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Inadequate digital adoption costs firms over $1m per week
Thu, 8th Feb 2024

WalkMe's third annual 'State of Digital Adoption' report has highlighted how a lack of digital adoption is costing enterprises in excess of $1.14m each week in lost productivity. The report indicates that while global business IT spend is expected to reach $5 trillion this year, much of this investment is not translating into productivity due to a lack of effective technology usage.

The research shows that, despite 70% of organisations considering digital adoption a strategic priority, a mere 6% have fully embraced it. However, those that have fully embraced digital adoption are reaping significant returns, with average savings of $4.9m a month attributed to improved productivity.

The report's insights come from a survey of over 4,000 executives and employees. It reveals that 46% of enterprise digital transformation investment - that amounts to projects not meeting ROI due to lack of uptake - translates to $13m in wasted IT spending. Meanwhile, employees lose an equivalent of 44 working days a year compensating for tech-related time losses such as software troubleshooting, support waiting times, and grappling with poor instructions.

Interestingly, the report pointed to a 'tech stack visibility gap' among enterprise leaders, who underestimate the number of applications used by their organisations. The research found that leaders believe they only utilise 21 applications, while the actual average for organisations is 211, and even small businesses use 69.

The report by WalkMe, a leading provider of digital adoption solutions, shows the critical juncture we stand at with a projected global IT spend of $5 trillion and a 13% growth in software spend. These factors make technology investments optimisation more crucial than ever, said Ofir Bloch, vice president of strategic positioning at WalkMe.

Firms are recognising the benefits of digitalisation, with investment in this area rising 63% year-over-year. Furthermore, 69% of enterprises warn that organisations failing to embrace digital adoption will find themselves in an untenable position by 2028. A total of 6% of organisations have fully assimilated all recommended digital adoption practices and are now reaping the benefits, saving on average $4.9m a month.

The study illustrates that embracing digital adoption fully not only helps organisations save substantial costs but also improves user experience by saving employees 21.5 working days a year. Impressive results include 14% less spend on digital transformation projects that fail to meet ROI, 18% higher returns from digital transformation projects, and 30% increased application utilisation.

Bloch underscored the importance of a holistic approach to the problem. He said, "By scaling and replicating digital adoption successes organisation-wide, enterprises can give employees the tools, technology, and support they need to operate exponentially faster and more effectively than before. This will be crucial in navigating productivity challenges in an uncertain economic climate and ensuring organisations realise the full ROI of their projects."