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Public sector lagging in digital transformation moves

Microsoft has undertaken research into the reaction of UK firms to digital disruption and found that there is plenty of help the channel can provide

Microsoft is sharing the findings of some research it has underaken into the topical issue of digital distruption with its channel base to encourage them to target the current customer pain points.

The software giant has concluded that almost half of British firms will face digital disruption over the next two years and as a result there should be plenty of opportunities for those resellers armed with solutions.

Although some verticals are more acutely worried than others, particularly financial services, the concerns about digital disruption spread right across the public and private sector.

Microsoft has found that the public sector is lagging behind private firms, with 26% admitting they don't have a digital strategy in place.

“The dawn of the fourth industrial revolution is a massive opportunity for British businesses but many are still living in an age of innocence or inertia when they need to be innovating,” says Nicola Hodson, general manager, marketing & operations, Microsoft UK.

“Whilst this research indicates that business models are breaking, many business leaders appear unwilling to address them," she added.

The channel has been bombarded with marketing messages about digital transformation but Microsoft is claiming that this is one of the most exhaustive pieces of research that has been undertaken on the subject so far.

“New challengers, many who are digitally savvy start-ups, are disrupting established markets by deploying new technologies quickly, and luring expectant customers away from established competitors. For many larger organisations, the challenge is how to react to this market disruption in a considered way and how they maintain competitiveness in a rapidly shifting landscape," said Hodson.

Vertical markets

The financial services sector is worried that new entrants pose the biggest challenge and as a result two-thirds are looking to protect their own futures and they have a formal digital strategy.

The compares to just a third of public sector firms having a plan and 26% freely admitting that there is no strategy. One of the challenges that plagues that market are doubts about the ability of the current leadership teams to deal with digital transformation.

As a whole there are privacy and security concerns and the channel needs to address those to speed up the digital transformation momentum.

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