While I do hate the phrase digital transformation, there’s some value in the research around it. Let’s pull from TechAisle today.
Small business adoption of digital transformation is still at a primary stage. In 27% of small businesses (1-99), digital transformation is either “nonexistent, “in the shadows,” or “siloed.” However, this is vastly lower from 51% in 2020, indicating that small businesses drastically improved their approach to transformation within the last year. Midmarket firms, which have higher overall digital transformation adoption rates, are also much more advanced in their approaches. 90% of midmarket firms take either an “inclusive” or “holistic” approach to digital transformation today. Data shows that there has been an increase of 34% within midmarket firms (100-999) and a corresponding increase of 26% within upper midmarket firms (1000-4999) in their approach to holistic digital transformation from siloed or inclusive approaches.
To explore the impact of digital transformation, Techaisle compared the stages to different business and technology measures. The most intriguing result came from evaluating revenue trends with the approach to digital transformation. Across small businesses, high-growth organizations are at least twice as likely to report a holistic approach to digital transformation than their low-growth/no-growth peers and 2-3 times less likely to have an in the shadows approach or no digital transformation activities at all. Small businesses with a holistic/inclusive approach are experiencing a 6.6% revenue growth compared to only 2.5% within the siloed/in-the-shadows segments.
Within the midmarket (100-999), approaches may be similar, but the growth experienced by the holistic segment is higher, 6.5%, as compared to 3.6%. Even in the upper mid-market firms (1000-4999), the growth rate is 7.4%, higher than the firms with siloed/in-the-shadows approaches.
Why do we care?
It’s this holistic approach that catches my eye. We’re looking for ways to maximize business outcomes for us and for our customers, and here’s the takeaway. And the bigger the company the bigger the gain – that’s intuitive but useful.
Thus what we’re looking for is a way to take technology, leverage it holistically across a business, and get the biggest gains. Sounds easy, right? If it was everyone would be doing it… but that’s why there’s high margin opportunity in thinking this way.