Below, we’ll look at some of the top statistics, research, and trends for this year.
Digital Transformation and Digital Adoption Statistics for 2019
There are a few major trends that are dominating the industry this year.
We will look at each trend in turn.
Digital Transformation: The Big Picture
To begin with, what is the state of digital transformation and adoption across the globe?
The statistics below show that investments in digital transformation are continuing to accelerate:
- Many organizations think that over 50% of their revenue will come from digital channels by 2020
- There are conflicting reports on the success of digital transformation projects – a Nintex report found that 94% of decision makers see ROI from their digital transformation projects, while others claim that 70% of digital transformation projects don’t meet their goals
- IDC expects overall technology spending to top $2 trillion before 2021
- They expect that, by the end of 2020, 60% of all enterprises will be implementing fully-articulated digital platform strategies
- However, around 59% of companies are still digitally immature
- Top drivers of change include growth opportunities (51%) and competitive pressure (41%), according to a report by Prophet
- The World Economic Forum predicts that the global economic impact of digital transformation will hit $100 trillion by 2025
Clearly, disruptive change, transformation, and innovation will continue to dramatically impact businesses and the global economy.
Now, let’s look at some of the top areas of investment when it comes to technology adoption and digital adoption.
Digital Adoption and Technology Investments
Technology drives digital transformation.
This is why we should pay close attention to new innovations.
The right investments can deliver massive competitive advantages for early adopters.
In 2019 and the 2020s, we will see a proliferation of new developments, from 5G to AI to chatbots and digital assistants.
Here are a few of the top technology trends for this year:
- 5G – Since 5G is expected to become widely available in 2020, businesses are already investing in this space. By 2021, some expect the number of 5G connections to reach 20 to 100 or even 200 million. Spending on 5G infrastructure will likely exceed 2 billion USD.
- AI – IDC’s report, cited above, expects 40% of digital transformation initiatives to involve AI and cognitive abilities. AI was also one of the top investment areas for businesses engaged in digital transformation (34%), according to research by Prophet (link below).
- Chatbots – The same IDC report says that while bots and digital assistants will only execute 1% of digital transactions, they will influence 10% of sales for organizations that use them effectively. Another study found that 40% of large businesses will implement chatbots or digital assistants by 2019.
- Automation – In the above report by IDC, 71% of respondents claimed that automation would eliminate no more than a fifth of their jobs. Despite this, many employees remain concerned about automation and job displacement. The ROI of automation is massive – up to 176% in 11 months, according to Nintex.
This list just scratches the surface of digital adoption statistics.
Other technology investments range from blockchain to IoT to augmented reality.
But what’s more important is how these technologies are being applied.
Let’s look at some of today’s biggest digital adoption trends.
Education, Learning, and Training
With every new technology comes a learning curve.
That need for training is driving massive growth in digital skills training and education:
- Online learning has taken center stage. According to Zion research, the global learning management system market will reach nearly $20 billion by 2022. This figure is up around four-fold from its 2016 valuation of $5.19 billion.
- Despite this dominance, alternatives to learning management systems are growing exponentially. Digital adoption solutions, according to Gartner, are growing rapidly. Using contextual, in-app training, these systems increase user performance, productivity, and engagement.
- According to PwC’s 22nd CEO survey, a lack of digital skills impedes innovation, increases people costs, and affects the customer experience. Top solutions to this dilemma included significant retraining and upskilling (46% globally).
These statistics emphasize an important point that we’ll look at in more detail below – the human experience matters.
One area that this is most apparent is in interactions with customers.
The Customer Experience
Customer experiences have been in the spotlight for years.
And in 2019, the customer experience remains there:
- The Prophet report cited above said that the customer experience remains a top concern. Around 54% of their respondents focus on modernizing customer touchpoints and 45% aim at enabling infrastructure. Despite this, the report also found that 41% of companies invest in digital transformation without enough customer research.
- Research from Constellation agreed. Around 50% of their respondents were focused on “reaching and engaging customers more effectively.”
- PwC conducted a survey of consumers, finding that the customer experience has a significant impact on revenue and profit. Around one-third of US customers would leave a company after just one bad experience. And 54% say that the customer experience at most companies needs improvement.
Statistics such as these highlight the importance of the customer experience.
And they demonstrate why so many organizations are investing in the customer experience today.
It also points to another issue that is central to digital transformation – the human experience.
Despite the depth and breadth of global digital transformation, humans still lie at the heart of every business model.
For years to come, digital adoption, digital transformation, and digital disruption will continue to be fueled by technology.
However, the most successful companies will be those that put humans first.
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