PLANO, TX – Jan. 5, 2021 – NTT DATA Services today announced the results of a new study – “Could Have. Would Have. Should Have.” – that found 48% of organizations report declining revenue and profitability since the beginning of the COVID-19 pandemic. The findings show 69% of leaders across financial services and insurance, manufacturing, healthcare and the public sector indicated they would be more resilient if they had invested more in digital technologies prior to the crisis. As a result, the crisis accelerated digital transformation plans for 79% of respondents.
The study examines how technology established business Leaders and Laggards during the crisis, revealing early technology adoption created a considerable advantage. In fact, the Leaders, which made up 10% of the survey sample, were significantly more likely to report an increase in revenue (63% vs. 18%), as well as improved customer (61% vs. 21%) and employee satisfaction (59% vs. 14%), since the start of the crisis. As a result, Leaders are also more than twice as likely as Laggards, which include 49% of respondents, to be returning to business as usual as much as possible in the new economic environment.
“While nobody was prepared for COVID-19, these findings underscore the importance of companies investing in digital technologies to foster the resilience and agility to respond to unexpected market forces,” said Jeff Bergeron, SVP, Consulting, NTT DATA Services. “Organizations that leveraged technology to gain a competitive advantage during the crisis are now better positioned to seek new opportunities for growth as the vaccine rolls out and can be ready to pivot to tomorrow rather than focusing on the past.”
With a much wider technology portfolio, 60% of Leaders indicate they are able to adapt products and services to customers’ rapidly changing needs, compared to just 29% of Laggards. In addition, Leaders are more likely to have achieved cost savings during the pandemic and are now allocating those savings to core (52% vs. 23%) and new (44% vs. 19%) products or services.
Leading-edge technology adoption varies by industry
The success of the Leaders provides valuable insight into how critical technologies can mean the difference between success or failure during a crisis. Their focus on technology adoption enabled these organizations to adapt more quickly to the impact of COVID-19, drive operational efficiencies and return to “normal” more quickly than their competition. In addition, organizations focused on digital transformation are more likely to be reinvesting in their business, creating new business models and preparing for what’s next.
NTT DATA, in partnership with Longitude, a Financial Times company, conducted a survey of 500 senior executives from the U.S. (80%) and Canada (20%). There were at least 100 respondents from each of the following sectors: financial services and insurance, manufacturing, healthcare and the public sector. The remaining respondents came from a range of sectors, including telecommunications, media and technology, as well as consumer products and retail.
Download the “Could Have. Would Have. Should Have.” research to learn more.
NTT DATA Services is a digital business and IT services leader headquartered in Plano, Texas. We are the largest business unit outside Japan of trusted global innovator NTT DATA Corporation, a top 10 provider and part of the $109B NTT Group. With our consultative approach, we leverage deep industry expertise and leading-edge technologies powered by AI, automation and cloud to create practical and scalable solutions that contribute to society and help clients worldwide. Our global team delivers one of the industry’s most robust and integrated portfolios. This includes consulting, applications, data intelligence and analytics, hybrid infrastructure, workplace, cybersecurity and business process services to help organizations accelerate and sustain value throughout their digital journeys.