the 2016 essential statistics to business and digital transformation

Curated by Sean Moffi0 @seanmoffi0 & Eric Weaver @weave

The 115+ Essen+al 2016 Sta+s+cs on:

Business & Digital Transforma+on Providing the Goods for Deeper & Faster Business Change via Accelera+ng Digital Maturity

Our Insight-‐filled, Data-‐based Special Sauce ▶  Variety & Credibility -‐ Dis8lled from 20 different reputable sources .

▶  Current -‐ All 2014, 2015 and 2016-‐based sta8s8cs.

▶  Holis+c -‐ Deals with business transforma8on from 12 key, relevant facets.

▶  Digitally-‐Savvy – Acknowledges the power of digital and technology to transform business in the connected age.

▶  Helpful – Designed to make the case for your digital transforma8on and any angle of opposi8on to change.

12 Facets of Business Transforma8on 1  Overall Business Transforma+on & Changing Business Models 2  Digital Transforma+on 3  Technology Transforma+on 4  Purpose, Vision & Strategy Transforma+on 5  Leadership & Governance Transforma+on 6  Opera+onal Transforma+on 7  Brand & Content Transforma+on 8  Customer Experience & Engagement Transforma+on 9  Talent Transforma+on 10  Culture Transforma+on 11  Innova+on Transforma+on 12  Futureproofing & Foresight

12 Business Transforma8on Facets 1  Overall Business Transforma+on & Impera+ves

2  Digital Transforma+on

3  Technology Transforma+on

4  Purpose, Vision & Strategy Transforma+on

5  Leadership & Governance Transforma+on

6  Brand & Content Transforma+on

7  Customer Experience & Engagement Transforma+on

8  Talent Transforma+on

9  Culture Transforma+on

10  Opera+onal Transforma+on

11  Innova+on Transforma+on

12  Futureproofing & Foresight Transforma+on

1. 1. Overall Business Transforma+on & Changing Business Models

Transforma)on Stat #1 -‐ Survival:

88% of the companies in the Fortune 500 from 1955 are gone.

Source: S&P

Transforma)on Stat #2 – Digital-‐fueled Expansion:

More than 3/4s of businesses expect to be compe+ng in a new segment of business over the

next 3 years. Source: Accenture

Transforma)on Stat #3 Transforma)on Drives Performance:

Digital transforma+on is expected to boost the bo\om line of companies by +50% over

the next 5 years. Source: McKinsey

Transforma)on Stat #4a Outside Threats:

74% of CEOs are concerned about new entrants disrup+ng

business models. Source: KPMG

Transforma)on Stat #4b Outside Threats:

54% of execu+ves believe their biggest future compe++on will be from other industries; only 29% believe from their same industry.

Source: IBM

Transforma)on Stat #5 New Economy Growth :

The digital economy is expected to grow at +10% per year, genera+ng $24 Trillion in commerce currently.

Source: Global Connected Index

Transforma)on Stat #6 Market Expansion:

86% of organiza+ons say that digital business has prompted them to enter, or consider entering, a new market.

Source: Accenture

Transforma)on Stat #7 Confidence Factor:

Only 25% of execu+ves report feeling confident on how to drive digital revenue streams and value

crea+on. Source: PwC

Transforma)on Stat #8 Connec)on & Scale:

7 out of 10 new business models will develop via some marriage of crowd shibs with technology.

Source: Gartner

Transforma)on Stat #9 Front-‐line Confidence:

71% of the front line employees of digitally immature companies

are not confident in their business direc+on.

Source: Deloi\e

Transforma)on Stat #10 Business Top Challenge:

The #1 challenge of digital transforma+on is developing new business models to cope with increased connec+vity and

engagement. Source: CIO Report













2. Digital Transforma+on

Transforma)on Stat #11 – Digital = Survival:

67% of execu+ves believe digital transforma+on is a ma\er of survival for their business.

Source: Cap Gemini

Transforma)on Stat #12 – Digital Legacy:

“Digital” is the main reason why half the companies have

disappeared from the Fortune 500 since 2000.

Source: Accenture

Transforma)on Stat #13 – Pervasiveness:

The +me people spend in digital each day has risen from 2.7 hours in 2008 to 6.0 hours in 2016 .

Source: Precog Digital

Transforma)on Stat #14 – Growth in Implementa)on:

The percentage of advanced digital transforma+on ini+a+ves will double by 2020, from 22% of

companies to 50%. Source: Forbes

Transforma)on Stat #15 – Digital is a Revenue Engine:

CEOs expect digital revenues to increase by 80% by 2020.

Source: Gartner

Transforma)on Stat #16 – Early Days Yet:

47% of companies haven’t started to embark on a digital transforma+on process yet.

Source: Progress

Transforma)on Stat #17– Lip Service:

62% of organiza+ons are in denial about the pace of their digital

transforma+on. Source: Loudhouse

Transforma)on Stat #18– Lacking Digital Help:

Only 34% of businesses report being very sa+sfied with their

digital vendors. Source: Accenture

Transforma)on Stat #19– Urgency:

Over half of execu+ves and 10 out of 13 industries an+cipate

massive digital disrup+on in their industry over the next 12 months.

Source: HBR

Transforma)on Stat #20– Pace & Redistribu)on of Wealth:

It has taken 20 years for the average Fortune 500 to reach

billion dollar valua+ons, it now takes digitally-‐enabled

startups 4 years. Source: World Economic Forum













3. Technology Transforma+on

Transforma)on Stat #21– External Factor Importance:

CEOs now rank technology factors as the biggest influence on their business, it was ranked 6th as

recently as 2004. Source: IBM

Transforma)on Stat #22– Investment:

Eight out of twelve future business investment areas are focused on implemen+ng new

technologies. Source: CMO Innova+on Trends

Transforma)on Stat #23– Personal Connec)on Explosion:

Connected Devices Per Person: 2003 – 0.08/person 2015 – 3.1/person 2020 – 6.6/person


Transforma)on Stat #24– Things Connec)on Explosion:

The level of connec+vity related to products, assets and processes will increase by 50% across all industry value chains this year.

Source: IDC

Transforma)on Stat #25– Paradox:

Despite expecta+ons that digital will influence close to half of sales by 2020, most execu+ves don’t factor “technology” as a major influence in business strategy.

Source: Forrester

Transforma)on Stat #26– Technology Enablement:

57% of organiza+ons say implemen+ng key digital

technologies is a cri+cal enabler to business.

Source: Accenture

Transforma)on Stat #27– Reputa)on Management:

90% of CEOs are changing the way they use technology to deliver on new stakeholder expecta+ons and demands.

Source: PwC

Transforma)on Stat #28– Expected Outcomes:

The top three benefits expected from technology transforma+on:

Produc+vity (83%) Innova+on (82%)

Cost Efficiencies (82%). Source: Accenture

Transforma)on Stat #29– Near Term Technologies:

The top 10 disrup+ve technologies believed to create

the most poten+al impact: ①  Mobile Internet ②  Automa+on of Knowledge Work ③  Internet of Things ④  Cloud/As a Service Technology ⑤  Robo+cs ⑥  Autonomous Vehicles ⑦  Next Genera+on Genomics ⑧  Energy Storage ⑨  3D Prin+ng ⑩  Advanced Materials.

Source: McKinsey

Transforma)on Stat #30–Technology Now Accessible:

The cost of technology has plummeted to allow for expanded

uses and applica+ons; Cost of DNA Sequencing:

$2.7B in 2000, now $1k in 2016 Solar Power:

$30 kwH in 1984 now $0.05 kwH in 2016 Drones:

$100k cost per unit in 2007, now $100 in 2016. Source: World Economic Forum/Precog Digital













4. Purpose, Vision & Strategy Transforma+on

Transforma)on Stat #31– Clear Strategy:

Only 27% of today’s businesses have a coherent digital strategy.

Source: Forrester

Transforma)on Stat #32– Biggest Impasse:

The majority of mainstream companies find the biggest

obstacles to digital transforma+on are “too many priori+es” and “lack

of strategy”. Source: Deloi\e

Transforma)on Stat #33– Change Failure:

60% of digital transforma+ons will not be able to scale because of lack of strategic architecture.

Source: IDC

Transforma)on Stat #34 – Wrong Target:

The key indicator of digital immature companies is they look to digital to increase efficiencies, not to drive customer experience,

topline growth or business transforma+on.

Source: Deloi\e

Transforma)on Stat #35 – Digital Leadership:

Only 11% of companies believe their digital strategy is excellent.

Source: Forrester

Transforma)on Stat #36 – Digital Prominence in Strategy:

67% of the Global 2000 will have digital transforma+on at the

centre of their corporate strategy by 2018

Source: IDC

Transforma)on Stat #37 – Digital Alignment:

Only 1 in 3 business leaders agree that their digital priori+es are fully aligned with the organiza+onal

priori+es. Source: Fujitsu

Transforma)on Stat #38 – Digital Strategy Implementa)on:

The second biggest challenge of digital transforma+on efforts is implemen+ng digital strategy

organiza+on-‐wide. Source: The CIO Report

Transforma)on Stat #39 – Guiding Purpose:

Companies with a strong sense of purpose cause people to believe they can stay ahead of industry

disrup+ons (83% agreement vs. 42% companies without strong purpose).

Source: Deloi\e













5. Leadership & Governance Transforma+on

Transforma)on Stat #40 – Board Area of Concern:

45% of companies say that digital disrup+on is not seen as worthy

of board-‐level a\en+on. Source: Digital Vortex

Transforma)on Stat #41 – Leadership-‐driven Growth:

78% of CEOs don’t believe their leaders are excellent at driving

growth. Source: Strategy&

Transforma)on Stat #42 C-‐Suite Cogni)ve Dissonance:

2/3rds of leaders believe they understand digital strategy, yet only 1/3 of their senior managers

agree. Source: Forrester

Transforma)on Stat #43 Governance:

52% of business leaders plan to increase new digital governance in

the next 12 months. Source: Accenture

Transforma)on Stat #44 Leaders as Role Models:

86% of CEOs believe it is crucial to champion digital technologies.

Source: PwC

Transforma)on Stat #45 Board Level Digital Radar:

Only 30% of boards are good at an+cipa+ng evolving technology

and market trends. Source: PwC

Transforma)on Stat #46 Senior Level Digital Radar:

Leadership understands technology and trends:

In digitally mature companies – 96% agree,

In digitally lagging companies – 7% agree.

Source: Deloi\e

Transforma)on Stat #47 Connected Networks:

The average CEO Linkedin connec+ons = 910,

The average LinkedIn member connec+ons = 394.

Source: Linkedin

Transforma)on Stat #48 Leadership Capabili)es:

Leadership has requisite skills to guide strategy:



Source: Deloi\e













6. Opera+onal Transforma+on

Transforma)on Stat #49 Implementa)on Success:

Of companies making progress on digital transforma+on, only a third

say they are on schedule. Source: Tech Validate

Transforma)on Stat #50 Digital Readiness:

Only 26% of companies are completely ready to execute

digital strategies. Source: Accenture

Transforma)on Stat #51 Digital Integra)on:

70% of execu+ves have started digital transforma+on of their

supply chains. Source: Cap Gemini

Transforma)on Stat #52 Digital Outsourcing:

88% of firms are using third party providers for at least one component of their digital transforma+on work.

Source: Accenture

Transforma)on Stat #53 Digital Business Processes:

Only 14% of organiza+ons have completely digi+zed business

processes Source: IDC

Transforma)on Stat #54 Digital Big Picture:

Execu+ves believe they are, at best, 25% toward realizing the

end state of their vision for digital programs.

Source: eMarketer

Transforma)on Stat #55 Resource Deployment:

Company is deploying the right digital resources and skills:



Source: Deloi\e

Transforma)on Stat #56 Digital Failure:

Nearly 60% of projects aimed at business transforma+on do not

meet their objec+ves. Source: IBM

Transforma)on Stat #57 Digital Runway:

The average amount of +me it takes for an incumbent

organiza+on to be disrupted is 3.1 years;

62% of execu+ves believe they are falling behind.

Source: Digital Vortex/Fujitsu













7. Brand & Content Transforma+on

Transforma)on Stat #58 Differen)a)on:

Only 5% of organiza+ons believe they have mastered digital to the point of differen+a+on from

compe+tors. Source: Digital Vortex/Fujitsu

Transforma)on Stat #59 Marke)ng Influence:

Two-‐thirds of CMOs recognize the need to infuse a digital focus across the organiza+on, only 7% believe they are succeeding.

Source: Accenture

Transforma)on Stat #60 Brand Valua)on:

In our current connected age, 84% of a company is made up of intangible assets (essen+ally the brand), it was only 17% in 1975.

Source: S&P 500

Transforma)on Stat #61 Digital Brand Resistance:

38% of people have used digital ad blocking sobware.

Source: Adobe

Transforma)on Stat #62 Digital Brand Aden)on:

A\en+on span in digital is 8 seconds, down from 12 seconds in early ‘00s and now less than a

goldfish . Source: Microsob

Transforma)on Stat #63 Digital Brand Trust:

The three most trusted sources in the digital age are: other trusted

people, online op+on and editorial.

Source: Nielsen

Transforma)on Stat #64 Digital Brand Storytelling:

73% of today’s digital customer believe brands should tell stories

not sell stuff. Source: Edelman Berland

Transforma)on Stat #65 Digital Cluder:

Digital content output per brand is up 35%, however average engagement is down 16%.

Source: Track Maven

Transforma)on Stat #66 Digital Media Budgets:

Digital ad spending will eclipse TV ad spending in 2018.

Source: PwC

Transforma)on Stat #67 Digital Marke)ng Focus:

Digital marke+ng ini+a+ves currently believed to have the

biggest impact: ① Marke+ng Automa+on ②  Content Marke+ng ③  Big Data ④ Mobile Marke+ng ⑤  Conversion Rate Genera+on

Source: CMO Council

Transforma)on Stat #68 Marke)ng Time Alloca)on:

60% of marketer’s +me is currently allocated to digital

marke+ng ac+vi+es:

Source: Smart Insights

Transforma)on Stat #69 Pace of Brand Change:

Two-‐thirds of CMOs find it difficult to keep up with the pace of technology and marketplace

change.

Source: Forrester

Transforma)on Stat #70 Brand Digital Content Engagement:

Marketers who priori0ze blogging are 13x more likely to achieve a posi0ve ROI on their efforts.

Source: Hubspot













8. Customer Experience & Content Transforma+on

Transforma)on Stat #71 Customer Influences:

Number of online content pieces/influences before consumers make a

purchase – 18. Source: Google

Transforma)on Stat #72 Customer Planning:

79% of companies have not mapped out the customer journey and digital

touchpoints. Source: Al+meter

Transforma)on Stat #73 Media Mismatch:

Percentage of consumer’s media 0me that is digital – 48%,

percentage of media spend that is digital – 32%.

Source: precog Digital

Transforma)on Stat #74 Customer Experience Planning:

63% of organiza0ons plan to improve their online customer

experience this year. Source: Accenture

Transforma)on Stat #75 Customer In)macy:

88% of business leaders know they need to get closer to the customer.

Source: McKinsey

Transforma)on Stat #76 Customer Engagement Value:

Highly engaged customer’s loyalty, value, advocacy and upsellability –

2X, 3X, 4X & 6X vs. regular customers.

Source: Rose\a

Transforma)on Stat #76 Customer Experience Success Factors:

“Internal Talent” and “Customer Experience Strategy” are the most

important success factors for customer experience mastery.

Source: HBR

Transforma)on Stat #77 Customer Experience Importance:

The most exci0ng element of digital transforma0on is op0mizing the

customer experience. Source: econsultancy

Transforma)on Stat #78 Digital Customer Service:

66% of people/customers will avoid live confronta0on where possible, 50% believe they can be]er express

themselves online. Source: Trust Pilot

Transforma)on Stat #79 Customer Experience Priority:

89% of companies expect to compete mostly on the basis of customer experience, versus 36%

four years ago. Source: Gartner













9. Talent Transforma+on

Transforma)on Stat #80 Digital Talent Pool:

27% of digital leaders rate technology skills to be their biggest

pain point. Source: Forrester

Transforma)on Stat #81 Digital Talent Pool:

44% of execu0ves say knowing how digital technologies can impact

current business processes/models is the biggest missing organiza0onal

skill. Source: MIT Sloan

Transforma)on Stat #82 Fluid Workforce:

Percentage of workforce that considers themselves “freelance/

independent”: 2005 – 24% 2020 – 40%.


Transforma)on Stat #83 Human Resource Gaps:

Only 20% of business leaders believe their HR func0on is enabling them to

digitally transform. Source: Russell Reynolds

Transforma)on Stat #83 Talent/Tech Aspira)ons:

88% of technology professionals expect increased employee

produc0vity from digital technology. Source: Tech Validate

Transforma)on Stat #84 Work Automa)on:

By 2018, 20% of all workers will use automated assisted technology to make decisions and get work done.

Source: IDC

Transforma)on Stat #85 Employee Experience:

87% of businesses expect digital transforma0on to have a posi0ve

impact on the employee experience. Source: Apigee

Transforma)on Stat #86 Digital Accountability:

28% of digital teams now operate as standalone groups inside companies with their own headcount, budget

and strategic voice. Source: Forrester

Transforma)on Stat #86 Digital Transforma)on Skills:

Only 17% of companies say they hire employees with the right digital

transforma0on skills. Source: SAP

Transforma)on Stat #87 Digital Top Talent Sets:

Digital leaders rate usability, customer experience and crea0ve skills as the hardest skills to recruit

for. Source: Forrester

Transforma)on Stat #88 Talent Impact on Digital Transforma)on:

The third most important challenge of implemen0ng digital technology is recrui0ng talent with the right digital

skills. Source: Fujitsu

Transforma)on Stat #89 Talent Impact on Digital Transforma)on:

78% say be]er alignment of IT and marke0ng is required to deliver

digital transforma0on. Source: Progress













10. Culture Transforma+on

Transforma)on Stat #90 Employee Engagement:

33% of employees are engaged in their work, but 17% are ac0vely

disengaged. Source: Gallup

Transforma)on Stat #91 Cultural Enabler:

54% of business leaders say fostering a culture of innova0on is a cri0cal

enabler of digital business. Source: Forrester

Transforma)on Stat #92 Cross Silo Digital :

70% of siloed digital transforma0on efforts will fail based on lack of:

collabora0on, integra0on, sourcing and project management .

Source: IDC

Transforma)on Stat #93 Employee Network Poten)al:

Employees have 10X more followers collec0vely than their corporate

social media accounts. Source: LinkedIn

Transforma)on Stat #94 CDOs on the Rise:

Number of Chief Digital Officers in Companies:

2007 – 5 2015 – 2,000 2,020 – 15,000


Transforma)on Stat #95 Digital Recruitment Impact:

“It is important for me to work in a digitally-‐enabled organiza0on and

leader” – 81% agree. Source: Deloi\e

Transforma)on Stat #96 Digital Cultural Impact:

91% believe that digital technology can radically transform how people

work; only 43% of employees are currently sa0sfied with their company’s digital

setup. Source: Deloi\e

Transforma)on Stat #97 Digital End Game:

82% of business leaders expect to be a digital business 3 years from now.

Source: Accenture

Transforma)on Stat #97 Employee Sa)sfac)on:

Employees at companies that promote digital engagement (vs other companies):

27% happier 20% more likely to stay 40% more likely to believe in their company.

Source: Chief Marketer

Transforma)on Stat #98 Many Stakeholders:

More than 2/3rds of technology spending is now coming from

budgets outside IT. Source: PwC

Transforma)on Stat #99 Triumphing Company Culture:

The greatest antagonist to company change via digital is cultural –

97% believe addressing this aspect is important.

Source: Al+meter













11. Innova+on Transforma+on

Transforma)on Stat #100 Digital Innova)on Leadership Void :

Just 7% of execu0ves say their IT department is playing a leadership role in iden0fying opportuni0es for digital innova0on, but 35% believe it

should. Source: SAP

Transforma)on Stat #101 Innova)on Bandwidth:

43% of execu0ves believe the #1 innova0on hurdle is too much 0me

spent firefigh0ng. Source: CMO Innova+on Trends

Transforma)on Stat #102 – Innova)on Direc)on

66% of companies don’t have well-‐iden+fied innova+on

strategies. Source: Accenture

Transforma)on Stat #103 – Experimenta)on Culture:

“Fail Fast/Fail Quickly” Company Risk Appe+te:

56% in digitally mature companies 10% in digitally lagging companies

Source: Deloi\e

Transforma)on Stat #104 – Innova)on Bodom Line:

Five year growth rate of companies:

84% for innova0ve companies 28% for mainstream companies

Source: Bain

Transforma)on Stat #105 – Digital Driver of Innova)on:

Digital efforts access valuable info and insights for innova+on: 85% in digitally mature companies 35% in digitally lagging companies.

Source: Deloi\e

Transforma)on Stat #106 – Innova)on Resourcing:

86% of execu+ves recognize the need to change their innova+on

capacity. Source: PwC

Transforma)on Stat #107 – Innova)on Partnerships:

89% of businesses are planning to improve partnerships with

external startups and accelerators in order to drive innova+on.

Source: Forrester

Transforma)on Stat #108 – Innova)on Accelera)on:

67% believe partnering or buying a digitally-‐advanced organiza+on is a viable strategy for affec+ng

digital innova+on. Source: Forrester

Transforma)on Stat #109 – Innova)on Accelera)on:

80 percent of digitally transforming organiza+ons will incorporate collec+ve genius and crowdsourcing into their projects

as a regular prac+ce. Source: IDC













12. Futureproofing & Foresight

Transforma)on Stat #110 – Digital Disrup)on:

Digital disrup+on will replace 4 out of 10 incumbent companies

over the next 5 years. Source: Cisco Digital Vortex


Average lifespan of companies will be 9 in 2020, used to be 61

back in 1960. Source: precog Digital


Half of people do not expect to be using cash five years from now.

Source: Starcom

Transforma)on Stat #113 – Internet Explosion:

Global Internet Users: 1.6B users in 2008, 3.5B users in 2016.


Transforma)on Stat #114 – Mobile Explosion:

Mobile Subscrip+ons: 2008: 4.0B mobile subscrip+ons, 2016: 8.0B mobile subscrip+ons.


Transforma)on Stat #115 – Social Media Explosion:

Facebook Users: 2008: 0.1B members, 2016: 1.8B members.


Transforma)on Stat #116 –eCommerce Explosion:

B2C eCommerce: 2008: $0.4T 2016: $1.9T.


Transforma)on Stat #117 –Life at Internet Speeds:

Global Fixed Broadband/Mobile Internet Speeds:

2010: 7.0/1.5 MB/s 2020: 50.0/12.5 MB/s.


Transforma)on Stat #119 –Predic)ve Forecas)ng:

What func+ons and processes will be impacted most by advanced

analy+cs – 91% agree Forecas+ng and Planning.

Source: Consumer Goods Technology Report

We are a business transforma+on company focused on advancing our clients’ digital maturity. We provide clarity in digital strategy and op+ons, fill digital skills’ talent & customer experience gaps, and guide the organiza+onal change required to iden+fy and survive disrup+on. 50 years’ combined experience transforming global brands, plus our global advisors and partner network. Offices in Toronto and Sea\le.

ABOUT US Precog Digital

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SEAN MOFFITT Partner (Toronto) +1 416 458 2818

[email protected]

Wikibrands Managing Director

Former CMO, Diageo/VP Marke+ng -‐ Molson Coors

Former Procter & Gamble , Laba\, Universal McCann

Author of “Wikibrands” (McGraw-‐Hill)

Execu+ve Counsel – MaRSDD, CSW2, Be\er Ventures

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Precog Digital Principals We’ve Been There -‐ Our Experience.

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[email protected]

Former Chief Social Officer, IPG Mediabrands EMEA

Former AKQA, Possible, Edelman Digital, Y&R, DDB

80 major brands over 26 years

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