Most companies are still far from digital transformation
The pandemic has sped up the digitalization process of companies. However, most (56.2%) are still at the initial stage of their transformation. Only 10.8% have reached the most advanced stage of development, according to the first Deep Digital Journey report published by LLYC. To carry out this study, framed within the launch of the firm’s new Deep Digital Business unit, more than 200 marketing and communication executives from large companies in 16 sectors from 12 countries in Europe and the Americas have been consulted.
The study seeks to discover at what stage companies are at on their digital transformation journey, which goes beyond digitalization, as it involves a cultural change. To achieve that, four phases are established that range from the brand’s minimum activity in the digital environment to the maximum evolution that a company can achieve in the automation of its processes. Although 41% of those surveyed feel they are at an advanced or expert level, the report draws the following conclusions:
– 34% of companies develop practices that fall within the initial stage of the digital transformation (Digital Being).
– 22.2% find themselves at the second stage (Digital Optimization), refining digital tools and processes.
– 33% consider that they are at the advanced stage (Digital Data-Driven), in which the activities of the different departments, along with their processes and platforms, are adapted to the digital environment.
– 10.8% have reached the highest stage (Deep Digital) and now operate with a completely digital vision of planning and implementation.
In other words, most companies are not yet halfway through their digital transformation process.
There are major differences by sector. Tourism and leisure (airlines, travel platforms, and entertainment companies) is the best-placed sector. 30% of the companies surveyed from this segment are at the highest stage. This is followed by technology, telecommunications and consultancy, and legal services, with almost 20%. In contrast, the public sector is the least developed sector, with 70% of the enterprises still at the initial stage of the digital transformation.
Other data can be extracted from the report:
– 57% of companies focus more on themselves than on people (clients, employees, and stakeholders) when they are the leading people in their business and the basis for their success. Most do not have a people-centric strategy.
– Companies at the most advanced stage of digital transformation generate more business through their digital channels; more than 70% of companies at the Deep Digital stage generate more than 20% of their income through this source.
– Despite their key role, 73% of marketing and communication teams do not use artificial intelligence (AI) models in their communications and campaigns.
The study concludes that companies and institutions need to shift the focus of attention away from themselves and toward people to connect with them. In addition, they must intensify their journey toward the genuine cultural process of digital transformation inherent to the Deep Digital Journey to grow in the generation of their digital business. Only companies that evolve in this direction will be ready for this digital momentum and have anticipated this environment.
Adolfo Corujo, Chief Strategy and Innovation Officer at LLYC, argues that “The true digital transformation inherent to the Deep Digital Journey is tied into complex cultural transformation processes and not just to technological developments and the digitalization of certain practices. Companies are making a tremendous effort to evolve and adapt to the digital disruption, but they come across a certain logical resistance along their way that is more far-reaching and radical than it seems”.
For his part, Ibo Sanz, Head of Global Tech & Digital Strategy at LLYC, highlights that “Marketing and communication departments have a key role to play in the phenomenon of the digital transformation and in the developments in digitalization processes. Their work in charge of the interaction between brands and people that matter to them places them at the very heart of the exposure to the disruption caused by exponential technologies”.
To see the results of the study, click here.