A survey by Amazon Web Services (AWS) shows that companies are accelerating their digital transformation plans and “reinventing”themselves after a year of unprecedented change. […]
Coleman Parkes surveyed 10,000 business and IT decision – makers from Germany, France, the UK, Israel and Spain on behalf of AWS. The goal was to find out how they managed to “reinvent” their business during the COVID-19 pandemic-without having a concrete roadmap for future developments. It was also about gaining insights into how companies deal with this experience and what conclusions they draw in order to continue to grow in the post-pandemic period.
Many companies have “reinvented”themselves in the pandemic
The pandemic exposed the limits of conventional business planning-carefully orchestrated one-year roadmaps created under the illusion of control and predicting the future based on the past proved unfit. For many companies, the need to transform quickly posed a challenge: 46 percent of respondents reported that their company had difficulty adapting to the new situation.
In addition, 46 percent of respondents said that they are constantly under pressure from new competitors who are depriving them of market share. Original roadmaps became obsolete – instead, it was necessary to act quickly and flexibly, innovatively and creatively, and all this without increasing expenses. Despite this difficult and challenging time, AWS has watched companies ” reinvent themselves.” These companies have integrated innovation into their strategy and are using technologies such as the cloud to move quickly, experiment with new business models and accelerate their implementation, as well as regain market share. They are more agile, secure, resilient and customer-centric in their approach and have more confidence in their ability to respond to and manage changing circumstances.
Two-thirds (65 percent) said their organizations emerged from the pandemic more agile, adaptable and confident about the future. These executives said that the cloud has helped them reorient and innovate (65 percent), scale to meet changing demand (63 percent), and even save costs (60 percent). Nearly two-thirds (64 percent) said their companies deployed new cloud services during the pandemic. 40 Percent used the cloud for the first time.
It is particularly noteworthy that digital transformation initiatives were brought forward by almost two and a half years. The positive outlook for the coming year is also a sign of their confidence and optimism: 89 percent expect their company to grow next year. On average, they expect sales to increase by 21 percent.
Business leaders have learned several lessons for the future from the pandemic, including the importance of more agile work practices (58 percent), better collaboration (56 percent) and greater customer proximity (55 percent). Organizations are now sharpening their digital transformation initiatives to improve productivity and collaboration, optimize the customer experience, and educate employees.
“Reinventing yourself” remains essential
All those who experimented and learned during the COVID-19 pandemic benefit from an “innovation dividend”. These companies have greater resilience and are better positioned to continue to succeed after the pandemic. Of the decision-makers surveyed, 69 percent say that they have a clear strategy for how they want to seize opportunities in the future. 60 Percent agree that they will have to re-adjust their business model once current pandemic-related restrictions are lifted.
In the future, cloud services will become an even more important driving force for the business and its further development. According to the survey, almost two-thirds of companies (64 percent) intend to use technologies such as cloud computing after the pandemic, and 54 percent of decision-makers say their business depends on the cloud.
When it comes to sustainable agility and transformation, there are warning signs for some companies. Internal challenges still need to be addressed: half of business decision-makers say that their organizations still do not understand how to solve business problems with technical solutions. 47 Percent say that they perceive certain resistance from employees to change and 42 percent believe that important know-how is missing in the company.
Transformation will not remain a priority for all business decision-makers beyond the pandemic, as only 50 percent expect them to continue their transformation initiatives after the COVID-19 pandemic. These companies will come under pressure on several fronts.
The pandemic caused many established companies to” reinvent themselves ” and thus accelerate their transformation initiatives by years. At the same time, new entrants – disruptors – have adopted cloud technologies more quickly, seizing their opportunity to capture market share.
With increasingly demanding customers, those companies that are unable to adopt a more agile mindset or overcome internal challenges will fall through the grid of the market. Because this is dominated by companies that have “reinvented themselves” as well as new market participants who have the power of speed on their side.