving seamless digital enablement for increased speed, agility and an immersive, satisfying user experience.
Application integration cannot be cleaved from business process design. Relying on past integration approaches such as point-to-point integration, batch integration or FTP file transfers that don’t support real-time business simply do not pass muster and can’t keep up with today’s digitally driven pace of change.
NTT DATA helps organizations address these challenges with a comprehensive approach to strategy, integration and deployment. Our expertise extends across the entire portfolio SAP solutions — past and present, as well as all top ERP platforms and SaaS offerings. Our proven capabilities encompass public, private or hybrid cloud-based platforms.
NTT DATA has the deep expertise to demystify digital transformation for you — integrating infrastructure, cloud applications, on-premises applications, legacy systems and core ERP systems.
The results are quick and attainable. Organizations see how business insight can best be leveraged to achieve the greatest impact across the entire value chain — creating a clear path to achievable meaningful, repeatable business results.
Contact NTT DATA today to learn more about our expertise in driving digital success for our SAP customers.
Post Date: 11/9/2016