October 29, 2018
A mere 6% of Canadian businesses can be considered “digital leaders,” according to the Dell Technologies Digital Transformation Index (the DT Index).
The DT Index, which was completed in collaboration with Intel and released today, maps digital transformation progress of mid to large-sized companies and examines the digital hopes and fears of business leaders.
The study notes that while “Canadian businesses have a ways to go before the majority are digital leaders, they are hopeful that they can get there with the study revealing that 31% of them believe they’ll disrupt rather than be disrupted.
The DT Index’s calculations are based on companies’ perceived performance in the following areas: delivering against the core attributes of a digital business, their existing IT strategy, workforce transformation strategy and planned investments.
Two years after the DT Index’s initial launch in 2016, Dell Technologies and Intel say they have more than doubled the scope of the research, from 16 countries to 42 and benchmarked 4,600 businesses using the below groupings.
While there is minimal growth in the digital leaders group, the Digital Transformation Index has tracked dynamic movement across other groups. For instance, 29% of businesses now are categorized as Digital Adopters (up 17% from 2016). These companies have advanced digital plans and innovations in place to power their transformation.
However, it also reveals that too many Canadian companies are still coasting in the middle group or stuck in the bottom two groups meaning they’re either moving too slowly or don’t even have a digital plan in place.
According to the research, 89% of Canadian businesses are facing major impediments to digital transformation today.
The top five barriers to digital transformation are:
*Lack of budget and resources
*Data privacy and cybersecurity concerns
*Lack of the right in-house skill sets and expertise
*Lack of the right technologies to work at the speed of business.
“We’ve talked about being on the cusp of tremendous change for some time now,” said Kevin Connolly, president of commercial sales at Dell EMC Canada. “That’s no longer the case. The next digital era has arrived and it’s reshaping the way we live, work and conduct business. Canadian businesses are getting there but still have quite a ways to go if they want to meet the changing demands of customers.”
The research indicates that businesses are taking steps to overcome their barriers and combat the threat of being outmaneuvered from more nimble, innovative players.
“We’re at a crucial intersection – where technology, business and mankind meet to create a better, more connected world,” said Mike Sharun, president of enterprise sales at Dell EMC Canada. “However, only technology-centered organizations will reap the rewards offered by a digital business model.”
Further coverage will appear in the next issue of Connections+.