A recent SAP survey – conducted among 3,100 global business decision makers — has disclosed the main benefits from digital transformation.
SAP said business leaders who have completed digital transformation projects across their entire organization report significant increase in employee engagement compared to those with more limited initiatives.
64 percent of executives with digital initiatives say their employees are more engaged, compared with 20 percent among organizations that have completed transformation projects in single business areas.
SAP made the announcement at the SuccessConnect event in Las Vegas August 29–31 at The Cosmopolitan of Las Vegas.
SAP Center for Business Insight group and Oxford Economics surveyed over 3,100 global business decision makers to examine the priorities driving digital transformation projects.
83 percent of digital transformation leaders expect digitalization to change talent management in the next two years. That figure compared with only 37 percent of organizations that have yet to begin digital transformation.
Respondents who completed digital transformation projects across their business have a more crystalized vision of the potential benefit across their HR processes, with 71 percent saying digitalization will make it easier to attract and retain the best talent, compared with 54 percent of other respondents.
About 52 percent of the businesses that have undergone digital transformation projects said they planned over the next two years to create new roles to reflect technological imperatives, compared with only 32 percent of companies that have yet to undertake digital transformation.
“This research shows digitalization depends on people, with the most innovative and forward-looking companies committed to investing in their workforce to ensure they are properly equipped to meet the challenges of tomorrow,” said Greg Tomb, president of SAP SuccessFactors.
Over a third of global companies believe that talent management and development are key drivers of digital growth. 31 percent agree that investment in employees’ digital skills would be the most important factor in increasing revenue in the coming years.
The banking sector showed the greatest commitment to increasing investment in digital skills over the next two years. 48 percent listed it as the most important factor to driving profit growth, while 45 percent of the professional services sector rated improving employee engagement as the most important profit-driving factor.
About 19 percent of American businesses said technology updates have completely or somewhat transformed their talent management processes, compared with only eight percent of UK businesses, seven percent of German organizations and five percent of Mexican businesses.
Digital leaders have stronger revenue growth and profitability today – and expect that advantage to continue over the next two years. Digital leaders expect 23 percent higher revenue growth than all others in the next two years, and 80 percent of leaders say transformation efforts have increased profitability versus 53 percent of all others.