The success rate of digital transformation is estimated to be 15%. Panasonic Connect 2023
Panasonic Connect Europe survey reveals 15% of firms have completed their digital transformation and that a shortage of experienced IT professionals is a major hindrance.
New data finds that 15% of companies who start digital transformation projects finish them.
Panasonic Connect Europe’s “Breaking Down the Barriers to Digital Transformation” study. Panasonic Connect makes rugged mobile tools, digital content systems, restaurant technology, and industrial equipment.
According to its analysis, European company leaders realize that technology and digital transformation are the key to productivity.
Business executives expect digitization to enhance productivity by 39% within three years and ROI by just under five years. Panasonic discovered 15% of organizations had finished their transformation initiative.
Over 40% of respondents indicated believed their company was behind on digital transformation.
IT shortage hinders digital transformation
Lack of internal knowledge (35%), internal IT personnel resource and skills (32%), worries about compatibility with current IT infrastructure (30%), and lack of external specialized IT help or awareness of expert suppliers (30%) are the main impediments to advancement.
“This research shows that European businesses understand that the latest technology solutions can transform their business operations and help them take major strides forward in productivity but for many there are still obvious barriers to overcome,” said Jan Kaempfer, Marketing Director for Panasonic Connect Europe.
He added: “Businesses lack internal experience and resources and struggle to get the external professional help they need to implement their goals.
“This is why Panasonic Connect Europe was founded little over a year ago to bring technological hardware, software solutions, and service experience together to help business-to-business organizations overcome their digital transformation concerns.”
Panasonic’s findings confirm other assertions that many digital conversions fail.
David Loseby, a behavioural scientist, researcher, and procurement expert, understands business’s digital transformation difficulties better than others.
“Most digital solutions have a success rate of roughly 30-40%, in terms of acceptance,” Loseby told Supply Chain Magazine.”
Digital changes face mindset failure.
He said that organizations’ “mindset failure” causes high failure rates.
Digital transformations are not technology-change efforts. People-change projects. If you don’t include those affected and force it on them, guess what? Rejection is common.”
Each technological transformation project must include re-skilling and role clarification, according to Loseby.
He warns: “You’re drawing them into the terror of the unknown. You must ensure that the transition process benefits them. If I’m an employee and you want me to give you my heart and soul, my expertise, and IP, don’t leave me worrying I’ll be moved elsewhere.”
Successful digital transitions are people-centered, not tool-centered, according to Loseby. He adds AI and ML programs must consider personnel, suppliers, and customers.