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Pandemic Accelerates European Digital Transformation According to Latest Study from Dell Technologies

Dell Technologies’ third biennial Digital Transformation Index details how organisations are accelerating digital transformation projects amidst unprecedented uncertainty; 4,300 business leaders in 18 countries weigh in.

Story Highlights
  • Digital transformation seen as critical business driver for recovery
  • 75 percent of organizations across Europe and 80 percent globally have fast-tracked some digital transformation programs this year
  • Data privacy and cybersecurity concerns, limited resources and difficulty extracting insights from data identified as barriers to Digital Transformation
  • Complete results can be found at:
Full story

Dell Technologies released results from a global study that shows organizations are shifting their digital transformation programs into high gear and are on the path to accomplish in a few months what would normally have taken them years. The findings, updated biennially in the Dell Technologies’ Digital Transformation Index (DT Index), indicate organizations are accelerating transformational technology programs during the global COVID-19 pandemic.

In one of the first global studies to measure business behavior as a result of the pandemic, Dell’s 2020 Index found that eight in 10 organizations have fast-tracked some digital transformation programs this year and 79 percent are re-inventing their business model.

The DT Index is a global benchmark indicating organizations’ status of digital transformation and their performance across the globe. The survey included 4,300 business leaders (C-suite to Director) from mid-size to enterprise companies across 18 countries.

A new digital transformation curve

Since the first DT Index in 2016 and the next in 2018, this year’s results track the first rise in the number of Digital Leaders (the most digitally mature organization) to six percent. Digital Adopters (the second most digitally mature group) has grown from 20 percent in 2018 to 36 percent in 2020 – a 16-percentage point increase.

The DT Index also records a modest drop since 2018 in the number of Digital Laggards (the least digitally mature group) by 8-percentage points, and a steep fall in the second to last group, Digital Followers, by 19-percentage points. These organizations are moving up, into the Digital Adopter and Digital Evaluator groups, which have expanded in tandem.

“We’ve been given a glimpse of the future, and the organizations that are accelerating their digital transformation now will be poised for success in the Data Era that is unfolding before our eyes”, says Michael Dell, Chairman and CEO, Dell Technologies.   

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Using a curve visual, the DT Index plots digital transformation progress, from one wave of the DT Index to the next.

Barriers to transformation

The pandemic may have catalyzed digital transformation across the globe, but continuous transformation is challenging: 94 percent of organizations are facing entrenched barriers to transformation. According to the 2020 DT Index, the following are the top-3 barriers to digital transformation success in Europe:
  1. Lack of budget and resources
  2. Unable to extract insights from data and data overload
  3. Data privacy and cybersecurity concerns

Responding in an uncertain world  

Prior to the pandemic, business investments were strongly focused on foundational technologies, rather than emerging technologies across Europe. The vast majority, 85 percent recognize that as a result of disruption this year, they need a more agile/scalable IT infrastructure to allow for contingencies. The DT Index shows the top technology investments across Europe for the next one to three years:
  • Cybersecurity
  • 5G infrastructure & 5G ready hardware
  • Data management tools
  • Privacy
  • Hybrid-cloud environments

And recognizing the importance of emerging technologies, 81 percent of European respondents envision increased usage of Augmented Reality to learn how to do or fix things in an instant; 83 percent foresee organizations using Artificial Intelligence and data models to predict potential disruptions, and 72 percent predict distributed ledgers - such as Blockchain - will make the gig economy fairer (by cutting out the intermediary). Despite these findings, only 16 percent are planning to invest in Virtual/Augmented Reality, just 27 percent intend to invest in Artificial Intelligence and a mere 15 percent plan to invest distributed ledgers in the next one to three years.

Research methodology

During July and August of 2020, Dell Technologies partnered with independent research company Vanson Bourne who surveyed 4,300 business leaders from mid-size to enterprise organizations across 18 countries, create a global benchmark indicating businesses’ status of transformation. Vanson Bourne classified businesses' digital business efforts by examining their IT strategy, workforce transformation initiatives and perceived performance against a core set of digital business attributes. This is the third installment of the DT Index (the inaugural study in 2016 was followed by the second DT Index in 2018.

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