Digital Transformation Decision Tree

Here is a helpful decision tree I put together for those who are still on the fence about Digital Transformation.

Although IDC predicts that global spending on the digital transformation (DX) of business practices, products, and organizations is forecast to reach $3.9 trillion in 2027 with a growth rate of 16.1% it still may not be for everyone.

Example business goals you can strive to achieve by NOT digitally transforming:

• Reduced productivity

• Losing competitive advantage

• Inability to attract or maintain top talent

• Missing the opportunity to learn about your company and customers

• Reduced cost savings

• Siloed operations with minimal interdepartmental collaboration

• Migrate to intuition-driven decisions instead of data-driven decisions

• Simplified one-size-fits-all marketing, sales, and customer service experience

• Increase lead time for product development

• Reduced quality and increased defect rate

A few statistics about digital transformation in manufacturing

• According to Mordor Intelligence, the Digital Transformation In manufacturing market size is estimated at $367.60 billion in 2024, and is expected to reach $876.10 billion by 2029, growing at a CAGR of 19.40% during the forecast period (2024-2029).

• According to Aptean, 10% of North American process and discrete manufacturers have completed digital transformation projects.

• According to Deloitte, The net need for new employees in manufacturing could be around 3.8 million between 2024 and 2033. And, around half of these open jobs (1.9 million) could remain unfilled if manufacturers are not able to address the skills gap and the applicant gap.

• According to the World Economic Forum, as of December 2023, there are 153 Global Lighthouse designations for factories that are leading the way for Industry 4.0.

• According to Rootstock, 70% of manufacturers say they've implemented some form of AI into their operations and that 82% have plans to increase their AI budgets in 2024.

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References:

• IDC Worldwide Digital Transformation Spending Forecast - 2023: https://www.idc.com/getdoc.jsp?containerId=prUS51352323

• Mordor Intelligence - Digital Transformation in Manufacturing Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029): https://www.mordorintelligence.com/industry-reports/digital-transformation-market-in-manufacturing

• Aptean - Manufacturing’s Digital Transformation in Numbers 2022: https://www.aptean.com/en-US/insights/blog/manufacturing-digital-transformation-numbers

• Deloitte - Taking charge: Manufacturers supporting growth with active workforce strategies 2024: https://www2.deloitte.com/us/en/insights/industry/manufacturing/supporting-us-manufacturing-growth-amid-workforce-challenges.html

• World Economic Forum - Global Lighthouse network: https://initiatives.weforum.org/global-lighthouse-network/lighthouses

• Rootstock - State of AI in Manufacturing Survey Results: https://www.rootstock.com/wp-content/uploads/2023/11/AI-in-MFG-Survey-Findings-10.2023.pdf