Deloitte has released new research into how successful digital transformation strategies gave businesses an edge during the COVID-19 pandemic. The main takeaway from the report is that digitally mature organizations are more resilient, better able to navigate rapid change, and perform significantly better financially as compared to businesses without a cohesive digital strategy.
The new research found more than three-quarters of the leaders surveyed said their organizations' digital capabilities significantly helped them cope with the challenges triggered by the pandemic. Similarly, nearly two thirds of respondents believe organizations that fail to digitize in the next five years will be "doomed"
"Digital is the strategic issue of our time. Digital possibilities should shape a business' strategy while strategy simultaneously shapes digital priorities," said Rich Nanda, a principal in Deloitte Consulting who leads the US Monitor Deloitte strategy practice. "When a company infuses digital into its core strategy, it creates new ways to differentiate against competitors and can enable greater resiliency. Digital has helped companies navigate the COVID-19 crisis, but the need for digital capabilities and digitally-informed strategy will only grow."
Deloitte's research also found that digital transformation spending is still on the rise despite the pandemic, with respondents planning to spend on average around $12.6 million (or nearly .6% of their annual revenue) on digital transformation over the next 12 months.
Meanwhile, the report found that more than three-quarters of respondents expect their organizations to change more over the next five years than they did over the last five years. Three-quarters of respondents also said their organization's digital transformation strategy has led to major changes among senior leadership and boards compared to the previous two years.