Central to the modern business structure, digital transformation in today’s professional landscape is top priority. Yet as numerous organisations graduate to the ranks of digital literacy, making sense of digital can be a challenge. For German multinational software corporation, SAP, the annual ‘Skills for Digital Transformation’ report delves into the deeply nuanced aspects central to the digital climate. Yet despite its business precedence, many companies are not taking tangible steps towards achieving digital transformation.

The study, first published in 2015, draws upon several touchpoints that are crucial in understanding the cross-functional components of digital assimilation. The research was compiled through the inclusion of 116 executives from 18 countries, with 30% of respondents in C-level positions, and a further 22% in middle management roles.

The research pointed out that 56% of participants commented that digital transformation was ‘highly important’ for business strategy, with 90% agreeing to it being ‘important,’ a figure up 10% from the inaugural findings. Conversely, 50% of respondents had established a vision of the digital future of their company, yet only 26% formulated clearly defined execution plans for implementing such transformation.

Yet the question of what constitutes digital transformation is of great importance. The study revealed that the top four components crucial to transformation, according to respondents, remain firstly that of digital security. Mobile technologies rank second, with business change management and big data analytics tied at 84%. Interestingly, social media ranked at the lower end of the table, yet when asked what aspects of the digital spectrum most organisations found themselves succeeding in, social media scored highest with 57%.

With the study indicating partial skills gaps, ‘mega trends’ such as artificial intelligence, big data analytics and internet of things remain outliers within the current business action on digital transformation. However, 64% of respondents disagreed with the statement designating adequately skilled personnel existed within the workforce – pointing to similar skills gap findings in SAP’s 2015 study. Concluding the research, SAP found that many organisations are currently in a ‘orientation phase,’ hinting at a reluctant attitude towards digital transformation.

However, the findings remain firm with regards to the ongoing developments of the business world. SAP’s annual presentation of its findings strongly indicating a slow and progressive push towards ubiquitous digital immersion.

For a closer look at SAP’s research, click here.