Time to embrace digital transformation, companies urged

By James Henderson
The average business is only 40% digitised, and is putting its future growth prospects at risk by not implementing its digital transformation in a speed...

The average business is only 40% digitised, and is putting its future growth prospects at risk by not implementing its digital transformation in a speedier fashion.

That’s the message from McKinsey’s ‘The digital effect’ report, which has just been released.

It found that companies and industries are slower to go digital than might be expected, with companies just 40% digitised on average.

The media and entertainment industry leads the way when it comes to embracing digitalisation, with an average digitalisation of 62%, with retail (55%) and high tech (54%) also impressing.

SEE ALSO:

However, industries such as consumer packaged goods (31%), automotive and assembly (32%), and financial services (39%) are lagging behind.

It could mean that the failure to embrace digital transformation could hit companies where it hurts – their bottom line.

The report says that companies with only average or bottom-performing digital upgrades are expected to see a 6.4% decrease in revenue annually.

But top performing companies expected to see a 0.8% annual increase in revenue if the current level of digitalisation continues. 

Share

Featured Articles

Chris Caplice - academic who helped make freight a science

Dr Chris Caplice of MIT is one of the most decorated and influential thinkers around freight and logistics, being behind MIT FreighLab and other ventures

News round-up: Supply chain, logistics and procurement

SMBs face greenwashing brand damage - Software Advice; Top 10 procurement platform providers - iSAP, Oracle & Coupa; Accenture supply & Ukraine war

Sustainability in supply chain is crucial - BBG's Coindreau

Mauricio Coindreau is Head of Procurement and Sustainability for Budweiser Brewing Group (BBG), part of AB InBev – the world’s biggest brewer

SMBs face greenwashing brand damage, says Software Advice

Sustainability

'Electricity 4.0’ the future of sustainability - Schneider

Sustainability

Retail seeking supply chain agility in omnichannel world

Digital Supply Chain