Key Finding 3: The key drivers for digitalisation are cost-based
Industry 4.0 report - What are companies focusing on now?
Key Finding 3: The key drivers for digitalisation are cost-based
Especially among larger companies, the main drivers for digitalisation are now cost-based (62%), while in 2019 there was a clear balance between cost-based and revenue-based drivers. The experience gained gives them important insights into the return of their digitalisation actions.
A digital transformation can help companies to increase their profit as it will enable them to lower costs and/or increase revenues. Creating efficiency gains remains by far the major driver for digitalisation (43%). Next to that, we see a large increase in companies that hope to benefit from lower costs (19%). While in 2019 there was a clear balance between revenue-based and cost-based drivers as the key benefit of digitalisation (50-50%), it is clear that the focus has now shifted towards cost-based drivers (62%), meaning companies hope to realise efficiency gains and cost reductions.
Cost-based drivers (operational):
- Efficiency gains
- Lower costs
Revenue-based drivers (market):
- Additional revenue
- Gain in market share
There is also a significant difference between small and large companies. Smaller companies have a more balanced motivation between revenue- and cost-based drivers, whereas larger companies are mostly motivated by cost-based drivers when implementing a digital transformation plan, focusing on the operational aspects.
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