The Accelerating Pace of Digital Transformation
Digital technologies have been around for decades; engineers in the U.S. began developing
them in the second half of the 20th century. But businesses have a reputation for being
notoriously slow to change and adapt. And over the last 50+ years, the majority of digital
transformation initiatives were not a top priority for most companies. Or consumers for that
matter.
Then came 2019. And the emergence of COVID-19. And the world turned upside down. People
dying. Rampant unemployment. Companies closing. Enormous economic turmoil. Massive
supply chain disruptions. Monumental public health challenges.
The size and scope of the pandemic was daunting. And recovery was slow and tedious. To do
business in the "new normal", executives knew the prevalent business models had to change.
Marc Benioff, founder, chair, and CEO of Salesforce, put it succinctly during the company's
first-quarter fiscal 2021 call with financial analysts:
"I've been on more sales calls with more CEOs in the last two months
than at any time in my career, and there's universal agreement among
them: Digital transformation, while this isn't a one app [solution], it's a
must-have. Organizations and governments around the world have a
digital transformation imperative like never before, and many of them
are accelerating their plans for a digital-first work-from-anywhere
environment."
This growth in the global digital transformation market is being fueled by several factors,
including the continual rise in internet users & smart devices, increasing technological
advancements, and government initiatives towards digitization. In addition, more and more
companies are looking for better and more effective ways to increase sales efficiency,
streamline business process, and take advantage of market trends and dynamics.
According to a study by Research and Markets, the digital
transformation market is expected to grow at a Compound Annual
Growth Rate (CAGR) of 22.7% and reach $3,294 billion by 2025.
DEMAND, DELIVERY, DISRUPTION | 2
