Latest research reports released by technology giant, Dell indicate danger for business leaders over the possibility of digital start-ups taking their positions within the next few years.
According to the report published yesterday, Dell said “78% of businesses believe digital start-ups will pose a threat to their organization, either now or in the future, according to new research from Dell Technologies announced today”.
“This phenomenon is propelling innovative companies forward and accelerating the demise of others. Almost half (45%) of global businesses surveyed fear they may become obsolete in the next three to five years due to competition from digital-born start-ups.
The report noted further that some companies are feeling badly bruised by the pace of change. More than half (52%) of business leaders have experienced significant disruption in their industries over the past three years as a result of digital technologies and the Internet of Everything, and 48% of global businesses don’t know what their industry will look like in three years’ time.
The findings result from an independent survey by Vanson Bourne of 4,000 business leaders — from mid-size to large enterprises — across 16 countries and12 industries said ““So far the fourth industrial revolution has proved as ruthless as its predecessors. If companies cannot keep up, they will fall behind … or worse. The ‘delay until another day’ approach simply won’t work,” explains Jeremy Burton, chief marketing officer for Dell Technologies.
It however said progress has been patchy to say the least. Some companies have barely started their digital transformation. Many have taken a piecemeal approach. Only a small minority have almost completed their digital transformation. Just one in three businesses surveyed are performing critical digital business attributes well. While only parts of many businesses are thinking and acting digitally, the vast majority (73%) admits digital transformation could be more widespread throughout their organization.
Around six in ten companies are unable to meet customers’ top demands, such as better security and 24/7 faster access to services and information. Nearly two-thirds (64%) confess to not acting on intelligence in real-time.
“These are imperatives for success in a digital age. Failing to deliver in such a highly contested marketplace could trigger the beginning of a digital crisis,” added Burton.
Dell Technologies’ Digital Transformation Index supplements the research and rates companies based on respondents’ perceived performance about theirfirms’ digital transformation. According to the benchmark, only 5% of businesses have catapulted themselves into the Digital Leaders group; almost half are lagging behind.
“In the near future, almost every business will have software development expertise at its core. Many of these companies will be brand new, others – having not written a line of code in 20 years – will have been on a momentous journey. New digital products and services will drive the transformation of IT infrastructure as businesses struggle to manage 1000x more users and 1000x more data,” says Burton.
“Digital Transformation is the result of blending the power of technology with a rapidly adaptable culture that understands not only what technology can do for its business, but why it is so important in creating the future of the enterprise,” said Daniel Newman, principal analyst, Futurum Research. “Every C-Suite leader looking to up their investment in digital transformation needs to understand the threats to their industry and how technology can take their business to the next level to stay competitive.”
