33 percent business leaders have cancelled a project in the last two years at a cost of $499,000, while 28 percent has experienced a failed project costing $655,000, Fujitsu said its report on digital transformation.
Fujitsu, which surveyed 1,625 business leaders for the new report called The Digital Transformation PACT, said 84 percent of businesses say that their customers expect them to be more digital. 71 percent said they are behind their competitors. 66 percent believe they will lose customers relative to their competitors as a result of digital transformation.
46 percent have already implemented digital transformation projects, while 86 percent are planning for the impact of technology on their business beyond the next 12 months.
“To realize their digital vision, it’s crucial that businesses have the right skills, processes, partnerships and technology in place. With digital disruption rapidly changing the business landscape, businesses can’t afford to fail in their transformation,” said Duncan Tait, CEO, SEVP and head of Americas and EMEIA at Fujitsu.
90 percent of business leaders are taking steps to increase their access to digital expertise, with 70 percent admitting there is a clear lack of digital skills within their organization. 80 percent say that a lack of skills is the biggest hindrance to addressing cyber security.
“Looking to the future, skills will continue to be a key business issue; 93 percent say upskilling staff will be vital to their organization’s success in the next three years, while 83 percent believe artificial intelligence will transform the skills needed by 2020,” Fujitsu said.
90 percent say their organization has a defined digital strategy, while 83 percent are confident that the rest of the business knows what it is. 74 percent say that projects are often undertaken that aren’t linked to the overarching business strategy. 72 percent say shadow digital projects are the only way parts of the organization can complete meaningful innovation.
66 percent say the cost of failure has put them off future digital transformation.
Over half are planning to introduce cyber security solutions (52 percent) or the Internet of Things (51 percent), with cloud computing (47 percent) and artificial intelligence (46 percent) in the next 12 months.