After a year of unprecedented change, new AWS Research shows how businesses are moving to accelerate digital transformation to “reinvent themselves”
To gain insight into how they imagine post-pandemic growth will be achieved, AWS surveyed 10,000 senior and IT managers in France, Germany, Israel, Spain, and the UK to obtain an understanding of how they managed to reinvent their businesses during the COVID-19 pandemic, often without a precise roadmap.
Many have plans to accelerate the digital transformation.
A new generation of business has emerged
The pandemic has laid bare the limitations of conventional business planning: carefully constructed annual roadmaps have created an illusion of control, while predictions based on the past have frequently proved unsuitable.
Many businesses admitted that they found the need to accelerate digital transformation rapidly during the pandemic proved to be a real challenge. 46% of respondents reported how their organization struggled to adapt over the past year.
Furthermore, 46% were aware of the threat from new entrants poised to capture new market share.
Companies have therefore had to revise their plans to adapt, innovate, and accelerate operations – all without increasing costs.
Despite this difficult period, we’ve seen the birth of a new type of business.
Many companies have integrated innovation into their strategy, utilizing technologies such as the cloud to move quickly, experiment, accelerate new business models, and regain lost market share.
They’re more agile, resilient, customer-centric, and more confident in their ability to adapt to changing circumstances.
From the need to accelerate digital transformation, two out of three managers (65%) say their organization has emerged from the pandemic more agile, adaptable, and confident.
They also confirm that the cloud has helped them reinvent and innovate (65%), scale to meet changing demand (63%), and reduce costs (60%).
Nearly two-thirds of respondents (64%) say their organization used new cloud services during the pandemic, and 40% even used cloud technologies for the first time to accelerate digital transformation.
Surprisingly, digital transformation initiatives have been brought forward by nearly two and a half years.
The managers interviewed underlined their confidence and optimism regarding the coming year: 89% of their businesses intend to accelerate the digital transformation to grow in the next year, expecting an average increase in revenues of 21%.
Business leaders have learned several lessons from the pandemic, such as the importance of more agile work practices (58%), better collaboration to solve problems (56%), and closeness to customers (55%).
They’re now actively using initiatives to accelerate digital transformation to improve productivity, collaboration. and customer experience and help employees enrich their skills.
The ability to reinvent themselves remains essential
Having learned from their experience during the pandemic, companies are undergoing a process of resurgence, now being far more resilient and better positioned to succeed in the new post-pandemic world.
Among business decision makers, 69% say they have a clear strategy for seizing opportunities, and 60% agree that they will have to re-adjust their business model once restrictions are lifted.
Accelerating digital transformation thus becomes the rule.
Cloud services are firmly at the heart of the economic activity of the future
According to the research, 64% of companies intend to accelerate digital transformation by adopting technologies such as cloud computing in the post-pandemic. 54% agree that their business depends upon the cloud.
However, there are warning signs for some companies regarding agility and transformation.
The internal challenges that companies still face to accelerate digital transformation are diverse: 50% of business decision makers say their organizations have not yet worked out how to associate business problems with technical solutions, while 47% say that employees are reluctant to change and 42% have noted a lack of skills.
After the pandemic is over, transformation will not be a priority for all business leaders: in fact, only 50% plan to continue transforming after Covid-19.
Naturally, these companies will face pressure on multiple fronts.
This article has been written in collaboration with BitMAT.