Many businesses in the UK are threatened with stunted growth due to a lack of investment in basic IT connectivity systems.
A new report found that four out of five UK firms are unable to scale plans fully using current connectivity mechanisms. Only 20% of businesses in the UK say they are capable of implementing digital transformation plans.
This occurs when 84% of enterprise organizations say their digital transformation plans have accelerated because of Covid-19. For almost half (49%) of the firms surveyed, these plans were accelerated by a year or more. Nearly every firm (98%) said they consider digital transformation important for their future strategy, stressing how integrated digital plans are for business growth in the UK.
The report shows that 81% of companies saw a “very successful” measure of digital transformation success when up to 20% or more of the digital transformation budget was devoted to connectivity or networking. For companies that spend 10% or less of their budget on connectivity or networking, the success rate has dropped to 19% and the number of failed initiatives has risen to 62%. This illustrates the fundamental role that communication plays in digital development.
The report, conducted by dark fiber and business connectivity provider Neos Networks, gathered the results of 247 midsize and large organizations in the UK, as well as data, cloud and network infrastructure providers. The findings highlight the challenges faced by businesses in “better building”, what is needed to keep UK business systems ready for the future, and how much companies need to invest in connectivity for growth.
Factors influencing the success of digital transformation
The report highlights 14 “keys to success” around digital transformation. The following factors are most common for very successful firms:
90% of very successful firms – recognition of the significant benefits of SD-WAN (which include active management, better performance information and application control)
74% – IT is always involved in identifying and implementing connectivity solutions used in digital transformation
72% – connection and network budget is 10% or more of the total digital transformation budget
72% have a “very supportive” telecommunications partner
63% consider the protection of remote Internet connections very important
Industries that have adopted these indicators of digital transformation are likely to get “very successful” results of digital transformation. Energy and utility companies are in the best positions, holding an average of seven “keys to success”. They are closely followed by the transport sector, which has just under seven keys.
The industry with the lowest score was the public and public sector, where just over five indicators were met.
However, the reality is that organizations from all sectors have something to work on, and none have demonstrated more than half of the 14 identified “keys to success”.
Pete Osman, MD in public sector and enterprise at Neos Networks, said: “It is clear that British business requires more investment, especially after all the commercial problems and changes brought by the pandemic. This report only serves to highlight how much integrated connectivity and smart technologies for firms hoping to bring digital transformation – and the success of digital initiatives.
“The pandemic has, in a sense, served as a catalyst, bringing digital information closer to the heart of the business. It is only natural that some industries should catch up more than others. However, what is important now is that we see investment in communication, especially if we want to see real economic growth in the post-pandemic landscape. ”
Loyal Creswell, founder and CEO of Transport Exchange Group, said: “Without a doubt, Covid-19 has accelerated digital transformation initiatives. In our industry, this has been driven primarily by changes in consumer behavior and the huge increase in online shopping and increased supply. Consumers appreciated the idea of using e-commerce for everything from product purchases to financial transactions, and this has had a big impact on the logistics industry.
“One of the biggest problems in our sector is skills shortages – most couriers and freight do not have the dedicated IT resources to determine the right digital transformation strategy and implement the right technologies. Sometimes there is also a reluctance to fully support digitalization. But there was a stark contrast around the adoption of the digital workflow before and during the pandemic.
Pete Hanlan, CTO of Moneypenny, said: “It’s easy to be absorbed in daily work and put off big projects, such as digital transformation, for next year. It’s also easy to think it’s just a technology project, not a business change. Without the right level of focus and participation in all areas of business, digital transformation will never happen.
Companies that are more efficient and digital, have been the best at overcoming the challenges of the last two years. I believe we will see an unprecedented level of investment in digital transformation over the next few years as more and more companies take a similar approach in digital first form. These investments can only be good for recovery after the pandemic. “
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https://marketingtechnews.net/news/2022/feb/17/four-in-five-uk-companies-unable-to-scale-digital-transformation-plans/ Four of the five British companies are “unable to scale” digital transformation plans