99 facts on where the future of business is heading in the digital economy
In 2017, SAP published in their web magazine Digitalist 99 facts regarding the future directions of business in the digital economy.
Columbus Estonia chose the most important ones and will share them with you.
- 72% of the heads of global enterprises believe that the next three years will be more critical for their sector than the last 50 years. Source: Forbes Insights, 2016 Global CEO Outlook
- Nowadays, an enterprise is 460% more likely to end activity in the next five years than in previous decades. Creative destruction is accelerated by the fact that enterprises invest in intangible assets such as databases, algorithms and skills of employees, but not in tangible assets such as factories and warehouses. Source: Tuck School of Business at Dartmouth, Vijay Govindarajan and Anup Srivastava, Strategy When Creative Destruction Accelerates
- Enterprises that generate 50% or more of their turnover via digital ecosystems achieve 32% faster turnover growth and 27% higher profit margins. Source: MIT Sloan Management Review, Thriving in an Increasingly Digital Ecosystem
- Only 5% of enterprises believe that they have reached a point in the digital world where they differ from their competitors. Source: Accenture, Digital Transformation in the Age of the Customer
- McKinsey report sets out that even though 51% of activities can be automated, less than 5% of works are replaceable by machines. Source: Yahoo Finance, 51% of all job tasks could be automated by today’s technology
- By 2020, 50% of digitalisation initiatives have failed since the approach intended for end-users is not fully functional. Source: IDC Research, Inc., IDC FutureScape: Worldwide Chief Marketing Officer 2017 Predictions
- Only 9% of enterprises have access to their data for financial analysis and planning in real time. And only 18% use such data for modelling with the help of big data. Source: Association for Financial Professionals|, AFP FP&A Benchmarking Survey
- Globally, 47% of users of business applications waste more than 10% of their day waiting for technological tools to display data, content or results. This constitutes more than 24 lost work days per year. Source: Oxford Economics, Mind the Gap Infographic
- Only 16% of CFOs of medium-sized enterprises believe that their enterprise is truly successful in managing innovation. Source: Cherry Bekaert, Survey Results: The Finance Function – Driving Successful Innovation
- 86% of clients are willing to pay more for an updated user experience and 55% are willing to pay for a guaranteed good experience. Source: The Huffington Post, 50 Important Customer Experience Stats for Business Leaders;
- Tarneahela digitaliseerimine suudab vähendada tarneahele kulusid kuni 50%, hankekulusid 20% ja tõsta kasumit 10%. Source: The Center for Global Enterprise, Digital Supply Chains: A Frontside Flip
- Industrial enterprises plan to invest 5% of their annual revenue in order to make their enterprise more digital. 55% of those expect investments to pay off in at least two years. Source: PwC, Industry 4.0: Building the digital enterprise
- In the future digital world, success is dependent on the enterprise’s capability to utilise digital opportunities in an innovative manner, rethink their strategy, culture and talents. Source: MIT Sloan Management Review. Is your Business Ready for thr Digital Future?:
- 86% of enterprises suggest that initiative is one of their most significant challenges, whereas only 10% believe that they have a great action plan. Source: Deloitte, Global Human Capital Trend 2015;
- Only 42% of enterprises state that they know how to create meaningful information from the information they are provided. Allikas: Oxford Economics, Workforce 2020;
- 73% of CEOs believe that the poor technical skills of their employees jeopardise the growth of their enterprise. Source: PxC, 18th Annual Global CEO Survey;
- 50% of positions that were eliminated during the 2008 economic crisis were positions that required medium skills, whereas only 2% of restored positions were intended for employees with medium skills. Source: The Economist Intelligence Unit, The Cratering of the Middle Class;
- Enterprises that involve and empower their employees on a higher level can achieve up to four times higher profit margins than those where involvement and empowerment is of little significance. Source: Towers Watson,The Power of Three: Taking Engagement to New Heights;
- 78% of employees believe that it is crucial to work at an enterprise that uses developed digital solutions and has a CEO who is engaged in developing digital solutions. Source: MIT Sloan Management Review, Is Your Business Ready for a Digital Future?;
- 57% of B2B purchase decisions are made before buyers have talked with the sales representative. Source: CEB, The End of Solution Sales;
- By 2020, 80% of business processes have been changed, digitalised or terminated through the use of new information, compared to the previous decade. Allikas: Forbes, Gartner predicts Three Big Data Trends for Business intelligence:
- Even though 90% of enterprises understand the importance of developed analytics that is capable of making predictions, less than 30% have actually implemented analytics and only 30% are planning to do so. Source: Sandhill, Dresner Benchmark Study Reveals Trends in Advanced and Predictive Analytics in BI;
- 80% of people purchase from enterprises that they trust and 68% actively recommend reliable enterprises. Source: Edelman, 2015 Edelman Trust Barometer;
- In 15 years time, there will be technology that enables to connect the human brain directly to the internet. Source: International Business Times, Ray Kurzwell: Human Brains Could be Connected to the Cloud by 2030.
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