While most businesses in Singapore and other markets around the world recognize the inherent benefits of “going digital,” the majority of respondents are hitting roadblocks—lack of internal alignment, lack of adequate skills and plenty of cultural resistance, according to Progress’ global survey, “Are Businesses Really Digitally Transforming or Living in Digital Denial?”
A majority (92%) of Singapore companies say they have two years to make inroads before suffering financial or competitive consequences (49% say a year or less); 43% are worried they may already be too late.
Coupled with technology constraints and an overall inability to execute, the result is a growing state of anxiety about embarking on digital transformation, with some fearing it may already be too late.
In Singapore, all of the organizations view digital transformation as important or critical. Nearly half (49%) of respondents in Singapore and 62% globally say their organization is in denial about the need to transform digitally.
Main driver for digital transformation
The survey, conducted in Q1 2016 by Loudhouse, the specialist research division of Octopus Group, revealed that 69% of respondents say the main driver for digital transformation is optimizing customer experiences and engagement; 71% say customer engagement is a #1 priority for the next 12 months and 57% plan to invest in building applications in the next year.
The report also reveals that 69% feel IT is more likely to be the final decision maker/budget holder for digital initiatives; 75% say better alignment of IT and marketing is needed to deliver on digital transformation efforts.
A majority or 88% of respondents in Singapore say lack of digital skills is a barrier to providing improved customer experience through digital transformation; more than half cite lack of leadership and cultural resistance as key barriers. Other top challenges listed by global respondents included high reliance on IT and lack of a centralized digital strategy.
“Digital disruption is now part of our daily existence as it has changed how we live, communicate and work. Yet, many organizations in Singapore continue to deny that digital technologies have already radically transformed the business landscape and struggle to embark on the transformation journey, consequently risking their survival,” said Benjamin Wong, Managing Director, Asia, Progress. “This survey brings to light the reality of today’s digital transformation challenges. By providing business leaders with tangible data points, we hope they will better understand the key aspects to focus on in order to succeed in the changing business landscape.”