Implementing new digitalization initiatives can often be a complicated and time-consuming task, requiring a restructuring of operations and training of staff. We can understand how that may be frightening in times as these, where stability is key. In light of recent global events, many companies are uncertain about whether to invest or wait for economic recovery, but we’re here to tell you that it’s now or never, if you want your company to flourish through these tough times.
Source: EIB – Digitalisation in Europe 2021-2022: Evidence from the EIB Investment Survey
Looking at this chart derived from the European Investment Bank (EIB), we can see that EU companies have a much lower adoption rate when it comes to IoT projects, compared to the US. Part of this difference can be explained when considering company sizes. Larger companies are in general much more digital than smaller companies, mainly because they have the capital to invest, and departments to handle new initiatives.
There are far more small businesses in the EU compared to the US, dragging down the overall digitalization score. To mitigate this trend, companies in the EU will have to pick up the pace when it comes to investing in IoT digitalization initiatives, otherwise they risk losing the race against large foreign corporations.
The more digital your company is, the more flexible and resilient it becomes. Data from EIB show that digitally advanced companies handled the Covid-19 crisis far better, in comparison to non-digital companies. This improved resilience is due to several factors, the biggest being heightened productivity and better management practices as a result of digitalization.
Source: PwC – PwC Digital Factory Transformation Survey 2022
If we look at the slightly newer PwC digital factory transformation survey, companies are now starting to focus intensely on resilience and sustainability, as a direct result of the Covid-19 pandemic and conflict in Europe. Because we now have a global economy, markets are more volatile than ever, and it’s increasingly important not to fall behind on digital improvements. Companies will most likely lose market share if their competitiveness drops off. If they wish to keep, or even expand their market share, this is last call for digitalization.
By strengthening your company’s ability to adapt to the ever-changing business landscape, it once again becomes possible to survive in the current environment, maybe even to seek new growth opportunities. That’s why we think this is the perfect moment to invest in digitalization, if not for profits, then for survival.
If you would like to hear more about how we can help you in smoothly transitioning to a more digital, resilient, and sustainable business, please do not hesitate to contact us. We’re here to help.