Approximately 52% of companies engaged in “business transformation” are on a recovery trend–Dell Technologies

On March 24, Dell Technologies announced the results of the “IT Investment Trend Survey 2021” conducted by the company. At the same time, he introduced a new measure “DX Consulting Ecosystem” for mid-sized companies. The survey was conducted from February 1st to March 5th, targeting approximately 1,500 mid-sized customers. The definition of a mid-sized company is that it has 100 or more employees and less than 1000 employees. Takayuki Takiya, Senior Executive Officer and General Manager of Wide Area Sales Headquarters, explained the three movements seen in this survey. 51.7% of companies engaged in “business transformation” have a tendency to recover their business performance When comparing the trends of changes in corporate performance from December 2020 to February 2021, the tendency of companies engaged in business transformation to recover their business performance is 51.7%. I went up. On the other hand, there is a difference of 17.1% and 34.6% in the companies that have not implemented it, and it is clear that aggressive efforts will be a strong support for the recovery of business performance. 21.7% invested in “visualization of information and data necessary for management decisions” As IT investment in 2021, 21.7% of companies considered / planned visualization of information and data necessary for management decisions. Dell Technologies said, “From the state where analog and digital mixed data is dispersed, standardization / aggregation with digital data is the starting line for analysis of the current situation for the implementation of digital transformation (DX)”. We speculate that this is the result of many companies reaffirming the importance of digitalization. 75.4% are demanding cost reductions We found that 75.4% of companies are demanding cost reductions from management. Cost reduction of 12.3% is required on average, and as a concrete method, “reduction of conventional business hours” was ranked high at 60.3% and “reduction of business volume” was ranked high at 49.2%. However, the expected cost reduction effect of the measures is only 8.2% on average, and further efforts need to be promoted. The correlation between efforts to transform mid-sized companies and the trend of recovery in business performance was also introduced (Fig. 1). Initiatives include business transformation, sales transformation, and work style transformation. Business transformation is “new initiatives across the entire company,” and sales transformation and work style transformation are “for each department that is under pressure.” It is classified as “initiative”. Figure 1 (Source: Dell Technologies)

* Click to see an enlarged image Business transformation includes visualization of business data, establishment of a new department for DX, and automation of business using AI (artificial intelligence). Business transformation includes online business negotiations and seminars, subscription to sales forms, EC (electronic commerce), and work style transformation includes telework, web conferencing, rotation work, and staggered work. The ratio of implementation is 3.5% for business transformation, 5.4% for sales transformation, and 60.5% for work style reform. The ratio of business transformation implemented was only 3.5%, but as mentioned above, the performance recovery tendency of the companies that implemented it was 51.7%, which was a great result compared to the companies that did not implement it. On the other hand, in the business transformation, the number of implementing companies was 8.3%, and the number of non-implemented companies was 16.7%. Regarding this factor, Mr. Takiya said, “Sales transformation is a part where there are many trials and errors. We are also doing this because we are a sales department, but I think that it will take time to produce results. Now, returns on investment I think it’s a period until we can get it. ” As a barrier to digitization that emerged from the survey, he said, “I can’t determine the business transformation area to start”, “I can’t start business transformation because the information necessary for management decisions is not digitized,” and “Low cost.” I can’t start considering business transformation. ” In response to this result, the company will build a DX consulting ecosystem. Specifically, there are free online DX consultation meetings, support for business plans, and flat-rate DX consulting services. The ecosystem is aiming to expand at any time, but first of all, we will collaborate with Nara Institute of Science and Technology (Nara Institute of Science and Technology), dTosh, a venture company from Nara Institute of Science and Technology, DN Technology & Innovation, a consulting firm specializing in DX, and registered management consultants. To do. “Consulting services have been a high hurdle for some mid-sized companies in various aspects such as cost. The DX consulting ecosystem overcomes these barriers by specializing in DX for mid-sized companies and providing services at reasonable prices. I want to break through, “said Mr. Takiya.