TCS Study Finds 78% of UK Companies Plan to Digitally Transform their Business Model Within 3 years
- Tata Consultancy Services’ Study Benchmarks Adoption Levels of the Four Business Behaviours Needed to Thrive in Today’s Rapidly Evolving Global Economy
- UK Companies Adapting Well; 1 in 10 has Adopted the Full Range of Behaviours and Qualifies as a Business 4.0™ Leader
LONDON, December 11, 2019: Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS) a leading global IT services, consulting and business solutions organization, has released a new research report ‘Resilience Rules: How UK Firms are Thriving in the Age of Business 4.0™’, according to which more than three quarters (78%) of UK companies surveyed are planning to digitally transform their business model within the next three years.
This latest UK report follows TCS’ global survey of how large companies are adopting the four behaviours that characterize Business 4.0: driving mass personalization, creating exponential value, leveraging ecosystems and embracing risk, published in a report titled Winning in a Business 4.0 World. It found that in the UK, more than one in 10 (12%) organizations surveyed have adopted the full range of behaviours, making them Business 4.0 leaders.
Amit Kapur, Country Head, TCS UK & Ireland, said,“In today’s complex business ecosystem, digital transformation doesn’t happen overnight. It’s very promising to see that UK firms are not only taking steps in the right direction towards a Business 4.0 mindset, but even taking the lead versus their global peers in many areas. Through the innovative use of technology, more and more business leaders will be able to build resilience against shifting market dynamics and achieve their growth and transformation objectives.”
Business 4.0 Characteristics: Key Findings
Driving Mass Personalization
- There’s a strong demand from consumers across the globe for personalized experiences, and firms in the UK are fairly ahead of the rest of the world in meeting these needs.
- 81% of UK businesses are able to personalize their goods and services most of the time, versus 76% in Europe, and 78% globally.
- These businesses are also reaping the rewards: higher profits (according to 65% of respondents) and higher-value transactions (64%).
Creating Exponential Value
- Creating new business models that drive exponential value for customers is at the core of business transformation and disruption. The foundation of many of these new business models is enterprise and customer data which businesses use to address unmet needs of customers and create true value.
- Contrary to expectations that the General Data Protection Regulation (GDPR) regime would significantly hinder the commercial use of data by enterprises, only a quarter (25%) of UK businesses said that data protection laws are holding them back from creating exponential value.
Leveraging Ecosystems
The survey revealed that UK businesses are among the most collaborative in the world, actively augmenting their own products and services with complementary offerings from ecosystem partners to meet the evolving expectations of their customers.
- 39% of UK businesses are acquiring start-ups to improve their innovation capability – ahead of the European and global averages of 33% and 37%, respectively.
- 34% of UK businesses collaborate with competitors to create new goods and services, well ahead of the European and global averages of 26% and 30% respectively.
- The gains include higher revenues (cited by 44% of respondents), access to new markets (43%), and new skillsets (38%).
Embracing Risk
- While they’re making strong progress, this is the most challenging of the four Business 4.0 behaviours for UK businesses. More than three-quarters (78%) of UK businesses say they plan to fundamentally transform their business model within three years. This is ahead of the figure in Europe (76%) but behind the global average (81%).
Research Methodology:
TCS commissioned a survey of business leaders from more than 1,200 large firms (revenues from US$500 million to $5 billion) across 11 industries and 18 countries. Of these, 114 were from the United Kingdom. Additionally, 25 qualitative interviews were conducted with business leaders across industries. Three-fourths of the respondents were either directly involved in or had oversight of their firm’s digital transformation plans, with almost half in the C-suite.
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India's largest multinational business group, TCS has over 450,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $20.9 billion in the fiscal year ended March 31, 2019 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS' proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com.
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