If we were to look at a map of digitalization in Europe, we could hardly identify Romania. The geography of this process seems to be bypassing us. In the business environment, there are islands that stand out by the implementation of digital transformation, as shown by the Barometer of Digitalization in Romanian Companies conducted by consultancy company Valoria in partnership with Doingbusiness.ro.
The potential exists, it just needs to be accessed, because digitalization reduces costs, simplifies processes, increases operational efficiency, measures better the performance of the company, helps decision-making, increases the competitiveness of Romanian companies. At least this is how the benefits rank according to the executive directors and managers who responded to Valoria’s survey questionnaire.
Companies cannot hide from digital transformation
Digitization is a process that will not leave unchanged any business model or industry. Even if there still are voices claiming that not all industries will be impacted by digitalization, technological advances in Big Data and cloud, artificial intelligence, robots and drone, Internet of Things (IoT) make this scenario unlikely. In Romania, 35% of companies say that digitalization has already had a big influence on operations and only 7% say they had no influence.
At this time, 31% of Romanian companies say that they are confident about digitalization because they have the knowledge to navigate the process. On the other hand, 61% say they have difficulties with digital transformation. Of these, 39% are (somewhat) distrustful that they will capitalize on this trend. Only 2% of companies say they have no confidence that digital transformation is good for the company.
However, digitalization is a difficult process for companies. Of the companies highly influenced by digital transformation, 62% are confident and believe they have the knowledge to go through this process, but 38% are not in this situation. The percentage of those somewhat confident that they will capitalize on this trend is the largest (27%) among companies that say they were just moderately influenced by digitalization.
No industry is immune to digitalization
Against the backdrop of rapid technological advances, digitalization has become a priority for all industries, often radically changing the existing business models. But at this time, only 19% of Romanian companies consider that digital business models have greatly changed the industries they belong to.
Only 21% of companies expect digital business models to greatly transform their industry in the next 1-3 years, 38% say that digital business models will greatly transform their industry, and 27% expect that digital business models will only moderately affect their industry in the next 1-3 years.
It’s amazing that only 12% of Romanian companies consider digital business models as a threat, whilst 59% expect these new business models to massively change their industry the next 1-3 years.
Bringing it all together
The opportunity cost of the digitalization will be expensive for the conservative local companies. Business models based on digitalization or strongly influenced by it are imposed in more and more industries. Only the companies that will reinvent themselves in this new digital environment will survive and prosper. Change has less patience with laggards and the lack of workforce compels companies to go digital. On the other hand, consumers are constantly with the eyes on their watch and choosing suppliers who respect their most important resource – their time.