CHEDTEB

1. Benefits and Obstacles

2. Internal Processes
Benefits
- Improved operational/
resource efficiency (2,3,11)
- Improved field service
response time (3)
- Speed up sales process (3)
- End-to-end traceability (4)
- Lack of internal knowledge
and skills (1, 8)
- Lack of management
commitment (1,4)
- Careful of new technology
(3)
- Partner ecosystems (5)
Obstacles

3. Internal Processes
An obstacle which hinders internal processes in companies to become transformed
can be the lack of internal knowledge and skills (1,8). In the Digital Transformation
Readiness Survey Summary (1) it is stated that 55% of the participants stated that
their biggest challenge are the insufficient internal skills. This can have different
reasons. Many of the employees in the company are no digital natives. This can be a
mental barrier, which stops them from entering and be interested in the digital
world. This Table shows that the younger generation is more affine to the internet
use than the whole population. This can possibly explain the mental barrier the
older people have towards the internet, but probably also to other new
technological innovations.
Benefits Obstacles
- Improved operational/
resource efficiency (2,11)
- Improved field service
response time (3)
- Speed up sales process (3)
- End-to-end traceability (4)
Another important point is the lack of management commitment as stated in the State
of Industry Benchmark (4). The leader also does not really act effectively as role models
for facilitating the digital transformation (1). Furthermore, the companies are reluctant
and careful in adapting new technologies (3). Additionally, some of the companies might
had negative experience with new technologies, which might explain why many
enterprises are careful when it comes to trying to use and implement new technologies
(3).

4. Internal Processes
In the Digital Transformation Survey (2) 40% of
the participants stated that they improved
their operational efficiency when adopting a
digital model in their company. Through the
digitalization of processes, the companies can
leverage their data about customer service,
their operations and their manufacturing.
Through this they can also improve their field
service response time as 79% of respondents
say and it is speeding up their sales process in
78% of the companies (3). Additionally, the
rise of customer expectations demands
innovation and the end-to-end traceability is
for 53% of respondents an important benefit
(4).
Benefits Obstacles
- Lack of internal knowledge
and skills (1, 8)
- Lack of management
commitment (1,4)
- Careful of new technology
(3)
- Partner ecosystems (5)

5. Data Management
- Provide ease of information
access (2,3)
- Collection and use of data
(2,4,11)
- Improved decision-making
(11)
- Identity management (5)
- Management of regulatory
compliance (3)
- Cloud- service (3,10,11)
- Data security (1,2,3,5,9)
- lack of interoperability of
standards (9)
- Service-reliability of cloud-
computing (3)
Benefits Obstacles

6. Data Management
The most mentioned obstacle of digital
transformation was the data security
(1,2,3,5,9). It was not necessarily the highest
ranked obstacle, for example in the Digital
Transformation Survey (2) it is ranked second
with 37% of the participants picking it when
they had to select their top 3 barriers. In The
Next Steps in Digital Transformation (3) which
deals with digital transformation in general but
also more specifically with cloud computing,
the data security is ranked on the first place
with 43%, but the service reliability of cloud
computing is on second place with 27%. As the
advantage of cloud computing is the availability
of information, the service reliability is very
important. Another potential obstacle identified
by the Key Issues for Digital Transformation in
the G20 (9) is the lack of interoperability of the
different standards.
ObstaclesBenefits
- Provide ease of information
access (2,3)
- Collection and use of data
(2,4,11)
- Improved decision-making
(11)
- Identity management (5)
- Management of regulatory
compliance (3)
- Cloud- service (3,10,11)

7. Data Management
The highest answered benefit achieved by key technology
investments was to provide ease of information access, which
86% of the participants selected. Organizations can use the
leverage effects when digitalize and collect more data about their
products, processes and systems. A further advantage is that they
can use the data to get additional insights in their company, their
products and their processes. (2) Through all the available data an
improved decision- making is expected by 73% of the participants
in Digitalisation Unlocking the potential (11).
ObstaclesBenefits
- Data security (1,2,3,5,9)
- lack of interoperability of
standards (9)
- Service-reliability of cloud-
computing (3)
Source 9 page 24
Another benefit of using digital technologies is the cloud service itself through
which a more efficient use of distributed resources is possible. (11) In the
figure above, the differences between the small, medium and large companies
become clear as does the differences between the different countries(9).
Additionally, technology can help to manage regulatory compliance as 82%
stated in The next Steps in Digital Transformation. (3)

8. Customer
- Engaging customers (5)
- Provide perception of
advanced company (3)
- Improvement of customer
loyalty (3)
- Improvement of customer
service (3)
- Meeting changing customer
expectations (2)
- Demand for better mobile
experience (5)
- Lack of strategy (1,4)
- Customers are not “digital”
(10)
Benefits Obstacles

9. Customer
An important obstacle and additionally a big problem
during the process of digital transformation is the lack
of a clear vision for the digital journey. Formulating a
strategy is a typical management task, but without a
clear vision the whole process is unstructured and not
focused. (1) Furthermore, when in the Digital
Transformation Challenges and Opportunities (10) the
participants of the survey were asked what hinders
them from taking advantage of the digitalization 26%
answered that the customers are not “digital” and no
digital natives. This can be a difficult problem for a
company if they use new, technology-based business
models. The fear or high respect of new technology can
be a mental barrier which blocks them from trying to
use and take advantage of new technologies and
products.
ObstaclesBenefits
- Engaging customers (5)
- Provide perception of
advanced company (3)
- Improvement of customer
loyalty (3)
- Improvement of customer
service (3)
- Meeting changing customer
expectations (2)
- Demand for better mobile
experience (5)

10. Customer
One of the main reasons to start the digital transformation of
the company is to acquire and engage customers. In The State
of Digital Transformation Report (5) 86% of the respondents
agreed that their enterprise should try to do as much as
possible to meet customers where they are. Additionally, 83%
of the participants of the survey agreed on the demand for
better mobile experiences by customers. Delivering personal,
convenient and trusted mobile experiences is central to this
effort. Through the investment in technology, the company
provides the perception of an advanced company as answered
by 86% in The Next Steps in Digital Transformation (3).
Furthermore, through the collected data or maybe the use of a
CRM (customer relationship management) system, 78% of the
participating companies achieved an improved customer
service. This also led to 72% of them stating that they also
improved their customer loyalty. (3) Those before mentioned
points go hand in hand with the meeting of changing customer
expectations, which 35% of the companies in the Digital
Transformation Survey (2) stated as top benefit of adopting a
digital model.
ObstaclesBenefits
- Lack of strategy (1,4)
- Customers are not “digital”
(10)

11. Internal Management
- Improved/ enhanced worker
profitability (3)
- Offer employees more
flexibility (3)
- Cost reduction (2)
- Gain competitive advantage
(2)
- New business models (2)
- Costs too high (1,2,10)
- Not seeing ways to
digitalize (7,11)
- Firms tend to
overestimate potential
challenges in new
technologies (3)
- Displacement of workers
from certain fields (9)
Benefits Obstacles

12. Internal Management
The biggest obstacle for the internal management is that
the implementation costs can be very high and that their
company does not have a budget, which is high enough.
This problem was mentioned in different surveys as
relevant obstacle and barrier. (1,2,10) Another problem is
that many companies overestimate potential problems
and challenges in the new technologies, which leads to
being to careful or not changing anything at all (3).
Furthermore, they do not have a clear business model in
mind or do not see opportunities to digitalize. This is
stopping the company directly from starting to digitalize
their company and turning towards the digital
transformation of it. (7,11) Another obstacle is the
displacement of workers from certain fields, but the report
for the G20 found out, that this is in general compensated
(9). Therefore, the unemployment is not increasing, but
many people fear for their job, which makes them
reluctant to follow the path of digital transformation.
ObstaclesBenefits
- Improved/ enhanced worker
profitability (3)
- Offer employees more
flexibility (3)
- Cost reduction (2)
- Gain competitive advantage
(2)
- New business models (2)

13. Internal Management
A huge benefit is improved and enhanced worker
profitability, which 78% of the companies in the The
Next Steps in Digital Transformation (3) survey
achieved through key technology investments. An
additional benefit for the employees but also for
the employers was their opportunity to offer the
employees more flexibility when working. 79% of
the employers were able to increase the flexibility
(3). Adapting new technologies can also lead to a
reduction of overall costs. The reason for this can
differ, but through improved processes and a higher
efficiency, which many companies stated to have as
benefit from the digital transformation, this could
be explained. (2) Additionally, 47% of the
companies in the Digital Transformation Survey (2)
stated that they even gained a competitive
advantage and 37% stated that they created a new
business model. Those two points will likely be
dependent of each other.
ObstaclesBenefits
- Costs too high (1,2,10)
- Not seeing ways to
digitalize (7,11)
- Firms tend to
overestimate potential
challenges in new
technologies (3)
- Displacement of workers
from certain fields (9)

14. Nr. Author Title Number Participants Origin of Participants Year Additional
Information
Link
1 CCL and
Corporate
Leaders
Digital Transformation
Readiness Survey
Summary
100 VPs and directors in HR,
L&D, Leadership
Development and Talent
Management
11/2017 –
01/2018
https://www.ccl.org/wp-content/uploads/2018/04/Digital-Transformation-Survey-Report.pdf
2 Corporate
Leaders
Digital Transformation
Survey: Creating
Products and Services
in a Digital World
128 executives in product
development, engineering,
production, corporate
management, IT and
marketing
Europe, North
America, Middle East
and Asia
2018 Sponsored by ptc https://www.ptc.com/en/products/plm/capabilities/digital-transformation-report
3 IDC Info Brief The Next Steps in
Digital Transformation
3904 SME decision makers,
companies with 10 – 99
employees
Worldwide 2016 Sponsored by SAP https://news.sap.com/wp-content/blogs.dir/1/files/SAP_IDC_infobrief_SMB_DX_102016.pdf
4 JDA & KPMG Digital Supply Chain in
Retail &
Manufacturing: A State
of the Industry
Benchmark
Conducted by Incisiv https://jda.com/knowledge-center/collateral/kpmg-jda-digital-supply-chain-in-retail-mfg-executive-summary
5 Ping Identity The State of Digital
Transformation Report
200 IT decision makers US (companies >500
employees); UK,
France and Germany
(companies >200
employees)
26/08/2016 –
08/09/2016
Online conducted by
Regina Corso
Consulting
https://www.pingidentity.com/en/lp/digital-transformation-survey.html
6 Riverbed
Technology
Riverbed Retail Digital
Transformation Survey
Retail IT decision makers US, Australia,
Germany
01/2018 https://www.riverbed.com/document/fpo/Solutions/riverbed-retail-digital-transformation-survey-2018.pdf
7 PWC Global Digital IQ
Survey: 10th
anniversary edition
2216 participants evenly
divided between IT and
business leaders
From 53 countries 09/2016 –
11/2016
Conducted by Oxford
Economics
https://www.oxfordeconomics.com/my-oxford/projects/362757
8 Fujitsu Future
Insights
Real Digital: Success
Factors for Digital
Transformation
1535 CxOs and decision
makers from large and mid-
sized companies
From 16 countries 2018 http://www.fujitsu.com/global/vision/insights/survey2/
9 OECD Directorate
for Science,
Technology
and Innovation
Key Issues for Digital
Transformation in the
G20
2017 Document based text https://www.oecd.org/g20/key-issues-for-digital-transformation-in-the-g20.pdf
10 EVRY Survey Digital Transformation
Challenges and
Opportunities
200 interviews of managers
in administration,
accounting/finance,
marketing, IT and IT
specialists
Norway and Sweden
(evenly distributed)
12/2015 All participants from
companies with > 100
employees with 59% >
1000 employees
https://www.evry.com/contentassets/3173e7b2282245588675d02bc9d98181/survey---digital-transformation-
challenges-and-opportunities_final1.pdf
11 Siemens Digitalisation Survey
Ireland
135 companies of all sizes
and across all industrial
sectors
Ireland 2017 Participants were
technological and
strategy-oriented
decision makers
https://www.siemens.com/ie/en/home/company/topic-areas/digitalization/digitalization-trends-and-solutions.html

15. Literature
Kuan, Kevin K.Y.; Chau, Patrick Y.K. (2001): A perception-based model
for EDI adoption in small businesses using a technology–organization–
environment framework. In Information & Management 38 (8),
pp. 507–521. DOI: 10.1016/S0378-7206(01)00073-8.
van Dijk, Jan; Hacker, Kenneth (2003): The Digital Divide as a Complex
and Dynamic Phenomenon. In The Information Society 19 (4), pp. 315–
326. DOI: 10.1080/01972240309487.