Mumbai: The rate of industry disruption led by digital transformation in India is faster than global counterparts. Nearly 78% of businesses believe digital start-ups will pose a threat to their organization, either now or in the future, according to new research from Dell Technologies announced today (13 October 2016). Almost half (45%) of global businesses surveyed fear they may become obsolete in the next three to five years due to competition from digital-born start-ups.
The research report finds that India has the potential to lead the world’s digital transformation. Only a small minority of surveyed companies have almost completed their digital transformation. While parts of many businesses are thinking and acting digitally, the vast majority (73%) admits digital transformation could be more widespread throughout their organization. Some companies are feeling badly bruised by the pace of change. More than half (52%) of business leaders have experienced significant disruption in their industries over the past three years as a result of digital technologies and the Internet of Everything, and 48% of global businesses don’t know what their industry will look like in three years’ time.
“With a vibrant startup ecosystem, keen government focus on digitally transforming India, and a tech-enabled consumer base, it’s not surprising that Indian enterprises have sensed the urgency to transform digitally. While transformation is not pervasive, it is critical for organizations to follow the leaders and adopt practices that can enable them to ride the wave of the fourth Industrial Revolution. India has high potential to lead the world in digital transformation, and at Dell Technologies we are in a unique position to accelerate this progress,” said Rajesh Janey, President & Managing Director, India Enterprise, Dell EMC.
Disruption appears to be a new normal as over 90% of enterprises have experienced disruption, and 26% don’t know what their industry will look like in three years. Over half the enterprises in India who are digital leaders are being driven to transform by customer demands, while 42% are feeling the pressure from their own C-Suite. 9 in 10 have witnessed the entrance of new competitors as a result of digital technologies.
There are many obstacles for digital transformation. These include immature digital culture for 33%, lack of budget and resources for 30%, and lack of right technologies to work at the speed of business for 32%. Nearly half (43%) don’t measure their digital transformation success.
87% face an ongoing need to invest in reskilling their internal IT teams to support transformation, yet half of them rated available training resources internally as fair to average. Less than 10% rated the internal skills for digital transformation as excellent.