72 Vital Digital Transformation Statistics: 2021/2022 Spending, Adoption, Analysis & Data
Digital transformation (DX) used to be something that’s just good to have. But since COVID-19 disrupted business operations worldwide, many organizations now see DX as a necessary step in preserving their business as reflected by the most current digital transformation statistics. Fueled by speedy internet everywhere, digitization now plays a critical role in adding business value. Proof of this is the way organizations have been investing in AI and top business intelligence platforms.
If you have yet to digitize your business, you’re missing out a lot. And chances are, your competitors are already into it, with 46% of small businesses using BI tools. There is also an increasing prevalence of multi-cloud and connected cloud solutions which signals that digital tech is continually improving the business landscape.
To give you a rundown of how digital transformation has been doing these, we have gathered some of the most relevant digital transformation data available. This should help you find a way to leverage these stats to improve your business.
Digital Transformation Statistics Table of Contents
Today’s organizations have been embracing digital transformation, with many companies having put a digital strategy in place. Now, such is true not only for large enterprises but even for startups, exponentially increasing the digital transformation market size. Various industries have been getting into the fray, among which are financial services and healthcare. Now, adopting a digital strategy doesn’t mean that your business will grow overnight. It takes years before organizations reap the benefits of such a strategy, a fact that is recognized by many of them.
Digitally transformed organizations are projected to contribute to more than half of the global gross domestic product (GDP) by 2023, accounting for $53.3 trillion (IDC, 2020).
65% of the world’s GDP is predicted to be digitized by 2022 (IMF, 2020).
70% of organizations have a digital transformation strategy or are working on one (PTC, 2019).
Industrial enterprises are seen to have benefited the most from digital transformations (PTC, 2019).
55% of startups have already adopted a digital business strategy (IDC, 2018).
38% of traditional businesses have adopted a digital business strategy (IDC, 2018).
89% of enterprises are planning to adopt or have already adopted a digital business strategy (IDC, 2018).
Top digital business strategy adopters include services (95%), financial services (93%), and healthcare (92%) (IDC, 2018).
39% of executives expect to benefit from their digital transformation initiatives in 3 to 5 years (Fortinet, 2018).
21% of North American and European enterprises say their digital transformation is done (Forrester, 2018).
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Top Benefits of Adopting a Digital Model
Top Benefits of Adopting a Digital Model Improve operational efficiency: 40
Improve operational efficiency
Top Benefits of Adopting a Digital Model Meet changing customer expectations: 35
Meet changing customer expectations
Top Benefits of Adopting a Digital Model Improve new product quality: 26
Improve new product quality
Top Benefits of Adopting a Digital Model Increase design re-use: 25
Increase design re-use
Top Benefits of Adopting a Digital Model Reduce product developmen costs: 24
Reduce product developmen costs
Top Benefits of Adopting a Digital Model Introduce new revenue streams: 21
Introduce new revenue streams
Top Benefits of Adopting a Digital Model Reduce cost of poor quality: 14
Reduce cost of poor quality
Top Benefits of Adopting a Digital Model Increase first pass yield: 5
Increase first pass yield
Digital Transformation Technologies Statistics
Digital transformation, as the term implies, relies on the use of new tech to modify key business processes and even existing services. There are a variety of technologies that companies are currently using in coming up with digital strategies. Technologies such as artificial intelligence, cloud computing, and the Internet of Things (IoT) are at the forefront of the push for digitalization. You need only to see artificial intelligence stats to affirm this. Meanwhile, check out the digital transformation technologies statistics listed below to learn more about these techs.
58% of companies with high digital maturity offer digitally connected products, while only 17% of lower-maturity companies said the same (Deloitte, 2020).
The implementation of digital technologies can help accelerate progress towards enterprise goals such as financial returns, workforce diversity, and environmental targets by 22% (Deloitte, 2020).
In fact, 69% of higher maturity companies are using digital technologies to cut carbon emissions, while 58% of lower-maturity companies are using them to lower consumption of natural resources (Deloitte, 2020).
The most successful organizations that dealt with the pandemic reported a variety of technology-related capabilities. 75% said they had the ability to fill tech jobs during the crisis, 67% said they were more advanced in using technology than their peers before the crisis, and 56% said they were the first movers in experimenting with digital technologies during the crisis (McKinsey, 2020).
51% of digital transformation efforts stem from growth opportunities (Altimeter, 2019).
60% of executives say the Internet of Things will play a critical role in their digital business strategy (IDC, 2018).
The top technologies already implemented include big data/analytics (58%), mobile technology (59%), and APIs and embeddable tech (40%) (IDC, 2018).
Executives say digital transformation’s top benefits include improvement of operational efficiency (40%), faster time to market (36%, and meeting customer expectations (35%) (PTC, 2018).
Less than 30% of technology vendors are active partners in organizations’ digital transformation initiatives (PTC, 2018).
Digital Transformation Management Statistics
Digital transformation is indeed a boon for many companies, hence the high adoption rate of digital technologies. However, jumping into the digitization bandwagon does not guarantee success. Seventy percent of such initiatives have been found to fail to reach their goals. The problem is seen to lie in the management of such strategies. Of course, digital asset management software benefits can help address these complications. But then again, tech managers often overlook factors such as business strategy, employee concerns, and customer experience, resulting in less than ideal outcomes. Proper management leads to excellent results; just take a look at the following stats that prove this point.
29% of executives from companies with high digital maturity reported digital transformation’s positive impact on growth and innovation, while 41% emphasized the positive impact on sales and marketing functions (Deloitte, 2020).
38% of executives plan to invest more in technology to make it their competitive advantage (McKinsey, 2020).
70% of organizations consider their CEO’s practical understanding of new technologies as adequate or above average (Futurum, 2018).
28% of chief information officers and 23% of chief executive officers are either owning or sponsoring digital transformation initiatives (Altimeter, 2019).
37% of IT initiatives by companies worldwide are focused on improving customer experience (Flexera, 2021).
39% of CEOs have placed digital transformation as the top priority for their CIOs (CIO, 2020).
67% of CIOs said creating new revenue-generating initiatives is among their job responsibilities (CIO, 2020).
78% of heads of IT said they are communicating with the board of directors more than ever before (CIO, 2020).
Improved revenue and stock prices are but two of the numerous benefits that digital transformation offers. However, financial benefits outshine all others as these are the main goals of every enterprise. Companies such as Target, Best Buy, and Hasbro, who were sensitive enough to capitalize on digital technology, have reaped their benefits early in the game. It, therefore, follows that all manners of technology vendors have gained significant digital transformation market share. If you look at the statistics below, you’ll see how much organizations have been investing in digital transformation.
40% of all technology spending is seen to go to digital transformations (CIO, 2018).
$2 trillion – The total enterprise spending on digital transformations in 2019 (CIO, 2018).
28% of companies view digital transformation as costly (Altimeter, 2019).
When it comes to tech initiatives, 54% of companies worldwide said they are prioritizing digital transformation, while 49% are prioritizing cybersecurity (Flexera, 2021).
$6.8 trillion – The projected value of direct investments in digital transformation between 2020 and 2023 (IDC, 2020).
By 2023, global spending on services and technologies that will allow digital transformation is estimated to amount to $2.3 trillion (IDC, 2020).
The global digital transformation spending in logistics is estimated to amount to $84.6 billion by 2027 due to the effects of the COVID-19 pandemic (ReportLinker, 2020).
IT leaders worldwide reported a median additional spend of 5% of IT budget to deal with the COVID-19 pandemic (KPMG, 2020).
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Revenue from Digital Transformation Statistics
Digital transformation has proven instrumental in improving corporate coffers and shareholder value. High-technology B2B sales are seen to emanate from digitalization. This view reinforces the fact that digital transformation is a game-changer for many enterprises.
Moreover, companies that were quick to implement digital technologies during COVID-19 were also able to protect their revenue or even grow it during the crisis. Consider the revenue derived from digital transformation, as reflected in the following statistics.
In 2016, high-tech B2B companies have reported a 10% to 20% cost reduction and revenue growth of 10% to 15% from transforming their customer experience processes (McKinsey, 2016).
Within the same year, the revenue growth of B2B digital leaders was five times more compared to their peers (McKinsey, 2016).
60% of marketers say that technology has significantly boosted competition (Adobe).
By 2018, it was found that start-ups can increase revenue by 34% using digital-first strategies (IDC, 2018).
More recently, high-tech B2B sales were seen to come from digital transformation in 2020 (Adobe, 2021).
Companies that have higher digital maturity reported 45% revenue growth compared to 15% for lower maturity companies (Deloitte, 2020).
Among companies with declining revenues due to COVID-19, 45% said they are increasing focus on digital transformation (McKinsey, 2020).
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Who is holding back companies' digital transformation initiatives?
Who is holding back companies' digital transformation initiatives? CEO or board of directors: 36.7
CEO or board of directors
Who is holding back companies' digital transformation initiatives? No one: 32.4
Who is holding back companies' digital transformation initiatives? Senior executive team (C-suite other than CEO): 32.1
Senior executive team (C-suite other than CEO)
Who is holding back companies' digital transformation initiatives? Department heads: 25.6
Who is holding back companies' digital transformation initiatives? Middle managers : 17.9
Who is holding back companies' digital transformation initiatives? Line employees: 10.4
Digital Disruption Statistics
New technologies are integral to digital transformation. However, many of these technologies can be cumbersome and complex, making it difficult at times for organizations to adapt to the changes that they bring about. Technology disruptions can impact a variety of business areas, among them job creation. Find out more about how technology disruption has been impacting companies in the following stats.
Among technological changes implemented by businesses during the pandemic, 93% of companies surveyed said they had to shift to remote work, 62% said they had to deal with increasing customer demand for online purchase and services, and 34% said there was an increase in migration of their company’s assets to the cloud (McKinsey, 2020).
54% of respondents believe that the change to remote work implemented during the pandemic will remain (McKinsey, 2020).
40% of executives reported that the top benefit of digital transformation was operational efficiency, while 36% said it was faster time to market (PTC, 2019).
64.5% of companies feel positive about their ability to adapt to technological disruption (Futurum, 2018).
67.8% of companies’ disruption has had a neutral-to-positive impact on job creation (Futurum, 2018).
37.3% of companies report a net increase in job creation from technology disruption (Futurum, 2018).
31.3% of companies report a negative impact of technology disruption on job creation (Futurum, 2018).
50.4% of organizations express a positive outlook about technology disruption (Futurum, 2018).
20% of all departments are unable to adapt to technology disruption (Futurum, 2018).
Workforce and Digital Transformation Statistics
Digital transformation is known to impact employees directly. This influence can either be positive or negative, depending on one’s standpoint. On the lighter side, digital transformation cannot occur without employees, which also entails the acquisition of highly-coveted digital skills. On the other hand, digitization is also seen to affect the existing job market adversely. Digitization has also paved the way for the creation of corporate roles that call for a different type of skillset. For example, the career path of digital project managers veers away from conventional project management roles.
71% of executives say the workforce is either very or essential to their digital transformation strategy (Industry Week, 2018).
Meanwhile, in recent years, 89% of heads of IT said they increasingly need to rely on advisors in order to navigate new technologies, processes, and methodologies (CIO, 2020).
90% of jobs are seen to require digital skills in the future (European Commission, 2017).
68% of executives believe that collaboration between people and AI will be key to the future of businesses (Fujitsu, 2018).
44% of workers aged between 16 and 74 in Europe do not have basic digital skills (European Commission, 2017).
Among the skills needed to support digital transformation, technology integration and implementation to the list at 49% (CIO, 2020).
15.7% of businesses say technology disruption has been a “job killer.” (Futurum, 2018).
41% of remote workers experienced cybersecurity incidents when their work setup shifted to a work-from-home arrangement (KPMG, 2020).
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Impact of Digital Transformation on Job Creation
Impact of Digital Transformation on Job Creation No change : 30.5
Impact of Digital Transformation on Job Creation Helped create a few new jobs: 24.4
Helped create a few new jobs
Impact of Digital Transformation on Job Creation Has only killed a few jobs: 16.6
Has only killed a few jobs
Impact of Digital Transformation on Job Creation Has definitely been a job killer: 15.7
Has definitely been a job killer
Impact of Digital Transformation on Job Creation Helped create a lot of new jobs: 12.9
Helped create a lot of new jobs
Technology Adoption Statistics
Digital transformation will not be possible without technology adoption. Slow technology adoption could prove to be a problem as many businesses have admitted to being slow in technology adoption. However, many companies claim to be comfortable with digital transformation and technology use, which sets the ideal condition for digitization. Check out the statistics below to know more.
15% of enterprises are using AI as of 2018 (CMO, 2018).
31% of enterprises are seen to adopt AI in 2019 (CMO, 2018).
76.6% of businesses say their relationship with technology and digital transformation is generally average or above average (Futurum, 2018).
IT, customer care, and marketing departments have been excelling in technology adoption (Futurum, 2018).
HR, manufacturing, and legal are considered most likely to adapt to technological change (Futurum, 2018).
It’s estimated that companies accelerated their adoption of digital technologies for customer and supply-chain interactions by 3 to 4 years due to the COVID-19 pandemic (McKinsey, 2020).
When the pandemic hit, North America took the largest leap in digitization with 60% of its products and services now fully or partially digitized (McKinsey, 2020).
72% of companies who were first in their industries to experiment with digital technologies during the pandemic reported having very effective responses to COVID-19 (McKinsey, 2020).
25% of organizations worldwide have adopted cloud-distributed technology on a large scale (KPMG, 2020).
Respondents said their companies acted 20-25 times faster than expected to a range of COVID-19 related changes. In the case of remote working, companies acted 40 times faster to put digital tools in place for remote work (McKinsey, 2020).
No Stopping Digital Transformation
Based on the data and statistics we’ve seen, there is no stopping the transformation of business and work to digital platforms. It was even expedited by the COVID-19 pandemic and many of the changes on how we work and how businesses conduct operations will likely remain even after governments are able to contain the health crisis.
The use of digital technology has also resulted in the creation of new corporate roles that require digital skills. Given these developments, practicality dictates that adoption be immediate.
The statistics we have presented are not only meant to inform. These can likewise be used in coming up with your digital business strategy or beef up your existing one.
Astrid Eira is a resident B2B expert of FinancesOnline, focusing on the SaaS niche. She specializes in accounting and human resource management software, writing honest and straightforward reviews of some of the most popular systems around. Being a small business owner herself, Astrid uses her expertise to help educate business owners and entrepreneurs on how new technology can help them run their operations. She's an avid fan of the outdoors, where you'll find her when she's not crunching numbers or testing out new software.
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