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Is digitization paying off or failing?

Over the years, huge sums of money have been spent on the development of digital technologies by companies’ IT managers, and now they are under increasing pressure to account for their investments. To top it all off, the pandemic has tightened the framework, smoked some shops and, in the eyes of many leaders, digitization is an empty word in the eyes of many leaders if there is no tangible business benefit.

Leading the way

All indications are that a global survey by EY and Oxford Economics has found that business leaders around the world are rethinking their long-term plans due to the coronavirus epidemic. For example, they would certainly build on the Internet of Things (67 per cent), artificial intelligence (64 per cent) and cloud computing (61 per cent), but decision-makers have difficulty determining the size of investments and calculating short-term benefits

Although some of the leading companies managed to achieve higher returns by translating best practices into practice, overall, only one tenth of the companies surveyed improved their performance, and only 7% of respondents reported being able to take full advantage of artificial intelligence and innovation. the benefits of the Internet of Things.

Is digitization paying off or failing?

Nearly three-quarters of the leaders interviewed from the success group would achieve their strategic goals through mergers and acquisitions or partnerships instead of looking in-house solution to your problems. Nearly two-thirds believe that there will be a radical change in their operations over the next two years, so they need to look for the potential of next-generation technologies. However, only 15 percent of those surveyed said their cloudy investments paid off in full, and this is the lobby for any next-generation solution, and only 7 percent said the same about artificial intelligence and the Internet of Things.

Bribes secondly

A number of companies are in the development phase of digitization; most of them lack expertise, others have money or clean data. Breaking down data silos is not easy, you have to pay the price of analytics and even build a future-proof infrastructure.

While more than three-quarters of managers say that digital initiatives are behind the success of the last two years, Only a quarter of companies actively measured Return On Digital Investment (RODI), much more frequently examining indicators of financial performance (57 per cent) or operational efficiency (46 per cent). Yet, companies that analyze digital returns are more likely to have achieved more than a 5 percent improvement in the field, and have been able to make more informed strategic decisions. However, more than half of the respondents say that their company does not have the clear guidelines, coordinated management and effective combination of skills, tools and data to implement RODI.

Summary and lessons learned

In conclusion, summarizing the results of the survey, researchers, the digital transformation can not stop, but the return must be measured. The first step is to develop plans detailing expenditures, technical requirements, and coherent implementation. A clear strategy is not enough, you also need to be prepared for changes on the fly. An integrated approach is needed to accelerate digital initiatives and achieve strategic goals. If the conditions for internal development are tight, a partnership or an acquisition can be a solution.

Expertise is key: acquiring and retaining outstanding talent, while learning from best practices, developing our business models and bringing out make the most of digital operation! Due to the pandemic, priority should be given to fast-track initiatives that can lay the foundations for future developments with new products.

– May that a company does not perceive the importance of launching an online store, for example, but without online sales, its market position would certainly deteriorate in the long run. Technological developments are therefore necessary for companies to remain competitive, commented on the study Ákos Demeter, Partner in EY’s business consulting business

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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