Increasing competitive threats are driving digital transformation

Increasing competitive threats are driving digital transformation
New study reveals 41% of B2B organisations consider legacy technology the greatest threat 

Elly Yates-Roberts |

A survey of 300 business-to-business (B2B) organisations in Europe, US and Australia and New Zealand has found that competitive pressure is a key driver of digital transformation projects globally.

With over a third of companies believing that failure to complete digital transformation projects will result in competitors taking advantage, the survey suggests there are market concerns when it comes to keeping internal processes and infrastructure up to date.

The research, carried out by Sapio for Sana Commerce, found that competitive pressures are a real threat. 38% of respondents believed the threat is from existing companies, while 35% see pressure from new online market entrants and 34% from cheaper overseas suppliers.

Challenges that threaten the success of digital transformation projects include legacy technology, with 41% naming this as an issue. More than a third believe internal resistance to change that could hamper success.

“It’s do or die when it comes to digital transformation projects for B2B organisations,” said Michiel Schipperus, CEO of Sana Commerce. “We know that companies are feeling the pressure from increasingly online businesses competing in new territories. The research found that 72% of organisations believe they will sell 100% of their products online in the future, making markets wide open to further online competition.”

The B2B market is approaching competitive pressures by using technology that deals directly with end users.73% of respondents stated they will sell direct in the future. This may explain the rise of B2B marketplaces, the use of which is expected to grow by a third over the next two years.

Among the other findings was the news that more than two thirds of B2Bs are set to use the internet of things and machine to machine to enable predictive ordering or automation. 68% will see sales completed using mobiles, 67% will use virtual reality to personalise the buying experience, while 61% will use driverless cars and drones for delivery.

To read the report in full, click here.

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