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Digital Transformation

Digital Transformation of Traditional Businesses

The transition to increasing use of digital services and data processing poses not only challenges. There are also tremendous opportunity for traditional businesses. A representative study, conducted by German trade association Bitkom, yielded a number of interesting results.

Four out of ten companies in Germany have already responded to the digital shift. They already have launched new products or services. 57% have started to transition their portfolios into the digital age. Yet only 12% of businesses were forced to take any traditional services or products off the market.

Businesses who are still without a digital strategy (28% according to the Bitkom study) will have to accept and adapt to the digital transition sooner rather than later: half of all interviewed companies stated that competitors who have already fully embraced the digital transformation are starting to gain significant market shares. More than half of the interviewees stated they see themselves as latecomers to the digital transition. 7% even see their companies as having been permanently left behind. But the enormous potential is clear: 72% of all interviewed companies by Bitkom stated that ongoing digitization will still pose great challenges to their business.

IT companies have their challenges laid out for them. Bitkom president Thorsten Dirks says: “The ITK sector is no longer just a distributor for hardware, software and telecommunication services, but a strategic partner in the digital transformation of their customers’ business models”. Companies need and expect professional consulting and assistance in their transformation.

As big data and the internet of things is set out to become the basis for many business models and processes, an equally powerful technology is required to provide storage, reporting and analysis of ever growing amounts of data. SAP HANA and our 360° solution makes the digital transformation not only possible, but easy.

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