In today’s fast-paced digital era, businesses face constant pressure to evolve or risk being left behind. The drive towards digital transformation is oftentimes fuelled by the competitive threats that loom over traditional business models.
A recent study commissioned by eCommerce software provider Sana Commerce reveals that the majority of digital transformation initiatives are primarily motivated by competitive pressures. Existing companies pose a significant threat to 38% of organisations, while 35% are challenged by new online market entrants. In addition, 34% identify cheaper overseas suppliers as a potential threat.
Digital transformation is no longer a choice but a strategic necessity for B2B organisations. It’s a ‘do or die’ scenario where companies must adapt to survive in the digital marketplace. As Michiel Schipperus, CEO of Sana Commerce, indicates, companies feel amplifying pressure from increasing online competitors in unexplored territories.
Remarkably, 72% of organisations anticipate a future where 100% of their products are sold online. This highlights the critical role of eCommerce in shaping business strategies and managing customer experiences.
Despite the urgency, only 4% of organisations have completed their digital transformation projects. This highlights the complexity and scale of these initiatives.
A major hurdle is the persistence of legacy technology, a challenge for 41% of businesses. Added to this is an internal resistance to change, as recognised by over a third of participants in the survey.
Two-thirds of surveyed organisations have established a digital strategy, with 28% moving swiftly to implement changes. However, execution remains a work in progress for most.
Internal resistance is a common barrier that can derail digital transformation efforts. Overcoming this hurdle requires a cultural shift within organisations and a commitment from leadership to foster a forward-thinking mindset.
Companies must engage employees through training and open communication to ensure they are aligned with the evolving strategic goals.
Embracing change requires an orchestrated effort, including clear vision and support at all organisational levels.
E-commerce is pivotal in the digital transformation journey, playing a vital role in enhancing the customer experience. Companies are increasingly integrating eCommerce solutions to streamline operations and meet consumer demands.
Implementing eCommerce as part of a broader digital strategy enables businesses to remain competitive and agile amidst market changes.
Seamless integration of online platforms is essential for providing exemplary service, reflecting growing consumer expectations.
Legacy technology remains a significant obstacle in achieving successful digital transformation. Companies need to overhaul outdated systems and replace them with innovative solutions to stay competitive.
Modernising technology infrastructure is critical, yet presents financial and logistical challenges.
Investing in modern technology enhances operational efficiency and positions companies to leverage emerging opportunities.
Digital transformation is an essential response to competitive threats in today’s business environment. Organisations need to proactively address internal and external challenges to succeed in a digital economy.
Embracing digital transformation is imperative for businesses aiming to thrive amidst competitive pressures. By strategically addressing technological and cultural hurdles, companies can unlock new opportunities and ensure sustainable growth in an ever-evolving marketplace.