Is every company a technology company now? According to a new report from Deloitte, they should be. The global consulting firm recently shared research revealing that digitally sound organizations have a significant edge over others.
More digitally mature companies performed better than lower-maturity companies during the past pandemic year, according to Deloitte. They were about twice as likely to generate net profit margins and annual revenue growth significantly above their industry average, the report stated.
Meanwhile, nearly two-thirds of respondents in the Deloitte study said that organizations that don’t digitize in the next five years will be “doomed.”
Going digital helped organizations deal with the pandemic
More than 75 percent of organizations said digitization helped them cope with many pandemic challenges. Such companies were twice as likely to cite digital transformation as their core strategy. As a result, more and more companies turned to IT service providers to streamline their operations.
Digitized organizations generate higher net profit and annual revenue
Digitally-informed organizations have financially outperformed their competitors in almost every aspect. As a result, 69 percent of respondents plan to increase their investments in digital transformation from an average of US$10.9 million to US$12.6 million in the next 12 months. That is 0.6 percent of their annual turnover and 15 percent higher than the amount they’d spent last year.
Today, digital is a vital part of competitive strategy. It helps organizations improve customer experiences, upgrade products and services, and promote agility in their business models. As a consequence, all strategies will be digital strategies in the future. Going digital will help organizations secure their future in a world of uncertainty.
Sanika is a team lead at Turing. She regularly contributes to the Times of India and Femina. As a researcher, she collaborates with the United Nations, UNESCO, and the British Council. Sanika has worked for Women and Child Development as a part of her government fellowship program. When she's not working, she's closely analyzing culture and gender performativity.
