The Vodafone Enterprise Observatory

Transcription

1 The Vodafone Enterprise Observatory Corporate and Public Administrations

2 Contents Presentation of the study Introduction Methodology and technical details Conclusions General context The state of digitization Digitization needs Digitization accelerators and brakes

3 The Vodafone Enterprise Observatory The results of this report are the seed of the Vodafone Enterprise Observatory. After identifying the needs, concerns and challenges of Spanish enterprises and public institutions, the Observatory's editorial team has backed up its analysis with the best digitization experts and businesses rom dierent fields that already have success stories to tell. The Observatory is a living platform that is always updated; a place that encourages debate, training and inspiration through interviews, reports and infographics for any professionals, enterprises and public institutions that are devising their digital strategy. From day one, the Enterprise Observatory has teamed up with three great strategic partners that are experts in the digital reality of business. Firstly, Google, which provides an extensive range of digital solutions for enterprises, and secondly, two highly-prestigious institutional allies, namely MIT and Harvard, through the Spanish editions of their publications "MIT Technology Review" and "Harvard Business Review". The experience, contents and success stories, not to mention the analysis of these partners, all combine to enrich the contents of the Vodafone Observatory platform. ObservatorioVodafone.com 3

4 Introduction Large Enterprises are the driving force behind innovation in Spain's economy This report shows the results of an in-depth study that The Vodafone Enterprise Observatory has conducted to ascertain the state of digitization of Enterprises and Public Administrations. The study shows the response of more than 2,400 professionals and senior executives of enterprises and institutions from all over Spain and that represent all the sectors and types of enterprise and administrations. The results are outlined in four major reports, in line with the different segments: Professionals and Small Enterprises (1-9 employees) SMEs (10-99 employees) Large Enterprises (More than 100 employees) Public Administrations Enterprises with 100-plus employees in Spain represent a low percentage of the total (less than 12,000 of the 3.2 million companies registered as a going concern) but are a key segment as the engine of the country's economy. Spain's Large Enterprises have traditionally used innovation and the acquisition of new information technologies to enhance their internal and external processes, relying, to do so, on local suppliers and business fabric, which has helped to boost the development of smaller business segments. Large Enterprises' investment in innovation is also identified as a reference for the SME segment, which is adopting much of the technology used by Large Enterprises and is beginning to take advantage of them as innovation tools. Despite their relative weight, Large Enterprises top the sectors of activity that contribute most to GDP (Large Retail, Telecommunications, Infrastructure, Banking, Energy, etc.), which export their products and services the most, and which invest the most in R&D&i (Large Enterprises account for 50% of innovation investment, while the Public Sector accounts for the remaining 50%). 4

5 Methodology and technical details QUALITATIVE PHASE Type of study Technique used Qualitative (Referring to enterprises with 100-plus employees) In-depth, open-ended interviews Analysis universe CEOs, Managers, Project Managers, Heads of production, system directors, etc., of the enterprises and Institutions Details of the methodological approach The Observatory conducted 9 in-depth, open-ended interviews. Field work completion date From 26th April to 2nd June 2017 Study conducted by Advice Strategic Consultants S.L. 5

6 QUANTITATIVE PHASE Type of study Technique used Quantitative (Referring to enterprises with 100-plus employees) Telephone interviews Analysis universe CEOs, Managers, Project Managers, Heads of production, system directors, etc., of the enterprises and Institutions Details of the methodological approach A total of 300 interviews were conducted, with a sample error of ±5.78% for a confidence level of 95%. Subsequently the data were weighted according to the actual weight of the actual distribution of Professionals and Small Enterprises in line with the number of workers, Autonomous Region and sector according to Central Company Directory (DIRCE) data as at 01/01/2016. Field work completion date From 26th April to 2nd June 2017 Study conducted by Advice Strategic Consultants S.L. 6

7 Conclusions Spain's Large Enterprises have reached the highest level of digitization They have allocated the most resources to going digital, have most qualified personnel for doing so and, therefore, attach most importance to evolving in the digital world. The greatest benefits they look for in new technologies have to do with improving their internal processes to make them more efficient, and external processes, as a means of differentiation. Their capacity for innovation and taking up these technologies acts as a magnet on smaller enterprises, that also take the digitization path. 7

8 The crisis had a heavy impact on the structure of large enterprises with 100-plus employees, which have been forced to embark on major reforms, including the digital transformation of their business. This has made them the driving force of the business digitization. Despite the crisis' impact on Large Enterprises and the major changes they have made to their structures, growth prospects for the next few years are moderately optimistic. 54% believe that their business will improve, not only because of the general improvement in the economy, but also because of the efforts they have made to develop their organizations. Large Enterprises know that applying new technologies can really boost their business' growth and give them a competitive edge. That's why 93% consider that technology is more and more important in their business. In addition to being one of its main concerns, going digital is a tool that allows large enterprises to resolve important business issues, such as the demand for their products and services, as well as attracting new customers. 8

9 Large Enterprises are the most heavily digitized organizations within Spain's business environment, and are at an intermediate or advanced stage, which responds to the major level of commitment and investment in integrating ICT solutions. Large Enterprises are at an intermediate or advanced stage of digitization, and this group of enterprises has evolved more than any other in digitally transforming its business. 34% say that they are at an advanced stage or have finished the process; while 44% are at an intermediate stage. Only one in ten enterprises with 100-plus employees has not started or is at a basic stage. Large Enterprises are clearly committed to tackling the digitization issue. Nearly half of them have an established plan (46%) and, of these, 72% have allocated it a budget. These figures are much higher than those of the other business organizations analyzed by The Observatory. They have also invested the most in going digital. 82% say that they have invested in new technologies and information systems in the last two years, with an average investment of around 153,000, thus tripling the amount allocated by SMEs, and more than the amount earmarked by Public Administrations. 9

10 Large Enterprises have been working to digitize their organizations for many years, which is why they are well aware of both their needs and the benefits to be gained from using new technologies as a great competitive advantage in the market. Large Enterprises have been investing in new technologies for years; that is why they know their digitization needs better than anyone else. When spontaneously asked what they need to go digital, upgrading information systems (15%) and document digitalization (11%) were mentioned the most. The Observatory has identified the following needs: digital marketing services that help them to win customers (22%) and Big Data solutions (21%). Asked about communication services (Voice and Data) and the Cloud, they say that they are at an advanced level of take-up. So Large Enterprises go digital to speed up their internal operations and processes, but also to gain access to new opportunities and grow the business. 10

11 Large enterprises have skilled resources within their organizations that have allowed them to move forward with their digitization. Even so, the support of outside enterprises is key to the success of that process. More than half of large enterprises' employees are skilled enough to handle digitization (58%). The albeit high (75%) need for external help is slightly lower than in SMEs. In the case of Large Enterprises, one in four could continue with its technological development, relying solely on its own resources. Large Enterprises will rely on the help of external consultants and telecommunications operators to keep the digitization process going. What's more, Large Enterprises' digitization projects are the most successful. 93% of Large Enterprises that have embarked on a digitization plan, say that it has been carried out and finished. 11

12 ENTERPRISES WITH 500-PLUS EMPLOYEES One of the highlights, as far as Large Enterprises go, are those that have 500-plus employees, which have made significant progress in their digital transformation process: Far more often than smaller enterprises, they spontaneously refer to digitalization as a strategic priority and recognize that technologies are essential for their line of business. They have bigger budgets for their plans. They lead the field in digitization investment. They are firmly committed to improving security in the new digital environment and, unlike the smaller enterprises, give much higher priority to investing in technologies that shape how competitive enterprises are in the future, such as Big Data or IoT. They have the largest number of qualified professionals for handling this transformation. 12

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14 Context and concerns Digitization is one of the issues that Large Spanish enterprises worry about most The Large Enterprises interviewed by The Vodafone Enterprise Observatory believe that turnover is going to rise due to the general upturn in the economy, which is generating stronger demand in the sectors in which the interviewed companies are involved; domestic demand and external demand. 14

15 How they expect their enterprise's turnover to perform in the next twelve months and reasons why Large Enterprises are moderately optimistic about the growth of the economy. They believe that their business will improve because demand for their products and services will pick up and due to the changes they are making in their organization (sales processes, customer management, etc.) 28% It's the trend, performance 54% Turnover will pick up 20% 9% 7% 7% Customers are going to demand our products / services more We're improving our sales processes Access to new markets We're improving customer management 31% Turnover will stay the same 31% 27% 12% It's the business trend It's how the market is performing It's how demand is performing 33% It's how the business is performing 3% Turnover will drop 33% Due to the state of the Sector 12% DK / NA Basis: Total Large Enterprises interviewed. 15

16 Taking their business digital ranks as one of the main concerns of Spain's Large Enterprises Digitization is not just a concern but a task, a means, an instrument for resolving some of the company's concerns: cutting costs, boosting productivity, competitive capacity and profitability, engaging better with customers and attracting new ones. Main concerns of their business right now Demand for their products, services State of my market, sector Attracting new customers Digitization The company's profitability There is stiffer competition The general state of the economy DK/NA 16% 15% 15% 12% 7% 7% 6% 19% *Open-ended question (no answer is suggested to the interviewee) Basis: Total Large Enterprises interviewed. 16

17 Large Enterprises are fully aware of how much digitization matters in their organizations and rank it as one of their major concerns When respondents are offered a list of possible concerns, digitalization obtains an average score, lagging behind other key business like profitability, attracting new customers, etc. Degree of concern, on a scale of 0 to 10, about different issues related with their business (Suggested response) 8.1 Profitability 7.9 Attracting new customers 7.7 Demand for their products, services Changes in their market, sector The general state of the economy Labour costs Above Average Taxes Digitization Competition Red tape Hiring qualified personnel Capital expenditure Legislation, regulatory changes Average Diversifying one's offering Getting finance Exporting to overseas markets Below Average Basis: Total Large Enterprises interviewed. 17

18 MAIN CONCERNS, BROKEN DOWN BY SECTOR Digitization is a key concern in the wholesale commerce sector, in transport & logistics and in the services sector, while the agricultural sector and construction sector are the least concerned about digitization. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL Profitability Attracting new customers Demand for their products, services Changes in their market, sector The general state of the economy Labour costs Taxes Digitization, bringing new technologies into the business' management Competition Red tape Hiring qualified personnel Legislation, regulatory changes Capital expenditure Diversifying one's offering (new products, services) Getting finance Exporting to overseas markets Basis: Total Large Enterprises interviewed, by sector of activity. * Significantly above average. * Significantly below average. 18

19 The state of digitization Large enterprises are the main driving force and reason why our country's businesses are going digital The country's large enterprises are clearly furthest along the digital path. This means that they best know and make the most of the advantages of digitization. Yet as well as drawing benefits for their own business, they also have a magnet effect on smaller companies, which steadily start using new technology products to run their business. 19

20 More than half of the Large Enterprises say that their customer relations have improved over the last two years And one third believes that at least it will stay the same. Only 2% of the Large Enterprises interviewed stated that the relationship with their customers is now worse than in recent years. Changes in customer relations in the last two years It has improved a lot It has improved a little It has stayed the same It is a little worse It is a lot worse DK/NA 20% 36% 32% 2% 0% 9% 56% 2% Basis: Total Large Enterprises interviewed IMPROVEMENT IN CUSTOMER RELATIONS, BY SECTOR OF ACTIVITY Hotels, catering and industry are the sectors that consider that their customer relations have improved the most in the last two years. It has improved (4+5) It has stayed the same (3) It has worsened (1+2) DK/NA 9% 8% 10% 17% 4% 10% 9% 10% 2% 32% 2% 49% 22% 4% 34% 27% 45% 4% 36% 5% 24% 50% 56% 43% 66% 33% 58% 73% 55% 46% 62% Total Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Catering Transport, logistics Construction Services Basis: Total Large Enterprises interviewed, by sector of activity. 20

21 Customer relationships has improved because enterprises are more effective and serve their needs better Reasons why the relationship with their users has improved 56% Large Enterprises that consider that customer relations have improved over the last two years We attend to their needs better and better We attend to them more effectively We attend to them faster We offer them differentiated products/services Better products/services By applying new technologies to that relationship Increase of demand/sales Better contact/communication New channels of communication have opened up Customer loyalty-building efforts. More personalized customer care Due to the company's personnel Due to the commercial strategies We offer them increasingly more competitive prices We have established processes for a more fluid, direct communication We have provided communication-enabling tools Stronger confidence Larger customer base Due to the surveys Modification of internal processes Others DK/NA 21% 17% 15% 10% 8% 6% 6% 6% 4% 4% 4% 4% 4% 2% 2% 2% 2% 2% 2% 2% 8% 6% *Open-ended question. No answer was suggested to the interviewee. The answers could add up to more than 100% Basis: Large Enterprises that consider that customer relations have improved over the last two years. 21

22 More than 90% of large enterprises say that the main benefit of technology is to have information in time to make decisions There is broad consensus that technology is becoming increasingly important for business and corporate management. Another interesting conclusion is that Large Enterprises do not directly associate customer acquisition as one of the key benefits of using technology. Scored according to the following technology-related statements Strongly agree (9-10) Agree quite a lot (7-8) Agree to an extent (5-6) Disagree (0-4) DK/NA % Agree Strongly + Quite a lot Average (0-10) The main benefit of using technologies is information: having the information and time to decide 54% 36% 7 % 2% 90% 8.4 The technological solutions that my business/company has are essential for the business/management 59% 29% 9% 2% 88% 8.4 Technology is increasingly important for the enterprise 52% 41% 5 % 2% 93% 8.4 The main benefit of using technologies is saving time and money in doing things 48% 38% 11% 4% 86% 8.1 Improving relationships with customers is the main benefit of using technologies 21% 45% 24% 9% 1% 66% 6.9 The main benefit of using technologies consists of attracting customers 15% 35% 28% 20% 1% 51% 6.3 Basis: Total Large Enterprises interviewed. 22

23 LEVEL OF AGREEMENT WITH TECHNOLOGY-RELATED STATEMENTS, BY SECTOR OF ACTIVITY All the sectors agree that technology is important for their business, mainly in terms of using information fast to make decisions. It is interesting to see that the retail sector regards the application of new technologies as a way to get new customers. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL Technology is increasingly important for the enterprise 93% 86% 82% 85% 89% 100% 90% 100% 97% The main benefit of using technologies is information: having the information and time to decide 91% 86% 86% 100% 88% 100% 100% 91% 90% The technological solutions that my business/company has are essential for the business/management 88% 65% 82% 85% 85% 100% 100% 82% 92% The main benefit of using technologies is saving time and money in doing things 86% 92% 88% 83% 84% 76% 100% 100% 91% Improving relationships with customers is the main benefit of using technologies The main benefit of using technologies consists of attracting customers 66% 66% 56% 67% 58% 100% 64% 45% 71% 51% 33% 44% 89% 43% 53% 61% 57% 56% Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total. 23

24 The perception of the state of digitization of the Large Enterprises is average or advanced for nearly 80% of respondents In addition, there is a striking 10% that say they have major digitization plans for their business. Degree of digitization of their business Basis: Total Large Enterprises interviewed. 2% 8% 44% 34% 3% 10% We have not begun yet It's very basic It's at an intermediate level It's at an advanced level You could say that it has finished We have major digitization plans for the next few years DEGREE OF DIGITIZATION, BY SECTOR OF ACTIVITY It is interesting to see that the construction sector clearly perceives its current state of digitization. In contrast, the retail trade considers itself to still be at a basic stage, while the catering trade says it has major plans. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL We have not begun yet 2% --- 4% --- 4% It's very basic 8% 14% 6% 33% 12% % 5% It's at an intermediate level 44% 57% 34% 33% 53% 76% 54% 27% 45% It's at an advanced level 34% 22% 38% 17% 23% % 54% 38% You could say that it has finished 3% --- 6% % We have major digitization-oriented plans for the next few years 10% 8% 12% 17% 8% 24% 10% 10% 10% Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total. 24

25 Half of the Large Enterprises have a structured digitization plan Almost half of the large organizations claim to have a specific plan to keep on turning their business around, and nearly three-quarters of them have a purpose-allocated budget. Does their company have a established digitization plan or programme AFFIRMATIVE REPLY, BY SECTOR OF ACTIVITY Yes 46 % Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Catering Transport, logistics Construction Services 30% 45% 43% 51% 32% 35% 54% 49% No 54 % Basis: Total Large Enterprises interviewed, by sector of activity. Of those that do have one, 72% have allocated it a specific budget. 46% 72 % do have a digitization plan of them have allocated a budget Basis: Total of Large Enterprises interviewed that say they have a digital plan. 25

26 On average, the companies interviewed have invested more than 152,000 in digitization Four out of every five Large Enterprises report that, over the last two years, they have invested in new technologies to digitize their businesses. Enterprises that have invested in digitization over the last two years AFFIRMATIVE REPLY, BY SECTOR OF ACTIVITY Agriculture, forestry, mining 64% Industry 84% Retail commerce 80% Yes 82 % Wholesale commerce Catering Transport, logistics Construction Services 49% 85% 73% 82% 86% No 18 % Basis: Large Enterprises that have invested in digitization over the last two years, by sector of activity. Basis: Total Large Enterprises interviewed. Level of investment in digitization resources Less than 30,000 From 30,001 to 50,000 From 51,001 to 100,000 From 100,001 to 200,000 More than 200,000 41% 19% 7% 15% 19% AVERAGE INVESTMENT 152,685 Basis: Large Enterprises that have invested in digitization over the last two years. 26

27 Redesigning internal processes is more of a priority in terms of digital plans than in changing processes towards customers More than half of the Large Enterprises (56%) will focus their digitization investment efforts on redesigning internal processes and systems. Main priorities in digitization investment terms Redesigning internal processes and systems Redesigning customer-oriented processes Job digitization Redesigning processes towards internal customers Software and hardware upgrades Others DK/NA 19% 8% 2% 1% 2% 11% 56% Basis: Total Large Enterprises interviewed. DIGITIZATION PRIORITIES, BY SECTOR OF ACTIVITY Giving priority to improving internal processes is especially strong in the retail and catering sector, with percentages above 75%. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL Redesigning internal processes and systems Redesigning customer-oriented processes 56% 58% 48% 83% 50% 76% 44% 56% 57% 19% 14% 16% % % 26% 24% Job digitization 8% 7% 12% 17% 16% 24% % Redesigning processes towards internal customers 2% 7% 2% % --- 2% Software and hardware upgrades 1% 7% 2% Others 2% --- 2% --- 4% % DK/NA 11% 8% 18% % % 17% 7% Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total. 27

28 Security systems and connectivity are the main technology investment priorities Security systems are still the digital infrastructure lever that attracts the largest digitization investment by large enterprises, which have set their strategic sights on The Internet of Things, the Cloud and analysis and Big Data. How much the following technologies matter in investment terms Very important Quite important Rather important Not very important Not at all important DK/NA Agree Strongly + Quite a lot Average (0-10) Security systems 52% 16% 13% 7% 12% 68% 3.9 Internet and inter-device connectivity 45% 19% 11% 8% 18% 64% 3.6 Internet of Things. Interconnecting everyday objects and devices over the Internet 21% 14% 21% 19% 22% 3% 35% 2.9 Cloud Services 19% 14% 20% 18% 27% 2% 33% 2.8 Analysis and Big data 13% 19% 13% 18% 32% 5% 32% 2.6 Basis: Total Large Enterprises interviewed. 28

29 IMPORTANCE OF INVESTING IN TECHNOLOGY, BY SECTOR OF ACTIVITY All the sectors agree that security and connectivity matter when prioritizing technology investments. Another striking fact is the construction and services sectors' interest in the Internet of the Things. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR (VERY+QUITE IMPORTANT) TOTAL Security systems 68% 60% 69% 70% 69% 79% 58% 57% 70% Connectivity to the network and between devices Internet of Things. Interconnecting everyday objects and devices over the Internet 64% 48% 65% 72% 72% 54% 69% 69% 62% 35% 14% 34% 15% 36% 24% 27% 54% 43% Cloud Services 33% 39% 35% 12% 28% 46% 25% 23% 35% Analysis and Big data 32% 18% 36% 21% 31% 31% 42% 13% 34% Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total. 29

30 More than half of the Large Enterprises interviewed say they have digitization specialists on their staff The services sector reports, more than any other, having digital specialists on their staff, while the retail trade and catering sectors say they have a low percentage of digitization specialists. Existence of digitization specialists in the workforce AFFIRMATIVE REPLY, BY SECTOR OF ACTIVITY Agriculture, forestry, mining 55% Industry 60% Retail commerce 39% Yes 58 % Wholesale commerce Catering Transport, logistics 28% 55% 50% Construction 58% Services 63% No 42 % Basis: Total Large Enterprises interviewed, by sector of activity. 30

31 Half of the Large Enterprises say that the information systems manager is spearheading digitization Among the large enterprises that have digitization specialists, it is more common for the digitization leader to be the information systems manager, followed by the CTO. Only 24% of enterprises with 100-plus employees say that responsibility for digitization is divided between different areas. Does their organization have a digitization leader Responsibility is shared out among the different areas Yes there is a digitization leader - the CTO Yes there is a digitization leader - the information systems manager DK/NA 2% 24% 27% 47% Basis: Total Large Enterprises interviewed. EXISTENCE OF A DIGITIZATION LEADER, BY SECTOR OF ACTIVITY Transport & logistics and services are the sectors that tend most to say that responsibility for digitization is divided up between areas, while in the construction sector digitization is overseen by the information systems manager, to a greater extent in comparison with other sectors. Responsibility is shared out among the different areas Yes there is a digitization leader - the CTO Yes there is a digitization leader - the information systems manager DK/NA 2% 3% 6% 3% 3% 47% 45% 51% 48% 50% 43% 36% 61% 40% 27% 24% 37% 18% 22% 23% 27% 25% 30% 14% 26% 28% 31% 33% 24% 15% 26% 31% Total Agriculture, Industry Retail Wholesale Catering Transport, Construction Services forestry, commerce commerce logistics mining Basis: Large Enterprises interviewed that have digitization specialists on their staff, by sector of activity. 31

32 Enterprises with 100-plus employees say they need to rely on external help to go digital Just over three quarters admit that they are going to need the help of external personnel to take the company digital. Only 25% of the large accounts admit that they will complete the digitization process with personnel of their own. Type of personnel they will use to carry out their digitization process Only with own personnel 25% Principally with own staff, but backed by external suppliers 47% Mainly with external suppliers 19% 75% Only with external suppliers 9% Basis: Total Large Enterprises interviewed DIGITIZATION WORK MODEL, BY SECTOR OF ACTIVITY The wholesale trade is the sector that will rely most on its own teams to handle its digital changes. On the contrary, the agricultural sector, retail trade and the transport & logistics sector will rely on external suppliers to a greater extent to keep on going digital. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL Only with own personnel 25% 14% 16% 17% 34% 24% 28% % Principally with own staff, but backed by external suppliers Mainly with external suppliers 47% 51% 50% 50% 32% 76% 28% 80% 54% 19% 29% 26% 33% 23% % 20% 10% Only with external suppliers 9% 7% 4% % % % Need for external suppliers 75% 86% 80% 83% 66% 76% 72% 100% 73% Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total. 32

33 Consultants and telecommunications operators are the main suppliers to which enterprises with 100-plus employees will resort Type of suppliers they will hire for the digitization process 47% 36% 20% 6% 3% 3% 5% 9% Consultancy firms Telecommunications Operators Sectors' Large Enterprises IT firms/suppliers Local suppliers Specialized/sector firms Others DK/NA Basis: Total Large Enterprises interviewed 33

34 Only 7% say they have abandoned a plan High costs, lack of profitability or lack of trained staff are among the main reasons for not continuing the digitization plan. Plan abandon rate and main reasons Yes 7 % No 93 % High costs It did not seem profitable Lack of staff with skills They did not get the expected results Finance difficulties Strategic changes of direction Incompatibility with the existing systems Obsolete / they found something better Problems with the supplier DK/NA 13% 13% 13% 7% 7% 6% 6% 6% 7% 26% * Open-ended question. No answer was suggested to the interviewee. The answers could add up to more than 100% Basis: Large Enterprises that have abandoned a digitization plan. Abandon rate, by sector of activity AFFIRMATIVE REPLY, BY SECTOR OF ACTIVITY Yes 7 % No 93 % Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Catering Transport, logistics Construction Services 0% 4% 12% 8% 14% 0% 10% 11% Basis: Total Large Enterprises interviewed that have abandoned a digitization plan, by sector of activity. 34

35 Digitization needs System upgrades and document digitization are large enterprises' key needs Large Enterprises' main needs involve upgrading their systems and digitizing their document management. Yet in suggested questions, the Vodafone Enterprise Observatory has also found that, unlike what happens in smaller ones, large enterprises are starting to attach importance to services that are essential for developing their business, like Big Data (21%) or recruiting customers through digital marketing services (22%). 35

36 In spontaneous recall, Large Enterprises say that their main digitization needs are upgrading their systems and documentation management It is also worth noting that one third of the enterprises interviewed found it hard to identify specific needs spontaneously. Their business' digitization-related needs 13% 11% System upgrades Documentation digitization/management 7% 5% 5% Information management Automation of customeroriented processes Customer recruitment/ marketing/advertising 5% Digitization of in-house positions/ processes 33% DK / NA Basis: Total Large Enterprises interviewed. Basis: Total Large Enterprises interviewed. *Open-ended question (no answer is suggested to the interviewee) 36

37 Large enterprises are at a very advanced stage when it comes to take-up of voice and Internet connection-related services The large majority of Large Enterprises consider that they have already covered this type of needs. More than a third of the enterprises interviewed stated, when suggested, that they do not need any free customer WiFi service, since the type of service does not apply to all the enterprises interviewed. Level of need for voice and Internet connection services None at all, we don't need it Short-term need Mediumterm need Long-term need We have that need covered/we don't need to improve it DK/NA Short, medium or long term need Unlimited calls between the organization's lines 1 % 4 % 2 % 1 % 92% 7%* 1 % Roaming calls and browsing 12% 4% 78% 11%* 6 % Closed WiFi connection for employees 1% 16% 5 % 4 % 1 % 73% 1% 9%* WiFi connection open to customers 36% 6 % 2 % 55% 8%* Fixed IP 5 % 1 % 91% 4% 1%* Virtual Private Network/ networking of the enterprise's different workplaces 1 9% % 4 % 84% 1 % 1% 6%* Basis: Total Large Enterprises interviewed. *Short, medium or long term need. 37

38 One third of the Large Enterprises see no need to invest in digital marketing tools Furthermore, around 40% of the enterprises interviewed replied to suggested questions that right now they already have that need covered. Lastly, two out of every ten Large Enterprises show interest in growing in digital marketing-related areas. Level of need for digital marketing services None at all, we don't need it Short-term need Managing campaigns to attract new customers through Internet publicity Internet search engine optimization services Mediumterm need Long-term need 35% 13% 6% 4% 38% 32% 8% 6% 2% 47% We have that need covered/we don't need to improve it DK/NA Short, medium or long term need 5% 22%* 5% 16%* Digital marketing services 33% 9% 8% 1% 44% 5% 18%* Basis: Total Large Enterprises interviewed *Short, medium or long term need. DIGITAL MARKETING NEEDS, BY SECTOR OF ACTIVITY Retailing is by far the sector most interested in integrating marketing and digital advertising solutions into its business. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL Managing campaigns to attract new customers through Internet publicity 22% 23% 14% 50% 23% 8% 27% 4% 16% Internet search engine optimization services 16% 8% 17% 50% 19% 12% 36% 8% 12% Digital marketing services 18% 8% 19% 65% 19% 4% 36% 4% 13% Basis: Total Large Enterprises interviewed, by sector of activity. % Significantly higher than the total. % Significantly lower than the total. 38

39 A large majority of the Large Enterprises say that their Cloud solution needs are already covered Large Enterprises have stated very eloquently that they have already adopted cloud-based remote access solutions, both for storage and for accessing documents or remote connection. Cloud service usage is so widespread nowadays that the reported short, medium or long term need is low. Level of need to have or improve cloud services None at all, we don't need it Short-term need Mediumterm need Long-term need We have that need covered/we don't need to improve it DK/NA Short, medium or long term need Office automation software (spreadsheets, word processor) and unlimited cloud storage 29% 6 % 6 % 1 % 58% 13%* Remotely accessing and modifying company documents 15% 5 % 8 % 1 % 71% 14%* Remote connection to the company's by employees 7 % 2 % 5 % 86% 7%* Housing company files/databases in the cloud 33% 6 % 5 % 5 % 51% 1% 15%* Virtual switchboard, tool combining fixed and mobile voice in any device, through a platform with switchboard functions in the Cloud, on the Internet 26% 6 % 8 % 4 % 53% 4% 18%* Software for running the company over the Internet 26% 9% 1 % 4 % 59% 1% 14%* Unlimited cloud storage 34% 6 % 5 % 4 % 47% 5% 14%* Basis: Total Large Enterprises interviewed. *Short, medium or long term need. 39

40 More than half of the enterprises with 100-plus employees says they do not need Big Data analysis services Only two in ten of the Large Enterprises interviewed believe that they will need the Big Data service in the short, medium or long term, yet only a very limited number of enterprises already use it today. Only 16% of the Large Enterprises interviewed stated that they had covered this need and had no interest in improving it. Level of need to have or improve Big Data analysis services None at all, we don't need it Short-term need Medium-term need Long-term need We have that need covered/we don't need to improve it DK/NA Big data analysis 52% 4 % 9% 8% 16% 11% 21%* Basis: Total Large Enterprises interviewed. *Short, medium or long term need. 40

41 Digitization accelerators and brakes Large Enterprises rely on digitization to make their management processes more efficient New technologies allow Large Enterprises to be far more efficient in their operations and internal processes, so their business grows and so does the market in which they operate. The biggest hurdle they come across on the digital path is how much that path can cost them and, very often, not having qualified personnel to take them there. 41

42 Handling processes and tasks more efficiently is seen as the biggest advantage of digitization Spanish Large Enterprises regard digitization as affording more benefits to do with organizing their processes and improving their companies' management that any that lead to better customer care. Main benefits of digitization Make processes/tasks more efficient More efficient management Information accessibility Lower costs More cost-effective Saving time/being faster Customers/users are attended better Better edge over competitors DK/NA 42% 25% 16% 13% 12% 12% 8% 6% 4% *Open-ended question (no answer is suggested to the interviewee) Basis: Total Large Enterprises interviewed. 42

43 MAIN BENEFITS OF DIGITIZATION, BY SECTOR OF ACTIVITY For all the sectors, the main benefits of digitization are making their organization and management more efficient. Agriculture, forestry, mining Industry Retail commerce Wholesale commerce Hotels, Catering Transport, logistics Construction Services SECTOR TOTAL Make processes/tasks more efficient 42% 56% 36% 35% 38% 24% 63% 47% 35% More efficient management 25% 14% 30% 31% 35% 27% 9% 55% 22% Information accessibility 16% 8% 12% 15% 8% 12% 10% 17% 18% Lower costs 13% 8% 10% 15% 12% 8% 9% 20% 8% More cost-effective 12% 14% 12% --- 8% 24% 28% 9% 7% Saving time/being faster 12% 22% 8% 15% 23% --- 9% 10% 15% Customers/users are attended better 8% 7% 11% 15% 8% 8% 9% 9% 6% Better edge over competitors 6% 8% 2% 17% 8% 8% % Basis: Total Large Enterprises interviewed, by sector of activity. *Open-ended question. No answer was suggested to the interviewee. The answers could add up to more than 100% % Significantly higher than the total. % Significantly lower than the total. 43

44 Even the Large Enterprises regard the high implementation cost as the biggest hurdle in going digital Despite the fact that almost a third of the Large Enterprises surveyed did not mention any specific hurdle to digitization, the implementation cost ranks as the top barrier, and quite notably so. Not having qualified personnel, employees' resistance to implementing new technologies and employee training also emerge as reasons that can hinder large enterprises in going digital. Main difficulties and barriers to digitizing their business High implementation cost Lack of qualified personnel in the company Employees' resistance to the implementation Employee training/learning Change/adaptation management DK/NA 19% 10% 9% 8% 7% 31% *Open-ended question (no answer is suggested to the interviewee). Basis: Total Large Enterprises interviewed. 44

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