Post on 19-Jan-2015
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THE ROAD TO REIMAGINATION
TCS Global Trend Study
2014
July 2014
The State and High Stakes of Digital Initiatives
tcs.com/stateofdigital
The study is based primarily on an extensive online survey of 820 executives in 13 global industries across 10 countries in four regions of North America, Europe, Latin America and Asia-Pacific and, in-depth interviews with nine executives who are leading (or who led) their companies’ digital initiatives.
Mean revenue820Companies
13Industries
4Regions
$26 bn9 Key Findings
TCS Global Trend Study
2014
tcs.com/stateofdigital
of companies for whom digital initiatives are important or most important to business
average per-company spend on digital initiatives
70% $113mnDIGITAL INITIATIVES CRUCIAL TO BUSINESS SUCCESS
13
$
TCS Global Trend Study
2014
tcs.com/stateofdigital
DIGITAL TECHNOLOGIES KEY
TO CONNECTING WITH CUSTOMERS
2Customer Engagement:
95%
50%
34%
connect through mobile apps for customers’ devices, or via social media (for continuous monitoring)
connect via digital products/services customers buy and download
of companies are using digital platforms to connect with customers
4
TCS Global Trend Study
2014
tcs.com/stateofdigital
2014
2020THREE INDUSTRIES MAKING THE BIGGEST DIGITAL INVESTMENTS
3Media, Telecom, and High-Tech most likely to
More than 1/3rd of all companies in
reinvent business models
roll out digital offerings
boost digital revenues as % of total revenues
Banking
Retail Insurance
Utilities
$
5
TCS Global Trend Study
2014
to Digitally Reimagine business models
tcs.com/stateofdigital
Companies investing heavily in the Digital Five Forces,
with Big Data and analytics taking the lion’s share
28%20%20%
19%
13%
Spend allocation across Digital Five Forces:
Big Data and analytics
Mobile computing and miniature digital devices
Social media and online communities
Cloud computing services
Artificial intelligence, machine learning, and robotics
BIG DATACENTRAL TO
DIGITALINITIATIVES
46
TCS Global Trend Study
2014
tcs.com/stateofdigital
MAJORITY HAVE ALREADY LAUNCHED DIGITAL OFFERINGS
5of companies have launched a digital product or service
average revenue they expect to generate as a result
59% $234 mn
7
TCS Global Trend Study
2014
tcs.com/stateofdigital
70% 7%
Leaders spend 3X Followers Revenue growth 10X Followers
average spend
$290 $93Leaders Followers FollowersLeaders
digital revenue growth
GOING DIGITAL IS EXPENSIVE
BUT REWARDING
68
TCS Global Trend Study
2014
mn mn
tcs.com/stateofdigital
DIGITAL LEADERS MORE LIKELY TO HAVE GAINED CRITICAL BUSINESS CAPABILITIES
7Digital Followers
seek to improve accuracy in demand forecasting, and
identify product improvements, new offerings
seek to market and sell their offerings
+
Digital Leaders
$
$
9
TCS Global Trend Study
2014
tcs.com/stateofdigital
of Digital Leaders have one unified view of how they connect with their customers
of Digital Followers let individual business functions decide their digital strategy
57% 50% DIGITAL LEADERS HAVE
A SINGULAR DIGITAL STRATEGY
810
TCS Global Trend Study
2014
tcs.com/stateofdigital
DIGITAL REIMAGINATION MUST BEGIN NOW
9of the companies are Digitally Reimagining their businesses right now
intend to do so before 2020
8%
32%ONLY
BUT
11
TCS Global Trend Study
2014
tcs.com/stateofdigital
12Copyright © 2014 Tata Consultancy Services Limited
The Road to Reimagination The State and High Stakes of Digital Initiatives
#TCSDigital #DigitalReimagination
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TCS Global Trend Study
2014