Time to embrace digital transformation, companies urged

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.

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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.