Companies can gain $357 billion in annual profits globally through people-focused transformation efforts and a commitment to ESG (environment, social, and government) initiatives, according to Infosys Digital Radar 2022.
Infosys Digital Radar 2022 assessed the digital transformation efforts of companies on a Digital Maturity Index and found that companies have progressively adopted technology year-over-year. The report surveyed nearly 2,700 digital transformation leaders from the U.S., Europe, Asia and Australia
More respondents reported implementing artificial intelligence (AI) and blockchain (73% and 71%, respectively) than mature and foundational cloud and legacy modernization (69% and 68%, respectively), suggesting that once emerging technologies (like AI) now show real promise, and enterprises are moving quickly and aggressively to implement them than in earlier times.
The study data suggests that mere adoption is not enough, what matters most is the effectiveness with which companies use their technology. Previous surveys found adopting Agile, cloud, and other technologies led to better operational and financial benefits, but that was no longer the case in 2021, as more companies approached digital maturity. Further, the survey found companies are more effective when they use digital to positively impact stakeholders, including through ESG and initiatives like career paths for women and minorities, data privacy, and AI ethics.
“Enterprises are at an inflection point post-pandemic. Covid-19’s widespread disruption and the subsequent digital acceleration have permanently altered how the world views technology. While some enterprises have seen this as an opportunity to move beyond the questions of whether and how far to digitize, some still haven’t realized the need to use these digital tools to engage their stakeholders more purposefully and respond to calls to serve people, planet, and community,” said Salil Parekh, CEO, Infosys.
“Focused initiatives in sustainability almost unfailingly reflect in a marked increase in revenue growth, accelerated transformation effectiveness, boosts in profits and shareholder value. ESG measures will increasingly grow to influence and eventually change the metrics that measure transformation success, especially when consistently demonstrated through engagements with stakeholders across the board,” said R “Ray” Wang, principal analyst and founder, Constellation Research.