New research finds that only 25% of businesses feel their digital transformation efforts are truly successful
Businesses who have completed a digital transformation expect double-digit revenue gains
The role of the CEO is significantly underestimated by unsuccessful businesses
Research finds that effective communication and increased stakeholder engagement are critical to achieving success
29 March 2023 — FTI Consulting (NYSE: FCN) today launches new a report The Power of Communications: Unlocking Growth Through Digital Transformation that reveals double-digit revenue gains are reported by companies mastering the process. Far from being a question of costly technology and the latest digital tools, the survey of 600 decision makers at European businesses, found that stakeholder engagement and reputation analytics are now the key factors that determine success or failure.
According to the research, only one in four respondents said their digital transformation was truly successful, while those who completed the process successfully expected revenues to grow by 10% more than their competitors over the next year.
Many businesses have been slow to embrace digital transformation with only 3 in 10 of those surveyed reaching completion. Yet for those that stayed the course, businesses experienced significant rewards, including double the turnover on a similar headcount in the last 12 months.
The power of effective communications and increased stakeholder engagement emerged as critical to achieving success. Those businesses who have completed a digital transformation and prioritise stakeholder communication as ‘very important’ had a 67% higher turnover for the last year than those who didn’t prioritise stakeholder communication. Of those whose business had completed a successful transformation, 83% of respondents recommended that companies measure their reputation with stakeholders on an ongoing basis.
The role of the CEO was also significantly underestimated by unsuccessful companies, with a lack of effective communications to key stakeholders inhibiting businesses from driving the best outcomes. Nearly 8 in 10 of leaders surveyed agreed that engaging stakeholders during a digital transformation enabled them to better understand unanticipated issues and produce solutions.
“There has never been a more important time for companies to get digital transformation right – and yet so many of the companies we surveyed felt they were failing in their efforts,” said Jon Priestley, a Managing Director in FTI Consulting’s Digital & Insights team within the Strategic Communications segment. “The role of reputation measurement and stakeholder engagement has clearly emerged as the difference between those rising to the challenge of an ever-more digitised world and those businesses that are falling by the wayside.
“We identified the role of the CEO as critical to a successful outcome. Leaders must set the vision and case for change, acting as the rallying cry around which the organisation looks to build a clear, integrated road map. To build this trust and confidence CEOs need to get the full leadership team talking from the same page, with the same set of priorities and having belief that it will deliver the transformative value it promises.
“Our research shows that the future belongs to those businesses who genuinely understand their stakeholders and who can use data to measure and modify their communications strategies throughout the lifecycle of Digital Transformation. Only then will they be fully successful and reap the economic rewards of digitising well.”
The research was conducted online from 20th to 27th January 2023 by FTI Consulting’s Strategy Consulting and Research team and surveyed n=600 C-suite and senior manager level decision makers at large sized companies across the United Kingdom, France and Germany. The respondents in the sample represent businesses that collectively employ more than seven million workers, and have a combined revenue of more than £/€1 trillion globally. Due to conventional rounding, some results may not add up to 100%.
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Source: FTI Consulting, Inc.