A commitment to digital pays off: Some 80% of companies that have undergone digital transformation efforts reported increased profitability, compared to 53% of other companies, according to a new report from SAP, released Wednesday at SuccessConnect in Las Vegas.
The SAP Center for Business Insight and Oxford Economics surveyed 3,100 global business decision makers to determine the factors driving digital transformation projects. More than one-third of global companies said that talent management and development were key drivers of digital growth, the report found.
Some 34% of decision makers said that talent attraction and retention would be a leading growth factor over the next two years. And 31% of decision makers said investment in employees' digital skills would be key in increasing revenue during this time.
Enterprises that have completed digital transformation projects and those that have yet to adopt digital strategies take starkly different approaches to talent management, the report found. Some 83% of digital transformation leaders said they expect digitization to change talent management over the next two years, compared to just 37% of organizations that have not implemented digital strategies. And 35% of digital leaders said they believe digital transformation has already made it easier for them to attract and retain talent, compared to 7% of other organizations.
"Today's leading businesses are putting their employees at the heart of their digital transformation strategies," SAP SuccessFactors president Greg Tomb said in a press release. "This research shows successful 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."
In terms of geography, decision makers in the US say digital transformation has had a greater positive impact on talent retention and development than those in other nations, the report found. Some 19% of US businesses said technology updates have completely or somewhat changed their talent management processes, compared to 8% of UK businesses, 7% of German businesses, and 5% of Mexican businesses.
Digital transformation efforts also impact employee engagement, SAP found: 64% of businesses that completed digital transformation projects across the organization reported that their employees are more engaged, compared to 20% among businesses that have completed transformation projects in a single business area.
Further differences existed in terms of hiring expectations among digital leaders and laggards, SAP found: 52% of businesses that have undergone digital transformation projects said they planned to create new roles to reflect technological goals in the next two years, compared to 32% of companies that have yet to undergo digital transformation.
"Digital transformation is about more than investing in the latest technology," says Edward Cone, Technology Practice Lead for Oxford Economics. "People matter most - how they work, what they know, which skills they need in a changing workplace. Most companies have only begun to address these human factors, and those that fall behind may never catch up."
SEE: How Sephora is leveraging AR and AI to transform retail and help customers buy cosmetics (free PDF) (TechRepublic cover story)
Want to use this data in your next business presentation? Feel free to copy and paste these top takeaways into your next slideshow.
- 34% global business decision reported that talent attraction and retention would be a leading growth factor over the next two years. -SAP Center for Business Insight and Oxford Economics, 2017
- 31% of decision makers said investment in employees' digital skills would be key in increasing revenue in the coming years. -SAP Center for Business Insight and Oxford Economics, 2017
- Some 80% of companies that have undergone digital transformation efforts reported increased profitability, compared to 53% of other companies. -SAP Center for Business Insight and Oxford Economics, 2017
- 3 steps to create a corporate vision for digital transformation (TechRepublic)
- The top 10 barriers to digital transformation (TechRepublic)
- The 5 pillars of digital transformation businesses need to set themselves up for success (TechRepublic)
- Five winning plays for digital transformation (ZDNet)
- Advanced Business Skills Bundle (TechRepublic Academy)
- Ebook—IT leader's guide to achieving digital transformation (Tech Pro Research)
Alison DeNisco Rayome is a Staff Writer for TechRepublic. She covers CXO, cybersecurity, and the convergence of tech and the workplace.