New trends in Digital Transformation for Professional Services firms
The technology is transforming the way small and midsize companies do business. The global, cross-industry survey shows, Professional Services firms with less than $1 billion in revenue are committed to digital transformation. Also, optimistic about the payoffs they will see from their efforts in the next two years. This transformation is a strategic necessity: as lean, digital-first competitors challenge existing business models within the industry. As a result, Professional Services firms use technology to increase efficiency and maximize the value of their talent.
Compared with other industry sectors, Professional Services firms are roughly on par with other small and midsize businesses in most aspects of digital transformation as measured in the survey, including their focus on core technologies and their expected value from these efforts.
As these firms depend on IP and human capital, they can derive great value from tools such as Augmented Reality, Blockchain, Machine learning, Artificial Intelligence, and Voice-controlled user interfaces. These innovations can help to improve project profitability, make better use of resources, and allow real-time insight into project operations and outcomes.
While professional services firms have work to do to prepare for sweeping change, their growing investment in emerging technologies and digital strategy shows their commitment to making digital transformation a reality.
Professional services firms are focused on cloud
Digital transformation revolves around investment in emerging technologies. Spending on the cloud is above average compared to other industries. The professionals must be able to communicate with co-workers and easily access information with their clients. Cloud also will serve as an innovation platform for more advanced technologies critical to their future. Today’s investments will help them catch up to other small and midsize businesses. Professional Services firms expect investment in Big Data and mobile at the same rate as their peers within two years. They also expect to broaden their focus to include machine learning, a powerful addition to a business built on brainpower.
Few small and midsize professional services firms are less focused on some digital technologies such as security platforms. This could be due to a lack of clarity on the value of digital technology to their business. The smallest companies in the sector are furthest behind in this area. Professional services firms regard their digital transformation efforts with urgency, with over 60% saying it is critically important to their survival today.
Yet many across the sector have not prioritized transformation as a strategic plan. Small and midsize professional services companies are less likely than larger enterprises saying digital transformation is a core business goal.
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Also, you can have a look at how Digital Transformation influences fast-growing Manufacturing Business here.